Segment Information

3 Months Ended

Dec. 31, 2022

Segment Information

Segment Information

The Company’s operations are conducted in the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) segments. Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer to allocate resources and assess performance.

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 acquisition accounting amortization of TFCF Corporation (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 in fiscal 2019 (TFCF and Hulu acquisition amortization). 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.

Segment revenues and segment operating income (loss) are as follows:

	Quarter Ended
	December 31, 2022		January 1, 2022
Revenues:
Disney Media and Entertainment Distribution	$	14,776	$	14,585
Disney Parks, Experiences and Products	8,736		7,234
Total segment revenues	$	23,512	$	21,819
Segment operating income (loss):
Disney Media and Entertainment Distribution	$	(10)	$	808
Disney Parks, Experiences and Products	3,053		2,450
Total segment operating income(1)	$	3,043	$	3,258

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

	Quarter Ended
	December 31, 2022		January 1, 2022
Disney Media and Entertainment Distribution	$	196	$	245
Disney Parks, Experiences and Products	(2)		(3)
Equity in the income of investees included in segment operating income	194		242
Amortization of TFCF intangible assets related to equity investees	(3)		(3)
Equity in the income of investees, net	$	191	$	239

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

	Quarter Ended
	December 31, 2022		January 1, 2022
Segment operating income	$	3,043	$	3,258
Corporate and unallocated shared expenses	(280)		(228)
Restructuring and impairment charges	(69)		—
Other expense, net(1)	(42)		(436)
Interest expense, net	(300)		(311)
TFCF and Hulu acquisition amortization(2)	(579)		(595)
Income from continuing operations before income taxes	$	1,773	$	1,688

(1)See Note 4 for a discussion of amounts in other expense, net.

(2)For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively.

Goodwill

The changes in the carrying amount of goodwill are as follows:

	DMED		DPEP		Total
Balance at October 1, 2022	$	72,347	$	5,550	$	77,897
Currency translation adjustments and other, net	(30)		—		(30)
Balance at December 31, 2022	$	72,317	$	5,550	$	77,867