Segment Information (Tables)

6 Months Ended

Apr. 01, 2023

Financial Information by Operating Segments

Segment revenues and segment operating income are as follows:

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Revenues:
Disney Media and Entertainment Distribution	$	14,039	$	13,620	$	28,815	$	28,205
Disney Parks, Experiences and Products	7,776		6,652		16,512		13,886
Total segment revenues	$	21,815	$	20,272	$	45,327	$	42,091
Segment operating income:
Disney Media and Entertainment Distribution	$	1,119	$	1,944	$	1,109	$	2,752
Disney Parks, Experiences and Products	2,166		1,755		5,219		4,205
Total segment operating income(1)	$	3,285	$	3,699	$	6,328	$	6,957

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

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Disney Media and Entertainment Distribution	$	176	$	218	$	372	$	463
Disney Parks, Experiences and Products	—		(5)		(2)		(8)
Equity in the income of investees included in segment operating income	176		213		370		455
Amortization of TFCF intangible assets related to equity investees	(3)		(3)		(6)		(6)
Equity in the income of investees, net	$	173	$	210	$	364	$	449

Equity In Income of Investees By Segment

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

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Disney Media and Entertainment Distribution	$	176	$	218	$	372	$	463
Disney Parks, Experiences and Products	—		(5)		(2)		(8)
Equity in the income of investees included in segment operating income	176		213		370		455
Amortization of TFCF intangible assets related to equity investees	(3)		(3)		(6)		(6)
Equity in the income of investees, net	$	173	$	210	$	364	$	449

Reconciliation of Revenue from Segments to Consolidated

A reconciliation of segment revenues to total revenues is as follows:

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Segment revenues	$	21,815	$	20,272	$	45,327	$	42,091
Content License Early Termination(1)	—		(1,023)		—		(1,023)
Total revenues	$	21,815	$	19,249	$	45,327	$	41,068

(1)In February 2022, the Company early terminated certain license agreements with a customer for film and television content, which was delivered in previous years, in order for the Company to use the content primarily on our DTC services (Content License Early Termination). Because the content is functional intellectual property (IP), we had recognized substantially all of the consideration to be paid by the customer under the licenses as revenue in prior years when the content was made available under the agreements. Consequently, we recorded the amounts to terminate the licenses agreements, net of remaining amounts of deferred revenue, as a reduction of revenue.

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				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Segment operating income	$	3,285	$	3,699	$	6,328	$	6,957
Content License Early Termination	—		(1,023)		—		(1,023)
Corporate and unallocated shared expenses	(279)		(272)		(559)		(500)
Restructuring and impairment charges	(152)		(195)		(221)		(195)
Other income (expense), net(1)	149		(158)		107		(594)
Interest expense, net	(322)		(355)		(622)		(666)
TFCF and Hulu acquisition amortization(2)	(558)		(594)		(1,137)		(1,189)
Income from continuing operations before income taxes	$	2,123	$	1,102	$	3,896	$	2,790

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

(2)TFCF and Hulu acquisition amortization is as follows:

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Amortization of intangible assets	$	408	$	435	$	825	$	870
Step-up of film and television costs	147		156		306		313
Intangibles related to TFCF equity investees	3		3		6		6
	$	558	$	594	$	1,137	$	1,189

Components of TFCF and Hulu Acquisition Amortization

TFCF and Hulu acquisition amortization is as follows:

	Quarter Ended				Six Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Amortization of intangible assets	$	408	$	435	$	825	$	870
Step-up of film and television costs	147		156		306		313
Intangibles related to TFCF equity investees	3		3		6		6
	$	558	$	594	$	1,137	$	1,189

Schedule of 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	(19)		—		(19)
Balance at April 1, 2023	$	72,328	$	5,550	$	77,878