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Segment Information
 9 Months Ended
Jul. 01, 2023
Segment Information Segment Information
In February 2023, the Company announced that it will be reorganized into three business segments: Disney Entertainment, ESPN and Disney Parks, Experiences and Products. We will report under the new structure commencing with our annual fiscal 2023 reporting, at which time we will have implemented changes to our financial processes to reflect the reorganization. The Company’s operations are currently reported in the following two segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP), for which separate financial information 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/expense, 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 are as follows:
 Quarter EndedNine Months Ended
 July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Revenues:
Disney Media and Entertainment Distribution$14,004 $14,110 $42,819   $42,315   
Disney Parks, Experiences and Products8,326 7,394 24,838 21,280 
Total segment revenues$22,330 $21,504 $67,657 $63,595 
Segment operating income:
Disney Media and Entertainment Distribution$1,134 $1,381 $2,243 $4,133 
Disney Parks, Experiences and Products2,425 2,186 7,644 6,391 
Total segment operating income(1)
$3,559 $3,567 $9,887 $10,524 
(1) Equity in the income of investees is included in segment operating income as follows:
 Quarter EndedNine Months Ended
 July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Disney Media and Entertainment Distribution$194   $230   $566   $693   
Disney Parks, Experiences and Products— (2) (2) (10)
Equity in the income of investees included in segment operating income194 228 564 683 
Amortization of TFCF intangible assets related to equity investees(3)(3)(9)(9)
Equity in the income of investees, net$191 $225 $555 $674 
A reconciliation of segment revenues to total revenues is as follows:
 Quarter EndedNine Months Ended
 July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Segment revenues$22,330 $21,504   $67,657 $63,595   
Content License Early Termination(1)
—   — —   (1,023)
Total revenues$22,330 $21,504 $67,657 $62,572 
(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 delivered. Consequently, we recorded the amounts to terminate the licenses agreements, net of remaining amounts of deferred revenue, as a reduction of revenue.
A reconciliation of segment operating income to income from continuing operations before income taxes is as follows:
 Quarter EndedNine Months Ended
 July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Segment operating income$3,559 $3,567   $9,887 $10,524 
Content License Early Termination—   — — (1,023)
Corporate and unallocated shared expenses(295)  (325)(854)(825)
Restructuring and impairment charges(1)
(2,650)(42)(2,871)  (237)  
Other income (expense), net(2)
(11)(136)96 (730)
Interest expense, net(305)(360)(927)(1,026)
TFCF and Hulu acquisition amortization(3)
(432)(585)(1,569)(1,774)
Income from continuing operations before income taxes$(134)$2,119 $3,762 $4,909 
(1)See Note 16 for a discussion of amounts in restructuring and impairment charges.
(2)See Note 4 for a discussion of amounts in other income (expense), net.
(3)TFCF and Hulu acquisition amortization is as follows:
Quarter EndedNine Months Ended
July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Amortization of intangible assets$361 $422   $1,186 $1,292 
Step-up of film and television costs68   160 374 473 
Intangibles related to TFCF equity investees3   3 9 9 
$432 $585 $1,569 $1,774 
Goodwill
The changes in the carrying amount of goodwill are as follows:
DMEDDPEPTotal
Balance at October 1, 2022$72,347 $5,550 $77,897 
Currency translation adjustments and other, net(16)— (16)
Balance at July 1, 2023$72,331 $5,550 $77,881