The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2018
The Walt Disney Company today reported earnings for its fourth quarter and fiscal year ended September 29, 2018. Diluted
earnings per share (EPS) for the fourth quarter increased 37% to $1.55 from $1.13 in the prior-year quarter. Excluding certain
items affecting comparability(1), EPS for the quarter increased 38% to $1.48 from $1.07 in the prior-year quarter. EPS
for the year increased to $8.36 from $5.69 in the prior year. Excluding certain items affecting comparability(1), EPS
for the year increased to $7.08 from $5.70 in the prior year.
“We’re very pleased with our financial performance in fiscal 2018, delivering record revenue, net income and earnings per
share,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We remain focused on the successful
completion and integration of our 21st Century Fox acquisition and the further development of our direct-to-consumer business,
including the highly anticipated launch of our Disney-branded streaming service late next year.”
The following table summarizes the fourth quarter and full year results for fiscal 2018 and 2017 (in millions, except per share
amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
|
|
2018 |
|
|
2017 |
|
|
Change |
Revenues |
|
|
$ |
14,307 |
|
|
|
$ |
12,779 |
|
|
12 |
% |
|
|
$ |
59,434 |
|
|
|
$ |
55,137 |
|
|
8 |
% |
Segment operating income(1) |
|
|
$ |
3,290 |
|
|
|
$ |
2,812 |
|
|
17 |
% |
|
|
$ |
15,706 |
|
|
|
$ |
14,775 |
|
|
6 |
% |
Net income(2) |
|
|
$ |
2,322 |
|
|
|
$ |
1,747 |
|
|
33 |
% |
|
|
$ |
12,598 |
|
|
|
$ |
8,980 |
|
|
40 |
% |
Diluted EPS(2) |
|
|
$ |
1.55 |
|
|
|
$ |
1.13 |
|
|
37 |
% |
|
|
$ |
8.36 |
|
|
|
$ |
5.69 |
|
|
47 |
% |
EPS excluding certain items affecting comparability(1) |
|
|
$ |
1.48 |
|
|
|
$ |
1.07 |
|
|
38 |
% |
|
|
$ |
7.08 |
|
|
|
$ |
5.70 |
|
|
24 |
% |
Cash provided by operations |
|
|
$ |
3,853 |
|
|
|
$ |
3,570 |
|
|
8 |
% |
|
|
$ |
14,295 |
|
|
|
$ |
12,343 |
|
|
16 |
% |
Free cash flow(1) |
|
|
$ |
2,652 |
|
|
|
$ |
2,675 |
|
|
(1 |
%) |
|
|
$ |
9,830 |
|
|
|
$ |
8,720 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
EPS excluding certain items affecting comparability, segment operating income and
free cash flow are non-GAAP financial measures. Fiscal 2018 included a net benefit from new U.S. federal income tax legislation
(Tax Act). See the discussion on pages 8 through 11. |
(2)
|
|
Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. after
deduction of noncontrolling interests. |
|
|
|
SEGMENT RESULTS
The following table summarizes the fourth quarter and full year segment operating results for fiscal 2018 and 2017 (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
|
|
2018 |
|
|
2017 |
|
|
Change |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Networks |
|
|
$ |
5,963 |
|
|
$ |
5,465 |
|
|
9 |
% |
|
|
$ |
24,500 |
|
|
$ |
23,510 |
|
|
4 |
% |
Parks and Resorts |
|
|
|
5,070 |
|
|
|
4,667 |
|
|
9 |
% |
|
|
|
20,296 |
|
|
|
18,415 |
|
|
10 |
% |
Studio Entertainment |
|
|
|
2,151 |
|
|
|
1,432 |
|
|
50 |
% |
|
|
|
9,987 |
|
|
|
8,379 |
|
|
19 |
% |
Consumer Products & Interactive Media |
|
|
|
1,123 |
|
|
|
1,215 |
|
|
(8 |
)% |
|
|
|
4,651 |
|
|
|
4,833 |
|
|
(4 |
)% |
|
|
|
$ |
14,307 |
|
|
$ |
12,779 |
|
|
12 |
% |
|
|
$ |
59,434 |
|
|
$ |
55,137 |
|
|
8 |
% |
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Networks |
|
|
$ |
1,528 |
|
|
$ |
1,475 |
|
|
4 |
% |
|
|
$ |
6,625 |
|
|
$ |
6,902 |
|
|
(4 |
)% |
Parks and Resorts |
|
|
|
829 |
|
|
|
746 |
|
|
11 |
% |
|
|
|
4,469 |
|
|
|
3,774 |
|
|
18 |
% |
Studio Entertainment |
|
|
|
596 |
|
|
|
218 |
|
|
>100
|
%
|
|
|
|
2,980 |
|
|
|
2,355 |
|
|
27 |
% |
Consumer Products & Interactive Media |
|
|
|
337 |
|
|
|
373 |
|
|
(10 |
)% |
|
|
|
1,632 |
|
|
|
1,744 |
|
|
(6 |
)% |
|
|
|
$ |
3,290 |
|
|
$ |
2,812 |
|
|
17 |
% |
|
|
$ |
15,706 |
|
|
$ |
14,775 |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCUSSION OF FULL YEAR CONSOLIDATED RESULTS
For the year, the increase in diluted EPS was due to a lower effective income tax rate, higher segment operating income, a
decrease in weighted average shares outstanding as a result of our share repurchase program and the benefit from gains on the sale
of real estate. These increases were partially offset by the comparison to a non-cash net gain in connection with the acquisition
of a controlling interest in BAMTech, LLC (BAMTech) in the prior year, impairments of our equity investments in Vice Group Holding,
Inc. (Vice) and Villages Nature in the current year and higher net interest and corporate and unallocated shared expenses.
The decrease in the effective income tax rate was due to the impact of the Tax Act, which included:
- A net benefit of $1.7 billion, which reflected a $2.1 billion benefit from remeasuring our deferred
tax balances to the new statutory rate (Deferred Remeasurement), partially offset by a charge of $0.4 billion for a one-time tax
on certain accumulated foreign earnings (Deemed Repatriation Tax).
- A reduction of the Company’s fiscal 2018 U.S. statutory federal income tax rate to 24.5% from 35.0%
in the prior year, which resulted in a net benefit of approximately $1.2 billion.
Higher segment operating income was due to increases at Parks and Resorts and Studio Entertainment, partially offset by
decreases at Media Networks and Consumer Products & Interactive Media. The increase at Parks and Resorts was due to growth at
both our domestic and international operations. The increase at our domestic operations was due to higher guest spending and
volumes, partially offset by cost inflation, higher technology and operations support expenses and a special fiscal 2018 domestic
employee bonus. In addition, results reflected the comparison to the negative prior-year impacts of Hurricanes Irma and Matthew.
Internationally, the increase was due to higher guest spending and volumes at both Disneyland Paris and Hong Kong Disneyland
Resort. The increase at Studio Entertainment was due to the exceptional performance of our theatrical releases driven by Black
Panther, Star Wars: The Last Jedi, Avengers: Infinity War and Incredibles 2. The decrease at Media
Networks was due to lower advertising revenue, higher losses from Hulu LLC (Hulu) and BAMTech and contractual rate increases for
sports programming. These decreases were partially offset by higher affiliate revenues and an increase in income from program
sales. The decrease at Consumer Products & Interactive Media was primarily due to lower income from licensing activities and a
decrease in comparable store sales at our retail business.
The increase in net interest expense was due to an increase in average interest rates, higher average debt balances and
financing costs related to the pending Twenty-First Century Fox, Inc. (21CF) acquisition. Higher corporate and unallocated shared
expenses were due to costs incurred in connection with the 21CF acquisition and higher compensation costs.
DISCUSSION OF FOURTH QUARTER SEGMENT RESULTS
Media Networks
Media Networks revenues for the quarter increased 9% to $6.0 billion, and segment operating income increased 4% to $1.5 billion.
The following table provides further detail of the Media Networks results (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
|
|
2018 |
|
|
2017 |
|
|
Change |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cable Networks |
|
|
$ |
4,130 |
|
|
|
$3,951 |
|
|
5 |
% |
|
|
$ |
17,063 |
|
|
$ |
16,527 |
|
|
3 |
% |
Broadcasting |
|
|
|
1,833 |
|
|
|
1,514 |
|
|
21 |
% |
|
|
|
7,437 |
|
|
|
6,983 |
|
|
7 |
% |
|
|
|
$ |
5,963 |
|
|
|
$5,465 |
|
|
9 |
% |
|
|
$ |
24,500 |
|
|
$ |
23,510 |
|
|
4 |
% |
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cable Networks |
|
|
$ |
1,159 |
|
|
|
$1,236 |
|
|
(6 |
)% |
|
|
$ |
5,126 |
|
|
$ |
5,353 |
|
|
(4 |
)% |
Broadcasting |
|
|
|
379 |
|
|
|
229 |
|
|
66
|
%
|
|
|
|
1,368 |
|
|
|
1,205 |
|
|
14 |
% |
Equity in the income of investees |
|
|
|
(10 |
) |
|
|
10 |
|
|
nm
|
|
|
|
|
131 |
|
|
|
344 |
|
|
(62 |
)% |
|
|
|
$ |
1,528 |
|
|
|
$1,475 |
|
|
4 |
% |
|
|
$ |
6,625 |
|
|
$ |
6,902 |
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cable Networks
Cable Networks revenues for the quarter increased 5% to $4.1 billion and operating income decreased $77 million to $1.2 billion.
Lower operating income was due to the consolidation of BAMTech, partially offset by increases at the Disney Channels and
Freeform.
In the current quarter, BAMTech’s operating loss is reported in Cable Networks as a result of our acquisition of a controlling
interest on September 25, 2017. In the prior-year quarter, the Company’s share of BAMTech results through September 25, 2017 was
reported in equity in the income of investees. The loss at BAMTech reflects content and marketing costs and ongoing investments in
their technology platform.
The increase at the Disney Channels was driven by lower programming costs, higher income from program sales and decreased
marketing costs.
Higher operating income at Freeform was due to lower programming costs, increased affiliate revenue and lower marketing costs.
These increases were partially offset by lower advertising revenue due to a decrease in impressions driven by a decrease in average
viewership and fewer units delivered.
Results at ESPN were comparable to the prior-year quarter as affiliate revenue growth was offset by higher programming and
production costs, driven by contractual rate increases, and lower advertising revenue. Affiliate revenue growth was due to
contractual rate increases, partially offset by a decline in subscribers. Lower advertising revenue was driven by a decrease in
impressions due to lower average viewership and fewer units delivered.
Broadcasting
Broadcasting revenues for the quarter increased 21% to $1.8 billion and operating income increased $150 million to $379 million.
The increase in operating income was due to higher program sales and affiliate revenue growth driven by contractual rate
increases.
The increase in program sales was primarily due to sales of two Marvel series and Black-ish in the current quarter
compared to one Marvel series in the prior-year quarter.
Advertising revenues were comparable to the prior-year quarter as lower network impressions were offset by higher network rates
and an increase in political advertising at the owned television stations.
Equity in the Income (loss) of Investees
Equity in the income of investees decreased by $20 million to a loss of $10 million primarily due to higher losses from Hulu and
lower income at A+E Television Networks (A+E), partially offset by the comparison to a loss from BAMTech in the prior-year quarter,
which is now consolidated and reported in Cable Networks. The higher loss at Hulu was due to higher programming, marketing and
labor costs, partially offset by growth in subscription and advertising revenue. The decrease at A +E was due to higher
programming costs and lower advertising revenue, partially offset by higher program sales.
Parks and Resorts
Parks and Resorts revenues for the quarter increased 9% to $5.1 billion, and segment operating income increased 11% to $829
million. Operating income growth for the quarter was due to an increase at our domestic operations. Domestic results reflected the
comparison to the adverse impact of Hurricane Irma, which occurred in the prior-year quarter.
Higher operating income at our domestic operations was primarily due to increased guest spending and attendance, partially
offset by increased costs. Guest spending growth was due to increases in average ticket prices for theme park admissions and cruise
line sailings, food, beverage and merchandise spending and average daily hotel room rates. The increase in costs was primarily due
to labor and other cost inflation, a special fiscal 2018 domestic employee bonus and higher charges for project abandonments.
Operating income at our international parks and resorts was comparable to the prior-year quarter as growth at Disneyland Paris
and Hong Kong Disneyland Resort was offset by a decrease at Shanghai Disney Resort. Operating income growth at Disneyland Paris was
due to an increase in average ticket prices while growth at Hong Kong Disneyland Resort was due to higher occupied room nights and
attendance growth, partially offset by cost inflation. The decrease at Shanghai Disney Resort was due to lower average ticket
prices, partially offset by increased attendance.
Studio Entertainment
Studio Entertainment revenues for the quarter increased 50% to $2.2 billion and segment operating income increased $378 million
to $596 million. The increase in operating income was due to growth in theatrical distribution, lower film cost impairments and
higher TV/SVOD and home entertainment distribution results.
The increase in theatrical distribution results was due to the success of Incredibles 2 and Ant-Man and the Wasp
in the current quarter compared to Cars 3 and no Marvel release in the prior-year quarter.
The decrease in film cost impairments reflected a write-off in the prior-year quarter of an animated title that was in
development.
Higher TV/SVOD distribution results were due to growth in our international free and pay television businesses.
The increase in home entertainment results was due to higher unit sales and net effective pricing, partially offset by higher
per unit amortization costs, all of which reflected the performance of Avengers: Infinity War in the current quarter
compared to Guardians of the Galaxy: Vol. 2 in the prior-year quarter. Other significant titles included Solo: A Star
Wars Story in the current quarter, while the prior-year quarter included Beauty and the Beast.
Consumer Products & Interactive Media
Consumer Products & Interactive Media revenues for the quarter decreased 8% to $1.1 billion, and segment operating income
decreased 10% to $337 million due to asset impairments and lower income from licensing activities, partially offset by lower
general and administrative costs at our games business. The asset impairments reflected write-offs of leasehold improvements at
certain retail stores.
Lower income from licensing activities was due to a decrease in revenue from products based on Star Wars and Cars and lower
minimum guarantee shortfall recognition. These decreases were partially offset by lower third-party royalty expense and an increase
in revenue from products based on Spider-Man. Lower minimum guarantee shortfall recognition was due to an unfavorable timing
impact. Shortfalls are generally recognized at the end of the contract period. Because our fiscal quarter ended on September 29, we
did not recognize shortfalls for contractual periods that ended on September 30 in the fourth quarter of fiscal 2018, whereas they
were recognized in the fourth quarter of the prior year.
OTHER QUARTERLY FINANCIAL INFORMATION
Corporate and Unallocated Shared Expenses
Corporate and unallocated shared expenses increased $31 million from $190 million to $221 million for the quarter due to costs
incurred in connection with the 21CF acquisition and higher compensation costs, partially offset by the timing of allocations to
operating segments.
Interest Expense, net
Interest expense, net was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
Interest expense |
|
|
$ |
(189 |
) |
|
|
$ |
(137 |
) |
|
|
(38 |
)% |
Interest and investment income |
|
|
|
30 |
|
|
|
|
52 |
|
|
|
(42 |
)% |
Interest expense, net |
|
|
$ |
(159 |
) |
|
|
$ |
(85 |
) |
|
|
(87 |
)% |
|
|
|
|
|
|
|
|
|
|
The increase in interest expense for the quarter was due to an increase in average interest rates and financing costs related to
the 21CF acquisition.
The decrease in interest and investment income for the quarter was due to the comparison to gains on investments recognized in
the prior-year quarter.
Equity in the Income (Loss) of Investees, net
Equity in the income (loss) of investees was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
Sept. 29, 2018 |
|
|
Sept. 30, 2017 |
|
|
Change |
Equity in the income (loss) of investees in segment results: |
|
|
|
|
|
|
|
|
|
|
Media Networks |
|
|
$ |
(10 |
) |
|
|
$ |
10 |
|
|
|
nm |
|
Parks and Resorts |
|
|
|
(4 |
) |
|
|
|
(17 |
) |
|
|
76 |
% |
Impairment of equity investments |
|
|
|
(210 |
) |
|
|
|
— |
|
|
|
nm
|
|
Equity in the loss of investees, net |
|
|
$ |
(224 |
) |
|
|
$ |
(7 |
) |
|
|
>(100
|
)%
|
|
|
|
|
|
|
|
|
|
|
Income Taxes
The effective income tax rate was as follows:
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
Effective income tax rate |
|
|
24.5 |
% |
|
|
30.8 |
% |
|
|
6.3 |
|
ppt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in the effective income tax rate for the quarter was due to the impact of the Tax Act and the benefit of a tax loss
from liquidating a legal entity. The net favorable impact of the Tax Act reflects the following:
- A reduction in the Company’s fiscal 2018 U.S. statutory federal income tax rate to 24.5% from 35.0%
in the prior year. Net of state tax and other related effects, the reduction in the statutory rate had a positive impact of
approximately 6.3 percentage points on the effective income tax rate.
- A negative impact of approximately $100 million from updating our prior quarter Deemed Repatriation
Tax and Deferred Remeasurement. This update reflected the impact of proposed IRS regulations issued in the current quarter. This
impact was approximately 3.2 percentage points on the effective income tax rate.
Noncontrolling Interests
Net income attributable to noncontrolling interests was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
Net income attributable to noncontrolling interests |
|
|
$ |
97 |
|
|
$ |
118 |
|
|
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
The decrease in net income attributable to noncontrolling interests was due to losses at our direct-to-consumer sports business,
partially offset by the impact of lower tax expense at ESPN.
Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs
and income taxes, as applicable.
FULL YEAR CASH FLOW STATEMENT INFORMATION
Cash Flow
Cash provided by operations and free cash flow were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
Cash provided by operations |
|
|
$ |
14,295 |
|
|
|
$ |
12,343 |
|
|
|
$ |
1,952 |
|
Investments in parks, resorts and other property |
|
|
|
(4,465 |
) |
|
|
|
(3,623 |
) |
|
|
|
(842 |
) |
Free cash flow(1) |
|
|
$ |
9,830 |
|
|
|
$ |
8,720 |
|
|
|
$ |
1,110 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Free cash flow is not a financial measure defined by GAAP. See the discussion on
pages 8 through 11. |
|
|
|
Cash provided by operations for fiscal 2018 increased 16% or $2.0 billion to $14.3 billion compared to fiscal 2017. The increase
in cash provided by operations was due to lower income tax payments, a decrease in pension contributions and higher segment
operating income, partially offset by higher film and television production spending and a payment for the rights to develop a real
estate property in New York.
Capital Expenditures and Depreciation Expense
Investments in parks, resorts and other property were as follows (in millions):
|
|
|
|
|
|
|
Year Ended |
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
2018 |
|
|
2017 |
Media Networks |
|
|
|
|
|
|
Cable Networks |
|
|
$ |
202 |
|
|
$ |
75 |
Broadcasting |
|
|
|
87 |
|
|
|
64 |
Total Media Networks |
|
|
|
289 |
|
|
|
139 |
Parks and Resorts |
|
|
|
|
|
|
Domestic |
|
|
|
3,212 |
|
|
|
2,375 |
International |
|
|
|
671 |
|
|
|
816 |
Total Parks and Resorts |
|
|
|
3,883 |
|
|
|
3,191 |
Studio Entertainment |
|
|
|
96 |
|
|
|
85 |
Consumer Products & Interactive Media |
|
|
|
18 |
|
|
|
30 |
Corporate |
|
|
|
179 |
|
|
|
178 |
Total investments in parks, resorts and other property |
|
|
$ |
4,465 |
|
|
$ |
3,623 |
|
|
|
|
|
|
|
Capital expenditures increased from $3.6 billion to $4.5 billion driven by higher spending on new attractions at our domestic
parks and resorts and on technology at BAMTech, partially offset by lower spending at Hong Kong Disneyland Resort and Shanghai
Disney Resort.
Depreciation expense was as follows (in millions):
|
|
|
|
|
|
|
Year Ended |
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
2018 |
|
|
2017 |
Media Networks |
|
|
|
|
|
|
Cable Networks |
|
|
$ |
172 |
|
|
$ |
137 |
Broadcasting |
|
|
|
92 |
|
|
|
88 |
Total Media Networks |
|
|
|
264 |
|
|
|
225 |
Parks and Resorts |
|
|
|
|
|
|
Domestic |
|
|
|
1,410 |
|
|
|
1,336 |
International |
|
|
|
742 |
|
|
|
660 |
Total Parks and Resorts |
|
|
|
2,152 |
|
|
|
1,996 |
Studio Entertainment |
|
|
|
55 |
|
|
|
50 |
Consumer Products & Interactive Media |
|
|
|
69 |
|
|
|
63 |
Corporate |
|
|
|
218 |
|
|
|
252 |
Total depreciation expense |
|
|
$ |
2,758 |
|
|
$ |
2,586 |
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This earnings release presents EPS excluding the impact of certain items affecting comparability, free cash flow and aggregate
segment operating income, all of which are important financial measures for the Company but are not financial measures defined by
GAAP.
These measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative
measures of EPS, cash flow or net income as determined in accordance with GAAP. EPS excluding certain items affecting
comparability, free cash flow and aggregate segment operating income as we have calculated them may not be comparable to similarly
titled measures reported by other companies.
EPS excluding certain items affecting comparability – The Company uses EPS excluding certain items
to evaluate the performance of the Company’s operations exclusive of certain items affecting comparability of results from period
to period. The Company believes that information about EPS exclusive of these items is useful to investors, particularly where the
impact of the excluded items is significant in relation to reported earnings, because the measure allows for comparability between
periods of the operating performance of the Company’s business and allows investors to evaluate the impact of these items
separately from the impact of the operations of the business.
The following table reconciles reported EPS to EPS excluding certain items affecting comparability for the fourth quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
Pre-Tax |
|
|
Tax
|
|
|
After-Tax |
|
|
|
|
|
Change vs.
|
|
|
|
Income/ |
|
|
Benefit/
|
|
|
Income/ |
|
|
|
|
|
prior year
|
(in millions except EPS) |
|
|
Loss |
|
|
Expense (1)
|
|
|
Loss (2)
|
|
|
EPS (3)
|
|
|
period |
Quarter Ended September 29, 2018: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
$ |
3,202 |
|
|
|
$ |
(783 |
) |
|
|
$ |
2,419 |
|
|
|
$ |
1.55 |
|
|
|
37 |
% |
Exclude (4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of real estate |
|
|
|
(507 |
) |
|
|
|
134 |
|
|
|
|
(373 |
) |
|
|
|
(0.25 |
) |
|
|
|
Impairment of equity investments |
|
|
|
210 |
|
|
|
|
(49 |
) |
|
|
|
161 |
|
|
|
|
0.11 |
|
|
|
|
Net impact of the Tax Act |
|
|
|
— |
|
|
|
|
100 |
|
|
|
|
100 |
|
|
|
|
0.06 |
|
|
|
|
Restructuring and impairment charges |
|
|
|
5 |
|
|
|
|
(1 |
) |
|
|
|
4 |
|
|
|
|
— |
|
|
|
|
Excluding certain items affecting comparability |
|
|
$ |
2,910 |
|
|
|
$ |
(599 |
) |
|
|
$ |
2,311 |
|
|
|
$ |
1.48 |
|
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
$ |
2,694 |
|
|
|
$ |
(829 |
) |
|
|
$ |
1,865 |
|
|
|
$ |
1.13 |
|
|
|
|
Exclude (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to the acquisition of BAMTech |
|
|
|
(255 |
) |
|
|
|
93 |
|
|
|
|
(162 |
) |
|
|
|
(0.10 |
) |
|
|
|
Restructuring and impairment charges |
|
|
|
98 |
|
|
|
|
(31 |
) |
|
|
|
67 |
|
|
|
|
0.04 |
|
|
|
|
Excluding certain items affecting comparability |
|
|
$ |
2,537 |
|
|
|
$ |
(767 |
) |
|
|
$ |
1,770 |
|
|
|
$ |
1.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Tax benefit/expense adjustments are determined using the tax rate applicable to the
individual item affecting comparability. |
(2) |
|
Before noncontrolling interest share. |
(3) |
|
Net of noncontrolling interest share, where applicable. Total may not equal the sum
of the column due to rounding. |
(4) |
|
Items affecting comparability during the fourth quarter of fiscal 2018 include a gain
on the sale of real estate ($507 million), which was recorded in “Other income, net” in the Condensed Consolidated Statements
of Income, impairments of Vice and Villages Nature equity method investments ($157 million and $53 million, respectively),
which were recorded in “Equity in the income (loss) of investees, net” in the Condensed Consolidated Statements of Income, and
the impacts of the Deemed Repatriation Tax ($86 million) and the Deferred Remeasurement ($14 million) related to the Tax
Act. |
(5) |
|
In the prior-year quarter, items affecting comparability included a non-cash net gain
in connection with the acquisition of a controlling interest in BAMTech ($255 million), which was recorded in “Other income,
net” in the Condensed Consolidated Statements of Income, and restructuring and impairment charges ($98 million). |
|
|
|
The following table reconciles reported EPS to EPS excluding certain items affecting comparability for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
Pre-Tax |
|
|
Tax
|
|
|
After-Tax |
|
|
|
|
|
Change vs.
|
|
|
|
Income/ |
|
|
Benefit/
|
|
|
Income/ |
|
|
|
|
|
prior year
|
(in millions except EPS) |
|
|
Loss |
|
|
Expense (1)
|
|
|
Loss (2)
|
|
|
EPS (3)
|
|
|
period |
Year Ended September 29, 2018: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
$ |
14,729 |
|
|
|
$ |
(1,663 |
) |
|
|
$ |
13,066 |
|
|
|
$ |
8.36 |
|
|
|
47 |
% |
Exclude(4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net benefit from the Tax Act |
|
|
|
— |
|
|
|
|
(1,701 |
) |
|
|
|
(1,701 |
) |
|
|
|
(1.11 |
) |
|
|
|
Other income, net |
|
|
|
(601 |
) |
|
|
|
158 |
|
|
|
|
(443 |
) |
|
|
|
(0.30 |
) |
|
|
|
Impairment of equity investments |
|
|
|
210 |
|
|
|
|
(49 |
) |
|
|
|
161 |
|
|
|
|
0.11 |
|
|
|
|
Restructuring and impairment charges |
|
|
|
33 |
|
|
|
|
(7 |
) |
|
|
|
26 |
|
|
|
|
0.02 |
|
|
|
|
Excluding certain items affecting comparability |
|
|
$ |
14,371 |
|
|
|
$ |
(3,262 |
) |
|
|
$ |
11,109 |
|
|
|
$ |
7.08 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended September 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
|
|
$ |
13,788 |
|
|
|
$ |
(4,422 |
) |
|
|
$ |
9,366 |
|
|
|
$ |
5.69 |
|
|
|
|
Exclude(5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to the acquisition of BAMTech |
|
|
|
(255 |
) |
|
|
|
93 |
|
|
|
|
(162 |
) |
|
|
|
(0.10 |
) |
|
|
|
Settlement of litigation |
|
|
|
177 |
|
|
|
|
(65 |
) |
|
|
|
112 |
|
|
|
|
0.07 |
|
|
|
|
Restructuring and impairment charges |
|
|
|
98 |
|
|
|
|
(31 |
) |
|
|
|
67 |
|
|
|
|
0.04 |
|
|
|
|
Excluding certain items affecting comparability |
|
|
$ |
13,808 |
|
|
|
$ |
(4,425 |
) |
|
|
$ |
9,383 |
|
|
|
$ |
5.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Tax benefit/expense adjustments are determined using the tax rate applicable to the
individual item affecting comparability. |
(2) |
|
Before noncontrolling interest share. |
(3) |
|
Net of noncontrolling interest share, where applicable. Total may not equal the sum
of the column due to rounding. |
(4) |
|
Items affecting comparability for fiscal 2018 include a net benefit of $1.7 billion
from the Tax Act due to a $2.1 billion benefit from the Deferred Remeasurement, partially offset by a $0.4 billion impact from
the Deemed Repatriation Tax. In addition, the current year includes gains from the sale of real estate and property rights
($560 million), insurance proceeds related to a legal matter ($38 million) and an adjustment to a fiscal 2017 non-cash gain ($3
million), which were recorded in “Other income, net” in the Condensed Consolidated Statements of Income, impairments of Vice
and Villages Nature equity method investments ($157 million and $53 million, respectively), which were recorded in “Equity in
the income (loss) of investees, net” in the Condensed Consolidated Statements of Income, and restructuring and impairment
charges ($33 million). |
(5) |
|
Items affecting comparability for fiscal 2017 included a non-cash net gain in
connection with the acquisition of a controlling interest in BAMTech ($255 million), a charge, net of committed insurance
recoveries, in connection with the settlement of litigation ($177 million) and restructuring and impairment charges ($98
million). The gain in connection with the acquisition of BAMTech and charge related to the settlement of litigation were
recorded in “Other income, net” in the Condensed Consolidated Statements of Income. |
|
|
|
Free cash flow – The Company uses free cash flow (cash provided by operations less investments in
parks, resorts and other property), among other measures, to evaluate the ability of its operations to generate cash that is
available for purposes other than capital expenditures. Management believes that information about free cash flow provides
investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and
investments and pay dividends or repurchase shares.
Aggregate segment operating income – The Company evaluates the performance of its operating
segments based on segment operating income, and management uses aggregate segment operating income as a measure of the performance
of operating businesses separate from non-operating factors. The Company believes that information about aggregate segment
operating income assists investors by allowing them to evaluate changes in the operating results of the Company’s portfolio of
businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and
the other factors that affect reported results.
The following table reconciles income before income taxes to segment operating income (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
Sept. 29, |
|
|
Sept. 30, |
|
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
Change |
|
|
2018 |
|
|
2017 |
|
|
Change |
Income before income taxes |
|
|
$ |
3,202 |
|
|
|
$ |
2,694 |
|
|
|
19 |
% |
|
|
$ |
14,729 |
|
|
|
$ |
13,788 |
|
|
|
7 |
% |
Add/(subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and unallocated shared expenses |
|
|
|
221 |
|
|
|
|
190 |
|
|
|
(16 |
)% |
|
|
|
761 |
|
|
|
|
582 |
|
|
|
(31 |
)% |
Restructuring and impairment charges |
|
|
|
5 |
|
|
|
|
98 |
|
|
|
95 |
% |
|
|
|
33 |
|
|
|
|
98 |
|
|
|
66 |
% |
Other income, net |
|
|
|
(507 |
) |
|
|
|
(255 |
) |
|
|
99 |
% |
|
|
|
(601 |
) |
|
|
|
(78 |
) |
|
|
>100
|
%
|
Interest expense, net |
|
|
|
159 |
|
|
|
|
85 |
|
|
|
(87 |
)% |
|
|
|
574 |
|
|
|
|
385 |
|
|
|
(49 |
)% |
Impairment of equity investments(1) |
|
|
|
210 |
|
|
|
|
— |
|
|
|
nm
|
|
|
|
|
210 |
|
|
|
|
— |
|
|
|
nm
|
|
Segment Operating income |
|
|
$ |
3,290 |
|
|
|
$ |
2,812 |
|
|
|
17 |
% |
|
|
$ |
15,706 |
|
|
|
$ |
14,775 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Reflects impairments of Vice and Villages Nature |
|
|
|
CONFERENCE CALL INFORMATION
In conjunction with this release, The Walt Disney Company will host a conference call today, November 8, 2018, at 4:30 PM
EST/1:30 PM PST via a live webcast. To access the webcast go to
www.disney.com/investors. The discussion will be archived.
FORWARD-LOOKING STATEMENTS
Management believes certain statements in this earnings release may constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s views and
assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake
any obligation to update these statements.
Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as
well as from developments beyond the Company’s control, including:
- changes in domestic and global economic conditions, competitive conditions and consumer
preferences;
- adverse weather conditions or natural disasters;
- health concerns;
- international, political, or military developments; and
- technological developments.
Such developments may affect entertainment, travel and leisure businesses generally and may, among other things,
affect:
- the performance of the Company’s theatrical and home entertainment releases;
- the advertising market for broadcast and cable television programming;
- demand for our products and services;
- expenses of providing medical and pension benefits;
- income tax expense;
- performance of some or all company businesses either directly or through their impact on those who
distribute our products; and
- completion of the pending transaction with 21CF.
Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2017 under
Item 1A, “Risk Factors,” and subsequent reports.
|
THE WALT DISNEY COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(unaudited; in millions, except per share data) |
|
|
|
|
Quarter Ended |
|
|
Year Ended |
|
|
|
September 29, |
|
|
September 30, |
|
|
September 29, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Revenues |
|
|
$ |
14,307 |
|
|
|
$ |
12,779 |
|
|
|
$ |
59,434 |
|
|
|
$ |
55,137 |
|
Costs and expenses |
|
|
|
(11,224 |
) |
|
|
|
(10,150 |
) |
|
|
|
(44,597 |
) |
|
|
|
(41,264 |
) |
Restructuring and impairment charges |
|
|
|
(5 |
) |
|
|
|
(98 |
) |
|
|
|
(33 |
) |
|
|
|
(98 |
) |
Other income, net |
|
|
|
507 |
|
|
|
|
255 |
|
|
|
|
601 |
|
|
|
|
78 |
|
Interest expense, net |
|
|
|
(159 |
) |
|
|
|
(85 |
) |
|
|
|
(574 |
) |
|
|
|
(385 |
) |
Equity in the income (loss) of investees, net |
|
|
|
(224 |
) |
|
|
|
(7 |
) |
|
|
|
(102 |
) |
|
|
|
320 |
|
Income before income taxes |
|
|
|
3,202 |
|
|
|
|
2,694 |
|
|
|
|
14,729 |
|
|
|
|
13,788 |
|
Income taxes |
|
|
|
(783 |
) |
|
|
|
(829 |
) |
|
|
|
(1,663 |
) |
|
|
|
(4,422 |
) |
Net income |
|
|
|
2,419 |
|
|
|
|
1,865 |
|
|
|
|
13,066 |
|
|
|
|
9,366 |
|
Less: Net income attributable to noncontrolling interests |
|
|
|
(97 |
) |
|
|
|
(118 |
) |
|
|
|
(468 |
) |
|
|
|
(386 |
) |
Net income attributable to The Walt Disney Company (Disney) |
|
|
$ |
2,322 |
|
|
|
$ |
1,747 |
|
|
|
$ |
12,598 |
|
|
|
$ |
8,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Disney: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
$ |
1.55 |
|
|
|
$ |
1.13 |
|
|
|
$ |
8.36 |
|
|
|
$ |
5.69 |
|
Basic |
|
|
$ |
1.56 |
|
|
|
$ |
1.14 |
|
|
|
$ |
8.40 |
|
|
|
$ |
5.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
1,497 |
|
|
|
|
1,547 |
|
|
|
|
1,507 |
|
|
|
|
1,578 |
|
Basic |
|
|
|
1,489 |
|
|
|
|
1,538 |
|
|
|
|
1,499 |
|
|
|
|
1,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
1.68 |
|
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE WALT DISNEY COMPANY |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(unaudited; in millions, except per share data) |
|
|
|
|
September 29, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
4,150 |
|
|
|
$ |
4,017 |
|
Receivables |
|
|
|
9,334 |
|
|
|
|
8,633 |
|
Inventories |
|
|
|
1,392 |
|
|
|
|
1,373 |
|
Television costs and advances |
|
|
|
1,314 |
|
|
|
|
1,278 |
|
Other current assets |
|
|
|
635 |
|
|
|
|
588 |
|
Total current assets |
|
|
|
16,825 |
|
|
|
|
15,889 |
|
Film and television costs |
|
|
|
7,888 |
|
|
|
|
7,481 |
|
Investments |
|
|
|
2,899 |
|
|
|
|
3,202 |
|
Parks, resorts and other property |
|
|
|
|
|
|
Attractions, buildings and equipment |
|
|
|
55,238 |
|
|
|
|
54,043 |
|
Accumulated depreciation |
|
|
|
(30,764 |
) |
|
|
|
(29,037 |
) |
|
|
|
|
24,474 |
|
|
|
|
25,006 |
|
Projects in progress |
|
|
|
3,942 |
|
|
|
|
2,145 |
|
Land |
|
|
|
1,124 |
|
|
|
|
1,255 |
|
|
|
|
|
29,540 |
|
|
|
|
28,406 |
|
Intangible assets, net |
|
|
|
6,812 |
|
|
|
|
6,995 |
|
Goodwill |
|
|
|
31,269 |
|
|
|
|
31,426 |
|
Other assets |
|
|
|
3,365 |
|
|
|
|
2,390 |
|
Total assets |
|
|
$ |
98,598 |
|
|
|
$ |
95,789 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and other accrued liabilities |
|
|
$ |
9,479 |
|
|
|
$ |
8,855 |
|
Current portion of borrowings |
|
|
|
3,790 |
|
|
|
|
6,172 |
|
Deferred revenue and other |
|
|
|
4,591 |
|
|
|
|
4,568 |
|
Total current liabilities |
|
|
|
17,860 |
|
|
|
|
19,595 |
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
17,084 |
|
|
|
|
19,119 |
|
Deferred income taxes |
|
|
|
3,109 |
|
|
|
|
4,480 |
|
Other long-term liabilities |
|
|
|
6,590 |
|
|
|
|
6,443 |
|
Commitments and contingencies |
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
|
1,123 |
|
|
|
|
1,148 |
|
Equity |
|
|
|
|
|
|
Preferred stock, $.01 par value |
|
|
|
|
|
|
|
|
|
|
Authorized – 100 million shares, Issued – none |
|
|
|
— |
|
|
|
|
— |
|
Common stock, $.01 par value, Authorized – 4.6 billion shares, |
|
|
|
|
|
|
|
|
|
|
Issued – 2.9 billion shares |
|
|
|
36,779 |
|
|
|
|
36,248 |
|
Retained earnings |
|
|
|
82,679 |
|
|
|
|
72,606 |
|
Accumulated other comprehensive loss |
|
|
|
(3,097 |
) |
|
|
|
(3,528 |
) |
|
|
|
|
116,361 |
|
|
|
|
105,326 |
|
Treasury stock, at cost, 1.4 billion shares |
|
|
|
(67,588 |
) |
|
|
|
(64,011 |
) |
Total Disney Shareholders’ equity |
|
|
|
48,773 |
|
|
|
|
41,315 |
|
Noncontrolling interests |
|
|
|
4,059 |
|
|
|
|
3,689 |
|
Total equity |
|
|
|
52,832 |
|
|
|
|
45,004 |
|
Total liabilities and equity |
|
|
$ |
98,598 |
|
|
|
$ |
95,789 |
|
|
|
|
|
|
|
|
|
THE WALT DISNEY COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited; in millions) |
|
|
|
|
Year Ended |
|
|
|
September 29, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
|
|
$ |
13,066 |
|
|
$ |
9,366 |
Depreciation and amortization |
|
|
|
3,011 |
|
|
|
2,782 |
Gains on acquisitions and dispositions |
|
|
|
(560) |
|
|
|
(289) |
Deferred income taxes |
|
|
|
(1,573) |
|
|
|
334 |
Equity in the income of investees |
|
|
|
102 |
|
|
|
(320) |
Cash distributions received from equity investees |
|
|
|
775 |
|
|
|
788 |
Net change in film and television costs and advances |
|
|
|
(523) |
|
|
|
(1,075) |
Equity-based compensation |
|
|
|
393 |
|
|
|
364 |
Other |
|
|
|
441 |
|
|
|
503 |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Receivables |
|
|
|
(720) |
|
|
|
107 |
Inventories |
|
|
|
(17) |
|
|
|
(5) |
Other assets |
|
|
|
(927) |
|
|
|
(52) |
Accounts payable and other accrued liabilities |
|
|
|
235 |
|
|
|
(368) |
Income taxes |
|
|
|
592 |
|
|
|
208 |
Cash provided by operations |
|
|
|
14,295 |
|
|
|
12,343 |
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
Investments in parks, resorts and other property |
|
|
|
(4,465) |
|
|
|
(3,623) |
Acquisitions |
|
|
|
(1,581) |
|
|
|
(417) |
Other |
|
|
|
710 |
|
|
|
(71) |
Cash used in investing activities |
|
|
|
(5,336) |
|
|
|
(4,111) |
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
Commercial paper borrowings/(payments), net |
|
|
|
(1,768) |
|
|
|
1,247 |
Borrowings |
|
|
|
1,056 |
|
|
|
4,820 |
Reduction of borrowings |
|
|
|
(1,871) |
|
|
|
(2,364) |
Dividends |
|
|
|
(2,515) |
|
|
|
(2,445) |
Repurchases of common stock |
|
|
|
(3,577) |
|
|
|
(9,368) |
Proceeds from exercise of stock options |
|
|
|
210 |
|
|
|
276 |
Contributions from noncontrolling interest holders |
|
|
|
399 |
|
|
|
17 |
Other |
|
|
|
(777) |
|
|
|
(1,142) |
Cash used in financing activities |
|
|
|
(8,843) |
|
|
|
(8,959) |
|
|
|
|
|
|
|
Impact of exchange rates on cash, cash equivalents and restricted cash |
|
|
|
(25) |
|
|
|
31 |
|
|
|
|
|
|
|
Change in cash, cash equivalents and restricted cash |
|
|
|
91 |
|
|
|
(696) |
Cash, cash equivalents and restricted cash, beginning of year |
|
|
|
4,064 |
|
|
|
4,760 |
Cash, cash equivalents and restricted cash, end of year |
|
|
$ |
4,155 |
|
|
$ |
4,064 |
|
|
|
|
|
|
|
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20181108005971r1&sid=mstr3&distro=nx&lang=en)
The Walt Disney Company
Zenia Mucha
Corporate Communications
818-560-5300
or
Lowell Singer
Investor Relations
818-560-6601
View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005971/en/