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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Walt Disney Co | NYSE:DIS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.12 | -0.11% | 112.50 | 848 | 09:04:17 |
For the Quarterly Period Ended
|
|
Commission File Number 1-11605
|
July 1, 2017
|
|
|
|
|
|
|
|
Incorporated in Delaware
|
|
I.R.S. Employer Identification
|
|
|
No. 95-4545390
|
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
¨
|
|
|
|
|
|
||
Non-accelerated filer
(Do not check if smaller reporting company)
|
|
¨
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
¨
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Services
|
$
|
12,097
|
|
|
$
|
12,113
|
|
|
$
|
35,990
|
|
|
$
|
35,906
|
|
Products
|
2,141
|
|
|
2,164
|
|
|
6,368
|
|
|
6,584
|
|
||||
Total revenues
|
14,238
|
|
|
14,277
|
|
|
42,358
|
|
|
42,490
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of services (exclusive of depreciation and amortization)
|
(6,469
|
)
|
|
(5,946
|
)
|
|
(19,328
|
)
|
|
(18,568
|
)
|
||||
Cost of products (exclusive of depreciation and amortization)
|
(1,248
|
)
|
|
(1,255
|
)
|
|
(3,764
|
)
|
|
(4,120
|
)
|
||||
Selling, general, administrative and other
|
(2,022
|
)
|
|
(2,305
|
)
|
|
(5,948
|
)
|
|
(6,467
|
)
|
||||
Depreciation and amortization
|
(711
|
)
|
|
(626
|
)
|
|
(2,074
|
)
|
|
(1,838
|
)
|
||||
Total costs and expenses
|
(10,450
|
)
|
|
(10,132
|
)
|
|
(31,114
|
)
|
|
(30,993
|
)
|
||||
Restructuring and impairment charges
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(125
|
)
|
||||
Other expense
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
||||
Interest expense, net
|
(117
|
)
|
|
(70
|
)
|
|
(300
|
)
|
|
(161
|
)
|
||||
Equity in the income of investees
|
124
|
|
|
152
|
|
|
327
|
|
|
776
|
|
||||
Income before income taxes
|
3,618
|
|
|
4,183
|
|
|
11,094
|
|
|
11,987
|
|
||||
Income taxes
|
(1,144
|
)
|
|
(1,471
|
)
|
|
(3,593
|
)
|
|
(4,089
|
)
|
||||
Net income
|
2,474
|
|
|
2,712
|
|
|
7,501
|
|
|
7,898
|
|
||||
Less: Net income attributable to noncontrolling interests
|
(108
|
)
|
|
(115
|
)
|
|
(268
|
)
|
|
(278
|
)
|
||||
Net income attributable to The Walt Disney Company (Disney)
|
$
|
2,366
|
|
|
$
|
2,597
|
|
|
$
|
7,233
|
|
|
$
|
7,620
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Disney:
|
|
|
|
|
|
|
|
||||||||
Diluted
|
$
|
1.51
|
|
|
$
|
1.59
|
|
|
$
|
4.55
|
|
|
$
|
4.63
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.51
|
|
|
$
|
1.60
|
|
|
$
|
4.58
|
|
|
$
|
4.66
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Diluted
|
1,572
|
|
|
1,631
|
|
|
1,588
|
|
|
1,647
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,562
|
|
|
1,621
|
|
|
1,578
|
|
|
1,636
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share
|
$
|
0.78
|
|
|
$
|
0.71
|
|
|
$
|
1.56
|
|
|
$
|
1.42
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Net income
|
$
|
2,474
|
|
|
$
|
2,712
|
|
|
$
|
7,501
|
|
|
$
|
7,898
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Market value adjustments for investments
|
(5
|
)
|
|
(7
|
)
|
|
(15
|
)
|
|
(11
|
)
|
||||
Market value adjustments for hedges
|
(92
|
)
|
|
(84
|
)
|
|
24
|
|
|
(313
|
)
|
||||
Pension and postretirement medical plan adjustments
|
68
|
|
|
28
|
|
|
194
|
|
|
110
|
|
||||
Foreign currency translation and other
|
70
|
|
|
(84
|
)
|
|
(153
|
)
|
|
(143
|
)
|
||||
Other comprehensive income/(loss)
|
41
|
|
|
(147
|
)
|
|
50
|
|
|
(357
|
)
|
||||
Comprehensive income
|
2,515
|
|
|
2,565
|
|
|
7,551
|
|
|
7,541
|
|
||||
Less: Net income attributable to noncontrolling interests
|
(108
|
)
|
|
(115
|
)
|
|
(268
|
)
|
|
(278
|
)
|
||||
Less: Other comprehensive (income)/loss attributable to noncontrolling interests
|
(25
|
)
|
|
47
|
|
|
65
|
|
|
79
|
|
||||
Comprehensive income attributable to Disney
|
$
|
2,382
|
|
|
$
|
2,497
|
|
|
$
|
7,348
|
|
|
$
|
7,342
|
|
|
July 1,
2017 |
|
October 1,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,336
|
|
|
$
|
4,610
|
|
Receivables
|
9,636
|
|
|
9,065
|
|
||
Inventories
|
1,300
|
|
|
1,390
|
|
||
Television costs and advances
|
1,214
|
|
|
1,208
|
|
||
Other current assets
|
665
|
|
|
693
|
|
||
Total current assets
|
17,151
|
|
|
16,966
|
|
||
Film and television costs
|
6,798
|
|
|
6,339
|
|
||
Investments
|
4,141
|
|
|
4,280
|
|
||
Parks, resorts and other property
|
|
|
|
||||
Attractions, buildings and equipment
|
52,934
|
|
|
50,270
|
|
||
Accumulated depreciation
|
(28,335
|
)
|
|
(26,849
|
)
|
||
|
24,599
|
|
|
23,421
|
|
||
Projects in progress
|
1,889
|
|
|
2,684
|
|
||
Land
|
1,245
|
|
|
1,244
|
|
||
|
27,733
|
|
|
27,349
|
|
||
Intangible assets, net
|
6,797
|
|
|
6,949
|
|
||
Goodwill
|
27,835
|
|
|
27,810
|
|
||
Other assets
|
2,297
|
|
|
2,340
|
|
||
Total assets
|
$
|
92,752
|
|
|
$
|
92,033
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
$
|
9,374
|
|
|
$
|
9,130
|
|
Current portion of borrowings
|
3,338
|
|
|
3,687
|
|
||
Deferred revenue and other
|
4,382
|
|
|
4,025
|
|
||
Total current liabilities
|
17,094
|
|
|
16,842
|
|
||
Borrowings
|
18,849
|
|
|
16,483
|
|
||
Deferred income taxes
|
4,177
|
|
|
3,679
|
|
||
Other long-term liabilities
|
6,581
|
|
|
7,706
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|
||
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 |
36,119
|
|
|
35,859
|
|
||
Retained earnings
|
70,863
|
|
|
66,088
|
|
||
Accumulated other comprehensive loss
|
(3,864
|
)
|
|
(3,979
|
)
|
||
|
103,118
|
|
|
97,968
|
|
||
Treasury stock, at cost, 1.3 billion shares
|
(60,587
|
)
|
|
(54,703
|
)
|
||
Total Disney Shareholders’ equity
|
42,531
|
|
|
43,265
|
|
||
Noncontrolling interests
|
3,520
|
|
|
4,058
|
|
||
Total equity
|
46,051
|
|
|
47,323
|
|
||
Total liabilities and equity
|
$
|
92,752
|
|
|
$
|
92,033
|
|
|
Nine Months Ended
|
||||||
|
July 1,
2017 |
|
July 2,
2016 |
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
7,501
|
|
|
$
|
7,898
|
|
Depreciation and amortization
|
2,074
|
|
|
1,838
|
|
||
Deferred income taxes
|
294
|
|
|
885
|
|
||
Equity in the income of investees
|
(327
|
)
|
|
(776
|
)
|
||
Cash distributions received from equity investees
|
584
|
|
|
594
|
|
||
Net change in film and television costs and advances
|
(745
|
)
|
|
(224
|
)
|
||
Equity-based compensation
|
278
|
|
|
305
|
|
||
Other
|
373
|
|
|
605
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(786
|
)
|
|
(821
|
)
|
||
Inventories
|
93
|
|
|
214
|
|
||
Other assets
|
130
|
|
|
(87
|
)
|
||
Accounts payable and other accrued liabilities
|
(781
|
)
|
|
(628
|
)
|
||
Income taxes
|
143
|
|
|
(188
|
)
|
||
Cash provided by operations
|
8,831
|
|
|
9,615
|
|
||
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
||||
Investments in parks, resorts and other property
|
(2,728
|
)
|
|
(3,691
|
)
|
||
Acquisitions
|
(557
|
)
|
|
(400
|
)
|
||
Other
|
(5
|
)
|
|
(135
|
)
|
||
Cash used in investing activities
|
(3,290
|
)
|
|
(4,226
|
)
|
||
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
||||
Commercial paper repayments, net
|
(112
|
)
|
|
(216
|
)
|
||
Borrowings
|
4,053
|
|
|
4,046
|
|
||
Reduction of borrowings
|
(1,736
|
)
|
|
(672
|
)
|
||
Dividends
|
(1,237
|
)
|
|
(1,168
|
)
|
||
Repurchases of common stock
|
(5,944
|
)
|
|
(5,908
|
)
|
||
Proceeds from exercise of stock options
|
256
|
|
|
216
|
|
||
Other
|
(1,072
|
)
|
|
(618
|
)
|
||
Cash used in financing activities
|
(5,792
|
)
|
|
(4,320
|
)
|
||
|
|
|
|
||||
Impact of exchange rates on cash and cash equivalents
|
(23
|
)
|
|
(111
|
)
|
||
|
|
|
|
||||
Change in cash and cash equivalents
|
(274
|
)
|
|
958
|
|
||
Cash and cash equivalents, beginning of period
|
4,610
|
|
|
4,269
|
|
||
Cash and cash equivalents, end of period
|
$
|
4,336
|
|
|
$
|
5,227
|
|
|
Quarter Ended
|
||||||||||||||||||||||
|
July 1, 2017
|
|
July 2, 2016
|
||||||||||||||||||||
|
Disney
Shareholders
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|
Disney
Shareholders
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
||||||||||||
Beginning balance
|
$
|
43,784
|
|
|
$
|
3,483
|
|
|
$
|
47,267
|
|
|
$
|
44,124
|
|
|
$
|
3,886
|
|
|
$
|
48,010
|
|
Comprehensive income
|
2,382
|
|
|
133
|
|
|
2,515
|
|
|
2,497
|
|
|
68
|
|
|
2,565
|
|
||||||
Equity compensation activity
|
174
|
|
|
—
|
|
|
174
|
|
|
235
|
|
|
—
|
|
|
235
|
|
||||||
Dividends
|
(1,208
|
)
|
|
—
|
|
|
(1,208
|
)
|
|
(1,145
|
)
|
|
—
|
|
|
(1,145
|
)
|
||||||
Common stock repurchases
|
(2,444
|
)
|
|
—
|
|
|
(2,444
|
)
|
|
(1,517
|
)
|
|
—
|
|
|
(1,517
|
)
|
||||||
Distributions and other
|
(157
|
)
|
|
(96
|
)
|
|
(253
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||||
Ending balance
|
$
|
42,531
|
|
|
$
|
3,520
|
|
|
$
|
46,051
|
|
|
$
|
44,193
|
|
|
$
|
3,953
|
|
|
$
|
48,146
|
|
|
Nine Months Ended
|
||||||||||||||||||||||
|
July 1, 2017
|
|
July 2, 2016
|
||||||||||||||||||||
|
Disney
Shareholders
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|
Disney
Shareholders
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
||||||||||||
Beginning balance
|
$
|
43,265
|
|
|
$
|
4,058
|
|
|
$
|
47,323
|
|
|
$
|
44,525
|
|
|
$
|
4,130
|
|
|
$
|
48,655
|
|
Comprehensive income
|
7,348
|
|
|
203
|
|
|
7,551
|
|
|
7,342
|
|
|
199
|
|
|
7,541
|
|
||||||
Equity compensation activity
|
404
|
|
|
—
|
|
|
404
|
|
|
557
|
|
|
—
|
|
|
557
|
|
||||||
Dividends
|
(2,445
|
)
|
|
—
|
|
|
(2,445
|
)
|
|
(2,313
|
)
|
|
—
|
|
|
(2,313
|
)
|
||||||
Common stock repurchases
|
(5,944
|
)
|
|
—
|
|
|
(5,944
|
)
|
|
(5,908
|
)
|
|
—
|
|
|
(5,908
|
)
|
||||||
Distributions and other
|
(97
|
)
|
|
(741
|
)
|
|
(838
|
)
|
|
(10
|
)
|
|
(376
|
)
|
|
(386
|
)
|
||||||
Ending balance
|
$
|
42,531
|
|
|
$
|
3,520
|
|
|
$
|
46,051
|
|
|
$
|
44,193
|
|
|
$
|
3,953
|
|
|
$
|
48,146
|
|
1.
|
Principles of Consolidation
|
2.
|
Segment Information
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Media Networks
|
$
|
127
|
|
|
$
|
154
|
|
|
$
|
334
|
|
|
$
|
447
|
|
Parks and Resorts
|
(3
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
||||
Consumer Products & Interactive Media
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Equity in the income of investees included in segment operating income
|
124
|
|
|
154
|
|
|
327
|
|
|
447
|
|
||||
Vice Gain
|
—
|
|
|
—
|
|
|
—
|
|
|
332
|
|
||||
Other
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Total equity in the income of investees
|
$
|
124
|
|
|
$
|
152
|
|
|
$
|
327
|
|
|
$
|
776
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Revenues
(1)
:
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
5,866
|
|
|
$
|
5,906
|
|
|
$
|
18,045
|
|
|
$
|
18,031
|
|
Parks and Resorts
|
4,894
|
|
|
4,379
|
|
|
13,748
|
|
|
12,588
|
|
||||
Studio Entertainment
|
2,393
|
|
|
2,847
|
|
|
6,947
|
|
|
7,630
|
|
||||
Consumer Products & Interactive Media
|
1,085
|
|
|
1,145
|
|
|
3,618
|
|
|
4,241
|
|
||||
|
$
|
14,238
|
|
|
$
|
14,277
|
|
|
$
|
42,358
|
|
|
$
|
42,490
|
|
Segment operating income
(1)
:
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
1,842
|
|
|
$
|
2,372
|
|
|
$
|
5,427
|
|
|
$
|
6,083
|
|
Parks and Resorts
|
1,168
|
|
|
994
|
|
|
3,028
|
|
|
2,599
|
|
||||
Studio Entertainment
|
639
|
|
|
766
|
|
|
2,137
|
|
|
2,322
|
|
||||
Consumer Products & Interactive Media
|
362
|
|
|
324
|
|
|
1,371
|
|
|
1,541
|
|
||||
|
$
|
4,011
|
|
|
$
|
4,456
|
|
|
$
|
11,963
|
|
|
$
|
12,545
|
|
(1)
|
Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled
$103 million
and
$131 million
for the quarters ended
July 1, 2017
and
July 2, 2016
, respectively, and
$391 million
and
$573 million
for the
nine months
ended
July 1, 2017
and
July 2, 2016
, respectively.
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Segment operating income
|
$
|
4,011
|
|
|
$
|
4,456
|
|
|
$
|
11,963
|
|
|
$
|
12,545
|
|
Corporate and unallocated shared expenses
|
(99
|
)
|
|
(159
|
)
|
|
(392
|
)
|
|
(457
|
)
|
||||
Restructuring and impairment charges
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(125
|
)
|
||||
Other expense
(1)
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
||||
Interest expense, net
|
(117
|
)
|
|
(70
|
)
|
|
(300
|
)
|
|
(161
|
)
|
||||
Vice Gain
|
—
|
|
|
—
|
|
|
—
|
|
|
332
|
|
||||
Infinity Charge
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
||||
Income before income taxes
|
$
|
3,618
|
|
|
$
|
4,183
|
|
|
$
|
11,094
|
|
|
$
|
11,987
|
|
(1)
|
During the quarter the Company recorded a charge, net of committed insurance recoveries, in connection with the settlement of litigation. The Company is pursuing additional insurance coverage for this matter.
|
(2)
|
In the prior-year
nine-month period
, the Company discontinued its Infinity console game business, which is reported in the Consumer Products & Interactive Media segment, and recorded a charge (Infinity Charge) primarily to write down inventory. The charge also included severance and other asset impairments. The charge was reported in “Cost of products” in the Condensed Consolidated Statement of Income.
|
3.
|
Acquisitions
|
4.
|
Borrowings
|
|
October 1,
2016 |
|
Borrowings
|
|
Payments
|
|
Other
Activity
|
|
July 1,
2017 |
||||||||||
Commercial paper with original maturities less than three months
(1)
|
$
|
777
|
|
|
$
|
—
|
|
|
$
|
(577
|
)
|
|
$
|
—
|
|
|
$
|
200
|
|
Commercial paper with original maturities greater than three months
|
744
|
|
|
4,745
|
|
|
(4,280
|
)
|
|
2
|
|
|
1,211
|
|
|||||
U.S. medium-term notes
|
16,827
|
|
|
3,995
|
|
|
(1,500
|
)
|
|
—
|
|
|
19,322
|
|
|||||
Asia International Theme Parks borrowings
|
1,087
|
|
|
13
|
|
|
—
|
|
|
16
|
|
|
1,116
|
|
|||||
Foreign currency denominated debt and other
(2)
|
735
|
|
|
45
|
|
|
(236
|
)
|
|
(206
|
)
|
|
338
|
|
|||||
Total
|
$
|
20,170
|
|
|
$
|
8,798
|
|
|
$
|
(6,593
|
)
|
|
$
|
(188
|
)
|
|
$
|
22,187
|
|
(1)
|
Borrowings and payments are reported net.
|
(2)
|
The other activity is primarily market value adjustments for debt with qualifying hedges.
|
|
Committed
Capacity
|
|
Capacity
Used
|
|
Unused
Capacity
|
||||||
Facility expiring March 2018
|
$
|
2,500
|
|
|
$
|
—
|
|
|
$
|
2,500
|
|
Facility expiring March 2019
|
2,250
|
|
|
—
|
|
|
2,250
|
|
|||
Facility expiring March 2021
|
2,250
|
|
|
—
|
|
|
2,250
|
|
|||
Total
|
$
|
7,000
|
|
|
$
|
—
|
|
|
$
|
7,000
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Interest expense
|
$
|
(134
|
)
|
|
$
|
(88
|
)
|
|
$
|
(370
|
)
|
|
$
|
(235
|
)
|
Interest and investment income
|
17
|
|
|
18
|
|
|
70
|
|
|
74
|
|
||||
Interest expense, net
|
$
|
(117
|
)
|
|
$
|
(70
|
)
|
|
$
|
(300
|
)
|
|
$
|
(161
|
)
|
5.
|
International Theme Parks
|
|
July 1,
2017 |
|
October 1, 2016
|
||||
Cash and cash equivalents
|
$
|
598
|
|
|
$
|
1,008
|
|
Other current assets
|
417
|
|
|
331
|
|
||
Total current assets
|
1,015
|
|
|
1,339
|
|
||
Parks, resorts and other property
|
9,263
|
|
|
9,270
|
|
||
Other assets
|
89
|
|
|
88
|
|
||
Total assets
(1)
|
$
|
10,367
|
|
|
$
|
10,697
|
|
|
|
|
|
||||
Current liabilities
|
$
|
1,305
|
|
|
$
|
1,499
|
|
Borrowings - long-term
|
1,116
|
|
|
1,087
|
|
||
Other long-term liabilities
|
318
|
|
|
256
|
|
||
Total liabilities
(1)
|
$
|
2,739
|
|
|
$
|
2,842
|
|
(1)
|
The total assets of the Asia International Theme Parks were
$7.8 billion
and
$8.2 billion
, which primarily consist of parks, resorts and other property of
$7.2 billion
and
$7.3 billion
at
July 1, 2017
and
October 1, 2016
, respectively. The total liabilities of the Asia International Theme Parks were
$2.0 billion
and
$2.2 billion
at
July 1, 2017
and
October 1, 2016
, respectively.
|
|
July 1,
2017 |
||
Revenues
|
$
|
2,306
|
|
Costs and expenses
|
(2,373
|
)
|
|
Equity in the loss of investees
|
(8
|
)
|
6.
|
Pension and Other Benefit Programs
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
||||||||||||||||||||||||||||
|
Quarter Ended
|
|
Nine Months Ended
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
July 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
|
July 1, 2017
|
|
July 2, 2016
|
||||||||||||||||
Service costs
|
$
|
90
|
|
|
$
|
80
|
|
|
$
|
273
|
|
|
$
|
239
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
8
|
|
Interest costs
|
113
|
|
|
115
|
|
|
336
|
|
|
344
|
|
|
14
|
|
|
16
|
|
|
42
|
|
|
46
|
|
||||||||
Expected return on plan assets
|
(219
|
)
|
|
(186
|
)
|
|
(656
|
)
|
|
(560
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
(37
|
)
|
|
(34
|
)
|
||||||||
Amortization of prior-year service costs
|
3
|
|
|
3
|
|
|
8
|
|
|
10
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Recognized net actuarial loss
|
101
|
|
|
61
|
|
|
303
|
|
|
182
|
|
|
4
|
|
|
2
|
|
|
12
|
|
|
6
|
|
||||||||
Net periodic benefit cost
|
$
|
88
|
|
|
$
|
73
|
|
|
$
|
264
|
|
|
$
|
215
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
26
|
|
|
$
|
25
|
|
7.
|
Earnings Per Share
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||
Shares (in millions):
|
|
|
|
|
|
|
|
||||
Weighted average number of common and common equivalent shares outstanding (basic)
|
1,562
|
|
|
1,621
|
|
|
1,578
|
|
|
1,636
|
|
Weighted average dilutive impact of Awards
|
10
|
|
|
10
|
|
|
10
|
|
|
11
|
|
Weighted average number of common and common equivalent shares outstanding (diluted)
|
1,572
|
|
|
1,631
|
|
|
1,588
|
|
|
1,647
|
|
Awards excluded from diluted earnings per share
|
8
|
|
|
4
|
|
|
11
|
|
|
6
|
|
8.
|
Equity
|
Per Share
|
|
Total Paid
|
|
Payment Timing
|
|
Related to Fiscal Period
|
$0.78
|
$1.2 billion
|
Fourth Quarter of Fiscal 2017
|
First Half 2017
|
|||
$0.78
|
$1.2 billion
|
Second Quarter of Fiscal 2017
|
Second Half 2016
|
|||
$0.71
|
$1.1 billion
|
Fourth Quarter of Fiscal 2016
|
First Half 2016
|
|||
$0.71
|
$1.2 billion
|
Second Quarter of Fiscal 2016
|
Second Half 2015
|
|
|
|
|
|
Unrecognized
Pension and Postretirement Medical Expense |
|
Foreign
Currency Translation and Other (1) |
|
AOCI
|
||||||||||
|
Market Value Adjustments
|
|
|||||||||||||||||
|
Investments
|
|
Cash Flow Hedges
|
|
|||||||||||||||
Balance at April 1, 2017
|
$
|
16
|
|
|
$
|
91
|
|
|
$
|
(3,525
|
)
|
|
$
|
(462
|
)
|
|
$
|
(3,880
|
)
|
Quarter Ended July 1, 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains (losses) arising during the period
|
(5
|
)
|
|
(66
|
)
|
|
—
|
|
|
45
|
|
|
(26
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
(26
|
)
|
|
68
|
|
|
—
|
|
|
42
|
|
|||||
Balance at July 1, 2017
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
(3,457
|
)
|
|
$
|
(417
|
)
|
|
$
|
(3,864
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at April 2, 2016
|
$
|
9
|
|
|
$
|
105
|
|
|
$
|
(2,415
|
)
|
|
$
|
(298
|
)
|
|
$
|
(2,599
|
)
|
Quarter Ended July 2, 2016:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains (losses) arising during the period
|
(7
|
)
|
|
(49
|
)
|
|
(13
|
)
|
|
(37
|
)
|
|
(106
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
(35
|
)
|
|
41
|
|
|
—
|
|
|
6
|
|
|||||
Balance at July 2, 2016
|
$
|
2
|
|
|
$
|
21
|
|
|
$
|
(2,387
|
)
|
|
$
|
(335
|
)
|
|
$
|
(2,699
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at October 1, 2016
|
$
|
26
|
|
|
$
|
(25
|
)
|
|
$
|
(3,651
|
)
|
|
$
|
(329
|
)
|
|
$
|
(3,979
|
)
|
Nine Months Ended July 1, 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains (losses) arising during the period
|
(11
|
)
|
|
126
|
|
|
(10
|
)
|
|
(88
|
)
|
|
17
|
|
|||||
Reclassifications of net (gains) losses to net income
|
(4
|
)
|
|
(102
|
)
|
|
204
|
|
|
—
|
|
|
98
|
|
|||||
Balance at July 1, 2017
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
(3,457
|
)
|
|
$
|
(417
|
)
|
|
$
|
(3,864
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at October 3, 2015
|
$
|
13
|
|
|
$
|
334
|
|
|
$
|
(2,497
|
)
|
|
$
|
(271
|
)
|
|
$
|
(2,421
|
)
|
Nine Months Ended July 2, 2016:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains (losses) arising during the period
|
(11
|
)
|
|
(170
|
)
|
|
(15
|
)
|
|
(64
|
)
|
|
(260
|
)
|
|||||
Reclassifications of net (gains) losses to net income
|
—
|
|
|
(143
|
)
|
|
125
|
|
|
—
|
|
|
(18
|
)
|
|||||
Balance at July 2, 2016
|
$
|
2
|
|
|
$
|
21
|
|
|
$
|
(2,387
|
)
|
|
$
|
(335
|
)
|
|
$
|
(2,699
|
)
|
(1)
|
Foreign Currency Translation and Other is net of an average
24%
estimated tax at
July 1, 2017
as the Company has not recognized deferred tax assets for some of our foreign entities.
|
Gains/(losses) in net income:
|
|
Affected line item in the
Condensed Consolidated
Statements of Income:
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||||
Investments, net
|
|
Interest expense, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Estimated tax
|
|
Income taxes
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
|
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges
|
|
Primarily revenue
|
|
41
|
|
|
56
|
|
|
162
|
|
|
228
|
|
||||
Estimated tax
|
|
Income taxes
|
|
(15
|
)
|
|
(21
|
)
|
|
(60
|
)
|
|
(85
|
)
|
||||
|
|
|
|
26
|
|
|
35
|
|
|
102
|
|
|
143
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension and postretirement
medical expense
|
|
Costs and expenses
|
|
(108
|
)
|
|
(65
|
)
|
|
(324
|
)
|
|
(199
|
)
|
||||
Estimated tax
|
|
Income taxes
|
|
40
|
|
|
24
|
|
|
120
|
|
|
74
|
|
||||
|
|
|
|
(68
|
)
|
|
(41
|
)
|
|
(204
|
)
|
|
(125
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications for the period
|
|
|
|
$
|
(42
|
)
|
|
$
|
(6
|
)
|
|
$
|
(98
|
)
|
|
$
|
18
|
|
9.
|
Equity-Based Compensation
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Stock options
|
$
|
20
|
|
|
$
|
26
|
|
|
$
|
62
|
|
|
$
|
72
|
|
RSUs
|
69
|
|
|
74
|
|
|
216
|
|
|
233
|
|
||||
Total equity-based compensation expense
(1)
|
$
|
89
|
|
|
$
|
100
|
|
|
$
|
278
|
|
|
$
|
305
|
|
Equity-based compensation expense capitalized during the period
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
61
|
|
|
$
|
52
|
|
(1)
|
Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs.
|
10.
|
Commitments and Contingencies
|
|
Fair Value Measurement at July 1, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Foreign exchange
|
—
|
|
|
497
|
|
|
—
|
|
|
497
|
|
||||
Other
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
(119
|
)
|
||||
Foreign exchange
|
—
|
|
|
(414
|
)
|
|
—
|
|
|
(414
|
)
|
||||
Other
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Total recorded at fair value
|
$
|
40
|
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
15
|
|
Fair value of borrowings
|
$
|
—
|
|
|
$
|
21,351
|
|
|
$
|
1,421
|
|
|
$
|
22,772
|
|
|
Fair Value Measurement at October 1, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
85
|
|
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
||||
Foreign exchange
|
—
|
|
|
596
|
|
|
—
|
|
|
596
|
|
||||
Other
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Foreign exchange
|
—
|
|
|
(510
|
)
|
|
—
|
|
|
(510
|
)
|
||||
Other
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Total recorded at fair value
|
$
|
85
|
|
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
292
|
|
Fair value of borrowings
|
$
|
—
|
|
|
$
|
19,500
|
|
|
$
|
1,579
|
|
|
$
|
21,079
|
|
|
As of July 1, 2017
|
||||||||||||||
|
Current
Assets
|
|
Other Assets
|
|
Other Current Liabilities
|
|
Other Long-
Term
Liabilities
|
||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
$
|
207
|
|
|
$
|
155
|
|
|
$
|
(120
|
)
|
|
$
|
(120
|
)
|
Interest rate
|
—
|
|
|
10
|
|
|
(100
|
)
|
|
—
|
|
||||
Other
|
2
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
135
|
|
|
—
|
|
|
(165
|
)
|
|
(9
|
)
|
||||
Interest rate
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
||||
Gross fair value of derivatives
|
344
|
|
|
166
|
|
|
(387
|
)
|
|
(148
|
)
|
||||
Counterparty netting
|
(252
|
)
|
|
(112
|
)
|
|
252
|
|
|
112
|
|
||||
Cash collateral (received)/paid
|
(45
|
)
|
|
(10
|
)
|
|
11
|
|
|
—
|
|
||||
Net derivative positions
|
$
|
47
|
|
|
$
|
44
|
|
|
$
|
(124
|
)
|
|
$
|
(36
|
)
|
|
As of October 1, 2016
|
||||||||||||||
|
Current
Assets
|
|
Other Assets
|
|
Other Current Liabilities
|
|
Other Long-
Term
Liabilities
|
||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
$
|
278
|
|
|
$
|
191
|
|
|
$
|
(209
|
)
|
|
$
|
(163
|
)
|
Interest rate
|
—
|
|
|
132
|
|
|
(13
|
)
|
|
—
|
|
||||
Other
|
3
|
|
|
3
|
|
|
(4
|
)
|
|
—
|
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
125
|
|
|
2
|
|
|
(133
|
)
|
|
(5
|
)
|
||||
Gross fair value of derivatives
|
406
|
|
|
328
|
|
|
(359
|
)
|
|
(168
|
)
|
||||
Counterparty netting
|
(241
|
)
|
|
(199
|
)
|
|
316
|
|
|
124
|
|
||||
Cash collateral (received)/paid
|
(77
|
)
|
|
(44
|
)
|
|
7
|
|
|
—
|
|
||||
Net derivative positions
|
$
|
88
|
|
|
$
|
85
|
|
|
$
|
(36
|
)
|
|
$
|
(44
|
)
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||
Gain (loss) on interest rate swaps
|
$
|
39
|
|
|
$
|
30
|
|
|
$
|
(203
|
)
|
|
$
|
79
|
|
Gain (loss) on hedged borrowings
|
(39
|
)
|
|
(30
|
)
|
|
203
|
|
|
(79
|
)
|
|
Costs and Expenses
|
|
Interest expense, net
|
|
Income Tax expense
|
||||||||||||||||||
Quarter Ended:
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||||||
Net gains (losses) on foreign currency denominated assets and liabilities
|
$
|
148
|
|
|
$
|
(75
|
)
|
|
$
|
(7
|
)
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
|
$
|
15
|
|
Net gains (losses) on foreign exchange risk management contracts not designated as hedges
|
(144
|
)
|
|
52
|
|
|
6
|
|
|
1
|
|
|
21
|
|
|
(19
|
)
|
||||||
Net gains (losses)
|
$
|
4
|
|
|
$
|
(23
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
25
|
|
|
$
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gains (losses) on foreign currency denominated assets and liabilities
|
$
|
25
|
|
|
$
|
(29
|
)
|
|
$
|
(3
|
)
|
|
$
|
(7
|
)
|
|
$
|
16
|
|
|
$
|
42
|
|
Net gains (losses) on foreign exchange risk management contracts not designated as hedges
|
(26
|
)
|
|
(32
|
)
|
|
2
|
|
|
5
|
|
|
4
|
|
|
(19
|
)
|
||||||
Net gains (losses)
|
$
|
(1
|
)
|
|
$
|
(61
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
20
|
|
|
$
|
23
|
|
•
|
During the quarter and nine months ended July 1, 2017, excess tax benefits of
$25 million
and
$116 million
, respectively, were recognized as a benefit in “Income taxes” in the Condensed Consolidated Statement of Income and classified as a source in operating activities in the Condensed Consolidated Statement of Cash Flows. The guidance required prospective adoption for the statement of income and allowed for either prospective or retrospective adoption for the statement of cash flows. The Company elected to prospectively adopt the effect to the statement of cash flows and accordingly, did not restate the Condensed Consolidated Statements of Cash Flows for the quarter and
nine months
ended
July 2, 2016
.
|
•
|
During the quarter and nine months ended July 1, 2017, cash paid for shares withheld to satisfy employee taxes of
$5 million
and
$192 million
, respectively, were classified as a use in financing activities in the Condensed Consolidated Statement of Cash Flows. The guidance required retrospective adoption; accordingly, for the quarter and nine months ended July 2, 2016, uses of
$6 million
and
$229 million
, respectively, were reclassified from operating activities to financing activities in the Condensed Consolidated Statements of Cash Flows.
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions, except per share data)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse)
|
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse)
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Services
|
$
|
12,097
|
|
|
$
|
12,113
|
|
|
—
|
%
|
|
$
|
35,990
|
|
|
$
|
35,906
|
|
|
—
|
%
|
Products
|
2,141
|
|
|
2,164
|
|
|
(1)
|
%
|
|
6,368
|
|
|
6,584
|
|
|
(3)
|
%
|
||||
Total revenues
|
14,238
|
|
|
14,277
|
|
|
—
|
%
|
|
42,358
|
|
|
42,490
|
|
|
—
|
%
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of services (exclusive of depreciation and amortization)
|
(6,469
|
)
|
|
(5,946
|
)
|
|
(9)
|
%
|
|
(19,328
|
)
|
|
(18,568
|
)
|
|
(4)
|
%
|
||||
Cost of products (exclusive of depreciation and amortization)
|
(1,248
|
)
|
|
(1,255
|
)
|
|
1
|
%
|
|
(3,764
|
)
|
|
(4,120
|
)
|
|
9
|
%
|
||||
Selling, general, administrative and other
|
(2,022
|
)
|
|
(2,305
|
)
|
|
12
|
%
|
|
(5,948
|
)
|
|
(6,467
|
)
|
|
8
|
%
|
||||
Depreciation and amortization
|
(711
|
)
|
|
(626
|
)
|
|
(14)
|
%
|
|
(2,074
|
)
|
|
(1,838
|
)
|
|
(13)
|
%
|
||||
Total costs and expenses
|
(10,450
|
)
|
|
(10,132
|
)
|
|
(3)
|
%
|
|
(31,114
|
)
|
|
(30,993
|
)
|
|
—
|
%
|
||||
Restructuring and impairment charges
|
—
|
|
|
(44
|
)
|
|
nm
|
|
|
—
|
|
|
(125
|
)
|
|
nm
|
|
||||
Other expense
|
(177
|
)
|
|
—
|
|
|
nm
|
|
|
(177
|
)
|
|
—
|
|
|
nm
|
|
||||
Interest expense, net
|
(117
|
)
|
|
(70
|
)
|
|
(67)
|
%
|
|
(300
|
)
|
|
(161
|
)
|
|
(86)
|
%
|
||||
Equity in the income of investees
|
124
|
|
|
152
|
|
|
(18)
|
%
|
|
327
|
|
|
776
|
|
|
(58)
|
%
|
||||
Income before income taxes
|
3,618
|
|
|
4,183
|
|
|
(14)
|
%
|
|
11,094
|
|
|
11,987
|
|
|
(7)
|
%
|
||||
Income taxes
|
(1,144
|
)
|
|
(1,471
|
)
|
|
22
|
%
|
|
(3,593
|
)
|
|
(4,089
|
)
|
|
12
|
%
|
||||
Net income
|
2,474
|
|
|
2,712
|
|
|
(9)
|
%
|
|
7,501
|
|
|
7,898
|
|
|
(5)
|
%
|
||||
Less: Net income attributable to noncontrolling interests
|
(108
|
)
|
|
(115
|
)
|
|
6
|
%
|
|
(268
|
)
|
|
(278
|
)
|
|
4
|
%
|
||||
Net income attributable to Disney
|
$
|
2,366
|
|
|
$
|
2,597
|
|
|
(9)
|
%
|
|
$
|
7,233
|
|
|
$
|
7,620
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share attributable to Disney
|
$
|
1.51
|
|
|
$
|
1.59
|
|
|
(5)
|
%
|
|
$
|
4.55
|
|
|
$
|
4.63
|
|
|
(2)
|
%
|
|
Quarter Ended
|
|
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
% Change
Better/(Worse)
|
|||||
Interest expense
|
$
|
(134
|
)
|
|
$
|
(88
|
)
|
|
(52)
|
%
|
Interest and investment income
|
17
|
|
|
18
|
|
|
(6)
|
%
|
||
Interest expense, net
|
$
|
(117
|
)
|
|
$
|
(70
|
)
|
|
(67)
|
%
|
|
Quarter Ended
|
|
|
||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
31.6
|
%
|
|
35.2
|
%
|
|
3.6
|
|
ppt
|
|
Quarter Ended
|
|
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
% Change
Better/(Worse)
|
|||||
Net income attributable to noncontrolling interests
|
$
|
108
|
|
|
$
|
115
|
|
|
6
|
%
|
|
Nine Months Ended
|
|
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
% Change
Better/(Worse)
|
|||||
Interest expense
|
$
|
(370
|
)
|
|
$
|
(235
|
)
|
|
(57)
|
%
|
Interest and investment income
|
70
|
|
|
74
|
|
|
(5)
|
%
|
||
Interest expense, net
|
$
|
(300
|
)
|
|
$
|
(161
|
)
|
|
(86)
|
%
|
|
Nine Months Ended
|
|
|
||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
32.4
|
%
|
|
34.1
|
%
|
|
1.7
|
|
ppt
|
|
Nine Months Ended
|
|
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
% Change
Better/(Worse)
|
|||||
Net income attributable to noncontrolling interests
|
$
|
268
|
|
|
$
|
278
|
|
|
4
|
%
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Media Networks
|
$
|
5,866
|
|
|
$
|
5,906
|
|
|
(1)
|
%
|
|
$
|
18,045
|
|
|
$
|
18,031
|
|
|
—
|
%
|
Parks and Resorts
|
4,894
|
|
|
4,379
|
|
|
12
|
%
|
|
13,748
|
|
|
12,588
|
|
|
9
|
%
|
||||
Studio Entertainment
|
2,393
|
|
|
2,847
|
|
|
(16)
|
%
|
|
6,947
|
|
|
7,630
|
|
|
(9)
|
%
|
||||
Consumer Products &
Interactive Media
|
1,085
|
|
|
1,145
|
|
|
(5)
|
%
|
|
3,618
|
|
|
4,241
|
|
|
(15)
|
%
|
||||
|
$
|
14,238
|
|
|
$
|
14,277
|
|
|
—
|
%
|
|
$
|
42,358
|
|
|
$
|
42,490
|
|
|
—
|
%
|
Segment operating income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Media Networks
|
$
|
1,842
|
|
|
$
|
2,372
|
|
|
(22)
|
%
|
|
$
|
5,427
|
|
|
$
|
6,083
|
|
|
(11)
|
%
|
Parks and Resorts
|
1,168
|
|
|
994
|
|
|
18
|
%
|
|
3,028
|
|
|
2,599
|
|
|
17
|
%
|
||||
Studio Entertainment
|
639
|
|
|
766
|
|
|
(17)
|
%
|
|
2,137
|
|
|
2,322
|
|
|
(8)
|
%
|
||||
Consumer Products &
Interactive Media
|
362
|
|
|
324
|
|
|
12
|
%
|
|
1,371
|
|
|
1,541
|
|
|
(11)
|
%
|
||||
|
$
|
4,011
|
|
|
$
|
4,456
|
|
|
(10)
|
%
|
|
$
|
11,963
|
|
|
$
|
12,545
|
|
|
(5)
|
%
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
||||||||||
Segment operating income
|
$
|
4,011
|
|
|
$
|
4,456
|
|
|
(10)
|
%
|
|
$
|
11,963
|
|
|
$
|
12,545
|
|
|
(5)
|
%
|
Corporate and unallocated shared expenses
|
(99
|
)
|
|
(159
|
)
|
|
38
|
%
|
|
(392
|
)
|
|
(457
|
)
|
|
14
|
%
|
||||
Restructuring and impairment charges
|
—
|
|
|
(44
|
)
|
|
nm
|
|
|
—
|
|
|
(125
|
)
|
|
nm
|
|
||||
Other expense
(1)
|
(177
|
)
|
|
—
|
|
|
nm
|
|
|
(177
|
)
|
|
—
|
|
|
nm
|
|
||||
Interest expense, net
|
(117
|
)
|
|
(70
|
)
|
|
(67)
|
%
|
|
(300
|
)
|
|
(161
|
)
|
|
(86)
|
%
|
||||
Vice Gain
(2)
|
—
|
|
|
—
|
|
|
nm
|
|
|
—
|
|
|
332
|
|
|
nm
|
|
||||
Infinity Charge
(3)
|
—
|
|
|
—
|
|
|
nm
|
|
|
—
|
|
|
(147
|
)
|
|
nm
|
|
||||
Income before income taxes
|
$
|
3,618
|
|
|
$
|
4,183
|
|
|
(14)
|
%
|
|
$
|
11,094
|
|
|
$
|
11,987
|
|
|
(7)
|
%
|
(1)
|
During the quarter, the Company recorded a charge, net of committed insurance recoveries, in connection with the settlement of litigation. The Company is pursuing additional insurance coverage for this matter.
|
(2)
|
See Note 3 to the Condensed Consolidated Financial Statements for a discussion of the Vice Gain.
|
(3)
|
See Note 2 to the Condensed Consolidated Financial Statements for a discussion of the Infinity Charge.
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
||||||||||
Media Networks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cable Networks
|
$
|
34
|
|
|
$
|
37
|
|
|
8
|
%
|
|
$
|
105
|
|
|
$
|
111
|
|
|
5
|
%
|
Broadcasting
|
21
|
|
|
23
|
|
|
9
|
%
|
|
67
|
|
|
68
|
|
|
1
|
%
|
||||
Total Media Networks
|
55
|
|
|
60
|
|
|
8
|
%
|
|
172
|
|
|
179
|
|
|
4
|
%
|
||||
Parks and Resorts
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Domestic
|
333
|
|
|
313
|
|
|
(6)
|
%
|
|
983
|
|
|
949
|
|
|
(4)
|
%
|
||||
International
|
187
|
|
|
113
|
|
|
(65)
|
%
|
|
500
|
|
|
283
|
|
|
(77)
|
%
|
||||
Total Parks and Resorts
|
520
|
|
|
426
|
|
|
(22)
|
%
|
|
1,483
|
|
|
1,232
|
|
|
(20)
|
%
|
||||
Studio Entertainment
|
13
|
|
|
12
|
|
|
(8)
|
%
|
|
36
|
|
|
36
|
|
|
—
|
%
|
||||
Consumer Products & Interactive Media
|
15
|
|
|
16
|
|
|
6
|
%
|
|
46
|
|
|
46
|
|
|
—
|
%
|
||||
Corporate
|
60
|
|
|
61
|
|
|
2
|
%
|
|
189
|
|
|
185
|
|
|
(2)
|
%
|
||||
Total depreciation expense
|
$
|
663
|
|
|
$
|
575
|
|
|
(15)
|
%
|
|
$
|
1,926
|
|
|
$
|
1,678
|
|
|
(15)
|
%
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
||||||||||
Media Networks
|
$
|
3
|
|
|
$
|
4
|
|
|
25
|
%
|
|
$
|
9
|
|
|
$
|
14
|
|
|
36
|
%
|
Parks and Resorts
|
1
|
|
|
1
|
|
|
—
|
%
|
|
3
|
|
|
3
|
|
|
—
|
%
|
||||
Studio Entertainment
|
16
|
|
|
20
|
|
|
20
|
%
|
|
48
|
|
|
59
|
|
|
19
|
%
|
||||
Consumer Products & Interactive Media
|
28
|
|
|
26
|
|
|
(8)
|
%
|
|
88
|
|
|
84
|
|
|
(5)
|
%
|
||||
Total amortization of intangible assets
|
$
|
48
|
|
|
$
|
51
|
|
|
6
|
%
|
|
$
|
148
|
|
|
$
|
160
|
|
|
8
|
%
|
|
Quarter Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
3,176
|
|
|
$
|
3,112
|
|
|
2
|
%
|
Advertising
|
2,006
|
|
|
2,140
|
|
|
(6)
|
%
|
||
TV/SVOD distribution and other
|
684
|
|
|
654
|
|
|
5
|
%
|
||
Total revenues
|
5,866
|
|
|
5,906
|
|
|
(1)
|
%
|
||
Operating expenses
|
(3,500
|
)
|
|
(3,002
|
)
|
|
(17)
|
%
|
||
Selling, general, administrative and other
|
(593
|
)
|
|
(622
|
)
|
|
5
|
%
|
||
Depreciation and amortization
|
(58
|
)
|
|
(64
|
)
|
|
9
|
%
|
||
Equity in the income of investees
|
127
|
|
|
154
|
|
|
(18)
|
%
|
||
Operating Income
|
$
|
1,842
|
|
|
$
|
2,372
|
|
|
(22)
|
%
|
|
Quarter Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
4,086
|
|
|
$
|
4,200
|
|
|
(3)
|
%
|
Broadcasting
|
1,780
|
|
|
1,706
|
|
|
4
|
%
|
||
|
$
|
5,866
|
|
|
$
|
5,906
|
|
|
(1)
|
%
|
Segment operating income
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
1,462
|
|
|
$
|
1,893
|
|
|
(23)
|
%
|
Broadcasting
|
253
|
|
|
325
|
|
|
(22)
|
%
|
||
Equity in the income of investees
|
127
|
|
|
154
|
|
|
(18)
|
%
|
||
|
$
|
1,842
|
|
|
$
|
2,372
|
|
|
(22)
|
%
|
|
Quarter Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Domestic
|
$
|
3,935
|
|
|
$
|
3,697
|
|
|
6
|
%
|
International
|
959
|
|
|
682
|
|
|
41
|
%
|
||
Total revenues
|
4,894
|
|
|
4,379
|
|
|
12
|
%
|
||
Operating expenses
|
(2,687
|
)
|
|
(2,439
|
)
|
|
(10)
|
%
|
||
Selling, general, administrative and other
|
(515
|
)
|
|
(519
|
)
|
|
1
|
%
|
||
Depreciation and amortization
|
(521
|
)
|
|
(427
|
)
|
|
(22)
|
%
|
||
Equity in the loss of investees
|
(3
|
)
|
|
—
|
|
|
nm
|
|||
Operating Income
|
$
|
1,168
|
|
|
$
|
994
|
|
|
18
|
%
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
||||||||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/(decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
8
|
%
|
|
(4)
|
%
|
|
72
|
%
|
|
1
|
%
|
|
22
|
%
|
|
(3)
|
%
|
||||||
Per Capita Guest Spending
|
2
|
%
|
|
8
|
%
|
|
(1)
|
%
|
|
4
|
%
|
|
(2)
|
%
|
|
7
|
%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
88
|
%
|
|
90
|
%
|
|
84
|
%
|
|
81
|
%
|
|
87
|
%
|
|
88
|
%
|
||||||
Available Room Nights (in thousands)
|
2,533
|
|
|
2,597
|
|
|
772
|
|
|
635
|
|
|
3,305
|
|
|
3,232
|
|
||||||
Per Room Guest Spending
|
|
$330
|
|
|
|
$306
|
|
|
|
$311
|
|
|
|
$286
|
|
|
|
$326
|
|
|
|
$303
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate, as well as food, beverage and merchandise sales at the hotels. Hotel statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal 2016
third
quarter average foreign exchange rate.
|
|
Quarter Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
1,044
|
|
|
$
|
1,510
|
|
|
(31)
|
%
|
Home entertainment
|
488
|
|
|
610
|
|
|
(20)
|
%
|
||
TV/SVOD distribution and other
|
861
|
|
|
727
|
|
|
18
|
%
|
||
Total revenues
|
2,393
|
|
|
2,847
|
|
|
(16)
|
%
|
||
Operating expenses
|
(1,099
|
)
|
|
(1,259
|
)
|
|
13
|
%
|
||
Selling, general, administrative and other
|
(626
|
)
|
|
(790
|
)
|
|
21
|
%
|
||
Depreciation and amortization
|
(29
|
)
|
|
(32
|
)
|
|
9
|
%
|
||
Operating Income
|
$
|
639
|
|
|
$
|
766
|
|
|
(17)
|
%
|
|
Quarter Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Licensing, publishing and games
|
$
|
746
|
|
|
$
|
776
|
|
|
(4)
|
%
|
Retail and other
|
339
|
|
|
369
|
|
|
(8)
|
%
|
||
Total revenues
|
1,085
|
|
|
1,145
|
|
|
(5)
|
%
|
||
Operating expenses
|
(431
|
)
|
|
(501
|
)
|
|
14
|
%
|
||
Selling, general, administrative and other
|
(249
|
)
|
|
(278
|
)
|
|
10
|
%
|
||
Depreciation and amortization
|
(43
|
)
|
|
(42
|
)
|
|
(2)
|
%
|
||
Operating Income
|
$
|
362
|
|
|
$
|
324
|
|
|
12
|
%
|
|
Nine Months Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Affiliate Fees
|
$
|
9,479
|
|
|
$
|
9,187
|
|
|
3
|
%
|
Advertising
|
6,466
|
|
|
6,706
|
|
|
(4)
|
%
|
||
TV/SVOD distribution and other
|
2,100
|
|
|
2,138
|
|
|
(2)
|
%
|
||
Total revenues
|
18,045
|
|
|
18,031
|
|
|
—
|
%
|
||
Operating expenses
|
(10,899
|
)
|
|
(10,261
|
)
|
|
(6)
|
%
|
||
Selling, general, administrative and other
|
(1,872
|
)
|
|
(1,941
|
)
|
|
4
|
%
|
||
Depreciation and amortization
|
(181
|
)
|
|
(193
|
)
|
|
6
|
%
|
||
Equity in the income of investees
|
334
|
|
|
447
|
|
|
(25)
|
%
|
||
Operating Income
|
$
|
5,427
|
|
|
$
|
6,083
|
|
|
(11)
|
%
|
|
Nine Months Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
12,576
|
|
|
$
|
12,676
|
|
|
(1)
|
%
|
Broadcasting
|
5,469
|
|
|
5,355
|
|
|
2
|
%
|
||
|
$
|
18,045
|
|
|
$
|
18,031
|
|
|
—
|
%
|
Segment operating income
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
4,117
|
|
|
$
|
4,714
|
|
|
(13)
|
%
|
Broadcasting
|
976
|
|
|
922
|
|
|
6
|
%
|
||
Equity in the income of investees
|
334
|
|
|
447
|
|
|
(25)
|
%
|
||
|
$
|
5,427
|
|
|
$
|
6,083
|
|
|
(11)
|
%
|
|
Nine Months Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Domestic
|
$
|
11,231
|
|
|
$
|
10,792
|
|
|
4
|
%
|
International
|
2,517
|
|
|
1,796
|
|
|
40
|
%
|
||
Total revenues
|
13,748
|
|
|
12,588
|
|
|
9
|
%
|
||
Operating expenses
|
(7,817
|
)
|
|
(7,341
|
)
|
|
(6)
|
%
|
||
Selling, general, administrative and other
|
(1,409
|
)
|
|
(1,413
|
)
|
|
—
|
%
|
||
Depreciation and amortization
|
(1,486
|
)
|
|
(1,235
|
)
|
|
(20)
|
%
|
||
Equity in the loss of investees
|
(8
|
)
|
|
—
|
|
|
nm
|
|
||
Operating Income
|
$
|
3,028
|
|
|
$
|
2,599
|
|
|
17
|
%
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
|
July 1,
2017 |
|
July 2,
2016 |
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/(decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
2
|
%
|
|
2
|
%
|
|
64
|
%
|
|
(4)
|
%
|
|
15
|
%
|
|
1
|
%
|
||||||
Per Capita Guest Spending
|
3
|
%
|
|
7
|
%
|
|
(1)
|
%
|
|
4
|
%
|
|
(1)
|
%
|
|
7
|
%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
89
|
%
|
|
90
|
%
|
|
82
|
%
|
|
79
|
%
|
|
87
|
%
|
|
88
|
%
|
||||||
Available Room Nights (in thousands)
|
7,663
|
|
|
7,788
|
|
|
2,222
|
|
|
1,869
|
|
|
9,885
|
|
|
9,657
|
|
||||||
Per Room Guest Spending
|
|
$321
|
|
|
|
$309
|
|
|
|
$279
|
|
|
|
$263
|
|
|
|
$312
|
|
|
|
$301
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate, as well as food, beverage and merchandise sales at the hotels. Hotel statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal
2016
nine
-month average foreign exchange rate.
|
|
Nine Months Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
2,715
|
|
|
$
|
3,259
|
|
|
(17)
|
%
|
Home entertainment
|
1,454
|
|
|
1,728
|
|
|
(16)
|
%
|
||
TV/SVOD distribution and other
|
2,778
|
|
|
2,643
|
|
|
5
|
%
|
||
Total revenues
|
6,947
|
|
|
7,630
|
|
|
(9)
|
%
|
||
Operating expenses
|
(2,970
|
)
|
|
(3,200
|
)
|
|
7
|
%
|
||
Selling, general, administrative and other
|
(1,756
|
)
|
|
(2,013
|
)
|
|
13
|
%
|
||
Depreciation and amortization
|
(84
|
)
|
|
(95
|
)
|
|
12
|
%
|
||
Operating Income
|
$
|
2,137
|
|
|
$
|
2,322
|
|
|
(8)
|
%
|
|
Nine Months Ended
|
|
% Change
|
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|||||
Revenues
|
|
|
|
|
|
|||||
Licensing, publishing and games
|
$
|
2,409
|
|
|
$
|
2,905
|
|
|
(17)
|
%
|
Retail and other
|
1,209
|
|
|
1,336
|
|
|
(10)
|
%
|
||
Total revenues
|
3,618
|
|
|
4,241
|
|
|
(15)
|
%
|
||
Operating expenses
|
(1,406
|
)
|
|
(1,739
|
)
|
|
19
|
%
|
||
Selling, general, administrative and other
|
(708
|
)
|
|
(831
|
)
|
|
15
|
%
|
||
Depreciation and amortization
|
(134
|
)
|
|
(130
|
)
|
|
(3)
|
%
|
||
Equity in the income of investees
|
1
|
|
|
—
|
|
|
nm
|
|
||
Operating Income
|
$
|
1,371
|
|
|
$
|
1,541
|
|
|
(11)
|
%
|
|
Quarter Ended
|
|
% Change
|
|
Nine Months Ended
|
|
% Change
|
||||||||||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
|
July 1,
2017 |
|
July 2,
2016 |
|
Better/
(Worse) |
||||||||||
Corporate and unallocated shared expenses
|
$
|
(99
|
)
|
|
$
|
(159
|
)
|
|
38
|
%
|
|
$
|
(392
|
)
|
|
$
|
(457
|
)
|
|
14
|
%
|
|
Nine Months Ended
|
|
% Change
Better/ (Worse) |
|||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
|
||||||
Cash provided by operations
|
$
|
8,831
|
|
|
$
|
9,615
|
|
|
(8)
|
%
|
Cash used in investing activities
|
(3,290
|
)
|
|
(4,226
|
)
|
|
22
|
%
|
||
Cash used in financing activities
|
(5,792
|
)
|
|
(4,320
|
)
|
|
(34)
|
%
|
||
Impact of exchange rates on cash and cash equivalents
|
(23
|
)
|
|
(111
|
)
|
|
79
|
%
|
||
Change in cash and cash equivalents
|
$
|
(274
|
)
|
|
$
|
958
|
|
|
nm
|
|
|
Nine Months Ended
|
||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
||||
Beginning balances:
|
|
|
|
||||
Production and programming assets
|
$
|
7,547
|
|
|
$
|
7,353
|
|
Programming liabilities
|
(1,063
|
)
|
|
(989
|
)
|
||
|
6,484
|
|
|
6,364
|
|
||
Spending:
|
|
|
|
||||
Television program licenses and rights
|
6,025
|
|
|
5,225
|
|
||
Film and television production
|
3,863
|
|
|
3,578
|
|
||
|
9,888
|
|
|
8,803
|
|
||
Amortization:
|
|
|
|
||||
Television program licenses and rights
|
(5,986
|
)
|
|
(5,055
|
)
|
||
Film and television production
|
(3,157
|
)
|
|
(3,524
|
)
|
||
|
(9,143
|
)
|
|
(8,579
|
)
|
||
|
|
|
|
||||
Change in film and television production and programming costs
|
745
|
|
|
224
|
|
||
Other non-cash activity
|
19
|
|
|
20
|
|
||
Ending balances:
|
|
|
|
||||
Production and programming assets
|
8,012
|
|
|
7,322
|
|
||
Programming liabilities
|
(764
|
)
|
|
(714
|
)
|
||
|
$
|
7,248
|
|
|
$
|
6,608
|
|
|
Nine Months Ended
|
||||||
(in millions)
|
July 1,
2017 |
|
July 2,
2016 |
||||
Media Networks
|
|
|
|
||||
Cable Networks
|
$
|
70
|
|
|
$
|
55
|
|
Broadcasting
|
44
|
|
|
55
|
|
||
Total Media Networks
|
114
|
|
|
110
|
|
||
Parks and Resorts
|
|
|
|
||||
Domestic
|
1,682
|
|
|
1,619
|
|
||
International
|
721
|
|
|
1,689
|
|
||
Total Parks and Resorts
|
2,403
|
|
|
3,308
|
|
||
Studio Entertainment
|
64
|
|
|
67
|
|
||
Consumer Products & Interactive Media
|
17
|
|
|
33
|
|
||
Corporate
|
130
|
|
|
173
|
|
||
|
$
|
2,728
|
|
|
$
|
3,691
|
|
Period
|
|
Total
Number of
Shares
Purchased
(1)
|
|
Weighted
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under the
Plans or
Programs
(2)
|
||||
April 2, 2017 - April 30, 2017
|
|
5,600,055
|
|
|
$
|
113.49
|
|
|
5,577,399
|
|
|
242 million
|
May 1, 2017 - May 31, 2017
|
|
9,372,819
|
|
|
109.65
|
|
|
9,345,000
|
|
|
233 million
|
|
June 1, 2017 - July 1, 2017
|
|
7,423,354
|
|
|
106.15
|
|
|
7,398,800
|
|
|
226 million
|
|
Total
|
|
22,396,228
|
|
|
109.45
|
|
|
22,321,199
|
|
|
226 million
|
(1)
|
75,029 shares were purchased on the open market to provide shares to participants in the Walt Disney Investment Plan (WDIP). These purchases were not made pursuant to a publicly announced repurchase plan or program.
|
(2)
|
Under a share repurchase program implemented effective June 10, 1998, the Company is authorized to repurchase shares of its common stock. On January 30, 2015, the Company’s Board of Directors increased the share repurchase authorization to a total of 400 million shares as of that date. The repurchase program does not have an expiration date.
|
|
|
|
|
|
THE WALT DISNEY COMPANY
|
|
|
(Registrant)
|
|
|
|
By:
|
|
/s/ CHRISTINE M. MCCARTHY
|
|
|
Christine M. McCarthy,
Senior Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
Number and Description of Exhibit
(Numbers Coincide with Item 601 of Regulation S-K)
|
|
Document Incorporated by Reference from a Previous Filing or Filed Herewith, as Indicated below
|
||
|
|
|
|
|
12.1
|
|
Ratio of Earnings to Fixed Charges
|
|
Filed herewith
|
|
|
|
||
31(a)
|
|
Rule 13a-14(a) Certification of Chief Executive Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
||
31(b)
|
|
Rule 13a-14(a) Certification of Chief Financial Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
||
32(a)
|
|
Section 1350 Certification of Chief Executive Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Furnished
|
|
|
|
||
32(b)
|
|
Section 1350 Certification of Chief Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Furnished
|
|
|
|
||
101
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 1, 2017 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Equity and (vi) related notes
|
|
Filed
|
*
|
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
|
1 Year Walt Disney Chart |
1 Month Walt Disney Chart |
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