May7,2024
THEWALTDISNEYCOMPANYREPORTS
SECONDQUARTERANDSIXMONTHSEARNINGSFORFISCAL2024
BURBANK,Calif.–TheWaltDisneyCompanytodayreportedearningsforitssecondquarterended
March30,2024.
FinancialResultsfortheQuarter:
• Revenuesforthequarterincreasedto$22.1billionfrom$21.8billionintheprior-yearquarter.
• Dilutedearningspershare(EPS)wasalossof$0.01forthecurrentquartercomparedtoincomeof
$0.69intheprior-yearquarter.DilutedEPSdecreasedtoanominallossduetogoodwillimpairments
inthequarter,partiallyoffsetbyhigheroperatingincomeatEntertainmentandExperiences.
• Excludingcertainitems
(1)
,dilutedEPSforthequarterincreasedto$1.21from$0.93intheprior-year
quarter.
KeyPoints:
• Inthesecondfiscalquarterof2024,weachievedstrongdoubledigitpercentagegrowthinadjusted
EPS
(1)
,andmetorexceededourfinancialguidanceforthequarter.
• Asaresultofoutperformanceinthesecondquarter,ournewfullyearadjustedEPS
(1)
growthtarget
isnow25%.
• Weremainontracktogenerateapproximately$14billionofcashprovidedbyoperationsandover
$8billionoffreecashflow
(1)
thisfiscalyear.
• Werepurchased$1billionworthofsharesinthesecondquarterandlookforwardtocontinuingto
returncapitaltoshareholders.
• TheEntertainmentDirect-to-Consumerbusinesswasprofitableinthesecondquarter.Whileweare
expectingsofterEntertainmentDTCresultsinQ3tobedrivenbyDisney+Hotstar,wecontinueto
expectourcombinedstreamingbusinessestobeprofitableinthefourthquarter,andtobea
meaningfulfuturegrowthdriverforthecompany,withfurtherimprovementsinprofitabilityinfiscal
2025.
• Disney+Coresubscribersincreasedbymorethan6millioninthesecondquarter,andDisney+Core
ARPUincreasedsequentiallyby44cents.
• Sportsoperatingincomedeclinedslightlyversustheprioryear,reflectingthetimingimpactof
CollegeFootballPlayoffgamesatESPN,offsetbyimprovedresultsatStarIndia.
• TheExperiencesbusinesswasalsoagrowthdriverinthesecondquarter,withrevenuegrowthof
10%,segmentoperatingincomegrowthof12%,andmarginexpansionof60basispointsversusthe
prioryear.Althoughthethirdquarter’ssegmentoperatingincomeisexpectedtocomeinroughly
comparabletotheprioryear,wecontinuetoexpectrobustoperatingincomegrowthatExperiences
forthefullyear.
FORIMMEDIATERELEASE
1
(1)
DilutedEPSexcludingcertainitems(alsoreferredtohereinasadjustedEPS)andfreecashflowarenon-GAAPfinancialmeasures.The
mostcomparableGAAPmeasuresaredilutedEPSandcashprovidedbyoperations,respectively.Seethediscussiononpages17
through21forhowwedefineandcalculatethesemeasuresandaquantitativereconciliationofhistoricalmeasuresthereofandthe
forward-lookingmeasureoffreecashflowtothemostdirectlycomparableGAAPmeasuresandwhytheCompanyisnotprovidinga
forward-lookingquantitativereconciliationofdilutedEPSexcludingcertainitemstothemostcomparableGAAPmeasure.
MessageFromOurCEO:
“OurstrongperformanceinQ2,withadjustedEPS
(1)
up30%comparedtotheprioryear,
demonstrateswearedeliveringonourstrategicprioritiesandbuildingforthefuture,”saidRobertA.
Iger,ChiefExecutiveOfficer,TheWaltDisneyCompany.“Ourresultsweredriveninlargepartbyour
Experiencessegmentaswellasourstreamingbusiness.Importantly,entertainmentstreamingwas
profitableforthequarter,andweremainontracktoachieveprofitabilityinourcombinedstreaming
businessesinQ4.
“Lookingatourcompanyasawhole,it’sclearthattheturnaroundandgrowthinitiativeswesetin
motionlastyearhavecontinuedtoyieldpositiveresults.Wehaveanumberofhighlyanticipated
theatricalreleasesarrivingoverthenextfewmonths;ourtelevisionshowsareresonatingwithaudiences
andcriticsalike;ESPNcontinuestobreakratingsrecordsaswefurtheritsevolutionintothepreeminent
digitalsportsplatform;andweareturbocharginggrowthinourExperiencesbusinesswithanumberof
near-andlong-termstrategicinvestments.”
SUMMARIZEDFINANCIALRESULTS
Thefollowingtablesummarizessecondquarterresultsforfiscal2024and2023:
QuarterEnded SixMonthsEnded
($inmillions,exceptpershareamounts)
March30,
2024
April1,
2023 Change
March30,
2024
April1,
2023 Change
Revenues $ 22,083 $ 21,815 1% $ 45,632 $ 45,327 1%
Incomebeforeincometaxes $ 657 $ 2,123 (69)% $ 3,528 $ 3,896 (9)%
Totalsegmentoperatingincome
(1)
$ 3,845 $ 3,285 17% $ 7,721 $ 6,328 22%
DilutedEPS $ (0.01) $ 0.69 nm $ 1.03 $ 1.39 (26)%
DilutedEPSexcludingcertain
items
(1)
$ 1.21 $ 0.93 30% $ 2.44 $ 1.91 28%
Cashprovidedbyoperations $ 3,666 $ 3,236 13% $ 5,851 $ 2,262 >100%
Freecashflow
(1)
$ 2,407 $ 1,987 21% $ 3,293 $ (168) nm
(1)
Totalsegmentoperatingincome,dilutedEPSexcludingcertainitemsandfreecashflowarenon-GAAPfinancial
measures.ThemostcomparableGAAPmeasuresareincomebeforeincometaxes,dilutedEPSandcashprovidedby
operations,respectively.Seethediscussiononpages17through21forhowwedefineandcalculatethesemeasures
andareconciliationthereoftothemostdirectlycomparableGAAPmeasures.
2
SUMMARIZEDSEGMENTFINANCIALRESULTS
Thefollowingtablesummarizessecondquartersegmentrevenueandoperatingincomeforfiscal
2024and2023:
QuarterEnded SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023 Change
March30,
2024
April1,
2023 Change
Revenues:
Entertainment
$ 9,796 $ 10,309 (5)% $ 19,777 $ 20,984 (6)%
Sports
4,312 4,226 2% 9,147 8,866 3%
Experiences
8,393 7,646 10% 17,525 16,191 8%
Eliminations
(2)
(418) (366) (14)% (817) (714) (14)%
Totalrevenues
$ 22,083 $ 21,815 1% $ 45,632 $ 45,327 1%
Segmentoperatingincome(loss):
Entertainment
$ 781 $ 455 72% $ 1,655 $ 800 >100%
Sports
778 794 (2)% 675 630 7%
Experiences
2,286 2,036 12% 5,391 4,898 10%
Totalsegmentoperatingincome
(1)
$ 3,845 $ 3,285 17% $ 7,721 $ 6,328 22%
(1)
Totalsegmentoperatingincomeisanon-GAAPfinancialmeasure.ThemostcomparableGAAPmeasureisincome
beforeincometaxes.Seethediscussiononpages17through21.
(2)
ReflectsfeespaidbyDirect-to-ConsumertoSportsandotherEntertainmentbusinessesfortherighttoairtheirlinear
networksonHuluLiveandfeespaidbyEntertainmenttoSportstoprogramsportsontheABCNetworkandStar+.
DISCUSSIONOFSECONDQUARTERSEGMENTRESULTS
Entertainment
RevenueandoperatingincomefortheEntertainmentsegmentareasfollows:
QuarterEnded
Change
SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023
March30,
2024
April1,
2023 Change
Revenues:
LinearNetworks $ 2,765 $ 2,999 (8)% $ 5,568 $ 6,201 (10)%
Direct-to-Consumer 5,642 4,983 13% 11,188 9,805 14%
ContentSales/Licensingand
Other 1,389 2,327 (40)% 3,021 4,978 (39)%
$ 9,796 $ 10,309 (5)% $ 19,777 $ 20,984 (6)%
Operatingincome(loss):
LinearNetworks $ 752 $ 959 (22)% $ 1,988 $ 2,289 (13)%
Direct-to-Consumer 47 (587) nm (91) (1,571) 94%
ContentSales/Licensingand
Other (18) 83 nm (242) 82 nm
$ 781 $ 455 72% $ 1,655 $ 800 >100%
3
TheincreaseinEntertainmentoperatingincomeinthecurrentquartercomparedtotheprior-year
quarterwasduetoimprovedresultsatDirect-to-Consumer,partiallyoffsetbydeclinesatLinear
NetworksandContentSales/LicensingandOther.
LinearNetworks
LinearNetworksrevenuesandoperatingincomeareasfollows:
QuarterEnded
Change
($inmillions)
March30,
2024
April1,
2023
Revenue
Domestic $ 2,269 $ 2,440 (7)%
International 496 559 (11)%
$ 2,765 $ 2,999 (8)%
Operatingincome
Domestic $ 520 $ 635 (18)%
International 92 165 (44)%
Equityintheincomeofinvestees 140 159 (12)%
$ 752 $ 959 (22)%
Domestic
Thedecreaseindomesticoperatingincomeinthecurrentquartercomparedtotheprior-year
quarterwasdueto:
• Loweraffiliaterevenueprimarilyduetoadecreaseinsubscribersincludingtheimpactofthenon-
renewalofcarriageofcertainnetworksbyanaffiliate,partiallyoffsetbyhighercontractualrates
• Adeclineinadvertisingrevenueattributabletoadecreaseinimpressionsreflectinglower
averageviewership,partiallyoffsetbyhigherrates
International
Lowerinternationaloperatingincomewasduetoadecreaseinaffiliaterevenueprimarily
attributabletofewersubscribersandcontractualratedecreases.
EquityintheIncomeofInvestees
IncomefromequityinvesteesdecreasedduetolowerincomefromA+ETelevisionNetworks(A+E)
attributabletodecreasesinadvertisingandaffiliaterevenue.
Direct-to-Consumer
Direct-to-Consumerrevenuesandoperatingincome(loss)areasfollows:
QuarterEnded
Change
($inmillions)
March30,
2024
April1,
2023
Revenue $ 5,642 $ 4,983 13%
Operatingincome(loss) $ 47 $ (587) nm
Theimprovementinoperatingresultsinthecurrentquartercomparedtotheprior-yearquarterwas
dueto:
• Subscriptionrevenuegrowthattributabletohigherratesduetoincreasesinretailpricingacross
ourstreamingservices,andsubscribergrowthatDisney+Core
4
• Lowerdistributioncosts
• Anincreaseinadvertisingrevenueduetohigherimpressions,partiallyoffsetbylowerrates
• Highermarketingcosts
• Anincreaseinprogrammingandproductioncostsduetomoreprogrammingonourservicesand
highersubscriber-basedfeesforprogrammingtheHuluLiveTVservice,partiallyoffsetbylower
averagecostsperhourofcontentavailableonourservices
TheincreaseinHuluLiveTVsubscriber-basedfeeswasduetorateincreasesandmore
subscribers
SecondQuarterofFiscal2024ComparisontoFirstQuarterofFiscal2024
Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetricsto
analyzetrendsandevaluatetheoverallperformanceofourDisney+andHuludirect-to-consumer(DTC)
productofferings
(1)
,andwebelievethesemetricsareusefultoinvestorsinanalyzingthebusiness.The
followingtablesandrelateddiscussionareonasequentialquarterbasis.
Paidsubscribers
(1)
at:
(inmillions)
March30,
2024
December30,
2023 Change
Disney+
Domestic(U.S.andCanada) 54.0 46.1 17%
International(excludingDisney+Hotstar)
(1)
63.6 65.2 (2)%
Disney+Core
(2)
117.6 111.3 6%
Disney+Hotstar 36.0 38.3 (6)%
Hulu
SVODOnly 45.8 45.1 2%
LiveTV+SVOD 4.5 4.6 (2)%
TotalHulu
(2)
50.2 49.7 1%
AverageMonthlyRevenuePerPaidSubscriber
(1)
forthequarterended:
March30,
2024
December30,
2023 Change
Disney+
Domestic(U.S.andCanada) $ 8.00 $ 8.15 (2)%
International(excludingDisney+Hotstar)
(1)
6.66 5.91 13%
Disney+Core 7.28 6.84 6%
Disney+Hotstar 0.70 1.28 (45)%
Hulu
SVODOnly 11.84 12.29 (4)%
LiveTV+SVOD 95.01 93.61 1%
(1)
Seediscussiononpage16—DTCProductDescriptionsandKeyDefinitions
(2)
Totalmaynotequalthesumofthecolumnduetorounding
DomesticDisney+averagemonthlyrevenueperpaidsubscriberdecreasedfrom$8.15to$8.00due
toahighermixofwholesalesubscribers,partiallyoffsetbyincreasesinretailpricing.
5
InternationalDisney+(excludingDisney+Hotstar)averagemonthlyrevenueperpaidsubscriber
increasedfrom$5.91to$6.66duetoincreasesinretailpricingandalowermixofsubscribersto
promotionalofferings.
Disney+Hotstaraveragemonthlyrevenueperpaidsubscriberdecreasedfrom$1.28to$0.70dueto
loweradvertisingrevenue.
HuluSVODOnlyaveragemonthlyrevenueperpaidsubscriberdecreasedfrom$12.29to$11.84due
toloweradvertisingrevenue,partiallyoffsetbyincreasesinretailpricing.
HuluLiveTV+SVODaveragemonthlyrevenueperpaidsubscriberincreasedfrom$93.61to$95.01
duetoincreasesinretailpricingandalowermixofsubscriberstopromotionalofferings,partiallyoffset
byloweradvertisingrevenue.
ContentSales/LicensingandOther
ContentSales/LicensingandOtherrevenuesandoperatingincome(loss)areasfollows:
QuarterEnded
Change
($inmillions)
March30,
2024
April1,
2023
Revenue $ 1,389 $ 2,327 (40)%
Operatingincome(loss) $ (18) $ 83 nm
Thedecreaseinoperatingresultswasdueto:
• Lowertheatricaldistributionresultsastherewerenosignificanttitlesreleasedinthecurrent
quartercomparedtoAnt-ManandtheWasp:Quantumaniaintheprior-yearquarter.Theprior-
yearquarteralsoincludedthebenefitoftheongoingperformanceofAvatar:TheWayofWater,
whichwasreleasedinDecember2022.
• Higherfilmcostimpairmentsinthecurrentquarter
6
Sports
Sportsrevenuesandoperatingincome(loss)areasfollows:
QuarterEnded
Change
($inmillions)
March30,
2024
April1,
2023
Revenue
ESPN
Domestic $ 3,866 $ 3,733 4%
International 341 366 (7)%
4,207 4,099 3%
StarIndia 105 127 (17)%
$ 4,312 $ 4,226 2%
Operatingincome(loss)
ESPN
Domestic $ 780 $ 858 (9)%
International 19 19 —%
799 877 (9)%
StarIndia (27) (99) 73%
Equityintheincomeofinvestees 6 16 (63)%
$ 778 $ 794 (2)%
DomesticESPN
LowerdomesticESPNoperatingresultsinthecurrentquartercomparedtotheprior-yearquarter
weredueto:
• AnincreaseinprogrammingandproductioncostsattributabletohighercostsforCollegeFootball
Playoff(CFP)programmingasaresultofairinganadditionalgameinthecurrentquarterdueto
timing.Inthecurrentquarter,weairedthechampionshipgame,twosemi-finalgamesandone
hostgamecomparedtotheairingofthechampionshipgameandtwohostgamesintheprior-
yearquarter.
• Loweraffiliaterevenuedrivenbyfewersubscribers,partiallyoffsetbycontractualrateincreases
• Advertisingrevenuegrowthprimarilyduetoincreasesinratesand,toalesserextent,average
viewership.TheseincreasesincludebenefitsfromtheadditionalCFPgameandanadditionalNFL
playoffgameinthecurrentquarter.
• GrowthinESPN+subscriptionrevenueduetohigherrates
7
StarIndia
ThedecreaseinoperatinglossatStarIndiawasduetolowerprogrammingandproductioncosts
attributabletothenon-renewalofBoardofControlforCricketinIndiarights,partiallyoffsetbyan
increaseincostsforIndianPremierLeaguematchesduetomorematchesairedinthecurrentquarter
comparedtotheprior-yearquarter.
SecondQuarterofFiscal2024ComparisontoFirstQuarterofFiscal2024
Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetricsto
analyzetrendsandevaluatetheoverallperformanceofourESPN+DTCproductoffering
(1)
,andwe
believethesemetricsareusefultoinvestorsinanalyzingthebusiness.Thefollowingtableandrelated
discussionareonasequentialquarterbasis.
March30,
2024
December30,
2023 Change
Paidsubscribers
(1)
at:(inmillions) 24.8 25.2 (2)%
AverageMonthlyRevenuePerPaidSubscriber
(1)
forthe
quarterended: $ 6.30 $ 6.09 3%
(1)
Seediscussiononpage16—DTCProductDescriptionsandKeyDefinitions
TheincreaseinESPN+averagemonthlyrevenueperpaidsubscriberwasduetoincreasesinretail
pricingandhigheradvertisingrevenue.
Experiences
Experiencesrevenuesandoperatingincomeareasfollows:
QuarterEnded
Change
($inmillions)
March30,
2024
April1,
2023
Revenue
Parks&Experiences
Domestic
$ 5,958 $ 5,572 7%
International
1,522 1,184 29%
ConsumerProducts
913 890 3%
$ 8,393 $ 7,646 10%
Operatingincome
Parks&Experiences
Domestic
$ 1,607 $ 1,519 6%
International
292 156 87%
ConsumerProducts
387 361 7%
$ 2,286 $ 2,036 12%
DomesticParksandExperiences
Theincreaseinoperatingincomeatourdomesticparksandexperienceswasduetohigherresultsat
WaltDisneyWorldResortandDisneyCruiseLine,partiallyoffsetbylowerresultsatDisneylandResort.
• AtWaltDisneyWorldResort,higherresultsinthecurrentquartercomparedtotheprior-year
quarterweredueto:
Increasedguestspendingattributabletohigheraverageticketprices
Highercostsduetoinflation,partiallyoffsetbylowerdepreciationandcostsavinginitiatives
8
• GrowthatDisneyCruiseLinewasduetoanincreaseinaverageticketprices,partiallyoffsetby
highercosts
• ThedecreaseinoperatingresultsatDisneylandResortwasdueto:
Highercostsdrivenbyinflation
Anincreaseinguestspendingattributabletohigheraverageticketpricesanddailyhotelroom
rates
Highervolumesduetoattendancegrowth,partiallyoffsetbyloweroccupiedroomnights
InternationalParksandExperiences
Higherinternationalparksandexperiences’operatingresultsweredueto:
• AnincreaseinoperatingresultsatHongKongDisneylandResortattributableto:
Guestspendinggrowthduetoincreasesinaverageticketpricesandfood,beverageand
merchandisespending
Highervolumesresultingfromincreasesinattendanceandoccupiedroomnights.Volume
growthbenefittedfromadditionaldaysofoperationsinthecurrentquarteraswellasthe
openingofWorldofFrozeninNovember2023
Increasedcostsdrivenbyinflationandnewguestofferings
ConsumerProducts
Theincreaseinconsumerproductsoperatingresultswasdrivenbyhighergameslicensingrevenue.
OTHERFINANCIALINFORMATION
DTCStreamingBusinesses
RevenueandoperatinglossforourcombinedDTCstreamingbusinesses,whichconsistoftheDirect-
to-ConsumerlineofbusinessattheEntertainmentsegmentandESPN+attheSportssegment,areas
follows:
QuarterEnded
Change($inmillions)
March30,
2024
April1,
2023
Revenue $ 6,188 $ 5,514 12%
Operatingloss
(1)
$ (18) $ (659) 97%
(1)
DTCstreamingbusinessesoperatinglossisnotafinancialmeasuredefinedbyGAAP.ThemostcomparableGAAP
measuresaresegmentoperatingincomefortheEntertainmentsegmentandSportssegment.Seethediscussionon
page21forhowwedefineandcalculatethismeasureandareconciliationofittothemostdirectlycomparable
GAAPmeasures.
CorporateandUnallocatedSharedExpenses
Corporateandunallocatedsharedexpensesincreased$112millionforthequarter,from$279
millionto$391million,primarilyattributableto:
• Highercostsrelatedtoourproxysolicitationandannualshareholdermeeting
• Increasedcompensationcosts
• Othercostinflation
RestructuringandImpairmentCharges
Inthecurrentquarter,theCompanyrecordedchargesof$2,052millionduetogoodwill
impairmentsrelatedtoStarIndiaandentertainmentlinearnetworks.TheimpairmentatStarIndiawasa
9
resultoftheCompanyenteringintoabindingagreementinthecurrentquartertocontributeourStar
Indiaoperationsintoanewjointventure.Intheprior-yearquarter,theCompanyrecordedchargesof
$152millionprimarilyforseverance.
OtherIncome,net
Intheprior-yearquarter,theCompanyrecordeda$149milliongaintoadjustitsinvestmentin
DraftKings,Inc.tofairvalue.
InterestExpense,net
Interestexpense,netwasasfollows:
QuarterEnded
($inmillions)
March30,
2024
April1,
2023 Change
Interestexpense $ (501) $ (504) 1%
Interestincome,investmentincomeandother 190 182 4%
Interestexpense,net $ (311) $ (322) 3%
EquityintheIncomeofInvestees
Equityintheincomeofinvesteeswasasfollows:
QuarterEnded
($inmillions)
March30,
2024
April1,
2023 Change
Amountsincludedinsegmentresults:
Entertainment $ 138 $ 160 (14)%
Sports 6 16 (63)%
AmortizationofTFCFintangibleassetsrelatedtoequity
investees (3) (3) —%
Equityintheincomeofinvestees $ 141 $ 173 (18)%
Incomefromequityinvesteesdecreased$32million,to$141millionfrom$173million,dueto
lowerincomefromA+E.
IncomeTaxes
Theeffectiveincometaxratewasasfollows:
QuarterEnded
March30,
2024
April1,
2023
Incomebeforeincometaxes $ 657 $ 2,123
Incometaxexpense 441 635
Effectiveincometaxrate 67.1% 29.9%
Theincreaseintheeffectiveincometaxratewasduetoanunfavorableimpactfromthegoodwill
impairmentsrecognizedinthecurrentquarter,whicharenottaxdeductible,partiallyoffsetbythe
benefitfromadjustmentsrelatedtoprioryears,whichwerefavorableinthecurrentquarterand
unfavorableintheprior-yearquarter.
10
NoncontrollingInterests
Netincomeattributabletononcontrollinginterestswasasfollows:
QuarterEnded
($inmillions)
March30,
2024
April1,
2023 Change
Netincomeattributabletononcontrollinginterests $ (236) $ (217) (9)%
Theincreaseinnetincomeattributabletononcontrollinginterestswasprimarilyduetoimproved
resultsatHongKongDisneylandResort,partiallyoffsetbythecomparisontotheaccretionofNBC
Universal’sinterestinHuluintheprior-yearquarterwithnoaccretioninthecurrentquarteraswehad
fullyaccretedtotheamountpaidinDecember2023.
Netincomeattributabletononcontrollinginterestsisdeterminedonincomeafterroyaltiesand
managementfees,financingcostsandincometaxes,asapplicable.
CashFlow
Cashprovidedbyoperationsandfreecashflowwereasfollows:
SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023 Change
Cashprovidedbyoperations $ 5,851 $ 2,262 $ 3,589
Investmentsinparks,resortsandotherproperty (2,558) (2,430) (128)
Freecashflow
(1)
$ 3,293 $ (168) $ 3,461
(1)
FreecashflowisnotafinancialmeasuredefinedbyGAAP.ThemostcomparableGAAPmeasureiscashprovidedby
operations.Seethediscussiononpages17through21.
Cashprovidedbyoperationsincreased$3.6billionto$5.9billioninthecurrentperiodfrom$2.3
billionintheprior-yearperiod.Theincreasewasduetolowerfilmandtelevisionproductionspending
andthetimingofpaymentsforsportsrights.Theincreasealsoreflectedlowercollateralpayments
relatedtoourhedgingprogram,apaymentintheprior-yearperiodrelatedtotheterminationof
contentlicensesinfiscal2022andhigheroperatingincomeatExperiences.Theseincreaseswere
partiallyoffsetbypaymentinthecurrentperiodoffiscal2023federalandCaliforniaincometaxes,which
weredeferredpursuanttoreliefprovidedbytheInternalRevenueServiceandCaliforniaStateBoardof
Equalizationasaresultof2023winterstormsinCalifornia.
11
CapitalExpendituresandDepreciationExpense
Investmentsinparks,resortsandotherpropertywereasfollows:
SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023
Entertainment
$ 522 $ 541
Sports
1 7
Experiences
Domestic
1,198 1,024
International
466 410
TotalExperiences
1,664 1,434
Corporate
371 448
Totalinvestmentsinparks,resortsandotherproperty
$ 2,558 $ 2,430
Capitalexpendituresincreasedto$2.6billionfrom$2.4billionduetohigherspendonnew
attractionsandcruiseshipfleetexpansionattheExperiencessegment.
Depreciationexpensewasasfollows:
SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023
Entertainment
$ 332 $ 304
Sports
22 29
Experiences
Domestic
850 907
International
353 333
TotalExperiences
1,203 1,240
Corporate
105 100
Totaldepreciationexpense
$ 1,662 $ 1,673
12
THEWALTDISNEYCOMPANY
CONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATIONS
(unaudited;$inmillions,exceptpersharedata)
QuarterEnded SixMonthsEnded
March30,
2024
April1,
2023
March30,
2024
April1,
2023
Revenues $ 22,083 $ 21,815 $ 45,632 $ 45,327
Costsandexpenses
(19,204) (19,540) (39,817) (41,059)
Restructuringandimpairmentcharges (2,052) (152) (2,052) (221)
Otherincome,net
— 149 — 107
Interestexpense,net (311) (322) (557) (622)
Equityintheincomeofinvestees 141 173 322 364
Incomebeforeincometaxes 657 2,123 3,528 3,896
Incometaxes (441) (635) (1,161) (1,047)
Netincome 216 1,488 2,367 2,849
Netincomeattributabletononcontrollinginterests (236) (217) (476) (299)
Netincome(loss)attributabletoTheWaltDisneyCompany
(Disney)
$ (20) $ 1,271 $ 1,891 $ 2,550
Earnings(loss)pershareattributabletoDisney:
Diluted $ (0.01) $ 0.69 $ 1.03 $ 1.39
Basic $ (0.01) $ 0.70 $ 1.03 $ 1.40
Weightedaveragenumberofcommonandcommon
equivalentsharesoutstanding:
Diluted 1,834 1,831 1,838 1,829
Basic 1,834 1,828 1,833 1,827
13
THEWALTDISNEYCOMPANY
CONDENSEDCONSOLIDATEDBALANCESHEETS
(unaudited;$inmillions,exceptpersharedata)
March30,
2024
September30,
2023
ASSETS
Currentassets
Cashandcashequivalents
$ 6,635 $ 14,182
Receivables,net
12,026 12,330
Inventories
1,948 1,963
Contentadvances
1,921 3,002
Othercurrentassets
2,106 1,286
Totalcurrentassets
24,636 32,763
Producedandlicensedcontentcosts
32,590 33,591
Investments
3,007 3,080
Parks,resortsandotherproperty
Attractions,buildingsandequipment
72,173 70,090
Accumulateddepreciation
(44,065) (42,610)
28,108 27,480
Projectsinprogress
6,243 6,285
Land
1,174 1,176
35,525 34,941
Intangibleassets,net
11,474 13,061
Goodwill
73,914 77,067
Otherassets
13,964 11,076
Totalassets
$ 195,110 $ 205,579
LIABILITIESANDEQUITY
Currentliabilities
Accountspayableandotheraccruedliabilities
$ 18,798 $ 20,671
Currentportionofborrowings
6,789 4,330
Deferredrevenueandother
7,287 6,138
Totalcurrentliabilities
32,874 31,139
Borrowings
39,510 42,101
Deferredincometaxes
6,860 7,258
Otherlong-termliabilities
12,103 12,069
Commitmentsandcontingencies
Redeemablenoncontrollinginterests
— 9,055
Equity
Preferredstock
— —
Commonstock,$0.01parvalue,Authorized–4.6billionshares,Issued–1.9billionsharesatMarch30,2024
and1.8billionsharesatSeptember30,2023
58,028 57,383
Retainedearnings
46,649 46,093
Accumulatedothercomprehensiveloss
(3,509) (3,292)
Treasurystock,atcost,27millionsharesatMarch30,2024and19millionsharesatSeptember30,2023
(1,916) (907)
TotalDisneyShareholders’equity
99,252 99,277
Noncontrollinginterests
4,511 4,680
Totalequity
103,763 103,957
Totalliabilitiesandequity
$ 195,110 $ 205,579
14
THEWALTDISNEYCOMPANY
CONDENSEDCONSOLIDATEDSTATEMENTSOFCASHFLOWS
(unaudited;$inmillions)
SixMonthsEnded
March30,
2024
April1,
2023
OPERATINGACTIVITIES
Netincome
$ 2,367 $ 2,849
Depreciationandamortization
2,485 2,616
Goodwillimpairment
2,038 —
Deferredincometaxes
(211) (46)
Equityintheincomeofinvestees
(322) (364)
Cashdistributionsreceivedfromequityinvestees
300 363
Netchangeinproducedandlicensedcontentcostsandadvances
1,699 (824)
Equity-basedcompensation
675 570
Other,net
(6) (320)
Changesinoperatingassetsandliabilities
Receivables
(156) (413)
Inventories
26 (107)
Otherassets
(185) (345)
Accountspayableandotherliabilities
(1,075) (2,133)
Incometaxes
(1,784) 416
Cashprovidedbyoperations
5,851 2,262
INVESTINGACTIVITIES
Investmentsinparks,resortsandotherproperty
(2,558) (2,430)
Other,net
5 (111)
Cashusedininvestingactivities
(2,553) (2,541)
FINANCINGACTIVITIES
Commercialpaperborrowings,net
42 714
Borrowings
133 70
Reductionofborrowings
(645) (1,000)
Dividends
(549) —
Repurchasesofcommonstock
(1,001) —
Contributionsfromnoncontrollinginterests
— 178
Acquisitionofredeemablenoncontrollinginterests
(8,610) (900)
Other,net
(194) (188)
Cashusedinfinancingactivities
(10,824) (1,126)
Impactofexchangeratesoncash,cashequivalentsandrestrictedcash
17 197
Changeincash,cashequivalentsandrestrictedcash
(7,509) (1,208)
Cash,cashequivalentsandrestrictedcash,beginningofperiod
14,235 11,661
Cash,cashequivalentsandrestrictedcash,endofperiod
$ 6,726 $ 10,453
15
DTCPRODUCTDESCRIPTIONSANDKEYDEFINITIONS
Productofferings
IntheU.S.,Disney+,ESPN+andHuluSVODOnlyareeachofferedasastandaloneserviceortogether
aspartofvariousmulti-productofferings.HuluLiveTV+SVODincludesDisney+andESPN+.Disney+is
availableinmorethan150countriesandterritoriesoutsidetheU.S.andCanada.InIndiaandcertain
otherSoutheastAsiancountries,theserviceisbrandedDisney+Hotstar.IncertainLatinAmerican
countries,weofferDisney+aswellasStar+,ageneralentertainmentSVODservice,whichisavailableon
astandalonebasisortogetherwithDisney+(Combo+).Dependingonthemarket,ourservicescanbe
purchasedonourwebsitesorthroughthird-partyplatforms/appsorareavailableviawholesale
arrangements.
Paidsubscribers
Paidsubscribersreflectsubscribersforwhichwerecognizedsubscriptionrevenue.Subscriberscease
tobeapaidsubscriberasoftheireffectivecancellationdateorasaresultofafailedpaymentmethod.
Subscriberstomulti-productofferingsintheU.S.arecountedasapaidsubscriberforeachservice
includedinthemulti-productofferingandsubscriberstoHuluLiveTV+SVODarecountedasonepaid
subscriberforeachoftheHuluLiveTV+SVOD,Disney+andESPN+services.InLatinAmerica,ifa
subscriberhaseitherthestandaloneDisney+orStar+serviceorsubscribestoCombo+,thesubscriberis
countedasoneDisney+paidsubscriber.Subscribersincludethosewhoreceiveanentitlementtoa
servicethroughwholesalearrangements,includingthoseforwhichtheserviceisavailabletoeach
subscriberofanexistingcontentdistributiontier.Whenweaggregatethetotalnumberofpaid
subscribersacrossourDTCstreamingservices,werefertothemaspaidsubscriptions.
InternationalDisney+(excludingDisney+Hotstar)
InternationalDisney+(excludingDisney+Hotstar)includestheDisney+serviceoutsidetheU.S.and
CanadaandtheStar+serviceinLatinAmerica.
AverageMonthlyRevenuePerPaidSubscriber
HuluandESPN+averagemonthlyrevenueperpaidsubscriberiscalculatedbasedontheaverageof
themonthlyaveragepaidsubscribersforeachmonthintheperiod.Themonthlyaveragepaid
subscribersiscalculatedasthesumofthebeginningofthemonthandendofthemonthpaidsubscriber
count,dividedbytwo.Disney+averagemonthlyrevenueperpaidsubscriberiscalculatedusingadaily
averageofpaidsubscribersfortheperiod.Revenueincludessubscriptionfees,advertising(excluding
revenueearnedfromsellingadvertisingspotstootherCompanybusinesses)andpremiumandfeature
add-onrevenuebutexcludesPay-Per-Viewrevenue.Advertisingrevenuegeneratedbycontentonone
DTCstreamingservicethatisaccessedthroughanotherDTCstreamingservicebysubscriberstoboth
streamingservicesisallocatedbetweenbothstreamingservices.Theaveragerevenueperpaid
subscriberisnetofdiscountsonofferingsthatcarrymorethanoneservice.Revenueisallocatedtoeach
servicebasedontherelativeretailorwholesalepriceofeachserviceonastandalonebasis.HuluLiveTV
+SVODrevenueisallocatedtotheSVODservicesbasedonthewholesalepriceoftheHuluSVODOnly,
Disney+andESPN+multi-productoffering.Ingeneral,wholesalearrangementshavealoweraverage
monthlyrevenueperpaidsubscriberthansubscribersthatweacquiredirectlyorthroughthird-party
platforms.
16
NON-GAAPFINANCIALMEASURES
ThisearningsreleasepresentsdilutedEPSexcludingcertainitems(alsoreferredtoasadjustedEPS),
totalsegmentoperatingincome,freecashflow,andDTCstreamingbusinessesoperatingincome(loss),
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mostcomparableGAAPfinancial
measuresandarenotpresentedasalternativemeasuresofdilutedEPS,incomebeforeincometaxes,
cashprovidedbyoperations,orEntertainmentandSportssegmentoperatingincome(loss)as
determinedinaccordancewithGAAP.DilutedEPSexcludingcertainitems,totalsegmentoperating
income,freecashflow,andDTCstreamingbusinessesoperatingincome(loss)aswehavecalculated
themmaynotbecomparabletosimilarlytitledmeasuresreportedbyothercompanies.
OurdefinitionsandcalculationsofdilutedEPSexcludingcertainitems,totalsegmentoperating
income,freecashflow,andDTCstreamingbusinessesoperatingincome(loss),aswellasquantitative
reconciliationsofeachofthesehistoricalmeasuresandtheforward-lookingmeasureoffreecashflowto
themostdirectlycomparableGAAPfinancialmeasureareprovidedbelow.
TheCompanyisnotprovidingtheforward-lookingmeasurefordilutedEPS,whichisthemost
directlycomparableGAAPmeasuretodilutedEPSexcludingcertainitems,oraquantitative
reconciliationofforward-lookingdilutedEPSexcludingcertainitemstothatmostdirectlycomparable
GAAPmeasure.TheCompanyisunabletopredictorestimatewithreasonablecertaintytheultimate
outcomeofcertainsignificantitemsrequiredforsuchGAAPmeasurewithoutunreasonableeffort.
InformationaboutotheradjustingitemsthatiscurrentlynotavailabletotheCompanycouldhavea
potentiallyunpredictableandsignificantimpactonfutureGAAPfinancialresults.
DilutedEPSexcludingcertainitems
TheCompanyusesdilutedEPSexcluding(1)certainitemsaffectingcomparabilityofresultsfrom
periodtoperiodand(2)amortizationofTFCFandHuluintangibleassets,includingpurchaseaccounting
step-upadjustmentsforreleasedcontent,tofacilitatetheevaluationoftheperformanceofthe
Company’soperationsexclusiveoftheseitems,andtheseadjustmentsreflecthowseniormanagement
isevaluatingsegmentperformance.
TheCompanybelievesthatprovidingdilutedEPSexclusiveofcertainitemsimpactingcomparability
isusefultoinvestors,particularlywheretheimpactoftheexcludeditemsissignificantinrelationto
reportedearningsand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.
TheCompanyfurtherbelievesthatprovidingdilutedEPSexclusiveofamortizationofTFCFandHulu
intangibleassetsassociatedwiththeacquisitionin2019isusefultoinvestorsbecausetheTFCFandHulu
acquisitionwasconsiderablylargerthantheCompany’shistoricacquisitionswithasignificantlygreater
acquisitionaccountingimpact.
17
ThefollowingtablereconcilesreporteddilutedEPStodilutedEPSexcludingcertainitemsforthe
secondquarter:
($inmillionsexceptEPS)
Pre-Tax
Income/
Loss
Tax
Benefit/
Expense
(1)
After-Tax
Income/
Loss
(2)
Diluted
EPS
(3)
Changevs.
prior-year
period
QuarterEndedMarch30,2024
Asreported
$ 657 $ (441) $ 216 $ (0.01) n/m
Exclude:
Restructuringandimpairmentcharges
(4)
2,052 (121) 1,931 1.06
AmortizationofTFCFandHuluintangible
assetsandfairvaluestep-uponfilmand
televisioncosts
(5)
434 (101) 333 0.17
Excludingcertainitems $ 3,143 $ (663) $ 2,480 $ 1.21 30%
QuarterEndedApril1,2023
Asreported
$ 2,123 $ (635) $ 1,488 $ 0.69
Exclude:
AmortizationofTFCFandHuluintangible
assetsandfairvaluestep-uponfilmand
televisioncosts
(5)
558 (130) 428 0.23
Restructuringandimpairmentcharges
(4)
152 (35) 117 0.06
Otherincome,net
(6)
(149) 35 (114) (0.06)
Excludingcertainitems $ 2,684 $ (765) $ 1,919 $ 0.93
(1)
Taxbenefit/expenseisdeterminedusingthetaxrateapplicabletotheindividualitem.
(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)
Chargesinthecurrentquarterincludedimpairmentsofgoodwill($2,038million).Chargesintheprior-yearquarter
wereprimarilyforseverance.
(5)
Forthecurrentquarter,intangibleassetamortizationwas$362million,step-upamortizationwas$69millionand
amortizationofintangibleassetsrelatedtoTFCFequityinvesteeswas$3million.Fortheprior-yearquarter,
intangibleassetamortizationwas$408million,step-upamortizationwas$147millionandamortizationofintangible
assetsrelatedtoTFCFequityinvesteeswas$3million.
(6)
DraftKingsgain($149million).
18
ThefollowingtablereconcilesreporteddilutedEPSfromcontinuingoperationstodilutedEPS
excludingcertainitemsforthesix-monthperiod:
($inmillionsexceptEPS)
Pre-Tax
Income/
Loss
Tax
Benefit/
Expense
(1)
After-Tax
Income/
Loss
(2)
Diluted
EPS
(3)
Changevs.
prioryear
SixMonthsEndedMarch30,2024:
Asreported
$ 3,528 $ (1,161) $ 2,367 $ 1.03 (26)%
Exclude:
Restructuringandimpairmentcharges
(4)
2,052 (121) 1,931 1.06
AmortizationofTFCFandHuluintangible
assetsandfairvaluestep-uponfilmand
televisioncosts
(5)
885 (206) 679 0.36
Excludingcertainitems $ 6,465 $ (1,488) $ 4,977 $ 2.44 28%
SixMonthsEndedApril1,2023:
Asreported
$ 3,896 $ (1,047) $ 2,849 $ 1.39
Exclude:
AmortizationofTFCFandHuluintangible
assetsandfairvaluestep-uponfilmand
televisioncosts
(5)
1,137 (264) 873 0.47
Restructuringandimpairmentcharges
(4)
221 (43) 178 0.10
Otherincome,net
(6)
(107) 18 (89) (0.05)
Excludingcertainitems $ 5,147 $ (1,336) $ 3,811 $ 1.91
(1)
Taxbenefit/expenseisdeterminedusingthetaxrateapplicabletotheindividualitem.
(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)
Chargesforthecurrentperiodincludedimpairmentsofgoodwill($2,038million).Chargesfortheprior-yearperiod
includedseverance($125million)andexitingourbusinessesinRussia($69million).
(5)
Forthecurrentperiod,intangibleassetamortizationwas$742million,step-upamortizationwas$137millionand
amortizationofintangibleassetsrelatedtoTFCFequityinvesteeswas$6million.Fortheprior-yearperiod,intangible
assetamortizationwas$825million,step-upamortizationwas$306millionandamortizationofintangibleassets
relatedtoTFCFequityinvesteeswas$6million.
(6)
Fortheprior-yearperiod,otherincome,netwasduetotheDraftKingsgain($79million)andagainonthesaleofa
business($28million).
19
Totalsegmentoperatingincome
TheCompanyevaluatestheperformanceofitsoperatingsegmentsbasedonsegmentoperating
income,andmanagementusestotalsegmentoperatingincomeasameasureoftheperformanceof
operatingbusinessesseparatefromnon-operatingfactors.TheCompanybelievesthatinformationabout
totalsegmentoperatingincomeassistsinvestorsbyallowingthemtoevaluatechangesintheoperating
resultsoftheCompany’sportfolioofbusinessesseparatefromnon-operationalfactorsthataffectnet
income,thusprovidingseparateinsightintobothoperationsandotherfactorsthataffectreported
results.
Thefollowingtablereconcilesincomebeforeincometaxestototalsegmentoperatingincome:
QuarterEnded SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023 Change
March30,
2024
April1,
2023 Change
Incomebeforeincometaxes $ 657 $ 2,123 (69)% $ 3,528 $ 3,896 (9)%
Add(subtract):
Corporateandunallocated
sharedexpenses
391 279 (40)% 699 559 (25)%
Restructuringandimpairment
charges 2,052 152 >(100)% 2,052 221 >(100)%
Otherincome,net — (149) (100)% — (107) (100)%
Interestexpense,net
311 322 3% 557 622 10%
AmortizationofTFCFandHulu
intangibleassetsandfairvalue
step-uponfilmandtelevision
costs 434 558 22% 885 1,137 22%
Totalsegmentoperatingincome $ 3,845 $ 3,285 17% $ 7,721 $ 6,328 22%
Freecashflow
TheCompanyusesfreecashflow(cashprovidedbyoperationslessinvestmentsinparks,resorts
andotherproperty),amongothermeasures,toevaluatetheabilityofitsoperationstogeneratecash
thatisavailableforpurposesotherthancapitalexpenditures.Managementbelievesthatinformation
aboutfreecashflowprovidesinvestorswithanimportantperspectiveonthecashavailabletoservice
debtobligations,makestrategicacquisitionsandinvestmentsandpaydividendsorrepurchaseshares.
ThefollowingtablepresentsasummaryoftheCompany’sconsolidatedcashflows:
QuarterEnded SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023
March30,
2024
April1,
2023
Cashprovidedbyoperations $ 3,666 $ 3,236 $ 5,851 $ 2,262
Cashusedininvestingactivities (1,307)  (1,249)  (2,553)  (2,541)
Cashusedinfinancingactivities (2,818) (83)  (10,824)  (1,126)
Impactofexchangeratesoncash,cashequivalentsandrestrictedcash (62) 33 17 197
Changeincash,cashequivalentsandrestrictedcash (521)  1,937 (7,509) (1,208)
Cash,cashequivalentsandrestrictedcash,beginningofperiod 7,247 8,516 14,235 11,661
Cash,cashequivalentsandrestrictedcash,endofperiod $ 6,726 $ 10,453 $ 6,726 $ 10,453
20
ThefollowingtablereconcilestheCompany’sconsolidatedcashprovidedbyoperationstofreecash
flow:
QuarterEnded SixMonthsEnded
($inmillions)
March30,
2024
April1,
2023 Change
March30,
2024
April1,
2023 Change
Cashprovidedbyoperations $ 3,666 $ 3,236 $ 430  $ 5,851 $ 2,262 $ 3,589 
Investmentsinparks,resortsandother
property (1,259) (1,249)  (10) (2,558)  (2,430)  (128)
Freecashflow $ 2,407 $ 1,987 $ 420 $ 3,293 $ (168) $ 3,461
ThefollowingtablereconcilestheCompany’sconsolidatedestimatedforward-lookingcashprovided
byoperationstoestimatedforward-lookingfreecashflowforfullyearfiscal2024:
(estimated$inbillions)
Fullyearfiscal
2024
Cashprovidedbyoperations $ 14
Investmentsinparks,resortsandotherproperty (6)
Freecashflow $ 8
DTCStreamingBusinesses
TheCompanyusescombinedDTCstreamingbusinessesoperatingincome(loss)becauseitbelieves
thatthismeasureallowsinvestorstoevaluatetheperformanceofitsportfolioofstreamingbusinesses
andtrackprogressagainsttheCompany’sgoalofreachingprofitabilityinthefourthquarteroffiscal
2024atitscombinedstreamingbusinesses.
ThefollowingtablesreconcileEntertainmentandSportssegmentoperatingincome(loss)totheDTC
streamingbusinessesoperatingloss:
QuarterEnded
March30,2024 April1,2023
($inmillions)
Entertainment Sports
DTCStreaming
Businesses Entertainment Sports
DTCStreaming
Businesses
LinearNetworks $ 752 $ 843 $ 959 $ 866
DTCstreamingbusinesses(Direct-to-
ConsumerandESPN+businesses) 47 (65) $ (18) (587)  (72) $ (659)
ContentSales/LicensingandOther (18)  — 83 —
Segmentoperatingincome(loss) $ 781 $ 778 $ 455 $ 794
SixMonthsEnded
March30,2024 April1,2023
Entertainment Sports
DTCStreaming
Businesses Entertainment Sports
DTCStreaming
Businesses
LinearNetworks $ 1,988 $ 818 $ 2,289 $ 771
DTCstreamingbusinesses(Direct-to-
ConsumerandESPN+businesses) (91)  (143) $ (234) (1,571)  (141) $ (1,712)
ContentSales/LicensingandOther (242)  — 82 —
Segmentoperatingincome $ 1,655 $ 675 $ 800 $ 630
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FORWARD-LOOKINGSTATEMENTS
Certainstatementsandinformationinthisearningsreleasemayconstitute“forward-lookingstatements”
withinthemeaningofthePrivateSecuritiesLitigationReformActof1995,includingstatementsregardingfinancial
performance,earningsexpectations,expecteddriversandguidance,includingfutureoperatingincome,adjusted
EPS,freecashflow,capitalallocation,includingsharerepurchases,plansfordirect-to-consumerprofitabilityand
timing;valueof,andopportunitiesforgrowthbasedon,ourintellectualproperty,contentofferings,businesses
andassets;businessplans;plans,expectations,strategicprioritiesandinitiatives,consumersentiment,behavior
ordemandanddriversofgrowthandprofitabilityandotherstatementsthatarenothistoricalinnature.Any
informationthatisnothistoricalinnatureincludedinthisearningsreleaseissubjecttochange.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,asset
acquisitionsordispositions,neworexpandedbusinesslinesorcessationofcertainoperations),ourexecutionof
ourbusinessplans(includingthecontentwecreateandIPweinvestin,ourpricingdecisions,ourcoststructure
andourmanagementandotherpersonneldecisions),ourabilitytoquicklyexecuteoncostrationalizationwhile
preservingrevenue,thediscoveryofadditionalinformationorotherbusinessdecisions,aswellasfrom
developmentsbeyondtheCompany’scontrol,including:
• theoccurrenceofsubsequentevents;
• deteriorationindomesticandglobaleconomicconditionsorfailureofconditionstoimproveas
anticipated;
• deteriorationinorpressuresfromcompetitiveconditions,includingcompetitiontocreateoracquire
content,competitionfortalentandcompetitionforadvertisingrevenue;
• consumerpreferencesandacceptanceofourcontent,offerings,pricingmodelandpriceincreases,and
correspondingsubscriberadditionsandchurn,andthemarketforadvertisingsalesonourDTCservices
andlinearnetworks;
• healthconcernsandtheirimpactonourbusinessesandproductions;
• international,politicalormilitarydevelopments;
• regulatoryandlegaldevelopments;
• technologicaldevelopments;
• labormarketsandactivities,includingworkstoppages;
• adverseweatherconditionsornaturaldisasters;and
• availabilityofcontent.
Suchdevelopmentsmayfurtheraffectentertainment,travelandleisurebusinessesgenerallyandmay,
amongotherthings,affect(orfurtheraffect,asapplicable):
• ouroperations,businessplansorprofitability,includingdirect-to-consumerprofitability;
• demandforourproductsandservices;
• theperformanceoftheCompany’scontent;
• ourabilitytocreateorobtaindesirablecontentatorunderthevalueweassignthecontent;
• theadvertisingmarketforprogramming;
• incometaxexpense;and
• performanceofsomeorallCompanybusinesseseitherdirectlyorthroughtheirimpactonthosewho
distributeourproducts.
AdditionalfactorsaresetforthintheCompany’sAnnualReportonForm10-Kfortheyearended
September30,2023,includingunderthecaptions“RiskFactors,”“Management’sDiscussionandAnalysisof
FinancialConditionandResultsofOperations,”and“Business,”quarterlyreportsonForm10-Q,includingunder
thecaptions“RiskFactors”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsof
Operations,”andsubsequentfilingswiththeSecuritiesandExchangeCommission.
Theterms“Company,”“we,”and“our”areusedinthisreporttorefercollectivelytotheparentcompanyand
thesubsidiariesthroughwhichourvariousbusinessesareactuallyconducted.
22
CONFERENCECALLINFORMATION
Inconjunctionwiththisrelease,TheWaltDisneyCompanywillhostaconferencecalltoday,May7,
2024,at8:30AMEDT/5:30AMPDTviaaliveWebcast.ToaccesstheWebcastgotowww.disney.com/
investors.Thecorrespondingearningspresentationandwebcastreplaywillalsobeavailableonthesite.
CONTACTS:
DavidJefferson
CorporateCommunications
818-560-4832
AlexiaQuadrani
InvestorRelations
818-560-6601
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