Net Interest Expense and Other Net interest (expense) and other is as follows:
Quarter Ended December 31, |
|||
| --------------- | |||
2002 |
2001 |
||
| ------- | ------ | ||
| Interest expense | $(187) | $(169) | |
| Interest and investment income (loss) | (109) | 224 | |
| ------- | ------- | ||
| Net interest expense and other | $(296) | $ 55 | |
| ====== | ====== | ||
Net interest expense and other was $296 million for the quarter, compared to income totaling $55 million in the prior-year quarter. Interest and investment income and loss include the $114 million United write-off in the current quarter and the $216 million Knight-Ridder gain in the prior-year quarter. Higher interest expense was primarily due to a full quarter of the incremental borrowings from the ABC Family acquisition which closed midway through the prior-year quarter.
Equity in the Income of Investees
Income from equity investees, consisting primarily of Euro Disney, A&E Television, Lifetime Television and E! Entertainment Television, increased 29% to $90 million for the quarter primarily due to an increase in advertising revenue at the cable channel investments.
FORWARD-LOOKING STATEMENTS
Management believes certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including further restructuring or strategic initiatives and actions relating to the Company's strategic sourcing initiative, as well as from developments beyond the Company's control, including international, political and military developments that may affect travel and leisure businesses generally; changes in domestic and global economic conditions that may, among other things, affect the performance of the Company's theatrical and home entertainment releases, the advertising market for broadcast and cable television programming and consumer products. Changes in domestic competitive conditions and technological developments may also affect performance of all significant Company businesses.
The Walt Disney
Company |
|||
Quarter Ended December 31, |
|||
| 2002 | 2001 | ||
| Revenues | $7,466 | $7,016 | |
| Costs and expenses | (6,790) | (6,367) |
|
| Amortization of intangible assets | (5) | (3) |
|
| Net interest (expense) and other
|
(296) | 55 | |
| Equity in the income of investees
|
90 | 70 |
|
| ------- | ------- | ||
| Income before income taxes and minority interests | 465 | 771 | |
| Income taxes | (187) | (299) | |
| Minority interests | (22) | (34) | |
| ------- | ------- | ||
| Net income | $256 | $438 | |
| ======= | ======= | ||
| Earnings per share (basic and diluted) | $0.13 | $0.21 | |
| ======= | ======= | ||
| Average number of common and common equivalent
shares outstanding: |
|||
| Diluted | 2,044 | 2,040 | |
| ======= | ======= | ||
| Basic | 2,042 | 2,039 | |