The Walt Disney Company |
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| Three Months | Six Months | |||
| Ended March 31 | Ended March 31 | |||
| 2002 | 2001 | 2002 | 2001 | |
| Revenues | $ 5,904 | $ 6,049 | $12,952 | $13,482 |
| Costs and expenses | (5,299) | (5,133) | (11,698) | (11,416) |
| Amortization of intangible assets | (2) | (184) | (5) | (477) |
| Gain on sale of business | - | - | - | 22 |
| Net interest expense and other | (158) | (98) | (103) | (207) |
| Equity in the income of investees | 49 | 66 | 119 | 148 |
| Restructuring and impairment charges | - | (996) | - | (1,190) |
| Income before income taxes, minority interests and the cumulative effect of accounting changes | 494 | (296) | 1,265 | 362 |
| Income taxes | (205) | (238) | (504) | (624) |
| Minority interests | (30) | (33) | (64) | (63) |
| Income before the cumulative effect of accounting changes | 259 | (567) | 697 | (325) |
| Cumulative effect of accounting changes: | ||||
| Film accounting | - | - | - | (228) |
| Derivative accounting | - | - | - | (50) |
| Net income (loss) | $ 259 | $ (567) | $ 697 | $ (603) |
| Earnings (loss) attributed to: | ||||
| Disney common stock | $ 259 | $ (548) | $ 697 | $ (486) |
| Internet Group common stock | - | (19) | - | (117) |
| $ 259 | $ (567) | $ 697 | $ (603) | |
| Earnings (loss) per share before | ||||
| the cumulative effect of accounting changes attributed to: | ||||
| Disney common stock (basic and diluted) | $ 0.13 | $ (0.26) | $ 0.34 | $ (0.10) |
| Internet Group common stock (basic and diluted) | $ n/a | $ (0.45) | $ n/a | $ (2.72) |
| Earnings (loss) per share including the cumulative effect of accounting changes attributed to: | ||||
| Disney common stock (basic and diluted) (1) | $ 0.13 | $ (0.26) | $ 0.34 | $ (0.23) |
| Internet Group common stock (basic and diluted) | $ n/a | $ (0.45) | $ n/a | $ (2.72) |
| Earnings (loss) attributed to Disney common stock before the cumulative effect of accounting changes adjusted for the impact of SFAS 142 in fiscal 2001 | $ 259 | $ (449) | $ 697 | $ (9) |
| Earnings (loss) per share attributed to Disney common stock before the cumulative effect of accounting changes adjusted for the impact of SFAS 142 in fiscal 2001 | ||||
| Diluted | $ 0.13 | $ (0.21) | $ 0.34 | $ 0.00 |
| Basic | $ 0.13 | $ (0.22) | $ 0.34 | $ 0.00 |
| Average number of common and common equivalent shares outstanding: | ||||
| Disney: | ||||
| Diluted | 2,045 | 2,098 | 2,043 | 2,101 |
| Basic | 2,039 | 2,082 | 2,039 | 2,082 |
| Internet Group (basic and diluted) | n/a |
42 | n/a | 43 |
| (1) The per share impacts of the film and derivative accounting changes for the six month period were ($0.11) and ($0.02), respectively. | ||||
The Walt Disney
Company |
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| Three Months | Six Months | |||
| Ended March 31 | Ended March 31 | |||
| 2002 | 2001 | 2002 | 2001 | |
| Revenues | $ 5,904 | $ 6,215 | $12,983 | $13,792 |
| Costs and expenses | (5,299) | (5,237) | (11,725) | (11,590) |
| Amortization of intangible assets | (2) | (5) | (5) | (13) |
| Gain on sale of business | - | - | - | 22 |
| Net interest expense and other | (158) | (151) | (115) | (316) |
| Equity in the income of investees | 49 | 67 | 119 | 153 |
| Restructuring and impairment charges | - | (134) | - | (328) |
| Income before income taxes, minority interests and the cumulative effect of accounting changes | 494 | 755 | 1,257 | 1,720 |
| Income taxes | (205) | (283) | (501) | (688) |
| Minority interests | (30) | (32) | (64) | (63) |
| Income before the cumulative effect of accounting changes | 259 | 440 | 692 | 969 |
| Cumulative effect of accounting changes: | ||||
| Film accounting | - | - | - | (228) |
| Derivative accounting | - | - | - | (50) |
| Net income | $ 259 | $ 440 | $ 692 | $ 691 |
| Earnings per share before the cumulative effect of accounting changes (basic and diluted) | $ 0.13 | $ 0.21 | $ 0.34 | $ 0.46 |
| Earnings per share including the cumulative effect of accounting changes (basic and diluted) (1) | $ 0.13 | $ 0.21 | $ 0.34 | $ 0.33 |
| Earnings before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002, restructuring and impairment charges and gain on the sale of business in fiscal 2001 | $ 259 | $ 524 | $ 556 | $ 1,181 |
| Earnings per share before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002, restructuring and impairment charges and gain on the sale of business in fiscal 2001: | ||||
| Diluted | $ 0.13 | $ 0.25 | $ 0.27 | $ 0.56 |
| Basic | $ 0.13 | $ 0.25 | $ 0.27 | $ 0.57 |
| Average number of common and common equivalent shares outstanding: | ||||
| Diluted | 2,045 | 2,105 | 2,043 | 2,108 |
| Basic | 2,039 | 2,089 | 2,039 | 2,090 |
| (1) The per share impacts of the film and derivative accounting changes for the six month period were ($0.11) and ($0.02), respectively. | ||||
| THE WALT DISNEY COMPANY SEGMENT RESULTS | |||||
| For the Six Months Ended March 31 | |||||
| (unaudited, in millions) | |||||
| As Reported | Pro Forma | % | |||
| 2002 | 2001 | 2002 | 2001 | Change | |
| Revenues: | |||||
| Media Networks | $ 5,172 | $ 5,225 | $ 5,202 | $ 5,516 | (6)% |
| Parks and Resorts | 2,958 | 3,374 | 2,958 | 3,374 | (12)% |
| Studio Entertainment | 3,408 | 3,423 | 3,408 | 3,423 | -- |
| Consumer Products | 1,414 | 1,460 | 1,415 | 1,479 | (4)% |
| $12,952 | $13,482 | $12,983 | $13,792 | (6)% | |
| Segment operating income: (1) | |||||
| Media Networks | $ 551 | $ 971 | $ 555 | $ 1,094 | (49)% |
| Parks and Resorts | 467 | 713 | 467 | 713 | (35)% |
| Studio Entertainment | 176 | 316 | 176 | 316 | (44)% |
| Consumer Products | 261 | 256 | 261 | 269 | (3)% |
| $1,455 | $2,256 | $1,459 | $ 2,392 | (39)% | |
| The Company evaluates the performance of its operating segments based on segment operating income. A reconciliation of segment operating income to income before income taxes, minority interests and the cumulative effect of accounting changes is as follows: | |||||
| As Reported | Pro Forma | ||||
| 2002 | 2001 | 2002 | 2001 | ||
| Segment operating income | $ 1,455 | $ 2,256 | $ 1,459 | $ 2,392 | |
| Corporate and unallocated shared expenses | (201) | (190) | (201) | (190) | |
| Amortization of intangible assets | (5) | (477) | (5) | (13) | |
| Gain on sale of business | - | 22 | - | 22 | |
| Net interest expense and other | (103) | (207) | (115) | (316) | |
| Equity in the income of investees | 119 | 148 | 119 | 153 | |
| Restructuring and impairment charges | - | (1,190) | - | (328) | |
| Income before income taxes, minority interests and the cumulative effect of accounting changes | $ 1,265 | $ 362 | $ 1,257 | $ 1,720 | |
| (1) Segment EBITDA is as follows: | |||||
| As Reported | Pro Forma | ||||
| 2002 | 2001 | 2002 | 2001 | ||
| Media Networks | $ 642 | $ 1,060 | $ 647 | $ 1,185 | |
| Parks and Resorts | 789 | 995 | 789 | 995 | |
| Studio Entertainment | 197 | 340 | 197 | 340 | |
| Consumer Products | 290 | 305 | 290 | 318 | |
| $ 1,918 | $ 2,700 | $ 1,923 | $ 2,838 | ||
| MEDIA NETWORKS | |||
| (unaudited, in millions) | |||
Pro Forma |
|||
| Quarter Ended March 31 | 2002 | 2001 | % Change |
| Revenues: | |||
| Broadcasting | $ 1,290 | $ 1,513 | (15)% |
| Cable Networks | 906 | 904 | -- |
| $ 2,196 | $ 2,417 | (9)% | |
| Segment operating income (loss): | |||
| Broadcasting | $ (11) | $ 167 | n/m |
| Cable Networks | 320 | 336 | (5)% |
| $ 309 | $ 503 | (39)% | |
Pro Forma |
|||
| Six Months Ended March 31 | 2002 | 2001 | % Change |
| Revenues: | $ 2,766 | $ 3,315 | (17)% |
| Broadcasting | 2,436 | 2,201 | 11 % |
| Cable Networks | $ 5,202 | $ 5,516 | (6)% |
| Segment operating income (loss): | $ (87) |
$ 454 | n/m |
| Broadcasting | 642 |
640 | -- |
| Cable Networks | $ 555 | $ 1,094 | (49)% |
| CABLE TELEVISION ACTIVITIES | |||
| (unaudited, in millions) | |||
| Pro Forma | |||
| Quarter Ended March 31 | 2002 | 2001 | % Change |
| Operating income: | |||
| Cable Networks | $ 320 | $ 336 | (5)% |
| Equity investments: | |||
| A&E, Lifetime and E! Entertainment Television | 128 | 170 | (25)% |
| Other | 36 | 56 | (36)% |
| 484 | 562 | (14)% | |
| Partner share of operating income | (136) | (190) | 28 % |
| Disney share of operating income | $ 348 | $ 372 | (6)% |
| Pro Forma | |||
| Six Months Ended March 31 | 2002 | 2001 | % Change |
| Operating income: | |||
| Cable Networks | $ 642 | $ 640 | -- |
| Equity investments: | |||
| A&E, Lifetime and E! Entertainment Television | 294 | 356 | (17)% |
| Other | 101 | 122 | (17)% |
| 1,037 | 1,118 | (7)% | |
| Partner share of operating income | (328) | (396) | 17 % |
| Disney share of operating income | $ 709 | $ 722 | (2)% |
| Note: Amounts presented in this table represent 100% of the operating income for all of the Company's cable businesses. The Disney share of operating income represents the Company's ownership interest in cable television operating income. Cable networks are reported in "Segment operating income" in the consolidated statements of income. Equity investments are accounted for under the equity method and the Company's proportionate share of the net income of its cable equity investments is reported in "Equity in the income of investees" in the consolidated statements of income. | |||
| The following table provides a reconciliation of as-reported earnings per share attributed to Disney common stock to pro forma earnings per share before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002 and restructuring and impairment charges and gain on the sale of business in fiscal 2001 (unaudited). | ||||
| Three Months Ended March 31 |
Six Months Ended March 31 |
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| 2002 | 2001 | 2002 | 2001 | |
| As-reported earnings per share attributed to Disney common stock | $ 0.13 | $ (0.26) | $ 0.34 | $ (0.23) |
| Adjustment to attribute 100% of Internet Group operating results to Disney common stock (72% included in as- reported amounts) | -- | (0.01) | -- | (0.06) |
| Adjustment to exclude GO.com restructuring and impairment charges | -- | 0.40 | -- | 0.40 |
| Adjustment to exclude pre-closure GO.com portal operating results and amortization of intangible assets | -- | 0.02 | -- | 0.09 |
| Adjustment to reflect the impact of the new SFAS 142 accounting rules | -- | 0.06 | -- | 0.13 |
| Adjustment to exclude the cumulative effect of accounting changes | -- | -- | -- | 0.13 |
| Pro forma earnings per share before the cumulative effect of accounting changes | 0.13 | 0.21 | 0.34 | 0.46 |
| Adjustment to exclude restructuring and impairment charges | -- | 0.04 | -- | 0.10 |
| Adjustment to exclude fiscal 2002 investment gain | -- | -- | (0.07) | -- |
| Pro forma earnings per share before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002, restructuring and impairment charges and gain on the sale of business | $ 0.13 | $ 0.25 | $ 0.27 | $ 0.56 |
| The impact on fiscal 2001 of the gain on sale of business and the pro forma impact of ABC Family had less than a $0.01 impact. | ||||
--Posted April 26, 2002
Formatted: LaughingPlace.com
Source: Walt Disney Company Press Release