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The Walt Disney Company Reports Second Quarter Earnings
-- EPS from continuing operations for the second quarter increased 35% to $0.58 compared to $0.43 in the prior-year quarter -- Net income for the quarter increased 22% to $1.1 billion -- Segment operating income for the quarter increased 21% to $2.1 billion, led by strong growth at Media Networks, Studio Entertainment and Parks and Resorts
BURBANK, Calif., May 06, 2008 (BUSINESS WIRE) -- The Walt Disney Company (NYSE:DIS) today reported earnings for the
second fiscal quarter and six months ended March 29, 2008. Diluted
earnings per share (EPS) for the second quarter increased to $0.58,
compared to $0.44 in the prior-year quarter. Earnings per share from
continuing operations in the prior-year quarter totaled $0.43.
For the six-month period, diluted EPS was $1.21. EPS for the
prior-year six-month period, which included gains on sales of our
interests in E! Entertainment and Us Weekly, income from the
discontinued operations of the ABC Radio business, and an equity-based
compensation plan modification charge, which were all recognized in
the first quarter of fiscal 2007, were $1.24. Excluding these items,
EPS for the six-month period increased 30% to $1.21 from $0.93 in the
prior-year six months.
"We had an outstanding quarter financially and creatively at The
Walt Disney Company," said Robert A. Iger, president and chief
executive officer. "This performance demonstrates how The Disney
Difference gives us a critical and sustainable market advantage. That
difference centers on our proven ability to create high-quality
content across our wide-ranging distribution and promotional
platforms, allowing us to leverage our hits and grow our company."
The following table summarizes the second quarter and six-month
results for fiscal 2008 and 2007 (in millions, except per share
amounts):
Quarter Ended Six Months Ended
--------------- -----------------
March March March March
29, 31, 29, 31,
2008 2007 Change 2008 2007 Change
------- ------- ------ -------- -------- ------
Revenues $8,710 $7,954 10 % $19,162 $17,535 9 %
Segment operating
income (1) $2,140 $1,764 21 % $ 4,389 $ 3,714 18 %
Income from continuing
operations (2) $1,133 $ 919 23 % $ 2,383 $ 2,595 (8)%
Diluted EPS from
continuing operations
(2) $ 0.58 $ 0.43 35 % $ 1.21 $ 1.22 (1)%
Diluted EPS (2) $ 0.58 $ 0.44 32 % $ 1.21 $ 1.24 (2)%
Cash provided by
continuing operations $2,603 $2,206 18 % $ 3,265 $ 2,698 21 %
Free cash flow (1) $2,256 $1,905 18 % $ 2,669 $ 2,152 24 %
(1) Aggregate segment operating income and free cash flow are
non-GAAP financial measures. See the discussion of non-GAAP financial
measures below.
(2) Results for the six months ended March 31, 2007 included gains
on the sales of equity investments in E! Entertainment and Us Weekly,
income from the discontinued ABC Radio business and a charge related
to a modification of equity-based compensation plans in connection
with the ABC Radio transaction. Diluted EPS for the six months ended
March 31, 2007 excluding these items was $0.93. See the discussion of
non-GAAP financial measures below.
SEGMENT RESULTS
The following table summarizes the second quarter and six-month
segment operating results for fiscal 2008 and 2007 (in millions):
Quarter Ended Six Months Ended
--------------- -----------------
March March March March
29, 31, 29, 31,
2008 2007 Change 2008 2007 Change
------- ------- ------ -------- -------- ------
Revenues (1)(2):
Media Networks $3,612 $3,456 5 % $ 7,781 $ 7,242 7 %
Parks and Resorts 2,725 2,446 11 % 5,497 4,935 11 %
Studio Entertainment 1,822 1,550 18 % 4,463 4,183 7 %
Consumer Products 551 502 10 % 1,421 1,175 21 %
------- ------- -------- --------
$8,710 $7,954 10 % $19,162 $17,535 9 %
======= ======= ======== ========
Segment operating
income (1)(2):
Media Networks $1,317 $1,152 14 % $ 2,225 $ 1,860 20 %
Parks and Resorts 339 254 33 % 844 659 28 %
Studio Entertainment 377 234 61 % 891 837 6 %
Consumer Products 107 124 (14)% 429 358 20 %
------- ------- -------- --------
$2,140 $1,764 21 % $ 4,389 $ 3,714 18 %
======= ======= ======== ========
(1) Beginning with the first quarter fiscal 2008 financial
statements, the Company began reporting Hyperion Publishing in the
Media Networks segment. Previously, Hyperion Publishing had been
reported in the Consumer Products segment. Prior-period amounts (which
are not material) have been reclassified to conform to the current
year presentation.
(2) Operating results of the ABC Radio business are reported as
discontinued operations for the prior-year quarter and six months and
therefore have been excluded from the prior-year quarter and six-month
segment results.
Media Networks
Media Networks revenues for the quarter increased 5% to $3.6
billion and segment operating income increased 14% to $1.3 billion.
The following table provides further detail of the Media Networks
results (in millions):
Six Months
Quarter Ended Ended
--------------- ---------------
March March March March
29, 31, 29, 31,
2008 2007 Change 2008 2007 Change
------- ------- ------ ------- ------- ------
Revenues:
Cable Networks $2,110 $1,931 9 % $4,522 $4,067 11 %
Broadcasting 1,502 1,525 (2)% 3,259 3,175 3 %
------- ------- ------- -------
$3,612 $3,456 5 % $7,781 $7,242 7 %
======= ======= ======= =======
Segment operating
income:
Cable Networks $1,094 $ 961 14 % $1,680 $1,422 18 %
Broadcasting 223 191 17 % 545 438 24 %
------- ------- ------- -------
$1,317 $1,152 14 % $2,225 $1,860 20 %
======= ======= ======= =======
Cable Networks
Operating income at Cable Networks increased 14% to $1.1 billion
for the quarter primarily due to growth at ESPN and, to a lesser
extent, higher income from our cable equity investments. The growth at
ESPN was driven by higher affiliate revenue primarily due to
contractual rate increases and subscriber growth, and advertising
revenues driven by higher rates, partially offset by higher
programming, administrative and marketing costs. Higher programming
costs were driven by increased rights costs arising from college
basketball contract renewals. Growth from our cable equity investments
was primarily due to higher affiliate and advertising revenue at
Lifetime and A&E.
Broadcasting
Operating income at Broadcasting increased 17% to $223 million for
the quarter primarily due to the strong performance of ABC Studios
productions in international markets, led by Grey's Anatomy and Lost.
This growth was partially offset by the impact of the Writer's Guild
of America strike which limited the airing of original scripted
programming in primetime on the ABC Television Network resulting in
lower ratings and advertising revenues. The negative impact of the
strike on advertising revenue was partially offset by higher
advertising rates and lower programming costs due to the reduction in
hours of original scripted programming.
Parks and Resorts
Parks and Resorts revenues for the quarter increased 11% to $2.7
billion and segment operating income increased 33% to $339 million.
Operating income growth was due to improved results in our domestic
businesses and at Disneyland Resort Paris, both of which were
favorably impacted by the shift of the Easter holiday from the third
quarter in fiscal 2007 to the second quarter in fiscal 2008.
Domestic Resorts
Operating income growth at the domestic businesses was primarily
due to increased guest spending and theme park attendance at the Walt
Disney World Resort and higher revenues at Disney Vacation Club,
partially offset by higher operating costs at the Walt Disney World
Resort. Increased guest spending was due to higher average daily hotel
room rates, higher average ticket prices and increased food and
beverage spending. Higher attendance was primarily driven by the
benefit of the shift of the Easter holiday. The increase in operating
costs was driven by labor cost inflation, new guest offerings and
volume-related expenses. The benefit from higher revenues at Disney
Vacation Club reflected extensions of the term of ownership on certain
existing vacation home properties and higher rentals of vacation club
units.
International Resorts
Operating income growth at Disneyland Resort Paris was primarily
due to increased attendance and higher guest spending, partially
offset by higher operating costs. Increased guest spending was driven
by higher average daily hotel room rates. Higher operating costs were
driven by volume-related expenses and labor cost inflation.
Studio Entertainment
Studio Entertainment revenues for the quarter increased 18% to
$1.8 billion and segment operating income increased 61% to $377
million. Segment operating income growth was primarily due to
increases in domestic home entertainment and worldwide theatrical
distribution.
The growth in domestic home entertainment was driven by higher
unit sales reflecting the performance of current quarter titles, which
included Enchanted, Game Plan and No Country for Old Men as compared
to Peter Pan Platinum Release, The Guardian and The Prestige in the
prior-year quarter.
The increase in worldwide theatrical distribution was driven by
lower distribution expenses due to significant marketing costs in the
prior-year quarter for Meet the Robinsons, which was released at the
end of March 2007, and the domestic performance of current quarter
titles led by the continued success of National Treasure 2: Book of
Secrets and the release of Hannah Montana/Miley Cyrus: Best of Both
Worlds. In international markets, the improvement was primarily due to
the strong performance of Enchanted and National Treasure 2: Book of
Secrets.
Consumer Products
Consumer Products revenues for the quarter increased 10% to $551
million and segment operating income decreased 14% to $107 million.
Lower segment operating income for the quarter was primarily due to
lower recognition of minimum guarantee revenues at Merchandise
Licensing and decreased revenue from licensed product at Disney
Interactive Studios reflecting our continuing transition towards
self-published titles. These decreases were partially offset by higher
earned royalties at Merchandise Licensing and higher sales of
self-published titles at Disney Interactive Studios. Higher earned
royalties were driven by sales of Hannah Montana and High School
Musical merchandise and increased sales at Disney Interactive Studios
reflected the performance of Turok and High School Musical in the
current quarter compared to Meet the Robinsons and Spectrobes in the
prior-year quarter.
OTHER FINANCIAL INFORMATION
Corporate and Unallocated Shared Expenses
Corporate and unallocated shared expenses decreased from $130
million to $98 million for the quarter driven by an increase in the
allocation of costs to the business segments and the timing of
expenses in various corporate departments.
Net Interest Expense
Net interest expense was as follows (in millions):
Quarter Ended
-------------------
March 29, March 31,
2008 2007
--------- ---------
Interest expense $(186) $(167)
Interest and investment income 39 37
--------- ---------
Net interest expense $(147) $(130)
========= =========
The increase in interest expense for the quarter was primarily due
to higher average debt balances.
Minority Interests
Minority interest expense increased from $3 million to $50 million
for the quarter due to the impacts of decreased losses at Hong Kong
Disneyland and Disneyland Resort Paris and increased profits at ESPN.
The minority interest is determined on income after royalties,
financing costs and income taxes.
Cash Flow
Cash provided by continuing operations and free cash flow were as
follows (in millions):
Six Months Ended
--------------------
March 29, March 31,
2008 2007 Change
---------- --------- ------
Cash provided by continuing operations $ 3,265 $2,698 $567
Investments in parks, resorts and
other property (596) (546) (50)
---------- --------- ------
Free cash flow (1) $ 2,669 $2,152 $517
========== ========= ======
(1) Free cash flow is not a financial measure defined by GAAP. See
the discussion of non-GAAP financial measures that follows below.
Cash provided by operations increased by $567 million to $3.3
billion primarily due to higher segment operating income and the
timing of payments for accounts payable and accrued expenses,
partially offset by the timing of accounts receivable collections and
higher investments in Disney Vacation Club properties.
Capital Expenditures and Depreciation Expense
Investments in parks, resorts and other property by segment were
as follows (in millions):
Six Months Ended
-------------------
March 29, March 31,
2008 2007
--------- ---------
Media Networks $ 98 $ 73
Parks and Resorts:
Domestic 305 269
International 73 127
--------- ---------
Total Parks and Resorts 378 396
--------- ---------
Studio Entertainment 60 34
Consumer Products 19 11
Corporate 41 32
--------- ---------
Total investments in parks, resorts and other
property $ 596 $ 546
========= =========
Depreciation expense by segment was as follows (in millions):
Six Months Ended
-------------------
March 29, March 31,
2008 2007
--------- ---------
Media Networks
Cable Networks $ 44 $ 44
Broadcasting 50 44
--------- ---------
Total Media Networks 94 88
--------- ---------
Parks and Resorts
Domestic 400 396
International 167 147
--------- ---------
Total Parks and Resorts 567 543
--------- ---------
Studio Entertainment 18 16
Consumer Products 10 9
Corporate 60 66
--------- ---------
Total depreciation expense $ 749 $ 722
========= =========
Share Repurchases
During the first six months of fiscal 2008, the Company
repurchased 61 million shares for $2.0 billion, of which 30 million
shares were purchased for $0.9 billion in the second quarter. As of
March 29, 2008, the Company had authorization in place to repurchase
approximately 262 million additional shares, of which the Company has
repurchased 13 million shares for $418 million subsequent to
quarter-end through May 5, 2008.
Borrowings
Total borrowings and net borrowings are detailed below (in
millions):
March 29, Sept. 29,
2008 2007 Change
--------- --------- -------
Current portion of borrowings $ 2,861 $ 3,280 $ (419)
Long-term borrowings 12,929 11,892 1,037
--------- --------- -------
Total borrowings 15,790 15,172 618
Less: cash and cash equivalents (3,860) (3,670) (190)
--------- --------- -------
Net borrowings (1) $11,930 $11,502 $ 428
========= ========= =======
(1) Net borrowings is a non-GAAP financial measure. See the
discussion of non-GAAP financial measures that follows.
The total borrowings shown above include $3,930 million and $3,583
million attributable to Euro Disney and Hong Kong Disneyland as of
March 29, 2008 and September 29, 2007, respectively. Cash and cash
equivalents attributable to Euro Disney and Hong Kong Disneyland
totaled $594 million and $604 million as of March 29, 2008 and
September 29, 2007, respectively.
In April 2008, the Company completed the redemption of its $1.3
billion of 2.125% convertible senior notes due 2023 (the Notes).
Substantially all of the Notes were converted into common stock based
on the conversion ratio of 33.9443 for each $1,000 of principal,
resulting in the issuance of 45 million shares of the Company's common
stock.
Non-GAAP Financial Measures
This earnings release presents earnings per share excluding
certain items, net borrowings, free cash flow, and aggregate segment
operating income, all of which are important financial measures for
the Company but are not financial measures defined by GAAP.
These measures should be reviewed in conjunction with the relevant
GAAP financial measures and are not presented as alternative measures
of earnings per share, borrowings, cash flow or net income as
determined in accordance with GAAP. Earnings per share excluding
certain items, net borrowings, free cash flow, and aggregate segment
operating income as we have calculated them may not be comparable to
similarly titled measures reported by other companies.
Earnings per share excluding certain items - The Company uses
earnings per share excluding certain items to evaluate the performance
of the Company's operations exclusive of certain items that impact the
comparability of results from period to period, including significant
dispositions and acquisitions. In the prior-year six months, these
items included gains on sales of equity investments in E!
Entertainment and Us Weekly, income from the discontinued ABC Radio
business and a charge related to a modification of equity-based
compensation plans in connection with the ABC Radio transaction. The
Company believes that information about earnings per share exclusive
of these impacts is useful to investors, particularly where the impact
of the excluded items is significant in relation to reported earnings,
because the measure allows for comparability between periods of the
operating performance of the Company's business and allows investors
to evaluate separately the impact of decisions regarding the sale and
acquisition of interests in businesses from the impact of the
operations of the business. The following table reconciles reported
earnings per share to earnings per share excluding certain items:
Six Months Ended
-------------------
March 29, March 31,
2008 2007 Change
--------- --------- ------
Diluted EPS $ 1.21 $ 1.24 (2)%
Exclude:
Discontinued operations -- (0.02) nm
Gains on sales of equity investments -- (0.31) nm
Equity-based compensation plan nm
modification charge -- 0.01
--------- ---------
Diluted EPS excluding certain items (1) $ 1.21 $ 0.93 30%
========= =========
(1) Diluted EPS excluding certain items may not equal the sum of
the column due to rounding.
Net borrowings - The Company believes that information about net
borrowings provides investors with a useful perspective on our
financial condition. Net borrowings reflect the subtraction of cash
and cash equivalents from total borrowings. Since we earn interest
income on our cash balances that offsets a portion of the interest
expense we pay on our borrowings, net borrowings can be used as a
measure to gauge net interest expense. In addition, a portion of our
cash and cash equivalents is available to repay outstanding
indebtedness when the indebtedness matures or when other circumstances
arise. However, we may not immediately apply cash and cash equivalents
to the reduction of debt, nor do we expect that we would use all of
our available cash and cash equivalents to repay debt in the ordinary
course of business.
Free cash flow - The Company uses free cash flow (cash provided by
continuing 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, make strategic acquisitions and investments
and pay dividends or repurchase shares.
Aggregate segment operating income - The Company evaluates the
performance of its operating segments based on segment operating
income, and management uses aggregate segment operating income as a
measure of the performance of operating businesses separate from
non-operating factors. The Company believes that information about
aggregate segment operating income assists investors by allowing them
to evaluate changes in the operating results of the Company's
portfolio of businesses separate from non-operational factors that
affect net income, thus providing separate insight into both
operations and the other factors that affect reported results.
A reconciliation of segment operating income to net income is as
follows (in millions):
Quarter Ended Six Months Ended
--------------- -----------------
March March March March
29, 31, 29, 31,
2008 2007 2008 2007
------- ------- -------- --------
Segment operating income $2,140 $1,764 $ 4,389 $ 3,714
Corporate and unallocated shared
expenses (98) (130) (191) (237)
Equity-based compensation plan
modification charge -- -- -- (48)
Gains on sales of equity investments -- -- -- 1,052
Net interest expense (147) (130) (270) (287)
------- ------- -------- --------
Income from continuing operations
before income taxes and minority
interests 1,895 1,504 3,928 4,194
Income taxes (712) (582) (1,471) (1,591)
Minority interests (50) (3) (74) (8)
------- ------- -------- --------
Income from continuing operations 1,133 919 2,383 2,595
Discontinued operations, net of tax -- 12 -- 37
------- ------- -------- --------
Net income $1,133 $ 931 $ 2,383 $ 2,632
======= ======= ======== ========
CONFERENCE CALL INFORMATION
In conjunction with this release, The Walt Disney Company will
host a conference call today, May 6, 2008, at 4:30 PM EDT/1:30 PM PDT
via a live Webcast. To access the Webcast go to
www.disney.com/investors. The discussion will be available via replay
through May 20, 2008 at 7:00 PM EDT/4:00 PM PDT.
FORWARD-LOOKING STATEMENTS
Management believes certain statements in this earnings release
may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are
made on the basis of management's views and assumptions regarding
future events and business performance as of the time the statements
are made. Management does not undertake any obligation to update these
statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives (including
capital investments or asset acquisitions or dispositions), as well as
from developments beyond the Company's control, including:
-- adverse weather conditions or natural disasters;
-- health concerns;
-- international, political, or military developments;
-- technological developments; and
-- changes in domestic and global economic conditions,
competitive conditions and consumer preferences.
Such developments may affect travel and leisure businesses
generally and may, among other things, affect:
-- the performance of the Company's theatrical and home
entertainment releases;
-- the advertising market for broadcast and cable television
programming;
-- expenses of providing medical and pension benefits;
-- demand for our products; 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 29, 2007 under Item 1A, "Risk
Factors," and subsequent reports.
The Walt Disney Company
CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)
Quarter Ended Six Months Ended
------------------- -------------------
March 29, March 31, March 29, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 8,710 $ 7,954 $ 19,162 $ 17,535
Costs and expenses (6,812) (6,441) (15,231) (14,348)
Gains on sales of equity
investments -- -- -- 1,052
Net interest expense (147) (130) (270) (287)
Equity in the income of
investees 144 121 267 242
--------- --------- --------- ---------
Income from continuing
operations before income
taxes and minority interests 1,895 1,504 3,928 4,194
Income taxes (712) (582) (1,471) (1,591)
Minority interests (50) (3) (74) (8)
--------- --------- --------- ---------
Income from continuing
operations 1,133 919 2,383 2,595
Discontinued operations, net
of tax -- 12 -- 37
--------- --------- --------- ---------
Net income $ 1,133 $ 931 $ 2,383 $ 2,632
========= ========= ========= =========
Diluted earnings per share:
Earnings per share,
continuing operations (1) 0.58 0.43 1.21 1.22
Earnings per share,
discontinued operations -- 0.01 -- 0.02
--------- --------- --------- ---------
Earnings per share (1) $ 0.58 $ 0.44 $ 1.21 $ 1.24
========= ========= ========= =========
Basic earnings per share:
Earnings per share,
continuing operations 0.60 0.45 1.26 1.27
Earnings per share,
discontinued operations -- 0.01 -- 0.02
--------- --------- --------- ---------
Earnings per share (2) $ 0.60 $ 0.46 $ 1.26 $ 1.28
========= ========= ========= =========
Weighted average number of
common and common equivalent
shares outstanding:
Diluted 1,960 2,129 1,974 2,138
========= ========= ========= =========
Basic 1,883 2,039 1,893 2,049
========= ========= ========= =========
(1) The calculation of diluted earnings per share assumes the
conversion of the Company's convertible senior notes issued in April
2003 and adds back interest expense (net of tax) of $6 million and $11
million for the quarter and six months ended March 29, 2008,
respectively, and $6 million and $11 million for the quarter and six
months ended March 31, 2007, respectively.
(2) Earnings per share may not equal the sum of the column due to
rounding.
The Walt Disney Company
CONSOLIDATED BALANCE SHEETS
(unaudited; in millions, except per share data)
March 29, Sept. 29,
2008 2007
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 3,860 $ 3,670
Receivables 5,595 5,032
Inventories 841 641
Television costs 646 559
Deferred income taxes 862 862
Other current assets 592 550
--------- ---------
Total current assets 12,396 11,314
Film and television costs 4,878 5,123
Investments 1,154 995
Parks, resorts and other property, at cost
Attractions, buildings and equipment 31,248 30,260
Accumulated depreciation (16,035) (15,145)
--------- ---------
15,213 15,115
Projects in progress 1,159 1,147
Land 1,185 1,171
--------- ---------
17,557 17,433
Intangible assets, net 2,473 2,494
Goodwill 22,094 22,085
Other assets 1,739 1,484
--------- ---------
$ 62,291 $ 60,928
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and other accrued liabilities $ 5,399 $ 5,949
Current portion of borrowings 2,861 3,280
Unearned royalties and other advances 2,996 2,162
--------- ---------
Total current liabilities 11,256 11,391
Borrowings 12,929 11,892
Deferred income taxes 2,321 2,573
Other long-term liabilities 3,851 3,024
Minority interests 1,146 1,295
Commitments and contingencies
Shareholders' equity
Preferred stock, $.01 par value
Authorized - 100 million shares, Issued -
none -- --
Common stock, $.01 par value
Authorized - 3.6 billion shares, Issued -
2.6 billion shares at March 29, 2008 and at
September 29, 2007 24,602 24,207
Retained earnings 26,381 24,805
Accumulated other comprehensive loss (122) (157)
--------- ---------
50,861 48,855
Treasury stock, at cost, 698.8 million shares
at March 29, 2008 and 637.8 million shares at
September 29, 2007 (20,073) (18,102)
--------- ---------
30,788 30,753
--------- ---------
$ 62,291 $ 60,928
========= =========
The Walt Disney Company
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
Six Months Ended
-------------------
March 29, March 31,
2008 2007
--------- ---------
OPERATING ACTIVITIES OF CONTINUING OPERATIONS
Net income $ 2,383 $ 2,632
Income from discontinued operations -- (37)
Depreciation and amortization 776 734
Gains on sales of equity investments -- (1,052)
Deferred income taxes 60 (32)
Equity in the income of investees (267) (242)
Cash distributions received from equity
investees 257 203
Minority interests 74 8
Net change in film and television costs 56 38
Equity-based compensation 201 233
Other 114 93
Changes in operating assets and
liabilities:
Receivables (481) (237)
Inventories (128) 72
Other assets (6) 130
Accounts payable and other accrued
liabilities 397 (34)
Income taxes (171) 189
--------- ---------
Cash provided by continuing operations 3,265 2,698
--------- ---------
INVESTING ACTIVITIES OF CONTINUING OPERATIONS
Investments in parks, resorts and other property (596) (546)
Proceeds from sales of equity investments -- 1,530
Acquisitions (including equity investments) (163) (167)
Other (48) 133
--------- ---------
Cash (used) provided by continuing investing
activities (807) 950
--------- ---------
FINANCING ACTIVITIES OF CONTINUING OPERATIONS
Commercial paper borrowings, net (616) 134
Borrowings 881 186
Reduction of borrowings (150) (1,260)
Dividends (664) (637)
Repurchases of common stock (1,967) (3,256)
Exercise of stock options and other 248 854
--------- ---------
Cash used by continuing financing activities (2,268) (3,979)
--------- ---------
CASH FLOW OF DISCONTINUED OPERATIONS
Net cash provided by operating activities of
discontinued operations -- 62
Net cash used by investing activities of
discontinued operations -- --
Net cash provided by financing activities of
discontinued operations -- 40
--------- ---------
Increase / (decrease) in cash and cash equivalents 190 (229)
Cash and cash equivalents, beginning of period 3,670 2,411
--------- ---------
Cash and cash equivalents, end of period $ 3,860 $ 2,182
========= =========
SOURCE: The Walt Disney Company
The Walt Disney Company Corporate Communications Zenia Mucha, 818-560-5300 Jonathan Friedland, 818-560-8306 Lowell Singer, 818-560-6601
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