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1、February7,2024THEWALTDISNEYCOMPANYREPORTSFIRSTQUARTEREARNINGSFORFISCAL2024BURBANK,Calif.TheWaltDisneyCompanytodayreportedearningsforitsfirstquarterendedDecember30,2023.FinancialResultsfortheQuarter:Revenuesforthequarterwerecomparabletotheprior-yearquarterat$23.5billion.Dilutedearningspershare(EPS)fo

2、rthequarterincreasedto$1.04from$0.70intheprior-yearquarter.Excludingcertainitems(1),dilutedEPSforthequarterincreasedto$1.22from$0.99intheprior-yearquarter.KeyPoints:Ourfirstquarterearningsresultsreflecttheprogresswevemadeinourstrategictransformation,aswecontinuetobuildfromapositionofstrength.Weareac

3、hievingsignificantcostreductionsacrossourbusinesses,asevidencedbytherealizationofover$500millioninselling,generalandadministrativeandotheroperatingexpensesavingsacrosstheenterpriseinthefirstquarter.Weareontracktomeetorexceedour$7.5billionannualizedsavingstargetbytheendoffiscal2024,whilewecontinuetol

4、ookforfurtherefficiencyopportunities.Basedonthestrengthoffirstquarterresultsaswellasourexpectationsforthebalanceoftheyear,weexpectfullyearfiscal2024earningspershareexcludingcertainitems(1)toincreasebyatleast20%versus2023,toapproximately$4.60.Further,wecontinuetoexpectfreecashflow(1)generationinfisca

5、l2024tototalroughly$8billion.Wecontinuetoexpecttoreachprofitabilityatourcombinedstreamingbusinessesinthefourthquarteroffiscal2024,andaremakingtremendousprogressinthisarea,withfirstquarterEntertainmentDTCoperatinglossesimprovingbynearly$300millionversusthepriorquarter.Webelievethisbusinesswillultimat

6、elybeakeyearningsgrowthdriverfortheCompany.Hulusubscribersincreasedby1.2millionfromthepriorquarter.Disney+Coresubscribersdecreasedsequentiallyby1.3million,inlinewithpriorguidanceandreflectingasubstantialpriceincreaseinthequarteraswellastheendoftheglobalsummerpromotion.Disney+CoreARPUincreasedsequent

7、iallyby$0.14versusthefourthquarter.WeexpectDisney+Coresubscribernetadditionsofbetween5.5and6millionandongoingpositivemomentuminARPUinthesecondquarter.ESPNsdomesticbusinessgrewbothrevenueandoperatingincomeyearoveryearinthefirstquarter,andwecontinuetobuildESPNintotheworldspreeminentdigitalsportsplatfo

8、rm.AtExperiences,wegeneratedall-timerecordsinrevenue,operatingincome,andoperatingmargininthefirstquarter,andwerecentlycelebratedthewell-receivedopeningsofWorldofFrozenatHongKongDisneylandResortandZootopiaatShanghaiDisneyResort.InFebruary2024,theBoardofDirectorsapprovedanewsharerepurchaseprogrameffec

9、tiveFebruary7,2024;weplantotarget$3billioninrepurchasesinfiscal2024.TheBoardalsodeclaredonFebruary7,2024acashdividendof$0.45pershare-anincreaseof50%versusthelastdividendpaidinJanuary-payableJuly25,2024toshareholdersofrecordatthecloseofbusinessonJuly8,2024.FORIMMEDIATERELEASE1(1)DilutedEPSexcludingce

10、rtainitemsandfreecashflowarenon-GAAPfinancialmeasures.ThemostcomparableGAAPmeasuresaredilutedEPSandcashprovidedbyoperations,respectively.Seethediscussiononpages18through21forhowwedefineandcalculatethesemeasuresandaquantitativereconciliationofhistoricalmeasuresthereoftothemostdirectlycomparableGAAPme

11、asuresandwhyDisneyisnotprovidingforward-lookingquantitativereconciliationtothemostcomparableGAAPmeasures.MessageFromOurCEO:“Justoneyearago,weoutlinedanambitiousplantoreturnTheWaltDisneyCompanytoaperiodofsustainedgrowthandshareholdervaluecreation,”saidRobertA.Iger,ChiefExecutiveOfficer,TheWaltDisneyC

12、ompany.“Ourstrongperformancethispastquarterdemonstrateswehaveturnedthecornerandenteredaneweraforourcompany,focusedonfortifyingESPNforthefuture,buildingstreamingintoaprofitablegrowthbusiness,reinvigoratingourfilmstudios,andturbocharginggrowthinourparksandexperiences.“Aswebuildforthefuture,thestepswea

13、retakingtodaylendthemselvestosolidifyingDisneysplaceasthepreeminentcreatorofglobalcontent.LookingattherenewedstrengthofallofourbusinessesthisquarterfromSports,toEntertainment,toExperienceswebelievethestageisnowsetforsignificantgrowthandsuccess,includingampleopportunitytoincreaseshareholderreturnsaso

14、urearningsandfreecashflowcontinuetogrow.”SUMMARIZEDFINANCIALRESULTSThefollowingtablesummarizesfirstquarterresultsforfiscal2024and2023:QuarterEnded($inmillions,exceptpershareamounts)December30,2023December31,2022ChangeRevenues$23,549$23,512%Incomebeforeincometaxes$2,871$1,773 62%Totalsegmentoperating

15、income(1)$3,876$3,043 27%DilutedEPS$1.04$0.70 49%DilutedEPSexcludingcertainitems(1)$1.22$0.99 23%Cashprovidedby(usedin)operations$2,185$(974)nmFreecashflow(1)$886$(2,155)nm(1)Totalsegmentoperatingincome,dilutedEPSexcludingcertainitemsandfreecashflowarenon-GAAPfinancialmeasures.ThemostcomparableGAAPm

16、easuresareincomebeforeincometaxes,dilutedEPSandcashprovidedbyoperations,respectively.Seethediscussiononpages18through21forhowwedefineandcalculatethesemeasuresandareconciliationthereoftothemostdirectlycomparableGAAPmeasures.2SUMMARIZEDSEGMENTFINANCIALRESULTSThefollowingtablesummarizesfirstquartersegm

17、entrevenueandoperatingincome(loss)forfiscal2024and2023:QuarterEnded($inmillions)December30,2023December31,2022ChangeRevenues:Entertainment$9,981$10,675(7)%Sports4,8354,640 4%Experiences9,1328,545 7%Eliminations(2)(399)(348)(15)%Totalrevenues$23,549$23,512%Segmentoperatingincome(loss):Entertainment$8

18、74$345 100%Sports(103)(164)37%Experiences3,1052,862 8%Totalsegmentoperatingincome(1)$3,876$3,043 27%(1)Totalsegmentoperatingincomeisanon-GAAPfinancialmeasure.ThemostcomparableGAAPmeasureisincomebeforeincometaxes.Seethediscussiononpages18through21.(2)ReflectsfeespaidbyDirect-to-ConsumertoSportsandoth

19、erEntertainmentbusinessesfortherighttoairtheirlinearnetworksonHuluLiveandfeespaidbyEntertainmenttoSportstoprogramsportsontheABCNetworkandStar+.DISCUSSIONOFFIRSTQUARTERSEGMENTRESULTSEntertainmentRevenueandoperatingincome(loss)fortheEntertainmentsegmentareasfollows:QuarterEndedChange($inmillions)Decem

20、ber30,2023December31,2022Revenues:LinearNetworks$2,803$3,202(12)%Direct-to-Consumer5,5464,822 15%ContentSales/LicensingandOther1,6322,651(38)%$9,981$10,675(7)%Operatingincome(loss):LinearNetworks$1,236$1,330(7)%Direct-to-Consumer(138)(984)86%ContentSales/LicensingandOther(224)(1)(100)%$874$345 100%T

21、heincreaseinEntertainmentoperatingincomewasduetoimprovedresultsatDirect-to-Consumer,partiallyoffsetbyadeclineatContentSales/LicensingandOther.3LinearNetworksLinearNetworksrevenuesandoperatingincomeareasfollows:QuarterEndedChange($inmillions)December30,2023December31,2022RevenueDomestic$2,210$2,565(1

22、4)%International593637(7)%$2,803$3,202(12)%OperatingincomeDomestic$838$879(5)%International225258(13)%Equityintheincomeofinvestees173193(10)%$1,236$1,330(7)%DomesticThedecreaseindomesticoperatingincomeinthecurrentquartercomparedtotheprior-yearquarterwasdueto:Loweradvertisingrevenueprimarilyduetoadec

23、reaseattheABCNetworkattributabletofewerimpressionsandlowerpoliticaladvertisingrevenueattheownedTVstationsLowernetworkimpressionswereinpartduetotheimpactoftheguildstrikesonourprogrammingscheduleprimarilyduetoashiftofunitstotheSportssegmentreflectingthesimulcastofcertainNFLgames Adeclineinaffiliaterev

24、enueduetoadecreaseinsubscribersatourentertainmentcablenetworksincludingtheimpactofthenon-carriageofcertainnetworksbyanaffiliate,partiallyoffsetbyhighercontractualrates LowerprogrammingandproductioncostsattributabletoadecreaseattheABCNetworkduetofewerhoursofscriptedprogramminginthecurrentquarter,refl

25、ectingtheimpactoftheguildstrikes.Scriptedprogrammingwasprimarilyreplacedwithloweraveragecostnon-scriptedprogrammingaswellasESPNonABCsportsprogramming,thecostsofwhicharerecognizedintheSportssegment.InternationalThedecreaseininternationaloperatingincomewasduetoloweraffiliaterevenueprimarilyattributabl

26、etofewersubscribers.EquityintheIncomeofInvesteesIncomefromequityinvesteesdecreasedprimarilyduetolowerincomefromA+ETelevisionNetworks(A+E)attributabletodecreasesinadvertisingandaffiliaterevenue,partiallyoffsetbyagainonthesaleofaninvestment.4Direct-to-ConsumerDirect-to-Consumerrevenuesandoperatingloss

27、areasfollows:QuarterEndedChange($inmillions)December30,2023December31,2022Revenue$5,546$4,822 15%Operatingloss$(138)$(984)86%Thedecreaseinoperatinglossinthecurrentquartercomparedtotheprior-yearquarterwasdueto:Subscriptionrevenuegrowthattributabletohigherratesduetoincreasesinretailpricingacrossourstr

28、eamingservices,andsubscribergrowthatDisney+Coreand,toalesserextent,Hulu Anincreaseinadvertisingrevenueduetohigherimpressionsacrossourstreamingservices,partiallyoffsetbylowerratesatHuluTheincreaseinimpressionswasdueto:AiringmorehoursofInternationalCricketCouncil(ICC)cricketprogrammingcomparedtothepri

29、or-yearquarterGrowthoftheU.S.ad-supportedDisney+service,whichlaunchedinDecember2022MoreunitsdeliveredatHulu Adecreaseinprogrammingandproductioncostsattributabletoloweraveragecostsperhourofnon-sportscontent,partiallyoffsetbymorenon-sportsprogramming,highersubscriber-basedfeesforprogrammingtheHuluLive

30、TVserviceandanincreaseincostsforICCcricketprogrammingTheincreaseinsubscriber-basedfeesforprogrammingtheHuluLiveTVservicereflectedrateincreasesandmoresubscribersHigherICCcricketprogrammingcostswereduetohigheraveragecostspermatchandmorematchesaired5FirstQuarterofFiscal2024ComparisontoFourthQuarterofFi

31、scal2023Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetricstoanalyzetrendsandevaluatetheoverallperformanceofourDisney+andHuludirect-to-consumer(DTC)productofferings(1),andwebelievethesemetricsareusefultoinvestorsinanalyzingthebusiness.Thefollowingtablesandrelateddiscussi

32、onareonasequentialquarterbasis.Paidsubscribers(1)at:(inmillions)December30,2023September30,2023ChangeDisney+Domestic(U.S.andCanada)46.146.5(1)%International(excludingDisney+Hotstar)(1)65.266.1(1)%Disney+Core(2)111.3112.6(1)%Disney+Hotstar38.337.6 2%HuluSVODOnly45.143.9 3%LiveTV+SVOD4.64.6%TotalHulu(

33、2)49.748.5 2%AverageMonthlyRevenuePerPaidSubscriber(1)forthequarterended:December30,2023September30,2023ChangeDisney+Domestic(U.S.andCanada)$8.15$7.50 9%International(excludingDisney+Hotstar)(1)5.916.10(3)%Disney+Core6.846.70 2%Disney+Hotstar1.280.70 83%HuluSVODOnly12.2912.11 1%LiveTV+SVOD93.6190.08

34、 4%(1)Seediscussiononpage17DTCProductDescriptionsandKeyDefinitions(2)TotalmaynotequalthesumofthecolumnduetoroundingDomesticDisney+averagemonthlyrevenueperpaidsubscriberincreasedfrom$7.50to$8.15duetoincreasesinretailpricing,partiallyoffsetbyahighermixofsubscriberstopromotionalofferings.InternationalD

35、isney+(excludingDisney+Hotstar)averagemonthlyrevenueperpaidsubscriberdecreasedfrom$6.10to$5.91duetoahighermixofsubscriberstopromotionalofferings.Disney+Hotstaraveragemonthlyrevenueperpaidsubscriberincreasedfrom$0.70to$1.28duetohigheradvertisingrevenueandincreasesinretailpricing,partiallyoffsetbyahig

36、hermixofsubscribersfromlower-pricedmarkets.HuluSVODOnlyaveragemonthlyrevenueperpaidsubscriberincreasedfrom$12.11to$12.29duetoincreasesinretailpricing,partiallyoffsetbylowerper-subscriberadvertisingrevenueandahighermixofsubscriberstopromotionalofferings.HuluLiveTV+SVODaveragemonthlyrevenueperpaidsubs

37、criberincreasedfrom$90.08to$93.61duetoincreasesinretailpricing.6ContentSales/LicensingandOtherContentSales/LicensingandOtherrevenuesandoperatinglossareasfollows:QuarterEndedChange($inmillions)December30,2023December31,2022Revenue$1,632$2,651(38)%Operatingloss$(224)$(1)(100)%Theincreaseinoperatinglos

38、swasduetotheperformanceofTheMarvelsandWishinthecurrentquartercomparedtoBlackPanther:WakandaForever,Avatar:TheWayofWaterandStrangeWorldintheprior-yearquarter.SportsSportsrevenuesandoperatingincome(loss)areasfollows:QuarterEndedChange($inmillions)December30,2023December31,2022RevenueESPNDomestic$4,073

39、$4,049 1%International363358 1%4,4364,407 1%Star(India)399233 71%$4,835$4,640 4%Operatingincome(loss)ESPNDomestic$255$(41)nmInternational(56)3nm199(38)nmStar(India)(315)(129)(100)%Equityintheincomeofinvestees13 3 100%$(103)$(164)37%DomesticESPNHigherdomesticESPNoperatingresultsinthecurrentquartercom

40、paredtotheprior-yearquarterweredueto:AdecreaseinprogrammingandproductioncostsattributabletolowercostsforCollegeFootballPlayoff(CFP)programmingduetothetimingofgamesrelativetoourfiscalperiods.Thecurrentquarterincludedthreehostgamescomparedtotwohostgamesandtwosemi-finalgamesintheprior-yearquarter.Growt

41、hinESPN+subscriptionrevenueduetohigherratesandmoresubscribers Loweradvertisingrevenueattributabletodecreasesinratesandimpressions.ThesedecreasesreflectedthetimingofCFPgames,partiallyoffsetbythebenefitsfromthetimingoftheweek17NFLgamethatairedinthecurrentquartercomparedtothesecondquarteroftheprioryear

42、andthesimulcastofNFLgamesontheABCNetwork.7 Affiliaterevenuewascomparabletotheprior-yearquarterascontractualrateincreaseswereoffsetbyfewersubscribersInternationalESPNLowerinternationalESPNoperatingresultsweredrivenbyhigherprogrammingandproductioncostsattributabletonewsoccerrightsandproductioncostinfl

43、ation,partiallyoffsetbyafavorableforeignexchangeimpact.Affiliaterevenuewascomparabletotheprior-yearquarterasanincreaseincontractualrateswaslargelyoffsetbyfewersubscribersandanunfavorableforeignexchangeimpact.StarTheincreaseinoperatinglossatStarwasduetotheairingoftheICCCricketWorldCupinthecurrentquar

44、tercomparedtotheICCT20WorldCupintheprior-yearquarter,whichresultedin:Anincreaseinprogrammingandproductioncostsattributabletohigheraveragecostspermatchandmorematchesaired Advertisingrevenuegrowthduetomoreunitsdeliveredandanincreaseinaverageviewership,partiallyoffsetbyadecreaseinratesFirstQuarterofFis

45、cal2024ComparisontoFourthQuarterofFiscal2023Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetricstoanalyzetrendsandevaluatetheoverallperformanceofourESPN+DTCproductoffering(1),andwebelievethesemetricsareusefultoinvestorsinanalyzingthebusiness.Thefollowingtableandrelateddis

46、cussionareonasequentialquarterbasis.December30,2023September30,2023ChangePaidsubscribers(1)at:(inmillions)25.226.0(3)%AverageMonthlyRevenuePerPaidSubscriber(1)forthequarterended:$6.09$5.34 14%(1)Seediscussiononpage17DTCProductDescriptionsandKeyDefinitionsTheincreaseinESPN+averagemonthlyrevenueperpai

47、dsubscriberwasduetoincreasesinretailpricingandhigheradvertisingrevenue.8ExperiencesExperiencesrevenuesandoperatingincomeareasfollows:QuarterEndedChange($inmillions)December30,2023December31,2022RevenueParks&ExperiencesDomestic$6,297$6,072 4%International1,476 1,094 35%ConsumerProducts1,359 1,379(1)%

48、$9,132$8,545 7%OperatingincomeParks&ExperiencesDomestic$2,077$2,113(2)%International328 79 100%ConsumerProducts700 670 4%$3,105$2,862 8%DomesticParksandExperiencesThedecreaseinoperatingincomeatourdomesticparksandexperiencesreflectedlowerresultsatourdomesticparksandresorts,largelyoffsetbyhigherresult

49、satDisneyCruiseLine.Atourdomesticparksandresorts,lowerresultsinthecurrentquartercomparedtotheprior-yearquarterweredueto:AdecreaseatWaltDisneyWorldResortreflectingamodestdecreaseinrevenuesandhighercosts.Theseimpactsweredueto:Lowervolumesduetodecreasesinattendanceandoccupiedroomnights,bothofwhichrefle

50、ctedthecomparisontothe50thanniversarycelebrationintheprior-yearquarterHighercostsduetoinflation,partiallyoffsetbycostsavinginitiativesandlowerdepreciationIncreasedguestspendingduetohigheraverageticketprices,partiallyoffsetbyloweraveragedailyroomratesResultsatDisneylandResortwerecomparabletotheprior-

51、yearquarterasrevenuegrowthwaslargelyoffsetbyanincreaseincosts.Theseimpactswereattributableto:IncreasedguestspendingprimarilyduetohigheraverageticketpricesAttendancegrowthHighercostsdrivenbyinflation GrowthatDisneyCruiseLinewasduetoincreasesinaverageticketpricesandpassengercruisedays,partiallyoffsetb

52、yhighercostsInternationalParksandExperiencesHigherinternationalparksandexperiencesoperatingresultsweredueto:GrowthatShanghaiDisneyResortdueto:Highervolumesattributabletoanincreaseinattendance.Theparkwasopenforallofthecurrentquartercomparedto58daysintheprior-yearquarterasaresultofCOVID-19relatedclosu

53、res.Guestspendinggrowthduetoanincreaseinaverageticketprices9 HigheroperatingincomeatHongKongDisneylandResortattributableto:GuestspendinggrowthprimarilyduetoanincreaseinaverageticketpricesHighervolumesresultingfromincreasesinattendance,whichbenefitedfromtheparkbeingopenformoredaysinthecurrentquarter,

54、andoccupiedroomnightsIncreasedcostsdrivenbyinflationandnewguestofferings ResultsatDisneylandPariswerecomparabletotheprior-yearquarterdueto:HighercostsprimarilyattributabletoincreasedoperationssupportcostsandinflationLowervolumesprimarilyduetoadecreaseinattendance.Theprior-yearquarterincludedthe30tha

55、nniversarycelebration.Thecomparisontoalossintheprior-yearquarteronthedisposalofourownershipinterestinVillagesNatureConsumerProductsTheincreaseinconsumerproductsoperatingresultswasduetolicensingrevenuegrowthresultingfromhighersalesofproductsbasedonSpider-ManandMickeyandFriends,partiallyoffsetbyadecre

56、aseinsalesofproductsbasedonStarWars.OTHERFINANCIALINFORMATIONDTCStreamingBusinessesRevenueandoperatinglossforourcombinedDTCstreamingbusinesses,whichconsistoftheDirect-to-ConsumerlineofbusinessattheEntertainmentsegmentandESPN+attheSportssegment,areasfollows:QuarterEndedChange($inmillions)December30,2

57、023December31,2022Revenue$6,075$5,307 14%Operatingloss(1)$(216)$(1,053)79%(1)DTCstreamingbusinessesoperatinglossisnotafinancialmeasuredefinedbyGAAP.ThemostcomparableGAAPmeasuresaresegmentoperatingincomefortheEntertainmentsegmentandSportssegment.Seethediscussiononpage21forhowwedefineandcalculatethism

58、easureandareconciliationofittothemostdirectlycomparableGAAPmeasures.CorporateandUnallocatedSharedExpensesCorporateandunallocatedsharedexpensesincreased$28millionforthequarter,from$280millionto$308million,primarilyduetohigherrentexpenseandinflation.RestructuringandImpairmentChargesIntheprior-yearquar

59、ter,theCompanyrecordedchargesof$69millionrelatedtoexitingourbusinessesinRussia.OtherExpense,netIntheprior-yearquarter,theCompanyrecordeda$70millionlosstoadjustitsinvestmentinDraftKings,Inc.tofairvalue,partiallyoffsetbya$28milliongainonthesaleofabusiness.10InterestExpense,netInterestexpense,netwasasf

60、ollows:QuarterEnded($inmillions)December30,2023December31,2022ChangeInterestexpense$(528)$(465)(14)%Interestincome,investmentincomeandother282165 71%Interestexpense,net$(246)$(300)18%Theincreaseininterestexpensewasprimarilyduetohigheraveragerates,partiallyoffsetbyloweraveragedebtbalances.Theincrease

61、ininterestincome,investmentincomeandotherwasdrivenbyhigherinterestincomeoncashbalancesreflectinganincreaseininterestrates.EquityintheIncomeofInvesteesEquityintheincomeofinvesteeswasasfollows:QuarterEnded($inmillions)December30,2023December31,2022ChangeAmountsincludedinsegmentresults:Entertainment$17

62、1$193(11)%Sports133 100%Experiences(2)nmAmortizationofTFCFintangibleassetsrelatedtoequityinvestees(3)(3)%Equityintheincomeofinvestees$181$191(5)%IncomeTaxesTheeffectiveincometaxratewasasfollows:QuarterEndedDecember30,2023December31,2022Incomebeforeincometaxes$2,871$1,773 Incometaxexpense720 412 Effe

63、ctiveincometaxrate 25.1%23.2%Theincreaseintheeffectiveincometaxratewasduetotheimpactofadjustmentsrelatedtoprioryears,whichwasunfavorableinthecurrentquarterandfavorableintheprior-yearquarter,partiallyoffsetbylowereffectivetaxratesonforeignearningscomparedtotheprior-yearquarter.11NoncontrollingInteres

64、tsNetincomeattributabletononcontrollinginterestswasasfollows:QuarterEnded($inmillions)December30,2023December31,2022ChangeNetincomeattributabletononcontrollinginterests$(240)$(82)(100)%TheincreaseinnetincomeattributabletononcontrollinginterestswasprimarilyduetoimprovedresultsatourAsiaThemeParks,thea

65、ccretionofHulusnoncontrollinginteresttotheamountpaidtoNBCUniversalinDecember2023and,toalesserextent,improvedresultsatESPN,partiallyoffsetbythecomparisontotheimpactoftheprior-yearpurchaseofMajorLeagueBaseballs15%interestinBAMTechLLC.Netincomeattributabletononcontrollinginterestsisdeterminedonincomeaf

66、terroyaltiesandmanagementfees,financingcostsandincometaxes,asapplicable.CashFlowCashprovidedby(usedin)operationsandfreecashflowwereasfollows:QuarterEnded($inmillions)December30,2023December31,2022ChangeCashprovidedby(usedin)operations$2,185$(974)$3,159Investmentsinparks,resortsandotherproperty(1,299

67、)(1,181)(118)Freecashflow(1)$886$(2,155)$3,041(1)FreecashflowisnotafinancialmeasuredefinedbyGAAP.ThemostcomparableGAAPmeasureiscashprovidedbyoperations.Seethediscussiononpages18through21.Cashprovidedbyoperationsincreasedby$3.2billionto$2.2billioninthecurrentquarterfromcashusedinoperationsof$1.0billi

68、onintheprior-yearquarter.Theincreasewasduetolowerfilmandtelevisionproductionspendingreflectingtheimpactoftheguildstrikesinthecurrentquarter,thetimingofpaymentsforsportsrightsandlowercollateralpaymentsrelatedtoourhedgingprogram.Theseincreaseswerepartiallyoffsetbythedeferraloffiscal2023federalandCalif

69、orniataxpaymentsintothecurrentquarterpursuanttoreliefprovidedbytheInternalRevenueServiceandCaliforniaStateBoardofEqualizationasaresultof2023winterstormsinCalifornia.12CapitalExpendituresandDepreciationExpenseInvestmentsinparks,resortsandotherpropertywereasfollows:QuarterEnded($inmillions)December30,

70、2023December31,2022Entertainment$309$273Sports6ExperiencesDomestic571519International244219TotalExperiences815738Corporate175164Totalinvestmentsinparks,resortsandotherproperty$1,299$1,181Capitalexpendituresincreasedfrom$1.2billionto$1.3billionduetohigherspendonnewattractionsandcruiseshipfleetexpansi

71、onattheExperiencessegment.Depreciationexpensewasasfollows:QuarterEnded($inmillions)December30,2023December31,2022Entertainment$163$154Sports1110ExperiencesDomestic424452International171164TotalExperiences595616Corporate5448Totaldepreciationexpense$823$82813THEWALTDISNEYCOMPANYCONDENSEDCONSOLIDATEDST

72、ATEMENTSOFINCOME(unaudited;$inmillions,exceptpersharedata)QuarterEndedDecember30,2023December31,2022Revenues$23,549$23,512Costsandexpenses(20,613)(21,519)Restructuringandimpairmentcharges(69)Otherexpense,net(42)Interestexpense,net(246)(300)Equityintheincomeofinvestees181191Incomebeforeincometaxes2,8

73、711,773Incometaxes(720)(412)Netincome2,1511,361Netincomeattributabletononcontrollinginterests(240)(82)NetincomeattributabletoTheWaltDisneyCompany(Disney)$1,911$1,279EarningspershareattributabletoDisney:Diluted$1.04$0.70Basic$1.04$0.70Weightedaveragenumberofcommonandcommonequivalentsharesoutstanding:

74、Diluted1,8351,827Basic1,8321,82514THEWALTDISNEYCOMPANYCONDENSEDCONSOLIDATEDBALANCESHEETS(unaudited;$inmillions,exceptpersharedata)December30,2023September30,2023ASSETSCurrentassetsCashandcashequivalents$7,192$14,182Receivables,net14,11512,330Inventories1,9541,963Contentadvances1,4093,002Othercurrent

75、assets1,3011,286Totalcurrentassets25,97132,763Producedandlicensedcontentcosts32,72533,591Investments3,0843,080Parks,resortsandotherpropertyAttractions,buildingsandequipment72,09670,090Accumulateddepreciation(43,575)(42,610)28,52127,480Projectsinprogress5,6186,285Land1,1821,17635,32134,941Intangiblea

76、ssets,net12,63913,061Goodwill77,06677,067Otherassets10,96811,076Totalassets$197,774$205,579LIABILITIESANDEQUITYCurrentliabilitiesAccountspayableandotheraccruedliabilities$18,676$20,671Currentportionofborrowings6,0874,330Deferredrevenueandother6,2706,138Totalcurrentliabilities31,03331,139Borrowings41

77、,60342,101Deferredincometaxes7,0417,258Otherlong-termliabilities12,59612,069CommitmentsandcontingenciesRedeemablenoncontrollinginterests9,055EquityPreferredstockCommonstock,$0.01parvalue,Authorized4.6billionshares,Issued1.9billionsharesatDecember30,2023and1.8billionsharesatSeptember30,202357,64057,3

78、83Retainedearnings47,49046,093Accumulatedothercomprehensiveloss(3,502)(3,292)Treasurystock,atcost,19millionshares(907)(907)TotalDisneyShareholdersequity100,72199,277Noncontrollinginterests4,7804,680Totalequity105,501103,957Totalliabilitiesandequity$197,774$205,57915THEWALTDISNEYCOMPANYCONDENSEDCONSO

79、LIDATEDSTATEMENTSOFCASHFLOWS(unaudited;$inmillions)QuarterEndedDecember30,2023December31,2022OPERATINGACTIVITIESNetincome$2,151$1,361Depreciationandamortization1,2431,306Deferredincometaxes(51)(15)Equityintheincomeofinvestees(181)(191)Cashdistributionsreceivedfromequityinvestees153176Netchangeinprod

80、ucedandlicensedcontentcostsandadvances2,642558Equity-basedcompensation308270Other,net(64)(163)ChangesinoperatingassetsandliabilitiesReceivables(1,554)(1,423)Inventories8(88)Otherassets30(443)Accountspayableandotherliabilities(1,396)(2,378)Incometaxes(1,104)56Cashprovidedby(usedin)operations2,185(974

81、)INVESTINGACTIVITIESInvestmentsinparks,resortsandotherproperty(1,299)(1,181)Other,net53(111)Cashusedininvestingactivities(1,246)(1,292)FINANCINGACTIVITIESCommercialpaperborrowings,net1,046799Borrowings67Reductionofborrowings(309)(1,000)Contributionsfrom/salesofnoncontrollinginterests178Acquisitionof

82、redeemablenoncontrollinginterests(8,610)(900)Other,net(133)(187)Cashusedinfinancingactivities(8,006)(1,043)Impactofexchangeratesoncash,cashequivalentsandrestrictedcash79164Changeincash,cashequivalentsandrestrictedcash(6,988)(3,145)Cash,cashequivalentsandrestrictedcash,beginningofperiod14,23511,661Ca

83、sh,cashequivalentsandrestrictedcash,endofperiod$7,247$8,51616DTCPRODUCTDESCRIPTIONSANDKEYDEFINITIONSProductofferingsIntheU.S.,Disney+,ESPN+andHuluSVODOnlyareeachofferedasastandaloneserviceortogetheraspartofvariousmulti-productofferings.HuluLiveTV+SVODincludesDisney+andESPN+.Disney+isavailableinmoret

84、han150countriesandterritoriesoutsidetheU.S.andCanada.InIndiaandcertainotherSoutheastAsiancountries,theserviceisbrandedDisney+Hotstar.IncertainLatinAmericancountries,weofferDisney+aswellasStar+,ageneralentertainmentSVODservice,whichisavailableonastandalonebasisortogetherwithDisney+(Combo+).Dependingo

85、nthemarket,ourservicescanbepurchasedonourwebsitesorthroughthird-partyplatforms/appsorareavailableviawholesalearrangements.PaidsubscribersPaidsubscribersreflectsubscribersforwhichwerecognizedsubscriptionrevenue.Subscribersceasetobeapaidsubscriberasoftheireffectivecancellationdateorasaresultofafailedp

86、aymentmethod.Subscriberstomulti-productofferingsintheU.S.arecountedasapaidsubscriberforeachserviceincludedinthemulti-productofferingandsubscriberstoHuluLiveTV+SVODarecountedasonepaidsubscriberforeachoftheHuluLiveTV+SVOD,Disney+andESPN+services.InLatinAmerica,ifasubscriberhaseitherthestandaloneDisney

87、+orStar+serviceorsubscribestoCombo+,thesubscriberiscountedasoneDisney+paidsubscriber.Subscribersincludethosewhoreceiveaservicethroughwholesalearrangementsincludingthoseforwhichtheserviceisdistributedtoeachsubscriberofanexistingcontentdistributiontier.Whenweaggregatethetotalnumberofpaidsubscribersacr

88、ossourDTCstreamingservices,werefertothemaspaidsubscriptions.InternationalDisney+(excludingDisney+Hotstar)InternationalDisney+(excludingDisney+Hotstar)includestheDisney+serviceoutsidetheU.S.andCanadaandtheStar+serviceinLatinAmerica.AverageMonthlyRevenuePerPaidSubscriberHuluandESPN+averagemonthlyreven

89、ueperpaidsubscriberiscalculatedbasedontheaverageofthemonthlyaveragepaidsubscribersforeachmonthintheperiod.Themonthlyaveragepaidsubscribersiscalculatedasthesumofthebeginningofthemonthandendofthemonthpaidsubscribercount,dividedbytwo.Disney+averagemonthlyrevenueperpaidsubscriberiscalculatedusingadailya

90、verageofpaidsubscribersfortheperiod.Revenueincludessubscriptionfees,advertising(excludingrevenueearnedfromsellingadvertisingspotstootherCompanybusinesses)andpremiumandfeatureadd-onrevenuebutexcludesPay-Per-Viewrevenue.Advertisingrevenuegeneratedbycontentofonestreamingservicethatisaccessedthroughanot

91、herstreamingservice(forexample,HulucontentaccessedthroughDisney+)isallocatedbetweenbothservices.Theaveragerevenueperpaidsubscriberisnetofdiscountsonofferingsthatcarrymorethanoneservice.Revenueisallocatedtoeachservicebasedontherelativeretailorwholesalepriceofeachserviceonastandalonebasis.HuluLiveTV+S

92、VODrevenueisallocatedtotheSVODservicesbasedonthewholesalepriceoftheHuluSVODOnly,Disney+andESPN+multi-productoffering.Ingeneral,wholesalearrangementshavealoweraveragemonthlyrevenueperpaidsubscriberthansubscribersthatweacquiredirectlyorthroughthird-partyplatforms.17NON-GAAPFINANCIALMEASURESThisearning

93、sreleasepresentsdilutedEPSexcludingcertainitems,totalsegmentoperatingincome,freecashflow,andDTCstreamingbusinessesoperatingincome(loss),allofwhichareimportantfinancialmeasuresfortheCompany,butarenotfinancialmeasuresdefinedbyGAAP.ThesemeasuresshouldbereviewedinconjunctionwiththemostcomparableGAAPfina

94、ncialmeasuresandarenotpresentedasalternativemeasuresofdilutedEPS,incomebeforeincometaxes,cashprovidedbyoperations,orEntertainmentandSportssegmentoperatingincome(loss)asdeterminedinaccordancewithGAAP.DilutedEPSexcludingcertainitems,totalsegmentoperatingincome,freecashflow,andDTCstreamingbusinessesope

95、ratingincome(loss)aswehavecalculatedthemmaynotbecomparabletosimilarlytitledmeasuresreportedbyothercompanies.OurdefinitionsandcalculationsofhistoricalmeasuresofdilutedEPSexcludingcertainitems,totalsegmentoperatingincome,freecashflow,andDTCstreamingbusinessesoperatingincome(loss),aswellasquantitativer

96、econciliationsofeachofthesehistoricalmeasurestothemostdirectlycomparableGAAPfinancialmeasureareprovidedbelow.Disneyisnotprovidingforward-lookingmeasuresfordilutedEPSorcashprovidedbyoperations,whicharethemostdirectlycomparableGAAPmeasurestodilutedEPSexcludingcertainitemsandfreecashflow,respectively,o

97、raquantitativereconciliationofforward-lookingdilutedEPSexcludingcertainitemsorfreecashflowtothosemostdirectlycomparableGAAPmeasures.DisneyisunabletopredictorestimatewithreasonablecertaintytheultimateoutcomeofcertainsignificantitemsrequiredforeachoftheseGAAPmeasureswithoutunreasonableeffort.Informati

98、onaboutotheradjustingitemsthatiscurrentlynotavailabletoDisneycouldhaveapotentiallyunpredictableandsignificantimpactonfutureGAAPfinancialresults.DilutedEPSexcludingcertainitemsTheCompanyusesdilutedEPSexcluding(1)certainitemsaffectingcomparabilityofresultsfromperiodtoperiodand(2)amortizationofTFCFandH

99、uluintangibleassets,includingpurchaseaccountingstep-upadjustmentsforreleasedcontent,tofacilitatetheevaluationoftheperformanceoftheCompanysoperationsexclusiveoftheseitems,andtheseadjustmentsreflecthowseniormanagementisevaluatingsegmentperformance.TheCompanybelievesthatprovidingdilutedEPSexclusiveofce

100、rtainitemsimpactingcomparabilityisusefultoinvestors,particularlywheretheimpactoftheexcludeditemsissignificantinrelationtoreportedearningsandbecausethemeasureallowsforcomparabilitybetweenperiodsoftheoperatingperformanceoftheCompanysbusinessandallowsinvestorstoevaluatetheimpactoftheseitemsseparately.T

101、heCompanyfurtherbelievesthatprovidingdilutedEPSexclusiveofamortizationofTFCFandHuluintangibleassetsassociatedwiththeacquisitionin2019isusefultoinvestorsbecausetheTFCFandHuluacquisitionwasconsiderablylargerthantheCompanyshistoricacquisitionswithasignificantlygreateracquisitionaccountingimpact.18Thefo

102、llowingtablereconcilesreporteddilutedEPStodilutedEPSexcludingcertainitemsforthefirstquarter:($inmillionsexceptEPS)Pre-TaxIncome/LossTaxBenefit/Expense(1)After-TaxIncome/Loss(2)DilutedEPS(3)Changevs.prior-yearperiodQuarterEndedDecember30,2023Asreported$2,871$(720)$2,151$1.04 49%Exclude:Amortizationof

103、TFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)451(106)3450.18Excludingcertainitems$3,322$(826)$2,496$1.22 23%QuarterEndedDecember31,2022Asreported$1,773$(412)$1,361$0.70Exclude:AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)579(135)4

104、440.24Restructuringandimpairmentcharges(5)69(8)610.03Otherexpense,net(6)42(16)260.01Excludingcertainitems$2,463$(571)$1,892$0.99(1)Taxbenefit/expenseisdeterminedusingthetaxrateapplicabletotheindividualitem.(2)Beforenoncontrollinginterestshare.(3)Netofnoncontrollinginterestshare,whereapplicable.Total

105、maynotequalthesumofthecolumnduetorounding.(4)Forthecurrentquarter,intangibleassetamortizationwas$380million,step-upamortizationwas$68millionandamortizationofintangibleassetsrelatedtoTFCFequityinvesteeswas$3million.Fortheprior-yearquarter,intangibleassetamortizationwas$417million,step-upamortizationw

106、as$159millionandamortizationofintangibleassetsrelatedtoTFCFequityinvesteeswas$3million.(5)ChargesrelatedtoexitingourbusinessesinRussia.(6)DraftKingsloss($70million),partiallyoffsetbyagainonthesaleofabusiness($28million).19TotalsegmentoperatingincomeTheCompanyevaluatestheperformanceofitsoperatingsegm

107、entsbasedonsegmentoperatingincome,andmanagementusestotalsegmentoperatingincomeasameasureoftheperformanceofoperatingbusinessesseparatefromnon-operatingfactors.TheCompanybelievesthatinformationabouttotalsegmentoperatingincomeassistsinvestorsbyallowingthemtoevaluatechangesintheoperatingresultsoftheComp

108、anysportfolioofbusinessesseparatefromnon-operationalfactorsthataffectnetincome,thusprovidingseparateinsightintobothoperationsandotherfactorsthataffectreportedresults.Thefollowingtablereconcilesincomebeforeincometaxestototalsegmentoperatingincome:QuarterEnded($inmillions)December30,2023December31,202

109、2ChangeIncomebeforeincometaxes$2,871$1,773 62%Add(subtract):Corporateandunallocatedsharedexpenses308280(10)%Restructuringandimpairmentcharges69 100%Otherexpense,net42 100%Interestexpense,net246300 18%AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts451579 22%Totals

110、egmentoperatingincome$3,876$3,043 27%FreecashflowTheCompanyusesfreecashflow(cashprovidedbyoperationslessinvestmentsinparks,resortsandotherproperty),amongothermeasures,toevaluatetheabilityofitsoperationstogeneratecashthatisavailableforpurposesotherthancapitalexpenditures.Managementbelievesthatinforma

111、tionaboutfreecashflowprovidesinvestorswithanimportantperspectiveonthecashavailabletoservicedebtobligations,makestrategicacquisitionsandinvestmentsandpaydividendsorrepurchaseshares.ThefollowingtablepresentsasummaryoftheCompanysconsolidatedcashflows:QuarterEnded($inmillions)December30,2023December31,2

112、022Cashprovidedby(usedin)operations$2,185$(974)Cashusedininvestingactivities(1,246)(1,292)Cashusedinfinancingactivities(8,006)(1,043)Impactofexchangeratesoncash,cashequivalentsandrestrictedcash79164Changeincash,cashequivalentsandrestrictedcash(6,988)(3,145)Cash,cashequivalentsandrestrictedcash,begin

113、ningofperiod14,23511,661Cash,cashequivalentsandrestrictedcash,endofperiod$7,247$8,51620ThefollowingtablereconcilestheCompanysconsolidatedcashprovidedby(usedin)operationstofreecashflow:QuarterEnded($inmillions)December30,2023December31,2022ChangeCashprovidedby(usedin)operations$2,185$(974)$3,159 Inve

114、stmentsinparks,resortsandotherproperty(1,299)(1,181)(118)Freecashflow$886$(2,155)$3,041DTCStreamingBusinessesTheCompanyusescombinedDTCstreamingbusinessesoperatingincome(loss)becauseitbelievesthatthismeasureallowsinvestorstoevaluatetheperformanceofitsportfolioofstreamingbusinessesandtrackprogressagai

115、nsttheCompanysgoalofreachingprofitabilityinthefourthquarteroffiscal2024atitscombinedstreamingbusinesses.ThefollowingtablesreconcileEntertainmentandSportssegmentoperatingincome(loss)totheDTCstreamingbusinessesoperatingloss:QuarterEndedDecember30,2023December31,2022($inmillions)EntertainmentSportsDTCS

116、treamingBusinessesEntertainmentSportsDTCStreamingBusinessesLinearNetworks$1,236$(25)$1,330$(95)DTCstreamingbusinesses(Direct-to-ConsumerandESPN+businesses)(138)(78)$(216)(984)(69)$(1,053)ContentSales/LicensingandOther(224)(1)Segmentoperatingincome(loss)$874$(103)$345$(164)21FORWARD-LOOKINGSTATEMENTS

117、Certainstatementsandinformationinthisearningsreleasemayconstitute“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995,includingstatementsregardingfinancialperformance,earningsexpectations,expecteddriversandguidance,includingfutureadjustedEPS,freecashflowandfundi

118、ngsources,capitalallocation,includingdividendsandsharerepurchases,subscriberandrevenuegrowth,plansfordirect-to-consumerprofitabilityandtimingandcostreductions;valueof,andopportunitiesforgrowthbasedon,ourintellectualproperty,contentofferings,businessesandassets,includingtheatricalandsportscontent,fra

119、nchisesandbrands;businessplans;futureperformanceandgrowth;plans,expectations,strategicprioritiesanddriversofgrowthandprofitabilityandotherstatementsthatarenothistoricalinnature.Anyinformationthatisnothistoricalinnatureincludedinthisearningsreleaseissubjecttochange.Thesestatementsaremadeonthebasisofm

120、anagementsviewsandassumptionsregardingfutureeventsandbusinessperformanceasofthetimethestatementsaremade.Managementdoesnotundertakeanyobligationtoupdatethesestatements.Actualresultsmaydiffermateriallyfromthoseexpressedorimplied.SuchdifferencesmayresultfromactionstakenbytheCompany,includingrestructuri

121、ngorstrategicinitiatives(includingcapitalinvestments,assetacquisitionsordispositions,neworexpandedbusinesslinesorcessationofcertainoperations),ourexecutionofourbusinessplans(includingthecontentwecreateandIPweinvestin,ourpricingdecisions,ourcoststructureandourmanagementandotherpersonneldecisions),our

122、abilitytoquicklyexecuteoncostrationalizationwhilepreservingrevenue,thediscoveryofadditionalinformationorotherbusinessdecisions,aswellasfromdevelopmentsbeyondtheCompanyscontrol,including:theoccurrenceofsubsequentevents;deteriorationindomesticandglobaleconomicconditionsorfailureofconditionstoimproveas

123、anticipated;deteriorationinorpressuresfromcompetitiveconditions,includingcompetitiontocreateoracquirecontent,competitionfortalentandcompetitionforadvertisingrevenue;consumerpreferencesandacceptanceofourcontent,offerings,pricingmodelandpriceincreases,andcorrespondingsubscriberadditionsandchurn,andthe

124、marketforadvertisingsalesonourDTCservicesandlinearnetworks;healthconcernsandtheirimpactonourbusinessesandproductions;international,politicalormilitarydevelopments;regulatoryandlegaldevelopments;technologicaldevelopments;labormarketsandactivities,includingworkstoppages;adverseweatherconditionsornatur

125、aldisasters;andavailabilityofcontent.Suchdevelopmentsmayfurtheraffectentertainment,travelandleisurebusinessesgenerallyandmay,amongotherthings,affect(orfurtheraffect,asapplicable):ouroperations,businessplansorprofitability,includingdirect-to-consumerprofitability;demandforourproductsandservices;thepe

126、rformanceoftheCompanyscontent;ourabilitytocreateorobtaindesirablecontentatorunderthevalueweassignthecontent;theadvertisingmarketforprogramming;incometaxexpense;andperformanceofsomeorallCompanybusinesseseitherdirectlyorthroughtheirimpactonthosewhodistributeourproducts.Additionalfactorsaresetforthinth

127、eCompanysAnnualReportonForm10-KfortheyearendedSeptember30,2023,includingunderthecaptions“RiskFactors,”“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations,”and“Business,”quarterlyreportsonForm10-Q,includingunderthecaptions“RiskFactors”and“ManagementsDiscussionandAnalysisofFina

128、ncialConditionandResultsofOperations,”andsubsequentfilingswiththeSecuritiesandExchangeCommission.Theterms“Company,”“we,”and“our”areusedinthisreporttorefercollectivelytotheparentcompanyandthesubsidiariesthroughwhichourvariousbusinessesareactuallyconducted.22CONFERENCECALLINFORMATIONInconjunctionwiththisrelease,TheWaltDisneyCompanywillhostaconferencecalltoday,February7,2024,at4:30PMEST/1:30PMPSTviaaliveWebcast.ToaccesstheW