Professional Documents
Culture Documents
q4 Fy21 Earnings
q4 Fy21 Earnings
BURBANK, Calif. – The Walt Disney Company today reported earnings for its fourth quarter and
fiscal year ended October 2, 2021. Diluted earnings per share (EPS) from continuing operations for the
quarter was income of $0.09 compared to a loss of $0.39 in the prior-year quarter. Excluding certain
items(1), diluted EPS for the quarter was income of $0.37 compared to a loss of $0.20 in the prior-year
quarter. Diluted EPS from continuing operations for the year ended October 2, 2021 was income of $1.11
compared to a loss of $1.57 in the prior-year. Excluding certain items(1), diluted EPS for the year increased
13% to $2.29 from $2.02 in the prior-year.
“This has been a very productive year for The Walt Disney Company, as we’ve made great strides in
reopening our businesses while taking meaningful and innovative steps in Direct-to-Consumer and at our
Parks, particularly with our popular new Disney Genie and Magic Key offerings,” said Bob Chapek, Chief
Executive Officer, The Walt Disney Company. “As we celebrate the two-year anniversary of Disney+,
we’re extremely pleased with the success of our streaming business, with 179 million total subscriptions
across our DTC portfolio at the end of fiscal 2021 and 60% subscriber growth year-over-year for Disney+.
We continue to manage our DTC business for the long-term, and are confident that our high-quality
entertainment and expansion into additional markets worldwide will enable us to further grow our
streaming platforms globally.”
The following table summarizes the fourth quarter results for fiscal 2021 and 2020 (in millions,
except per share amounts):
Quarter Ended Year Ended
October 2, October 3, October 2, October 3,
2021 2020 Change 2021 2020 Change
Revenues $ 18,534 $ 14,707 26 % $ 67,418 $ 65,388 3 %
Income (loss) from continuing
$ 290 $ (580) nm $ 2,561 $ (1,743) nm
operations before income taxes
Total segment operating income(1) $ 1,587 $ 606 >100 % $ 7,766 $ 8,108 (4) %
Net income (loss) from continuing
$ 160 $ (710) nm $ 2,024 $ (2,832) nm
operations(2)
Diluted EPS from continuing
$ 0.09 $ (0.39) nm $ 1.11 $ (1.57) nm
operations(2)
Diluted EPS excluding certain
$ 0.37 $ (0.20) nm $ 2.29 $ 2.02 13 %
items(1)
Cash provided by continuing
$ 2,632 $ 1,667 58 % $ 5,566 $ 7,616 (27) %
operations
Free cash flow(1) $ 1,522 $ 938 62 % $ 1,988 $ 3,594 (45) %
(1)
Diluted EPS excluding certain items, total segment operating income and free cash flow are non-GAAP financial
measures. The comparable GAAP measures are diluted EPS from continuing operations, income from continuing
operations before income taxes, and cash provided by continuing operations, respectively. See the discussion on page 2
and on pages 11 through 14.
(2)
Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. after deduction of income attributable
to noncontrolling interests.
1
The Company’s fiscal year end is on the Saturday closest to September 30 and consists of fifty-two
weeks with the exception that approximately every six years, we have a fifty-three week year. Fiscal 2020
was a fifty-three week year, which began on September 29, 2019 and ended on October 3, 2020. We
estimate that the additional week resulted in a benefit to pre-tax income in the prior-year quarter of
approximately $200 million, primarily at the Disney Media and Entertainment Distribution segment.
SEGMENT RESULTS
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 is a reconciliation of income from continuing operations before income taxes to total
segment operating income (in millions):
Quarter Ended Year Ended
October 2, October 3, October 2, October 3,
2021 2020 Change 2021 2020 Change
Income (loss) from continuing
operations before income taxes $ 290 $ (580) nm $ 2,561 $ (1,743) nm
Add (subtract):
Corporate and unallocated shared
expenses 283 213 (33) % 928 817 (14) %
Restructuring and impairment
charges 92 393 77 % 654 5,735 89 %
Other (income) expense, net 13 (656) nm (201) (1,038) (81) %
Interest expense, net 317 496 36 % 1,406 1,491 6 %
Amortization of TFCF and Hulu
intangible assets and fair value
step-up on film and television
costs 592 740 20 % 2,418 2,846 15 %
Total Segment Operating Income $ 1,587 $ 606 >100 % $ 7,766 $ 8,108 (4) %
Since early 2020 the world has been, and continues to be, impacted by the novel coronavirus
(COVID-19) and its variants. COVID-19 and measures to prevent its spread has impacted our segments in
a number of ways, most significantly at the Disney Parks, Experiences and Products segment where our
theme parks and resorts were closed and cruise ship sailings and guided tours were suspended. These
operations resumed, generally at reduced capacity, at various points since May 2020. We have delayed, or
in some cases, shortened or cancelled theatrical releases, and stage play performances were suspended as
of March 2020. Stage play operations resumed, generally at reduced capacity, in the first quarter of fiscal
2021. Theaters have been subject to capacity limitations and shifting government mandates or guidance
regarding COVID-19 restrictions. We experienced significant disruptions in the production and
availability of content, including the delay of key live sports programming during fiscal 2020 and fiscal
2021, as well as the suspension of most film and television production in March 2020. Although film and
television production generally resumed beginning in the fourth quarter of fiscal 2020, we continue to see
disruption of production activities depending on local circumstances. Fewer theatrical releases and
2
production delays have limited the availability of film content to be sold in distribution windows
subsequent to the theatrical release.
We have and will continue to incur costs to address government regulations and implement safety
measures for our employees, guests and talent. The timing, duration and extent of these costs will depend
on the timing and scope of our operations as they resume as well as regulatory requirements. These costs
totaled approximately $1 billion in fiscal 2021. Some of these costs have been capitalized and will be
amortized over future periods.
The entire current year for both segments was impacted by COVID-19, while only a portion of the
prior year was impacted. The most significant impact on operating income was at the Disney Parks,
Experiences and Products segment due to revenue lost as a result of closures and/or reduced operating
capacities. Although results improved in the second half of fiscal 2021 compared to the second half of
fiscal 2020 from reopening our parks and resorts, we continue to be impacted by reduced operating
capacities. Compared to fiscal 2020, the Disney Media and Entertainment Distribution segment reflected
higher advertising revenue from the return of live sporting events, which was more than offset by higher
sports programming costs. Our other film and television distribution businesses were impacted by revenue
lost from the deferral or cancellation of significant film releases, partially offset by costs avoided due to a
reduction in film cost amortization, marketing and distribution costs.
The following table summarizes the fourth quarter segment revenue and segment operating income
for fiscal 2021 and 2020 (in millions):
Quarter Ended Year Ended
October 2, October 3, October 2, October 3,
2021 2020 Change 2021 2020 Change
Revenues:
Disney Media and
Entertainment Distribution $ 13,084 $ 11,974 9 % $ 50,866 $ 48,350 5 %
Disney Parks, Experiences and
Products 5,450 2,733 99 % 16,552 17,038 (3) %
Total Revenues $ 18,534 $ 14,707 26 % $ 67,418 $ 65,388 3 %
Segment operating income (loss):
Disney Media and
Entertainment Distribution $ 947 $ 1,551 (39) % $ 7,295 $ 7,653 (5) %
Disney Parks, Experiences and
Products 640 (945) nm 471 455 4 %
Total Segment Operating Income $ 1,587 $ 606 >100 % $ 7,766 $ 8,108 (4) %
3
higher licensing results was offset by lower operating results at our domestic parks and experiences
business.
Linear Networks
Linear Networks revenues for the quarter decreased 4% to $6.7 billion, and operating income
decreased 11% to $1.6 billion. The following table provides further detail of the Linear Networks results
(in millions):
Quarter Ended
October 2, October 3,
2021 2020 Change
Supplemental revenue detail
Domestic Channels $ 5,414 $ 5,687 (5) %
International Channels 1,284 1,325 (3) %
$ 6,698 $ 7,012 (4) %
Supplemental operating income detail
Domestic Channels $ 1,390 $ 1,621 (14) %
International Channels 140 94 49 %
Equity in the income of investees 112 124 (10) %
$ 1,642 $ 1,839 (11) %
4
Domestic Channels
Domestic Channels revenues for the quarter decreased 5% to $5.4 billion and operating income
decreased 14% to $1.4 billion. The decrease in operating income was due to decreases at Broadcasting
and, to a lesser extent, at Cable.
The decrease at Broadcasting was due to lower results at ABC and the owned television stations. The
decrease at ABC was due to an increase in marketing costs and higher programming and production costs,
partially offset by higher affiliate revenue. The increase in programming and production costs was driven
by higher average cost of acquired programming in the current quarter, partially offset by the comparison
to the additional week of operations in the prior-year quarter. Affiliate revenue growth was due to an
increase in contractual rates, partially offset by the comparison to the additional week of operations in the
prior-year quarter. ABC advertising revenue was comparable to the prior-year quarter as the comparison
to the additional week of operations and the broadcast of the Emmy Awards show in the prior-year quarter
was offset by higher impressions in the current quarter, reflecting more units delivered, and increased
rates. The decrease at the owned television stations was due to lower advertising revenue reflecting a
decrease in political advertising in the current quarter and the comparison to the additional week of
operations in the prior-year quarter.
The decrease at Cable was due to lower affiliate revenue, an increase in marketing costs reflecting
more titles premiering in the current quarter, and, to a lesser extent, lower advertising revenue. These
decreases were partially offset by lower programming and production costs. Lower affiliate revenue was
due to the comparison to the additional week of operations in the prior-year quarter and fewer subscribers
in the current quarter, partially offset by an increase in contractual rates. The decrease in advertising
revenue was due to the comparison to the additional week of operations in the prior-year quarter, partially
offset by an increase in rates. Lower programming and production costs were due to decreases in costs for
NBA and MLB programming, partially offset by increased costs for college football games. In the prior
year as a result of COVID-19, NBA and MLB games were shifted into the fourth quarter, and college
football games were shifted out of the fourth quarter into the first quarter of fiscal 2021.
International Channels
International Channels revenues for the quarter decreased 3% to $1.3 billion and operating income
increased 49% to $140 million. The increase in operating income was due to a decrease in programming
and production costs and higher advertising revenue, partially offset by lower affiliate revenue.
The decrease in programming and production costs was due to the comparison to the additional week
of operations, lower write-offs in the current quarter and the impact of channel closures. These decreases
were partially offset by higher sports programming costs driven by an increased number of Indian Premier
League (IPL) cricket matches and soccer games in the current quarter due to the impact of COVID-19 in
the prior-year quarter. Advertising revenue growth was due to an increase in average viewership, partially
offset by the comparison to the additional week of operations in the prior-year quarter. Lower affiliate
revenue was due to the comparison to the additional week of operations in the prior-year quarter and
channel closures. Sports programming costs and average viewership reflected the impact of 18 IPL cricket
matches in the current quarter compared to 16 matches in the prior-year quarter. Eight of the matches in
the prior-year quarter were played in the additional week of operations.
Direct-to-Consumer
Direct-to-Consumer revenues for the quarter increased 38% to $4.6 billion and operating loss
increased from $0.4 billion to $0.6 billion. The increase in operating loss was due to higher losses at
Disney+, and to a lesser extent, ESPN+, partially offset by improved results at Hulu.
5
The higher loss at Disney+ was due to higher programming and production, marketing and
technology costs, partially offset by increases in subscription and Premier Access revenues. Higher
subscription revenue reflected subscriber growth and increases in retail pricing. Higher Premier Access
revenue was due to two releases in the current quarter, Black Widow and Jungle Cruise, compared to one
release in the prior-year quarter, Mulan. The increases in costs and subscribers reflected the ongoing
expansion of Disney+.
Lower results at ESPN+ were due to higher marketing and sports programming costs, partially offset
by subscription revenue growth. The increase in subscription revenue was due to subscriber growth and, to
a lesser extent, an increase in retail pricing.
The increase at Hulu was due to subscription revenue growth and higher advertising revenue,
partially offset by increases in programming and production and, to a lesser extent, marketing costs.
Subscription revenue growth was due to an increase in subscribers and higher rates driven by an increase
in retail pricing for the Hulu Live TV+ SVOD service in December 2020. Higher advertising revenue was
primarily due to increased impressions. The increase in programming and production costs was driven by
higher subscriber-based fees for programming the Live television service due to rate increases and an
increase in average monthly subscribers.
The following table presents the number of paid subscribers(1) (in millions) for Disney+, ESPN+ and
Hulu as of:
October 2, October 3,
2021 2020 Change
(2)
Disney+ 118.1 73.7 60 %
ESPN+ 17.1 10.3 66 %
Hulu
SVOD Only 39.7 32.5 22 %
Live TV + SVOD 4.0 4.1 (2) %
Total Hulu(3) 43.8 36.6 20 %
The following table presents the average monthly revenue per paid subscriber(4) for the quarter ended:
October 2, October 3,
2021 2020 Change
Disney+ $ 4.12 $ 4.52 (9) %
ESPN+ $ 4.74 $ 4.54 4 %
Hulu
SVOD Only $ 12.75 $ 12.59 1 %
Live TV + SVOD $ 84.89 $ 71.90 18 %
(1)
Reflects 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 the bundled offering in the
U.S. are counted as a paid subscriber for each service included in the bundle (Disney+, Hulu and ESPN+). Star+ in
Latin America is offered as a standalone service or along with Disney+. If a subscriber has either the standalone
Disney+ or Star+ service or both the Disney+ and Star+ services, they are counted as one Disney+ paid subscriber.
When we aggregate the total number of paid subscribers across our DTC services, whether acquired individually,
through a wholesale arrangement or via the bundle, we refer to them as paid subscriptions.
(2)
Includes Disney+ Hotstar and Star+. Disney+ Hotstar launched on April 3, 2020 in India (as a conversion of the
preexisting Hotstar service), on September 5, 2020 in Indonesia, on June 1, 2021 in Malaysia, and on June 30, 2021 in
Thailand. Disney+ Hotstar average monthly revenue per paid subscriber is significantly lower than the average
monthly revenue per paid subscriber for Disney+ in other markets. Star+ launched in Latin America on August 31,
2021.
6
(3)
Total may not equal the sum of the column due to rounding.
(4)
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 Premier Access and Pay-Per-View revenue. The average revenue per subscriber is net of discounts on
bundled services. The bundled discount is allocated to each service based on the relative retail price of each service on
a standalone basis. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than
subscribers that we acquire directly or through third party platforms like Apple.
The average monthly revenue per paid subscriber for Disney+ decreased from $4.52 to $4.12 due to a
higher mix of Disney+ Hotstar subscribers in the current quarter compared to the prior-year quarter.
The average monthly revenue per paid subscriber for ESPN+ increased from $4.54 to $4.74 due to an
increase in retail pricing, partially offset by a higher mix of subscribers to the bundled offering.
The average monthly revenue per paid subscriber for the Hulu SVOD Only service increased from
$12.59 to $12.75 due to a lower mix of wholesale subscribers and increases in per-subscriber premium
add-on and advertising revenue, partially offset by a higher mix of subscribers to the bundled offering.
The average monthly revenue per paid subscriber for the Hulu Live TV + SVOD service increased from
$71.90 to $84.89 due to an increase in retail pricing and higher per-subscriber advertising and premium/
feature add-on revenue, partially offset by a higher mix of subscribers to the bundled offering.
Content Sales/Licensing and Other
Content Sales/Licensing and Other revenues for the quarter increased 9% to $2.0 billion and segment
operating results decreased from an income of $86 million to a loss of $65 million. The decrease in
operating results was due to lower theatrical and TV/SVOD distribution results.
The decrease in theatrical distribution results was due to a higher operating loss from titles in release
and increased marketing expense for future releases. Jungle Cruise, Shang-Chi and the Legend of the Ten
Rings, Free Guy and Black Widow were released in the current quarter, whereas the prior-year quarter
included The New Mutants. The Company incurs significant marketing costs before and throughout the
theatrical release, which may result in a loss during theatrical distribution.
Lower TV/SVOD distribution results were due to a decrease in sales of film content, partially offset
by an increase in income from sales of episodic content. Lower results from film content sales were driven
by fewer titles sold in the current year as a result of the ongoing impact of COVID-19 and the shift from
licensing our content to third parties to distribution on our direct-to consumer services. COVID-19
reduced the content available for TV/SVOD distribution as a result of fewer films released theatrically and
production delays. Higher income from sales of episodic content was due to lower program and
development write-offs in the current quarter.
7
the entire quarter. During the periods our parks and resorts were open, they were generally operating at
reduced capacities.
Lower results at our consumer products business were driven by lower royalties from the licensed
game titles, Marvel’s Avengers and Twisted Wonderland.
The following table presents supplemental revenue and operating income (loss) detail for the Disney
Parks, Experiences and Products segment:
Quarter Ended % Change
October 2, October 3, Better
(in millions) 2021 2020 (Worse)
Supplemental revenue detail
Parks & Experiences
Domestic $ 3,473 $ 935 >100 %
International 693 474 46 %
Consumer Products 1,284 1,324 (3) %
$ 5,450 $ 2,733 99 %
Supplemental operating income (loss) detail
Parks & Experiences
Domestic $ 244 $ (1,272) nm
International (222) (343) 35 %
Consumer Products 618 670 (8) %
$ 640 $ (945) nm
In the current quarter, the Company recognized a non-cash loss to adjust its investment in DraftKings,
Inc. (DraftKings) to fair value. In the prior-year quarter, the Company recognized a non-cash gain to
8
adjust its investment in DraftKings to fair value and a gain on the sale of the Company’s 50% interest in
Endemol Shine Group (Endemol Shine gain).
Interest Expense, net
Interest expense, net was as follows (in millions):
Quarter Ended
October 2, October 3,
2021 2020 Change
Interest expense $ (323) $ (464) 30 %
Interest, investment income (loss) and other 6 (32) nm
Interest expense, net $ (317) $ (496) 36 %
The decrease in interest expense was primarily due to lower average debt balances and interest rates.
The increase in interest income, investment income (loss) and other was due to the comparison to
investment impairments recognized in the prior-year quarter, partially offset by higher pension and
postretirement benefit costs, other than service cost.
Equity in the Income of Investees
Equity in the income of investees was as follows (in millions):
Quarter Ended
October 2, October 3,
2021 2020 Change
Amounts included in segment results:
Disney Media and Entertainment Distribution $ 114 $ 113 1 %
Disney Parks, Experiences and Products 3 (4) nm
Amortization of TFCF intangible assets related to equity
investees (4) (3) (33) %
Equity in the income of investees $ 113 $ 106 7 %
Income Taxes
The effective income tax rate was as follows:
Quarter Ended
October 2, October 3,
2021 2020
Income (loss) from continuing operations before income taxes $ 290 $ (580)
Income tax expense on continuing operations 34 49
Effective income tax rate - continuing operations 11.7 % (8.4)%
The effective income tax rate in the current quarter was lower than the U.S. statutory rate due to
favorable adjustments related to prior years, partially offset by an unfavorable impact from foreign losses
for which we are unable to recognize a tax benefit. The effective income tax rate in the prior-year quarter
was higher than the U.S. statutory rate due to an unfavorable impact from foreign earnings taxed at rates
higher than the U.S. statutory rate.
9
Noncontrolling Interests
Net income attributable to noncontrolling interests was as follows (in millions):
Quarter Ended
October 2, October 3,
2021 2020 Change
Net income from continuing operations attributable to
noncontrolling interests $ (96) $ (81) (19) %
The increase in net income from continuing operations attributable to noncontrolling interests was
due to higher results at ESPN.
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 (in millions):
Year Ended
October 2, October 3,
2021 2020 Change
Cash provided by operations $ 5,566 $ 7,616 $ (2,050)
Investments in parks, resorts and other property (3,578) (4,022) 444
Free cash flow(1) $ 1,988 $ 3,594 $ (1,606)
(1)
Free cash flow is not a financial measure defined by GAAP. See the discussion on pages 11 through 14.
Cash provided by operations for fiscal 2021 decreased by $2.0 billion from $7.6 billion in the prior
year to $5.6 billion in the current year. The decrease was due to higher spending for film and television
content and cash tax payments, partially offset by a favorable working capital impact as net working
capital liabilities declined in the prior year as our businesses activities were suspended and increased in the
current year as our business activities resumed.
Capital expenditures decreased from $4.0 billion to $3.6 billion driven by the temporary suspension
of certain capital projects since the onset of COVID-19 in fiscal 2020 at Disney Parks, Experiences and
10
Products as a result of COVID-19 although spending increased in the latter part of fiscal 2021 compared
to fiscal 2020. The decrease was partially offset by higher spending on Corporate facilities.
Depreciation expense was as follows (in millions):
Year Ended
October 2, October 3,
2021 2020
Disney Media and Entertainment Distribution $ 613 $ 638
Disney Parks, Experiences and Products
Domestic 1,551 1,634
International 718 694
Total Disney Parks, Experiences and Products 2,269 2,328
Corporate 186 174
Total depreciation expense $ 3,068 $ 3,140
11
The following table presents a reconciliation of the Company’s consolidated cash provided by
operations to free cash flow (in millions):
Quarter Ended Year Ended
October 2, October 3, October 2, October 3,
2021 2020 Change 2021 2020 Change
Cash provided by operations -
continuing operations $ 2,632 $ 1,667 $ 965 $ 5,566 $ 7,616 $ (2,050)
Investments in parks, resorts and other
property (1,110) (729) (381) (3,578) (4,022) 444
Free cash flow $ 1,522 $ 938 $ 584 $ 1,988 $ 3,594 $ (1,606)
12
The following table reconciles reported diluted EPS from continuing operations to diluted EPS
excluding certain items for the fourth quarter:
Pre-Tax Tax After-Tax Change vs.
Income/ Benefit/ Income/ Diluted prior year
(in millions except EPS) Loss Expense(1) Loss(2) EPS(3) period
Quarter Ended October 2, 2021
As reported $ 290 $ (34) $ 256 $ 0.09 nm
Exclude:
Other (income) expense, net(4) 13 (3) 10 0.01
Amortization of TFCF and Hulu intangible
assets and fair value step-up on film and
television costs(5) 592 (138) 454 0.25
Restructuring and impairment charges(6) 92 (21) 71 0.04
Excluding certain items $ 987 $ (196) $ 791 $ 0.37 nm
13
The following table reconciles reported diluted EPS from continuing operations to diluted EPS
excluding certain items for the year:
Pre-Tax Tax After-Tax Change vs.
Income/ Benefit/ Income/ Diluted prior year
(in millions except EPS) Loss Expense(1) Loss(2) EPS(3) period
Year Ended Ended October 2, 2021:
As reported $ 2,561 $ (25) $ 2,536 $ 1.11 nm
Exclude:
Other (income) expense, net(4) (201) 46 (155) (0.08)
Amortization of TFCF and Hulu intangible
assets and fair value step-up on film and
television costs(5) 2,418 (562) 1,856 1.00
Restructuring and impairment charges(6) 654 (152) 502 0.27
Excluding certain items $ 5,432 $ (693) $ 4,739 $ 2.29 13 %
14
FORWARD-LOOKING STATEMENTS
15
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)
16
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; in millions, except per share data)
October 2, October 3,
2021 2020
ASSETS
Current assets
Cash and cash equivalents $ 15,959 $ 17,914
Receivables, net 13,367 12,708
Inventories 1,331 1,583
Content advances 2,183 2,171
Other current assets 817 875
Total current assets 33,657 35,251
Produced and licensed content costs 29,549 25,022
Investments 3,935 3,903
Parks, resorts and other property
Attractions, buildings and equipment 64,892 62,111
Accumulated depreciation (37,920) (35,517)
26,972 26,594
Projects in progress 4,521 4,449
Land 1,131 1,035
32,624 32,078
Intangible assets, net 17,115 19,173
Goodwill 78,071 77,689
Other assets 8,658 8,433
Total assets $ 203,609 $ 201,549
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities $ 20,894 $ 16,801
Current portion of borrowings 5,866 5,711
Deferred revenue and other 4,317 4,116
Total current liabilities 31,077 26,628
Borrowings 48,540 52,917
Deferred income taxes 7,246 7,288
Other long-term liabilities 14,522 17,204
Commitments and contingencies
Redeemable noncontrolling interests 9,213 9,249
Equity
Preferred stock — —
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares 55,471 54,497
Retained earnings 40,429 38,315
Accumulated other comprehensive loss (6,440) (8,322)
Treasury stock, at cost, 19 million shares (907) (907)
Total Disney Shareholders’ equity 88,553 83,583
Noncontrolling interests 4,458 4,680
Total equity 93,011 88,263
Total liabilities and equity $ 203,609 $ 201,549
17
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
Year Ended
October 2, October 3,
2021 2020
OPERATING ACTIVITIES
Net income (loss) from continuing operations $ 2,536 $ (2,442)
Depreciation and amortization 5,111 5,345
Goodwill and intangible asset impairments — 4,953
Net gain on investments (332) (920)
Deferred income taxes (1,241) (392)
Equity in the income of investees (761) (651)
Cash distributions received from equity investees 754 774
Net change in produced and licensed content costs and advances (4,301) 397
Net change in operating lease right of use assets / liabilities 46 31
Equity-based compensation 600 525
Pension and postretirement medical amortization 816 547
Other, net 144 94
Changes in operating assets and liabilities:
Receivables (357) 1,943
Inventories 252 14
Other assets 171 (157)
Accounts payable and other liabilities 2,410 (2,293)
Income taxes (282) (152)
Cash provided by operations - continuing operations 5,566 7,616
INVESTING ACTIVITIES
Investments in parks, resorts and other property (3,578) (4,022)
Other 407 172
Cash used in investing activities - continuing operations (3,171) (3,850)
FINANCING ACTIVITIES
Commercial paper borrowings (payments), net (26) (3,354)
Borrowings 64 18,120
Reduction of borrowings (3,737) (3,533)
Dividends — (1,587)
Proceeds from exercise of stock options 435 305
Contributions from noncontrolling interests 91 94
Acquisition of redeemable noncontrolling interests (350) —
Other (862) (1,565)
Cash provided by (used in) financing activities - continuing operations (4,385) 8,480
18
Contacts:
Zenia Mucha
Corporate Communications
818-560-5300
Tamara Munsey
Investor Relations
818-560-8273
19