Cash and cash equivalents (USD, millions)

Receivables, net (USD, millions)

Inventories (USD, millions)

Content advances (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Produced and licensed content costs (USD, millions)

Investments (USD, millions)

Attractions, buildings and equipment (USD, millions)

Accumulated depreciation (USD, millions)

Parks, resorts and other property (USD, millions)

Intangible assets, net (USD, millions)

Goodwill (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Accounts payable and other accrued liabilities (USD, millions)

Current portion of borrowings (USD, millions)

Deferred revenue and other (USD, millions)

Total current liabilities (USD, millions)

Borrowings (USD, millions)

Deferred income taxes (USD, millions)

Other long-term liabilities (USD, millions)

Common stock (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Treasury stock, at cost (USD, millions)

Total Disney Shareholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

853b1f1e72583179fac3cb925192da31a7cd9d593b521f9e4163500285a17207

The significant jump in operating cash flow for **FY 2024** was driven by a combination of factors including **lower film and television production spending**, favorable **timing of sports rights payments**, and the receipt of **collateral related to hedging programs** (compared to collateral payments in the previous year). Additionally, **higher operating income in the Entertainment segment**, the absence of a prior-year payment for a content license termination, and **deferred tax payments** also contributed to the increase.  **[0001744489-24-000275_fy2024_q4xprxex991.htm:7]** **[0001744489-24-000276_dis-20240928.htm:71]** 

What drove the significant jump in operating cash flow for FY 2024?

The investing outflows in Q3 2024 spiked mainly due to **increased investments in parks, resorts, and other properties**—notably higher spending on expanding the cruise ship fleet and launching new attractions at the Experiences segment—combined with a significant **cash outflow of $980 million** for Epic Games, Inc., contrasting with a prior period cash inflow from the sale of investments.  **[0001744489-24-000232_dis-20240629.htm:56]** **[0001744489-24-000231_fy2024_q3xprxex991.htm:7]** 

Why did the investing outflows spike in Q3 2024?

The documents do not provide any specific reasons for the **drop** in operating cash flow in Q1 2025 compared to Q4 2024. While one document explains that Q1 2025’s cash provided by operations was **$3,205 million** (down from **$5,518 million** in Q4 2024)  **[0001744489-24-000276_dis-20240928.htm:113]** **[0001744489-25-000067_dis-20241228.htm:4]** , the only explanation available focuses on the **year-over-year increase** from Q1 2024 to Q1 2025, driven by factors such as **lower tax payments**, **higher operating income in Entertainment**, and **changes in production and payment timing for sports rights**.  **[0001744489-25-000067_dis-20241228.htm:42]** **[0001744489-25-000066_fy2025_q1xprxex991.htm:7]**  There is no discussion in the documents of any factors that led to a quarter-over-quarter drop.

What factors led to the drop in operating cash flow in Q1 2025?

e75ee53d020c27c490241e1a3e5cdd828da46ee6ab4a0b673d62f67b68459f79

Net income for Q2 2024 dropped drastically primarily due to a significant increase in **goodwill impairments** and related restructuring charges, which soared to **$2,052 million** compared to **$152 million** in Q2 2023. This massive impairment, along with lower operating income in critical segments—such as a **22% drop** in operating income for **Linear Networks** and a shift from an operating income of **$83 million** to an operating loss of **$18 million** in the **Content Sales/Licensing** segment—placed considerable pressure on overall earnings. Additionally, the high **interest expense of $311 million** compounded the situation, despite some offsetting improvements from segments like Direct-to-Consumer and Experiences.  **[0001744489-24-000149_fy2024_q2xprxex991.htm:7]** **[0001744489-24-000152_dis-20240330.htm:34]** **[0001744489-24-000149_fy2024_q2xprxex991.htm:2]** **[0001744489-24-000152_dis-20240330.htm:3]** 

Why did net income drop so drastically in Q2 2024?

Disney’s attributable net income turned negative in Q2 2024 primarily due to **significant goodwill impairment charges of $2,052 million**, which had an immediate adverse effect on profitability. This was exacerbated by **lower operating income in key segments**, notably in the Entertainment segment (decline in theatrical and TV/VOD revenue) and in the Sports segment (higher programming and production costs), as well as **increased inflationary cost pressures particularly impacting the Experiences segment**. Additionally, the absence of other income that had been recorded in Q2 2023 further contributed to the negative net income.  **[0001744489-24-000149_fy2024_q2xprxex991.htm:7]** **[0001744489-24-000149_fy2024_q2xprxex991.htm:0]** **[0001744489-24-000152_dis-20240330.htm:34]** **[0001744489-24-000152_dis-20240330.htm:32]** **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]** 

What drove Disney’s attributable net income into negative territory in Q2 2024?

The low pre-tax income in Q2 2024 was primarily due to **heavy restructuring and impairment charges**—specifically, **$2,052 million** in charges mainly related to goodwill impairments from the Star India Transaction and declines in performance in key segments. Although there were improvements in the Entertainment and Direct-to-Consumer segments, declines in the Linear Networks and Content Sales segments, along with the absence of other income that had previously added **$149 million** and only a modest offset from decreased interest expense, led to pre-tax income dropping significantly to **$657 million** (a **69% decline** compared to Q2 2023).  **[0001744489-24-000152_dis-20240330.htm:37]** **[0001744489-24-000149_fy2024_q2xprxex991.htm:7]** **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]** 

Why was pre-tax income so low in Q2 2024?

Several factors contributed to the **significant jump** in full-year net income for FY 2024. The net income increase was driven by **revenue growth** — total revenues rose by **3% to $91.4 billion** from **$88.9 billion**, with higher subscription, parks and experiences, and advertising revenues playing key roles.  **[0001744489-24-000276_dis-20240928.htm:60]** **[0001744489-24-000275_fy2024_q4xprxex991.htm:0]**  Additionally, there was a notable **improvement in operating income**, especially in the Entertainment segment, along with increased profitability in the Direct-to-Consumer segment.  **[0001744489-24-000275_fy2024_q4xprxex991.htm:0]**  **Cost management** also improved as the cost of services decreased by **1% (or $0.6 billion)** due to lower non-sports programming and production costs.  **[0001744489-24-000276_dis-20240928.htm:60]**  Furthermore, a **reduction in restructuring and impairment charges**—from **$3,892 million** in FY 2023 to **$3,595 million** in FY 2024—helped boost net income, and finally, gains in **interest and investment income** helped offset higher interest expenses.  **[0001744489-24-000276_dis-20240928.htm:60]** **[0001744489-24-000276_dis-20240928.htm:59]** 

What factors contributed to the significant jump in full-year net income in FY 2024?

1f2f5b13916782cb617af7522918d6c3f70fb2538f9fc8e7f445520f48e211a1

Cash provided by operations (USD, millions)

Cash used in investing activities (USD, millions)

Cash used in financing activities (USD, millions)

Impact of exchange rates on cash, cash equivalents and restricted cash (USD, millions)

Change in cash, cash equivalents and restricted cash (USD, millions)

Investments in parks, resorts and other property (USD, millions)

Net income (USD, millions)

Depreciation and amortization (USD, millions)

Goodwill impairment and impairment of produced and licensed content and other assets (USD, millions)

Equity in the income of investees (USD, millions)

Cash distributions received from equity investees (USD, millions)

Net change in produced and licensed content costs and advances (USD, millions)

Equity-based compensation (USD, millions)

Other, net (Operating Activities) (USD, millions)

Other assets (Operating Activities) (USD, millions)

Income taxes (USD, millions)

Other, net (Investing Activities) (USD, millions)

Commercial paper borrowings, net (USD, millions)

Reduction of borrowings (USD, millions)

Repurchases of common stock (USD, millions)

Acquisition of redeemable noncontrolling interests (USD, millions)

Other, net (Financing Activities) (USD, millions)

Cash, cash equivalents and restricted cash, beginning of period (USD, millions)

Cash, cash equivalents and restricted cash, end of period (USD, millions)

Accounts payable and other liabilities (USD, millions)

7bc167823751d50087d015d1dbcc2085e8d340d05a5b1915799070244928cb83

Total revenues (USD, millions)

Total costs and expenses (USD, millions)

Restructuring and impairment charges (USD, millions)

Interest expense, net (USD, millions)

Income (loss) before income taxes (USD, millions)

Net income (loss) (USD, millions)

Net income attributable to noncontrolling interests (USD, millions)

Net income (loss) attributable to The Walt Disney Company (Disney) (USD, millions)

7b51b0e93d3e6d5e712a898c3922a7696fdbc0e9671f1277da6a23d457a170c3

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

653dbd3ec3828ac1965a81f59093163172b841ca841e29b7da528d3f1a87c464

Current Assets (USD, millions)

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Inventory (USD, millions)

Non-Current Assets (USD, millions)

Property, Plant, and Equipment (PP&E) (USD, millions)

Intangible Assets (USD, millions)

Current Liabilities (USD, millions)

Accounts Payable (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Non-Current Liabilities (USD, millions)

Long-term Debt (USD, millions)

Lease Liabilities (USD, millions)

Deferred Tax Liabilities (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

a239b44a7dd97f2d70e6c8a0b9f21c0a9a0136bc4e5626f96c5d17b9fa3372ac

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

D&A (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD/share)

EPS - Diluted (USD/share)

c5e494feda0d6413dab6589d3f87570eb09f15d62052a656b8e78fe95eb40742

a38368bb29b40642b048953c82d421e162304b139afbae2d3784b08e6f4a12ee

Americas

- Entertainment

- Sports

- Experiences

- Eliminations

United States and Canada

Europe

Asia Pacific

Latin America

Total Revenue

1a5803b912dc80169ddce3027f22fef6212ea44475e83681c22b3aa7b6458753

Entertainment

- Subscription Fees

- Affiliate Fees

- Advertising

- Merchandise Licensing

- TV/VOD Distribution Licensing

- Theatrical Distribution Licensing

- Home Entertainment

- Other

Sports

Experiences

- Theme Park Admissions

- Retail and Wholesale Sales

- Resort and Vacations

Eliminations

c62a7407a9d83a955d1a30bb065d4e49eb877342a48eb5bff51ce63bd9c8f107

Walt Disney (DIS)

Financials