2
SEGMENT RESULTS
The following table summarizes the fourth quarter and full year segment operating results for fiscal
2018 and 2017 (in millions):
Quarter Ended Year Ended
Sept. 29,
2018
Sept. 30,
2017
Change
Sept. 29,
2018
Sept. 30,
2017
Change
Revenues:
Media Networks $ 5,963 $ 5,465 9 % $ 24,500 $ 23,510 4 %
Parks and Resorts 5,070 4,667 9 % 20,296 18,415 10 %
Studio Entertainment 2,151 1,432 50 % 9,987 8,379 19 %
Consumer Products &
Interactive Media
1,123 1,215 (8)% 4,651 4,833 (4)%
$ 14,307 $ 12,779 12 % $ 59,434 $ 55,137 8 %
Segment operating
income:
Media Networks $ 1,528 $ 1,475 4 % $ 6,625 $ 6,902 (4)%
Parks and Resorts 829 746 11 % 4,469 3,774 18 %
Studio Entertainment 596 218 >100 % 2,980 2,355 27 %
Consumer Products &
Interactive Media
337 373 (10)% 1,632 1,744 (6)%
$ 3,290 $ 2,812 17 % $ 15,706 $ 14,775 6 %
DISCUSSION OF FULL YEAR CONSOLIDATED RESULTS
For the year, the increase in diluted EPS was due to a lower effective income tax rate, higher segment
operating income, a decrease in weighted average shares outstanding as a result of our share repurchase
program and the benefit from gains on the sale of real estate. These increases were partially offset by the
comparison to a non-cash net gain in connection with the acquisition of a controlling interest in
BAMTech, LLC (BAMTech) in the prior year, impairments of our equity investments in Vice Group
Holding, Inc. (Vice) and Villages Nature in the current year and higher net interest and corporate and
unallocated shared expenses.
The decrease in the effective income tax rate was due to the impact of the Tax Act, which included:
• A net benefit of $1.7 billion, which reflected a $2.1 billion benefit from remeasuring our deferred
tax balances to the new statutory rate (Deferred Remeasurement), partially offset by a charge of
$0.4 billion for a one-time tax on certain accumulated foreign earnings (Deemed Repatriation
Tax).
• A reduction of the Company’s fiscal 2018 U.S. statutory federal income tax rate to 24.5% from
35.0% in the prior year, which resulted in a net benefit of approximately $1.2 billion.
Higher segment operating income was due to increases at Parks and Resorts and Studio
Entertainment, partially offset by decreases at Media Networks and Consumer Products & Interactive
Media. The increase at Parks and Resorts was due to growth at both our domestic and international
operations. The increase at our domestic operations was due to higher guest spending and volumes,
partially offset by cost inflation, higher technology and operations support expenses and a special fiscal
2018 domestic employee bonus. In addition, results reflected the comparison to the negative prior-year
impacts of Hurricanes Irma and Matthew. Internationally, the increase was due to higher guest spending
and volumes at both Disneyland Paris and Hong Kong Disneyland Resort. The increase at Studio
Entertainment was due to the exceptional performance of our theatrical releases driven by Black Panther,
Star Wars: The Last Jedi, Avengers: Infinity War and Incredibles 2. The decrease at Media Networks was