Analysis of segment disclosure footnote

The Walt Disney Company identifies four operating segments. Following are excerpts from the description provided in the companys September 30, 2017 10-K:

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

Media Networks	The Media Networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.
Parks and Resorts	The Company owns and operates the Walt Disney World Resort in Florida: the Disneyland Resort in California; Disneyland Paris; Aulani, a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The Company manages and has effective ownership interests of 47% in Hong Kong Disneyland Resort and 43% in Shanghai DisneyResort, both of which are consolidated in our financial statements. The Company also licenses our intellectual property to a third party to operate the Tokyo Disney Resort in Japan. The Company's Walt Disney Imagineering unit designs and develops new theme park concepts and attractions as well as resort properties.
Studio Entertainment	The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays.
Consumer Products & Interactive Media	The Consumer Products & Interactive Media segment licenses the Company's trade names, characters, and visual and literary properties to various manufacturers, game developers, publishers, and retailers throughout the world. We also develop and publish games, primarily for mobile platforms, and books, magazines, and comic books.The segment also distributes branded merchandise directly through retail, online, and wholesale businesses. In addition, the segment's operations include website management and design, primarily for other Company businesses, and the development and distribution of online video content.

The segment footnote in The Walt Disney Company 2017 annual report follows (in millions):

	2017		2016		2015
Revenues
Media Networks	$23,510		$23,689		$23,264
Parks and Resorts	18,415		16,974		16,162
Studio Entertainment
Third parties	7,887		8,701		6,838
Intersegment	492		740		528
	8,379		9,441		7,366
Consumer Products
Third parties	5,325		6,268		6,201
Intersegment	(492)		(740)		(528)
	4,833		5,528		5,673
Segment operating income (loss)
Media Networks	$6,902		$7,755		$7,793
Parks and Resorts	3,774		3,298		3,031
Studio Entertainment	2,355		2,703		1,973
Consumer Products & Interactive Media	1,744		1,965		1,884
Total segment operating income	$14,775		$15,721		$14,681
Reconciliation of segment operating income to income
before income taxes
Segment operating income	$14,775		$15,721		$14,681
Corporate and unallocated shared expenses	(582)		(640)		(643)
Restructuring and impairment charges	(98)		(156)		(53)
Other income, net	78		-		-
Interest expense, net	(385)		(260)		(117)
Vice gain		-		332		-
Infinity charge	-		(129)		-
Income before income taxes	$13,788		$14,868		$13,868
Capital expenditures
Media Networks
Cable Networks	$75		$86		$127
Broadcasting	64		80		71
Parks and Resorts
Domestic	2,375		2,180		1,457
International	816		2,035		2,147
Studio Entertainment	85		86		107
Consumer Products & Interactive Media	30		53		87
Corporate	178		253		269
Total capital expenditures	$3,623		$4,773		$4,265
Depreciation expense
Media Networks	$225		$237		$245
Parks and Resorts
Domestic	1,336		1,273		1,169
International	660		445		345
Studio Entertainment	50		51		55
Consumer Products & Interactive Media	63		63		69
Corporate	252		251		249
Total depreciation expense	$2,586		$2,320		$2,132
Amortization of intangible assets
Media Networks	$12		$18		$21
Parks and Resorts	3		3		3
Studio Entertainment	65		74		84
Consumer Products & Interactive Media	116		112		114
Total amortization of intangible assets	$196		$207		$222
Identifiable assets
Media Networks	$32,475		$32,706
Parks and Resorts	29,492		28,275
Studio Entertainment	16,307		15,359
Consumer Products & Interactive Media	8,996		9,332
Corporate	4,919		6,361
Unallocated Goodwill	3,600		-
Total consolidated assets	$95,789		$92,033

a. For 2017, confirm that each of Disneys segments exceeds one or more of the quantitative thresholds.

Calculate the quantitative threshold tests for 2017.

Round answers to the nearest percent (ex: 0.2345 = 23%).

% revenues			Revenues	Operating Income		Assets
Media Networks			Answer		Answer		Answer
Parks and Resorts			Answer		Answer		Answer
Studio Entertainment			Answer		Answer		Answer
Consumer Products & Interactive Media			Answer		Answer		Answer

c. Compute a rough DuPont analysis for 2017 of the operating segments

(i.e., profit/revenues, revenues/total assets, and return on assets as the product of the profit and turnover ratios).

Round profit margin to nearest percent (ex: 0.2345 = 23%).

Round asset turnover to two decimal places.

For ROA, use previous rounded figures to compute and round final to the nearest percent.

			PM	AT		ROA
Media Networks			Answer		Answer Incorrect Mark 0.00 out of 1.00		Answer
Parks and Resorts			Answer		Answer		Answer
Studio Entertainment			Answer		Answer		Answer
Consumer Products & Interactive Media			Answer		Answer		Answer

d. Compute the free cash flow for each operating segment over the three-year period using the following definition: free cash flow = operating profit + depreciation and amortization - capital expenditures.

Use negative signs with answers, when appropriate.

Free cash flow				2017		2016		2015
Media Networks				Answer		Answer		Answer
Parks and Resorts				Answer		Answer		Answer
Studio Entertainment				Answer		Answer		Answer
Consumer Products & Interactive Media				Answer		Answer		Answer
Total				Answer		Answer		Answer