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Analysis of segment disclosure footnote The Walt Disney Company identifies four operating segments. Following are excerpts from the description provided in the company's October 3
Analysis of segment disclosure footnote
The Walt Disney Company identifies four operating segments. Following are excerpts from the description provided in the company's
October 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.
The segment footnote in The Walt Disney Company annual report follows in millions:
a For confirm that each of Disneys segments exceeds one or more of the quantitative thresholds. Calculate the quantitative threshold tests for
Note: Round answers to the nearest percent ex:
Revenues Operating Income Assets
Media Networks Answer
Answer
Answer
Parks, Experiences and Products Answer
Answer
Answer
Studio Entertainment Answer
Answer
Answer
DirecttoConsumer & International Answer
Answer
Answer
Using your calculations, indicate whether the segment exceeds each quantitative threshold test or not. Select Yes or No using the dropdown answer menu.
Revenues Operating Income Assets
Media Networks Answer
Yes
Answer
Yes
Answer
Yes
Parks, Experiences and Products Answer
Yes
Answer
No
Answer
Yes
Studio Entertainment Answer
Yes
Answer
Yes
Answer
Yes
DirecttoConsumer & International Answer
Yes
Answer
Yes
Answer
Yes
b Using the breakdown of revenues and profit by segment, rank Disneys operating segments by the proportion of profit contributed in relation to its proportion of revenues. Select segments in the table below in order of highest to lowest.
Rank in order of highest to lowest
Answer
Media Networks
Answer
Studio Entertainment
Answer
Parks, Experiences and Products
Answer
DirecttoConsumer & International
c Compute a rough DuPont analysis for of the operating segments ie profitrevenues revenuestotal assets, and return on assets as the product of the profit and turnover ratios
Note: Round profit margin to nearest percent ex:
Note: Round asset turnover to two decimal places.
Note: For ROA, use previous rounded figures to compute and round final to the nearest percent.
Note: Use negative signs with answers, when appropriate.
PM AT ROA
Media Networks Answer
Answer
Answer
Parks, Experiences and Products Answer
Answer
Answer
Studio Entertainment Answer
Answer
Answer
DirecttoConsumer & International Answer
Answer
Answer
d Compute the free cash flow for each operating segment over the threeyear period using the following definition: free cash flow operating profit depreciation and amortization capital expenditures.
Note: Use negative signs with answers, when appropriate.
Free cash flow
Media Networks Answer
Answer
Answer
Parks, Experiences and Products Answer
Answer
Answer
Studio Entertainment Answer
Answer
Answer
DirecttoConsumer & International Answer
Answer
Answer
Total Answer
Answer
Answer
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