Analysis of segment disclosure footnote The Walt Disney Company identifies five operating segments. Following are excerpts from the description provided in the companys 2014 10-K: The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. Media Networks The Media Networks segment includes broadcast and cable television networks, television production operations, television distribution, 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, 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 . . . in Disneyland Paris, in Hong Kong Disneyland Resort and in Shanghai DisneyResort. The Company also licenses the operations of the Tokyo Disney Resort in Japan. The Companys 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 The Consumer Products segment engages with licensees, publishers and retailers throughout the world to design, develop, publish, promote and sell a wide variety of products based on the Companys intellectual property through its Merchandise Licensing, Publishing and Retail businesses. In addition to using the Companys film and television properties, Consumer Products also develops its own intellectual property, which can be used across the Companys businesses. Interactive The Interactive segment creates and delivers branded entertainment and lifestyle content across interactive media platforms. Interactives primary operations include the production and global distribution of multiplatform games, the licensing of content for games and mobile devices, website management and design for other Company businesses and the development of branded online services. The segment footnote in The Walt Disney Company 2014 annual report follows (in millions): SEGMENT INFORMATION The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. 2014 2013 2012 Revenues Media Networks $21,152 $20,356 $19,436 Parks and Resorts 15,099 14,087 12,920 Studio Entertainment Third parties 6,988 5,721 5,566 Intersegment 290 258 259 7,278 5,979 5,825 Consumer Products Third parties 4,274 3,811 3,499 Intersegment (289) (256) (247) 3,985 3,555 3,252 Interactive Third parties 1,300 1,066 857 Intersegment (1) (2) (12) 1,299 1,064 845 Total consolidated revenues $48,813 $45,041 $42,278 Segment operating income (loss) Media Networks $7,321 $6,818 $6,619 Parks and Resorts 2,663 2,220 1,902 Studio Entertainment 1,549 661 722 Consumer Products 1,356 1,112 937 Interactive 116 (87) (216) Total segment operating income $13,005 $10,724 $9,964 Reconciliation of segment operating income to income before income taxes Segment operating income $13,005 $10,724 $9,964 Corporate and unallocated shared expenses (611) (531) (474) Restructuring and impairment charges (140) (214) (100) Other income/(expense), net (31) (69) 239 Interest income/(expense), net 23 (235) (369) Hulu equity redemption charge - (55) - Income before income taxes $12,246 $9,620 $9,260 Capital expenditures Media Networks Cable Networks $172 $176 $170 Broadcasting 88 87 85 Parks and Resorts Domestic 1,184 1,140 2,242 International 1,504 970 641 Studio Entertainment 63 78 79 Consumer Products 43 45 69 Interactive 5 13 27 Corporate 252 287 471 Total capital expenditures $3,311 $2,796 $3,784 Depreciation expense Media Networks $238 $238 $241 Parks and Resorts Domestic 1,117 1,041 927 International 353 327 314 Studio Entertainment 48 54 48 Consumer Products 59 57 55 Interactive 10 20 17 Corporate 239 220 182 Total depreciation expense $2,064 $1,957 $1,784 Amortization of intangible assets Media Networks $12 $13 $17 Parks and Resorts 2 2 - Studio Entertainment 88 107 94 Consumer Products 109 89 60 Interactive 13 24 32 Corporate - - - Total amortization of intangible assets $224 $235 $203 Identifiable assets Media Networks $29,887 $28,627 Parks and Resorts 23,335 22,056 Studio Entertainment 15,155 14,750 Consumer Products 7,526 7,506 Interactive 2,259 2,311 Corporate 6,024 5,991 Total consolidated assets $84,186 $81,241 a. Confirm that each of Disneys segments exceeds one or more of the quantitative thresholds. Calculate the quantitative threshold tests for 2014 and 2013. Round answers to one decimal place (ex: 0.2345 = 23.5%). Use negative signs with answers, when appropriate. c. Compute a rough DuPont analysis over the past three years 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 answers to one decimal place (ex: 0.2345 = 23.5%). Use negative signs with answers, when appropriate. 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.