Q2 Media & Entertainment Distribution Results
Non-GAAP Financial Measures
This presentation includes diluted EPS excluding certain items and total segment operating income, both of which are important financial measures for the
Company, but are not financial measures defined by GAAP.
These measures should be reviewed in conjunction with the most comparable GAAP financial measures and are not presented as alternative measures of diluted
EPS or income from continuing operations before income taxes as determined in accordance with GAAP. Diluted EPS excluding certain items and total segment
operating income as we have calculated them may not be comparable to similarly titled measures reported by other companies.
Segment Results
The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income as
a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about total segment operating
income assists investors by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational
factors that affect net income, thus providing separate insight into both operations and other factors that affect reported results. See page 15 for a reconciliation of
total segment operating income.
Diluted EPS excluding certain items
The Company uses diluted EPS excluding (1) certain items affecting comparability of results from period to period and (2) amortization of TFCF and Hulu intangible
assets, including purchase accounting step-up adjustments for released content, to facilitate the evaluation of the performance of the Company's operations
exclusive of these items, and these adjustments reflect how senior management is evaluating segment performance.
The Company believes that providing diluted EPS exclusive of certain items impacting comparability is useful to investors, particularly where the impact of the
excluded items is significant in relation to reported earnings and because the measure allows for comparability between periods of the operating performance of
the Company's business and allows investors to evaluate the impact of these items separately.
The Company further believes that providing diluted EPS exclusive of amortization of TFCF and Hulu intangible assets associated with the acquisition in 2019 is
useful to investors because the TFCF and Hulu acquisition was considerably larger than the Company's historic acquisitions with a significantly greater acquisition
accounting impact.
©Disney
Second Fiscal Quarter Ended April 1, 2023 14View entire presentation