Q2 Media & Entertainment Distribution Results
Diluted EPS Excluding Certain Items
(In millions except EPS)
The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items:
(in millions except EPS)
Pre-Tax
Income/Loss
Tax Benefit/
Expense
(1)
After-Tax
Income/Loss
(2)
Diluted EPS (3)
Change vs. prior
year period
Quarter Ended April 1, 2023
As reported
$2,123
($635)
$1,488
$0.69
>100 %
Exclude:
Amortization of TFCF and Hulu intangible assets
(4)
558
(130)
428
0.23
and fair value step-up on film and television costs
(5)
Restructuring and impairment charges"
152
(35)
117
0.06
Other Income, net
(149)
35
(114)
(0.06)
Excluding certain items
$2,684
($765)
$1,919
$0.93
(14%)
Quarter Ended April 2, 2022
As reported
$1,102
($505)
$597
$0.26
Exclude:
Content license early termination
1,023
(238)
785
0.43
Amortization of TFCF and Hulu intangible assets
0.24
(4)
594
(138)
456
and fair value step-up on film and television costs
Restructuring and impairment charges
(5)
195
(45)
150
0.08
(6)
Other expense, net
158
(37)
121
0.07
$3,072
($963)
$2,109
$1.08
Excluding certain items
(1) Tax benefit/expense is determined using the tax rate applicable to the individual item.
(2) Before noncontrolling interest share.
(3) Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding.
(4) For the current quarter, intangible asset amortization was $408 million, step-up amortization was $147 million and amortization of intangible assets related to TFCF equity investees was $3 million. For the prior-year quarter, intangible asset amortization
was $435 million, step-up amortization was $156 million and amortization of intangible assets related to TFCF equity investees was $3 million
(5) Charges for the current quarter were primarily for severance. Charges for the prior-year quarter were due to the impairment of an intangible asset related to the Disney Channel in Russia.
(6) In the current quarter, other income, net was due to the DraftKings gain ($149 million). For the prior-year quarter, other expense, net was due to the DraftKings loss ($158 million).
©Disney
Second Fiscal Quarter Ended April 1, 2023
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