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2017 2016 2015 Revenues $23,510 $23,689 $23,264 18,415 16,974 16,162 Media Networks Parks and Resorts Studio Entertainment Third parties Intersegment 7,887 8,701 6,838 528 492 740 8,379 9,441 7,366 Consumer Products Third parties Intersegment 6,268 5,325 (492) 4,833 (740) 5,528 6,201 (528) 5,673 $6,902 $7,755 $7,793 3,774 3,298 3,031 2,355 2,703 1,973 1,744 1,965 1,884 $14,775 $15,721 $14,681 (53) Segment operating income (loss) Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Total segment operating income Reconciliation of segment operating income to income before income taxes Segment operating income Corporate and unallocated shared expenses Restructuring and impairment charges Other income, net Interest expense, net Vice gain Infinity charge Income before income taxes Capital expenditures Media Networks Cable Networks Broadcasting Parks and Resorts Domestic International Studio Entertainment Consumer Products & Interactive Media $14,775 $15,721 $14,681 (582) (640) (643) (98) (156) 78 (385) (260) (117) 332 (129) $13,788 $14,868 $13,868 $75 $86 $127 64 80 71 2,375 2,180 1,457 2,147 816 2,035 85 86 107 30 53 87 $3,623 $4,773 $4,265 $225 $237 $245 1,336 1,273 445 1,169 345 660 50 51 55 63 63 69 252 251 249 $2,586 $2,320 $2,132 $12 $18 $21 Total capital expenditures Depreciation expense Media Networks Parks and Resorts Domestic International Studio Entertainment Consumer Products & Interactive Media Corporate Total depreciation expense Amortization of intangible assets Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Total amortization of intangible assets Identifiable assets Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Corporate Unallocated Goodwill Total consolidated assets 3 3 3 84 65 116 74 112 $207 114 $196 $222 $32,475 $32,706 29,492 28,275 16,307 15,359 8,996 9,332 4,919 6,361 3,600 $95,789 $92,033 a. For 2017, confirm that each of Disney's 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%). Operating Income Assets Revenues 43% 59 % X % revenues Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media 14 % 7 x 33% 15 % 9 % 4 % 3 x 54 % x 30 % X 16 % x Using your calculations, indicate whether the segment exceeds each quantitative threshold test or not. Select Yes or No using the drop-down answer menu. Operating Revenues Income Assets Yes Yes Yes Yes Media Networks Yes Parks and Resorts Yes Studio Entertainment Yes Consumer Products & Interactive Media No Yes Yes Yes Yes b. Using the breakdown of revenues and profit by segment, rank Disney's operating segments by the proportion of profit contributed in relation to its proportion of revenues. Select the answer that shows the segments in the correct order of highest to lowest. OMedia Networks, Parks and Resorts, Studio Entertainment, Consumer Products & Interactive Media OParks and Resorts, Media Networks, Studio Entertainment, Consumer Products & Interactive Media OMedia Networks, Parks and Resorts, Consumer Products, Studio Entertainment & Interactive Media OParks and Resorts, Media Networks, Consumer Products, Studio Entertainment, & Interactive Media Mark 1.00 out of 1.00 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 29 % 0% x 0 % x Parks and Resorts 20% 0% x 0 % x x Studio Entertainment 28 % 0 % x 0% x Consumer Products & Interactive Media 36 % 0 % x 0 % x 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 $ 0 x $ Ox $ OX Parks and Resorts OX OX OX Studio Entertainment OX 0 X 0 x Consumer Products & Interactive Media OX OX OX Total $ 0 X $ 0X $ OX 2017 2016 2015 Revenues $23,510 $23,689 $23,264 18,415 16,974 16,162 Media Networks Parks and Resorts Studio Entertainment Third parties Intersegment 7,887 8,701 6,838 528 492 740 8,379 9,441 7,366 Consumer Products Third parties Intersegment 6,268 5,325 (492) 4,833 (740) 5,528 6,201 (528) 5,673 $6,902 $7,755 $7,793 3,774 3,298 3,031 2,355 2,703 1,973 1,744 1,965 1,884 $14,775 $15,721 $14,681 (53) Segment operating income (loss) Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Total segment operating income Reconciliation of segment operating income to income before income taxes Segment operating income Corporate and unallocated shared expenses Restructuring and impairment charges Other income, net Interest expense, net Vice gain Infinity charge Income before income taxes Capital expenditures Media Networks Cable Networks Broadcasting Parks and Resorts Domestic International Studio Entertainment Consumer Products & Interactive Media $14,775 $15,721 $14,681 (582) (640) (643) (98) (156) 78 (385) (260) (117) 332 (129) $13,788 $14,868 $13,868 $75 $86 $127 64 80 71 2,375 2,180 1,457 2,147 816 2,035 85 86 107 30 53 87 $3,623 $4,773 $4,265 $225 $237 $245 1,336 1,273 445 1,169 345 660 50 51 55 63 63 69 252 251 249 $2,586 $2,320 $2,132 $12 $18 $21 Total capital expenditures Depreciation expense Media Networks Parks and Resorts Domestic International Studio Entertainment Consumer Products & Interactive Media Corporate Total depreciation expense Amortization of intangible assets Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Total amortization of intangible assets Identifiable assets Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Corporate Unallocated Goodwill Total consolidated assets 3 3 3 84 65 116 74 112 $207 114 $196 $222 $32,475 $32,706 29,492 28,275 16,307 15,359 8,996 9,332 4,919 6,361 3,600 $95,789 $92,033 a. For 2017, confirm that each of Disney's 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%). Operating Income Assets Revenues 43% 59 % X % revenues Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media 14 % 7 x 33% 15 % 9 % 4 % 3 x 54 % x 30 % X 16 % x Using your calculations, indicate whether the segment exceeds each quantitative threshold test or not. Select Yes or No using the drop-down answer menu. Operating Revenues Income Assets Yes Yes Yes Yes Media Networks Yes Parks and Resorts Yes Studio Entertainment Yes Consumer Products & Interactive Media No Yes Yes Yes Yes b. Using the breakdown of revenues and profit by segment, rank Disney's operating segments by the proportion of profit contributed in relation to its proportion of revenues. Select the answer that shows the segments in the correct order of highest to lowest. OMedia Networks, Parks and Resorts, Studio Entertainment, Consumer Products & Interactive Media OParks and Resorts, Media Networks, Studio Entertainment, Consumer Products & Interactive Media OMedia Networks, Parks and Resorts, Consumer Products, Studio Entertainment & Interactive Media OParks and Resorts, Media Networks, Consumer Products, Studio Entertainment, & Interactive Media Mark 1.00 out of 1.00 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 29 % 0% x 0 % x Parks and Resorts 20% 0% x 0 % x x Studio Entertainment 28 % 0 % x 0% x Consumer Products & Interactive Media 36 % 0 % x 0 % x 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 $ 0 x $ Ox $ OX Parks and Resorts OX OX OX Studio Entertainment OX 0 X 0 x Consumer Products & Interactive Media OX OX OX Total $ 0 X $ 0X $ OX

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