v3.23.1
Segment Information
 6 Months Ended
Apr. 01, 2023
Segment Information Segment Information
The Company’s operations are conducted in the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) segments. Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer to allocate resources and assess performance.
Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income/expense, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and acquisition accounting amortization of TFCF Corporation (TFCF) and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition in fiscal 2019 (TFCF and Hulu acquisition amortization). Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions.
Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption.
Segment revenues and segment operating income are as follows:
 Quarter EndedSix Months Ended
 April 1,
2023		April 2,
2022		April 1,
2023		April 2,
2022
Revenues:
Disney Media and Entertainment Distribution$14,039 $13,620 $28,815   $28,205   
Disney Parks, Experiences and Products7,776 6,652 16,512 13,886 
Total segment revenues$21,815 $20,272 $45,327 $42,091 
Segment operating income:
Disney Media and Entertainment Distribution$1,119 $1,944 $1,109 $2,752 
Disney Parks, Experiences and Products2,166 1,755 5,219 4,205 
Total segment operating income(1)
$3,285 $3,699 $6,328 $6,957 
(1) Equity in the income of investees is included in segment operating income as follows:
 Quarter EndedSix Months Ended
 April 1,
2023		April 2,
2022		April 1,
2023		April 2,
2022
Disney Media and Entertainment Distribution$176   $218   $372   $463   
Disney Parks, Experiences and Products— (5) (2) (8)
Equity in the income of investees included in segment operating income176 213 370 455 
Amortization of TFCF intangible assets related to equity investees(3)(3)(6)(6)
Equity in the income of investees, net$173 $210 $364 $449 
A reconciliation of segment revenues to total revenues is as follows:
 Quarter EndedSix Months Ended
 April 1,
2023		April 2,
2022		April 1,
2023		April 2,
2022
Segment revenues$21,815 $20,272   $45,327 $42,091   
Content License Early Termination(1)
—   (1,023)—   (1,023)
Total revenues$21,815 $19,249 $45,327 $41,068 
(1)In February 2022, the Company early terminated certain license agreements with a customer for film and television content, which was delivered in previous years, in order for the Company to use the content primarily on our DTC services (Content License Early Termination). Because the content is functional intellectual property (IP), we had recognized substantially all of the consideration to be paid by the customer under the licenses as revenue in prior years when the content was made available under the agreements. Consequently, we recorded the amounts to terminate the licenses agreements, net of remaining amounts of deferred revenue, as a reduction of revenue.
A reconciliation of segment operating income to income from continuing operations before income taxes is as follows:
 Quarter EndedSix Months Ended
 April 1,
2023		April 2,
2022		April 1,
2023		April 2,
2022
Segment operating income$3,285 $3,699   $6,328 $6,957 
Content License Early Termination—   (1,023)— (1,023)
Corporate and unallocated shared expenses(279)  (272)(559)(500)
Restructuring and impairment charges(152)(195)(221)  (195)  
Other income (expense), net(1)
149 (158)107 (594)
Interest expense, net(322)(355)(622)(666)
TFCF and Hulu acquisition amortization(2)
(558)(594)(1,137)(1,189)
Income from continuing operations before income taxes$2,123 $1,102 $3,896 $2,790 
(1)See Note 4 for a discussion of amounts in other income (expense), net.
(2)TFCF and Hulu acquisition amortization is as follows:
Quarter EndedSix Months Ended
April 1,
2023		April 2,
2022		April 1,
2023		April 2,
2022
Amortization of intangible assets$408 $435   $825 $870 
Step-up of film and television costs147   156 306 313 
Intangibles related to TFCF equity investees3   3 6 6 
$558 $594 $1,137 $1,189 
Goodwill
The changes in the carrying amount of goodwill are as follows:
DMEDDPEPTotal
Balance at October 1, 2022$72,347 $5,550 $77,897 
Currency translation adjustments and other, net(19)— (19)
Balance at April 1, 2023$72,328 $5,550 $77,878