FOR IMMEDIATE RELEASE

May 10, 2023

THE WALT DISNEY COMPANY REPORTS
SECOND QUARTER AND SIX MONTHS EARNINGS FOR FISCAL 2023
BURBANK, Calif. – The Walt Disney Company today reported earnings for its second quarter ended
April 1, 2023.
• Revenues for the quarter and six months grew 13% and 10%, respectively.
• Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.69
from $0.26 in the prior-year quarter.
• Excluding certain items(1), diluted EPS for the quarter decreased to $0.93 from $1.08 in the prior-
year quarter.
• EPS from continuing operations for the six months ended April 1, 2023 increased to $1.39 from
$0.89 in the prior-year period.
• Excluding certain items(1), diluted EPS for the six months ended April 1, 2023 decreased to $1.91
from $2.14 in the prior-year period.
“We’re pleased with our accomplishments this quarter, including the improved financial performance
of our streaming business, which reflect the strategic changes we’ve been making throughout the company
to realign Disney for sustained growth and success,” said Robert A. Iger, Chief Executive Officer, The
Walt Disney Company. “From movies to television, to sports, news, and our theme parks, we continue to
deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our
operations.”
The following table summarizes the second quarter results for fiscal 2023 and 2022 (in millions,
except per share amounts):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Revenues $ 21,815 $ 19,249 13 % $ 45,327 $ 41,068 10 %
Income from continuing operations
$ 2,123 $ 1,102 93 % $ 3,896 $ 2,790 40 %
before income taxes
Total segment operating income(1) $ 3,285 $ 3,699 (11) % $ 6,328 $ 6,957 (9) %
Net income from continuing
$ 1,271 $ 470 >100 % $ 2,550 $ 1,622 57 %
operations(2)
Diluted EPS from continuing
$ 0.69 $ 0.26 >100 % $ 1.39 $ 0.89 56 %
operations(2)
Diluted EPS excluding certain
$ 0.93 $ 1.08 (14) % $ 1.91 $ 2.14 (11) %
items(1)
Cash provided by continuing
$ 3,236 $ 1,765 83 % $ 2,262 $ 1,556 45 %
operations
Free cash flow(1) $ 1,987 $ 686 >100 % $ (168) $ (504) 67 %
(1)
Diluted EPS excluding certain items, total segment operating income and free cash flow are non-GAAP financial
measures. The most comparable GAAP measures are diluted EPS from continuing operations, income from continuing
operations before income taxes, and cash provided by continuing operations, respectively. See the discussion on page 2
and on pages 11 through 14 for how we define and calculate these measures and a reconciliation thereof to the most
directly comparable GAAP measures.
(2)
Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. after deduction of income attributable
to noncontrolling interests.

1
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.
The following are reconciliations of income from continuing operations before income taxes to total
segment operating income and revenues to total segment revenues (in millions):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Income from continuing operations
before income taxes $ 2,123 $ 1,102 93 % $ 3,896 $ 2,790 40 %
Add:
Content License Early
Termination(1) — 1,023 100 % — 1,023 100 %
Corporate and unallocated shared
expenses 279 272 (3) % 559 500 (12) %
Restructuring and impairment
charges 152 195 22 % 221 195 (13) %
Other (income) expense, net (149) 158 nm (107) 594 nm
Interest expense, net 322 355 9 % 622 666 7 %
Amortization of TFCF and Hulu
intangible assets and fair value
step-up on film and television
costs 558 594 6 % 1,137 1,189 4 %
Total segment operating income $ 3,285 $ 3,699 (11) % $ 6,328 $ 6,957 (9) %

Quarter Ended Six Months Ended

April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Revenues $ 21,815 $ 19,249 13 % $ 45,327 $ 41,068 10 %
Content License Early
Termination(1) — 1,023 100 % — 1,023 100 %
Total segment revenues $ 21,815 $ 20,272 8 % $ 45,327 $ 42,091 8 %
(1)
In February 2022, the Company 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 direct-to-
consumer services (Content License Early Termination).

2
 The following table summarizes the second quarter segment revenue and segment operating income
for fiscal 2023 and 2022 (in millions):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Segment Revenues:
Disney Media and
Entertainment Distribution $ 14,039 $ 13,620 3 % $ 28,815 $ 28,205 2 %
Disney Parks, Experiences and
Products 7,776 6,652 17 % 16,512 13,886 19 %
Total Segment Revenues $ 21,815 $ 20,272 8 % $ 45,327 $ 42,091 8 %

Segment operating income:

Disney Media and
Entertainment Distribution $ 1,119 $ 1,944 (42) % $ 1,109 $ 2,752 (60) %
Disney Parks, Experiences and
Products 2,166 1,755 23 % 5,219 4,205 24 %
Total Segment Operating Income $ 3,285 $ 3,699 (11) % $ 6,328 $ 6,957 (9) %

Disney Media and Entertainment Distribution

Revenue and operating results for the Disney Media and Entertainment Distribution segment are as
follows (in millions):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Revenues:
Linear Networks $ 6,625 $ 7,116 (7) % $ 13,918 $ 14,822 (6) %
Direct-to-Consumer 5,514 4,903 12 % 10,821 9,593 13 %
Content Sales/Licensing and
Other 2,197 1,866 18 % 4,657 4,299 8 %
Elimination of Intrasegment
Revenue(1) (297) (265) (12) % (581) (509) (14) %
$ 14,039 $ 13,620 3 % $ 28,815 $ 28,205 2 %
Operating income (loss):
Linear Networks $ 1,828 $ 2,815 (35) % $ 3,083 $ 4,314 (29) %
Direct-to-Consumer (659) (887) 26 % (1,712) (1,480) (16) %
Content Sales/Licensing and
Other (50) 16 nm (262) (82) >(100) %
$ 1,119 $ 1,944 (42) % $ 1,109 $ 2,752 (60) %
(1)
Reflects fees received by the Linear Networks from other DMED businesses for the right to air our Linear Networks
and related services.

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Linear Networks
Linear Networks revenues for the quarter decreased 7% to $6.6 billion, and operating income
decreased 35% to $1.8 billion. The following table provides further detail of Linear Networks results (in
millions):
Quarter Ended
April 1, April 2,
2023 2022 Change
Supplemental revenue detail
Domestic Channels $ 5,573 $ 5,826 (4) %
International Channels 1,052 1,290 (18) %
$ 6,625 $ 7,116 (7) %
Supplemental operating income detail
Domestic Channels $ 1,568 $ 2,349 (33) %
International Channels 85 245 (65) %
Equity in the income of investees 175 221 (21) %
$ 1,828 $ 2,815 (35) %

Domestic Channels
Domestic Channels revenues for the quarter decreased 4% to $5.6 billion, and operating income
decreased 33% to $1.6 billion. The decrease in operating income was due to lower results at both Cable
and Broadcasting.
The decrease at Cable was due to higher sports programming and production costs and, to a lesser
extent, lower affiliate and advertising revenue. The increase in sports programming and production costs
was attributable to higher College Football Playoffs (CFP) and NFL programming costs and, to a lesser
extent, contractual rate increases for NBA programming and an increase in production costs. The increase
in costs for CFP programming was due to the timing of games relative to our fiscal periods as the current
quarter included three CFP games compared to one game in the prior-year quarter. Higher NFL rights
costs were due to the timing of costs under our new agreement compared to the prior NFL agreement.
Lower affiliate revenue resulted from a decline in subscribers, partially offset by higher contractual rates.
Advertising revenue decreased because of lower impressions at the non-sports channels, partially offset by
the timing of the CFP.
The decrease at Broadcasting was due to lower results at ABC and the owned television stations, both
of which reflected lower advertising revenue. The decrease at ABC was driven by lower average
viewership, while the decrease at the owned television stations was due to lower rates.
International Channels
International Channels revenues for the quarter decreased 18% to $1.1 billion and operating income
decreased 65% to $85 million. The decrease in operating income was primarily due to lower advertising
revenue, partially offset by a decrease in programming costs.
Lower advertising revenue was due to decreases in impressions and rates and an unfavorable foreign
exchange impact. Lower impressions were attributable to decreases in average viewership at our sports
and non-sports channels. The decrease at our sports channels was primarily due to cricket programming,
which reflected airing fewer Indian Premier League (IPL) matches in the current quarter compared to the
prior-year quarter as the 2023 IPL season started approximately one week later than the 2022 season. This
decrease was partially offset by airing more Board of Control for Cricket in India matches in the current
quarter compared to the prior-year quarter.

4
 Programming costs decreased compared to the prior-year quarter due to a favorable foreign exchange
impact, partially offset by costs for new soccer rights.
Equity in the Income of Investees
Income from equity investees decreased $46 million, to $175 million from $221 million, primarily
due to lower income from A+E Television Networks attributable to a decrease in advertising revenue and
higher programming costs.
Direct-to-Consumer
Direct-to-Consumer revenues for the quarter increased 12% to $5.5 billion and operating loss
decreased $0.2 billion to $0.7 billion. The decrease in operating loss was due to improved results at
Disney+ and ESPN+, partially offset by lower operating income at Hulu.
The improvement at Disney+ was due to higher subscription revenue and a decrease in marketing
costs, partially offset by higher programming and production costs and, to a lesser extent, increased
technology costs. Higher subscription revenue was attributable to subscriber growth and increases in
retail pricing, partially offset by an unfavorable foreign exchange impact. The increase in programming
and production costs was due to more content provided on the service.
Improved results at ESPN+ were attributable to growth in subscription revenue due to an increase in
retail pricing and subscriber growth.
The decrease in operating income at Hulu was due to higher programming and production costs and
lower advertising revenue, partially offset by subscription revenue growth and, to a lesser extent, lower
marketing costs. The increase in programming and production costs was attributable to more content
provided on the service and an increase in subscriber-based fees for programming the Live TV service,
partially offset by a lower average cost mix of SVOD content. Higher subscriber-based fees for
programming the Live TV service were due to rate increases and more subscribers. The decrease in
advertising revenue resulted from lower impressions, partially offset by higher rates. Subscription revenue
growth was due to increases in retail pricing and subscribers.
Second Quarter of Fiscal 2023 Comparison to First Quarter of Fiscal 2023
The following tables and related discussion present additional information about our Disney+,
ESPN+ and Hulu direct-to-consumer (DTC) product offerings(1) on a sequential quarter basis.
Paid subscribers(1) at:
April 1, December 31,
(in millions) 2023 2022 Change
Disney+
Domestic (U.S. and Canada) 46.3 46.6 (1) %
International (excluding Disney+ Hotstar)(1) 58.6 57.7 2 %
Disney+ Core(2) 104.9 104.3 1 %
Disney+ Hotstar 52.9 57.5 (8) %
Total Disney+(2) 157.8 161.8 (2) %
ESPN+ 25.3 24.9 2 %
Hulu
SVOD Only 43.7 43.5 — %
Live TV + SVOD 4.4 4.5 (2) %
Total Hulu(2) 48.2 48.0 — %

5
 Average Monthly Revenue Per Paid Subscriber(1) for the quarter ended:
April 1, December 31,
2023 2022 Change
Disney+
Domestic (U.S. and Canada) $ 7.14 $ 5.95 20 %
International (excluding Disney+ Hotstar)(1) 5.93 5.62 6 %
Disney+ Core 6.47 5.77 12 %
Disney+ Hotstar 0.59 0.74 (20) %
Global Disney+ 4.44 3.93 13 %
ESPN+ 5.64 5.53 2 %
Hulu
SVOD Only 11.73 12.46 (6) %
Live TV + SVOD 92.32 87.90 5 %
(1)
See discussion on page 11—DTC Product Descriptions and Key Definitions
(2)
Total may not equal the sum of the column due to rounding

Domestic Disney+ average monthly revenue per paid subscriber increased from $5.95 to $7.14 due to
an increase in average retail pricing.
International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber
increased from $5.62 to $5.93 due to a favorable foreign exchange impact, a lower mix of wholesale
subscribers and an increase in wholesale pricing.
Disney+ Hotstar average monthly revenue per paid subscriber decreased from $0.74 to $0.59 due to
lower per-subscriber advertising revenue.
ESPN+ average monthly revenue per paid subscriber increased from $5.53 to $5.64 driven by higher
per-subscriber advertising revenue, partially offset by a higher mix of subscribers to multi-product
offerings.
Hulu SVOD Only average monthly revenue per paid subscriber decreased from $12.46 to $11.73 due
to lower per-subscriber advertising revenue and a higher mix of subscribers to multi-product offerings,
partially offset by an increase in average retail pricing.
Hulu Live TV + SVOD average monthly revenue per paid subscriber increased from $87.90 to
$92.32 primarily due to an increase in average retail pricing, partially offset by lower per-subscriber
advertising revenue.
Content Sales/Licensing and Other
Content Sales/Licensing and Other revenues for the quarter increased 18% to $2.2 billion and
operating results decreased from income of $16 million to a loss of $50 million. The decrease was due to
lower TV/SVOD distribution results, partially offset by an improvement at theatrical distribution.
The decrease in TV/SVOD distribution results was primarily due to lower sales volumes of film
content, which included the impact of the shift from licensing our content to third parties to distributing it
on our DTC streaming services.
The improvement at theatrical distribution was due to the continued success of Avatar: The Way of
Water, which was released in the first quarter of the current year, partially offset by the comparison to co-
production income in the prior-year quarter from Marvel’s Spider-Man: No Way Home. The current
quarter included the release of Ant-Man and the Wasp: Quantumania whereas the prior-year quarter
included the release of Death on the Nile.

6
Disney Parks, Experiences and Products
Disney Parks, Experiences and Products revenues for the quarter increased 17% to $7.8 billion and
segment operating income increased 23% to $2.2 billion. Higher operating results for the quarter reflected
increases at our international and domestic parks and experiences businesses, partially offset by lower
results at our merchandise licensing business.
Higher operating results at our international parks and resorts were due to growth at Shanghai Disney
Resort, Disneyland Paris and Hong Kong Disneyland Resort. The increase at Shanghai Disney Resort was
due to higher volumes and guest spending growth. Higher volumes were attributable to increased
attendance while guest spending growth was due to increases in average ticket prices and food, beverage
and merchandise spending. The increase in operating results at Disneyland Paris was due to volume
growth, which was attributable to higher attendance, and increased guest spending, partially offset by
higher costs. Guest spending growth was due to increases in average ticket prices, average daily hotel
room rates and food, beverage and merchandise spending. The increase in costs was primarily due to
inflation and higher costs associated with new guest offerings. Higher results at Hong Kong Disneyland
Resort reflected more operating days in the current quarter due to COVID-19-related closures in the prior-
year quarter.
Operating income growth at our domestic parks and experiences was attributable to an increase at
Disney Cruise Line, partially offset by the comparison to a real estate gain in the prior-year quarter.
Higher results at Disney Cruise Line were due to an increase in passenger cruise days including the
addition of the Disney Wish, which launched in the fourth quarter of the prior year, partially offset by
higher costs associated with our ongoing fleet expansion. Results at our domestic parks and resorts were
slightly unfavorable to the prior-year quarter, as a decrease at Walt Disney World Resort was largely
offset by growth at Disneyland Resort. The decrease at Walt Disney World Resort was due to higher costs,
partially offset by increased volumes. Higher costs reflected cost inflation, increased expenses associated
with new guest offerings and higher depreciation. The increase in volumes was due to attendance growth
and higher occupied room nights. Increased operating income at Disneyland Resort resulted from growth
in attendance and guest spending, partially offset by higher costs. Higher guest spending was due to
increases in average ticket prices and average daily hotel room rates. The increase in costs was primarily
due to higher operations support costs and increased costs associated with new guest offerings.
The decrease in merchandise licensing operating income included lower revenue from merchandise
based on Star Wars, Spider-Man, Frozen and Avengers.

7
 The following table presents supplemental revenue and operating income detail for the Disney Parks,
Experiences and Products segment:
Quarter Ended
April 1, April 2,
(in millions) 2023 2022 Change
Supplemental revenue detail
Parks & Experiences
Domestic $ 5,572 $ 4,898 14 %
International 1,184 574 >100 %
Consumer Products 1,020 1,180 (14) %
$ 7,776 $ 6,652 17 %
Supplemental operating income detail
Parks & Experiences
Domestic $ 1,519 $ 1,385 10 %
International 156 (268) nm
Consumer Products 491 638 (23) %
$ 2,166 $ 1,755 23 %

OTHER FINANCIAL INFORMATION

Restructuring and Impairment Charges
In the current quarter, the Company recorded charges of $152 million primarily for severance. During
the prior-year quarter, the Company recorded charges of $195 million due to the impairment of an
intangible asset related to the Disney Channel in Russia.
Other Income (Expense), net
In the current quarter, the Company recorded a $149 million non-cash gain to adjust its investment in
DraftKings, Inc. (DraftKings) to fair value (DraftKings gain (loss)). In the prior-year quarter, the
Company recorded a $158 million DraftKings loss.
Interest Expense, net
Interest expense, net was as follows (in millions):
Quarter Ended
April 1, April 2,
2023 2022 Change
Interest expense $ (504) $ (374) (35) %
Interest income, investment income and other 182 19 >100 %
Interest expense, net $ (322) $ (355) 9 %

The increase in interest expense was due to higher average rates, partially offset by lower average
debt balances.
The increase in interest income, investment income and other resulted from a favorable comparison of
pension and postretirement benefit costs, other than service cost, higher interest income on cash balances,
and investment gains in the current quarter compared to investment losses in the prior-year quarter.

8
Equity in the Income of Investees
Equity in the income of investees was as follows (in millions):
Quarter Ended
April 1, April 2,
2023 2022 Change
Amounts included in segment results:
Disney Media and Entertainment Distribution $ 176 $ 218 (19) %
Disney Parks, Experiences and Products — (5) 100 %
Amortization of TFCF intangible assets related to equity
investees (3) (3) — %
Equity in the income of investees $ 173 $ 210 (18) %

Income from equity investees decreased $37 million, to $173 million from $210 million, primarily
due to lower income from A+E Television Networks.
Income Taxes
The effective income tax rate was as follows:
Quarter Ended
April 1, April 2,
2023 2022
Income from continuing operations before income taxes $ 2,123 $ 1,102
Income tax expense on continuing operations 635 505
Effective income tax rate - continuing operations 29.9 % 45.8 %

The decrease in the effective income tax rate was driven by the comparison to an unfavorable impact
in the prior-year quarter from new tax regulations that limit our ability to utilize certain foreign tax credits.
Noncontrolling Interests
Net income attributable to noncontrolling interests was as follows (in millions):
Quarter Ended
April 1, April 2,
2023 2022 Change
Net income from continuing operations attributable to
noncontrolling interests $ (217) $ (127) (71) %

The increase in net income from continuing operations attributable to noncontrolling interests was
due to improved results at Shanghai Disney Resort and lower losses at Hong Kong Disneyland Resort and
at our DTC sports business, partially offset by lower results at ESPN.
Net income attributable to noncontrolling interests is determined on income after royalties and
management fees, financing costs and income taxes, as applicable.

9
Cash Flow
Cash provided by operations and free cash flow were as follows (in millions):
Six Months Ended
April 1, April 2,
2023 2022 Change
Cash provided by operations $ 2,262 $ 1,556 $ 706
Investments in parks, resorts and other property (2,430) (2,060) (370)
Free cash flow(1) $ (168) $ (504) $ 336
(1)
Free cash flow is not a financial measure defined by GAAP. See the discussion on pages 11 through 14.
Cash provided by operations increased by $706 million from $1,556 million in the prior-year period
to $2,262 million in the current period. The increase was due to higher operating income at Disney Parks,
Experiences and Products, partially offset by lower operating income at Disney Media and Entertainment
Distribution.

Capital Expenditures and Depreciation Expense

Investments in parks, resorts and other property were as follows (in millions):
Six Months Ended
April 1, April 2,
2023 2022
Disney Media and Entertainment Distribution $ 548 $ 334
Disney Parks, Experiences and Products
Domestic 1,024 1,047
International 410 391
Total Disney Parks, Experiences and Products 1,434 1,438
Corporate 448 288
Total investments in parks, resorts and other property $ 2,430 $ 2,060

Capital expenditures increased from $2.1 billion to $2.4 billion primarily due to higher spending at
Disney Media and Entertainment Distribution and Corporate. The increase at Disney Media and
Entertainment Distribution was driven by higher technology spending to support our streaming services,
while the increase at Corporate was due to higher spending on facilities.
Depreciation expense was as follows (in millions):
Six Months Ended
April 1, April 2,
2023 2022
Disney Media and Entertainment Distribution $ 333 $ 322
Disney Parks, Experiences and Products
Domestic 907 802
International 333 335
Total Disney Parks, Experiences and Products 1,240 1,137
Corporate 100 94
Total depreciation expense $ 1,673 $ 1,553

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DTC PRODUCT DESCRIPTIONS AND KEY DEFINITIONS
Product offerings
In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or
together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+.
Disney+ is available in more than 150 countries and territories outside the U.S. and Canada. In India and
certain other Southeast Asian countries, the service is branded Disney+ Hotstar. In certain Latin American
countries, we offer Disney+ as well as Star+, a general entertainment SVOD service, which is available on
a standalone basis or together with Disney+ (Combo+). Depending on the market, our services can be
purchased on our websites or through third-party platforms/apps or are available via wholesale
arrangements.
Paid subscribers
Paid subscribers reflect subscribers for which we recognized subscription revenue. Subscribers cease
to be a paid subscriber as of their effective cancellation date or as a result of a failed payment method.
Subscribers to multi-product offerings in the U.S. are counted as a paid subscriber for each service
included in the multi-product offering and subscribers to Hulu Live TV + SVOD are counted as one paid
subscriber for each of the Hulu Live TV + SVOD, Disney+ and ESPN+ services. In Latin America, if a
subscriber has either the standalone Disney+ or Star+ service or subscribes to Combo+, the subscriber is
counted as one Disney+ paid subscriber. Subscribers include those who receive a service through
wholesale arrangements including those for which we receive a fee for the distribution of the service to
each subscriber of an existing content distribution tier. When we aggregate the total number of paid
subscribers across our DTC streaming services, we refer to them as paid subscriptions.
International Disney+ (excluding Disney+ Hotstar)
International Disney+ (excluding Disney+ Hotstar) includes the Disney+ service outside the U.S. and
Canada and the Star+ service in Latin America.
Average Monthly Revenue Per Paid Subscriber
Average monthly revenue per paid subscriber is calculated based on the average of the monthly
average paid subscribers for each month in the period. The monthly average paid subscribers is calculated
as the sum of the beginning of the month and end of the month paid subscriber count, divided by two.
Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid
subscribers for the period. Revenue includes subscription fees, advertising (excluding revenue earned from
selling advertising spots to other Company businesses) and premium and feature add-on revenue but
excludes Premier Access and Pay-Per-View revenue. The average revenue per paid subscriber is net of
discounts on offerings that carry more than one service. Revenue is allocated to each service based on the
relative retail price of each service on a standalone basis. Hulu Live TV + SVOD revenue is allocated to
the SVOD services based on the wholesale price of the Hulu SVOD Only, Disney+ and ESPN+ multi-
product offering. In general, wholesale arrangements have a lower average monthly revenue per paid
subscriber than subscribers that we acquire directly or through third-party platforms.

NON-GAAP FINANCIAL MEASURES

This earnings release presents free cash flow, diluted EPS excluding certain items, and total segment
operating income, all 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 cash provided by continuing operations, diluted
EPS or income from continuing operations before income taxes as determined in accordance with GAAP.

11
Free cash flow, 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. See
further discussion of total segment operating income on page 2.

Free cash flow

The Company uses free cash flow (cash provided by continuing operations less investments in parks,
resorts and other property), among other measures, to evaluate the ability of its operations to generate cash
that is available for purposes other than capital expenditures. Management believes that information about
free cash flow provides investors with an important perspective on the cash available to service debt
obligations, make strategic acquisitions and investments and pay dividends or repurchase shares.
The following table presents a summary of the Company’s consolidated cash flows (in millions):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 2023 2022
Cash provided by operations - continuing operations $ 3,236 $ 1,765 $ 2,262 $ 1,556
Cash used in investing activities - continuing operations (1,249) (1,037) (2,541) (2,024)
Cash used in financing activities - continuing operations (83) (1,817) (1,126) (2,097)
Cash used in discontinued operations — — — (4)
Impact of exchange rates on cash, cash equivalents and restricted
cash 33 (81) 197 (116)
Change in cash, cash equivalents and restricted cash 1,937 (1,170) (1,208) (2,685)
Cash, cash equivalents and restricted cash, beginning of period 8,516 14,488 11,661 16,003
Cash, cash equivalents and restricted cash, end of period $ 10,453 $ 13,318 $ 10,453 $ 13,318

The following table presents a reconciliation of the Company’s consolidated cash provided by
operations to free cash flow (in millions):
Quarter Ended Six Months Ended
April 1, April 2, April 1, April 2,
2023 2022 Change 2023 2022 Change
Cash provided by operations -
continuing operations $ 3,236 $ 1,765 $ 1,471 $ 2,262 $ 1,556 $ 706
Investments in parks, resorts and other
property (1,249) (1,079) (170) (2,430) (2,060) (370)
Free cash flow $ 1,987 $ 686 $ 1,301 $ (168) $ (504) $ 336

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.

12
 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.
The following table reconciles reported diluted EPS from continuing operations to diluted EPS
excluding certain items for the second quarter:

Pre-Tax Tax After-Tax Change vs.

Income/ Benefit/ Income/ Diluted prior year
(in millions except EPS) Loss Expense(1) Loss(2) EPS(3) period
Quarter Ended April 1, 2023
As reported $ 2,123 $ (635) $ 1,488 $ 0.69 >100 %
Exclude:
Amortization of TFCF and Hulu intangible
assets and fair value step-up on film and
television costs(4) 558 (130) 428 0.23
Restructuring and impairment charges(5) 152 (35) 117 0.06
Other income, net(6) (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 and fair value step-up on film and
television costs(4) 594 (138) 456 0.24
Restructuring and impairment charges(5) 195 (45) 150 0.08
Other expense, net(6) 158 (37) 121 0.07
Excluding certain items $ 3,072 $ (963) $ 2,109 $ 1.08
(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).

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 The following table reconciles reported diluted EPS from continuing operations to diluted EPS
excluding certain items for the current and prior-year six-month periods:
Pre-Tax Tax After-Tax Change vs.
Income/ Benefit/ Income/ Diluted prior-year
(in millions except EPS) Loss Expense(1) Loss(2) EPS(3) period
Six Months Ended April 1, 2023:
As reported $ 3,896 $ (1,047) $ 2,849 $ 1.39 56 %
Exclude:
Amortization of TFCF and Hulu intangible
assets and fair value step-up on film and
television costs(4) 1,137 (264) 873 0.47
Restructuring and impairment charges(6) 221 (43) 178 0.10
Other income, net(5) (107) 18 (89) (0.05)
Excluding certain items $ 5,147 $ (1,336) $ 3,811 $ 1.91 (11) %

Six Months Ended April 2, 2022:

As reported $ 2,790 $ (993) $ 1,797 $ 0.89
Exclude:
Amortization of TFCF and Hulu intangible
assets and fair value step-up on film and
television costs(4) 1,189 (277) 912 0.49
Content License Early Termination 1,023 (238) 785 0.43
Other expense, net(5) 594 (138) 456 0.25
Restructuring and impairment charges(6) 195 (45) 150 0.08
Excluding certain items $ 5,791 $ (1,691) $ 4,100 $ 2.14
(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 period, intangible asset amortization was $825 million, step-up amortization was $306 million and
amortization of intangible assets related to TFCF equity investees was $6 million. For the prior-year period, intangible
asset amortization was $870 million, step-up amortization was $313 million and amortization of intangible assets
related to TFCF equity investees was $6 million.
(5)
For the current period, other income, net was due to the DraftKings gain ($79 million) and a gain on the sale of a
business ($28 million). For the prior-year period, other expense, net was due to the DraftKings loss ($590 million).
(6)
Charges for the current period related to severance and exiting our businesses in Russia. Charges for the prior-year
period were due to the impairment of an intangible asset related to the Disney Channel in Russia.

CONFERENCE CALL INFORMATION

In conjunction with this release, The Walt Disney Company will host a conference call today,
May 10, 2023, at 4:30 PM EDT/1:30 PM PDT via a live Webcast. To access the Webcast go to
www.disney.com/investors. The discussion will be archived.

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 FORWARD-LOOKING STATEMENTS

Certain statements and information in this earnings release may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding future performance and growth; business plans, strategic priorities and drivers of
growth and profitability and other statements that are not historical in nature. Any information that is not
historical in nature included in this earnings release is subject to change. These statements are made on the
basis of management’s views and assumptions regarding future events and business performance as of the
time the statements are made. Management does not undertake any obligation to update these statements.
Actual results may differ materially from those expressed or implied. Such differences may result
from actions taken by the Company, including restructuring or strategic initiatives (including capital
investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain
operations), our execution of our business plans (including the content we create and IP we invest in, our
pricing decisions, our cost structure and our management and other personnel decisions) or other business
decisions, as well as from developments beyond the Company’s control, including:
• further deterioration in domestic and global economic conditions;
• deterioration in or pressures from competitive conditions, including competition to create or
acquire content and competition for talent;
• consumer preferences and acceptance of our content, offerings, pricing model and price increases
and the market for advertising sales on our DTC services and linear networks;
• health concerns and their impact on our businesses and productions;
• international, political or military developments;
• regulatory and legal developments;
• technological developments;
• labor markets and activities, including work stoppages;
• adverse weather conditions or natural disasters; and
• availability of content.
Such developments may further affect entertainment, travel and leisure businesses generally and may,
among other things, affect (or further affect, as applicable):
• our operations, business plans or profitability;
• demand for our products and services;
• the performance of the Company’s content;
• our ability to create or obtain desirable content at or under the value we assign the content;
• the advertising market for programming;
• income tax expense; and
• performance of some or all Company businesses either directly or through their impact on those
who distribute our products.
Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended
October 1, 2022, including under the captions “Risk Factors,” “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and “Business,” quarterly reports on Form 10-Q,
including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” and subsequent filings with the Securities and Exchange
Commission.
The terms “Company,” “we,” and “our” are used in this report to refer collectively to the parent
company and the subsidiaries through which our various businesses are actually conducted.

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 THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)

Quarter Ended Six Months Ended

April 1, April 2, April 1, April 2,
2023 2022 2023 2022
Revenues $ 21,815 $ 19,249 $ 45,327 $ 41,068
Costs and expenses (19,540) (17,649) (41,059) (37,272)
Restructuring and impairment charges (152) (195) (221) (195)
Other income (expense), net 149 (158) 107 (594)
Interest expense, net (322) (355) (622) (666)
Equity in the income of investees 173 210 364 449
Income from continuing operations before income taxes 2,123 1,102 3,896 2,790
Income taxes on continuing operations (635) (505) (1,047) (993)
Net income from continuing operations 1,488 597 2,849 1,797
Loss from discontinued operations, net of income tax benefit of
— — — (48)
$0, $0, $0 and $14, respectively
Net income 1,488 597 2,849 1,749
Net income from continuing operations attributable to
(217) (127) (299) (175)
noncontrolling interests
Net income attributable to The Walt Disney Company (Disney) $ 1,271 $ 470 $ 2,550 $ 1,574

Earnings (loss) per share attributable to Disney(1):

Diluted
Continuing operations $ 0.69 $ 0.26 $ 1.39 $ 0.89
Discontinued operations — — — (0.03)
$ 0.69 $ 0.26 $ 1.39 $ 0.86
Basic
Continuing operations $ 0.70 $ 0.26 $ 1.40 $ 0.89
Discontinued operations — — — (0.03)
$ 0.70 $ 0.26 $ 1.40 $ 0.86

Weighted average number of common and common equivalent

shares outstanding:
Diluted 1,831 1,828 1,829 1,828
Basic 1,828 1,822 1,827 1,820
(1)
Total may not equal the sum of the column due to rounding.

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 THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; in millions, except per share data)
April 1, October 1,
2023 2022
ASSETS
Current assets
Cash and cash equivalents $ 10,399 $ 11,615
Receivables, net 12,770 12,652
Inventories 1,848 1,742
Content advances 1,872 1,890
Other current assets 1,374 1,199
Total current assets 28,263 29,098
Produced and licensed content costs 36,949 35,777
Investments 3,387 3,218
Parks, resorts and other property
Attractions, buildings and equipment 69,695 66,998
Accumulated depreciation (41,452) (39,356)
28,243 27,642
Projects in progress 5,175 4,814
Land 1,161 1,140
34,579 33,596
Intangible assets, net 13,887 14,837
Goodwill 77,878 77,897
Other assets 9,915 9,208
Total assets $ 204,858 $ 203,631
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities $ 18,591 $ 20,213
Current portion of borrowings 3,452 3,070
Deferred revenue and other 6,013 5,790
Total current liabilities 28,056 29,073
Borrowings 45,066 45,299
Deferred income taxes 8,134 8,363
Other long-term liabilities 13,232 12,518
Commitments and contingencies
Redeemable noncontrolling interests 8,814 9,499
Equity
Preferred stock — —
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares 56,919 56,398
Retained earnings 46,236 43,636
Accumulated other comprehensive loss (4,389) (4,119)
Treasury stock, at cost, 19 million shares (907) (907)
Total Disney Shareholders’ equity 97,859 95,008
Noncontrolling interests 3,697 3,871
Total equity 101,556 98,879
Total liabilities and equity $ 204,858 $ 203,631

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 THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)

Six Months Ended

April 1, April 2,
2023 2022
OPERATING ACTIVITIES
Net income from continuing operations $ 2,849 $ 1,797
Depreciation and amortization 2,616 2,556
Net (gain)/loss on investments and disposition of businesses (88) 632
Deferred income taxes (46) 983
Equity in the income of investees (364) (449)
Cash distributions received from equity investees 363 406
Net change in produced and licensed content costs and advances (824) (2,279)
Equity-based compensation 570 450
Pension and postretirement medical benefit cost amortization 2 310
Other, net (234) 264
Changes in operating assets and liabilities:
Receivables (413) (342)
Inventories (107) (97)
Other assets (345) (676)
Accounts payable and other liabilities (2,133) (1,349)
Income taxes 416 (650)
Cash provided by operations - continuing operations 2,262 1,556

INVESTING ACTIVITIES
Investments in parks, resorts and other property (2,430) (2,060)
Other, net (111) 36
Cash used in investing activities - continuing operations (2,541) (2,024)

FINANCING ACTIVITIES
Commercial paper borrowings (payments), net 714 (130)
Borrowings 70 70
Reduction of borrowings (1,000) (1,400)
Sale of noncontrolling interest 178 —
Acquisition of redeemable noncontrolling interest (900) —
Other, net (188) (637)
Cash used in financing activities - continuing operations (1,126) (2,097)

CASH FLOWS FROM DISCONTINUED OPERATIONS

Cash provided by operations - discontinued operations — 8
Cash used in financing activities - discontinued operations — (12)
Cash used in discontinued operations — (4)

Impact of exchange rates on cash, cash equivalents and restricted cash 197 (116)

Change in cash, cash equivalents and restricted cash (1,208) (2,685)

Cash, cash equivalents and restricted cash, beginning of period 11,661 16,003
Cash, cash equivalents and restricted cash, end of period $ 10,453 $ 13,318

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Contacts:

David Jefferson
Corporate Communications
818-560-4832

Alexia Quadrani
Investor Relations
818-560-6601

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