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FINANCIAL REVIEW OVERVIEW
The Walt Disney Company’s primary financial goals are to maximize earnings and cash flow from existing businesses and to allocate capital profitably toward growth initiatives that will drive long-term shareholder value. In pursuing these goals, the company continues to focus on the key factors that have driven strong results since The Walt Disney Company’s inception: the ongoing development of the company’s powerful brand and character franchises and an emphasis on creative excellence and high quality in all Disney products. Despite a significant number of important creative accomplishments and higher revenues exceeding $23 billion, fiscal 1999 earnings compared unfavorably with those of the prior year. While the company is taking steps to address the issues that have had a negative impact on financial results, the near-term dynamics at work in several of Disney’s businesses are expected to continue in fiscal 2000. A more detailed description of 1999 results can be found in the section of this Annual Report entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations.
FINANCIAL REPORTING In 1999, the company introduced a new financial reporting structure designed to provide investors with a better understanding of the dynamics of Disney’s businesses and the value of its assets. Instead of the three operating segments it previously reported, Disney now reports along five lines of business. Theme Parks and Resorts is reported as before. Broadcasting is now referred to as Media Networks, with a further breakdown separating cable networks from broadcast-related businesses, in order to reflect the breadth of the assets in this segment. Creative Content is now reported in three parts: Studio Entertainment, Consumer Products and Internet and Direct Marketing. After the fiscal year end, the Internet and Direct Marketing businesses were combined with Infoseek to form Disney’s Internet business, GO.com. |
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