The Walt Disney Companyannual report 2001
Introduction
Financial Highlights
Letter to Shareholders
Financial Review
Key Businesses
DisneyHand
Parks and Resorts
Walt Disney Imagineering
Studio Entertainment
Media Networks
Consumer Products
Walt Disney International
Financials
Board of Directors
Walt Disney Company and Subsidiaries
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Financial review
Overview
Recent Performance
Shareholder Value
Operating Efficiencies
Capital Structure
Investor Returns 		  Capital Structure
The company seeks to manage its debt balances and interest rate risk to reduce its overall cost of capital, balanced against the primary goal of maintaining the strength, flexibility, and liquidity of Disney's balance sheet. As of November 30, 2001, the company's net debt balances were approximately $14.5 billion, including borrowings to finance the acquisition of Fox Family Worldwide.

The strength of the company's balance sheet reflects Disney's position as a premier global media and entertainment company with diversified sources of revenue and cash flow, unique brand franchises and prudent financial policies. This strength, coupled with the power of the Disney brand around the world, enables the company to access the global capital markets on an opportunistic basis at attractive borrowing rates. By carefully balancing its proportion of fixed- versus floating-rate interest obligations, the company has also enjoyed reduced debt service costs as a result of the reduction in overall market interest rates over the past year. Management believes that the company's cash flow and earnings potential will contribute to even greater financial strength and flexibility going forward.