The Company reported earnings per share (EPS) of $1.12 for the fiscal year, an increase of 72% versus the prior year's EPS of $0.65 before the cumulative effect of accounting change. A portion of earnings both this year and last came from events during the year that we do not believe are characteristic of our long-term operations. Excluding these items, our earnings growth for the fiscal year was a still-substantial 64% above last year.⁽¹⁾

As we look ahead to fiscal 2005, barring negative turns in the environment and excluding the potential impact from unusual or extraordinary items, we expect to drive double-digit EPS growth from operations versus 2004, together with further improvement in our capital returns. We were very pleased to see balanced performance in 2004, with segment operating income growing at each of our operating segments.

⁽¹⁾Fiscal 2004's earnings per share was $1.08 per share excluding approximately $0.06 per share benefit from the settlement of certain income tax issues and approximately $0.02 per share of restructuring and impairment charges associated with the sale of The Disney Stores North America. Fiscal 2003's earnings per share before the cumulative effect of accounting change was $0.66 excluding approximately $0.04 per share negative impact from the write-off of an aircraft leveraged lease investment and approximately $0.03 per share benefit from the settlement of certain income tax issues.

⁽²⁾FIN 46R, a new accounting rule implemented this year, requires that we fully consolidate the financial results for our Paris and Hong Kong theme parks, beginning April 1, 2004. For comparability purposes, Euro Disney and Hong Kong Disneyland are excluded in this chart. Including the impact of FIN 46R, Parks Operating Income for the year ending September 30, 2004 is $1,123 million. See reconciliation of non-GAAP financial metrics to equivalent GAAP financial metrics at end of the Financial Review.