We believe that these three metrics, taken together, are closely linked to building long term value for shareholders. We believe, further, that it is critical that we focus on all three of these metrics over time, as opposed to emphasizing a particular one or only analyzing a single-period snapshot.

In our view, targeting growth in operating income alone can create demand for inappropriately high levels of capital. By contrast, focusing solely on improving capital returns could cause us to under-invest and thereby potentially forego an attractive source of future growth. Our goal is to grow earnings, but we want to do it through the efficient, targeted and profitable allocation of capital.

We also focus on cash flow because, over the long term, cash flow is the bottom line driver of valuation. Evaluating our cash flow over time allows us to assess how efficiently the Company is translating its performance into funds we can use to pursue internal and external growth opportunities, meet our debt obligations or return capital to shareholders via dividends or share repurchase.

In short, when we're able to grow operating income, improve returns on capital and deliver strong cash flow at the same time — as we did in fiscal 2004 — it gives us greater confidence that our financial results reflect fundamentally sound corporate strategies that are driving growth and increasing the value of the Company for our shareholders.

Disney enjoys competitive advantages that underpin all of our successes, both financial and creative. The first is our tremendous library of creative content and characters. In the long run, we prosper from the inventiveness of our film, television and other programming; our ability to connect with our audiences; enhancing our products using technological advances; delighting people around the world with our toys, clothing and other consumer products; and surprising our Guests with magical experiences at the parks, cruise lines and resorts.

Our second competitive advantage is our ability to do more with and extend the life and profitability of our creativity. We possess a body of enduring content, characters, stories and entertainment experiences whose long-term richness and popularity are virtually impossible for a competitor to replicate. What truly sets us apart is the way we work together to amplify our creative properties across multiple lines of business, with each consumer experience further strengthening our brands. If we continue to deliver indispensable content — and continue to do so in the unique way that only Disney can — the developers of new technologies and the owners of distribution platforms will continue to depend on us to help launch their products or drive their penetration.

A third source of differentiation is the incredible strength of our brands — both domestically and internationally. Increasingly, we will look beyond the United States for future growth and our brand strength in those markets will serve as the platform for that growth.