As noted in the footnotes, certain measures used in this financial review are not financial measures defined by GAAP. The following tables reconcile these measures to the most comparable financial measures defined by GAAP.
| 2001 | 2002 | 2003 | 2004 | 2005 | |
 |
|||||
| Segment operating income Corporate and unallocated shared expenses Amortization of intangible assets Gain on sale of businesses and restructuring and impairment charges Net interest expense Equity in the income of interests |
$4,005 (406) (767) (1,432) (417) 300 |
$2,822 (417) (21) 34 (453) 225 |
$3,174 (443) (18) — (793) 334 |
$4,488 (428) (12) (64) (617) 372 |
$4,654 (536) (11) (6) (597) 483 |
|
|||||
| Income before income taxes, minority interests and the cumulative effect of accounting charges |
$1,283 |
$2,190 |
$2,254 |
$3,739 |
$3,987 |
|
|||||
The consolidation of Euro Disney and Hong Kong Disneyland increased reported capital expenditures because the capital expenditures of those operations are now included in our financial results, so for comparability purposes, we also look at capital expenditures excluding capital expenditures of those operations.
| 2004 | 2005 | |
|
||
| Media Networks Parks and Resorts Domestic International Studio Entertainment Consumer Products Corporate and unallocated shared expenditures  |
$ 221 719 289 39 14 145 |
$ 228 726 711 37 10 111 |
|
||
| $1,427 | $1,823 | |
| Less: Capital expenditures of Euro Disney and Hong Kong Disneyland |
(289) |
(711) |
|
||
| $1,138 | $1,112 | |
|
||
The Company defines "Free Cash Flow" as cash provided by operations less investments in parks, resorts and other property.
| 2001 | 2002 | 2003 | 2004 | 2005 | |
|
|||||
| Cash provided by operations Investments in parks, resorts and other property |
$3,048 (1,795) |
$2,286 (1,086) |
$2,901 (1,049) |
$4,370 (1,427) |
$4,269 (1,823) |
|
|||||
| Free cash flow | $ 1,253 | $ 1,200 | $ 1,852 | $ 2,943 | $ 2,446 |
|
|||||
| 2004 | Before Euro Disney and Hong Kong Disneyland Consolidation | Euro Disney, Hong Kong Disneyland and Adjustments | Total |
|
|||
| Cash provided by operations Investments in parks, resorts and other property |
$4,283 (1,138) |
$87 (289) |
$4,370 (1,427) |
|
|||
| Free cash flow | $ 3,145 | $ (202) | $ 2,943 |
|
|||
| 2005 | Before Euro Disney and Hong Kong Disneyland Consolidation | Euro Disney, Hong Kong Disneyland and Adjustments | Total |
|
|||
| Cash provided by operations Investments in parks, resorts and other property |
$4,152 (1,112) |
$117 (711) |
$4,269 (1,823) |
|
|||
| Free cash flow | $ 3,040 | $ (594) | $ 2,446 |
|
|||
Please see the Company's Consolidated Statements of Cash Flows in the Financial Section (PDF) of this Annual Report.
The Company defines "net borrowings" as total borrowings less cash and cash equivalents. The consolidation of Euro Disney and Hong Kong Disneyland increases net borrowings because the borrowings of those operations are now included in the consolidated borrowings, so for comparability purposes, we also look at net borrowings excluding net borrowings of those operations.
| 2001 | 2002 | 2003 | 2004 | 2005 | |
|
|||||
| Current portion of borrowings Long-term portion of borrowings |
$ 829 8,940 |
$ 1,663 12,467 |
$ 2,457 10,643 |
$ 4,093 9,395 |
$2,310 10,157 |
|
|||||
| Total borrowings | $9,769 | $14,130 | $13,100 | $13,488 | $12,467 |
| Cash and cash
equivalents |
(618) |
(1,239) |
(1,583) |
(2,042) |
(1,723) |
|
|||||
| Net borrowings | $9,151 | $12,891 | $11,517 | $11,446 | $10,744 |
| Less: net borrowings of Euro Disney and Hong Kong Disneyland |
— |
— |
— |
(2,454) |
(2,418) |
|
|||||
| Net borrowings excluding Euro Disney and Hong Kong Disneyland |
$ 9,151 |
$12,891 |
$ 11,517 |
$ 8,992 |
$ 8,326 |
|
|||||
