Financial Highlights
| ($ in millions, except per share amounts) | 2002 | 2003 | 2004 | 2005 | 2006 |
| Revenues | |||||
| Media Networks | $ 9,733 | $10,941 | $11,778 | $13,207 | $14,638 |
| Parks and Resorts | $ 6,465 | $ 6,412 | $ 7,750 | $ 9,023 | $ 9,925 |
| Studio Entertainment | $ 6,691 | $ 7,364 | $ 8,713 | $ 7,587 | $ 7,529 |
| Consumer Products | $ 2,440 | $ 2,344 | $ 2,511 | $ 2,127 | $ 2,193 |
| $25,329 | $27,061 | $30,752 | $31,944 | $34,285 | |
| Segment Operating Income(1) (2) | |||||
| Media Networks | $ 1,227 | $ 1,557 | $ 2,574 | $ 3,209 | $ 3,610 |
| Parks and Resorts | $ 1,157 | $ 946 | $ 1,077 | $ 1,178 | $ 1,534 |
| Studio Entertainment | $ 273 | $ 620 | $ 662 | $ 207 | $ 729 |
| Consumer Products | $ 390 | $ 389 | $ 547 | $ 543 | $ 618 |
| $ 3,047 | $ 3,512 | $ 4,860 | $ 5,137 | $ 6,491 | |
| Diluted earnings per share before the cumulative effect of accounting changes | $ 0.60 | $ 0.65 | $ 1.12 | $ 1.24 | $ 1.64 |
| Cumulative effect of accounting changes | — | (0.03) | — | (0.02) | — |
| Diluted earnings per share(3) | $ 0.60 | $ 0.62 | $ 1.12 | $ 1.22 | $ 1.64 |
| Cash provided by operations | $ 2,286 | $ 2,901 | $ 4,370 | $ 4,269 | $ 6,058 |
| Free cash flow(1) | $ 1,200 | $ 1,852 | $ 2,943 | $ 2,446 | $ 4,759 |
| Effect of Euro Disney and Hong Kong Disneyland consolidation | 202 | 594 | 150 | ||
| Free cash flow before consolidation of Euro Disney and Hong Kong Disneyland(1) | $ 1,200 | $ 1,852 | $ 3,145 | $ 3,040 | $ 4,909 |
(1) These items are not financial measures defined by Generally Accepted Accounting Principles (GAAP). Reconciliations of (a) total segment operating income to income before income taxes, minority interests and the cumulative effect of accounting changes, (b) free cash flow to cash provided by operations, and (c) free cash flow before consolidation of Euro Disney and Hong Kong Disneyland to cash provided by operations are provided at the end of this Financial Review.
(2) Segment operating income in 2006 and 2005 was impacted by stock option expense of $197 million and $203 million, respectively as the Company began expensing employee stock options pursuant to the provisions of Statement of Financial Accounting Standards No. 123R, Share-Based Payment (SFAS 123R) in 2005.
(3) Diluted earnings per share in 2006 and 2005 was impacted by stock option expense of $0.07 and $0.08, respectively as the Company began expensing employee stock options pursuant to the provisions of SFAS 123R in 2005.
