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Segment Information | 9 Months Ended
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Jun. 29, 2024
Segment Information | Segment Information The Company’s operations are reported in three segments: Entertainment, Sports and Experiences, for which separate financial information is evaluated regularly by the Chief Executive Officer to allocate resources and assess performance. Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income/expense, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes amortization of intangible assets and the fair value step-up for film and television costs recognized in connection with the acquisition of TFCF Corporation (TFCF) and Hulu in fiscal 2019 (TFCF and Hulu Acquisition Amortization). Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption. Segment revenues and segment operating income are as follows:
| Quarter Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Revenues: |  |  |  |  |  |  |
Entertainment |  |  |  |  |  |  |
Third parties | $ | 10,478 |  |  | $ | 10,031 |  |  | $ | 30,050 |  |  | $ | 30,827 |
Intersegment | 102 |  |  | 96 |  |  | 307 |  |  | 284 |
| 10,580 |  |  | 10,127 |  |  | 30,357 |  |  | 31,111 |
Sports |  |  |  |  |  |  |
Third parties | 4,291 |  |  | 4,101 |  |  | 12,826 |  |  | 12,441 |
Intersegment | 267 |  |  | 234 |  |  | 879 |  |  | 760 |
| 4,558 |  |  | 4,335 |  |  | 13,705 |  |  | 13,201 |
Experiences | 8,386 |  |  | 8,198 |  |  | 25,911 |  |  | 24,389 |
Eliminations | (369) |  |  | (330) |  |  | (1,186) |  |  | (1,044) |
Total segment revenues | $ | 23,155 |  |  | $ | 22,330 |  |  | $ | 68,787 |  |  | $ | 67,657 |
Segment operating income: |  |  |  |  |  |  |
Entertainment | $ | 1,201 |  |  | $ | 408 |  |  | $ | 2,856 |  |  | $ | 1,208 |
Sports | 802 |  |  | 854 |  |  | 1,477 |  |  | 1,484 |
Experiences | 2,222 |  |  | 2,297 |  |  | 7,613 |  |  | 7,195 |
Total segment operating income | $ | 4,225 |  |  | $ | 3,559 |  |  | $ | 11,946 |  |  | $ | 9,887 |
Equity in the income of investees is included in segment operating income as follows:
| Quarter Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Entertainment | $ | 123 |  |  | $ | 174 |  |  | $ | 432 |  |  | $ | 527 |
Sports | 26 |  |  | 20 |  |  | 45 |  |  | 39 |
Experiences | — |  |  | — |  |  | — |  |  | (2) |
Equity in the income of investees included in segment operating income | 149 |  |  | 194 |  |  | 477 |  |  | 564 |
Amortization of TFCF intangible assets related to an equity investee | (3) |  |  | (3) |  |  | (9) |  |  | (9) |
Equity in the income of investees, net | $ | 146 |  |  | $ | 191 |  |  | $ | 468 |  |  | $ | 555 |
A reconciliation of segment operating income to income before income taxes is as follows:
| Quarter Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Segment operating income | $ | 4,225 |  |  | $ | 3,559 |  |  | $ | 11,946 |  |  | $ | 9,887 |
Corporate and unallocated shared expenses | (328) |  |  | (295) |  |  | (1,027) |  |  | (854) |
Restructuring and impairment charges(1) | — |  |  | (2,650) |  |  | (2,052) |  |  | (2,871) |
Other income (expense), net(2) | (65) |  |  | (11) |  |  | (65) |  |  | 96 |
Interest expense, net | (342) |  |  | (305) |  |  | (899) |  |  | (927) |
TFCF and Hulu Acquisition Amortization(3) | (397) |  |  | (432) |  |  | (1,282) |  |  | (1,569) |
Income (loss) before income taxes | $ | 3,093 |  |  | $ | (134) |  |  | $ | 6,621 |  |  | $ | 3,762 |
(1)See Note 16 for a discussion of amounts in restructuring and impairment charges. (2)“Other income (expense), net” for the quarter and nine months ended June 29, 2024 reflected a charge of $65 million related to a legal ruling. In the prior-year quarter and nine months ended July 1, 2023, the Company recognized a gain of $90 million and $169 million, respectively, on its investment in DraftKings, Inc. (DraftKings Gain), which was sold in the prior-year quarter. “Other income (expense), net” for the prior-year quarter and nine months ended July 1, 2023 also included a charge of $101 million related to a legal ruling. (3)TFCF and Hulu Acquisition Amortization is as follows:
| Quarter Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Amortization of intangible assets | $ | 326 |  |  | $ | 361 |  |  | $ | 1,068 |  |  | $ | 1,186 |
Step-up of film and television costs | 68 |  |  | 68 |  |  | 205 |  |  | 374 |
Intangibles related to a TFCF equity investee | 3 |  |  | 3 |  |  | 9 |  |  | 9 |
| $ | 397 |  |  | $ | 432 |  |  | $ | 1,282 |  |  | $ | 1,569 |

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