Question

Walt Disney: Segment revenue analysis

The Walt Disney Company is a leading worldwide entertainment company. Disney operates five business segments. These segments and some of their larger businesses are:

Media Networks: ABC Network, ESPN, Disney Channel, and A&E

Parks and Resorts: Walt Disney World Resort, Disneyland, and International Disney Resorts

Studio Entertainment: Walt Disney Pictures, Pixar, Marvel, and Lucasfilm

Consumer Products: licensing of Disney characters, publishing, and retail stores

Interactive: video games

Recent comparative revenues for the five segments are as follows (in millions):

Walt Disney: Segment revenue analysis

The Walt Disney Company is a leading worldwide entertainment company. Disney operates five business segments. These segments and some of their larger businesses are:

Media Networks: ABC Network, ESPN, Disney Channel, and A&E

Parks and Resorts: Walt Disney World Resort, Disneyland, and International Disney Resorts

Studio Entertainment: Walt Disney Pictures, Pixar, Marvel, and Lucasfilm

Consumer Products: licensing of Disney characters, publishing, and retail stores

Interactive: video games

Recent comparative revenues for the five segments are as follows (in millions):

		Year 3		Year 1
Media Networks		$21,152		$19,436
Parks and Resorts		15,099		12,920
Studio Entertainment		7,278		5,825
Consumer Products		3,985		3,252
Interactive		1,299		845
Total		$48,813		$42,278

c. Prepare a horizontal analysis of the segment sales between Year 1 and Year 3. (Round percentages to nearest whole percent.)

Segment		Year 3		Year 1		Amount Change		% Change
Media Networks		$21,152		$19,436		$		%
Parks and Resorts		15,099		12,920				%
Studio Entertainment		7,278		5,825				%
Consumer Products		3,985		3,252				%
Interactive		1,299		845				%
Total		$48,813		$42,278		$		%

Answer 1

Walt Disney horizontal analysis of the 5 segment sales between Year 1 and Year 3
Segment	Media Networks	Parks & Resorts	Studio Entertainment	Consumer Products	Interactive	Total
Year 3 (A)	$21,152.00	$15,099.00	$7,278.00	$3,985.00	$1,299.00	$48,813.00
Year 1 (B)	$19,436.00	$12,920.00	$5,825.00	$3,252.00	$845.00	$42,278.00
Amount Change (A-B)	$1,716.00	$2,179.00	$1,453.00	$733.00	$454.00
% Change[()]	109%	117%	125%	123%	154%
Note- Percentages are rounded off to nearest whole percent