BURBANK, Calif.-The Walt Disney Company (NYSE: DIS) today reported earnings for its fourth quarter and fiscal year ended October 3, 2020. Diluted earnings per share (EPS) from continuing operations for the fourth quarter was a loss of $0.39 compared to income of $0.43 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter was a loss of $0.20 compared to income of $1.07 in the prior-year quarter. EPS from continuing operations for the year was a loss of $1.57 compared to income of $6.26 in the prior year. Excluding certain items affecting comparability(1), EPS for the year decreased to $2.02 from $5.76 in the prior year. Results in the quarter and fiscal year ended October 3, 2020 were adversely impacted by the novel coronavirus (COVID-19). The most significant impact was at the Parks, Experiences and Products segment where since the second quarter of the fiscal year, our parks and resorts have been closed or operating at significantly reduced capacity and our cruise ship sailings have been suspended.

'Even with the disruption caused by COVID-19, we've been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,' said Bob Chapek, Chief Executive Officer, The Walt Disney Company. 'The real bright spot has been our direct-to-consumer business, which is key to the future of our company, and on this anniversary of the launch of Disney+ we're pleased to report that, as of the end of the fourth quarter, the service had more than 73 million paid subscribers - far surpassing our expectations in just its first year.'

The following table summarizes the fourth quarter and full year results for fiscal 2020 and 2019 (in millions, except per share amounts):

Results for fiscal year 2020 included TFCF Corporation (TFCF) and Hulu LLC (Hulu) for the entire year, whereas results in the prior year included TFCF and Hulu for the period March 20, 2019 through September 28, 2019. The impact of the approximately six month non-comparable period is referred to as the consolidation of TFCF and Hulu. In addition, fiscal 2020 results for the full year and fourth quarter include one additional week of operations. The Company's fiscal year end is on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. Fiscal 2020 is a fifty-three week year, which began on September 29, 2019 and ended on October 3, 2020. We estimate that the additional week resulted in a benefit to pre-tax income of approximately $200 million, primarily at the Media Networks segment.

SEGMENT RESULTS

The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and the other factors that affect reported results.

The following is a reconciliation of income (loss) from continuing operations before income taxes to total segment operating income (in millions):

See details at: https://thewaltdisneycompany.com/the-walt-disney-company-reports-fourth-quarter-and-full-year-earnings-for-fiscal-2020/

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Lowell Singer

Investor Relations

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