Walt Disney Company (DIS)

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased 13%, from $460 million to $398 million, driven by savings from cost mitigation activities and an increase in allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased 7%, from $497 million to $460 million, primarily due to an increase in allocation of costs to the business segments, partially offset by higher investments in strategic initiatives.

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Table of Contents

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased from $460 million to $398 million for the year and from $147 million to $130 million for the quarter. For both the year and quarter, the decrease was driven by savings from cost mitigation activities and an increase in allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased from $124 million to $96 million for the quarter primarily due to the reduction and deferral of costs in various corporate departments and an increase in allocation of costs to the business segments.

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Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses are as follows:

Corporate and unallocated shared expense decreased for the quarter and six months primarily due to an increase in allocation of costs to business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased from $92 million to $80 million for the quarter due to an increase in allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased from $92 million to $80 million for the quarter due to an increase in allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased 5%, from $522 million to $497 million, primarily due to lower information technology costs including the absence of transition costs incurred in the prior year related to the transfer of certain information technology functions and services to third-party service providers.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased 5%, from $522 million to $497 million, primarily due to lower information technology costs including the absence of transition costs incurred in the prior year related to the transfer of certain information technology functions and services to third-party service providers.

Corporate and Unallocated Shared Expenses

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased from $497 million to $471 million for the year primarily due to an increase in allocation of costs to the business segments, partially offset by higher investments in new business initiatives.

For the quarter, corporate and unallocated shared expense increased from $145 million to $153 million driven by higher investments in new business initiatives, partially offset by an increase in allocation of costs to the business segments.

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Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses are as follows:

Corporate and unallocated shared expenses increased for the quarter primarily due to timing of expenses in various corporate departments and higher investments in new business initiatives, partially offset by an increase in allocation of costs to the business segments.

For the nine months, corporate and unallocated shared expenses decreased driven by an increase in allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses increased from $115 million to $127 million for the quarter primarily due to timing of expenses in various corporate departments and higher investments in new business initiatives, partially offset by an increase in the allocation of costs to the business segments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses are as follows:

Corporate and unallocated shared expenses decreased for the quarter and six months driven by an increase in the allocation of costs to the business segments and the timing of expenses in various corporate departments. The increase for the six months also included a gain on the sale of an asset in the first quarter of fiscal 2008.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased from $130 million to $98 million for the quarter driven by an increase in the allocation of costs to the business segments and the timing of expenses in various corporate departments.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased 13%, from $107 million to $93 million, driven by a gain on the sale of an asset.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses decreased 5%, from $522 million to $497 million, primarily due to lower information technology costs including the absence of transition costs from the transfer of certain information technology functions and services to third-party service providers that were incurred in the prior year.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses increased 25%, from $428 million to $536 million, primarily due to the favorable resolution of certain legal matters that reduced expenses in fiscal year 2004 and stock option expense associated with the adoption of SFAS 123R. The adoption of SFAS 123R in fiscal 2005 increased expenses by $50 million.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses for the quarter decreased from $137 million to $119 million primarily due to insurance reimbursements of previously expensed litigation costs and a write-down in the prior-year quarter related to the MovieBeam venture. These decreases were partially offset by transition costs in connection with the previously announced transfer of certain information technology functions and support services to third party service providers in the United States.

Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expenses are as follows:

The decrease in corporate and unallocated shared expenses for the quarter and nine months was primarily due to insurance reimbursements of previously expensed legal costs and a write-down related to the MovieBeam venture in the prior-year quarter. These decreases were partially offset by transition costs in connection with the previously announced transfer of certain information technology functions and support services to third party service providers in the United States. For the nine months, the decrease also reflected lower external litigation costs.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS—(continued)

      Corporate and unallocated shared expenses decreased 3% in fiscal 2004 to $428 million. Fiscal 2004 corporate and unallocated shared expenses reflected the favorable resolution of certain legal matters, partially offset by higher legal and other administrative costs.