Using Disney Form 10K https://www.thewaltdisneycompany.com/wp-content/uploads/20

Question

Using Disney Form 10K

https://www.thewaltdisneycompany.com/wp-content/uploads/2017-Annual-Report.pdf

Determine what the company's comprehensive income is for the year (and prior 2 years).

Identify what items are flowing through comprehensive income. Is comprehensive income higher or lower than net income? Why?

Identify the company's Earnings per Share for the year (and prior 2 years).

Identify whether the company has both basic and diluted EPS. What trends do you see in comprehensive income and earnings per share?

Has the company issued dividends, stock dividends or had a stock split in the past three years? Based on your additional analysis of the company, how has your evaluation of the company's financial health changed since your analysis during Week 2?

Explanation / Answer

Using the Disney Form 10K:

1). Company's comprehensive Income for the year:
2017 = $9792 millions
2016 = $8134 millions
2015 = $8322 millions

2). Items which are flowing through comprehensive Income are:
Net Income
Market Value adjustment for investments.
Market Value adjustment for hedges.
Pension and postretirement medical plan adjustments.
Foreign currency translation and other

3). Net Income for the year
2017 = $9366 millions
2016 = $9790 millions
2015 = $8852 millions
Here comprehensive income is higher than Net Income in year 2017 while in 2016 and 2015 it is lower than net income because in prior 2 years other comprehensive income is in negative means loss while in year 2017 it is positive means income which added to the net income while in prior years it reduces the net income.

4).Basic EPS of the company:-
2017 = 5.73
2016 = 5.76
2015 = 4.95

5). Yes, the company has both basic and diluted EPS.
From the year 2015 to 2016, EPS increased both basic and diluted while from year 2016 to 2017, EPS decreased but with small margin. If we see trend from the year 2015 to 2017 as a whole, there is a positive trend of EPS of the company.
While for the comprehensive income it is reduced from the year 2015 to 2016 but increased with good margin from 2016 to 2017, In full view we can say it is on positive rising trend.

6). Yes, the company issued dividends:-
2017 = $1.56 per share
2016 = $1.42 per share
2015 = $1.81 per share

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