2003-Annual-Report.Pdf
The Company 2003 ANNUAL REPORT CELEBRATING 75 YEARS OF MICKEY FINANCIAL HIGHLIGHTS 1 LETTER TO SHAREHOLDERS 2 FINANCIAL REVIEW 10 COMPANY OVERVIEW 14 STUDIO ENTERTAINMENT 16 PARKS AND RESORTS 24 CONSUMER PRODUCTS 32 MEDIA NETWORKS 36 WALT DISNEY INTERNATIONAL 50 DISNEYHAND 51 ENVIRONMENTALITY 52 FINANCIAL SECTION 53 REPORT OF INDEPENDENT AUDITORS 95 FINANCIAL HIGHLIGHTS (In millions, except per share data) 2003 2002 Revenues $27,061 $25,329 Segment operating income 3,174 2,822 Diluted earnings per share before the cumulative effect of accounting changes 0.65 0.60 Cash flow provided by operations 2,901 2,286 Borrowings Total 13,100 14,130 Net(1) 11,517 12,891 Shareholders’ equity 23,791 23,445 (1) Net borrowings represent total borrowings of $13,100 million less cash and cash equivalents of $1,583 million. 1#1 LETTER TO SHAREHOLDERS To Fellow Owners and Cast Members: I’ve always believed that good news shouldn’t wait, so this year I thought I’d start right off with a review of the numbers. In 2003, we experienced solid earnings growth despite the difficult economic and geopolitical environment that prevailed during most of the year. Most significantly, our fourth quarter was very strong, with more than double the earnings of Q4 in 2002, underscoring our confidence in generating growth in the new year. Equally important, we delivered free cash flow for the year that was up more than 50 percent over last year and continued to bolster our balance sheet. During fiscal 2003, our stock price appreciated 36 percent, compared to the S&P 500’s growth of 25 percent.
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