DISWalt Disney

Cash provided by operating activities operations increased 42% 30% or $4.1 billion to $14.0 $18.1 billion in the current year compared to $9.9 $14.0 billion in the prior year. The increase was driven by lower film and television production spending and the timing of payments for sports rights. The increase also reflected collateral receipts related to our hedging program in the current year compared to collateral payments in the prior year, higher operating cash flows at Entertainment and the comparison to a payment in the prior year related to the termination of content licenses in fiscal 2022. The increase in operating cash flows at Entertainment was driven by lower cash disbursements due to a decrease in operating expenses. These increases were partially offset by higher cash lower tax payments in the current year compared to the prior year. Fiscal year and higher operating cash flows at Entertainment and, to a lesser extent, Experiences. Tax payments in the prior year reflected the payment of fiscal 2023 U.S. federal and California state tax payments were income taxes that had been deferred and paid in fiscal 2024 pursuant to relief provided by the Internal Revenue Service and California State Board of Equalization as a result of related to 2023 winter storms in California. In addition, a portion of payments for fiscal 2024 2025 U.S. federal and Florida California state taxes was paid in fiscal 2024 and the remainder has been income tax liabilities were deferred to fiscal until October 2025 pursuant to relief provided related to the 2025 wildfires in California. The increase in operating cash flows at Entertainment was primarily due to higher cash receipts, primarily attributable to higher revenue, and to a lesser extent, lower spending on content due to the impact of the Star India Transaction, partially offset by the Internal Revenue Service and Florida Department of Revenue as a result of 2024 hurricanes higher operating cash disbursements attributable to higher operating expenses. The increase in Florida. operating cash flows at Experiences was due to higher cash receipts attributable to higher revenue, partially offset by higher operating cash disbursements primarily due to higher operating expenses.

New laws Laws and regulations, as well as changes regulations in any of these current laws and regulations other areas and changes in judicial and agency interpretation or regulator activities regulatory priorities, actions or initiatives (or, if applicable, private litigation to enforce such laws and regulations) in any of these areas, or others, may regulations), as well as an increasingly unpredictable regulatory landscape, require us to incur additional compliance costs, costs and may restrict limit our ability to execute on implement our business strategies as planned or offer products and services in ways that are profitable, and create an increasingly unpredictable regulatory landscape. or at all. In addition, ongoing and future developments in international political, trade and security policy may lead to new regulations limiting that increase the cost of providing our products and services, negatively impact demand for our products and services and limit international trade and investment and disrupting our operations outside the U.S., including our international theme parks and resorts operations in France, mainland China and Hong Kong. For example, in 2022 the U.S. and other countries implemented a series of sanctions against Russia in response to events in Russia and Ukraine; U.S. agencies have enhanced trade restrictions, including new prohibitions on the importation of goods from certain regions and other jurisdictions are considering similar measures; and U.S. state governments have become more active in passing legislation targeted at specific sectors and companies and applying existing laws in novel ways to new technologies, including streaming and online commerce. Further the legal and regulatory landscape for certain new technologies, such as AI, is uncertain and evolving and our compliance obligations could increase our costs or limit how we may use these technologies in one or more of our businesses. investment,