Walt Disney Co. on Thursday reported net income of $444.7 million for the year ended Sept. 30, 1987, up 80% from the previous year, including a $26-million gain from the sale of Arvida Corp, the Florida-based real estate development company sold in September for $400 million.
Revenue rose 33% to $2.9 billion. The company reported fourth-quarter net income of $135.3 million on revenue of $758.6 million.
Debt, taxes and Disney's original purchase cost of $214 million account for the difference between Arvida's sale price and the net gain recorded, said Neil McCarthy, Disney's vice president of planning and controls who worked on the deal.
The Disney official declined to say how much debt was associated with Arvida, but at the time of its acquisition in June, 1984, Disney assumed $190 million in Arvida debt.
McCarthy noted that Arvida generated about $130 million in earnings during its three-plus years as a Disney subsidiary.
As a result of the sale of Arvida assets to an affiliate of JMB Realty, Disney said it has discontinued its community development segment.