Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 01, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DIS | |
Entity Registrant Name | WALT DISNEY CO/ | |
Entity Central Index Key | 1,001,039 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,581,248,242 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Services Revenue | $ 12,406 | $ 12,622 |
Products Revenue | 2,378 | 2,622 |
Total revenues | 14,784 | 15,244 |
Cost of services (exclusive of depreciation and amortization) | (7,020) | (7,056) |
Cost of products (exclusive of depreciation and amortization) | (1,386) | (1,567) |
Selling, general, administrative and other | (1,985) | (2,025) |
Depreciation and amortization | (687) | (607) |
Total costs and expenses | (11,078) | (11,255) |
Restructuring and impairment charges | 0 | (81) |
Interest expense, net | (99) | (24) |
Equity in the income of investees | 118 | 474 |
Income before income taxes | 3,725 | 4,358 |
Income taxes | (1,237) | (1,448) |
Net income | 2,488 | 2,910 |
Less: Net income attributable to noncontrolling interests | (9) | (30) |
Net income attributable to The Walt Disney Company (Disney) | $ 2,479 | $ 2,880 |
Earnings per share attributable to Disney: | ||
Diluted | $ 1.55 | $ 1.73 |
Basic | $ 1.56 | $ 1.74 |
Weighted average number of common and common equivalent shares outstanding: | ||
Diluted (shares) | 1,603 | 1,668 |
Basic (shares) | 1,592 | 1,654 |
Dividends declared per share | $ 0.78 | $ 0.71 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Net income | $ 2,488 | $ 2,910 |
Other Comprehensive Income/(Loss), Net of Tax: | ||
Market value adjustments for investments | (11) | (3) |
Market value adjustments for hedges | 280 | (25) |
Pension and postretirement medical plan adjustments | 46 | 42 |
Foreign currency translation and other | (290) | (113) |
Other comprehensive income/(loss) | 25 | (99) |
Comprehensive income | 2,513 | 2,811 |
Less: Net income attributable to noncontrolling interests | (9) | (30) |
Less: Other comprehensive loss attributable to noncontrolling interests | 99 | 51 |
Comprehensive income attributable to Disney | $ 2,603 | $ 2,832 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 01, 2016 |
Current assets | ||
Cash and Cash Equivalents | $ 3,736 | $ 4,610 |
Receivables | 9,878 | 9,065 |
Inventories | 1,299 | 1,390 |
Television costs and advances | 821 | 1,208 |
Other current assets | 931 | 693 |
Total current assets | 16,665 | 16,966 |
Film and television costs | 6,572 | 6,339 |
Investments | 4,220 | 4,280 |
Attractions, buildings and equipment | 49,912 | 50,270 |
Accumulated depreciation | (26,996) | (26,849) |
Parks, resorts and other property before projects in progress and land, Total | 22,916 | 23,421 |
Projects in progress | 2,902 | 2,684 |
Land | 1,236 | 1,244 |
Parks, resorts and other property | 27,054 | 27,349 |
Intangible assets, net | 6,892 | 6,949 |
Goodwill | 27,793 | 27,810 |
Other assets | 2,380 | 2,340 |
Total assets | 91,576 | 92,033 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 9,979 | 9,130 |
Current portion of borrowings | 5,698 | 3,687 |
Unearned royalties and other advances | 3,640 | 4,025 |
Total current liabilities | 19,317 | 16,842 |
Borrowings | 14,792 | 16,483 |
Deferred income taxes | 3,888 | 3,679 |
Other long-term liabilities | 6,402 | 7,706 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $.01 par value, Authorized – 100 million shares, Issued – none | 0 | 0 |
Common stock, $.01 par value, Authorized – 4.6 billion shares, Issued – 2.9 billion shares | 35,906 | 35,859 |
Retained earnings | 67,327 | 66,088 |
Accumulated other comprehensive loss | (3,855) | (3,979) |
Stockholders' Equity subtotal before Treasury Stock, Total | 99,378 | 97,968 |
Treasury stock, at cost, 1.3 billion shares | (56,168) | (54,703) |
Total Disney Shareholders' equity | 43,210 | 43,265 |
Noncontrolling interests | 3,967 | 4,058 |
Total equity | 47,177 | 47,323 |
Total liabilities and equity | $ 91,576 | $ 92,033 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2016 | Oct. 01, 2016 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 100 | 100 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 2,900 | 2,900 |
Treasury stock, shares | 1,300 | 1,300 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 2,488 | $ 2,910 |
Depreciation and amortization | 687 | 607 |
Deferred income taxes | (76) | 551 |
Equity in the income of investees | (118) | (474) |
Cash distributions received from equity investees | 203 | 206 |
Net change in film and television costs and advances | 440 | 705 |
Equity-based compensation | 97 | 106 |
Other | 187 | 211 |
Changes in operating assets and liabilities: | ||
Receivables | (1,160) | (2,358) |
Inventories | 102 | 134 |
Other assets | 126 | 91 |
Accounts payable and other accrued liabilities | (2,763) | (891) |
Income taxes | 1,047 | 658 |
Cash provided by operations | 1,260 | 2,456 |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (1,040) | (1,406) |
Acquisitions | 0 | (400) |
Other | 5 | 8 |
Cash used in investing activities | (1,035) | (1,798) |
FINANCING ACTIVITIES | ||
Commercial paper borrowings, net | 732 | 1,907 |
Borrowings | 42 | 382 |
Reduction of borrowings | (194) | (564) |
Repurchases of common stock | (1,465) | (2,352) |
Proceeds from exercise of stock options | 65 | 52 |
Other | (167) | 13 |
Cash used in financing activities | (987) | (562) |
Impact of exchange rates on cash and cash equivalents | (112) | (64) |
Change in cash and cash equivalents | (874) | 32 |
Cash and cash equivalents, beginning of period | 4,610 | 4,269 |
Cash and cash equivalents, end of period | $ 3,736 | $ 4,301 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Disney Shareholders | Non- controlling Interests |
Beginning Balance at Oct. 03, 2015 | $ 48,655 | $ 44,525 | $ 4,130 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Comprehensive income/(loss) | 2,811 | 2,832 | (21) |
Equity compensation activity | 128 | 128 | 0 |
Dividends | (1,168) | (1,168) | 0 |
Common stock repurchases | (2,352) | (2,352) | 0 |
Distributions and other | 124 | (7) | 131 |
Ending Balance at Jan. 02, 2016 | 48,198 | 43,958 | 4,240 |
Beginning Balance at Oct. 01, 2016 | 47,323 | 43,265 | 4,058 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Comprehensive income/(loss) | 2,513 | 2,603 | (90) |
Equity compensation activity | 48 | 48 | 0 |
Dividends | (1,237) | (1,237) | 0 |
Common stock repurchases | (1,465) | (1,465) | 0 |
Distributions and other | (5) | (4) | (1) |
Ending Balance at Dec. 31, 2016 | $ 47,177 | $ 43,210 | $ 3,967 |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Dec. 31, 2016 | |
Principles of Consolidation | Principles of Consolidation These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We believe that we have included all normal recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the quarter ended December 31, 2016 are not necessarily indicative of the results that may be expected for the year ending September 30, 2017 . Certain reclassifications have been made in the prior-year financial statements to conform to the current-year presentation. These financial statements should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. The Company enters into relationships or investments with other entities that may be a variable interest entity (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE (as defined by ASC 810-10-25-38). Disneyland Paris, Hong Kong Disneyland Resort and Shanghai Disney Resort (collectively the International Theme Parks) are VIEs. Company subsidiaries (the Management Companies) have management agreements with the International Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the International Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the International Theme Parks. Therefore, the Company has consolidated the International Theme Parks in its financial statements. The terms “Company,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2016 | |
Segment Information | Segment Information The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 31, January 2, Media Networks $ 119 $ 142 Parks and Resorts (2 ) — Consumer Products & Interactive Media 1 — Equity in the income of investees included in segment operating income 118 142 Vice Gain — 332 Total equity in the income of investees $ 118 $ 474 During the quarter ended January 2, 2016 , the Company recognized its share of a net gain recorded by A+E Television Networks (A+E), a joint venture owned 50% by the Company, in connection with A+E’s acquisition of an interest in Vice Group Holding, Inc. (Vice) (Vice Gain). The Company’s $332 million share of the Vice Gain is recorded in “Equity in the income of investees” in the Condensed Consolidated Statement of Income but is not included in segment operating income. See Note 3 for further discussion of the transaction. Segment revenues and segment operating income are as follows: Quarter Ended December 31, January 2, Revenues (1) : Media Networks $ 6,233 $ 6,332 Parks and Resorts 4,555 4,281 Studio Entertainment 2,520 2,721 Consumer Products & Interactive Media 1,476 1,910 $ 14,784 $ 15,244 Segment operating income (1) : Media Networks $ 1,362 $ 1,412 Parks and Resorts 1,110 981 Studio Entertainment 842 1,014 Consumer Products & Interactive Media 642 860 $ 3,956 $ 4,267 (1) Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled $181 million and $262 million for the quarters ended December 31, 2016 and January 2, 2016 , respectively. A reconciliation of segment operating income to income before income taxes is as follows: Quarter Ended December 31, January 2, Segment operating income $ 3,956 $ 4,267 Corporate and unallocated shared expenses (132 ) (136 ) Restructuring and impairment charges — (81 ) Interest expense, net (99 ) (24 ) Vice Gain — 332 Income before income taxes $ 3,725 $ 4,358 |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2016 | |
Acquisitions | Acquisitions Vice/A+E Vice is a media company targeting a millennial audience through news and pop culture content and creative brand integration. During the first quarter of fiscal 2016, A+E acquired an 8% interest in Vice in exchange for a 49.9% interest in one of A+E’s cable channels, H2, which has been rebranded as Viceland and programmed with Vice content. As a result of this exchange, A+E recognized a net non-cash gain based on the estimated fair value of H2. The Company’s share of the Vice Gain totaled $332 million and was recorded in “Equity in the income of investees” in the Condensed Consolidated Statement of Income in the first quarter of fiscal 2016. At December 31, 2016, A+E had a 20% interest in Vice. In addition, during the first quarter of fiscal 2016, the Company acquired an 11% interest in Vice for $400 million of cash. The Company accounts for its interests in A+E and Vice as equity method investments. BAMTech In August 2016, the Company acquired a 15% interest in BAMTech, an entity which holds Major League Baseball’s streaming technology and content delivery businesses, for $450 million . In January 2017, the Company acquired an additional 18% interest for $557 million . In addition, the Company has an option to increase its ownership to 66% by acquiring additional shares at fair market value from Major League Baseball between August 2020 and August 2023. The Company accounts for its interest in BAMTech as an equity method investment. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 31, 2016 | |
Borrowings | Borrowings During the quarter ended December 31, 2016 , the Company’s borrowing activity was as follows: October 1, Borrowings Payments Other Activity December 31, Commercial paper with original maturities less than three months (1) $ 777 $ — $ (117 ) $ 1 $ 661 Commercial paper with original maturities greater than three months 744 1,594 (745 ) 2 1,595 U.S. medium-term notes 16,827 — — 5 16,832 International Theme Parks borrowings 1,087 13 — (27 ) 1,073 Foreign currency denominated debt and other (2) 735 29 (194 ) (241 ) 329 Total $ 20,170 $ 1,636 $ (1,056 ) $ (260 ) $ 20,490 (1) Borrowings and payments are reported net. (2) The other activity is primarily market value adjustments for debt with qualifying hedges. The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows: Committed Capacity Capacity Used Unused Capacity Facility expiring March 2017 $ 1,500 $ — $ 1,500 Facility expiring March 2019 2,250 — 2,250 Facility expiring March 2021 2,250 — 2,250 Total $ 6,000 $ — $ 6,000 All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.23% to 1.63%. The Company also has the ability to issue up to $800 million of letters of credit under the facility expiring in March 2019, which if utilized, reduces available borrowings under this facility. As of December 31, 2016 , the Company has $172 million of outstanding letters of credit, of which none were issued under this facility. The facilities specifically exclude certain entities, including the International Theme Parks, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on December 31, 2016 by a significant margin. Interest expense, net Interest and investment income and interest expense are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended December 31, January 2, Interest expense $ (121 ) $ (66 ) Interest and investment income 22 42 Interest expense, net $ (99 ) $ (24 ) Interest and investment income includes gains and losses on the sale of publicly and non-publicly traded investments, investment impairments and interest earned on cash and cash equivalents and certain receivables. |
International Theme Park Invest
International Theme Park Investments | 3 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
International Theme Park Investments | International Theme Park Investments The Company has an 81% effective ownership interest in the operations of Disneyland Paris, a 47% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort. The International Theme Parks are VIEs consolidated in the Company’s financial statements. See Note 1 for the Company’s policy on consolidating VIEs. The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 31, 2016 and October 1, 2016 : International Theme Parks December 31, 2016 October 1, 2016 Cash and cash equivalents $ 717 $ 1,008 Other current assets 343 331 Total current assets 1,060 1,339 Parks, resorts and other property 8,960 9,270 Other assets 89 88 Total assets $ 10,109 $ 10,697 Current liabilities $ 1,265 $ 1,499 Borrowings - long-term 1,073 1,087 Other long-term liabilities 267 256 Total liabilities $ 2,605 $ 2,842 The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 31, 2016 : December 31, 2016 Revenues $ 737 Costs and expenses (760 ) International Theme Parks royalty and management fees of $32 million recognized for the quarter ended December 31, 2016 are eliminated in consolidation but are considered in calculating earnings allocated to noncontrolling interests. For the quarter ended December 31, 2016 , International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statement of Cash Flows are $113 million generated from operating activities, $304 million used in investing activities and $13 million generated from financing activities. Disneyland Paris The Company has term loans to Disneyland Paris with outstanding balances totaling €1.0 billion at December 31, 2016 bearing interest at a 4% fixed rate and maturing in 2024. In addition, the Company has provided Disneyland Paris a €0.4 billion line of credit bearing interest at EURIBOR plus 2% and maturing in 2023. At December 31, 2016 , €155 million is outstanding under the line of credit. The amounts of the loans and line of credit are eliminated upon consolidation. The Company has waived royalties and management fees for the fourth quarter of fiscal 2016 through the third quarter of fiscal 2018. Hong Kong Disneyland Resort At December 31, 2016 , the Government of the Hong Kong Special Administrative Region (HKSAR) and the Company had 53% and 47% equity interests in Hong Kong Disneyland Resort, respectively. As part of financing the construction of a third hotel, the Company and HKSAR have provided loans with outstanding balances of $136 million and $91 million , respectively, which bear interest at a rate of three month HIBOR plus 2% and mature in September 2025. The amount of the Company’s loan is eliminated upon consolidation. Shanghai Disney Resort Shanghai Disney Resort is owned through two joint venture companies, in which Shanghai Shendi (Group) Co., Ltd (Shendi) owns 57% and the Company owns 43% . A management company, in which the Company has a 70% interest and Shendi a 30% interest, is responsible for operating Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with long-term loans totaling $762 million , bearing interest at rates up to 8% . In addition, the Company has an outstanding balance of $288 million due from Shanghai Disney Resort related to development and pre-opening costs of the resort and outstanding royalties and management fees. The Company has also provided Shanghai Disney Resort with a $157 million line of credit bearing interest at 8% . There is no outstanding balance under the line of credit at December 31, 2016 . The amounts of the loan and line of credit are eliminated upon consolidation. Shendi has provided Shanghai Disney Resort with term loans totaling 6.5 billion yuan (approximately $0.9 billion ), bearing interest at rates up to 8% and maturing in 2036; however, early repayment is permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $197 million ) line of credit bearing interest at 8% . There is no outstanding balance under the line of credit at December 31, 2016 . |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 3 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Benefit Programs | Pension and Other Benefit Programs The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 31, 2016 January 2, 2016 December 31, 2016 January 2, 2016 Service costs $ 91 $ 80 $ 3 $ 3 Interest costs 112 115 14 15 Expected return on plan assets (219 ) (188 ) (12 ) (11 ) Amortization of prior-year service costs 3 3 — — Recognized net actuarial loss 101 61 4 2 Net periodic benefit cost $ 88 $ 71 $ 9 $ 9 During the quarter ended December 31, 2016 , the Company made $1.3 billion of contributions to its pension and postretirement medical plans. The Company currently does not expect to make any additional material contributions to its pension and postretirement medical plans during the remainder of fiscal 2017 . However, final funding amounts for fiscal 2017 will be assessed based on our January 1, 2017 funding actuarial valuation, which we expect to receive during the fourth quarter of fiscal 2017 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Diluted earnings per share amounts are based upon the weighted average number of common and common equivalent shares outstanding during the period and are calculated using the treasury stock method for equity-based compensation awards (Awards). A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows: Quarter Ended December 31, January 2, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,592 1,654 Weighted average dilutive impact of Awards 11 14 Weighted average number of common and common equivalent shares outstanding (diluted) 1,603 1,668 Awards excluded from diluted earnings per share 16 4 |
Equity
Equity | 3 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | Equity The Company paid the following dividends in fiscal 2017 and 2016 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.78 $1.2 billion Second Quarter of Fiscal 2017 Second Half 2016 $0.71 $1.1 billion Fourth Quarter of Fiscal 2016 First Half 2016 $0.71 $1.2 billion Second Quarter of Fiscal 2016 Second Half 2015 During the quarter ended December 31, 2016 , the Company repurchased 15 million shares of its common stock for $1.5 billion . As of December 31, 2016 , the Company had remaining authorization in place to repurchase approximately 267 million additional shares. The repurchase program does not have an expiration date. The following table summarizes the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts, which is generally net of 37% estimated tax: Unrecognized Foreign (1) AOCI Market Value Adjustments Investments Cash Flow Hedges Balance at October 1, 2016 $ 26 $ (25 ) $ (3,651 ) $ (329 ) $ (3,979 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (11 ) 324 (22 ) (191 ) 100 Reclassifications of realized net (gains) losses to net income — (44 ) 68 — 24 Balance at December 31, 2016 $ 15 $ 255 $ (3,605 ) $ (520 ) $ (3,855 ) Balance at October 3, 2015 $ 13 $ 334 $ (2,497 ) $ (271 ) $ (2,421 ) Quarter Ended January 2, 2016: Unrealized gains (losses) arising during the period (3 ) 41 — (62 ) (24 ) Reclassifications of realized net (gains) losses to net income — (66 ) 42 — (24 ) Balance at January 2, 2016 $ 10 $ 309 $ (2,455 ) $ (333 ) $ (2,469 ) (1) Foreign Currency Translation and Other is net of an average 22% estimated tax at December 31, 2016 as the Company has not recognized deferred tax assets for some of our foreign entities. Details about AOCI components reclassified to net income are as follows: Gains/(losses) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended December 31, January 2, Cash flow hedges Primarily revenue $ 70 $ 105 Estimated tax Income taxes (26 ) (39 ) 44 66 Pension and postretirement medical expense Costs and expenses (108 ) (67 ) Estimated tax Income taxes 40 25 (68 ) (42 ) Total reclassifications for the period $ (24 ) $ 24 At December 31, 2016 and October 1, 2016 , the Company held available-for-sale investments in unrecognized gain positions totaling $29 million and $49 million , respectively, and no investments in significant unrecognized loss positions. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options, stock appreciation rights and restricted stock units (RSUs) is as follows: Quarter Ended December 31, January 2, Stock options (1) $ 20 $ 23 RSUs 77 83 Total equity-based compensation expense (2) $ 97 $ 106 Equity-based compensation expense capitalized during the period $ 21 $ 15 (1) Includes stock appreciation rights. (2) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $221 million and $770 million , respectively, as of December 31, 2016 . The weighted average grant date fair values of options granted during the quarter s ended December 31, 2016 and January 2, 2016 were $25.78 and $31.17 , respectively. During the quarter ended December 31, 2016 , the Company made equity compensation grants consisting of 4.5 million stock options and 3.6 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters Beef Products, Inc. v. American Broadcasting Companies, Inc. On September 13, 2012, plaintiffs filed an action in South Dakota state court against certain subsidiaries and employees of the Company and others, asserting claims for defamation arising from alleged false statements and implications, statutory and common law product disparagement, and tortious interference with existing and prospective business relationships. The claims arise out of ABC News reports published in March and April 2012 about a product, Lean Finely Textured Beef, that was included in ground beef and hamburger meat. Plaintiffs’ complaint sought actual and consequential damages in excess of $400 million (which in March 2016 they asserted could be as much as $1.9 billion ), statutory damages (including treble damages) pursuant to South Dakota’s Agricultural Food Products Disparagement Act, and punitive damages. Trial is set for June 2017. At this time, the Company is not able to predict the ultimate outcome of this matter, nor can it estimate the range of possible loss. The Company, together with, in some instances, certain of its directors and officers, is a defendant or codefendant in various other legal actions involving copyright, breach of contract and various other claims incident to the conduct of its businesses. Management does not believe that the Company has incurred a probable material loss by reason of any of the above actions. Contractual Guarantees The Company has guaranteed bond issuances by the Anaheim Public Authority that were used by the City of Anaheim to finance construction of infrastructure and a public parking facility adjacent to the Disneyland Resort. Revenues from sales, occupancy and property taxes from the Disneyland Resort and non-Disney hotels are used by the City of Anaheim to repay the bonds. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of December 31, 2016 , the remaining debt service obligation guaranteed by the Company was $316 million , of which $51 million was principal. To the extent that tax revenues exceed the debt service payments in subsequent periods, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. Long-Term Receivables and the Allowance for Credit Losses The Company has accounts receivable with original maturities greater than one year related to the sale of television program rights and vacation ownership units. Allowances for credit losses are established against these receivables as necessary. The Company estimates the allowance for credit losses related to receivables from the sale of television programs based upon a number of factors, including historical experience and the financial condition of individual companies with which we do business. The balance of television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $0.8 billion as of December 31, 2016 . The activity in the current period related to the allowance for credit losses was not material. The Company estimates the allowance for credit losses related to receivables from sales of its vacation ownership units based primarily on historical collection experience. Estimates of uncollectible amounts also consider the economic environment and the age of receivables. The balance of mortgage receivables recorded in other non-current assets, net of a related allowance for credit losses of approximately 4% , was approximately $0.7 billion as of December 31, 2016 . The activity in the current period related to the allowance for credit losses was not material. Income Taxes During the quarter ended December 31, 2016 , the Company decreased its gross unrecognized tax benefits by $23 million to $821 million . In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to resolutions of open tax matters. These resolutions would reduce our unrecognized tax benefits by approximately $120 million , of which $23 million would reduce our income tax expense and effective tax rate if recognized. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is classified in one of the following three categories: Level 1 - Quoted prices for identical instruments in active markets Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level: Fair Value Measurement at December 31, 2016 Level 1 Level 2 Level 3 Total Assets Investments $ 55 $ — $ — $ 55 Derivatives Interest rate — 16 — 16 Foreign exchange — 1,025 — 1,025 Other — 12 — 12 Liabilities Derivatives Interest rate — (149 ) — (149 ) Foreign exchange — (339 ) — (339 ) Other — (1 ) — (1 ) Total recorded at fair value $ 55 $ 564 $ — $ 619 Fair value of borrowings $ — $ 19,597 $ 1,389 $ 20,986 Fair Value Measurement at October 1, 2016 Level 1 Level 2 Level 3 Total Assets Investments $ 85 $ — $ — $ 85 Derivatives Interest rate — 132 — 132 Foreign exchange — 596 — 596 Other — 6 — 6 Liabilities Derivatives Interest rate — (13 ) — (13 ) Foreign exchange — (510 ) — (510 ) Other — (4 ) — (4 ) Total recorded at fair value $ 85 $ 207 $ — $ 292 Fair value of borrowings $ — $ 19,500 $ 1,579 $ 21,079 The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, did not have a material impact on derivative fair value estimates. Level 2 borrowings, which include commercial paper and U.S. medium-term notes, are valued based on quoted prices for similar instruments in active markets. Level 3 borrowings, which include International Theme Park borrowings and other foreign currency denominated borrowings, are generally valued based on historical market transactions, prevailing market interest rates and the Company’s current borrowing cost and credit risk. The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company manages its exposure to various risks relating to its ongoing business operations according to a risk management policy. The primary risks managed with derivative instruments are interest rate risk and foreign exchange risk. The Company’s derivative positions measured at fair value are summarized in the following tables: As of December 31, 2016 Current Assets Other Assets Other Accrued Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 429 $ 298 $ (106 ) $ (103 ) Interest rate — 16 (127 ) — Other 8 4 (1 ) — Derivatives not designated as hedges Foreign exchange 259 39 (129 ) (1 ) Interest rate — — — (22 ) Gross fair value of derivatives 696 357 (363 ) (126 ) Counterparty netting (306 ) (149 ) 338 117 Cash collateral (received)/paid (243 ) (63 ) 1 — Net derivative positions $ 147 $ 145 $ (24 ) $ (9 ) As of October 1, 2016 Current Assets Other Assets Other Accrued Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 278 $ 191 $ (209 ) $ (163 ) Interest rate — 132 (13 ) — Other 3 3 (4 ) — Derivatives not designated as hedges Foreign exchange 125 2 (133 ) (5 ) Gross fair value of derivatives 406 328 (359 ) (168 ) Counterparty netting (241 ) (199 ) 316 124 Cash collateral (received)/paid (77 ) (44 ) 7 — Net derivative positions $ 88 $ 85 $ (36 ) $ (44 ) Interest Rate Risk Management The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. In accordance with its policy, the Company targets its fixed-rate debt as a percentage of its net debt between a minimum and maximum percentage. The Company primarily uses pay-floating and pay-fixed interest rate swaps to facilitate its interest rate risk management activities. The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable rate borrowings indexed to LIBOR. As of December 31, 2016 and October 1, 2016 , the total notional amount of the Company’s pay-floating interest rate swaps was $8.3 billion and $8.3 billion , respectively. The following table summarizes adjustments related to fair value hedges included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income. Quarter Ended December 31, January 2, Gain (loss) on interest rate swaps $ (232 ) $ (55 ) Gain (loss) on hedged borrowings 232 55 In addition, the Company realized net benefits of $12 million and $23 million for the quarter s ended December 31, 2016 and January 2, 2016 , respectively, in “ Interest expense, net ” related to pay-floating interest rate swaps. The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in AOCI and recognized in interest expense as the interest payments occur. The Company did not have pay-fixed interest rate swaps that were designated as cash flow hedges of interest payments at December 31, 2016 or at October 1, 2016 and gains and losses related to pay-fixed swaps recognized in earnings for the quarter s ended December 31, 2016 and January 2, 2016 were not material. To facilitate its interest rate risk management activities, the Company sold an option in November 2016 to enter into a future pay-floating interest rate swap indexed to LIBOR for $0.5 billion in future borrowings. The fair value of this contract as of December 31, 2016 was not material. The option is not designated as a hedge and does not qualify for hedge accounting, accordingly any changes in value will be recorded in earnings. Foreign Exchange Risk Management The Company transacts business globally and is subject to risks associated with changing foreign currency exchange rates. The Company’s objective is to reduce earnings and cash flow fluctuations associated with foreign currency exchange rate changes, enabling management to focus on core business issues and challenges. The Company enters into option and forward contracts that change in value as foreign currency exchange rates change to protect the value of its existing foreign currency assets, liabilities, firm commitments and forecasted but not firmly committed foreign currency transactions. In accordance with policy, the Company hedges its forecasted foreign currency transactions for periods generally not to exceed four years within an established minimum and maximum range of annual exposure. The gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related forecasted transaction, asset, liability or firm commitment. The principal currencies hedged are the euro, Japanese yen, Canadian dollar and British pound. Cross-currency swaps are used to effectively convert foreign currency-denominated borrowings into U.S. dollar denominated borrowings. The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions. As of December 31, 2016 and October 1, 2016 , the notional amounts of the Company’s net foreign exchange cash flow hedges were $5.2 billion and $5.6 billion , respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Gains and losses recognized related to ineffectiveness for the quarter s ended December 31, 2016 and January 2, 2016 were not material. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months totaled $ 332 million . Foreign exchange risk management contracts with respect to foreign currency denominated assets and liabilities are not designated as hedges and do not qualify for hedge accounting. The notional amounts of these foreign exchange contracts at December 31, 2016 and October 1, 2016 were $3.5 billion and $3.3 billion , respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter s ended December 31, 2016 and January 2, 2016 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income. Costs and Expenses Interest expense, net Income Tax expense Quarter Ended: December 31, January 2, December 31, January 2, December 31, January 2, Net gains (losses) on foreign currency denominated assets and liabilities $ (233 ) $ (89 ) $ 7 $ 10 $ 23 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges 221 79 (7 ) (12 ) (31 ) — Net gains (losses) $ (12 ) $ (10 ) $ — $ (2 ) $ (8 ) $ 23 Commodity Price Risk Management The Company is subject to the volatility of commodities prices and the Company designates certain commodity forward contracts as cash flow hedges of forecasted commodity purchases. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of commodity purchases. The notional amount of these commodities contracts at December 31, 2016 and October 1, 2016 and related gains or losses recognized in earnings for the quarter s ended December 31, 2016 and January 2, 2016 were not material. Risk Management – Other Derivatives Not Designated as Hedges The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The notional amount and fair value of these contracts at December 31, 2016 and October 1, 2016 were not material. The related gains or losses recognized in earnings were not material for the quarter s ended December 31, 2016 and January 2, 2016 . Contingent Features and Cash Collateral The Company has master netting arrangements by counterparty with respect to certain derivative financial instrument contracts. The Company may be required to post collateral in the event that a net liability position with a counterparty exceeds limits defined by contract and that vary with the Company’s credit rating. In addition, these contracts may require a counterparty to post collateral to the Company in the event that a net receivable position with a counterparty exceeds limits defined by contract and that vary with the counterparty’s credit rating. If the Company’s or the counterparty’s credit ratings were to fall below investment grade, such counterparties or the Company would also have the right to terminate our derivative contracts, which could lead to a net payment to or from the Company for the aggregate net value by counterparty of our derivative contracts. The aggregate fair values of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty were $34 million and $86 million on December 31, 2016 and October 1, 2016 , respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment Charges The Company recorded $81 million of restructuring and impairment charges in the prior-year quarter for an investment impairment and contract termination and severance costs. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Restricted Cash In November 2016, the Financial Accounting Standards Board (FASB) issued guidance that requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. The guidance is required to be adopted retrospectively, and is effective beginning in the first quarter of the Company’s 2019 fiscal year (with early adoption permitted). At December 31, 2016 and October 1, 2016 , the Company held restricted cash of approximately $335 million and $150 million , respectively, primarily associated with collateral received from counterparties to its derivative contracts. The Company’s restricted cash balances are presented in the Condensed Consolidated Balance Sheets as Other current assets and Other assets based on the maturity dates of the related derivatives. Under the new guidance, changes in the Company’s restricted cash will continue to be classified as either operating activities or investing activities in the Condensed Consolidated Statements of Cash Flows, depending on the nature of the activities that gave rise to the restricted cash balance. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance that requires the income tax consequences of an intra-entity transfer of an asset other than inventory to be recognized when the transfer occurs instead of when the asset is sold to an outside party. The new guidance is effective beginning with the first quarter of the Company’s 2019 fiscal year (with early adoption permitted as of the beginning of an annual period). The guidance is required to be adopted retrospectively by recording a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. The Company is assessing the potential impact this guidance will have on its financial statements. Stock Compensation - Employee Share-based Payments In March 2016, the FASB issued guidance to amend certain aspects of accounting for employee share-based awards, including accounting for income taxes related to those transactions. This guidance will require recognizing excess tax benefits and deficiencies (that result from an increase or decrease in the value of an award from grant date to the vesting date or exercise date) on share-based compensation arrangements in the tax provision, instead of in equity as under the current guidance. In addition, these amounts will be classified as an operating activity in the statement of cash flows, instead of as a financing activity. The Company reported excess tax benefits of $0.2 billion and $0.3 billion in fiscal 2016 and 2015, respectively. In addition, cash paid for shares withheld to satisfy employee taxes will be classified as a financing activity, instead of as an operating activity. Cash paid for employee taxes was $0.2 billion and $0.3 billion in fiscal 2016 and 2015, respectively. The fiscal 2016 and 2015 amounts of excess tax benefits and cash paid for employee taxes are not necessarily indicative of future amounts that may arise in years following implementation of the new accounting pronouncement. The Company adopted the new guidance in the first quarter of fiscal 2017 as follows: • Excess tax benefits of $38 million in the current quarter were recognized as a benefit in “Income taxes” in the Condensed Consolidated Statement of Income and classified as a source in operating activities in the Condensed Consolidated Statement of Cash Flows. The guidance required prospective adoption for the statement of income and allowed for either prospective or retrospective adoption for the statement of cash flows. The Company elected to prospectively adopt the effect to the statement of cash flows and accordingly, did not restate the Condensed Consolidated Statement of Cash Flows for the quarter ended January 2, 2016 . • Cash paid for shares withheld to satisfy employee taxes of $135 million for the quarter ended December 31, 2016 was classified as a use in financing activities in the Condensed Consolidated Statement of Cash Flows. The guidance required retrospective adoption; accordingly, a $94 million use was reclassified from an operating activity to a financing activity in the Condensed Consolidated Statement of Cash Flows for the quarter ended January 2, 2016 . Leases In February 2016, the FASB issued a new lease accounting standard, which requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. As of October 1, 2016, the Company had an estimated $3.1 billion in undiscounted future minimum lease commitments. The Company is currently assessing the impact of the new guidance on its financial statements. The guidance is required to be adopted retrospectively, and is effective beginning in the first quarter of the Company’s 2020 fiscal year (with early adoption permitted). Revenue from Contracts with Customers In May 2014, the FASB issued guidance that replaces the existing accounting standards for revenue recognition with a single comprehensive five-step model, eliminating industry-specific accounting rules. The core principle is to recognize revenue upon the transfer of goods or services to customers at an amount that reflects the consideration expected to be received. Since its issuance, the FASB has amended several aspects of the new guidance, including provisions that address revenue recognition associated with the licensing of intellectual property. The new guidance, including the amendments, is effective beginning with the first quarter of the Company’s 2019 fiscal year (with early adoption permitted beginning fiscal year 2018). The guidance may be adopted either by restating all years presented in the Company’s financial statements or by recording the impact of adoption as an adjustment to retained earnings at the beginning of the year of adoption. We are continuing to assess the potential impact of this guidance, including the impact on those areas currently subject to industry-specific guidance such as licensing of intellectual property. As part of our assessment, we are reviewing representative samples of customer contracts to determine the impact on revenue recognition under the new guidance. Our method of adoption will in part be based on the degree of change identified in our assessment. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Equity In Income of Investees By Segment | Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 31, January 2, Media Networks $ 119 $ 142 Parks and Resorts (2 ) — Consumer Products & Interactive Media 1 — Equity in the income of investees included in segment operating income 118 142 Vice Gain — 332 Total equity in the income of investees $ 118 $ 474 |
Financial Information by Operating Segments | Segment revenues and segment operating income are as follows: Quarter Ended December 31, January 2, Revenues (1) : Media Networks $ 6,233 $ 6,332 Parks and Resorts 4,555 4,281 Studio Entertainment 2,520 2,721 Consumer Products & Interactive Media 1,476 1,910 $ 14,784 $ 15,244 Segment operating income (1) : Media Networks $ 1,362 $ 1,412 Parks and Resorts 1,110 981 Studio Entertainment 842 1,014 Consumer Products & Interactive Media 642 860 $ 3,956 $ 4,267 (1) Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled $181 million and $262 million for the quarters ended December 31, 2016 and January 2, 2016 , respectively. |
Reconciliation of Segment Operating Income to Income before Income Taxes | A reconciliation of segment operating income to income before income taxes is as follows: Quarter Ended December 31, January 2, Segment operating income $ 3,956 $ 4,267 Corporate and unallocated shared expenses (132 ) (136 ) Restructuring and impairment charges — (81 ) Interest expense, net (99 ) (24 ) Vice Gain — 332 Income before income taxes $ 3,725 $ 4,358 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Borrowing Activity | During the quarter ended December 31, 2016 , the Company’s borrowing activity was as follows: October 1, Borrowings Payments Other Activity December 31, Commercial paper with original maturities less than three months (1) $ 777 $ — $ (117 ) $ 1 $ 661 Commercial paper with original maturities greater than three months 744 1,594 (745 ) 2 1,595 U.S. medium-term notes 16,827 — — 5 16,832 International Theme Parks borrowings 1,087 13 — (27 ) 1,073 Foreign currency denominated debt and other (2) 735 29 (194 ) (241 ) 329 Total $ 20,170 $ 1,636 $ (1,056 ) $ (260 ) $ 20,490 (1) Borrowings and payments are reported net. (2) The other activity is primarily market value adjustments for debt with qualifying hedges. |
Line of Credit Facilities | The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows: Committed Capacity Capacity Used Unused Capacity Facility expiring March 2017 $ 1,500 $ — $ 1,500 Facility expiring March 2019 2,250 — 2,250 Facility expiring March 2021 2,250 — 2,250 Total $ 6,000 $ — $ 6,000 |
Interest Expense, net | Interest and investment income and interest expense are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended December 31, January 2, Interest expense $ (121 ) $ (66 ) Interest and investment income 22 42 Interest expense, net $ (99 ) $ (24 ) |
International Theme Park Inve24
International Theme Park Investments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Consolidating Balance Sheets | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 31, 2016 and October 1, 2016 : International Theme Parks December 31, 2016 October 1, 2016 Cash and cash equivalents $ 717 $ 1,008 Other current assets 343 331 Total current assets 1,060 1,339 Parks, resorts and other property 8,960 9,270 Other assets 89 88 Total assets $ 10,109 $ 10,697 Current liabilities $ 1,265 $ 1,499 Borrowings - long-term 1,073 1,087 Other long-term liabilities 267 256 Total liabilities $ 2,605 $ 2,842 |
Consolidating Income Statements | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 31, 2016 : December 31, 2016 Revenues $ 737 Costs and expenses (760 ) |
Pension and Other Benefit Pro25
Pension and Other Benefit Programs (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 31, 2016 January 2, 2016 December 31, 2016 January 2, 2016 Service costs $ 91 $ 80 $ 3 $ 3 Interest costs 112 115 14 15 Expected return on plan assets (219 ) (188 ) (12 ) (11 ) Amortization of prior-year service costs 3 3 — — Recognized net actuarial loss 101 61 4 2 Net periodic benefit cost $ 88 $ 71 $ 9 $ 9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Awards Excluded from Diluted Earnings Per Share Calculation | A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows: Quarter Ended December 31, January 2, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,592 1,654 Weighted average dilutive impact of Awards 11 14 Weighted average number of common and common equivalent shares outstanding (diluted) 1,603 1,668 Awards excluded from diluted earnings per share 16 4 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Dividends Declared | The Company paid the following dividends in fiscal 2017 and 2016 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.78 $1.2 billion Second Quarter of Fiscal 2017 Second Half 2016 $0.71 $1.1 billion Fourth Quarter of Fiscal 2016 First Half 2016 $0.71 $1.2 billion Second Quarter of Fiscal 2016 Second Half 2015 |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table summarizes the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts, which is generally net of 37% estimated tax: Unrecognized Foreign (1) AOCI Market Value Adjustments Investments Cash Flow Hedges Balance at October 1, 2016 $ 26 $ (25 ) $ (3,651 ) $ (329 ) $ (3,979 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (11 ) 324 (22 ) (191 ) 100 Reclassifications of realized net (gains) losses to net income — (44 ) 68 — 24 Balance at December 31, 2016 $ 15 $ 255 $ (3,605 ) $ (520 ) $ (3,855 ) Balance at October 3, 2015 $ 13 $ 334 $ (2,497 ) $ (271 ) $ (2,421 ) Quarter Ended January 2, 2016: Unrealized gains (losses) arising during the period (3 ) 41 — (62 ) (24 ) Reclassifications of realized net (gains) losses to net income — (66 ) 42 — (24 ) Balance at January 2, 2016 $ 10 $ 309 $ (2,455 ) $ (333 ) $ (2,469 ) (1) Foreign Currency Translation and Other is net of an average 22% estimated tax at December 31, 2016 as the Company has not recognized deferred tax assets for some of our foreign entities. |
Details about AOCI Components Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows: Gains/(losses) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended December 31, January 2, Cash flow hedges Primarily revenue $ 70 $ 105 Estimated tax Income taxes (26 ) (39 ) 44 66 Pension and postretirement medical expense Costs and expenses (108 ) (67 ) Estimated tax Income taxes 40 25 (68 ) (42 ) Total reclassifications for the period $ (24 ) $ 24 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (RSUs) | Compensation expense related to stock options, stock appreciation rights and restricted stock units (RSUs) is as follows: Quarter Ended December 31, January 2, Stock options (1) $ 20 $ 23 RSUs 77 83 Total equity-based compensation expense (2) $ 97 $ 106 Equity-based compensation expense capitalized during the period $ 21 $ 15 (1) Includes stock appreciation rights. (2) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level: Fair Value Measurement at December 31, 2016 Level 1 Level 2 Level 3 Total Assets Investments $ 55 $ — $ — $ 55 Derivatives Interest rate — 16 — 16 Foreign exchange — 1,025 — 1,025 Other — 12 — 12 Liabilities Derivatives Interest rate — (149 ) — (149 ) Foreign exchange — (339 ) — (339 ) Other — (1 ) — (1 ) Total recorded at fair value $ 55 $ 564 $ — $ 619 Fair value of borrowings $ — $ 19,597 $ 1,389 $ 20,986 Fair Value Measurement at October 1, 2016 Level 1 Level 2 Level 3 Total Assets Investments $ 85 $ — $ — $ 85 Derivatives Interest rate — 132 — 132 Foreign exchange — 596 — 596 Other — 6 — 6 Liabilities Derivatives Interest rate — (13 ) — (13 ) Foreign exchange — (510 ) — (510 ) Other — (4 ) — (4 ) Total recorded at fair value $ 85 $ 207 $ — $ 292 Fair value of borrowings $ — $ 19,500 $ 1,579 $ 21,079 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Fair Value of Derivative Positions | The Company’s derivative positions measured at fair value are summarized in the following tables: As of December 31, 2016 Current Assets Other Assets Other Accrued Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 429 $ 298 $ (106 ) $ (103 ) Interest rate — 16 (127 ) — Other 8 4 (1 ) — Derivatives not designated as hedges Foreign exchange 259 39 (129 ) (1 ) Interest rate — — — (22 ) Gross fair value of derivatives 696 357 (363 ) (126 ) Counterparty netting (306 ) (149 ) 338 117 Cash collateral (received)/paid (243 ) (63 ) 1 — Net derivative positions $ 147 $ 145 $ (24 ) $ (9 ) As of October 1, 2016 Current Assets Other Assets Other Accrued Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 278 $ 191 $ (209 ) $ (163 ) Interest rate — 132 (13 ) — Other 3 3 (4 ) — Derivatives not designated as hedges Foreign exchange 125 2 (133 ) (5 ) Gross fair value of derivatives 406 328 (359 ) (168 ) Counterparty netting (241 ) (199 ) 316 124 Cash collateral (received)/paid (77 ) (44 ) 7 — Net derivative positions $ 88 $ 85 $ (36 ) $ (44 ) |
Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income | The following table summarizes adjustments related to fair value hedges included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income. Quarter Ended December 31, January 2, Gain (loss) on interest rate swaps $ (232 ) $ (55 ) Gain (loss) on hedged borrowings 232 55 |
Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter s ended December 31, 2016 and January 2, 2016 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income. Costs and Expenses Interest expense, net Income Tax expense Quarter Ended: December 31, January 2, December 31, January 2, December 31, January 2, Net gains (losses) on foreign currency denominated assets and liabilities $ (233 ) $ (89 ) $ 7 $ 10 $ 23 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges 221 79 (7 ) (12 ) (31 ) — Net gains (losses) $ (12 ) $ (10 ) $ — $ (2 ) $ (8 ) $ 23 |
Equity in the Income of Investe
Equity in the Income of Investees included in Segment Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 118 | $ 474 |
Vice Media | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 0 | 332 |
Media Networks | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 119 | 142 |
Parks and Resorts | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | (2) | 0 |
Consumer Products and Interactive | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 1 | 0 |
Total Segments | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 118 | $ 142 |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | ||
Segment Reporting Information | |||
Revenues: | $ 14,784 | $ 15,244 | |
Segment operating income | 3,956 | 4,267 | |
Media Networks | |||
Segment Reporting Information | |||
Revenues: | 6,233 | 6,332 | |
Segment operating income | 1,362 | 1,412 | |
Parks and Resorts | |||
Segment Reporting Information | |||
Revenues: | 4,555 | 4,281 | |
Segment operating income | 1,110 | 981 | |
Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | [1] | 2,520 | 2,721 |
Segment operating income | [1] | 842 | 1,014 |
Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | [1] | 1,476 | 1,910 |
Segment operating income | [1] | $ 642 | $ 860 |
[1] | Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled $181 million and $262 million for the quarters ended December 31, 2016 and January 2, 2016, respectively. |
Financial Information by Oper33
Financial Information by Operating Segments- Intersegment Eliminations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | ||
Segment Reporting Information | |||
Revenues: | $ 14,784 | $ 15,244 | |
Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | [1] | 2,520 | 2,721 |
Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | [1] | 1,476 | 1,910 |
Intersegment Eliminations | Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | 181 | 262 | |
Intersegment Eliminations | Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | $ (181) | $ (262) | |
[1] | Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled $181 million and $262 million for the quarters ended December 31, 2016 and January 2, 2016, respectively. |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | ||
Segment operating income | $ 3,956 | $ 4,267 |
Corporate and unallocated shared expenses | (132) | (136) |
Restructuring and impairment charges | 0 | (81) |
Interest expense, net | (99) | (24) |
Vice Gain | 0 | 332 |
Income before income taxes | $ 3,725 | $ 4,358 |
Segment Information Segment Inf
Segment Information Segment Information - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Schedule of Equity Method Investments | ||
Vice Gain | $ 0 | $ 332 |
A And E Television Networks Llc | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Vice Media | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Ownership Percentage | 11.00% | |
Vice Gain | $ 332 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Aug. 31, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | |
Business Acquisition And Equity Method Investments | ||||
Vice Gain | $ 0 | $ 332 | ||
Vice Media | ||||
Business Acquisition And Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 11.00% | |||
Vice Gain | $ 332 | |||
Payments to Acquire Equity Method Investments | $ 400 | |||
Vice Media | Equity Interest Held By A&E | ||||
Business Acquisition And Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 20.00% | 8.00% | ||
Vice Media | Equity Interest Held By A&E | Retained Investment in Subsidiary | ||||
Business Acquisition And Equity Method Investments | ||||
Business Combination, Consideration Transferred, Other | 49.90% | |||
BAMTech, LLC | ||||
Business Acquisition And Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 15.00% | |||
Payments to Acquire Equity Method Investments | $ 450 | |||
BAMTech, LLC | Maximum | Equity Securities | ||||
Business Acquisition And Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 66.00% | |||
BAMTech, LLC | Subsequent Event | ||||
Business Acquisition And Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 18.00% | |||
Payments to Acquire Equity Method Investments | $ 557 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2016USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 20,170 | |
Borrowings | 1,636 | |
Payments | (1,056) | |
Other Activity | (260) | |
Borrowings ending balance | 20,490 | |
Commercial paper with original maturities less than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 777 | |
Borrowings | 0 | [1] |
Payments | (117) | [1] |
Other Activity | 1 | |
Borrowings ending balance | 661 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 744 | |
Borrowings | 1,594 | |
Payments | (745) | |
Other Activity | 2 | |
Borrowings ending balance | 1,595 | |
U.S. medium-term notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 16,827 | |
Borrowings | 0 | |
Payments | 0 | |
Other Activity | 5 | |
Borrowings ending balance | 16,832 | |
International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,087 | |
Borrowings | 13 | |
Payments | 0 | |
Other Activity | (27) | |
Borrowings ending balance | 1,073 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 735 | |
Borrowings | 29 | |
Payments | (194) | |
Other Activity | (241) | [2] |
Borrowings ending balance | $ 329 | |
[1] | Borrowings and payments are reported net. | |
[2] | The other activity is primarily market value adjustments for debt with qualifying hedges. |
Borrowings Line of Credit Facil
Borrowings Line of Credit Facilities (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 6,000 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Expiration Date | Mar. 31, 2017 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,500 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Expiration Date | Mar. 31, 2019 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,250 |
Existing Line Of Credit 1 | |
Line of Credit Facility | |
Line of Credit Facility, Expiration Date | Mar. 31, 2021 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,250 |
Borrowings Interest Expense, ne
Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Interest expense | $ (121) | $ (66) |
Interest and investment income | 22 | 42 |
Interest expense, net | $ (99) | $ (24) |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Line of Credit Facility | |
Line of Credit Facility, Interest Rate Description | All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.23% to 1.63%. |
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000 |
Letters of Credit Outstanding, Amount | 172 |
Letter of Credit | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 |
Minimum | |
Line of Credit Facility | |
Variable Spread Above LIBOR | 0.23% |
Maximum | |
Line of Credit Facility | |
Variable Spread Above LIBOR | 1.63% |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of International Theme Parks (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 01, 2016 | Jan. 02, 2016 | Oct. 03, 2015 |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||||
Cash and cash equivalents | $ 3,736 | $ 4,610 | $ 4,301 | $ 4,269 |
Other current assets | 931 | 693 | ||
Total current assets | 16,665 | 16,966 | ||
Parks, resorts and other property | 27,054 | 27,349 | ||
Other assets | 2,380 | 2,340 | ||
Total assets | 91,576 | 92,033 | ||
Current liabilities | 19,317 | 16,842 | ||
Borrowings - long-term | 14,792 | 16,483 | ||
International Theme Parks | ||||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||||
Cash and cash equivalents | 717 | 1,008 | ||
Other current assets | 343 | 331 | ||
Total current assets | 1,060 | 1,339 | ||
Parks, resorts and other property | 8,960 | 9,270 | ||
Other assets | 89 | 88 | ||
Total assets | 10,109 | 10,697 | ||
Current liabilities | 1,265 | 1,499 | ||
Borrowings - long-term | 1,073 | 1,087 | ||
Other long-term liabilities | 267 | 256 | ||
Total liabilities | $ 2,605 | $ 2,842 |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues: | $ 14,784 | $ 15,244 |
Cost and expenses | (11,078) | $ (11,255) |
International Theme Parks | ||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues: | 737 | |
Cost and expenses | $ (760) |
International Theme Park Inve43
International Theme Park Investments - Additional Information (Details) € in Millions, ¥ in Millions, $ in Millions | 3 Months Ended | ||||
Dec. 31, 2016CNY (¥)Property | Dec. 31, 2016EUR (€)Property | Dec. 31, 2016USD ($)Property | Jan. 02, 2016USD ($) | Dec. 31, 2016USD ($) | |
Noncontrolling Interest | |||||
Net Cash Provided by Operating Activities | $ 1,260 | $ 2,456 | |||
Net Cash Used in Investing Activities | (1,035) | (1,798) | |||
Net Cash Provided by Financing Activities | (987) | $ (562) | |||
Letters of Credit Outstanding, Amount | $ 172 | ||||
International Theme Parks | |||||
Noncontrolling Interest | |||||
Royalties And Management Fees | 32 | ||||
Net Cash Provided by Operating Activities | 113 | ||||
Net Cash Used in Investing Activities | 304 | ||||
Net Cash Provided by Financing Activities | $ 13 | ||||
Disneyland Paris | |||||
Noncontrolling Interest | |||||
Effective Ownership Interest | 81.00% | 81.00% | |||
Hong Kong Disneyland Resort | |||||
Noncontrolling Interest | |||||
Effective Ownership Interest | 47.00% | 47.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 53.00% | 53.00% | |||
Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Effective Ownership Interest | 43.00% | 43.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 57.00% | 57.00% | |||
Shanghai Disney Resort Management Company | |||||
Noncontrolling Interest | |||||
Effective Ownership Interest | 70.00% | 70.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | |||
Maximum | |||||
Noncontrolling Interest | |||||
Variable Spread Above Reference Rate | 1.63% | 1.63% | 1.63% | ||
Scenario, Plan | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest | |||||
Number Of Hotels To Be Built | Property | 3 | 3 | 3 | ||
Intercompany Line of Credit Expiring Twenty Twenty-Three | Disneyland Paris | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | € | € 400 | ||||
Letters of Credit Outstanding, Amount | € | € 155 | ||||
Unused lines of Credit | Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 157 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
EURIBOR | Intercompany Line of Credit Expiring Twenty Twenty-Three | Disneyland Paris | |||||
Noncontrolling Interest | |||||
Variable Spread Above Reference Rate | 2.00% | 2.00% | 2.00% | ||
Term Loan Expiring Twenty Twenty-Four | Disneyland Paris | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | € | € 1,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||
Loans | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 136 | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | 91 | ||||
Loans | Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | 762 | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 6,500 | $ 900 | |||
Loans | Maximum | Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
Loans | HIBOR | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest | |||||
Variable Spread Above Reference Rate | 2.00% | 2.00% | 2.00% | ||
Development and pre-opening cost loan and outstanding roylties and management fees | Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 288 | ||||
Line of Credit | Shanghai Disney Resort | |||||
Noncontrolling Interest | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 1,400 | $ 197 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | $ 91 | $ 80 |
Interest costs | 112 | 115 |
Expected return on plan assets | (219) | (188) |
Amortization of prior-year service costs | 3 | 3 |
Recognized net actuarial loss | 101 | 61 |
Net periodic benefit cost | 88 | 71 |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 3 | 3 |
Interest costs | 14 | 15 |
Expected return on plan assets | (12) | (11) |
Amortization of prior-year service costs | 0 | 0 |
Recognized net actuarial loss | 4 | 2 |
Net periodic benefit cost | $ 9 | $ 9 |
Pension and Other Benefit Pro45
Pension and Other Benefit Programs - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Contributions by Employer | $ 1,300 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Awards Excluded from Diluted Earnings Per Share Calculation (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Shares (in millions): | ||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,592 | 1,654 |
Weighted average dilutive impact of Awards | 11 | 14 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,603 | 1,668 |
Awards excluded from diluted earnings per share | 16 | 4 |
Equity Dividends Paid (Details)
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | ||
Dec. 31, 2016 | Apr. 02, 2016 | Oct. 03, 2015 | |
Dividends, Common Stock [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.78 | $ 0.71 | $ 0.71 |
Dividends, Common Stock, Cash | $ 1.2 | $ 1.1 | $ 1.2 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI, Beginning Balance | $ (3,979) | $ (2,421) | |
Unrealized gains (losses) arising during the period | 100 | (24) | |
Reclassifications of realized net (gains) losses to net income | 24 | (24) | |
AOCI, Ending Balance | (3,855) | (2,469) | |
Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI, Beginning Balance | 26 | 13 | |
Unrealized gains (losses) arising during the period | (11) | (3) | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | |
AOCI, Ending Balance | 15 | 10 | |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI, Beginning Balance | (25) | 334 | |
Unrealized gains (losses) arising during the period | 324 | 41 | |
Reclassifications of realized net (gains) losses to net income | (44) | (66) | |
AOCI, Ending Balance | 255 | 309 | |
Unrecognized Pension and Postretirement Medical Expense | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI, Beginning Balance | (3,651) | (2,497) | |
Unrealized gains (losses) arising during the period | (22) | 0 | |
Reclassifications of realized net (gains) losses to net income | 68 | 42 | |
AOCI, Ending Balance | (3,605) | (2,455) | |
Foreign Currency Translation and Other(1) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI, Beginning Balance | [1] | (329) | (271) |
Unrealized gains (losses) arising during the period | [1] | (191) | (62) |
Reclassifications of realized net (gains) losses to net income | [1] | 0 | 0 |
AOCI, Ending Balance | [1] | $ (520) | $ (333) |
[1] | Foreign Currency Translation and Other is net of an average 22% estimated tax at December 31, 2016 as the Company has not recognized deferred tax assets for some of our foreign entities. |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Net of Tax - Tax Rate (Details) | 3 Months Ended |
Dec. 31, 2016 | |
Tax rate on Components of AOCI, excluding Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Tax Rate on AOCI Balances | 37.00% |
Tax Rate on Components of AOCI, Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Tax Rate on AOCI Balances | 22.00% |
Details about AOCI Components R
Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Details about AOCI Components Reclassified to Net Income | ||
Primarily revenue | $ 14,784 | $ 15,244 |
Income taxes | (1,237) | (1,448) |
Net income attributable to The Walt Disney Company (Disney) | 2,479 | 2,880 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Net income attributable to The Walt Disney Company (Disney) | (24) | 24 |
Gain/(loss) in net income from Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Primarily revenue | 70 | 105 |
Income taxes | (26) | (39) |
Net income attributable to The Walt Disney Company (Disney) | 44 | 66 |
Gain/(loss) in net income from Pension and postretirement medical expense | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Primarily included in the computation of net periodic benefit cost | (108) | (67) |
Income taxes | 40 | 25 |
Net income attributable to The Walt Disney Company (Disney) | $ (68) | $ (42) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Oct. 01, 2016 | |
Equity [Abstract] | |||
Common stock repurchases, shares | 15 | ||
Common stock repurchases | $ 1,465 | $ 2,352 | |
Remaining shares authorized for repurchase | 267 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | $ 29 | $ 49 |
Compensation Expense Related to
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options/rights | [1] | $ 20 | $ 23 |
RSUs | 77 | 83 | |
Total equity-based compensation expense | [2] | 97 | 106 |
Equity-based compensation expense capitalized during the period | $ 21 | $ 15 | |
[1] | Includes stock appreciation rights. | ||
[2] | Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair values of options issued | $ 25.78 | $ 31.17 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 221 | |
Stock compensation granted, number of shares | 4.5 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 770 | |
Stock compensation granted, number of shares | 3.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Sep. 13, 2012 | Mar. 31, 2016 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 23 | ||
Unrecognized Tax Benefits | 821 | ||
Unrecognized tax benefits expected reduction due to resolutions of open tax matters | 120 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 23 | ||
Syndicated programming | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Long-term receivables, net of allowance for credit losses | 800 | ||
Mortgage Receivable | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Long-term receivables, net of allowance for credit losses | $ 700 | ||
Allowance for credit losses related to long-term receivables, percentage | 4.00% | ||
Guarantee Obligations | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 316 | ||
Remaining debt service obligation guaranteed, principal | $ 51 | ||
Beef Products | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 400 | ||
Beef Products | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 1,900 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 01, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 55 | $ 85 |
Total | 619 | 292 |
Fair value of borrowings | 20,986 | 21,079 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 16 | 132 |
Derivative Liabilities | (149) | (13) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1,025 | 596 |
Derivative Liabilities | (339) | (510) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 12 | 6 |
Derivative Liabilities | (1) | (4) |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 55 | 85 |
Total | 55 | 85 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 564 | 207 |
Fair value of borrowings | 19,597 | 19,500 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 16 | 132 |
Derivative Liabilities | (149) | (13) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1,025 | 596 |
Derivative Liabilities | (339) | (510) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 12 | 6 |
Derivative Liabilities | (1) | (4) |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 1,389 | 1,579 |
Level 3 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
Gross Fair Value of Derivative
Gross Fair Value of Derivative Positions (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 01, 2016 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 696 | $ 406 |
Derivative Asset, Counterparty Netting Offset | (306) | (241) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (243) | (77) |
Net derivative positions | 147 | 88 |
Current Assets | Derivatives designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 429 | 278 |
Current Assets | Derivatives designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Current Assets | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 8 | 3 |
Current Assets | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 259 | 125 |
Current Assets | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 357 | 328 |
Derivative Asset, Counterparty Netting Offset | (149) | (199) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (63) | (44) |
Net derivative positions | 145 | 85 |
Other Assets | Derivatives designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 298 | 191 |
Other Assets | Derivatives designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 16 | 132 |
Other Assets | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 4 | 3 |
Other Assets | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 39 | 2 |
Other Assets | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (363) | (359) |
Derivative Liability, Counterparty netting offset | 338 | 316 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (1) | (7) |
Net derivative positions | (24) | (36) |
Other Accrued Liabilities | Derivatives designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (106) | (209) |
Other Accrued Liabilities | Derivatives designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (127) | (13) |
Other Accrued Liabilities | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (1) | (4) |
Other Accrued Liabilities | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (129) | (133) |
Other Accrued Liabilities | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (126) | (168) |
Derivative Liability, Counterparty netting offset | 117 | 124 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Net derivative positions | (9) | (44) |
Other Long-Term Liabilities | Derivatives designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (103) | (163) |
Other Long-Term Liabilities | Derivatives designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Long-Term Liabilities | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Long-Term Liabilities | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (1) | $ (5) |
Other Long-Term Liabilities | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ (22) |
Adjustments Related to Fair Val
Adjustments Related to Fair Value Hedges Included in Net Interest Expense in Consolidated Statements of Income (Details) - Interest rate - Interest Expense - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on interest rate swaps | $ (232) | $ (55) |
Gain (loss) on hedged borrowings | $ 232 | $ 55 |
Net Gains or Losses Recognized
Net Gains or Losses Recognized on Economic Exposures Associated With Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Costs and Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | $ (233) | $ (89) |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | 221 | 79 |
Net gains (losses) | (12) | (10) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | 7 | 10 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (7) | (12) |
Net gains (losses) | 0 | (2) |
Income Taxes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | 23 | 23 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (31) | 0 |
Net gains (losses) | $ (8) | $ 23 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Oct. 01, 2016 | |
Derivative [Line Items] | |||
Hedging Period for Foreign Currency Transactions, Maximum | 4 years | ||
Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months | $ 332 | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | 34 | $ 86 | |
Interest rate | Interest Expense | |||
Derivative [Line Items] | |||
Realized net benefits from derivative instruments | 12 | $ 23 | |
Derivatives designated as hedges | Interest rate | Fair Value Hedging | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 8,300 | 8,300 | |
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 5,200 | 5,600 | |
Not Designated as Hedging Instrument | Interest rate | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 500 | ||
Not Designated as Hedging Instrument | Foreign exchange | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 3,500 | $ 3,300 |
Restructuring and Impairment 60
Restructuring and Impairment Charges - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and impairment charges | $ 0 | $ 81 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Oct. 01, 2016 | Oct. 03, 2015 | |
Emerging Issues Task Force 16-A [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 335 | $ 150 | ||
Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess Tax Benefit from Share-based Compensation | 38 | 200 | $ 300 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 135 | $ 94 | 200 | $ 300 |
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | $ 3,100 |