Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38842 | |
Entity Registrant Name | WALT DISNEY CO/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-0940635 | |
Entity Address, Address Line One | 500 South Buena Vista Street | |
Entity Address, City or Town | Burbank | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91521 | |
City Area Code | 818 | |
Local Phone Number | 560-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DIS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,826,807,227 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001744489 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Revenues | $ 23,512 | $ 21,819 | |
Selling, general, administrative and other | (3,827) | (3,787) | |
Depreciation and amortization | (1,306) | (1,269) | |
Total costs and expenses | (21,519) | (19,623) | |
Restructuring and impairment charges | (69) | 0 | |
Other expense, net | [1] | (42) | (436) |
Interest expense, net | (300) | (311) | |
Equity in the income of investees | 191 | 239 | |
Income from continuing operations before income taxes | 1,773 | 1,688 | |
Income taxes on continuing operations | (412) | (488) | |
Net Income from Continuing Operations | 1,361 | 1,200 | |
Loss from discontinued operations, net of income tax benefit of $0 and $14, respectively | 0 | (48) | |
Net Income | 1,361 | 1,152 | |
Net Income from Continuing Operations Attributable to Noncontrolling Interests | (82) | (48) | |
Net income attributable to Disney | $ 1,279 | $ 1,104 | |
Earnings per share attributable to Disney: | |||
Continuing Operations, Per Diluted Share | $ 0.70 | $ 0.63 | |
Discontinued Operations, Per Diluted Share | 0 | (0.03) | |
Diluted | [2] | 0.70 | 0.60 |
Continuing Operations, Per Basic Share | 0.70 | 0.63 | |
Discontinued Operation, Per Basic Share | 0 | (0.03) | |
Basic | [2] | $ 0.70 | $ 0.61 |
Weighted average number of common and common equivalent shares outstanding: | |||
Diluted (shares) | 1,827 | 1,828 | |
Basic (shares) | 1,825 | 1,819 | |
Service | |||
Revenues | $ 20,997 | $ 19,542 | |
Cost of Goods and Services Sold | (14,781) | (13,161) | |
Product | |||
Revenues | 2,515 | 2,277 | |
Cost of Goods and Services Sold | $ (1,605) | $ (1,406) | |
[1]See Note 4 for a discussion of amounts in other expense, net.[2]Total may not equal the sum of the column due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0 | $ (14) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Net income | $ 1,361 | $ 1,152 |
Other Comprehensive Income/(Loss), Net of Tax: | ||
Market value adjustments for hedges | (542) | 50 |
Pension and postretirement medical plan adjustments | 1 | 155 |
Foreign currency translation and other | 227 | (22) |
Other comprehensive income (loss) | (314) | 183 |
Comprehensive income | 1,047 | 1,335 |
Net income from continuing operations attributable to noncontrolling interests | (82) | (48) |
Other comprehensive loss attributable to noncontrolling interests | (45) | (19) |
Comprehensive income attributable to Disney | $ 920 | $ 1,268 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Current assets | ||
Cash and Cash Equivalents | $ 8,470 | $ 11,615 |
Receivables, net | 13,993 | 12,652 |
Inventories | 1,830 | 1,742 |
Content advances | 1,300 | 1,890 |
Other current assets | 1,319 | 1,199 |
Total current assets | 26,912 | 29,098 |
Produced and licensed content costs | 36,266 | 35,777 |
Investments | 3,169 | 3,218 |
Attractions, buildings and equipment | 68,253 | 66,998 |
Accumulated depreciation | (40,641) | (39,356) |
Parks, resorts and other property before projects in progress and land, Total | 27,612 | 27,642 |
Projects in progress | 5,430 | 4,814 |
Land | 1,158 | 1,140 |
Parks, resorts and other property | 34,200 | 33,596 |
Intangible assets, net | 14,347 | 14,837 |
Goodwill | 77,867 | 77,897 |
Other assets | 9,363 | 9,208 |
Total assets | 202,124 | 203,631 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 18,149 | 20,213 |
Current portion of borrowings | 3,249 | 3,070 |
Deferred revenue and other | 5,672 | 5,790 |
Total current liabilities | 27,070 | 29,073 |
Borrowings | 45,128 | 45,299 |
Deferred income taxes | 8,236 | 8,363 |
Other long-term liabilities | 12,812 | 12,518 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests | 8,743 | 9,499 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares | 56,579 | 56,398 |
Retained earnings | 44,955 | 43,636 |
Accumulated other comprehensive loss | (4,478) | (4,119) |
Treasury stock, at cost, 19 million shares | (907) | (907) |
Total Disney Shareholders' equity | 96,149 | 95,008 |
Noncontrolling interests | 3,986 | 3,871 |
Total equity | 100,135 | 98,879 |
Total liabilities and equity | $ 202,124 | $ 203,631 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 1,800 | 1,800 |
Treasury stock, shares | 19 | 19 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Net Income from Continuing Operations | $ 1,361 | $ 1,200 |
OPERATING ACTIVITIES | ||
Depreciation and amortization | 1,306 | 1,269 |
Net (gain) loss on investments | 68 | 436 |
Deferred income taxes | (15) | 726 |
Equity in the income of investees | (191) | (239) |
Cash distributions received from equity investees | 176 | 223 |
Net change in produced and licensed content costs and advances | 558 | 507 |
Equity-based compensation | 270 | 196 |
Pension and postretirement medical benefit cost amortization | 1 | 155 |
Other, net | (232) | (7) |
Changes in operating assets and liabilities: | ||
Receivables | (1,423) | (1,401) |
Inventories | (88) | (14) |
Other assets | (443) | (115) |
Accounts payable and other liabilities | (2,378) | (2,579) |
Income taxes | 56 | (566) |
Cash used in operations - continuing operations | (974) | (209) |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (1,181) | (981) |
Other, net | (111) | (6) |
Cash used in investing activities - continuing operations | (1,292) | (987) |
FINANCING ACTIVITIES | ||
Commercial paper borrowings (payments), net | 799 | (124) |
Borrowings | 67 | 33 |
Reduction of borrowings | (1,000) | 0 |
Sale of noncontrolling interest | 178 | 0 |
Acquisition of redeemable noncontrolling interest | (900) | 0 |
Other, net | (187) | (189) |
Cash used in financing activities - continuing operations | (1,043) | (280) |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ||
Cash provided by operations - discontinued operations | 0 | 8 |
Cash used in financing activities - discontinued operations | 0 | (12) |
Cash used in discontinued operations | 0 | (4) |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 164 | (35) |
Change in Cash, Cash Equivalents and Restricted Cash | (3,145) | (1,515) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 11,661 | 16,003 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 8,516 | $ 14,488 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | AOCI Attributable to Parent | Treasury Stock | Disney Shareholders | Non-controlling Interests | [1] | Total excluding redeemable noncontrolling interest |
BEGINNING BALANCE (in shares) at Oct. 02, 2021 | 1,818 | ||||||||
Beginning Balance at Oct. 02, 2021 | $ 55,471 | $ 40,429 | $ (6,440) | $ (907) | $ 88,553 | $ 4,458 | $ 93,011 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income (loss) | $ 1,335 | 1,104 | 164 | 1,268 | (4) | 1,264 | |||
Equity compensation activity (in shares) | 3 | ||||||||
Equity compensation activity | $ 29 | 29 | 29 | ||||||
Contributions | 0 | 29 | 29 | ||||||
Distributions and other | $ 0 | 14 | 14 | (37) | (23) | ||||
ENDING BALANCE (in shares) at Jan. 01, 2022 | 1,821 | ||||||||
Ending Balance at Jan. 01, 2022 | $ 55,500 | 41,547 | (6,276) | (907) | 89,864 | 4,446 | 94,310 | ||
BEGINNING BALANCE (in shares) at Oct. 01, 2022 | 1,824 | ||||||||
Beginning Balance at Oct. 01, 2022 | 98,879 | $ 56,398 | 43,636 | (4,119) | (907) | 95,008 | 3,871 | 98,879 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income (loss) | 1,047 | 1,279 | (359) | 920 | (16) | 904 | |||
Equity compensation activity (in shares) | 2 | ||||||||
Equity compensation activity | $ 180 | 180 | 180 | ||||||
Contributions | 178 | 178 | 178 | ||||||
Distributions and other | $ 1 | 40 | 41 | (47) | (6) | ||||
ENDING BALANCE (in shares) at Dec. 31, 2022 | 1,826 | ||||||||
Ending Balance at Dec. 31, 2022 | $ 100,135 | $ 56,579 | $ 44,955 | $ (4,478) | $ (907) | $ 96,149 | $ 3,986 | $ 100,135 | |
[1]Excludes redeemable noncontrolling interests. |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Dec. 31, 2022 | |
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 statement of the results for the interim period. Operating results for the quarter ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023. The terms “Company,” “Disney,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company, The Walt Disney Company, as well as the subsidiaries through which its various businesses are actually conducted. These financial statements should be read in conjunction with the Company’s 2022 Annual Report on Form 10-K. Variable Interest Entities The Company enters into relationships with or makes investments in other entities that may be variable interest entities (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 (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia 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 Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. Redeemable Noncontrolling Interests The Company consolidates the results of Hulu LLC (Hulu), a direct-to-consumer (DTC) streaming service provider, which is owned 67% by the Company and 33% by NBC Universal (NBCU). In May 2019, the Company entered into a put/call agreement with NBCU that provided the Company with full operational control of Hulu. Under the agreement, beginning in January 2024, NBCU has the option to require the Company to purchase NBCU’s interest in Hulu and the Company has the option to require NBCU to sell its interest in Hulu to the Company, in either case at a redemption value based on NBCU’s equity ownership percentage of the greater of Hulu’s then equity fair value or a guaranteed floor value of $27.5 billion. NBCU’s interest will generally not be allocated its portion of Hulu’s losses, if any, as the redeemable noncontrolling interest is required to be carried at a minimum value. The minimum value is equal to the fair value as of the May 2019 agreement date accreted to the January 2024 estimated redemption value. At December 31, 2022, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $8.7 billion, which is reported as “Redeemable noncontrolling interest” in the Condensed Consolidated Balance Sheets. We are accreting NBCU’s interest in Hulu to its guaranteed floor value. In determining the redemption value, our estimate of Hulu’s equity fair value in January 2024 requires management to make significant judgments. If our estimate of the future fair value of Hulu’s equity increased above the guaranteed floor value, we would change our rate of accretion, which would generally increase the amount recorded in “Net income from continuing operations attributable to noncontrolling interests” and thus reduce “Net income attributable to Disney” in the Condensed Consolidated Statements of Income. At October 1, 2022, Major League Baseball (MLB) held a 15% redeemable noncontrolling interest in BAMTech LLC (BAMTech), which was recorded in the Company’s financial statements at $828 million. In November 2022, the Company purchased MLB’s redeemable noncontrolling interest for $900 million, resulting in $72 million recorded as an increase in “Net income from continuing operations attributable to noncontrolling interests” in the Condensed Consolidated Statements of Income. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates. Reclassifications Certain reclassifications have been made in the fiscal 2022 financial statements and notes to conform to the fiscal 2023 presentation. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2022 | |
Segment Information | Segment Information The Company’s operations are conducted in the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) segments. Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer to allocate resources and assess performance. Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and acquisition accounting amortization of TFCF Corporation (TFCF) and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition in fiscal 2019 (TFCF and Hulu acquisition amortization). Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption. Segment revenues and segment operating income (loss) are as follows: Quarter Ended December 31, January 1, Revenues: Disney Media and Entertainment Distribution $ 14,776 $ 14,585 Disney Parks, Experiences and Products 8,736 7,234 Total segment revenues $ 23,512 $ 21,819 Segment operating income (loss): Disney Media and Entertainment Distribution $ (10) $ 808 Disney Parks, Experiences and Products 3,053 2,450 Total segment operating income (1) $ 3,043 $ 3,258 (1) Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 31, January 1, Disney Media and Entertainment Distribution $ 196 $ 245 Disney Parks, Experiences and Products (2) (3) Equity in the income of investees included in segment operating income 194 242 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 191 $ 239 A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended December 31, January 1, Segment operating income $ 3,043 $ 3,258 Corporate and unallocated shared expenses (280) (228) Restructuring and impairment charges (69) — Other expense, net (1) (42) (436) Interest expense, net (300) (311) TFCF and Hulu acquisition amortization (2) (579) (595) Income from continuing operations before income taxes $ 1,773 $ 1,688 (1) See Note 4 for a discussion of amounts in other expense, net. (2) For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively. Goodwill The changes in the carrying amount of goodwill are as follows: DMED DPEP Total Balance at October 1, 2022 $ 72,347 $ 5,550 $ 77,897 Currency translation adjustments and other, net (30) — (30) Balance at December 31, 2022 $ 72,317 $ 5,550 $ 77,867 |
Revenues
Revenues | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues The following table presents our revenues by segment and major source: Quarter Ended December 31, 2022 Quarter Ended January 1, 2022 DMED DPEP Total DMED DPEP Total Affiliate fees $ 4,242 $ — $ 4,242 $ 4,371 $ — $ 4,371 Subscription fees 4,240 — 4,240 3,598 — 3,598 Advertising 3,442 1 3,443 3,868 1 3,869 Theme park admissions — 2,641 2,641 — 2,152 2,152 Resort and vacations — 1,980 1,980 — 1,445 1,445 Retail and wholesale sales of merchandise, food and beverage — 2,382 2,382 — 2,089 2,089 Merchandise licensing — 1,143 1,143 — 1,119 1,119 TV/SVOD distribution licensing 979 — 979 1,396 — 1,396 Theatrical distribution licensing 1,140 — 1,140 529 — 529 Home entertainment 135 — 135 294 — 294 Other 598 589 1,187 529 428 957 $ 14,776 $ 8,736 $ 23,512 $ 14,585 $ 7,234 $ 21,819 The following table presents our revenues by segment and primary geographical markets: Quarter Ended December 31, 2022 Quarter Ended January 1, 2022 DMED DPEP Total DMED DPEP Total Americas $ 12,018 $ 6,953 $ 18,971 $ 11,830 $ 5,711 $ 17,541 Europe 1,574 1,066 2,640 1,538 865 2,403 Asia Pacific 1,184 717 1,901 1,217 658 1,875 Total revenues $ 14,776 $ 8,736 $ 23,512 $ 14,585 $ 7,234 $ 21,819 Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on TV/SVOD licenses for titles made available to the licensee in previous reporting periods. For the quarter ended December 31, 2022, $0.3 billion was recognized related to performance obligations satisfied as of October 1, 2022. For the quarter ended January 1, 2022, $0.4 billion was recognized related to performance obligations satisfied as of October 2, 2021. As of December 31, 2022, revenue for unsatisfied performance obligations expected to be recognized in the future is $15 billion, primarily for content and other IP to be made available in the future under existing agreements with merchandise and co-branding licensees and sponsors, television station affiliates, sports sublicensees, advertisers, and DTC wholesalers. Of this amount, we expect to recognize approximately $4 billion in the remainder of fiscal 2023, $4 billion in fiscal 2024, $3 billion in fiscal 2025 and $4 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee. When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears is recognized as accounts receivable. Deferred revenues are recognized as (or when) the Company performs under the contract. The Company’s contract assets and activity for the current and prior-year periods were not material. Accounts receivable and deferred revenues from contracts with customers are as follows: December 31, October 1, Accounts receivable Current $ 12,222 $ 10,886 Non-current 1,193 1,226 Allowance for credit losses (166) (179) Deferred revenues Current 5,392 5,531 Non-current 908 927 For the quarter ended December 31, 2022, the Company recognized revenue of $3.4 billion that was included in the October 1, 2022 deferred revenue balance. For the quarter ended January 1, 2022, the Company recognized revenue of $1.9 billion that was included in the October 2, 2021 deferred revenue balance. Amounts deferred generally relate to theme park admissions and vacation packages, DTC subscriptions and advances related to merchandise and TV/SVOD licenses. We evaluate our allowance for credit losses and estimate collectability of current and non-current accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods. The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights (TV/SVOD licensing) and vacation club properties. These receivables are discounted to present value at contract inception and the related revenues are recognized at the discounted amount. The balance of TV/SVOD licensing receivables recorded in other non-current assets was $0.6 billion at both December 31, 2022 and October 1, 2022. The balance of vacation club receivables recorded in other non-current assets was $0.6 billion at both December 31, 2022 and October 1, 2022. The allowance for credit losses and activity for the period ended December 31, 2022 was not material. |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Expense, net Other expense, net is as follows: Quarter Ended December 31, January 1, DraftKings loss $ (70) $ (432) Other, net 28 (4) Other expense, net $ (42) $ (436) In the current quarter, the Company recognized a $70 million non-cash loss to adjust its investment in DraftKings, Inc. (DraftKings) to fair value (DraftKings loss). In the prior-year quarter, the Company recorded a $432 million DraftKings loss. |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Borrowings | 3 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings | Cash, Cash Equivalents, Restricted Cash and Borrowings Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. December 31, October 1, Cash and cash equivalents $ 8,470 $ 11,615 Restricted cash included in: Other current assets 3 3 Other assets 43 43 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 8,516 $ 11,661 Borrowings During the quarter ended December 31, 2022, the Company’s borrowing activity was as follows: October 1, Borrowings Payments Other December 31, Commercial paper with original maturities less than three months $ 50 $ 362 $ — $ 1 $ 413 Commercial paper with original maturities greater than three months 1,612 1,151 (714) 10 2,059 U.S. dollar denominated notes 45,091 — (1,000) (33) 44,058 Asia Theme Parks borrowings 1,425 66 — 58 1,549 Foreign currency denominated debt and other (1) 191 1 — 106 298 $ 48,369 $ 1,580 $ (1,714) $ 142 $ 48,377 (1) The other activity is primarily due to market value adjustments for debt with qualifying hedges. At December 31, 2022, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows: Committed Capacity Unused Facility expiring March 2023 $ 5,250 $ — $ 5,250 Facility expiring March 2025 3,000 — 3,000 Facility expiring March 2027 4,000 — 4,000 Total $ 12,250 $ — $ 12,250 These facilities allow for borrowings at SOFR-based rates plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s ranging from 0.755% to 1.225%. The bank facilities contain only one financial covenant, relating to interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On December 31, 2022, the Company met this covenant by a significant margin. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2027, which if utilized, reduces available borrowings under this facility. As of December 31, 2022, the Company has $2.0 billion of outstanding letters of credit, of which none were issued under this facility. Cruise Ship Credit Facilities The Company has credit facilities to finance a significant portion of the contract price of two new cruise ships, which are scheduled to be delivered in fiscal 2025 and fiscal 2026. Under the facilities, $1.1 billion is available beginning in August 2023 and $1.1 billion is available beginning in August 2024. Each tranche of financing may be utilized within a period of 18 months from the initial availability date. If utilized, the interest rates will be fixed at 3.80% and 3.74%, respectively, and the loan and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees . Interest expense, net Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended December 31, January 1, Interest expense $ (465) $ (361) Interest and investment income 79 34 Net periodic pension and postretirement benefit costs (other than service costs) 86 16 Interest expense, net $ (300) $ (311) Interest and investment income includes gains and losses on certain publicly traded and non-public investments, investment impairments and interest earned on cash and cash equivalents and certain receivables. |
International Theme Parks
International Theme Parks | 3 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
International Theme Parks | International Theme ParksThe Company has a 48% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort. The Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks. The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: December 31, October 1, 2022 Cash and cash equivalents $ 301 $ 280 Other current assets 179 137 Total current assets 480 417 Parks, resorts and other property 6,462 6,356 Other assets 161 161 Total assets $ 7,103 $ 6,934 Current liabilities $ 514 $ 468 Long-term borrowings 1,549 1,426 Other long-term liabilities 410 395 Total liabilities $ 2,473 $ 2,289 The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the quarter ended December 31, 2022: Revenues $ 996 Costs and expenses (991) Equity in the loss of investees (2) Asia Theme Parks’ royalty and management fees of $24 million for the quarter ended December 31, 2022 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests. International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statements of Cash Flows for the quarter ended December 31, 2022 were $195 million provided by operating activities, $292 million used in investing activities and $66 million provided by financing activities. Hong Kong Disneyland Resort The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have a 52% and a 48% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have provided loans to Hong Kong Disneyland Resort with outstanding balances of $155 million and $104 million, respectively. The interest rate on both loans is three month HIBOR plus 2%, and the maturity date is September 2025. The Company’s loan is eliminated in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($269 million), which bears interest at a rate of three month HIBOR plus 1.25%. The line of credit was increased to HK $2.7 billion ($346 million) in November 2022 and matures in December 2028. The outstanding balance under the line of credit at December 31, 2022 was $232 million. The Company’s line of credit is eliminated in consolidation. Shanghai Disney Resort Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with loans totaling $940 million, bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. The Company has also provided Shanghai Disney Resort with a 1.9 billion yuan (approximately $0.3 billion) line of credit bearing interest at 8%. As of December 31, 2022, the total amount outstanding under the line of credit was 1.2 billion yuan (approximately $176 million). These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 8.4 billion yuan (approximately $1.2 billion), bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney |
Produced and Acquired_Licensed
Produced and Acquired/Licensed Content Costs and Advances | 3 Months Ended |
Dec. 31, 2022 | |
Other Industries [Abstract] | |
Produced and Acquired/Licensed Content Costs and Advances Disclosure | Produced and Acquired/Licensed Content Costs and Advances The Company classifies its capitalized produced and acquired/licensed content costs as long-term assets and classifies advances for live programming rights made prior to the live event as short-term assets. For purposes of amortization and impairment, the capitalized content costs are classified based on their predominant monetization strategy as follows: • Individual - lifetime value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g. theatrical revenues or sales to third-party television programmers) • Group - lifetime value is predominantly derived from third-party revenues that are attributable only to a bundle of titles (e.g. subscription revenue for a DTC service or affiliate fees for a cable television network) Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of December 31, 2022 As of October 1, 2022 Predominantly Monetized Individually Predominantly Monetized Total Predominantly Monetized Individually Predominantly Monetized Total Produced content Released, less amortization $ 5,263 $ 13,358 $ 18,621 $ 4,639 $ 12,688 $ 17,327 Completed, not released 116 1,632 1,748 214 2,019 2,233 In-process 4,047 7,502 11,549 5,041 6,793 11,834 In development or pre-production 338 174 512 372 254 626 $ 9,764 $ 22,666 32,430 $ 10,266 $ 21,754 32,020 Licensed content - Television programming rights and advances 5,136 5,647 Total produced and licensed content $ 37,566 $ 37,667 Current portion $ 1,300 $ 1,890 Non-current portion $ 36,266 $ 35,777 Amortization of produced and licensed content is as follows: Quarter Ended December 31, January 1, Produced content Predominantly monetized individually $ 1,157 $ 1,033 Predominantly monetized as a group 2,160 1,618 3,317 2,651 Licensed programming rights and advances 4,539 4,811 Total produced and licensed content costs (1) $ 7,856 $ 7,462 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income. |
Income Taxes Income Tax
Income Taxes Income Tax | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Unrecognized Tax Benefits During the quarter ended December 31, 2022, the Company increased its gross unrecognized tax benefits (before interest and penalties) by $0.1 billion to $2.6 billion. In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to resolutions of open tax matters, which would reduce our unrecognized tax benefits by $0.1 billion. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 3 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Programs | Pension and Other Benefit Programs The components of net periodic benefit cost (income) are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 31, January 1, December 31, January 1, Service costs $ 65 $ 100 $ 1 $ 2 Other costs (benefits): Interest costs 196 124 20 13 Expected return on plan assets (288) (293) (15) (15) Amortization of previously deferred service costs 2 1 — — Recognized net actuarial loss 5 147 (6) 7 Total other costs (benefits) (85) (21) (1) 5 Net periodic benefit cost (income) $ (20) $ 79 $ — $ 7 During the quarter ended December 31, 2022, the Company did not make any material contributions to its pension and postretirement medical plans and does not currently expect to make any material contributions for the remainder of fiscal 2023. Final minimum funding requirements for fiscal 2023 will be determined based on a January 1, 2023 funding actuarial valuation, which is expected to be received in the fourth quarter of fiscal 2023. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2022 | |
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 1, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,825 1,819 Weighted average dilutive impact of Awards 2 9 Weighted average number of common and common equivalent shares outstanding (diluted) 1,827 1,828 Awards excluded from diluted earnings per share 26 4 |
Equity
Equity | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, before tax First quarter of fiscal 2023 Balance at October 1, 2022 $ 804 $ (3,770) $ (2,014) $ (4,980) Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period (475) — 146 (329) Reclassifications of realized net (gains) losses to net income (218) 1 42 (175) Balance at December 31, 2022 $ 111 $ (3,769) $ (1,826) $ (5,484) First quarter of fiscal 2022 Balance at October 2, 2021 $ (152) $ (7,025) $ (1,047) $ (8,224) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 87 47 (37) 97 Reclassifications of realized net (gains) losses to net income (18) 155 — 137 Balance at January 1, 2022 $ (83) $ (6,823) $ (1,084) $ (7,990) Market Value Adjustments for Hedges Unrecognized Foreign AOCI Tax on AOCI First quarter of fiscal 2023 Balance at October 1, 2022 $ (179) $ 901 $ 139 $ 861 Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period 100 — 8 108 Reclassifications of realized net (gains) losses to net income 51 — (14) 37 Balance at December 31, 2022 $ (28) $ 901 $ 133 $ 1,006 First quarter of fiscal 2022 Balance at October 2, 2021 $ 42 $ 1,653 $ 89 $ 1,784 Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period (23) (11) (4) (38) Reclassifications of realized net (gains) losses to net income 4 (36) — (32) Balance at January 1, 2022 $ 23 $ 1,606 $ 85 $ 1,714 Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, after tax First quarter of fiscal 2023 Balance at October 1, 2022 $ 625 $ (2,869) $ (1,875) $ (4,119) Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period (375) — 154 (221) Reclassifications of realized net (gains) losses to net income (167) 1 28 (138) Balance at December 31, 2022 $ 83 $ (2,868) $ (1,693) $ (4,478) First quarter of fiscal 2022 Balance at October 2, 2021 $ (110) $ (5,372) $ (958) $ (6,440) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 64 36 (41) 59 Reclassifications of realized net (gains) losses to net income (14) 119 — 105 Balance at January 1, 2022 $ (60) $ (5,217) $ (999) $ (6,276) Details about AOCI components reclassified to net income are as follows: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Operations: Quarter Ended December 31, January 1, Market value adjustments, primarily cash flow hedges Primarily revenue $ 218 $ 18 Estimated tax Income taxes (51) (4) 167 14 Pension and postretirement medical expense Interest expense, net (1) (155) Estimated tax Income taxes — 36 (1) (119) Foreign currency translation and other Restructuring and impairment charges (42) — Estimated tax Income taxes 14 — (28) — Total reclassifications for the period $ 138 $ (105) |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended December 31, January 1, Stock options $ 19 $ 24 RSUs 251 172 Total equity-based compensation expense (1) $ 270 $ 196 Equity-based compensation expense capitalized during the period $ 36 $ 30 (1) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $119 million and $2.2 billion, respectively, as of December 31, 2022. During the quarter ended December 31, 2022 and January 1, 2022, the weighted average grant date fair values for options granted were $34.71 and $47.66, respectively, and for RSUs were $91.89 and $149.95, respectively. During the quarter ended December 31, 2022, the Company made equity compensation grants consisting of 1.5 million stock options and 9.4 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company, together with, in some instances, certain of its directors and officers, is a defendant in various 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 those actions. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2022 | |
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 generally classified in one of the following 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, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 240 $ — $ — $ 240 Derivatives Foreign exchange — 1,133 — 1,133 Other — 9 — 9 Liabilities Derivatives Interest rate — (1,722) — (1,722) Foreign exchange — (834) — (834) Other — (17) — (17) Other — (436) — (436) Total recorded at fair value $ 240 $ (1,867) $ — $ (1,627) Fair value of borrowings $ — $ 43,364 $ 1,639 $ 45,003 Fair Value Measurement at October 1, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 308 $ — $ — $ 308 Derivatives Interest rate — 1 — 1 Foreign exchange — 2,223 — 2,223 Other — 10 — 10 Liabilities Derivatives Interest rate — (1,783) — (1,783) Foreign exchange — (1,239) — (1,239) Other — (31) — (31) Other — (354) — (354) Total recorded at fair value $ 308 $ (1,173) $ — $ (865) Fair value of borrowings $ — $ 42,509 $ 1,510 $ 44,019 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, had an impact on derivative fair value estimates that was not material. Level 2 other liabilities are primarily arrangements that are valued based on the fair value of underlying investments, which are generally measured using Level 1 and Level 2 fair value techniques. Level 2 borrowings, which include commercial paper, U.S. dollar denominated notes and certain foreign currency denominated borrowings, are valued based on quoted prices for similar instruments in active markets or identical instruments in markets that are not active. Level 3 borrowings include the Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as prevailing market interest rates. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 31, 2022 | |
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, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 559 $ 365 $ (234) $ (221) Interest rate — — (1,722) — Other 8 1 (3) — Derivatives not designated as hedges Foreign exchange 208 1 (378) (1) Other — — (14) — Gross fair value of derivatives 775 367 (2,351) (222) Counterparty netting (653) (264) 804 113 Cash collateral (received) paid (63) (22) 1,491 72 Net derivative positions $ 59 $ 81 $ (56) $ (37) As of October 1, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 864 $ 786 $ (228) $ (350) Interest rate — 1 (1,783) — Other 10 — (4) — Derivatives not designated as hedges Foreign exchange 336 247 (374) (287) Other — — (27) — Gross fair value of derivatives 1,210 1,034 (2,416) (637) Counterparty netting (831) (715) 1,070 476 Cash collateral (received) paid (341) (151) 1,282 96 Net derivative positions $ 38 $ 168 $ (64) $ (65) 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 on the market value of its borrowings. 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. The total notional amount of the Company’s pay-floating interest rate swaps at both December 31, 2022 and October 1, 2022, was $13.5 billion and $14.5 billion, respectively. The following table summarizes fair value hedge adjustments to hedged borrowings: Carrying Amount of Hedged Borrowings Fair Value Adjustments Included December 31, October 1, 2022 December 31, October 1, 2022 Borrowings: Current $ — $ 997 $ — $ (3) Long-term 12,465 12,358 (1,666) (1,733) $ 12,465 $ 13,355 $ (1,666) $ (1,736) The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended December 31, January 1, Gain (loss) on: Pay-floating swaps $ 71 $ (178) Borrowings hedged with pay-floating swaps (71) 178 Benefit (expense) associated with interest accruals on pay-floating swaps (95) 37 The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed interest rate 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, 2022 or at October 1, 2022, and gains and losses related to pay-fixed interest rate swaps recognized in earnings for the quarter ended December 31, 2022 and January 1, 2022 were not material. 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, British pound, Chinese yuan and Canadian dollar. 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, 2022 and October 1, 2022, the notional amounts of the Company’s net foreign exchange cash flow hedges were $7.3 billion and $7.4 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. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months total $317 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: Quarter Ended December 31, January 1, Gain (loss) recognized in Other Comprehensive Income $ (502) $ 79 Gain (loss) reclassified from AOCI into the Statements of Operations (1) 222 13 (1) Primarily recorded in revenue. The Company designates cross currency swaps as fair value hedges of foreign currency denominated borrowings. The impact from the change in foreign currency on both the cross currency swap and borrowing is recorded to “Interest expense, net.” The impact from interest rate changes is recorded in AOCI and is amortized over the life of the cross currency swap. As of December 31, 2022 and October 1, 2022, the total notional amounts of the Company’s designated cross currency swaps were Canadian $1.3 billion ($1.0 billion) and Canadian $1.3 billion ($0.9 billion), respectively. The related gains or losses recognized in earnings were not material for the quarters ended December 31, 2022 and January 1, 2022. 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, 2022 and October 1, 2022 were $4.2 billion and $3.8 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 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 1, December 31, January 1, December 31, January 1, Net gains (losses) on foreign currency denominated assets and liabilities $ 145 $ (63) $ (18) $ 1 $ (88) $ 8 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (213) 33 18 — 70 (8) Net gains (losses) $ (68) $ (30) $ — $ 1 $ (18) $ — 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, 2022 and October 1, 2022 and related gains or losses recognized in earnings for the quarter and quarter ended December 31, 2022 and January 1, 2022 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 total return 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 amounts of these contracts at December 31, 2022 and October 1, 2022 were $0.4 billion and $0.4 billion, respectively. The related gains or losses recognized in earnings were not material for the quarters ended December 31, 2022 and January 1, 2022. 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 $1.7 billion and $1.5 billion on December 31, 2022 and October 1, 2022, respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment ChargesFor the quarter ended December 31, 2022, the Company recognized restructuring charges of $69 million related to exiting our businesses in Russia. These charges are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statements of Income. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Not Yet Adopted Disclosures by Business Entities about Government Assistance In November 2021, the FASB issued guidance requiring annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. The new guidance requires the disclosure of the nature of the transactions, the accounting for the transactions, and the effect of the transactions on the financial statements. The guidance is effective for annual periods beginning with the Company’s 2023 fiscal year. While the guidance will not have an effect on the Company’s Consolidated Statements of Operations or Consolidated Balance Sheets upon adoption, in the fourth quarter of fiscal 2023, the Company may need to disclose the effects on the financial statements of incentives related to the production of content, which are the most significant type of government assistance we receive. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Financial Information by Operating Segments | Segment revenues and segment operating income (loss) are as follows: Quarter Ended December 31, January 1, Revenues: Disney Media and Entertainment Distribution $ 14,776 $ 14,585 Disney Parks, Experiences and Products 8,736 7,234 Total segment revenues $ 23,512 $ 21,819 Segment operating income (loss): Disney Media and Entertainment Distribution $ (10) $ 808 Disney Parks, Experiences and Products 3,053 2,450 Total segment operating income (1) $ 3,043 $ 3,258 (1) Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 31, January 1, Disney Media and Entertainment Distribution $ 196 $ 245 Disney Parks, Experiences and Products (2) (3) Equity in the income of investees included in segment operating income 194 242 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 191 $ 239 |
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 1, Disney Media and Entertainment Distribution $ 196 $ 245 Disney Parks, Experiences and Products (2) (3) Equity in the income of investees included in segment operating income 194 242 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 191 $ 239 |
Reconciliation of Segment Operating Income to Income before Income Taxes | A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended December 31, January 1, Segment operating income $ 3,043 $ 3,258 Corporate and unallocated shared expenses (280) (228) Restructuring and impairment charges (69) — Other expense, net (1) (42) (436) Interest expense, net (300) (311) TFCF and Hulu acquisition amortization (2) (579) (595) Income from continuing operations before income taxes $ 1,773 $ 1,688 (1) See Note 4 for a discussion of amounts in other expense, net. (2) For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively. |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: DMED DPEP Total Balance at October 1, 2022 $ 72,347 $ 5,550 $ 77,897 Currency translation adjustments and other, net (30) — (30) Balance at December 31, 2022 $ 72,317 $ 5,550 $ 77,867 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source: Quarter Ended December 31, 2022 Quarter Ended January 1, 2022 DMED DPEP Total DMED DPEP Total Affiliate fees $ 4,242 $ — $ 4,242 $ 4,371 $ — $ 4,371 Subscription fees 4,240 — 4,240 3,598 — 3,598 Advertising 3,442 1 3,443 3,868 1 3,869 Theme park admissions — 2,641 2,641 — 2,152 2,152 Resort and vacations — 1,980 1,980 — 1,445 1,445 Retail and wholesale sales of merchandise, food and beverage — 2,382 2,382 — 2,089 2,089 Merchandise licensing — 1,143 1,143 — 1,119 1,119 TV/SVOD distribution licensing 979 — 979 1,396 — 1,396 Theatrical distribution licensing 1,140 — 1,140 529 — 529 Home entertainment 135 — 135 294 — 294 Other 598 589 1,187 529 428 957 $ 14,776 $ 8,736 $ 23,512 $ 14,585 $ 7,234 $ 21,819 |
Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets: Quarter Ended December 31, 2022 Quarter Ended January 1, 2022 DMED DPEP Total DMED DPEP Total Americas $ 12,018 $ 6,953 $ 18,971 $ 11,830 $ 5,711 $ 17,541 Europe 1,574 1,066 2,640 1,538 865 2,403 Asia Pacific 1,184 717 1,901 1,217 658 1,875 Total revenues $ 14,776 $ 8,736 $ 23,512 $ 14,585 $ 7,234 $ 21,819 |
Contract with Customer, Asset and Liability | Accounts receivable and deferred revenues from contracts with customers are as follows: December 31, October 1, Accounts receivable Current $ 12,222 $ 10,886 Non-current 1,193 1,226 Allowance for credit losses (166) (179) Deferred revenues Current 5,392 5,531 Non-current 908 927 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | Other expense, net is as follows: Quarter Ended December 31, January 1, DraftKings loss $ (70) $ (432) Other, net 28 (4) Other expense, net $ (42) $ (436) |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Borrowings (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. December 31, October 1, Cash and cash equivalents $ 8,470 $ 11,615 Restricted cash included in: Other current assets 3 3 Other assets 43 43 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 8,516 $ 11,661 |
Borrowing Activity | During the quarter ended December 31, 2022, the Company’s borrowing activity was as follows: October 1, Borrowings Payments Other December 31, Commercial paper with original maturities less than three months $ 50 $ 362 $ — $ 1 $ 413 Commercial paper with original maturities greater than three months 1,612 1,151 (714) 10 2,059 U.S. dollar denominated notes 45,091 — (1,000) (33) 44,058 Asia Theme Parks borrowings 1,425 66 — 58 1,549 Foreign currency denominated debt and other (1) 191 1 — 106 298 $ 48,369 $ 1,580 $ (1,714) $ 142 $ 48,377 (1) The other activity is primarily due to market value adjustments for debt with qualifying hedges. |
Line of Credit Facilities | At December 31, 2022, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows: Committed Capacity Unused Facility expiring March 2023 $ 5,250 $ — $ 5,250 Facility expiring March 2025 3,000 — 3,000 Facility expiring March 2027 4,000 — 4,000 Total $ 12,250 $ — $ 12,250 |
Interest Expense, net | Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended December 31, January 1, Interest expense $ (465) $ (361) Interest and investment income 79 34 Net periodic pension and postretirement benefit costs (other than service costs) 86 16 Interest expense, net $ (300) $ (311) |
International Theme Parks (Tabl
International Theme Parks (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Consolidating Balance Sheets | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: December 31, October 1, 2022 Cash and cash equivalents $ 301 $ 280 Other current assets 179 137 Total current assets 480 417 Parks, resorts and other property 6,462 6,356 Other assets 161 161 Total assets $ 7,103 $ 6,934 Current liabilities $ 514 $ 468 Long-term borrowings 1,549 1,426 Other long-term liabilities 410 395 Total liabilities $ 2,473 $ 2,289 |
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 Statements of Income for the quarter ended December 31, 2022: Revenues $ 996 Costs and expenses (991) Equity in the loss of investees (2) |
Produced and Acquired_License_2
Produced and Acquired/Licensed Content Costs and Advances (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Other Industries [Abstract] | |
Balances of Produced and Licensed Content Costs | Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of December 31, 2022 As of October 1, 2022 Predominantly Monetized Individually Predominantly Monetized Total Predominantly Monetized Individually Predominantly Monetized Total Produced content Released, less amortization $ 5,263 $ 13,358 $ 18,621 $ 4,639 $ 12,688 $ 17,327 Completed, not released 116 1,632 1,748 214 2,019 2,233 In-process 4,047 7,502 11,549 5,041 6,793 11,834 In development or pre-production 338 174 512 372 254 626 $ 9,764 $ 22,666 32,430 $ 10,266 $ 21,754 32,020 Licensed content - Television programming rights and advances 5,136 5,647 Total produced and licensed content $ 37,566 $ 37,667 Current portion $ 1,300 $ 1,890 Non-current portion $ 36,266 $ 35,777 |
Amortization of Produced and Licensed Content Costs | Amortization of produced and licensed content is as follows: Quarter Ended December 31, January 1, Produced content Predominantly monetized individually $ 1,157 $ 1,033 Predominantly monetized as a group 2,160 1,618 3,317 2,651 Licensed programming rights and advances 4,539 4,811 Total produced and licensed content costs (1) $ 7,856 $ 7,462 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income. |
Pension and Other Benefit Pro_2
Pension and Other Benefit Programs (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost (income) are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 31, January 1, December 31, January 1, Service costs $ 65 $ 100 $ 1 $ 2 Other costs (benefits): Interest costs 196 124 20 13 Expected return on plan assets (288) (293) (15) (15) Amortization of previously deferred service costs 2 1 — — Recognized net actuarial loss 5 147 (6) 7 Total other costs (benefits) (85) (21) (1) 5 Net periodic benefit cost (income) $ (20) $ 79 $ — $ 7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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 1, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,825 1,819 Weighted average dilutive impact of Awards 2 9 Weighted average number of common and common equivalent shares outstanding (diluted) 1,827 1,828 Awards excluded from diluted earnings per share 26 4 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, before tax First quarter of fiscal 2023 Balance at October 1, 2022 $ 804 $ (3,770) $ (2,014) $ (4,980) Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period (475) — 146 (329) Reclassifications of realized net (gains) losses to net income (218) 1 42 (175) Balance at December 31, 2022 $ 111 $ (3,769) $ (1,826) $ (5,484) First quarter of fiscal 2022 Balance at October 2, 2021 $ (152) $ (7,025) $ (1,047) $ (8,224) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 87 47 (37) 97 Reclassifications of realized net (gains) losses to net income (18) 155 — 137 Balance at January 1, 2022 $ (83) $ (6,823) $ (1,084) $ (7,990) Market Value Adjustments for Hedges Unrecognized Foreign AOCI Tax on AOCI First quarter of fiscal 2023 Balance at October 1, 2022 $ (179) $ 901 $ 139 $ 861 Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period 100 — 8 108 Reclassifications of realized net (gains) losses to net income 51 — (14) 37 Balance at December 31, 2022 $ (28) $ 901 $ 133 $ 1,006 First quarter of fiscal 2022 Balance at October 2, 2021 $ 42 $ 1,653 $ 89 $ 1,784 Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period (23) (11) (4) (38) Reclassifications of realized net (gains) losses to net income 4 (36) — (32) Balance at January 1, 2022 $ 23 $ 1,606 $ 85 $ 1,714 Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, after tax First quarter of fiscal 2023 Balance at October 1, 2022 $ 625 $ (2,869) $ (1,875) $ (4,119) Quarter Ended December 31, 2022: Unrealized gains (losses) arising during the period (375) — 154 (221) Reclassifications of realized net (gains) losses to net income (167) 1 28 (138) Balance at December 31, 2022 $ 83 $ (2,868) $ (1,693) $ (4,478) First quarter of fiscal 2022 Balance at October 2, 2021 $ (110) $ (5,372) $ (958) $ (6,440) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 64 36 (41) 59 Reclassifications of realized net (gains) losses to net income (14) 119 — 105 Balance at January 1, 2022 $ (60) $ (5,217) $ (999) $ (6,276) |
Details about AOCI Components Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Operations: Quarter Ended December 31, January 1, Market value adjustments, primarily cash flow hedges Primarily revenue $ 218 $ 18 Estimated tax Income taxes (51) (4) 167 14 Pension and postretirement medical expense Interest expense, net (1) (155) Estimated tax Income taxes — 36 (1) (119) Foreign currency translation and other Restructuring and impairment charges (42) — Estimated tax Income taxes 14 — (28) — Total reclassifications for the period $ 138 $ (105) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (RSUs) | Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended December 31, January 1, Stock options $ 19 $ 24 RSUs 251 172 Total equity-based compensation expense (1) $ 270 $ 196 Equity-based compensation expense capitalized during the period $ 36 $ 30 (1) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 240 $ — $ — $ 240 Derivatives Foreign exchange — 1,133 — 1,133 Other — 9 — 9 Liabilities Derivatives Interest rate — (1,722) — (1,722) Foreign exchange — (834) — (834) Other — (17) — (17) Other — (436) — (436) Total recorded at fair value $ 240 $ (1,867) $ — $ (1,627) Fair value of borrowings $ — $ 43,364 $ 1,639 $ 45,003 Fair Value Measurement at October 1, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 308 $ — $ — $ 308 Derivatives Interest rate — 1 — 1 Foreign exchange — 2,223 — 2,223 Other — 10 — 10 Liabilities Derivatives Interest rate — (1,783) — (1,783) Foreign exchange — (1,239) — (1,239) Other — (31) — (31) Other — (354) — (354) Total recorded at fair value $ 308 $ (1,173) $ — $ (865) Fair value of borrowings $ — $ 42,509 $ 1,510 $ 44,019 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
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, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 559 $ 365 $ (234) $ (221) Interest rate — — (1,722) — Other 8 1 (3) — Derivatives not designated as hedges Foreign exchange 208 1 (378) (1) Other — — (14) — Gross fair value of derivatives 775 367 (2,351) (222) Counterparty netting (653) (264) 804 113 Cash collateral (received) paid (63) (22) 1,491 72 Net derivative positions $ 59 $ 81 $ (56) $ (37) As of October 1, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 864 $ 786 $ (228) $ (350) Interest rate — 1 (1,783) — Other 10 — (4) — Derivatives not designated as hedges Foreign exchange 336 247 (374) (287) Other — — (27) — Gross fair value of derivatives 1,210 1,034 (2,416) (637) Counterparty netting (831) (715) 1,070 476 Cash collateral (received) paid (341) (151) 1,282 96 Net derivative positions $ 38 $ 168 $ (64) $ (65) |
Carrying Amount and Cumulative Basis Adjustments for Fair Value Hedges Recorded on the Balance Sheet | The following table summarizes fair value hedge adjustments to hedged borrowings: Carrying Amount of Hedged Borrowings Fair Value Adjustments Included December 31, October 1, 2022 December 31, October 1, 2022 Borrowings: Current $ — $ 997 $ — $ (3) Long-term 12,465 12,358 (1,666) (1,733) $ 12,465 $ 13,355 $ (1,666) $ (1,736) |
Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income | The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended December 31, January 1, Gain (loss) on: Pay-floating swaps $ 71 $ (178) Borrowings hedged with pay-floating swaps (71) 178 Benefit (expense) associated with interest accruals on pay-floating swaps (95) 37 |
Effect of Foreign Exchange Cash Flow Hedges on AOCI | The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: Quarter Ended December 31, January 1, Gain (loss) recognized in Other Comprehensive Income $ (502) $ 79 Gain (loss) reclassified from AOCI into the Statements of Operations (1) 222 13 (1) Primarily recorded in revenue. |
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 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 1, December 31, January 1, December 31, January 1, Net gains (losses) on foreign currency denominated assets and liabilities $ 145 $ (63) $ (18) $ 1 $ (88) $ 8 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (213) 33 18 — 70 (8) Net gains (losses) $ (68) $ (30) $ — $ 1 $ (18) $ — |
Principles of Consolidation Pri
Principles of Consolidation Principles of Consolidation - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Dec. 31, 2022 | Oct. 01, 2022 | May 13, 2019 |
Schedule of Equity Method Investments | ||||
Redeemable Noncontrolling Interests | $ 8,743 | $ 9,499 | ||
Hulu LLC | ||||
Schedule of Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 67% | |||
Hulu LLC | Equity Interest Held by NBC Universal | ||||
Schedule of Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 33% | |||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 27,500 | |||
Redeemable Noncontrolling Interests | $ 8,700 | |||
BAMTech, LLC | MLB | ||||
Schedule of Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 15% | |||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 900 | $ 828 | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | $ 72 |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information | ||
Revenues | $ 23,512 | $ 21,819 |
Segment operating income | 3,043 | 3,258 |
Disney Media and Entertainment Distribution | ||
Segment Reporting Information | ||
Revenues | 14,776 | 14,585 |
Segment operating income | (10) | 808 |
Disney Parks, Experiences and Products | ||
Segment Reporting Information | ||
Revenues | 8,736 | 7,234 |
Segment operating income | 3,053 | 2,450 |
Total Segments | ||
Segment Reporting Information | ||
Revenues | $ 23,512 | $ 21,819 |
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, 2022 | Jan. 01, 2022 | |
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 191 | $ 239 |
Amortization of Intangible Assets Held by Equity Investees | (3) | (3) |
Disney Media and Entertainment Distribution | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 196 | 245 |
Disney Parks, Experiences and Products | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | (2) | (3) |
Total Segments | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 194 | $ 242 |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | |||
Segment operating income | $ 3,043 | $ 3,258 | |
Corporate and unallocated shared expenses | (280) | (228) | |
Restructuring and impairment charges | (69) | 0 | |
Other expense, net | [1] | (42) | (436) |
Interest expense, net | (300) | (311) | |
Amortization of Intangible Assets | [2] | (579) | (595) |
Income from continuing operations before income taxes | $ 1,773 | $ 1,688 | |
[1]See Note 4 for a discussion of amounts in other expense, net.[2]For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively. |
Reconciliation of Segment Ope_2
Reconciliation of Segment Operating Income to Income Before Income Taxes Footnote (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Amortization of Intangible Assets | [1] | $ 579 | $ 595 |
Amortization of Intangible Assets Held by Equity Investees | (3) | (3) | |
TFCF and Hulu | |||
Amortization of Intangible Assets | 417 | 435 | |
Amortization | 159 | 157 | |
Amortization of Intangible Assets Held by Equity Investees | $ 3 | $ 3 | |
[1]For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively. |
Acquisitions Changes in Carry A
Acquisitions Changes in Carry Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 77,897 |
Currency translation adjustments and other, net | (30) |
Ending balance | 77,867 |
Disney Media and Entertainment Distribution | |
Goodwill [Line Items] | |
Beginning balance | 72,347 |
Currency translation adjustments and other, net | (30) |
Ending balance | 72,317 |
Disney Parks, Experiences and Products | |
Goodwill [Line Items] | |
Beginning balance | 5,550 |
Currency translation adjustments and other, net | 0 |
Ending balance | $ 5,550 |
Disaggregation of Revenue by Ma
Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 23,512 | $ 21,819 |
Affiliate fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,242 | 4,371 |
Subscription fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,240 | 3,598 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,443 | 3,869 |
Theme park admissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,641 | 2,152 |
Resort and vacations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,980 | 1,445 |
Retail and wholesale sales of merchandise, food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,382 | 2,089 |
Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,143 | 1,119 |
TV/SVOD distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 979 | 1,396 |
Theatrical distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,140 | 529 |
Home entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 135 | 294 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,187 | 957 |
Disney Media and Entertainment Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,776 | 14,585 |
Disney Media and Entertainment Distribution | Affiliate fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,242 | 4,371 |
Disney Media and Entertainment Distribution | Subscription fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,240 | 3,598 |
Disney Media and Entertainment Distribution | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,442 | 3,868 |
Disney Media and Entertainment Distribution | Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Disney Media and Entertainment Distribution | TV/SVOD distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 979 | 1,396 |
Disney Media and Entertainment Distribution | Theatrical distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,140 | 529 |
Disney Media and Entertainment Distribution | Home entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 135 | 294 |
Disney Media and Entertainment Distribution | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 598 | 529 |
Disney Parks, Experiences and Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8,736 | 7,234 |
Disney Parks, Experiences and Products | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1 | 1 |
Disney Parks, Experiences and Products | Theme park admissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,641 | 2,152 |
Disney Parks, Experiences and Products | Resort and vacations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,980 | 1,445 |
Disney Parks, Experiences and Products | Retail and wholesale sales of merchandise, food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,382 | 2,089 |
Disney Parks, Experiences and Products | Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,143 | 1,119 |
Disney Parks, Experiences and Products | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 589 | $ 428 |
Disaggregation of Revenue by Ge
Disaggregation of Revenue by Geographical Markets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 23,512 | $ 21,819 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,971 | 17,541 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,640 | 2,403 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,901 | 1,875 |
Disney Media and Entertainment Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,776 | 14,585 |
Disney Media and Entertainment Distribution | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,018 | 11,830 |
Disney Media and Entertainment Distribution | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,574 | 1,538 |
Disney Media and Entertainment Distribution | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,184 | 1,217 |
Disney Parks, Experiences and Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8,736 | 7,234 |
Disney Parks, Experiences and Products | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,953 | 5,711 |
Disney Parks, Experiences and Products | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,066 | 865 |
Disney Parks, Experiences and Products | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 717 | $ 658 |
Contract with Customer, Asset a
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Accounts Receivable, before Allowance for Credit Loss, Current | $ 12,222 | $ 10,886 |
Accounts Receivable, before Allowance for Credit Loss, Noncurrent | 1,193 | 1,226 |
Contract with Customer, Asset, Allowance for Credit Loss | (166) | (179) |
Contract with Customer, Liability, Current | 5,392 | 5,531 |
Contract with Customer, Liability, Noncurrent | $ 908 | $ 927 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Oct. 01, 2022 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 300 | $ 400 | |
Revenue, Remaining Performance Obligation, Amount | 15,000 | ||
Contract with Customer, Liability, Revenue Recognized | 3,400 | $ 1,900 | |
Syndicated programming | |||
Long-term receivables, net of allowance for credit losses | 600 | $ 600 | |
Mortgage Receivable | |||
Long-term receivables, net of allowance for credit losses | 600 | $ 600 | |
Unsatisfied performance obligation recognized in fiscal 2023 | |||
Revenue, Remaining Performance Obligation, Amount | 4,000 | ||
Unsatisfied performance obligation recognized in fiscal 2024 | |||
Revenue, Remaining Performance Obligation, Amount | 4,000 | ||
Unsatisfied performance obligation recognized in fiscal 2025 | |||
Revenue, Remaining Performance Obligation, Amount | 3,000 | ||
Unsatisfied performance obligation recognized thereafter | |||
Revenue, Remaining Performance Obligation, Amount | $ 4,000 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Schedule of Other Income and Expense [Line Items] | |||
Other Nonoperating Income (Expense) | $ 28 | $ (4) | |
Other expense, net | [1] | (42) | (436) |
DraftKings | |||
Schedule of Other Income and Expense [Line Items] | |||
Gain (Loss) on Investments | $ (70) | $ (432) | |
[1]See Note 4 for a discussion of amounts in other expense, net. |
Reconciliation of Cash, Cash Eq
Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported in the Condensed Consolidated Balance Sheet to the Total Amount in the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 8,470 | $ 11,615 | ||
Restricted Cash and Investments, Current | 3 | 3 | ||
Restricted Cash and Investments, Noncurrent | 43 | 43 | ||
Cash, Cash Equivalents and Restricted Cash in the Statement of Cash Flows | $ 8,516 | $ 11,661 | $ 14,488 | $ 16,003 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 48,369 | |
Borrowings | 1,580 | |
Payments | (1,714) | |
Other Activity | 142 | |
Borrowings ending balance | 48,377 | |
Commercial paper with original maturities less than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 50 | |
Borrowings | 362 | |
Payments | 0 | |
Other Activity | 1 | |
Borrowings ending balance | 413 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,612 | |
Borrowings | 1,151 | |
Payments | (714) | |
Other Activity | 10 | |
Borrowings ending balance | 2,059 | |
U.S. dollar denominated notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 45,091 | |
Borrowings | 0 | |
Payments | (1,000) | |
Other Activity | (33) | |
Borrowings ending balance | 44,058 | |
Asia International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,425 | |
Borrowings | 66 | |
Payments | 0 | |
Other Activity | 58 | |
Borrowings ending balance | 1,549 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 191 | |
Borrowings | 1 | |
Payments | 0 | |
Other Activity | 106 | [1] |
Borrowings ending balance | $ 298 | |
[1]The other activity is primarily due to market value adjustments for debt with qualifying hedges. |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Borrowings Line of Credit Facilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 12,250 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 5,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 5,250 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 3,000 |
Existing Line Of Credit 1 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 4,000 |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash and Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Interest expense | $ (465) | $ (361) |
Interest and investment income | 79 | 34 |
Net periodic pension and postretirement benefit costs other than service costs | 86 | 16 |
Interest expense, net | $ (300) | $ (311) |
Cash, Cash Equivalents, Restr_5
Cash, Cash Equivalents, Restricted Cash and Borrowings - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Interest Rate Description | These facilities allow for borrowings at SOFR-based rates plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s ranging from 0.755% to 1.225%. |
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 |
Letters of Credit Outstanding, Amount | $ 2,000 |
Minimum | |
Debt Instrument [Line Items] | |
Variable Spread Above SOFR | 0.755% |
Maximum | |
Debt Instrument [Line Items] | |
Variable Spread Above SOFR | 1.225% |
Letter of Credit | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Existing Line of Credit 3 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2023 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,250 |
Existing Line of Credit 2 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2025 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 |
Existing Line Of Credit 1 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2027 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 |
Credit Facility available beginning August 2023 | Disney Cruise Line | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% |
Credit Facility available beginning August 2024 | Disney Cruise Line | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.74% |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of Asia Theme Parks (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | $ 8,470 | $ 11,615 |
Other current assets | 1,319 | 1,199 |
Total current assets | 26,912 | 29,098 |
Parks, resorts and other property | 34,200 | 33,596 |
Other assets | 9,363 | 9,208 |
Total assets | 202,124 | 203,631 |
Current liabilities | 27,070 | 29,073 |
Long-term borrowings | 45,128 | 45,299 |
Asia International Theme Parks | ||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | 301 | 280 |
Other current assets | 179 | 137 |
Total current assets | 480 | 417 |
Parks, resorts and other property | 6,462 | 6,356 |
Other assets | 161 | 161 |
Total assets | 7,103 | 6,934 |
Current liabilities | 514 | 468 |
Long-term borrowings | 1,549 | 1,426 |
Other long-term liabilities | 410 | 395 |
Total liabilities | $ 2,473 | $ 2,289 |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues | $ 23,512 | $ 21,819 |
Cost and expenses | (21,519) | (19,623) |
Equity in the loss of investees | 191 | $ 239 |
International Theme Parks | ||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues | 996 | |
Cost and expenses | (991) | |
Equity in the loss of investees | $ (2) |
International Theme Parks - Add
International Theme Parks - Additional Information (Details) ¥ in Millions, $ in Millions, $ in Billions | 2 Months Ended | 3 Months Ended | |||||
Nov. 30, 2022 USD ($) | Nov. 30, 2022 HKD ($) | Nov. 29, 2022 USD ($) | Nov. 29, 2022 HKD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Jan. 01, 2022 USD ($) | |
Noncontrolling Interest | |||||||
Net Cash Used in Investing Activities | $ (1,292) | $ (987) | |||||
Maximum | |||||||
Noncontrolling Interest | |||||||
Variable Spread Above Reference Rate | 1.225% | 1.225% | |||||
Asia International Theme Parks | |||||||
Noncontrolling Interest | |||||||
Royalties And Management Fees | $ 24 | ||||||
International Theme Parks | |||||||
Noncontrolling Interest | |||||||
Net Cash Provided by Operating Activities | 195 | ||||||
Net Cash Used in Investing Activities | (292) | ||||||
Net Cash Provided by Financing Activities | 66 | ||||||
Hong Kong Disneyland Resort | Loans | |||||||
Noncontrolling Interest | |||||||
Variable Interest Entity, Financial or Other Support, Amount | 155 | ||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 104 | ||||||
Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | |||||
Hong Kong Disneyland Resort | Loans | HIBOR | |||||||
Noncontrolling Interest | |||||||
Variable Spread Above Reference Rate | 2% | 2% | |||||
Hong Kong Disneyland Resort | Line of Credit | |||||||
Noncontrolling Interest | |||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 346 | $ 2.7 | $ 269 | $ 2.1 | |||
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 232 | ||||||
Debt Instrument, Maturity Date | Dec. 31, 2028 | Dec. 31, 2028 | |||||
Hong Kong Disneyland Resort | Line of Credit | HIBOR | |||||||
Noncontrolling Interest | |||||||
Variable Spread Above Reference Rate | 1.25% | 1.25% | |||||
Shanghai Disney Resort | Loans | |||||||
Noncontrolling Interest | |||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 940 | ||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 1,200 | ¥ 8,400 | |||||
Shanghai Disney Resort | Loans | Maximum | |||||||
Noncontrolling Interest | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | 8% | |||||
Shanghai Disney Resort | Line of Credit | |||||||
Noncontrolling Interest | |||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 300 | ¥ 1,900 | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 400 | ¥ 2,600 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | 8% | |||||
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 176 | ¥ 1,200 | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests, Outstanding | $ 233 | ¥ 1,600 | |||||
Hong Kong Disneyland Resort | |||||||
Noncontrolling Interest | |||||||
Effective Ownership Interest | 48% | 48% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 52% | 52% | |||||
Shanghai Disney Resort | |||||||
Noncontrolling Interest | |||||||
Effective Ownership Interest | 43% | 43% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 57% | 57% | |||||
Shanghai Disney Resort Management Company | |||||||
Noncontrolling Interest | |||||||
Effective Ownership Interest | 70% | 70% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30% | 30% | |||||
Shanghai Disney Resort Management Company | Shanghai Disney Resort | Loans | |||||||
Noncontrolling Interest | |||||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 | |||||
Shanghai Disney Resort Management Company | Shanghai Disney Resort | Line of Credit | |||||||
Noncontrolling Interest | |||||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 |
Balances of Produced and Licens
Balances of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Film, Monetized on Its Own, Capitalized Cost [Abstract] | ||
Released, less amortization | $ 5,263 | $ 4,639 |
Completed, not released | 116 | 214 |
In-process | 4,047 | 5,041 |
In development or pre-production | 338 | 372 |
Film, Monetized on Its Own, Capitalized Cost | 9,764 | 10,266 |
Film, Monetized in Film Group, Capitalized Cost [Abstract] | ||
Released, less amortization | 13,358 | 12,688 |
Completed, not released | 1,632 | 2,019 |
In-process | 7,502 | 6,793 |
In development or pre-production | 174 | 254 |
Film, Monetized in Film Group, Capitalized Cost | 22,666 | 21,754 |
Film, Capitalized Cost [Abstract] | ||
Released, less amortization | 18,621 | 17,327 |
Completed, not released | 1,748 | 2,233 |
In-process | 11,549 | 11,834 |
In development or pre-production | 512 | 626 |
Film, Capitalized Cost | 32,430 | 32,020 |
Licensed television programming rights and advances | 5,136 | 5,647 |
Produced and Licensed Content, Total | 37,566 | 37,667 |
Current portion | 1,300 | 1,890 |
Non-current portion | $ 36,266 | $ 35,777 |
Amortization of Produced and Li
Amortization of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Amortization of Produced Content Costs | $ 3,317 | $ 2,651 | |
Amortization of Licensed Television and Programming Rights | 4,539 | 4,811 | |
Amortization of Produced and Licensed Content Costs, Total | [1] | 7,856 | 7,462 |
Monetized individually | |||
Amortization of Produced Content Costs | 1,157 | 1,033 | |
Monetized as a group | |||
Amortization of Produced Content Costs | $ 2,160 | $ 1,618 | |
[1]Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Tax [Line Items] | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 100 |
Unrecognized Tax Benefits | 2,600 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 100 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (86) | $ (16) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 65 | 100 |
Interest costs | 196 | 124 |
Expected return on plan assets | (288) | (293) |
Amortization of previously deferred service costs | 2 | 1 |
Recognized net actuarial loss | 5 | 147 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (85) | (21) |
Net periodic benefit cost (income) | (20) | 79 |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 1 | 2 |
Interest costs | 20 | 13 |
Expected return on plan assets | (15) | (15) |
Amortization of previously deferred service costs | 0 | 0 |
Recognized net actuarial loss | (6) | 7 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (1) | 5 |
Net periodic benefit cost (income) | $ 0 | $ 7 |
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, 2022 | Jan. 01, 2022 | |
Shares (in millions): | ||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,825 | 1,819 |
Weighed average dilutive impact of awards | 2 | 9 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,827 | 1,828 |
Awards excluded from diluted earnings per share | 26 | 4 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (4,980) | $ (8,224) |
Unrealized gains (losses) arising during the period | (329) | 97 |
Reclassifications of realized net (gains) losses to net income | (175) | 137 |
AOCI before Tax, Attributable to Parent, Ending Balance | (5,484) | (7,990) |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | 804 | (152) |
Unrealized gains (losses) arising during the period | (475) | 87 |
Reclassifications of realized net (gains) losses to net income | (218) | (18) |
AOCI before Tax, Attributable to Parent, Ending Balance | 111 | (83) |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (3,770) | (7,025) |
Unrealized gains (losses) arising during the period | 0 | 47 |
Reclassifications of realized net (gains) losses to net income | 1 | 155 |
AOCI before Tax, Attributable to Parent, Ending Balance | (3,769) | (6,823) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (2,014) | (1,047) |
Unrealized gains (losses) arising during the period | 146 | (37) |
Reclassifications of realized net (gains) losses to net income | 42 | 0 |
AOCI before Tax, Attributable to Parent, Ending Balance | $ (1,826) | $ (1,084) |
Equity Changes in Accumulated_2
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 861 | $ 1,784 |
Unrealized gains (losses) arising during the period | 108 | (38) |
Reclassifications of realized net (gains) losses to net income | 37 | (32) |
AOCI Tax, Attributable to Parent, Ending Balance | 1,006 | 1,714 |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | (179) | 42 |
Unrealized gains (losses) arising during the period | 100 | (23) |
Reclassifications of realized net (gains) losses to net income | 51 | 4 |
AOCI Tax, Attributable to Parent, Ending Balance | (28) | 23 |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 901 | 1,653 |
Unrealized gains (losses) arising during the period | 0 | (11) |
Reclassifications of realized net (gains) losses to net income | 0 | (36) |
AOCI Tax, Attributable to Parent, Ending Balance | 901 | 1,606 |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 139 | 89 |
Unrealized gains (losses) arising during the period | 8 | (4) |
Reclassifications of realized net (gains) losses to net income | (14) | 0 |
AOCI Tax, Attributable to Parent, Ending Balance | $ 133 | $ 85 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | $ (4,119) | $ (6,440) |
Unrealized gains (losses) arising during the period | (221) | 59 |
Reclassifications of realized net (gains) losses to net income | (138) | 105 |
AOCI, Ending Balance | (4,478) | (6,276) |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | 625 | (110) |
Unrealized gains (losses) arising during the period | (375) | 64 |
Reclassifications of realized net (gains) losses to net income | (167) | (14) |
AOCI, Ending Balance | 83 | (60) |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (2,869) | (5,372) |
Unrealized gains (losses) arising during the period | 0 | 36 |
Reclassifications of realized net (gains) losses to net income | 1 | 119 |
AOCI, Ending Balance | (2,868) | (5,217) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (1,875) | (958) |
Unrealized gains (losses) arising during the period | 154 | (41) |
Reclassifications of realized net (gains) losses to net income | 28 | 0 |
AOCI, Ending Balance | $ (1,693) | $ (999) |
Details about AOCI Components R
Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Details about AOCI Components Reclassified to Net Income | ||
Revenues | $ 23,512 | $ 21,819 |
Interest expense, net | 300 | 311 |
Restructuring and impairment charges | 69 | 0 |
Income taxes | (412) | (488) |
Net income attributable to The Walt Disney Company (Disney) | 1,279 | 1,104 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Net income attributable to The Walt Disney Company (Disney) | 138 | (105) |
Gain/(loss) in net income from Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Revenues | 218 | 18 |
Income taxes | (51) | (4) |
Net income attributable to The Walt Disney Company (Disney) | 167 | 14 |
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 | ||
Interest expense, net | (1) | (155) |
Income taxes | 0 | 36 |
Net income attributable to The Walt Disney Company (Disney) | (1) | (119) |
Gain/(loss) in Foreign Currency Translation and Other | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Restructuring and impairment charges | (42) | 0 |
Income taxes | 14 | 0 |
Net income attributable to The Walt Disney Company (Disney) | $ (28) | $ 0 |
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, 2022 | Jan. 01, 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options | $ 19 | $ 24 | |
RSUs | 251 | 172 | |
Total equity-based compensation expense | [1] | 270 | 196 |
Equity-based compensation expense capitalized during the period | $ 36 | $ 30 | |
[1]Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures 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, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair values of options issued | $ 34.71 | $ 47.66 |
Weighted average grant date fair values of RSUs issued | $ 91.89 | $ 149.95 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 119 | |
Stock compensation granted, number of shares | 1.5 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 2,200 | |
Stock compensation granted, number of shares | 9.4 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 240 | $ 308 |
Other Liabilities | (436) | (354) |
Total | (1,627) | (865) |
Fair value of borrowings | 45,003 | 44,019 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1 | |
Derivative Liabilities | (1,722) | (1,783) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1,133 | 2,223 |
Derivative Liabilities | (834) | (1,239) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 9 | 10 |
Derivative Liabilities | (17) | (31) |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 240 | 308 |
Other Liabilities | 0 | 0 |
Total | 240 | 308 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 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 |
Other Liabilities | (436) | (354) |
Total | (1,867) | (1,173) |
Fair value of borrowings | 43,364 | 42,509 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1 | |
Derivative Liabilities | (1,722) | (1,783) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1,133 | 2,223 |
Derivative Liabilities | (834) | (1,239) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 9 | 10 |
Derivative Liabilities | (17) | (31) |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Other Liabilities | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 1,639 | 1,510 |
Level 3 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 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, 2022 | Oct. 01, 2022 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 775 | $ 1,210 |
Derivative Asset, Counterparty Netting Offset | (653) | (831) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (63) | (341) |
Net derivative positions | 59 | 38 |
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 | 559 | 864 |
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 | 10 |
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 | 208 | 336 |
Current Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 367 | 1,034 |
Derivative Asset, Counterparty Netting Offset | (264) | (715) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (22) | (151) |
Net derivative positions | 81 | 168 |
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 | 365 | 786 |
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 | 0 | 1 |
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 | 1 | 0 |
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 | 1 | 247 |
Other Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (2,351) | (2,416) |
Derivative Liability, Counterparty netting offset | 804 | 1,070 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,491 | 1,282 |
Net derivative positions | (56) | (64) |
Other Current 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 | (234) | (228) |
Other Current 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 | (1,722) | (1,783) |
Other Current 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 | (3) | (4) |
Other Current 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 | (378) | (374) |
Other Current Liabilities | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (14) | (27) |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (222) | (637) |
Derivative Liability, Counterparty netting offset | 113 | 476 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 72 | 96 |
Net derivative positions | (37) | (65) |
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 | (221) | (350) |
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) | (287) |
Other Long-Term Liabilities | Derivatives not 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 |
Derivative Instruments Carrying
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | $ 12,465 | $ 13,355 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (1,666) | (1,736) |
Current Portion of Borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | 0 | 997 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 0 | (3) |
Borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | 12,465 | 12,358 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (1,666) | $ (1,733) |
Adjustments Related to Fair Val
Adjustments Related to Fair Value Hedges Included in Net Interest Expense in Condensed Consolidated Statements of Income (Details) - Interest rate - Interest Expense - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on pay-floating swaps | $ 71 | $ (178) |
Gain (loss) on hedged borrowings | (71) | 178 |
Derivative, Gain (Loss) on Derivative, Net | $ (95) | $ 37 |
Derivative Instruments Effect o
Derivative Instruments Effect of Foreign Currency Cash Flow Hedges on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (502) | $ 79 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ 222 | $ 13 |
[1]Primarily recorded in revenue. |
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, 2022 | Jan. 01, 2022 | |
Costs and Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | $ 145 | $ (63) |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (213) | 33 |
Net gain (loss) | (68) | (30) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | (18) | 1 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 18 | 0 |
Net gain (loss) | 0 | 1 |
Income Taxes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | (88) | 8 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 70 | (8) |
Net gain (loss) | $ (18) | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Millions, $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Oct. 01, 2022 USD ($) | Oct. 01, 2022 CAD ($) | |
Derivative [Line Items] | ||||
Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months | $ 317 | |||
Hedging Period for Foreign Currency Transactions, Maximum | 4 years | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | $ 1,700 | $ 1,500 | ||
Derivatives designated as hedges | Interest rate | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 13,500 | 14,500 | ||
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 7,300 | 7,400 | ||
Derivatives designated as hedges | Currency Swap | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 1,000 | $ 1,300 | 900 | $ 1,300 |
Not Designated as Hedging Instrument | Foreign exchange | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 4,200 | 3,800 | ||
Not Designated as Hedging Instrument | Other Derivative | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400 | $ 400 |
Restructuring and Impairment _2
Restructuring and Impairment Charges - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | $ 69 | $ 0 |
Russia Business | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | $ 69 |