Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 30, 2017 | Jan. 31, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DIS | |
Entity Registrant Name | WALT DISNEY CO/ | |
Entity Central Index Key | 1,001,039 | |
Current Fiscal Year End Date | --09-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,503,675,479 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Services Revenue | $ 12,984 | $ 12,406 |
Products Revenue | 2,367 | 2,378 |
Total revenues | 15,351 | 14,784 |
Cost of services (exclusive of depreciation and amortization) | (7,334) | (7,020) |
Cost of products (exclusive of depreciation and amortization) | (1,403) | (1,386) |
Selling, general, administrative and other | (2,079) | (1,985) |
Depreciation and amortization | (742) | (687) |
Total costs and expenses | (11,558) | (11,078) |
Restructuring and impairment charges | (15) | 0 |
Other Income | 53 | 0 |
Interest expense, net | (129) | (99) |
Equity in the income of investees | 43 | 118 |
Income before income taxes | 3,745 | 3,725 |
Income taxes | 728 | (1,237) |
Net income | 4,473 | 2,488 |
Less: Net income attributable to noncontrolling interests | (50) | (9) |
Net income attributable to The Walt Disney Company (Disney) | $ 4,423 | $ 2,479 |
Earnings per share attributable to Disney: | ||
Diluted | $ 2.91 | $ 1.55 |
Basic | $ 2.93 | $ 1.56 |
Weighted average number of common and common equivalent shares outstanding: | ||
Diluted (shares) | 1,521 | 1,603 |
Basic (shares) | 1,512 | 1,592 |
Dividends declared per share | $ 0.84 | $ 0.78 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Net income | $ 4,473 | $ 2,488 |
Other Comprehensive Income/(Loss), Net of Tax: | ||
Market value adjustments for investments | (1) | (11) |
Market value adjustments for hedges | 18 | 280 |
Pension and postretirement medical plan adjustments | 61 | 46 |
Foreign currency translation and other | 87 | (290) |
Other comprehensive income | 165 | 25 |
Comprehensive income | 4,638 | 2,513 |
Net income attributable to noncontrolling interests, including redeemable noncontrolling interests | (50) | (9) |
Less: Other comprehensive (income)/loss attributable to noncontrolling interests | (41) | 99 |
Comprehensive income attributable to Disney | $ 4,547 | $ 2,603 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 |
Current assets | ||
Cash and Cash Equivalents | $ 4,677 | $ 4,017 |
Receivables | 9,886 | 8,633 |
Inventories | 1,307 | 1,373 |
Television costs and advances | 846 | 1,278 |
Other current assets | 558 | 588 |
Total current assets | 17,274 | 15,889 |
Film and television costs | 7,937 | 7,481 |
Investments | 3,206 | 3,202 |
Attractions, buildings and equipment | 54,617 | 54,043 |
Accumulated depreciation | (29,647) | (29,037) |
Parks, resorts and other property before projects in progress and land, Total | 24,970 | 25,006 |
Projects in progress | 2,355 | 2,145 |
Land | 1,259 | 1,255 |
Parks, resorts and other property | 28,584 | 28,406 |
Intangible assets, net | 6,930 | 6,995 |
Goodwill | 31,430 | 31,426 |
Other assets | 2,373 | 2,390 |
Total assets | 97,734 | 95,789 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 9,574 | 8,855 |
Current portion of borrowings | 6,009 | 6,172 |
Deferred revenue and other | 4,292 | 4,568 |
Total current liabilities | 19,875 | 19,595 |
Borrowings | 20,082 | 19,119 |
Deferred income taxes | 2,826 | 4,480 |
Other long-term liabilities | 6,726 | 6,443 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interest | 1,142 | 1,148 |
Equity | ||
Preferred stock, $0.01 par value, Authorized – 100 million shares, Issued – none | 0 | 0 |
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 2.9 billion shares | 36,254 | 36,248 |
Retained earnings | 75,763 | 72,606 |
Accumulated other comprehensive loss | (3,404) | (3,528) |
Stockholders' Equity subtotal before Treasury Stock, Total | 108,613 | 105,326 |
Treasury stock, at cost, 1.4 billion shares | (65,324) | (64,011) |
Total Disney Shareholders' equity | 43,289 | 41,315 |
Noncontrolling interests | 3,794 | 3,689 |
Total equity | 47,083 | 45,004 |
Total liabilities and equity | $ 97,734 | $ 95,789 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 30, 2017 | Sep. 30, 2017 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 100 | 100 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 2,900 | 2,900 |
Treasury stock, shares | 1,400 | 1,400 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,473 | $ 2,488 |
Depreciation and amortization | 742 | 687 |
Deferred income taxes | (1,726) | (76) |
Equity in the income of investees | (43) | (118) |
Cash distributions received from equity investees | 170 | 203 |
Net change in film and television costs and advances | 34 | 440 |
Equity-based compensation | 94 | 97 |
Other | 139 | 187 |
Changes in operating assets and liabilities: | ||
Receivables | (1,378) | (1,160) |
Inventories | 65 | 102 |
Other assets | (29) | 311 |
Accounts payable and other accrued liabilities | (1,160) | (2,763) |
Income taxes | 856 | 1,047 |
Cash provided by operations | 2,237 | 1,445 |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (981) | (1,040) |
Other | (62) | 5 |
Cash used in investing activities | (1,043) | (1,035) |
FINANCING ACTIVITIES | ||
Commercial paper borrowings, net | 1,140 | 732 |
Borrowings | 1,025 | 42 |
Reduction of borrowings | (1,330) | (194) |
Repurchases of common stock | (1,313) | (1,465) |
Proceeds from exercise of stock options | 50 | 65 |
Other | (156) | (167) |
Cash used in financing activities | (584) | (987) |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 21 | (112) |
Change in Cash, Cash Equivalents and Restricted Cash | 631 | (689) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 4,064 | 4,760 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 4,695 | $ 4,071 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Disney Shareholders | Non- controlling Interests | Total excluding redeemable noncontrolling interest [Member] | |
Beginning Balance at Oct. 01, 2016 | $ 43,265 | $ 4,058 | [1] | $ 47,323 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | $ 2,513 | 2,603 | (90) | [1] | 2,513 |
Equity compensation activity | 48 | 0 | 48 | ||
Dividends | (1,237) | 0 | (1,237) | ||
Common stock repurchases | (1,465) | 0 | (1,465) | ||
Distributions and other | (4) | (1) | [1] | (5) | |
Ending Balance at Dec. 31, 2016 | 43,210 | 3,967 | [1] | 47,177 | |
Beginning Balance at Sep. 30, 2017 | 45,004 | 41,315 | 3,689 | [1] | 45,004 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 4,638 | 4,547 | 97 | [1] | 4,644 |
Equity compensation activity | 6 | 0 | 6 | ||
Dividends | (1,266) | 0 | (1,266) | ||
Common stock repurchases | (1,313) | (1,313) | 0 | (1,313) | |
Distributions and other | 0 | 8 | [1] | 8 | |
Ending Balance at Dec. 30, 2017 | $ 47,083 | $ 43,289 | $ 3,794 | [1] | $ 47,083 |
[1] | Excludes redeemable noncontrolling interest |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Dec. 30, 2017 | |
Principles of Consolidation | Principles of Consolidation These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We believe that we have included all normal recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the quarter ended December 30, 2017 are not necessarily indicative of the results that may be expected for the year ending September 29, 2018 . Certain reclassifications have been made in the prior-year financial statements to conform to the current-year presentation. These financial statements should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K. The Company enters into relationships or investments with other entities that may be a variable interest entity (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (collectively 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. The terms “Company,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash | 3 Months Ended |
Dec. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statement of Cash Flows. December 30, September 30, Cash and cash equivalents $ 4,677 $ 4,017 Restricted cash included in: Other current assets 13 26 Other assets 5 21 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 4,695 $ 4,064 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 30, 2017 | |
Segment Information | Segment Information The operating segments reported below are the segments of the Company for which separate financial information is available and for which results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, other income, interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 30, December 31, Media Networks $ 50 $ 119 Parks and Resorts (7 ) (2 ) Consumer Products & Interactive Media — 1 Equity in the income of investees included in segment operating income $ 43 $ 118 Segment revenues and segment operating income are as follows: Quarter Ended December 30, December 31, Revenues (1) : Media Networks $ 6,243 $ 6,233 Parks and Resorts 5,154 4,555 Studio Entertainment 2,504 2,520 Consumer Products & Interactive Media 1,450 1,476 $ 15,351 $ 14,784 Segment operating income (1) : Media Networks $ 1,193 $ 1,362 Parks and Resorts 1,347 1,110 Studio Entertainment 829 842 Consumer Products & Interactive Media 617 642 $ 3,986 $ 3,956 (1) Studio Entertainment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income was $171 million and $181 million for the quarters ended December 30, 2017 and December 31, 2016 , respectively. A reconciliation of segment operating income to income before income taxes is as follows: Quarter Ended December 30, December 31, Segment operating income $ 3,986 $ 3,956 Corporate and unallocated shared expenses (150 ) (132 ) Restructuring and impairment charges (15 ) — Other income, net 53 — Interest expense, net (129 ) (99 ) Income before income taxes $ 3,745 $ 3,725 |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions BAMTech On September 25, 2017, the Company acquired an additional 42% interest in BAMTech, a streaming technology and content delivery business, from an affiliate of Major League Baseball (MLB) for $1.6 billion (paid in January 2018). The acquisition increased our interest from 33% to 75% , and as a result, we began consolidating BAMTech during the fourth quarter of fiscal 2017. The estimated acquisition date fair value of BAMTech is $3.9 billion . BAMTech’s noncontrolling interest holders, MLB and the National Hockey League (NHL), have the right to sell their shares to the Company in the future. MLB can generally sell their shares to the Company starting five years from and ending ten years after the September 25, 2017 acquisition date at the greater of fair value or a guaranteed floor value ( $563 million accreting at 8% annually for eight years). The NHL can sell their shares to the Company in fiscal 2020 for $300 million or in fiscal 2021 for $350 million . Accordingly, these interests are recorded as “Redeemable noncontrolling interests” in the Company’s Condensed Consolidated Balance Sheet. The Company has the right to purchase MLB’s interest in BAMTech starting five years from and ending ten years after the acquisition date at the greater of fair value or the guaranteed floor value. The Company has the right to acquire the NHL interest in fiscal years 2020 and 2021 for $500 million . The acquisition date fair value of the noncontrolling interests was estimated at $ 1.1 billion and calculated using an option pricing model. The MLB noncontrolling interest fair value generally reflects the net present value of MLB’s guaranteed floor value, while the NHL noncontrolling interest reflects their share of the $3.9 billion BAMTech value. As a result of the MLB and NHL sale rights, the noncontrolling interests will generally not be allocated BAMTech losses. Prospectively, the Company will record the noncontrolling interests at the greater of (i) their acquisition date fair value adjusted for their share (if any) of earnings, losses, or dividends or (ii) an accreted value from the date of the acquisition to the earliest redemption date. The accretion of the MLB interest to the earliest redemption value in five years after the acquisition date will be recorded using an interest method. As of December 30, 2017 , the redeemable noncontrolling interest subject to accretion would have had a redemption amount of $574 million if it were redeemed at that time. Adjustments to the carrying amount of redeemable noncontrolling interests will increase or decrease income available to Company shareholders through an adjustment to “Net income attributable to noncontrolling interests” on the Condensed Consolidated Statement of Income. The Company is negotiating to provide the noncontrolling interest holder in ESPN a portion of the Company’s share of the BAMTech direct-to-consumer sports business at a price that is consistent with the amount the Company invested. If such transaction is finalized, their investment would be recorded as a noncontrolling interest transaction when consummated. We have preliminarily allocated $3.6 billion of the purchase price to goodwill (approximately half of which is deductible for tax purposes) with the remainder primarily allocated to identifiable intangible assets. We are in the process of finalizing the valuation of the acquired assets, assumed liabilities, and noncontrolling interests. The revenue and costs of BAMTech included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 30, 2017 were both approximately $0.1 billion . Twenty-First Century Fox On December 14, 2017, the Company and Twenty-First Century Fox, Inc. (“21CF”) announced a definitive agreement (the “Merger Agreement”) for the Company to acquire 21CF. Prior to the acquisition, 21CF will separate certain of its businesses, most notably, the FOX Broadcasting network and stations, FOX News Channel, FOX Business Network, FS1, FS2 and Big Ten Network into a newly listed company (“New Fox”) that will be spun off to 21CF shareholders. Prior to the spin-off, New Fox will pay a dividend to 21CF in the amount of $8.5 billion . Following the spin-off, the significant remaining businesses will include the 21CF film and television studios, certain cable networks (including FX and National Geographic) and 21CF’s international TV businesses. Under the terms of the Merger Agreement, shareholders of 21CF will receive 0.2745 of a Company share for each 21CF share they hold subject to a two-way adjustment based on an estimate at closing of certain tax liabilities arising from the spin-off and certain other transactions contemplated by the Merger Agreement. In the event that the final estimate of tax liabilities is lower than the estimate used to set the exchange ratio, the first $2.0 billion of that adjustment will be made by a net reduction in the amount of cash dividend to 21CF from New Fox. Based upon 21CF shares outstanding as of September 30, 2017, the Company would be required to issue approximately 515 million new shares, a value of approximately $52.4 billion at the time the exchange ratio was agreed. The value at which the Company will record the equity consideration will be based upon the stock price on the date the transaction closes. In addition, the Company will assume 21CF’s net debt, which was approximately $13.7 billion as of September 30, 2017 (approximately $20.0 billion of debt less approximately $6.3 billion in cash). The Boards of Directors of the Company and 21CF have approved the transaction, which is also subject to approval by 21CF and the Company’s shareholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act, a number of other non-United States merger and other regulatory reviews, the receipt of a tax ruling from the Australian Taxation Office and certain tax opinions with respect to the treatment of the transaction under U.S. and Australian tax laws, and other customary closing conditions. Under the terms of the Merger Agreement, Disney will pay 21CF $2.5 billion if the merger is not consummated under certain circumstances relating to the failure to obtain approvals, or if there is a final, non-appealable order preventing the transaction, in each case, relating to antitrust laws, communications laws or foreign regulatory laws. If the Merger Agreement is terminated under certain other circumstances relating to changes in board recommendations and/or alternative transactions, the Company or 21CF may be required to pay the other party approximately $1.5 billion . Goodwill The changes in the carrying amount of goodwill for the quarter ended December 30, 2017 are as follows: Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Unallocated (1) Total Balance at Sept. 30, 2017 $ 16,325 $ 291 $ 6,817 $ 4,393 $ 3,600 $ 31,426 Acquisitions — — — — — — Dispositions — — — — — — Other, net 7 — 7 2 (12 ) 4 Balance at Dec. 30, 2017 $ 16,332 $ 291 $ 6,824 $ 4,395 $ 3,588 $ 31,430 (1) Goodwill will be allocated to the segments once the BAMTech purchase price allocation is finalized. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 30, 2017 | |
Borrowings | Borrowings During the quarter ended December 30, 2017 , the Company’s borrowing activity was as follows: September 30, Borrowings Payments Other Activity December 30, Commercial paper with original maturities less than three months (1) $ 1,151 $ 2,047 $ — $ — $ 3,198 Commercial paper with original maturities greater than three months 1,621 712 (1,619 ) (1 ) 713 U.S. and European medium-term notes 19,721 — (1,300 ) 6 18,427 BAMTech acquisition payable 1,581 — — — 1,581 Asia Theme Parks borrowings 1,145 — — 30 1,175 Foreign currency denominated debt and other (2) 72 1,025 (30 ) (70 ) 997 Total $ 25,291 $ 3,784 $ (2,949 ) $ (35 ) $ 26,091 (1) Borrowings and payments are reported net. (2) The other activity is primarily market value adjustments for debt with qualifying hedges. The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows: Committed Capacity Capacity Used Unused Capacity Facility expiring March 2018 $ 2,500 $ — $ 2,500 Facility expiring March 2019 2,250 — 2,250 Facility expiring March 2021 2,250 — 2,250 Total $ 7,000 $ — $ 7,000 All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.23% to 1.63%. The Company also has the ability to issue up to $800 million of letters of credit under the facility expiring in March 2019, which if utilized, reduces available borrowings under this facility. As of December 30, 2017 , the Company has $190 million of outstanding letters of credit, of which none were issued under this facility. The facilities specifically exclude certain entities, including the Asia Theme Parks and Disneyland Paris, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on December 30, 2017 by a significant margin. Cruise Ship Credit Facilities In October 2016 and December 2017 the Company entered into credit facilities to finance three new cruise ships, which are expected to be delivered in 2021, 2022 and 2023. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. If utilized, the interest rates will be fixed at 3.48% , 3.72% 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 and investment income and interest expense are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended December 30, December 31, Interest expense $ (146 ) $ (121 ) Interest and investment income 17 22 Interest expense, net $ (129 ) $ (99 ) Interest and investment income includes gains and losses on the sale of publicly and non-publicly traded investments, investment impairments and interest earned on cash and cash equivalents and certain receivables. |
International Theme Parks
International Theme Parks | 3 Months Ended |
Dec. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
International Theme Parks | International Theme Parks The Company has a 47% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort (together, the Asia Theme Parks with Disneyland Paris are collectively referred to as the International Theme Parks). The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 30, 2017 and September 30, 2017 : December 30, 2017 September 30, 2017 Cash and cash equivalents $ 844 $ 843 Other current assets 397 376 Total current assets 1,241 1,219 Parks, resorts and other property 9,449 9,403 Other assets 110 111 Total assets (1) $ 10,800 $ 10,733 Current liabilities $ 1,061 $ 1,163 Borrowings - long-term 1,175 1,145 Other long-term liabilities 390 371 Total liabilities (1) $ 2,626 $ 2,679 (1) At December 30, 2017 and September 30, 2017 , total assets of the Asia Theme Parks were $8.1 billion and primarily consist of parks, resorts and other property of $7.3 billion . At December 30, 2017 and September 30, 2017 , total liabilities of the Asia Theme Parks were $2.1 billion . The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 30, 2017 : December 30, 2017 Revenues $ 905 Costs and expenses (870 ) Equity in the loss of investees (7 ) Asia Theme Parks’ royalty and management fees of $40 million for the quarter ended December 30, 2017 are eliminated in consolidation but are considered in calculating earnings allocated to noncontrolling interests. International Theme Parks’ cash flows for the quarter ended December 30, 2017 included in the Company’s Condensed Consolidated Statement of Cash Flows were $167 million generated from operating activities, $158 million used in investing activities and $8 million generated from financing activities. The majority of cash flows used in investing activities were for the Asia Theme Parks. Hong Kong Disneyland Resort The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have 53% and 47% equity interests in Hong Kong Disneyland Resort, respectively. As part of financing the construction of a third hotel, which opened April 30, 2017, the Company and HKSAR have provided loans with outstanding balances of $139 million and $93 million , respectively, which bear interest at a rate of three month HIBOR plus 2% and mature in September 2025. The Company’s loan is eliminated upon 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% and matures in December 2023. There is no outstanding balance under the line of credit at December 30, 2017 . In August 2017, the Company and HKSAR entered into an agreement for a multi-year expansion of Hong Kong Disneyland that will add a number of new guest offerings, including two new themed areas, by 2023. Under the terms of the agreement, the HK $10.9 billion ( $1.4 billion ) expansion will be funded by equity contributions made by the Company and HKSAR on an equal basis. 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, is responsible for operating Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with loans totaling $789 million , bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. In addition, the Company has an outstanding balance of $322 million due from Shanghai Disney Resort related to development costs, pre-opening expense and royalties and management fees. The Company has also provided Shanghai Disney Resort with a $157 million line of credit bearing interest at 8% . There is no outstanding balance under the line of credit at December 30, 2017 . These balances are eliminated upon consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 6.8 billion yuan (approximately $1.0 billion ), bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $209 million ) line of credit bearing interest at 8% . There is no outstanding balance under the line of credit at December 30, 2017 . |
Income Taxes Income Tax
Income Taxes Income Tax | 3 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes On December 22, 2017, new federal income tax legislation, the “Tax Cuts and Jobs Act” (Tax Act), was signed into law. The most significant impacts on the Company are as follows: • Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from 35.0% to 21.0% . Because of our fiscal year end, the Company’s fiscal 2018 statutory federal tax rate is 24.5% , which is applicable to each quarter of the fiscal year, and will be 21.0% thereafter. • The Company remeasured its existing U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes will be realized (either 24.5% if in 2018 or 21.0% thereafter). The Company recognized a one-time benefit from the deferred tax remeasurement of approximately $1.9 billion in the first quarter of fiscal 2018. • A one-time tax is due on certain accumulated foreign earnings (Deemed Repatriation Tax), which is payable over eight years. The tax rate is generally 15.5% on the portion of the earnings held in cash and cash equivalents and 8% on the remainder. The Company recognized a charge for the Deemed Repatriation Tax of approximately $0.3 billion in the first quarter of fiscal 2018. Generally there will no longer be a U.S. federal income tax cost arising from the repatriation of foreign earnings. • The Company will be eligible to claim an immediate deduction for investments in qualified fixed assets and film and television productions placed in service in fiscal 2018 through fiscal 2022. This provision phases out through fiscal 2027. • The domestic production activity deduction was eliminated effective for the Company’s fiscal 2019. • Certain foreign derived income will be taxed in the U.S. at an effective rate of approximately 13% (which increases to approximately 16% in 2025) rather than the general statutory rate of 21% . This will be effective for the Company in fiscal 2019. • Certain foreign earnings will be taxed at a minimum effective rate of approximately 13% . This will be effective for the Company in fiscal 2019. The amounts that the Company has recorded are provisional estimates of the impact the Tax Act will have on the Company’s financial statements in fiscal 2018. Additional information and analysis is required to finalize the impact that the Tax Act will have on our full year financial results including the following: • Filing the fiscal 2017 U.S. federal income tax return, which could impact our estimated foreign earnings and deferred income tax assets and liabilities, • Finalizing the determination of foreign cash and cash equivalents at the end of fiscal 2018, which is required to calculate the Deemed Repatriation Tax, and • Receiving additional information with respect to the income tax attributes of our equity method investments. Although the Company does not anticipate material adjustments to the provisional amounts, final results could vary from these provisional amounts. Additionally, potential further guidance may be forthcoming from the Financial Accounting Standards Board and the Securities and Exchange Commission, as well as regulations, interpretations and rulings from federal and state tax agencies, which could result in additional impacts. During the quarter ended December 30, 2017, the Company increased its gross unrecognized tax benefits by $0.1 billion to $0.9 billion . In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to resolutions of open tax matters. These resolutions would reduce our unrecognized tax benefits by approximately $258 million , of which $100 million would reduce our income tax expense and effective tax rate if recognized. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 3 Months Ended |
Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Programs | Pension and Other Benefit Programs The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 30, 2017 December 31, 2016 December 30, 2017 December 31, 2016 Service costs $ 88 $ 91 $ 3 $ 3 Interest costs 123 112 15 14 Expected return on plan assets (225 ) (219 ) (13 ) (12 ) Amortization of prior-year service costs 3 3 — — Recognized net actuarial loss 87 101 3 4 Net periodic benefit cost $ 76 $ 88 $ 8 $ 9 During the quarter ended December 30, 2017 , the Company did not make any material contributions to its pension and postretirement medical plans and currently does not expect to make any material contributions to its pension and postretirement medical plans during the remainder of fiscal 2018 . However, final funding amounts for fiscal 2018 will be assessed based on our January 1, 2018 funding actuarial valuation, which will be available by the end of the fourth quarter of fiscal 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,512 1,592 Weighted average dilutive impact of Awards 9 11 Weighted average number of common and common equivalent shares outstanding (diluted) 1,521 1,603 Awards excluded from diluted earnings per share 16 16 |
Equity
Equity | 3 Months Ended |
Dec. 30, 2017 | |
Equity [Abstract] | |
Equity | Equity The Company paid the following dividends in fiscal 2018 and 2017 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half 2017 $0.78 $1.2 billion Fourth Quarter of Fiscal 2017 First Half 2017 $0.78 $1.2 billion Second Quarter of Fiscal 2017 Second Half 2016 During the quarter ended December 30, 2017 , the Company repurchased 13 million shares of its common stock for $1.3 billion . As of December 30, 2017 , the Company had remaining authorization in place to repurchase approximately 179 million additional shares. The repurchase program does not have an expiration date. 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: Unrecognized Foreign AOCI Market Value Adjustments AOCI, before tax Investments Cash Flow Hedges Balance at September 30, 2017 $ 15 $ (108 ) $ (4,906 ) $ (523 ) $ (5,522 ) Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period (1 ) 19 — 62 80 Reclassifications of realized net (gains) losses to net income — 20 96 — 116 Balance at December 30, 2017 $ 14 $ (69 ) $ (4,810 ) $ (461 ) $ (5,326 ) Balance at October 1, 2016 $ 44 $ (38 ) $ (5,859 ) $ (521 ) $ (6,374 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (18 ) 506 — (141 ) 347 Reclassifications of realized net (gains) losses to net income — (70 ) 108 — 38 Balance at December 31, 2016 $ 26 $ 398 $ (5,751 ) $ (662 ) $ (5,989 ) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Balance at September 30, 2017 $ (7 ) $ 46 $ 1,839 $ 116 $ 1,994 Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period — (13 ) — (16 ) (29 ) Reclassifications of realized net (gains) losses to net income — (8 ) (35 ) — (43 ) Balance at December 30, 2017 $ (7 ) $ 25 $ 1,804 $ 100 $ 1,922 Balance at October 1, 2016 $ (18 ) $ 13 $ 2,208 $ 192 $ 2,395 Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period 7 (182 ) (22 ) (50 ) (247 ) Reclassifications of realized net (gains) losses to net income — 26 (40 ) — (14 ) Balance at December 31, 2016 $ (11 ) $ (143 ) $ 2,146 $ 142 $ 2,134 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Balance at September 30, 2017 $ 8 $ (62 ) $ (3,067 ) $ (407 ) $ (3,528 ) Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period (1 ) 6 — 46 51 Reclassifications of realized net (gains) losses to net income — 12 61 — 73 Balance at December 30, 2017 $ 7 $ (44 ) $ (3,006 ) $ (361 ) $ (3,404 ) Balance at October 1, 2016 $ 26 $ (25 ) $ (3,651 ) $ (329 ) $ (3,979 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (11 ) 324 (22 ) (191 ) 100 Reclassifications of realized net (gains) losses to net income — (44 ) 68 — 24 Balance at December 31, 2016 $ 15 $ 255 $ (3,605 ) $ (520 ) $ (3,855 ) Details about AOCI components reclassified to net income are as follows: Gains/(losses) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended December 30, December 31, Cash flow hedges Primarily revenue $ (20 ) $ 70 Estimated tax Income taxes 8 (26 ) (12 ) 44 Pension and postretirement medical expense Costs and expenses (96 ) (108 ) Estimated tax Income taxes 35 40 (61 ) (68 ) Total reclassifications for the period $ (73 ) $ (24 ) At December 30, 2017 and September 30, 2017 , unrealized gains and losses on available-for-sale investments were not material. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options, stock appreciation rights and restricted stock units (RSUs) is as follows: Quarter Ended December 30, December 31, Stock options $ 23 $ 20 RSUs 71 77 Total equity-based compensation expense (1) $ 94 $ 97 Equity-based compensation expense capitalized during the period $ 19 $ 21 (1) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $222 million and $858 million , respectively, as of December 30, 2017 . The weighted average grant date fair values of options granted during the quarter ended December 30, 2017 and December 31, 2016 were $28.01 and $25.78 , respectively. During the quarter ended December 30, 2017 , the Company made equity compensation grants consisting of 4.0 million stock options and 4.1 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 30, 2017 | |
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 or codefendant 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. Contractual Guarantees The Company has guaranteed bond issuances by the Anaheim Public Authority that were used by the City of Anaheim to finance construction of infrastructure and a public parking facility adjacent to the Disneyland Resort. Revenues from sales, occupancy and property taxes from the Disneyland Resort and non-Disney hotels are used by the City of Anaheim to repay the bonds. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of December 30, 2017 , the remaining debt service obligation guaranteed by the Company was $306 million , of which $48 million was principal. To the extent that tax revenues exceed the debt service payments in subsequent periods, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. The Company has guaranteed $113 million of Hulu LLC’s $338 million term loan, which expires in August 2022, and is committed to make a capital contribution of approximately $450 million to Hulu in calendar 2018. Hulu is a joint venture in which the Company has a 30% ownership interest. Long-Term Receivables and the Allowance for Credit Losses The Company has accounts receivable with original maturities greater than one year related to the sale of television program rights and vacation ownership units. Allowances for credit losses are established against these receivables as necessary. The Company estimates the allowance for credit losses related to receivables from the sale of television programs based upon a number of factors, including historical experience and the financial condition of individual companies with which we do business. The balance of television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $0.8 billion as of December 30, 2017 . The activity in the current period related to the allowance for credit losses was not material. The Company estimates the allowance for credit losses related to receivables from sales of its vacation ownership units based primarily on historical collection experience. Estimates of uncollectible amounts also consider the economic environment and the age of receivables. The balance of mortgage receivables recorded in other non-current assets, net of a related allowance for credit losses of approximately 4% , was approximately $0.7 billion as of December 30, 2017 . The activity in the current period related to the allowance for credit losses was not material. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 30, 2017 | |
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 of the fair value hierarchy: 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 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments $ 32 $ — $ — $ 32 Derivatives Foreign exchange — 416 — 416 Other — 13 — 13 Liabilities Derivatives Interest rate — (188 ) — (188 ) Foreign exchange — (459 ) — (459 ) Total recorded at fair value $ 32 $ (218 ) $ — $ (186 ) Fair value of borrowings $ — $ 23,935 $ 2,793 $ 26,728 Fair Value Measurement at September 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments $ 36 $ — $ — $ 36 Derivatives Interest rate — 10 — 10 Foreign exchange — 403 — 403 Other — 8 — 8 Liabilities Derivatives Interest rate — (122 ) — (122 ) Foreign exchange — (427 ) — (427 ) Total recorded at fair value $ 36 $ (128 ) $ — $ (92 ) Fair value of borrowings $ — $ 23,110 $ 2,764 $ 25,874 The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, did not have a material impact on derivative fair value estimates. Level 2 borrowings, which include commercial paper and U.S. medium-term notes, are valued based on quoted prices for similar instruments in active markets. Level 3 borrowings include the Asia Theme Park borrowings and the Company’s other foreign currency denominated borrowings, and generally are valued based on the current borrowing cost and credit risk of the Asia Theme Parks and the Company, respectively, as well as historical market transactions and prevailing market interest rates. The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 30, 2017 | |
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 30, 2017 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 152 $ 237 $ (187 ) $ (184 ) Interest rate — — (161 ) — Other 11 2 — — Derivatives not designated as hedges Foreign exchange 24 3 (64 ) (25 ) Interest rate — — — (27 ) Gross fair value of derivatives 187 242 (412 ) (236 ) Counterparty netting (141 ) (238 ) 204 175 Cash collateral (received)/paid (12 ) (1 ) 35 — Net derivative positions $ 34 $ 3 $ (173 ) $ (61 ) As of September 30, 2017 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 175 $ 190 $ (192 ) $ (170 ) Interest rate — 10 (106 ) — Other 6 2 — — Derivatives not designated as hedges Foreign exchange 38 — (46 ) (19 ) Interest rate — — — (16 ) Gross fair value of derivatives 219 202 (344 ) (205 ) Counterparty netting (142 ) (190 ) 188 144 Cash collateral (received)/paid (20 ) (7 ) 19 — Net derivative positions $ 57 $ 5 $ (137 ) $ (61 ) 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. As of December 30, 2017 and September 30, 2017 , the total notional amount of the Company’s pay-floating interest rate swaps was $7.8 billion and $8.2 billion , respectively. The following table summarizes adjustments related to fair value hedges included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income. Quarter Ended December 30, December 31, Gain (loss) on interest rate swaps $ (64 ) $ (232 ) Gain (loss) on hedged borrowings 64 232 In addition, the Company realized net benefits of $7 million and $12 million for the quarters ended December 30, 2017 and December 31, 2016 , respectively, in “ Interest expense, net ” related to pay-floating interest rate swaps. The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in AOCI and recognized in interest expense as the interest payments occur. The Company did not have pay-fixed interest rate swaps that were designated as cash flow hedges of interest payments at December 30, 2017 or at September 30, 2017 and gains and losses related to pay-fixed swaps recognized in earnings for the quarters ended December 30, 2017 and December 31, 2016 were not material. To facilitate its interest rate risk management activities, the Company sold an option in November 2016 to enter into a future pay-floating interest rate swap indexed to LIBOR for $0.5 billion in future borrowings. The fair value of this contract as of December 30, 2017 was not material. In October 2017, the Company sold an additional option for $0.5 billion in future borrowings with the same terms. The options are not designated as hedges and do not qualify for hedge accounting; accordingly, changes in their fair value are recorded in earnings. Foreign Exchange Risk Management The Company transacts business globally and is subject to risks associated with changing foreign currency exchange rates. The Company’s objective is to reduce earnings and cash flow fluctuations associated with foreign currency exchange rate changes, enabling management to focus on core business issues and challenges. The Company enters into option and forward contracts that change in value as foreign currency exchange rates change to protect the value of its existing foreign currency assets, liabilities, firm commitments and forecasted but not firmly committed foreign currency transactions. In accordance with policy, the Company hedges its forecasted foreign currency transactions for periods generally not to exceed four years within an established minimum and maximum range of annual exposure. The gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related forecasted transaction, asset, liability or firm commitment. The principal currencies hedged are the euro, Japanese yen, Canadian dollar and British pound. Cross-currency swaps are used to effectively convert foreign currency denominated borrowings into U.S. dollar denominated borrowings. The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions. As of December 30, 2017 and September 30, 2017 , the notional amounts of the Company’s net foreign exchange cash flow hedges were $6.7 billion and $6.3 billion , respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Gains and losses recognized related to ineffectiveness for the quarter s ended December 30, 2017 and December 31, 2016 were not material. Net deferred losses recorded in AOCI for contracts that will mature in the next twelve months totaled $ 64 million . Foreign exchange risk management contracts with respect to foreign currency denominated assets and liabilities are not designated as hedges and do not qualify for hedge accounting. The notional amounts of these foreign exchange contracts at December 30, 2017 and September 30, 2017 were $2.9 billion and $3.6 billion , respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter s ended December 30, 2017 and December 31, 2016 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income: Costs and Expenses Interest expense, net Income Tax expense Quarter Ended: December 30, December 31, December 30, December 31, December 30, December 31, Net gains (losses) on foreign currency denominated assets and liabilities $ 17 $ (233 ) $ 3 $ 7 $ 3 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (14 ) 221 (1 ) (7 ) (1 ) (31 ) Net gains (losses) $ 3 $ (12 ) $ 2 $ — $ 2 $ (8 ) 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 30, 2017 and September 30, 2017 and related gains or losses recognized in earnings for the quarter s ended December 30, 2017 and December 31, 2016 were not material. Risk Management – Other Derivatives Not Designated as Hedges The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The notional amount and fair value of these contracts at December 30, 2017 and September 30, 2017 were not material. The related gains or losses recognized in earnings for the quarter s ended December 30, 2017 and December 31, 2016 were not material. 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 $269 million and $217 million on December 30, 2017 and September 30, 2017 , respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment Charges and Other Income The Company recorded $15 million of restructuring and impairment charges in the current quarter primarily consisting of severance costs. The Company recorded a $53 million gain in the current quarter on the sale of property rights. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Targeted Improvements to Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (FASB) issued guidance to improve certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. We do not expect the adoption of the new standard will have a material impact on our consolidated financial statements as our historical hedging ineffectiveness has been immaterial. The new guidance is effective beginning with the Company’s 2020 fiscal year (with early adoption permitted in any interim period) and requires prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for existing hedging relationships. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued guidance that requires presentation of all components of net periodic pension and postretirement benefit costs, other than service costs, in an income statement line item outside of a subtotal of income from operations. The service cost component will continue to be presented in the same line items as other employee compensation costs. In addition, the guidance allows only service costs to be eligible for capitalization, for example, as part of a self-constructed fixed asset or a film production. The new guidance is effective beginning with the first quarter of the Company’s 2019 fiscal year. The guidance is required to be adopted retrospectively with respect to income statement presentation and prospectively for the capitalization requirement. We do not expect the change in capitalization requirement to have a material impact on our financial statements. See Note 8 of this filing and Note 10 to the Consolidated Financial Statements in the 2017 Annual Report on Form 10-K for the amount of each component of net periodic pension and postretirement benefit costs we have reported historically. These amounts of net periodic pension and postretirement benefit costs are not necessarily indicative of future amounts that may arise in years following implementation of the new accounting pronouncement. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance that requires the income tax consequences of an intra-entity transfer of an asset other than inventory to be recognized when the transfer occurs instead of when the asset is sold to an outside party. The new guidance is effective beginning with the first quarter of the Company’s 2019 fiscal year. The guidance requires prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. We do not expect the adoption to have a material impact on our financial statements. We currently estimate that we will record approximately $0.1 billion as an increase to retained earnings upon adoption. Our assessment may change if we enter into new transactions between now and the date of adoption. Leases In February 2016, the FASB issued a new lease accounting standard, which requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. As of September 30, 2017, the Company had an estimated $3.3 billion in undiscounted future minimum lease commitments. The Company is currently assessing the impact of the new guidance on its financial statements. The guidance is required to be adopted retrospectively, and is effective beginning in the first quarter of the Company’s 2020 fiscal year (with early adoption permitted). The FASB has recently proposed guidance that would allow adoption of the standard as of the effective date without restating prior periods. Revenue from Contracts with Customers In May 2014, the FASB issued guidance that replaces the existing accounting standards for revenue recognition with a single comprehensive five-step model, eliminating industry-specific accounting rules. The core principle is to recognize revenue upon the transfer of control of goods or services to customers at an amount that reflects the consideration expected to be received. Since its issuance, the FASB has amended several aspects of the new guidance, including provisions that address revenue recognition associated with the licensing of intellectual property (IP). The new guidance, including the amendments, is effective at the beginning of the Company’s 2019 fiscal year. We have reviewed our significant revenue streams and identified required changes to our revenue recognition policies. Based on our existing customer contracts and relationships, we do not expect the implementation of the new guidance will have a material impact on our consolidated financial statements upon adoption. The Company’s evaluation of the impact could change if we enter into new revenue arrangements in the future or interpretations of the new guidance further evolve. While not expected to be material, the more significant changes to the Company’s revenue recognition policies are in the following areas: • For television and film content licensing agreements with multiple availability windows with the same licensee, the Company will defer more revenues to future windows than is currently deferred. • For licenses of character images, brands and trademarks subject to minimum guaranteed license fees, we currently recognize the difference between the minimum guaranteed amount and actual royalties earned from licensee merchandise sales (“shortfalls”) at the end of the contract period. Under the new guidance, projected guarantee shortfalls will be recognized straight-line over the remaining license period once an expected shortfall is identified. • For licenses that include multiple television and film titles subject to minimum guaranteed license fees that are recoupable against the licensee’s aggregate underlying sales from all titles, the Company will allocate the minimum guaranteed license fee to each title and recognize the allocated license fee as revenue when the title is made available to the customer. License fees in excess of the allocated by-title minimum guarantee are deferred until the aggregate contractual minimum guarantee has been exceeded and thereafter recognized as earned based on the licensee’s underlying sales. Under current guidance, an upfront allocation of the minimum guarantee is not required as license fees are recognized as earned based on the licensee’s underlying sales with any shortfalls recognized at the end of the contract period. • For renewals or extensions of license agreements for television and film content, we will recognize revenue when the licensed content becomes available under the renewal or extension, instead of when the agreement is renewed or extended. We are continuing our assessment of potential changes to our disclosures and internal controls under the new guidance. The guidance may be adopted either by restating all years presented in the Company’s financial statements for fiscal 2019, 2018 and 2017 (full retrospective method) or by recording the impact of adoption as an adjustment to retained earnings at the beginning of fiscal 2019 (modified retrospective method). The Company currently expects to adopt the standard using the modified retrospective method. The Company’s equity method investees are considered private companies for purposes of applying the new guidance and are not required to adopt the new standard until fiscal years beginning after December 15, 2018. We have not yet assessed the impact of the new rules on our equity investees. |
Cash and Cash Equivalents and24
Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statement of Cash Flows. December 30, September 30, Cash and cash equivalents $ 4,677 $ 4,017 Restricted cash included in: Other current assets 13 26 Other assets 5 21 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 4,695 $ 4,064 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Equity In Income of Investees By Segment | Equity in the income of investees is included in segment operating income as follows: Quarter Ended December 30, December 31, Media Networks $ 50 $ 119 Parks and Resorts (7 ) (2 ) Consumer Products & Interactive Media — 1 Equity in the income of investees included in segment operating income $ 43 $ 118 |
Financial Information by Operating Segments | Segment revenues and segment operating income are as follows: Quarter Ended December 30, December 31, Revenues (1) : Media Networks $ 6,243 $ 6,233 Parks and Resorts 5,154 4,555 Studio Entertainment 2,504 2,520 Consumer Products & Interactive Media 1,450 1,476 $ 15,351 $ 14,784 Segment operating income (1) : Media Networks $ 1,193 $ 1,362 Parks and Resorts 1,347 1,110 Studio Entertainment 829 842 Consumer Products & Interactive Media 617 642 $ 3,986 $ 3,956 (1) Studio Entertainment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income was $171 million and $181 million for the quarters ended December 30, 2017 and December 31, 2016 , respectively |
Reconciliation of Segment Operating Income to Income before Income Taxes | A reconciliation of segment operating income to income before income taxes is as follows: Quarter Ended December 30, December 31, Segment operating income $ 3,986 $ 3,956 Corporate and unallocated shared expenses (150 ) (132 ) Restructuring and impairment charges (15 ) — Other income, net 53 — Interest expense, net (129 ) (99 ) Income before income taxes $ 3,745 $ 3,725 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the quarter ended December 30, 2017 are as follows: Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Unallocated (1) Total Balance at Sept. 30, 2017 $ 16,325 $ 291 $ 6,817 $ 4,393 $ 3,600 $ 31,426 Acquisitions — — — — — — Dispositions — — — — — — Other, net 7 — 7 2 (12 ) 4 Balance at Dec. 30, 2017 $ 16,332 $ 291 $ 6,824 $ 4,395 $ 3,588 $ 31,430 (1) Goodwill will be allocated to the segments once the BAMTech purchase price allocation is finalized. |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Borrowing Activity | During the quarter ended December 30, 2017 , the Company’s borrowing activity was as follows: September 30, Borrowings Payments Other Activity December 30, Commercial paper with original maturities less than three months (1) $ 1,151 $ 2,047 $ — $ — $ 3,198 Commercial paper with original maturities greater than three months 1,621 712 (1,619 ) (1 ) 713 U.S. and European medium-term notes 19,721 — (1,300 ) 6 18,427 BAMTech acquisition payable 1,581 — — — 1,581 Asia Theme Parks borrowings 1,145 — — 30 1,175 Foreign currency denominated debt and other (2) 72 1,025 (30 ) (70 ) 997 Total $ 25,291 $ 3,784 $ (2,949 ) $ (35 ) $ 26,091 (1) Borrowings and payments are reported net. (2) The other activity is primarily market value adjustments for debt with qualifying hedges. |
Line of Credit Facilities | The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows: Committed Capacity Capacity Used Unused Capacity Facility expiring March 2018 $ 2,500 $ — $ 2,500 Facility expiring March 2019 2,250 — 2,250 Facility expiring March 2021 2,250 — 2,250 Total $ 7,000 $ — $ 7,000 |
Interest Expense, net | Interest and investment income and interest expense are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended December 30, December 31, Interest expense $ (146 ) $ (121 ) Interest and investment income 17 22 Interest expense, net $ (129 ) $ (99 ) |
International Theme Parks (Tabl
International Theme Parks (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Consolidating Balance Sheets | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 30, 2017 and September 30, 2017 : December 30, 2017 September 30, 2017 Cash and cash equivalents $ 844 $ 843 Other current assets 397 376 Total current assets 1,241 1,219 Parks, resorts and other property 9,449 9,403 Other assets 110 111 Total assets (1) $ 10,800 $ 10,733 Current liabilities $ 1,061 $ 1,163 Borrowings - long-term 1,175 1,145 Other long-term liabilities 390 371 Total liabilities (1) $ 2,626 $ 2,679 (1) At December 30, 2017 and September 30, 2017 , total assets of the Asia Theme Parks were $8.1 billion and primarily consist of parks, resorts and other property of $7.3 billion . At December 30, 2017 and September 30, 2017 , total liabilities of the Asia Theme Parks were $2.1 billion . |
Consolidating Income Statements | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 30, 2017 : December 30, 2017 Revenues $ 905 Costs and expenses (870 ) Equity in the loss of investees (7 ) |
Pension and Other Benefit Pro29
Pension and Other Benefit Programs (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended December 30, 2017 December 31, 2016 December 30, 2017 December 31, 2016 Service costs $ 88 $ 91 $ 3 $ 3 Interest costs 123 112 15 14 Expected return on plan assets (225 ) (219 ) (13 ) (12 ) Amortization of prior-year service costs 3 3 — — Recognized net actuarial loss 87 101 3 4 Net periodic benefit cost $ 76 $ 88 $ 8 $ 9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,512 1,592 Weighted average dilutive impact of Awards 9 11 Weighted average number of common and common equivalent shares outstanding (diluted) 1,521 1,603 Awards excluded from diluted earnings per share 16 16 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Equity [Abstract] | |
Dividends Declared | The Company paid the following dividends in fiscal 2018 and 2017 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half 2017 $0.78 $1.2 billion Fourth Quarter of Fiscal 2017 First Half 2017 $0.78 $1.2 billion Second Quarter of Fiscal 2017 Second Half 2016 |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | 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: Unrecognized Foreign AOCI Market Value Adjustments AOCI, before tax Investments Cash Flow Hedges Balance at September 30, 2017 $ 15 $ (108 ) $ (4,906 ) $ (523 ) $ (5,522 ) Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period (1 ) 19 — 62 80 Reclassifications of realized net (gains) losses to net income — 20 96 — 116 Balance at December 30, 2017 $ 14 $ (69 ) $ (4,810 ) $ (461 ) $ (5,326 ) Balance at October 1, 2016 $ 44 $ (38 ) $ (5,859 ) $ (521 ) $ (6,374 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (18 ) 506 — (141 ) 347 Reclassifications of realized net (gains) losses to net income — (70 ) 108 — 38 Balance at December 31, 2016 $ 26 $ 398 $ (5,751 ) $ (662 ) $ (5,989 ) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Balance at September 30, 2017 $ (7 ) $ 46 $ 1,839 $ 116 $ 1,994 Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period — (13 ) — (16 ) (29 ) Reclassifications of realized net (gains) losses to net income — (8 ) (35 ) — (43 ) Balance at December 30, 2017 $ (7 ) $ 25 $ 1,804 $ 100 $ 1,922 Balance at October 1, 2016 $ (18 ) $ 13 $ 2,208 $ 192 $ 2,395 Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period 7 (182 ) (22 ) (50 ) (247 ) Reclassifications of realized net (gains) losses to net income — 26 (40 ) — (14 ) Balance at December 31, 2016 $ (11 ) $ (143 ) $ 2,146 $ 142 $ 2,134 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Balance at September 30, 2017 $ 8 $ (62 ) $ (3,067 ) $ (407 ) $ (3,528 ) Quarter Ended December 30, 2017: Unrealized gains (losses) arising during the period (1 ) 6 — 46 51 Reclassifications of realized net (gains) losses to net income — 12 61 — 73 Balance at December 30, 2017 $ 7 $ (44 ) $ (3,006 ) $ (361 ) $ (3,404 ) Balance at October 1, 2016 $ 26 $ (25 ) $ (3,651 ) $ (329 ) $ (3,979 ) Quarter Ended December 31, 2016: Unrealized gains (losses) arising during the period (11 ) 324 (22 ) (191 ) 100 Reclassifications of realized net (gains) losses to net income — (44 ) 68 — 24 Balance at December 31, 2016 $ 15 $ 255 $ (3,605 ) $ (520 ) $ (3,855 ) |
Details about AOCI Components Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows: Gains/(losses) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended December 30, December 31, Cash flow hedges Primarily revenue $ (20 ) $ 70 Estimated tax Income taxes 8 (26 ) (12 ) 44 Pension and postretirement medical expense Costs and expenses (96 ) (108 ) Estimated tax Income taxes 35 40 (61 ) (68 ) Total reclassifications for the period $ (73 ) $ (24 ) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (RSUs) | Compensation expense related to stock options, stock appreciation rights and restricted stock units (RSUs) is as follows: Quarter Ended December 30, December 31, Stock options $ 23 $ 20 RSUs 71 77 Total equity-based compensation expense (1) $ 94 $ 97 Equity-based compensation expense capitalized during the period $ 19 $ 21 (1) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
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 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments $ 32 $ — $ — $ 32 Derivatives Foreign exchange — 416 — 416 Other — 13 — 13 Liabilities Derivatives Interest rate — (188 ) — (188 ) Foreign exchange — (459 ) — (459 ) Total recorded at fair value $ 32 $ (218 ) $ — $ (186 ) Fair value of borrowings $ — $ 23,935 $ 2,793 $ 26,728 Fair Value Measurement at September 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments $ 36 $ — $ — $ 36 Derivatives Interest rate — 10 — 10 Foreign exchange — 403 — 403 Other — 8 — 8 Liabilities Derivatives Interest rate — (122 ) — (122 ) Foreign exchange — (427 ) — (427 ) Total recorded at fair value $ 36 $ (128 ) $ — $ (92 ) Fair value of borrowings $ — $ 23,110 $ 2,764 $ 25,874 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
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 30, 2017 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 152 $ 237 $ (187 ) $ (184 ) Interest rate — — (161 ) — Other 11 2 — — Derivatives not designated as hedges Foreign exchange 24 3 (64 ) (25 ) Interest rate — — — (27 ) Gross fair value of derivatives 187 242 (412 ) (236 ) Counterparty netting (141 ) (238 ) 204 175 Cash collateral (received)/paid (12 ) (1 ) 35 — Net derivative positions $ 34 $ 3 $ (173 ) $ (61 ) As of September 30, 2017 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 175 $ 190 $ (192 ) $ (170 ) Interest rate — 10 (106 ) — Other 6 2 — — Derivatives not designated as hedges Foreign exchange 38 — (46 ) (19 ) Interest rate — — — (16 ) Gross fair value of derivatives 219 202 (344 ) (205 ) Counterparty netting (142 ) (190 ) 188 144 Cash collateral (received)/paid (20 ) (7 ) 19 — Net derivative positions $ 57 $ 5 $ (137 ) $ (61 ) |
Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income | The following table summarizes adjustments related to fair value hedges included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income. Quarter Ended December 30, December 31, Gain (loss) on interest rate swaps $ (64 ) $ (232 ) Gain (loss) on hedged borrowings 64 232 |
Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter s ended December 30, 2017 and December 31, 2016 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income: Costs and Expenses Interest expense, net Income Tax expense Quarter Ended: December 30, December 31, December 30, December 31, December 30, December 31, Net gains (losses) on foreign currency denominated assets and liabilities $ 17 $ (233 ) $ 3 $ 7 $ 3 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (14 ) 221 (1 ) (7 ) (1 ) (31 ) Net gains (losses) $ 3 $ (12 ) $ 2 $ — $ 2 $ (8 ) |
Cash and Cash Equivalents and35
Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 4,677 | $ 4,017 | ||
Restricted Cash and Cash Equivalents, Current | 13 | 26 | ||
Restricted Cash and Cash Equivalents, Noncurrent | 5 | 21 | ||
Cash, Cash Equivalents and Restricted Cash | $ 4,695 | $ 4,064 | $ 4,071 | $ 4,760 |
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. 30, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 43 | $ 118 |
Media Networks | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 50 | 119 |
Parks and Resorts | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | (7) | (2) |
Consumer Products and Interactive | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 0 | 1 |
Total Segments | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 43 | $ 118 |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information | |||
Revenues: | $ 15,351 | $ 14,784 | |
Segment operating income | 3,986 | 3,956 | |
Media Networks | |||
Segment Reporting Information | |||
Revenues: | 6,243 | 6,233 | |
Segment operating income | 1,193 | 1,362 | |
Parks and Resorts | |||
Segment Reporting Information | |||
Revenues: | 5,154 | 4,555 | |
Segment operating income | 1,347 | 1,110 | |
Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | [1] | 2,504 | 2,520 |
Segment operating income | [1] | 829 | 842 |
Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | [1] | 1,450 | 1,476 |
Segment operating income | [1] | $ 617 | $ 642 |
[1] | Studio Entertainment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income was $171 million and $181 million for the quarters ended December 30, 2017 and December 31, 2016, respectively |
Financial Information by Oper38
Financial Information by Operating Segments- Intersegment Eliminations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information | |||
Revenues: | $ 15,351 | $ 14,784 | |
Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | [1] | 2,504 | 2,520 |
Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | [1] | 1,450 | 1,476 |
Intersegment Eliminations | Studio Entertainment | |||
Segment Reporting Information | |||
Revenues: | 171 | 181 | |
Intersegment Eliminations | Consumer Products and Interactive | |||
Segment Reporting Information | |||
Revenues: | $ (171) | $ (181) | |
[1] | Studio Entertainment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income was $171 million and $181 million for the quarters ended December 30, 2017 and December 31, 2016, respectively |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | ||
Segment operating income | $ 3,986 | $ 3,956 |
Corporate and unallocated shared expenses | (150) | (132) |
Restructuring and impairment charges | (15) | 0 |
Other Income | 53 | 0 |
Interest expense, net | (129) | (99) |
Income before income taxes | $ 3,745 | $ 3,725 |
Acquisitions Changes in Carry A
Acquisitions Changes in Carry Amount of Goodwill (Details) $ in Millions | 3 Months Ended | |
Dec. 30, 2017USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 31,426 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Other, net | 4 | |
Ending balance | 31,430 | |
Media Networks [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 16,325 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Other, net | 7 | |
Ending balance | 16,332 | |
Parks And Resorts [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 291 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Other, net | 0 | |
Ending balance | 291 | |
Studio Entertainment [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 6,817 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Other, net | 7 | |
Ending balance | 6,824 | |
Consumer Products and Interactive [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 4,393 | |
Acquisitions | 0 | |
Dispositions | 0 | |
Other, net | 2 | |
Ending balance | 4,395 | |
Unallocated [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 3,600 | [1] |
Acquisitions | 0 | [1] |
Dispositions | 0 | [1] |
Other, net | (12) | [1] |
Ending balance | $ 3,588 | [1] |
[1] | Goodwill will be allocated to the segments once the BAMTech purchase price allocation is finalized. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 14, 2017 | Dec. 30, 2017 | Sep. 30, 2017 | Sep. 25, 2017 | Apr. 01, 2017 |
Business Acquisition And Equity Method Investments | |||||
Goodwill | $ 31,430 | $ 31,426 | |||
Redeemable Noncontrolling Interest | 1,142 | $ 1,148 | |||
BAMTech, LLC [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Goodwill | $ 3,600 | ||||
Redeemable Noncontrolling Interest | 1,100 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 3,900 | ||||
Equity Method Investment, Ownership Percentage | 75.00% | 42.00% | 33.00% | ||
Revenue and expense | 100 | ||||
BAMTech, LLC [Member] | NHL [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 500 | ||||
BAMTech, LLC [Member] | MLB [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 574 | ||||
BAMTech Notes Payable [Member] | BAMTech, LLC [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Notes Payable, Current | 1,600 | ||||
Minimum | NHL [Member] | BAMTech, LLC [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 300 | ||||
Minimum | BAMTech, LLC [Member] | MLB [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 563 | ||||
Preferred Stock on NCI Accretion Percentage | 8.00% | ||||
Maximum | NHL [Member] | BAMTech, LLC [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 350 | ||||
Pending Approval [Member] | 21CF [Member] | |||||
Business Acquisition And Equity Method Investments | |||||
Exchange Ratio used in calculation of Acquisition | $ 0.2745 | ||||
Business Combination Dividend Distribution | $ 8,500 | ||||
Business Combination Dividend Distribution, Change in Amount of Dividend Distribution | $ 2,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 515 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 52,400 | ||||
Business combination, recognized liabilities, net debt | $ 13,700 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 20,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 6,300 | ||||
Loss on Contract Termination | 2,500 | ||||
Gain (Loss) on Contract Termination | $ 1,500 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 3 Months Ended | |
Dec. 30, 2017USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 25,291 | |
Borrowings | 3,784 | |
Payments | (2,949) | |
Other Activity | (35) | |
Borrowings ending balance | 26,091 | |
Commercial paper with original maturities less than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,151 | |
Borrowings | 2,047 | [1] |
Payments | 0 | [1] |
Other Activity | 0 | |
Borrowings ending balance | 3,198 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,621 | |
Borrowings | 712 | |
Payments | (1,619) | |
Other Activity | (1) | |
Borrowings ending balance | 713 | |
U.S. and European medium-term notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 19,721 | |
Borrowings | 0 | |
Payments | (1,300) | |
Other Activity | 6 | |
Borrowings ending balance | 18,427 | |
BAMTech Notes Payable [Member] | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,581 | |
Borrowings | 0 | |
Payments | 0 | |
Other Activity | 0 | |
Borrowings ending balance | 1,581 | |
Asia International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,145 | |
Borrowings | 0 | |
Payments | 0 | |
Other Activity | 30 | |
Borrowings ending balance | 1,175 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 72 | |
Borrowings | 1,025 | |
Payments | (30) | |
Other Activity | (70) | [2] |
Borrowings ending balance | $ 997 | |
[1] | Borrowings and payments are reported net. | |
[2] | The other activity is primarily market value adjustments for debt with qualifying hedges. |
Borrowings Line of Credit Facil
Borrowings Line of Credit Facilities (Details) $ in Millions | 3 Months Ended |
Dec. 30, 2017USD ($) | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | $ 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 7,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 7,000 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,500 |
Line of Credit Facility, Expiration Date | Mar. 31, 2018 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,250 |
Line of Credit Facility, Expiration Date | Mar. 31, 2019 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,250 |
Existing Line Of Credit 1 | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,250 |
Line of Credit Facility, Expiration Date | Mar. 31, 2021 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,250 |
Borrowings Interest Expense, ne
Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Interest expense | $ (146) | $ (121) |
Interest and investment income | 17 | 22 |
Interest expense, net | $ (129) | $ (99) |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 30, 2017USD ($) | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000 |
Line of Credit Facility, Interest Rate Description | All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.23% to 1.63%. |
Letters of Credit Outstanding, Amount | $ 190 |
Letter of Credit | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 |
Minimum | |
Line of Credit Facility | |
Variable Spread Above LIBOR | 0.23% |
Maximum | |
Line of Credit Facility | |
Variable Spread Above LIBOR | 1.63% |
Credit Facility available beginning April 2021 [Member] | Disney Cruise Line [Member] | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% |
Credit Facility available beginning May 2022 [Member] [Member] | Disney Cruise Line [Member] | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.70% |
Credit Facility available beginning April 2023 [Member] | Disney Cruise Line [Member] | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.70% |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of International Theme Parks (Details) - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 | |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and Cash Equivalents | $ 4,677 | $ 4,017 | |
Other current assets | 558 | 588 | |
Total current assets | 17,274 | 15,889 | |
Parks, resorts and other property | 28,584 | 28,406 | |
Other assets | 2,373 | 2,390 | |
Total assets | 97,734 | 95,789 | |
Current liabilities | 19,875 | 19,595 | |
Borrowings - long-term | 20,082 | 19,119 | |
International Theme Parks | |||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and Cash Equivalents | 844 | 843 | |
Other current assets | 397 | 376 | |
Total current assets | 1,241 | 1,219 | |
Parks, resorts and other property | 9,449 | 9,403 | |
Other assets | 110 | 111 | |
Total assets | [1] | 10,800 | 10,733 |
Current liabilities | 1,061 | 1,163 | |
Borrowings - long-term | 1,175 | 1,145 | |
Other long-term liabilities | 390 | 371 | |
Total liabilities | [1] | $ 2,626 | $ 2,679 |
[1] | At December 30, 2017 and September 30, 2017, total assets of the Asia Theme Parks were $8.1 billion and primarily consist of parks, resorts and other property of $7.3 billion. At December 30, 2017 and September 30, 2017, total liabilities of the Asia Theme Parks were $2.1 billion. |
International Theme Parks Impac
International Theme Parks Impact of Consolidating Balance Sheets of International Theme Parks - Asia International Theme Parks (Details) - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 | |
Schedule Of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
Total assets | $ 97,734 | $ 95,789 | |
Parks, resorts and other property | 28,584 | 28,406 | |
Asia International Theme Parks [Member] | |||
Schedule Of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
Total assets | 8,100 | 8,100 | |
Parks, resorts and other property | 7,300 | 7,300 | |
Total liabilities | $ 2,100 | [1] | $ 2,100 |
[1] | At December 30, 2017 and September 30, 2017, total assets of the Asia Theme Parks were $8.1 billion and primarily consist of parks, resorts and other property of $7.3 billion. At December 30, 2017 and September 30, 2017, total liabilities of the Asia Theme Parks were $2.1 billion. |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues: | $ 15,351 | $ 14,784 |
Cost and expenses | (11,558) | (11,078) |
Equity in the loss of investees | 43 | $ 118 |
International Theme Parks | ||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues: | 905 | |
Cost and expenses | (870) | |
Equity in the loss of investees | $ (7) |
International Theme Parks - Add
International Theme Parks - Additional Information (Details) ¥ in Millions, $ in Millions, HKD in Billions | 1 Months Ended | 3 Months Ended | ||||
Aug. 31, 2017USD ($) | Aug. 31, 2017HKD | Dec. 30, 2017CNY (¥)Property | Dec. 30, 2017USD ($)Property | Dec. 30, 2017HKDProperty | Dec. 31, 2016USD ($) | |
Noncontrolling Interest | ||||||
Net Cash Provided by Operating Activities | $ 2,237 | $ 1,445 | ||||
Net Cash Used in Investing Activities | (1,043) | (1,035) | ||||
Net Cash Provided by Financing Activities | $ (584) | $ (987) | ||||
Maximum | ||||||
Noncontrolling Interest | ||||||
Variable Spread Above Reference Rate | 1.63% | 1.63% | 1.63% | |||
Asia International Theme Parks [Member] | ||||||
Noncontrolling Interest | ||||||
Royalties And Management Fees | $ 40 | |||||
International Theme Parks | ||||||
Noncontrolling Interest | ||||||
Net Cash Provided by Operating Activities | 167 | |||||
Net Cash Used in Investing Activities | 158 | |||||
Net Cash Provided by Financing Activities | $ 8 | |||||
Hong Kong Disneyland Resort | ||||||
Noncontrolling Interest | ||||||
Effective Ownership Interest | 47.00% | 47.00% | 47.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 53.00% | 53.00% | 53.00% | |||
Hong Kong Disneyland Resort | Loans | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 139 | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 93 | |||||
Hong Kong Disneyland Resort | Loans | HIBOR | ||||||
Noncontrolling Interest | ||||||
Variable Spread Above Reference Rate | 2.00% | 2.00% | 2.00% | |||
Hong Kong Disneyland Resort | Line of Credit | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 269 | HKD 2.1 | ||||
Hong Kong Disneyland Resort | Line of Credit | HIBOR | ||||||
Noncontrolling Interest | ||||||
Variable Spread Above Reference Rate | 1.25% | 1.25% | 1.25% | |||
Hong Kong Disneyland Resort | Equity Securities [Member] | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 1,400 | HKD 10.9 | ||||
Shanghai Disney Resort | ||||||
Noncontrolling Interest | ||||||
Effective Ownership Interest | 43.00% | 43.00% | 43.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 57.00% | 57.00% | 57.00% | |||
Shanghai Disney Resort | Unused lines of Credit | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 157 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||
Shanghai Disney Resort | Loans | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 789 | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 6,800 | $ 1,000 | ||||
Shanghai Disney Resort | Loans | Maximum | ||||||
Noncontrolling Interest | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||
Shanghai Disney Resort | Development and pre-opening cost loan and outstanding roylties and management fees | ||||||
Noncontrolling Interest | ||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 322 | |||||
Shanghai Disney Resort | Line of Credit | ||||||
Noncontrolling Interest | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 1,400 | $ 209 | ||||
Shanghai Disney Resort Management Company | ||||||
Noncontrolling Interest | ||||||
Effective Ownership Interest | 70.00% | 70.00% | 70.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | 30.00% | |||
Scenario, Plan [Member] | Hong Kong Disneyland Resort | ||||||
Noncontrolling Interest | ||||||
Number Of Hotels To Be Built | Property | 3 | 3 | 3 |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 30, 2017 | Sep. 30, 2017 |
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | 35.00% | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 300 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 1,900 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 100 | ||
Unrecognized Tax Benefits | 900 | ||
Unrecognized tax benefits expected reduction due to resolutions of open tax matters | 258 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 100 | ||
Subsequent Event [Member] | |||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Cash and Cash Equivalents [Member] | |||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 15.50% | ||
Residual Earnings [Member] | |||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 8.00% | ||
Minimum | Scenario, Forecast [Member] | |||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 13.00% | ||
Maximum | Scenario, Forecast [Member] | |||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 16.00% |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | $ 88 | $ 91 |
Interest costs | 123 | 112 |
Expected return on plan assets | (225) | (219) |
Amortization of prior-year service costs | 3 | 3 |
Recognized net actuarial loss | 87 | 101 |
Net periodic benefit cost | 76 | 88 |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 3 | 3 |
Interest costs | 15 | 14 |
Expected return on plan assets | (13) | (12) |
Amortization of prior-year service costs | 0 | 0 |
Recognized net actuarial loss | 3 | 4 |
Net periodic benefit cost | $ 8 | $ 9 |
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. 30, 2017 | Dec. 31, 2016 | |
Shares (in millions): | ||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,512 | 1,592 |
Weighted average dilutive impact of Awards | 9 | 11 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,521 | 1,603 |
Awards excluded from diluted earnings per share | 16 | 16 |
Equity Dividends Paid (Details)
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | ||
Dec. 30, 2017 | Sep. 30, 2017 | Apr. 01, 2017 | |
Dividends, Common Stock [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.84 | $ 0.78 | $ 0.78 |
Dividends, Common Stock, Cash | $ 1.3 | $ 1.2 | $ 1.2 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (5,522) | $ (6,374) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 80 | 347 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 116 | 38 |
AOCI before Tax, Attributable to Parent, Ending Balance | (5,326) | (5,989) |
Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | 15 | 44 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (1) | (18) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
AOCI before Tax, Attributable to Parent, Ending Balance | 14 | 26 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (108) | (38) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 19 | 506 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 20 | (70) |
AOCI before Tax, Attributable to Parent, Ending Balance | (69) | 398 |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (4,906) | (5,859) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 96 | 108 |
AOCI before Tax, Attributable to Parent, Ending Balance | (4,810) | (5,751) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (523) | (521) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 62 | (141) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
AOCI before Tax, Attributable to Parent, Ending Balance | $ (461) | $ (662) |
Equity Changes in Accumulated55
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 1,994 | $ 2,395 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (29) | (247) |
Reclassification from AOCI, Current Period, Tax | (43) | (14) |
AOCI Tax, Attributable to Parent, Ending Balance | 1,922 | 2,134 |
Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | (7) | (18) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | 7 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
AOCI Tax, Attributable to Parent, Ending Balance | (7) | (11) |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 46 | 13 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (13) | (182) |
Reclassification from AOCI, Current Period, Tax | (8) | 26 |
AOCI Tax, Attributable to Parent, Ending Balance | 25 | (143) |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 1,839 | 2,208 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | (22) |
Reclassification from AOCI, Current Period, Tax | (35) | (40) |
AOCI Tax, Attributable to Parent, Ending Balance | 1,804 | 2,146 |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 116 | 192 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (16) | (50) |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
AOCI Tax, Attributable to Parent, Ending Balance | $ 100 | $ 142 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | $ (3,528) | $ (3,979) |
Unrealized gains (losses) arising during the period | 51 | 100 |
Reclassifications of realized net (gains) losses to net income | 73 | 24 |
AOCI, Ending Balance | (3,404) | (3,855) |
Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | 8 | 26 |
Unrealized gains (losses) arising during the period | (1) | (11) |
Reclassifications of realized net (gains) losses to net income | 0 | 0 |
AOCI, Ending Balance | 7 | 15 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (62) | (25) |
Unrealized gains (losses) arising during the period | 6 | 324 |
Reclassifications of realized net (gains) losses to net income | 12 | (44) |
AOCI, Ending Balance | (44) | 255 |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (3,067) | (3,651) |
Unrealized gains (losses) arising during the period | 0 | (22) |
Reclassifications of realized net (gains) losses to net income | 61 | 68 |
AOCI, Ending Balance | (3,006) | (3,605) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (407) | (329) |
Unrealized gains (losses) arising during the period | 46 | (191) |
Reclassifications of realized net (gains) losses to net income | 0 | 0 |
AOCI, Ending Balance | $ (361) | $ (520) |
Details about AOCI Components R
Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Details about AOCI Components Reclassified to Net Income | ||
Interest expense, net | $ (129) | $ (99) |
Primarily revenue | 15,351 | 14,784 |
Income taxes | 728 | (1,237) |
Net income attributable to The Walt Disney Company (Disney) | 4,423 | 2,479 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Net income attributable to The Walt Disney Company (Disney) | (73) | (24) |
Gain/(loss) in net income from Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Primarily revenue | (20) | 70 |
Income taxes | 8 | (26) |
Net income attributable to The Walt Disney Company (Disney) | (12) | 44 |
Gain/(loss) in net income from Pension and postretirement medical expense | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Primarily included in the computation of net periodic benefit cost | (96) | (108) |
Income taxes | 35 | 40 |
Net income attributable to The Walt Disney Company (Disney) | $ (61) | $ (68) |
Equity - Additional Information
Equity - Additional Information (Details) shares in Millions, $ in Millions | 3 Months Ended |
Dec. 30, 2017USD ($)shares | |
Equity [Abstract] | |
Common stock repurchases, shares | 13 |
Common stock repurchases | $ | $ 1,313 |
Remaining shares authorized for repurchase | 179 |
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. 30, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options | $ 23 | $ 20 | |
RSUs | 71 | 77 | |
Total equity-based compensation expense | [1] | 94 | 97 |
Equity-based compensation expense capitalized during the period | $ 19 | $ 21 | |
[1] | Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair values of options issued | $ 28.01 | $ 25.78 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 222 | |
Stock compensation granted, number of shares | 4 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 858 | |
Stock compensation granted, number of shares | 4.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 30, 2017USD ($) |
Syndicated programming | |
Commitments and Contingencies Disclosure [Line Items] | |
Long-term receivables, net of allowance for credit losses | $ 800 |
Mortgage Receivable | |
Commitments and Contingencies Disclosure [Line Items] | |
Long-term receivables, net of allowance for credit losses | $ 700 |
Allowance for credit losses related to long-term receivables, percentage | 4.00% |
Hulu Llc | |
Commitments and Contingencies Disclosure [Line Items] | |
Other Commitment | $ 450 |
Equity Method Investment, Ownership Percentage | 30.00% |
Notes Payable, Other Payables | Hulu Llc | |
Commitments and Contingencies Disclosure [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 113 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | 338 |
Guarantee Obligations | |
Commitments and Contingencies Disclosure [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 306 |
Remaining debt service obligation guaranteed, principal | $ 48 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 32 | $ 36 |
Total | (186) | (92) |
Fair value of borrowings | 26,728 | 25,874 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 10 | |
Derivative Liabilities | (188) | (122) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 416 | 403 |
Derivative Liabilities | (459) | (427) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 13 | 8 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 32 | 36 |
Total | 32 | 36 |
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 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | (218) | (128) |
Fair value of borrowings | 23,935 | 23,110 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 10 | |
Derivative Liabilities | (188) | (122) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 416 | 403 |
Derivative Liabilities | (459) | (427) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 13 | 8 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 2,793 | 2,764 |
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 |
Gross Fair Value of Derivative
Gross Fair Value of Derivative Positions (Details) - USD ($) $ in Millions | Dec. 30, 2017 | Sep. 30, 2017 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 187 | $ 219 |
Derivative Asset, Counterparty Netting Offset | (141) | (142) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (12) | (20) |
Net derivative positions | 34 | 57 |
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 | 152 | 175 |
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 | 11 | 6 |
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 | 24 | 38 |
Current Assets | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 242 | 202 |
Derivative Asset, Counterparty Netting Offset | (238) | (190) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (1) | (7) |
Net derivative positions | 3 | 5 |
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 | 237 | 190 |
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 | 10 |
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 | 2 | 2 |
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 | 3 | 0 |
Other Assets | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (412) | (344) |
Derivative Liability, Counterparty netting offset | 204 | 188 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 35 | 19 |
Net derivative positions | (173) | (137) |
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 | (187) | (192) |
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 | (161) | (106) |
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 | 0 | 0 |
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 | (64) | (46) |
Other Current Liabilities | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (236) | (205) |
Derivative Liability, Counterparty netting offset | 175 | 144 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Net derivative positions | (61) | (61) |
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 | (184) | (170) |
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 | (25) | (19) |
Other Long-Term Liabilities | Derivatives not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ (27) | $ (16) |
Adjustments Related to Fair Val
Adjustments Related to Fair Value Hedges Included in Net Interest Expense in Consolidated Statements of Income (Details) - Interest rate - Interest Expense - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on interest rate swaps | $ (64) | $ (232) |
Gain (loss) on hedged borrowings | $ 64 | $ 232 |
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. 30, 2017 | Dec. 31, 2016 | |
Costs and Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | $ 17 | $ (233) |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (14) | 221 |
Net gains (losses) | 3 | (12) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | 3 | 7 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (1) | (7) |
Net gains (losses) | 2 | 0 |
Income Taxes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains (losses) on foreign currency denominated assets and liabilities | 3 | 23 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (1) | (31) |
Net gains (losses) | $ 2 | $ (8) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Derivative [Line Items] | |||
Hedging Period for Foreign Currency Transactions, Maximum | 4 years | ||
Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months | $ 64 | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | 269 | $ 217 | |
Interest rate | Interest Expense | |||
Derivative [Line Items] | |||
Realized net benefits from derivative instruments | 7 | $ 12 | |
Derivatives designated as hedges | Interest rate | Fair Value Hedging | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 7,800 | 8,200 | |
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 6,700 | 6,300 | |
Not Designated as Hedging Instrument | Interest rate | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 500 | $ 500 | |
Not Designated as Hedging Instrument | Foreign exchange | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 2,900 | $ 3,600 |
Restructuring and Impairment 67
Restructuring and Impairment Charges - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and impairment charges | $ 15 | $ 0 |
Other Income | $ 53 | $ 0 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements - Additional Details (Details) - USD ($) $ in Billions | Dec. 30, 2017 | Sep. 30, 2017 |
Accounting Standards Update 2016-16 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.1 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Leases, Future Minimum Payments Due | $ 3.3 |