Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 29, 2019 | Jul. 31, 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38842 | |
Entity Registrant Name | WALT DISNEY CO/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-0940635 | |
Entity Address, Address Line One | 500 South Buena Vista Street | |
Entity Address, City or Town | Burbank | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91521 | |
City Area Code | 818 | |
Local Phone Number | 560-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DIS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,801,379,029 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-28 | |
Entity Central Index Key | 0001744489 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] | |
Selling, general, administrative and other | (3,362) | (2,213) | (7,844) | (6,539) | |||
Depreciation and amortization | (1,304) | (744) | (2,864) | (2,217) | |||
Total costs and expenses | 17,485 | 11,305 | 40,904 | 33,374 | |||
Restructuring and impairment charges | (207) | 0 | (869) | (28) | |||
Other income/(expense), net | (123) | 0 | 4,840 | 94 | |||
Interest expense, net | (411) | (143) | (617) | (415) | |||
Equity in the income / (loss) of investees, net | (1) | 73 | (234) | 122 | |||
Income from continuing operations before income taxes | 2,018 | 3,854 | 12,686 | 11,527 | |||
Income taxes from continuing operations | (395) | (795) | (2,687) | (880) | |||
Net Income from Continuing Operations | 1,623 | 3,059 | 9,999 | 10,647 | |||
Income from discontinued operations (net of income taxes of $100, $0, $105 and $0, respectively) | 359 | 0 | 380 | 0 | |||
Net income | 1,982 | 3,059 | 10,379 | 10,647 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling and Redeemable Noncontrolling Interest | 186 | 143 | 343 | 371 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (36) | 0 | (36) | 0 | |||
Net income attributable to The Walt Disney Company (Disney) | $ 1,760 | $ 2,916 | $ 10,000 | $ 10,276 | |||
Earnings per share attributable to Disney: | |||||||
Continuing Operations, Per Diluted Share | $ 0.79 | $ 1.95 | $ 5.98 | $ 6.81 | |||
Discontinued Operations, Per Diluted Share | 0.18 | 0 | 0.21 | 0 | |||
Diluted | [3] | 0.97 | 1.95 | 6.19 | 6.81 | ||
Continuing Operations, Per Basic Share | 0.80 | 1.96 | 6.01 | 6.84 | |||
Discontinued Operation, Per Basic Share | 0.18 | 0 | 0.21 | 0 | |||
Basic | [3] | $ 0.98 | $ 1.96 | $ 6.22 | $ 6.84 | ||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Diluted (shares) | 1,814 | 1,498 | 1,616 | 1,510 | |||
Basic (shares) | 1,802 | 1,491 | 1,607 | 1,502 | |||
Service | |||||||
Revenues | $ 18,022 | $ 13,143 | $ 43,899 | $ 38,647 | |||
Cost of Goods and Services Sold | 11,445 | 7,124 | 26,176 | 20,761 | |||
Product | |||||||
Revenues | 2,223 | 2,086 | 6,571 | 6,481 | |||
Cost of Goods and Services Sold | $ 1,374 | $ 1,224 | $ 4,020 | $ 3,857 | |||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[3] | Total may not equal the sum of the column due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 100 | $ 0 | $ 105 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Net income | $ 1,982 | $ 3,059 | $ 10,379 | $ 10,647 |
Other Comprehensive Income/(Loss), Net of Tax: | ||||
Market value adjustments for investments | 3 | 1 | (1) | 7 |
Market value adjustments for hedges | (15) | 260 | (104) | 166 |
Pension and postretirement medical plan adjustments | 24 | 70 | 145 | 225 |
Foreign currency translation and other | 20 | (363) | 45 | (132) |
Other comprehensive income | 32 | (32) | 85 | 266 |
Comprehensive income | 2,014 | 3,027 | 10,464 | 10,913 |
Net income attributable to noncontrolling and redeemable noncontrolling interests | (222) | (143) | (379) | (371) |
Other comprehensive income attributable to noncontrolling and redeemable noncontrolling interests | 33 | 115 | (3) | 0 |
Comprehensive income attributable to Disney | $ 1,825 | $ 2,999 | $ 10,082 | $ 10,542 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Current assets | ||
Cash and Cash Equivalents | $ 6,728 | $ 4,150 |
Receivables | 15,673 | 9,334 |
Inventories | 1,516 | 1,392 |
Television costs and advances | 4,526 | 1,314 |
Other current assets | 1,035 | 635 |
Assets held for sale | 1,892 | 0 |
Total current assets | 31,370 | 16,825 |
Film and television costs | 22,552 | 7,888 |
Investments | 3,872 | 2,899 |
Attractions, buildings and equipment | 57,457 | 55,238 |
Accumulated depreciation | (32,088) | (30,764) |
Parks, resorts and other property before projects in progress and land, Total | 25,369 | 24,474 |
Projects in progress | 4,853 | 3,942 |
Land | 1,170 | 1,124 |
Parks, resorts and other property | 31,392 | 29,540 |
Intangible assets, net | 25,114 | 6,812 |
Goodwill | 77,801 | 31,269 |
Noncurrent assets held for sale | 12,591 | 0 |
Other assets | 4,783 | 3,365 |
Total assets | 209,475 | 98,598 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 17,647 | 9,479 |
Current portion of borrowings | 21,923 | 3,790 |
Deferred revenue and other | 4,730 | 4,591 |
Liabilities held for sale | 293 | 0 |
Total current liabilities | 44,593 | 17,860 |
Borrowings | 36,311 | 17,084 |
Deferred income taxes | 10,404 | 3,109 |
Noncurrent liabilities held for sale | 2,353 | 0 |
Other long-term liabilities | 10,561 | 6,590 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests | 8,897 | 1,123 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares at June 29, 2019 and 2.9 billion shares at September 29, 2018 | 53,718 | 36,779 |
Retained earnings | 41,382 | 82,679 |
Accumulated other comprehensive loss | (3,721) | (3,097) |
Treasury stock, at cost, 19 million shares at June 29, 2019 and 1.4 billion shares at September 29, 2018 | (907) | (67,588) |
Total Disney Shareholders' equity | 90,472 | 48,773 |
Noncontrolling interests | 5,884 | 4,059 |
Total equity | 96,356 | 52,832 |
Total liabilities and equity | $ 209,475 | $ 98,598 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 1,800 | 2,900 |
Treasury stock, shares | 19 | 1,400 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Net Income from Continuing Operations | $ 9,999 | $ 10,647 |
OPERATING ACTIVITIES | ||
Depreciation and amortization | 2,864 | 2,217 |
Gain on acquisition | (4,794) | 0 |
Deferred income taxes | 1,716 | (1,411) |
Equity in the (income) / loss of investees | 234 | (122) |
Cash distributions received from equity investees | 548 | 587 |
Net change in film and television costs and advances | 59 | (601) |
Equity-based compensation | 591 | 307 |
Other | 152 | 297 |
Changes in operating assets and liabilities: | ||
Receivables | (1,428) | (1,178) |
Inventories | (96) | 53 |
Other assets | 450 | (472) |
Accounts payable and other liabilities | 219 | (316) |
Income taxes | (6,248) | 434 |
Cash provided by operations - continuing operations | 4,266 | 10,442 |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (3,567) | (3,264) |
Acquisitions | (9,901) | (1,581) |
Other | (317) | (298) |
Cash used in investing activities - continuing operations | (13,785) | (5,143) |
FINANCING ACTIVITIES | ||
Commercial paper borrowings, net | 2,973 | 453 |
Borrowings | 31,348 | 1,056 |
Reduction of borrowings | (19,039) | (1,356) |
Dividends | (1,310) | (1,266) |
Repurchases of common stock | 0 | (3,577) |
Proceeds from exercise of stock options | 278 | 129 |
Contributions from / sales of noncontrolling interests | 544 | 363 |
Acquisition of noncontrolling and redeemable noncontrolling interests | (1,430) | 0 |
Other | (831) | (783) |
Cash provided by / (used in) financing activities - continuing operations | 12,533 | (4,981) |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ||
Cash provided by operations - discontinued operations | 320 | 0 |
Cash used in financing activities - discontinued operations | (179) | 0 |
Cash used in discontinued operations | 141 | 0 |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 47 | (51) |
Change in Cash, Cash Equivalents and Restricted Cash | 3,202 | 267 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 4,155 | 4,064 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 7,357 | $ 4,331 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | AOCI Attributable to Parent | Treasury Stock | Disney Shareholders | Non-controlling Interests | Total excluding redeemable noncontrolling interest | ||
BEGINNING BALANCE (in shares) at Sep. 30, 2017 | 1,517 | |||||||||
Beginning Balance at Sep. 30, 2017 | $ 36,248 | $ 72,606 | $ (3,528) | $ (64,011) | $ 41,315 | $ 3,689 | [1] | $ 45,004 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ 10,913 | 10,276 | 266 | 10,542 | 389 | [1] | 10,931 | |||
Equity compensation activity (in shares) | 5 | |||||||||
Equity compensation activity | $ 319 | 319 | 319 | |||||||
Common stock repurchases (in shares) | (35) | |||||||||
Common stock repurchases | (3,577) | (3,577) | (3,577) | |||||||
Dividends | $ 7 | (2,522) | (2,515) | (2,515) | ||||||
Contributions | 363 | 26 | [1] | 26 | ||||||
Distributions and other | (4) | [2] | (4) | 121 | [1] | 117 | ||||
ENDING BALANCE (in shares) at Jun. 30, 2018 | 1,487 | |||||||||
Ending Balance at Jun. 30, 2018 | $ 36,574 | 80,364 | (3,262) | (67,588) | 46,088 | 3,983 | [1],[2] | 50,071 | ||
BEGINNING BALANCE (in shares) at Mar. 31, 2018 | 1,496 | |||||||||
Beginning Balance at Mar. 31, 2018 | $ 36,411 | 78,704 | (3,345) | (66,619) | 45,151 | 3,500 | [2] | 48,651 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 3,027 | 2,916 | 83 | 2,999 | 41 | [2] | 3,040 | |||
Equity compensation activity (in shares) | 1 | |||||||||
Equity compensation activity | $ 156 | 156 | 156 | |||||||
Common stock repurchases (in shares) | (10) | |||||||||
Common stock repurchases | (969) | (969) | (969) | |||||||
Dividends | $ 7 | (1,256) | (1,249) | (1,249) | ||||||
Contributions | 26 | [2] | 26 | |||||||
Distributions and other | 0 | 0 | (416) | [2] | (416) | |||||
ENDING BALANCE (in shares) at Jun. 30, 2018 | 1,487 | |||||||||
Ending Balance at Jun. 30, 2018 | $ 36,574 | 80,364 | (3,262) | (67,588) | 46,088 | 3,983 | [1],[2] | 50,071 | ||
BEGINNING BALANCE (in shares) at Sep. 29, 2018 | 1,488 | |||||||||
Beginning Balance at Sep. 29, 2018 | 52,832 | $ 36,779 | 82,679 | (3,097) | (67,588) | 48,773 | 4,059 | [1] | 52,832 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 10,464 | 10,000 | 82 | 10,082 | 318 | [1] | 10,400 | |||
Equity compensation activity (in shares) | 6 | |||||||||
Equity compensation activity | $ 738 | 738 | 738 | |||||||
Dividends | $ 8 | (2,903) | (2,895) | (2,895) | ||||||
Contributions | 544 | 736 | [1] | 736 | ||||||
Acquisition of 21CF (in shares) | 307 | |||||||||
Acquisition of 21CF | $ 33,774 | 33,774 | 10,542 | [1] | 44,316 | |||||
Adoption of new accounting guidance | Accounting Standards Update 2018-02 | 691 | (691) | ||||||||
Adoption of new accounting guidance | Accounting Standards Update 2016-16 | 129 | 129 | 129 | |||||||
Adoption of new accounting guidance | Accounting Standards Update 2014-09 | (116) | (116) | (116) | |||||||
Adoption of new accounting guidance | Accounting Standards Update, Other | 22 | (15) | 7 | 7 | ||||||
Treasury Stock, Retired, Cost Method, Amount | (17,563) | (49,118) | 66,681 | |||||||
Temporary Equity, Accretion to Redemption Value | (7,797) | [1] | (7,797) | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (1,430) | [1] | (1,430) | |||||||
Distributions and other | $ 18 | 2 | 20 | 544 | [1] | 564 | ||||
ENDING BALANCE (in shares) at Jun. 29, 2019 | 1,801 | |||||||||
Ending Balance at Jun. 29, 2019 | 96,356 | $ 53,718 | 41,382 | (3,721) | (907) | 90,472 | 5,884 | [1],[2] | 96,356 | |
BEGINNING BALANCE (in shares) at Mar. 30, 2019 | 1,798 | |||||||||
Beginning Balance at Mar. 30, 2019 | $ 53,419 | 41,212 | (3,786) | (907) | 89,938 | 14,401 | [2] | 104,339 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 2,014 | 1,760 | 65 | 1,825 | 128 | [2] | 1,953 | |||
Equity compensation activity (in shares) | 3 | |||||||||
Equity compensation activity | $ 323 | 323 | 323 | |||||||
Dividends | $ 0 | (1,585) | (1,585) | (1,585) | ||||||
Contributions | 689 | [2] | 689 | |||||||
Acquisition of 21CF (in shares) | 0 | |||||||||
Acquisition of 21CF | $ (30) | (30) | (96) | [2] | (126) | |||||
Temporary Equity, Accretion to Redemption Value | (7,797) | [2] | (7,797) | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (1,430) | [2] | (1,430) | |||||||
Distributions and other | $ (6) | 5 | (1) | 11 | [2] | 10 | ||||
ENDING BALANCE (in shares) at Jun. 29, 2019 | 1,801 | |||||||||
Ending Balance at Jun. 29, 2019 | $ 96,356 | $ 53,718 | $ 41,382 | $ (3,721) | $ (907) | $ 90,472 | $ 5,884 | [1],[2] | $ 96,356 | |
[1] | Excludes redeemable noncontrolling interest | |||||||||
[2] | Excludes redeemable noncontrolling interest |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Jun. 29, 2019 | |
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 nine months ended June 29, 2019 are not necessarily indicative of the results that may be expected for the year ending September 28, 2019 . 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. The term “TWDC” is used to refer to the parent company. These financial statements should be read in conjunction with the Company’s 2018 Annual Report on Form 10-K. On March 20, 2019 the Company acquired Twenty-First Century Fox, Inc. (21CF) (see Note 4). As part of the acquisition, the Company agreed to sell 21CF’s Regional Sports Networks (RSNs) and certain sports media operations in Brazil and Mexico. The assets and liabilities of these operations are reported as held for sale and the income and cash flows are reported as discontinued operations. In addition, as a result of the 21CF acquisition the Company’s ownership interest in Hulu LLC (Hulu) increased to 60% and the Company started consolidating the results of Hulu. The Company enters into relationships or investments with other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates. Reclassifications Certain reclassifications have been made in fiscal 2018 financial statements and notes to conform to the fiscal 2019 presentation. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 29, 2019 | |
Segment Information | Description of Business and Segment Information Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer in order to decide how to allocate resources and to assess performance. Effective in fiscal 2019, the Company started reporting its results in the following operating segments: • Media Networks; • Parks, Experiences and Products; • Studio Entertainment; and • Direct-to-Consumer & International The Parks, Experiences and Products segment reflects the combination of the former Parks & Resorts and Consumer Products & Interactive Media segments. Certain businesses that were previously reported in Media Networks, Studio Entertainment and Consumer Products & Interactive Media are now reported in Direct-to-Consumer & International (DTCI). Fiscal 2018 segment operating results have been recast to align with the fiscal 2019 presentation. 21CF and Hulu results are consolidated and reported in our operating segments from the acquisition date through June 29, 2019. The acquired 21CF businesses are generally branded Fox, FX, Star and National Geographic. DESCRIPTION OF BUSINESS Media Networks • Significant operations: ◦ Disney, ESPN ( 80% ownership interest), FX, National Geographic ( 73% ownership interest) and Freeform branded domestic cable networks ◦ ABC branded broadcast television network and eight owned domestic television stations ◦ Television production and distribution ◦ National Geographic branded publishing business ◦ A 50% equity investment in A+E Television Networks (A+E), which operates a variety of cable networks including A&E, HISTORY and Lifetime • Significant revenues: ◦ Affiliate fees - Fees charged to multi-channel video programming distributors (i.e. cable, satellite, telecommunications and digital over-the-top (e.g. Hulu, YouTube TV) service providers) (MVPDs) and to television stations affiliated with the ABC Network for the right to deliver our programming to their customers ◦ Advertising - Sales of ad time/space on our domestic networks and related platforms (“ratings-based ad sales”, which excludes advertising on digital platforms that is not ratings based), and the sale of ad time on our domestic television stations. Ratings-based ad sales are generally determined using viewership measured with Nielsen ratings. Non-ratings-based advertising on digital platforms is reported by DTCI. ◦ TV/SVOD distribution - Licensing fees and other revenues from the right to use our television programs and productions and revenue from content transactions with other Company segments (“program sales”) • Significant expenses: ◦ Operating expenses consisting primarily of programming and production costs, participations and residuals expense, technical support costs, operating labor and distribution costs ◦ Selling, general and administrative costs ◦ Depreciation and amortization Parks, Experiences and Products • Significant operations: ◦ Parks & Experiences: ▪ Theme parks and resorts, which include: Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort ( 47% ownership interest); and Shanghai Disney Resort ( 43% ownership interest), all of which are consolidated in our results. Additionally, the Company licenses our intellectual property to a third party to operate Tokyo Disney Resort. ▪ Disney Cruise Line, Disney Vacation Club, National Geographic and Disney-branded travel businesses, and Aulani, a Disney Resort & Spa in Hawaii ◦ Consumer Products: ▪ Licensing of our trade names, characters, visual, literary and other intellectual properties to various manufacturers, game developers, publishers and retailers throughout the world ▪ Sale of branded merchandise through retail, online and wholesale businesses, and development and publishing of books, magazines (excluding National Geographic, which is reported in Media Networks), comic books and games • Significant revenues: ◦ Theme park admissions - Sales of tickets for admission to our theme parks ◦ Parks & Experiences merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts and cruise ships ◦ Resorts and vacations - Sales of room nights at hotels, sales of cruise and other vacations and sales and rentals of vacation club properties ◦ Merchandise licensing and retail: ▪ Merchandise licensing - Royalties from intellectual property licensing ▪ Retail - Sales of merchandise at The Disney Stores and through branded internet shopping sites, as well as to wholesalers (including sales of published materials and games) ◦ Parks licensing and other - Revenues from sponsorships and co-branding opportunities, real estate rent and sales, and royalties from Tokyo Disney Resort • Significant expenses: ◦ Operating expenses primarily consist of operating labor, costs of goods sold, infrastructure costs, supplies, commissions and entertainment offerings. Infrastructure costs include information systems expense, repairs and maintenance, utilities and fuel, property taxes, retail occupancy costs, insurance and transportation. ◦ Selling, general and administrative costs ◦ Depreciation and amortization Studio Entertainment • Significant operations: ◦ Motion picture production and distribution under the Walt Disney Pictures, Twentieth Century Fox, Pixar, Marvel, Lucasfilm, Fox 2000, Fox Searchlight Pictures, Twentieth Century Fox Animation and Touchstone banners ◦ Development, production and licensing of live entertainment events on Broadway and around the world (stage plays) • Significant revenues: ◦ Theatrical distribution - Rentals from licensing our motion pictures to theaters ◦ Home entertainment - Sale of our motion pictures to retailers and distributors in physical (DVD and Blu-ray) and electronic formats ◦ TV/SVOD distribution and other - Licensing fees and other revenue from the right to use our motion picture productions, revenue from content transactions with other Company segments, ticket sales from stage plays and fees from licensing our intellectual properties for use in live entertainment productions • Significant expenses: ◦ Operating expenses consisting primarily of amortization of production, participations and residuals costs, distribution costs and costs of sales ◦ Selling, general and administrative costs ◦ Depreciation and amortization Direct-to-Consumer & International • Significant operations: ◦ Disney, ESPN, Fox, Star, FX and National Geographic branded international television networks and channels (International Channels) ◦ Direct-to-consumer (DTC) businesses distributed digitally to internet-connected devices: ▪ Hulu and Hotstar streaming services, which aggregate acquired television and film entertainment content and produce original content. Prior to the acquisition of 21CF, Hulu was reported as an equity investment. ▪ ESPN+ streaming service, which was launched in April 2018 ▪ Disney+ streaming service, which we plan to launch in late 2019 ◦ Other Company branded digital content distribution platforms and services ◦ BAMTech LLC (BAMTech) (owned 75% by the Company since September 2017), which provides streaming technology services ◦ Equity investments: ▪ A 50% ownership interest in Endemol Shine Group, which is a multi-platform content provider with creative operations across the world’s major markets ▪ A 27% effective ownership interest in Vice Group Holdings, Inc. (Vice), which is a media company that targets millennial audiences. Vice operates Viceland, which is owned 50% by Vice and 50% by A+E. • Significant revenues: ◦ Affiliate fees - Fees charged to MVPDs for the right to deliver our International Channels to their customers ◦ Advertising - Sales of ad time/space on our International Channels. Sales of non-ratings based ad time/space on digital platforms (“addressable ad sales”). In general, addressable ad sales are delivered using technology that allows for dynamic insertion of advertisements into video content, which can be targeted to specific viewer groups ◦ Subscription fees and other - Fees charged to customers/subscribers for our streaming and technology services • Significant expenses: ◦ Operating expenses consisting primarily of programming and production costs (including digital content obtained from other Company segments), technical support costs, operating labor and distribution costs ◦ Selling, general and administrative costs ◦ Depreciation and amortization SEGMENT INFORMATION 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 and excludes impairments of certain equity investments and purchase accounting amortization of 21CF and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the 21CF acquisition. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Intersegment content transactions (e.g. feature films aired on the ABC Television Network, our networks streaming on our DTC services) are presented “gross” (i.e. the segment producing the content reports revenue and profit from intersegment transactions in a manner similar to the reporting of third-party transactions, and the required eliminations are reported on a separate “Eliminations” line when presenting a summary of our segment results). Previously, these transactions were reported “net”, and the intersegment revenue was eliminated in the results of the segment producing the content. Fiscal 2018 intersegment content transactions have been recast to align with the fiscal 2019 presentation. Segment revenues and segment operating income are as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Revenues : Media Networks $ 6,713 $ 5,534 $ 18,317 $ 16,597 Parks, Experiences and Products (1) 6,575 6,136 19,570 18,566 Studio Entertainment (1) 3,836 2,880 7,817 7,888 Direct-to-Consumer & International 3,858 827 5,921 2,589 Eliminations (2) (737 ) (148 ) (1,155 ) (512 ) $ 20,245 $ 15,229 $ 50,470 $ 45,128 Segment operating income : Media Networks $ 2,136 $ 1,995 $ 5,696 $ 5,496 Parks, Experiences and Products (1) 1,719 1,655 5,377 4,918 Studio Entertainment (1) 792 701 1,607 2,400 Direct-to-Consumer & International (553 ) (168 ) (1,074 ) (398 ) Eliminations (2) (133 ) 6 (174 ) (4 ) $ 3,961 $ 4,189 $ 11,432 $ 12,412 (1) Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. (2) Intersegment content transactions are as follows: Quarter Ended Nine Months Ended (in millions) June 29, June 30, June 29, June 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (41 ) $ (25 ) $ (75 ) $ (120 ) Content transactions with Direct-to-Consumer & International (82 ) (8 ) (182 ) (24 ) Media Networks: Content transactions with Direct-to-Consumer & International (614 ) (115 ) (898 ) (368 ) $ (737 ) $ (148 ) $ (1,155 ) $ (512 ) Operating income: Studio Entertainment: Content transactions with Media Networks $ (16 ) $ 7 $ (11 ) $ (2 ) Content transactions with Direct-to-Consumer & International (35 ) — (79 ) — Media Networks: Content transactions with Direct-to-Consumer & International (82 ) (1 ) (84 ) (2 ) Total $ (133 ) $ 6 $ (174 ) $ (4 ) Equity in the income/(loss) of investees is included in segment operating income as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Media Networks $ 192 $ 197 $ 553 $ 538 Parks, Experiences and Products — (5 ) (12 ) (19 ) Direct-to-Consumer & International 7 (119 ) (222 ) (397 ) Equity in the income of investees included in segment operating income 199 73 319 122 Impairment of equity investments (185 ) — (538 ) — Amortization of 21CF intangible assets related to equity investees (15 ) — (15 ) — Equity in the income / (loss) of investees, net $ (1 ) $ 73 $ (234 ) $ 122 A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Segment operating income $ 3,961 $ 4,189 $ 11,432 $ 12,412 Corporate and unallocated shared expenses (238 ) (192 ) (678 ) (536 ) Restructuring and impairment charges (207 ) — (869 ) (28 ) Other income/(expense), net (123 ) — 4,840 94 Interest expense, net (411 ) (143 ) (617 ) (415 ) Amortization of 21CF and Hulu intangible assets and fair value step-up on film and television costs (1) (779 ) — (884 ) — Impairment of equity investments (2) (185 ) — (538 ) — Income from continuing operations before income taxes $ 2,018 $ 3,854 $ 12,686 $ 11,527 (1) For the quarter ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $490 million , $274 million and $15 million , respectively. For the nine-months ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $562 million , $307 million and $15 million , respectively. (2) Primarily reflects an impairment of an investment in a cable channel at A+E Television Networks. |
Revenues
Revenues | 9 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues At the beginning of fiscal 2019, the Company adopted Financial Accounting Standards Board (FASB) guidance that replaced the existing accounting guidance for revenue recognition with a single comprehensive five-step model (“new revenue guidance”). 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. We adopted the new revenue guidance using the modified retrospective method; therefore, results for reporting periods beginning after September 30, 2018 are presented under the new revenue guidance, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. Upon adoption, we recorded a net reduction of $116 million to opening retained earnings in the first quarter of fiscal 2019. The most significant changes to the Company’s revenue recognition policies resulting from the adoption of the new revenue guidance are as follows: • For television and film content licensing agreements with multiple availability windows with the same licensee, the Company now defers more revenue to future windows than under the previous accounting guidance. • For licenses of character images, brands and trademarks with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual amounts earned based on a percentage of the licensee’s underlying sales (“shortfall”) is now recognized straight-line over the remaining license period once an expected shortfall is probable. Previously, shortfalls were recognized at the end of the contract period. • For licenses that include multiple television and film titles with a minimum guaranteed license fee across all titles that earns out against the aggregate fees based on the licensee’s underlying sales, the Company now allocates the minimum guaranteed license fee to each title at contract inception and recognizes the allocated license fee as revenue when the title is made available to the customer. License fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee across all titles is exceeded, license fees are recognized as earned based on the licensee’s underlying sales. Previously, license fees were 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, revenues are now recognized when the licensed content becomes available under the renewal or extension. Previously, revenues were recognized when the agreement was renewed or extended. The adoption of the new revenue guidance resulted in certain reclassifications on the Condensed Consolidated Balance Sheet. The primary changes are the reclassification of sales returns reserves (previously reported as a reduction of receivables) to other accrued liabilities ( $0.1 billion at June 29, 2019 ) and the reclassification of refundable customer advances (previously reported as deferred revenues) to other accrued liabilities ( $1.0 billion at June 29, 2019 ). The cumulative effect of adoption at September 29, 2018 and the impact at June 29, 2019 (had we not applied the new revenue guidance) on the Condensed Consolidated Balance Sheet is as follows: September 29, 2018 June 29, 2019 Fiscal 2018 Ending Balances as Reported Effect of Adoption Q1 2019 Opening Balances Balances Assuming Historical Accounting Impact of New Revenue guidance Q3 2019 Ending Balances as Reported Assets Receivables - current/non-current $ 11,262 $ (241 ) $ 11,021 $ 18,450 $ (157 ) $ 18,293 Film and television costs and advances - current/non-current 9,202 48 9,250 27,031 47 27,078 Liabilities Accounts payable and other accrued liabilities 9,479 1,039 10,518 16,488 1,159 17,647 Deferred revenue and other 4,591 (1,082 ) 3,509 5,888 (1,158 ) 4,730 Deferred income taxes 3,109 (34 ) 3,075 10,429 (25 ) 10,404 Equity 52,832 (116 ) 52,716 96,444 (88 ) 96,356 The impact on the Condensed Consolidated Statement of Income for the quarter and nine months ended June 29, 2019 , due to the adoption of the new revenue guidance is as follows: Quarter Ended June 29, 2019 Nine Months Ended June 29, 2019 Results Assuming Historical Accounting Impact of New Revenue guidance Reported Results Assuming Historical Accounting Impact of New Revenue guidance Reported Revenues $ 20,250 $ (5 ) $ 20,245 $ 50,260 $ 210 $ 50,470 Cost and Expenses (17,437 ) (48 ) (17,485 ) (40,730 ) (174 ) (40,904 ) Income Taxes (407 ) 12 (395 ) (2,679 ) (8 ) (2,687 ) Net Income 2,023 (41 ) 1,982 10,351 28 10,379 The most significant impacts were at the Studio Entertainment, Parks, Experiences and Products and Media Networks segments. For the quarter ended June 29, 2019, Parks, Experiences and Products was impacted by the deferral of revenues related to sales of vacation club properties and Media Networks was impacted by a change in the timing of revenue recognition on contracts with minimum guarantees. For the nine months ended June 29, 2019, Studio Entertainment was impacted by a change in the timing of revenue recognition related to film content licensing agreements with multiple availability windows. Parks, Experiences and Products was impacted by the deferral of revenues related to sales of vacation club properties and a change in the timing of revenue recognition on contracts with minimum guarantees. Media Networks was impacted by a change in the timing of revenue recognition on contracts with minimum guarantees. Summary of Significant Revenue Recognition Accounting Policies The Company generates revenue from the sale of both services and products. Revenue is recognized when control of the services or products is transferred to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for the services or products. The Company has three broad categories of service revenues: licenses of rights to use our intellectual property, sales to guests at our Parks and Experiences businesses and sales of ad time/space. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue guidance defines two types of licenses of intellectual property (“IP”): IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters, visual and literary properties at the Parks, Experiences and Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows: • Affiliate fees - Fees charged to affiliates (i.e., MVPDs or television stations) for the right to deliver our television network programming on a continuous basis to their customers are recognized as the programming is provided based on contractually specified per subscriber rates and the actual number of the affiliate’s customers receiving the programming. For affiliate contracts with fixed license fees, the fees are recognized ratably over the contract term. If an affiliate contract includes a minimum guaranteed license fee, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned. • Subscription fees - Fees charged to customers/subscribers for our streaming services are recognized ratably over the term of the subscription. • Advertising - Sales of advertising time/space on our television networks, digital platforms and television stations are recognized as revenue, net of agency commissions, when commercials are aired. For contracts that contain a guaranteed number of impressions, revenues are recognized based on impressions delivered. When the guaranteed number of impressions is not met (“ratings shortfall”), revenues are not recognized for the ratings shortfall until the additional impressions are delivered. • Theme park admissions - Sales of theme park tickets are recognized when the tickets are used. Sales of annual passes are recognized ratably over the period for which the pass is available for use. • Resorts and vacations - Sales of hotel room nights and cruise vacations and rentals of vacation club properties are recognized as the services are provided to the guest. Sales of vacation club properties are recognized when title to the property transfers to the customer. • Merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts, cruise ships and Disney Stores are recognized at the time of sale. Sales from our branded internet shopping sites and to wholesalers are recognized upon delivery. We estimate returns and customer incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. • TV/SVOD distribution licensing - Fixed license fees charged for the right to use our television and motion picture productions are recognized as revenue when the content is available for use by the licensee. License fees based on the underlying sales of the licensee are recognized as revenue as earned based on the contractual royalty rate applied to the licensee sales. For TV/SVOD licenses that include multiple titles with a fixed license fee across all titles, each title is considered a separate performance obligation. The fixed license fee is allocated to each title at contract inception and the allocated license fee is recognized as revenue when the title is available for use by the licensee. When the license contains a minimum guaranteed license fee across all titles, the license fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee is exceeded, revenue is recognized as earned based on the licensee’s underlying sales. TV/SVOD distribution contracts may limit the licensee’s use of a title to certain defined periods of time during the contract term. In these instances, each period of availability is generally considered a separate performance obligation. For these contracts, the fixed license fee is allocated to each period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized at the start of each availability period when the content is made available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. • Theatrical distribution licensing - Fees charged for licensing of our motion pictures to theatrical distributors are recognized as revenue based on the contractual royalty rate applied to the distributor’s underlying sales from exhibition of the film. • Merchandise licensing - Fees charged for the use of our trade names and characters in connection with the sale of a licensee’s products are recognized as revenue as earned based on the contractual royalty rate applied to the licensee’s underlying product sales. For licenses with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual royalties earned (“shortfall”) is recognized straight-line over the remaining license period once an expected shortfall is probable. • Home entertainment - Sales of our motion pictures to retailers and distributors in physical formats (DVD and Blu-ray) are recognized as revenue on the later of the delivery date or the date that the product can be sold by retailers. We reduce home entertainment revenues for estimated future returns of merchandise and sales incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. Sales of our motion pictures in electronic formats are recognized as revenue when the product is available for use by the consumer. • Taxes - Taxes collected from customers and remitted to governmental authorities are excluded from revenue. • Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue and the related shipping expenses are recorded in cost of products upon delivery of the product to the consumer. The following table presents our revenues by segment and major source: Quarter Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,564 $ — $ — $ 993 $ (108 ) $ 4,449 Advertising 1,874 — — 1,489 — 3,363 Theme park admissions — 1,956 — — — 1,956 Resort and vacations — 1,610 — — — 1,610 Retail and wholesale sales of merchandise, food and beverage — 1,877 — — — 1,877 TV/SVOD distribution licensing 1,150 — 746 218 (629 ) 1,485 Theatrical distribution licensing — — 2,240 — — 2,240 Merchandise licensing — 631 126 12 — 769 Home entertainment — — 432 24 — 456 Other 125 501 292 1,122 — 2,040 Total revenues $ 6,713 $ 6,575 $ 3,836 $ 3,858 $ (737 ) $ 20,245 Quarter Ended June 30, 2018 (1) Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 2,981 $ — $ — $ 351 $ — $ 3,332 Advertising 1,677 1 — 310 — 1,988 Theme park admissions — 1,834 — — — 1,834 Resort and vacations — 1,530 — — — 1,530 Retail and wholesale sales of merchandise, food and beverage — 1,800 — — — 1,800 TV/SVOD distribution licensing 822 — 560 22 (148 ) 1,256 Theatrical distribution licensing — — 1,505 — — 1,505 Merchandise licensing — 560 116 18 — 694 Home entertainment — — 388 29 — 417 Other 54 411 311 97 — 873 Total revenues $ 5,534 $ 6,136 $ 2,880 $ 827 $ (148 ) $ 15,229 (1) Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. Nine Months Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 9,873 $ — $ — $ 1,728 $ (120 ) $ 11,481 Advertising 5,521 3 — 2,360 — 7,884 Theme park admissions — 5,657 — — — 5,657 Resort and vacations — 4,644 — — — 4,644 Retail and wholesale sales of merchandise, food and beverage — 5,767 — — — 5,767 TV/SVOD distribution licensing 2,617 — 2,069 275 (1,035 ) 3,926 Theatrical distribution licensing — — 3,365 — — 3,365 Merchandise licensing — 2,009 406 40 — 2,455 Home entertainment — — 1,127 73 — 1,200 Other 306 1,490 850 1,445 — 4,091 Total revenues $ 18,317 $ 19,570 $ 7,817 $ 5,921 $ (1,155 ) $ 50,470 Nine Months Ended June 30, 2018 (1) Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 8,891 $ — $ — $ 1,043 $ — $ 9,934 Advertising 5,283 5 — 1,022 — 6,310 Theme park admissions — 5,356 — — — 5,356 Resort and vacations — 4,454 — — — 4,454 Retail and wholesale sales of merchandise, food and beverage — 5,566 — — — 5,566 TV/SVOD distribution licensing 2,205 — 1,698 73 (512 ) 3,464 Theatrical distribution licensing — — 3,630 — — 3,630 Merchandise licensing — 1,963 426 54 — 2,443 Home entertainment — — 1,220 80 — 1,300 Other 218 1,222 914 317 — 2,671 Total revenues $ 16,597 $ 18,566 $ 7,888 $ 2,589 $ (512 ) $ 45,128 (1) Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. The following table presents our revenues by segment and primary geographical markets: Quarter Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 6,338 $ 4,911 $ 1,728 $ 1,533 $ (601 ) $ 13,909 Europe 295 776 889 473 (80 ) 2,353 Asia Pacific 63 837 874 1,187 (56 ) 2,905 Latin America 17 51 345 665 — 1,078 Total revenues $ 6,713 $ 6,575 $ 3,836 $ 3,858 $ (737 ) $ 20,245 Nine months ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 17,464 $ 14,742 $ 3,840 $ 2,078 $ (970 ) $ 37,154 Europe 585 2,261 1,878 846 (118 ) 5,452 Asia Pacific 195 2,399 1,548 1,566 (67 ) 5,641 Latin America 73 168 551 1,431 — 2,223 Total revenues $ 18,317 $ 19,570 $ 7,817 $ 5,921 $ (1,155 ) $ 50,470 Revenues recognized in the current period from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on theatrical and TV/SVOD distribution licensee sales on titles made available to the licensee in previous reporting periods. For the quarter ended June 29, 2019 , $0.6 billion was recognized related to performance obligations satisfied prior to March 31, 2019. For the nine months ended June 29, 2019 , $0.9 billion was recognized related to performance obligations satisfied prior to September 30, 2018. As of June 29, 2019 , revenue for unsatisfied performance obligations expected to be recognized in the future is $16 billion , which primarily relates to content to be delivered in the future under existing agreements with television station affiliates and TV/SVOD licensees. Of this amount, we expect to recognize approximately $2 billion in the remainder of fiscal 2019, $6 billion in fiscal 2020, $4 billion in fiscal 2021 and $5 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee. Payment terms vary by the type and location of our customers and the products or services offered. For certain products or services and customer types, we require payment before the products or services are provided to the customer; in other cases, after appropriate credit evaluations, payment is due in arrears. Advertising contracts, which are generally short term, are billed monthly with payments generally due within 30 days. Payments due under affiliate arrangements are calculated monthly and are generally due within 30 days of month end. Home entertainment terms generally include payment within 60 to 90 days of availability date to the customer. Licensing payment terms vary by contract but are generally collected in advance or over the license term. The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties (see Note 13). These receivables are discounted to present value at an appropriate discount rate at contract inception, and the related revenues are recognized at the discounted amount. When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears is recognized as accounts receivable. Deferred revenues are recognized as (or when) the Company performs under the contract. Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: June 29, September 30, Contract assets $ 99 $ 89 Accounts Receivable Current 14,414 8,553 Non-current 2,008 1,640 Allowance for doubtful accounts (265 ) (226 ) Deferred revenues Current 4,135 2,926 Non-current 581 609 Contract assets relate to certain multi-season TV/SVOD licensing contracts. Activity for the quarter and nine months ended June 29, 2019 related to contract assets and the allowance for doubtful accounts was not material. Deferred revenue primarily relates to non-refundable consideration received in advance for (i) licensing contracts, theme park annual passes, theme park tickets and vacation packages and (ii) the deferral of advertising revenues due to ratings shortfalls. The increase in the deferred revenue balance for the nine months ended June 29, 2019 was primarily due to the receipt of additional prepaid park admissions, non-refundable travel deposits and advances on certain licensing arrangements, as well as the acquisition of 21CF and consolidation of Hulu (see Note 4) on March 20, 2019. The acquisition of 21CF and consolidation of Hulu increased deferred revenues by $0.7 billion , of which $0.4 billion was recognized during the quarter ended June 29, 2019. For the quarter and nine months ended June 29, 2019 , the Company recognized revenues of $0.3 billion and $2.5 billion , respectively, primarily related to theme park admissions and vacation packages included in the deferred revenue balance at September 30, 2018. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Twenty-First Century Fox On March 20, 2019 , the Company acquired the outstanding capital stock of 21CF, a diversified global media and entertainment company. Prior to the acquisition, 21CF and a newly-formed subsidiary of 21CF (New Fox) entered into a separation agreement, pursuant to which 21CF transferred to New Fox a portfolio of 21CF’s news, sports and broadcast businesses and certain other assets. 21CF retained all of the assets and liabilities not transferred to New Fox, including the Twentieth Century Fox film and television studios, certain cable networks and 21CF’s international TV businesses; these remaining assets and businesses are held directly or indirectly by the acquired 21CF entity. The acquisition purchase price totaled $69.5 billion , of which the Company paid $35.7 billion in cash and $33.8 billion in Disney shares ( 307 million shares at a price of $110.00 per share). We acquired 21CF to enhance the Company’s position as a premier, global entertainment company by increasing our portfolio of creative assets and branded content to be monetized through our film and television studio, theme parks and direct-to-consumer offerings. In connection with the acquisition, outstanding 21CF performance stock units and restricted stock units were either vested upon closing of the acquisition or replaced with new restricted stock units (which require additional service for vesting). The purchase price for 21CF includes $361 million related to 21CF awards that were settled or replaced in connection with the acquisition, and the Company recognized compensation expense of $164 million related to awards that were accelerated to vest upon closing of the acquisition. Additionally, compensation expense of $219 million related to awards that were replaced with new restricted stock units will be recognized over the post-acquisition service period of up to approximately two years. As part of the 21CF acquisition, the Company acquired 21CF’s 30% interest in Hulu increasing our ownership to 60% . As a result, the Company began consolidating Hulu and recorded a one-time gain of $4.8 billion (Hulu Gain) from remeasuring our initial 30% interest to its estimated fair value, which was determined based on a discounted cash flow analysis. On April 15, 2019, Hulu redeemed Warner Media LLC’s (WM) 10% interest in Hulu for $1.4 billion . The redemption was funded by the Company and Hulu’s remaining noncontrolling interest holder, NBC Universal (NBCU). This resulted in the Company’s and NBCU’s interests in Hulu increasing to 67% and 33% , respectively. NBCU’s participation in the redemption resulted in an update to the Company’s estimated fair value of its initial 30% interest decreasing the Hulu Gain by $123 million . On May 13, 2019, the Company entered into a put/call agreement with NBCU that provided the Company with full operational control of Hulu. Under the agreement, beginning in January 2024, NBCU has the option to require the Company to purchase NBCU’s interest in Hulu and the Company has the option to require NBCU to sell its interest in Hulu, based on NBCU’s equity ownership percentage of the greater of Hulu’s then fair value or $27.5 billion . Hulu’s future equity capital calls are limited to $1.5 billion in the aggregate each year, with any excess funding requirements funded with member loans. NBCU has the right, but not the obligation, to fund its proportionate share of future capital calls. If NBCU elects not to fund its share of future equity capital calls its ownership will be diluted. However, Disney has agreed that NBCU’s ownership interest in Hulu cannot be diluted below 21% . Additionally, the agreement provides NBCU with 50% of the tax benefit related to the exercise of the put or call. NBCU’s interest is classified as a redeemable noncontrolling interest on the Company’s Condensed Consolidated Balance Sheet and will generally not be allocated Hulu’s losses as it is required to be carried at a minimum value representing its fair value as of the May 13, 2019 agreement date accreted to its January 2024 redemption value. The accretion of NBCU’s interest will be based on an interest method and recorded in “Net income attributable to noncontrolling interests” on the Consolidated Statement of Income. At June 29, 2019, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $7.8 billion . Upon closing of the 21CF acquisition, the Company exchanged new Disney notes for outstanding notes issued by 21 st Century Fox America, Inc. (21CFA Notes) with a principal balance of $16.8 billion (see Note 6). The Company also assumed 21CF commitments totaling $31 billion , of which $22 billion relate to the RSNs (see Discontinued Operations below). The remaining commitments are primarily for sports and entertainment programming rights. In addition, we entered into commitments with New Fox totaling $0.3 billion , primarily for the lease of production facilities and office space. Hulu commitments total $3.4 billion and relate primarily to programming rights. The Company is required to allocate the 21CF purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values. The excess of the purchase price over those fair values is recorded as goodwill. The Company is in the process of obtaining additional information necessary to finalize the valuation of the assets acquired and liabilities assumed including income tax related amounts. Therefore, the preliminary fair values set forth below are subject to adjustment as additional information is obtained and the valuations are completed. The following table summarizes our preliminary allocation of the March 20, 2019 purchase price: Initial Allocation Valuation Adjustments Updated Allocation Cash and cash equivalents $ 25,666 $ — $ 25,666 Receivables 4,746 154 4,900 Film and television costs 20,120 (2,135 ) 17,985 Investments 1,471 53 1,524 Intangible assets 20,385 (1,325 ) 19,060 Net assets held for sale 11,704 (414 ) 11,290 Accounts payable and other liabilities (10,753 ) (1,357 ) (12,110 ) Borrowings (21,723 ) — (21,723 ) Deferred income taxes (6,497 ) 975 (5,522 ) Other net liabilities acquired (3,865 ) 1,060 (2,805 ) Noncontrolling interests (10,638 ) 96 (10,542 ) Goodwill 43,751 2,770 46,521 Fair value of net assets acquired 74,367 (123 ) 74,244 Less: Disney’s previously held 30% interest in Hulu (4,860 ) 123 (4,737 ) Total purchase price $ 69,507 $ — $ 69,507 These changes to the preliminary values, with a corresponding net increase to goodwill, are based on more detailed information obtained about the specific assets and liabilities acquired. The changes made to the initial amounts during the quarter ended June 29, 2019 resulted in no material changes to the amortization expense recorded in the previous quarter. Intangible assets primarily consist of MVPD agreements, advertising networks and trade names with estimated useful lives ranging from 2 to 40 years and a weighted average life of 12 years . The goodwill reflects the value to Disney of increasing our global portfolio of creative assets and branded content to be monetized through our film and television studio, theme parks and direct-to-consumer offerings. The goodwill is not deductible for tax purposes. The fair value of investments acquired in the acquisition include $1.2 billion of equity method investments and $0.3 billion of equity investments. Equity method investments primarily consist of a 50% interest in Endemol Shine Group, a global multi-platform content provider and a 30% interest in Tata Sky Limited, a satellite operator in India. The fair value of the assets acquired includes current trade receivables of $4.9 billion . The gross amount due under the contracts is $5.1 billion , of which $0.2 billion is expected to be uncollectible. For the nine months ended June 29, 2019, the Company incurred $258 million of acquisition-related expenses, of which $158 million is included in Selling, general, administrative and other, and $100 million related to financing fees is included in Interest expense, net in the Company’s Condensed Consolidated Statement of Income. The following table summarizes the revenues and net loss from continuing operations (including purchase accounting amortization and the impact of intercompany eliminations and excluding restructuring and impairment charges) of 21CF and Hulu included in the Company’s Condensed Consolidated Statement of Income since the date of acquisition for the quarter and nine months ended June 29, 2019: Quarter Nine Months 21CF: Revenues $ 3,490 $ 3,863 Net loss from continuing operations (556 ) (611 ) Hulu: Revenues $ 906 $ 1,039 Net loss from continuing operations (357 ) (416 ) The following pro forma summary presents consolidated information of the Company as if the acquisition of 21CF and consolidation of Hulu had occurred on October 1, 2017: Nine Months Ended June 29, June 30, Revenues $ 59,017 $ 58,223 Net income 6,259 11,800 Net income attributable to Disney 6,147 11,971 Earnings per share attributable to Disney: Diluted $ 3.22 $ 6.58 Basic 3.24 6.62 These pro forma results include adjustments for purposes of consolidating the historical financial results of 21CF and Hulu (net of adjustments to eliminate transactions between Disney and 21CF, Disney and Hulu and Hulu and 21CF). These pro formas also include $2.7 billion and $2.8 billion (including $0.4 billion and $0.6 billion of amortization related to the RSNs) for the nine months ended June 29, 2019 and June 30, 2018, respectively, to reflect the preliminary estimate of incremental amortization as a result of recording film and television programming and production costs and finite lived intangible assets at fair value. Interest expense of $0.3 billion is included to reflect the cost of borrowings to finance the 21CF acquisition in both the nine months ended June 29, 2019 and June 30, 2018. Additionally, the nine months ended June 30, 2018 pro forma earnings include the Hulu Gain, compensation expense of $0.2 billion related to 21CF equity awards that were accelerated to vest upon closing of the acquisition, and $0.4 billion of acquisition-related expenses. These amounts were recognized by Disney and 21CF in the nine months ended June 29, 2019, but have been excluded from the nine months ended June 29, 2019 pro forma earnings. The pro forma results exclude a $10.8 billion gain on sale and $0.3 billion of equity earnings recorded by 21CF for the nine months ended June 29, 2019 and June 30, 2018, respectively, related to its 39% interest in Sky plc, which was sold by 21CF in October 2018. The pro forma results include $0.6 billion and $0.5 billion of net income recorded by 21CF for the nine months ended June 29, 2019 and June 30, 2018, respectively, related to the 21CF businesses that we are required to divest as a condition of the acquisition (see the Assets to be Disposed and Discontinued Operations section below). These pro forma results do not represent financial results that would have been realized had the acquisition actually occurred on October 1, 2017, nor are they intended to be a projection of future results. Assets to be Disposed and Discontinued Operations Pursuant to a consent decree with the U.S. Department of Justice (DOJ), we are required to sell 21CF’s twenty-two RSNs (the RSN Divestiture). The DOJ must approve the purchaser(s) and terms and conditions of the RSN Divestiture and file a motion with the federal court requesting the court to approve the consent decree. The sale must be completed within five days of notice of the federal court approving the consent decree, with the possibility that the DOJ can grant extensions of time up to 90 days. On May 3, 2019, the Company entered into a definitive agreement with Sinclair Broadcast Group, Inc. to sell twenty-one of the RSNs (not including the YES Network), for a sales price of approximately $10 billion . Completion of the transaction is subject to customary closing conditions, including the approval of the DOJ. Additionally, the Company has agreed with Conselho Administrativo de Defesa Economica (CADE) to sell 21CF’s sports media operations in Brazil (the Brazil Divestiture) and agreed with the Instituto Federal de Telecomunicaciones (IFT) to sell 21CF’s sports media operations in Mexico (the Mexico Divestiture). The Company will have 180 days from the date of the 21CF acquisition to complete the Brazil Divestiture. The Company will have six months, with the possibility that the IFT can grant extensions of time up to another six months, for the Mexico Divestiture. CADE and the IFT must approve the purchaser(s) and terms and conditions of the Brazil and Mexico Divestitures, respectively. The European Commission approved the acquisition on the condition that the Company divest its interests in certain cable channels in the European Economic Area that are controlled by A+E, including History, H2, Crime & Investigation, Blaze and Lifetime (the EEA Channels). The Company divested its interests in the entities that operate the EEA Channels on April 12, 2019. The EEA Channels are not presented as discontinued operations. The RSNs and the Brazil and Mexico sports media operations are presented as assets held for sale and discontinued operations in the Condensed Consolidated Balance Sheets and Statements of Income, respectively. The major classes of assets and liabilities of the RSNs and the Brazil and Mexico sports media operations at June 29, 2019 classified as held for sale on our Condensed Consolidated Balance Sheets are presented below and are subject to change based on developments during the sales process. Cash $ 591 Receivables and other current assets 964 Television costs and advances 337 Total current assets classified as held for sale 1,892 Film and television costs 1,704 Property and equipment and other assets 69 Intangible assets, net 7,748 Goodwill 3,070 Total assets classified as held for sale $ 14,483 Accounts payable and other accrued liabilities $ 246 Current portion of borrowings 44 Deferred revenue and other 3 Total current liabilities classified as held for sale 293 Borrowings 1,057 Other long-term liabilities 241 Redeemable noncontrolling interests 1,055 Total liabilities classified as held for sale $ 2,646 Goodwill The changes in the carrying amount of goodwill for the nine months ended June 29, 2019 are as follows: Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Parks, Experiences and Products Direct-to-Consumer & International Unallocated Total Balance at Sept. 29, 2018 $ 19,388 $ 291 $ 7,164 $ 4,426 $ — $ — $ — $ 31,269 Segment recast (1) (3,399 ) (291 ) (70 ) (4,426 ) 4,487 3,699 — — Acquisitions (2) — — — — — — 46,521 46,521 Other, net — — 4 — — 7 — 11 Balance at June 29, 2019 $ 15,989 $ — $ 7,098 $ — $ 4,487 $ 3,706 $ 46,521 $ 77,801 (1) Represents the reallocation of goodwill as a result of the Company recasting its segments (see Note 2). (2) Represents the acquisition of 21CF and consolidation of Hulu. |
Other Income Other Income (Note
Other Income Other Income (Notes) | 9 Months Ended |
Jun. 29, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income Other income is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Hulu Gain (1) $ (123 ) $ — $ 4,794 $ — Insurance recoveries related to legal matters — — 46 38 Gain on the sale of property rights and other — — — 56 Other income $ (123 ) $ — $ 4,840 $ 94 (1) The quarter ended June 29, 2019, reflects an adjustment to the amount recognized in the second quarter of fiscal 2019. See Note 4 for further details. |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Borrowings | 9 Months Ended |
Jun. 29, 2019 | |
Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings | Cash, Cash Equivalents, Restricted Cash and Borrowings Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. June 29, September 29, Cash and cash equivalents $ 6,728 $ 4,150 Restricted cash included in: Other current assets 1 1 Other assets 37 4 Cash included in current assets held for sale 591 — Total cash, cash equivalents and restricted cash in the statement of cash flows $ 7,357 $ 4,155 Borrowings During the nine months ended June 29, 2019 , the Company’s borrowing activity was as follows: September 29, Borrowings Payments Borrowings Assumed in Acquisition of 21CF Other Activity June 29, Commercial paper with original maturities less than three months (1) $ 50 $ 819 $ — $ — $ 19 $ 888 Commercial paper with original maturities greater than three months 955 4,110 (1,956 ) — 17 3,126 U.S. and European notes 17,942 — (2,250 ) 21,174 (66 ) 36,800 Credit facilities to acquire 21CF — 31,100 (16,100 ) — — 15,000 Asia Theme Parks borrowings 1,145 — (48 ) — 44 1,141 Foreign currency denominated debt and other (2) 782 248 (641 ) 549 341 1,279 20,874 36,277 (20,995 ) 21,723 355 58,234 Liabilities held for sale — 50 (18 ) 1,069 — 1,101 $ 20,874 $ 36,327 $ (21,013 ) $ 22,792 $ 355 $ 59,335 (1) Borrowings and reductions of borrowings are reported net. (2) The other activity is due to market value adjustments for debt with qualifying hedges, partially offset by the impact of changes in foreign currency exchange rates. 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 2020 $ 6,000 $ — $ 6,000 Facility expiring March 2021 2,250 — 2,250 Facility expiring March 2023 4,000 — 4,000 Total $ 12,250 $ — $ 12,250 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 & Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on June 29, 2019 by a significant margin. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2023, which if utilized, reduces available borrowings under this facility. As of June 29, 2019 , the Company has $1.2 billion of outstanding letters of credit, of which none were issued under this facility. Outstanding letters of credit include letters of credit assumed in the acquisition of 21CF primarily in support of international sports programming rights. U.S. and European Notes On March 20, 2019, the Company assumed public debt with a fair value of $21.2 billion (principal balance of $17.4 billion ) upon the completion of the 21CF acquisition. The debt has maturities ranging from 1 to 77 years and stated rates ranging from 3.00% to 9.50% . On March 20, 2019, 96% ( $16.8 billion ) of the assumed debt was exchanged for senior notes of TWDC, with essentially the same terms. The exchange was with qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and outside the United States with investors who are not U.S. persons pursuant to Regulation S under the Securities Act. At June 29, 2019 , the weighted-average stated and effective interest rates were 5.94% and 4.11% , respectively. Credit Facilities to Acquire 21CF On March 20, 2019, the Company borrowed $31.1 billion under two 364-day unsecured bridge loan facilities with a bank syndicate to fund the cash component of the 21CF acquisition. On March 21, 2019, the Company repaid one bridge loan facility in the amount of $16.1 billion , utilizing cash acquired in the 21CF transaction, and terminated the facility. The remaining 364-day unsecured bridge loan facility has $15.0 billion outstanding and is anticipated to be paid down with the after-tax net proceeds from the divestiture of the RSNs. The $15.0 billion loan facility bears interest at LIBOR plus 0.875% ( 3.26% as of June 29, 2019 ). Foreign Currency Denominated Debt and Other On March 20, 2019 upon the completion of the 21CF acquisition, the Company assumed a term loan and unsecured credit facilities with outstanding balances totaling $211 million and a weighted-average stated interest rate of approximately 7.30% . On March 20, 2019, the Company consolidated Hulu, which had a $338 million term loan that was repaid on June 4, 2019. Liabilities Held for Sale On March 20, 2019, as part of the 21CF acquisition, the Company assumed debt related to The Yankees Entertainment and Sports Network (the YES Network). The YES Network has a $1.6 billion secured revolving credit facility and term loan facility that expires in December 2023 . As of June 29, 2019 , outstanding borrowings under the term loan facility and secured revolving credit facility were $1.1 billion and $50 million , respectively. The credit facilities bear interest at rates that are reset quarterly and are based on the leverage ratio of the YES Network. The credit facilities contain restrictive covenants and are collateralized by a substantial portion of assets of the YES Network. The YES Network is one of the RSNs that is held for sale (see Note 4). 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, another $1.1 billion is available beginning in May 2022 and another $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 loans and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees. Interest expense, net Interest expense, interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Interest expense $ (472 ) $ (175 ) $ (833 ) $ (493 ) Interest and investment income 34 32 139 78 Net periodic pension and postretirement benefit costs (other than service costs) 27 — 77 — Interest expense, net $ (411 ) $ (143 ) $ (617 ) $ (415 ) Interest and investment income includes gains and losses on 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 | 9 Months Ended |
Jun. 29, 2019 | |
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. The Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks. The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of June 29, 2019 and September 29, 2018 : June 29, 2019 September 29, 2018 Cash and cash equivalents $ 825 $ 834 Other current assets 392 400 Total current assets 1,217 1,234 Parks, resorts and other property 8,860 8,973 Other assets 86 103 Total assets (1) $ 10,163 $ 10,310 Current liabilities $ 653 $ 921 Long-term borrowings 1,141 1,106 Other long-term liabilities 367 382 Total liabilities (1) $ 2,161 $ 2,409 (1) Total assets of the Asia Theme Parks were $8 billion at both June 29, 2019 and September 29, 2018 including parks, resorts and other property of $7 billion . Total liabilities of the Asia Theme Parks were $2 billion at both June 29, 2019 and September 29, 2018 . 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 nine months ended June 29, 2019 : June 29, 2019 Revenues $ 2,794 Costs and expenses (2,688 ) Equity in the loss of investees (12 ) Asia Theme Parks’ royalty and management fees of $131 million for the nine months ended June 29, 2019 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests. International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended June 29, 2019 were $656 million generated from operating activities, $635 million used in investing activities and $20 million in cash from financing activities. Approximately two thirds of cash flows generated from operating activities and 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 a 53% and a 47% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have both provided loans to Hong Kong Disneyland Resort with outstanding balances of $145 million and $97 million , respectively. The interest rate is three month HIBOR plus 2% , and the maturity date is September 2025 . The Company’s loan is eliminated in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ( $269 million ), which bears interest at a rate of three month HIBOR plus 1.25% and matures in December 2023 . There is no outstanding balance under the line of credit at June 29, 2019 . Shanghai Disney Resort Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with loans totaling $821 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 $152 million due from Shanghai Disney Resort primarily related to royalties. 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 June 29, 2019 . These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 7.2 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 $0.2 billion ) line of credit bearing interest at 8% . There is no outstanding balance under the line of credit at June 29, 2019 . |
Income Taxes Income Tax
Income Taxes Income Tax | 9 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes U.S. Tax Cuts and Jobs Act In December 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 was 24.5% . The Company’s statutory federal tax rate is 21.0% for fiscal 2019 (and thereafter). • The Company remeasured its U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes are realized (either 24.5% if in 2018 or 21.0% thereafter) (Deferred Remeasurement). The Company recognized a benefit of approximately $2.2 billion from the Deferred Remeasurement, the majority of which was recognized 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 effective 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 $0.4 billion , the majority of which was recognized 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 is eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions that commenced after September 27, 2017 and that are placed in service by the end of fiscal 2022. The immediate deduction phases out for assets placed in service in fiscal years 2023 through 2027. • Beginning in fiscal 2019: ◦ The domestic production activity deduction is eliminated. ◦ 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% . ◦ Certain foreign earnings will be taxed at a minimum effective rate of approximately 13% , which increases to approximately 16% in 2025. The Company ’ s policy is to expense the tax on these earnings in the period the earnings are taxable in the U.S. Intra-Entity Transfers of Assets Other Than Inventory At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance that requires recognition of the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs instead of when the asset is ultimately sold to an outside party. In the first quarter of fiscal 2019, the Company recorded a $0.1 billion deferred tax asset with an offsetting increase to retained earnings. Unrecognized Tax Benefits During the nine months ended June 29, 2019 , the Company increased its gross unrecognized tax benefits by $2.1 billion from $0.6 billion to $2.7 billion (before interest and penalties). The increase includes $1.9 billion related to 21CF. In addition, interest and penalty reserves related to 21CF unrecognized tax benefits are $0.7 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 $0.2 billion , of which $0.1 billion would reduce our income tax expense and effective tax rate if recognized. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 9 Months Ended |
Jun. 29, 2019 | |
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 Nine Months Ended Quarter Ended Nine Months Ended Jun. 29, Jun. 30, Jun. 29, Jun. 30, Jun. 29, Jun. 30, Jun. 29, Jun. 30, Service costs $ 89 $ 87 $ 255 $ 262 $ 2 $ 3 $ 6 $ 8 Other costs (benefits): Interest costs 152 122 441 367 17 15 50 45 Expected return on plan assets (250 ) (225 ) (729 ) (677 ) (14 ) (13 ) (42 ) (39 ) Amortization of prior-year service costs 3 3 10 11 — — — — Recognized net actuarial loss 65 86 196 261 — 3 — 10 Total other costs (benefits) (30 ) (14 ) (82 ) (38 ) 3 5 8 16 Net periodic benefit cost $ 59 $ 73 $ 173 $ 224 $ 5 $ 8 $ 14 $ 24 At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance on the presentation of the components of net periodic pension and postretirement benefit cost (“net periodic benefit cost”). This guidance requires the Company to present the service cost component of net periodic benefit cost in the same line items on the statement of operations as other compensation costs of the related employees (i.e. “Costs and expenses” in the Condensed Consolidated Statement of Income). All of the other components of net periodic benefit cost (“other costs / benefits”) are presented as a component of “Interest expense, net” in the Condensed Consolidated Statement of Income (see Note 6). The other costs/benefits in fiscal 2018 were not material and are reported in Costs and expenses. In connection with our acquisition of 21CF, we assumed net pension obligations of $237 million ( $824 million in obligations and $587 million in plan assets), which is anticipated to have an immaterial impact on our fiscal 2019 Consolidated Statement of Income. During the nine months ended June 29, 2019 , the Company made $712 million of contributions to its pension and postretirement medical plans. The Company currently expects to make additional contributions to its pension and postretirement medical plans during the remainder of fiscal 2019 of approximately $250 million . However, final funding amounts for fiscal 2019 will be assessed based on our January 1, 2019 funding actuarial valuation, which will be available by the end of the fourth quarter of fiscal 2019 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 29, 2019 | |
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 Nine Months Ended June 29, June 30, June 29, June 30, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,802 1,491 1,607 1,502 Weighted average dilutive impact of Awards 12 7 9 8 Weighted average number of common and common equivalent shares outstanding (diluted) 1,814 1,498 1,616 1,510 Awards excluded from diluted earnings per share 4 12 10 12 |
Equity
Equity | 9 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Equity | Equity The Company paid the following dividends in fiscal 2019 and 2018 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.88 $1.6 billion Fourth quarter of Fiscal 2019 First Half of 2019 $0.88 $1.3 billion Second quarter of Fiscal 2019 Second Half of 2018 $0.84 $1.2 billion Fourth Quarter of Fiscal 2018 First Half of 2018 $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half of 2017 As a result of the acquisition of 21CF, TWDC became the parent entity of both 21CF and TWDC Enterprises 18 Corp. (formerly known as The Walt Disney Company and referred to herein as Legacy Disney). TWDC issued 307 million shares of common stock to acquire 21CF (see Note 4), and all the outstanding shares of Legacy Disney (other than shares of Legacy Disney held in treasury that were not held on behalf of a third party) were converted on a one-for-one basis into new publicly traded shares of TWDC . On March 20, 2019, Legacy Disney terminated its share repurchase program, and 1.4 billion treasury shares were canceled, which resulted in a decrease to common stock and retained earnings of $17.6 billion and $49.1 billion , respectively. The cost of treasury shares canceled was allocated to common stock based on the ratio of treasury shares to total shares outstanding, with the excess allocated to retained earnings. At June 29, 2019 , TWDC held 19 million treasury shares. TWDC’s authorized share capital consists of 4.6 billion common shares at $0.01 par value and 100 million preferred shares at $0.01 par value, both of which represent the same authorized capital structure in effect prior to the completion of the 21CF acquisition and as of September 29, 2018. As of September 29, 2018, Legacy Disney had 40 thousand preferred series B shares authorized with $0.01 par value, which were eliminated during the first quarter of fiscal 2019. 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 Third quarter of fiscal 2019 Balance at March 30, 2019 $ (5 ) $ 62 $ (4,163 ) $ (728 ) $ (4,834 ) Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period 6 34 (37 ) 48 51 Reclassifications of realized net (gains) losses to net income — (55 ) 69 — 14 Balance at June 29, 2019 $ 1 $ 41 $ (4,131 ) $ (680 ) $ (4,769 ) Third quarter of fiscal 2018 Balance at March 31, 2018 $ 24 $ (197 ) $ (4,690 ) $ (358 ) $ (5,221 ) Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period 1 296 — (286 ) 11 Reclassifications of realized net (gains) losses to net income — 26 96 — 122 Balance at June 30, 2018 $ 25 $ 125 $ (4,594 ) $ (644 ) $ (5,088 ) Nine months ended fiscal 2019 Balance at September 29, 2018 $ 24 $ 177 $ (4,323 ) $ (727 ) $ (4,849 ) Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period 1 (21 ) (18 ) 47 9 Reclassifications of net (gains) losses to net income — (116 ) 210 — 94 Reclassifications to retained earnings (24 ) 1 — — (23 ) Balance at June 29, 2019 $ 1 $ 41 $ (4,131 ) $ (680 ) $ (4,769 ) Nine months ended fiscal 2018 Balance at September 30, 2017 $ 15 $ (108 ) $ (4,906 ) $ (523 ) $ (5,522 ) Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period 10 150 24 (121 ) 63 Reclassifications of net (gains) losses to net income — 83 288 — 371 Balance at June 30, 2018 $ 25 $ 125 $ (4,594 ) $ (644 ) $ (5,088 ) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Third quarter of fiscal 2019 Balance at March 30, 2019 $ 1 $ (14 ) $ 984 $ 77 $ 1,048 Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period (3 ) (7 ) 8 5 3 Reclassifications of realized net (gains) losses to net income — 13 (16 ) — (3 ) Balance at June 29, 2019 $ (2 ) $ (8 ) $ 976 $ 82 $ 1,048 Third quarter of fiscal 2018 Balance at March 31, 2018 $ (10 ) $ 41 $ 1,778 $ 67 $ 1,876 Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period — (56 ) (2 ) 38 (20 ) Reclassifications of realized net (gains) losses to net income — (6 ) (24 ) — (30 ) Balance at June 30, 2018 $ (10 ) $ (21 ) $ 1,752 $ 105 $ 1,826 Nine months ended fiscal 2019 Balance at September 29, 2018 $ (9 ) $ (32 ) $ 1,690 $ 103 $ 1,752 Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period (2 ) 6 2 (5 ) 1 Reclassifications of net (gains) losses to net income — 27 (49 ) — (22 ) Reclassifications to retained earnings (1) 9 (9 ) (667 ) (16 ) (683 ) Balance at June 29, 2019 $ (2 ) $ (8 ) $ 976 $ 82 $ 1,048 Nine months ended fiscal 2018 Balance at September 30, 2017 $ (7 ) $ 46 $ 1,839 $ 116 $ 1,994 Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period (3 ) (44 ) (5 ) (11 ) (63 ) Reclassifications of net (gains) losses to net income — (23 ) (82 ) — (105 ) Balance at June 30, 2018 $ (10 ) $ (21 ) $ 1,752 $ 105 $ 1,826 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Third quarter of fiscal 2019 Balance at March 30, 2019 $ (4 ) $ 48 $ (3,179 ) $ (651 ) $ (3,786 ) Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period 3 27 (29 ) 53 54 Reclassifications of realized net (gains) losses to net income — (42 ) 53 — 11 Balance at June 29, 2019 $ (1 ) $ 33 $ (3,155 ) $ (598 ) $ (3,721 ) Third quarter of fiscal 2018 Balance at March 31, 2018 $ 14 $ (156 ) $ (2,912 ) $ (291 ) $ (3,345 ) Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period 1 240 (2 ) (248 ) (9 ) Reclassifications of realized net (gains) losses to net income — 20 72 — 92 Balance at June 30, 2018 $ 15 $ 104 $ (2,842 ) $ (539 ) $ (3,262 ) Nine months ended fiscal 2019 Balance at September 29, 2018 $ 15 $ 145 $ (2,633 ) $ (624 ) $ (3,097 ) Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period (1 ) (15 ) (16 ) 42 10 Reclassifications of net (gains) losses to net income — (89 ) 161 — 72 Reclassifications to retained earnings (1) (15 ) (8 ) (667 ) (16 ) (706 ) Balance at June 29, 2019 $ (1 ) $ 33 $ (3,155 ) $ (598 ) $ (3,721 ) Nine months ended fiscal 2018 Balance at September 30, 2017 $ 8 $ (62 ) $ (3,067 ) $ (407 ) $ (3,528 ) Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period 7 106 19 (132 ) — Reclassifications of net (gains) losses to net income — 60 206 — 266 Balance at June 30, 2018 $ 15 $ 104 $ (2,842 ) $ (539 ) $ (3,262 ) (1) At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ( $15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. 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 Nine Months Ended June 29, June 30, June 29, June 30, Cash flow hedges Primarily revenue $ 55 $ (26 ) $ 116 $ (83 ) Estimated tax Income taxes (13 ) 6 (27 ) 23 42 (20 ) 89 (60 ) Pension and postretirement medical expense Costs and expenses — (96 ) — (288 ) Interest expense, net (69 ) (210 ) — Estimated tax Income taxes 16 24 49 82 (53 ) (72 ) (161 ) (206 ) Total reclassifications for the period $ (11 ) $ (92 ) $ (72 ) $ (266 ) |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Jun. 29, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Stock options $ 21 $ 21 $ 64 $ 67 RSUs (1) 114 92 527 240 Total equity-based compensation expense (2) $ 135 $ 113 $ 591 $ 307 Equity-based compensation expense capitalized during the period $ 22 $ 17 $ 60 $ 54 (1) Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . (2) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $149 million and $716 million , respectively, as of June 29, 2019 . The weighted average grant date fair values of options granted during the nine months ended June 29, 2019 and June 30, 2018 were $28.74 and $28.01 , respectively. During the nine months ended June 29, 2019 , the Company made equity compensation grants consisting of 4.0 million stock options and 3.4 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company, together with, in some instances, certain of its directors and officers, is a defendant in various legal actions involving copyright, breach of contract and various other claims incident to the conduct of its businesses. Management does not believe that the Company has incurred a probable material loss by reason of any of those actions. 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, which have various maturities through 2037. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of June 29, 2019 , the remaining debt service obligation guaranteed by the Company was $290 million . To the extent that tax revenues exceed the debt service payments subsequent to the Company funding a shortfall, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. Long-Term Receivables and the Allowance for Credit Losses The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties. 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 film and 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 film and television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $1.5 billion as of June 29, 2019 . The activity for the quarter and nine -month periods ended June 29, 2019 and June 30, 2018 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 club properties 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 $0.8 billion as of June 29, 2019 . The activity for the quarter and nine -month periods ended June 29, 2019 and June 30, 2018 related to the allowance for credit losses was not material. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is generally classified in one of the following categories: Level 1 - Quoted prices for identical instruments in active markets Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level: Fair Value Measurement at June 29, 2019 Level 1 Level 2 Level 3 Total Assets Investments $ 17 $ — $ — $ 17 Derivatives Interest rate — 52 — 52 Foreign exchange — 502 — 502 Other — 2 — 2 Liabilities Derivatives Interest rate — (64 ) — (64 ) Foreign exchange — (422 ) — (422 ) Other — (3 ) — (3 ) Total recorded at fair value $ 17 $ 67 $ — $ 84 Fair value of borrowings $ — $ 44,194 $ 17,417 $ 61,611 Fair Value Measurement at September 29, 2018 Level 1 Level 2 Level 3 Total Assets Investments $ 38 $ — $ — $ 38 Derivatives Foreign exchange — 469 — 469 Other — 15 — 15 Liabilities Derivatives Interest rate — (410 ) — (410 ) Foreign exchange — (274 ) — (274 ) Total recorded at fair value $ 38 $ (200 ) $ — $ (162 ) Fair value of borrowings $ — $ 19,826 $ 1,171 $ 20,997 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, U.S. and European notes and certain foreign currency denominated borrowings, are valued based on quoted prices for similar instruments in active markets or identical instruments in markets that are not active. Level 3 borrowings include the Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as prevailing market interest rates. Level 3 borrowings at June 29, 2019 also include a bridge loan facility used to finance the acquisition of 21CF. The carrying value approximates fair value of this floating rate financial instrument. 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. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment. For the nine -month period ending June 29, 2019 , the Company recorded impairment charges of $523 million on equity investments as a result of a level 3 fair value measurement. The impairment was recorded in “ Equity in the income / (loss) of investees, net ” in the Condensed Consolidated Statements of Income. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Jun. 29, 2019 | |
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 June 29, 2019 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 169 $ 181 $ (74 ) $ (147 ) Interest rate — 52 (43 ) — Other 2 — (2 ) (1 ) Derivatives not designated as hedges Foreign exchange 41 111 (127 ) (74 ) Interest rate — — — (21 ) Gross fair value of derivatives 212 344 (246 ) (243 ) Counterparty netting (150 ) (245 ) 215 180 Cash collateral (received)/paid (4 ) — 18 — Net derivative positions $ 58 $ 99 $ (13 ) $ (63 ) As of September 29, 2018 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 166 $ 169 $ (80 ) $ (39 ) Interest rate — — (329 ) — Other 13 2 — — Derivatives not designated as hedges Foreign exchange 38 96 (95 ) (60 ) Interest rate — — — (81 ) Gross fair value of derivatives 217 267 (504 ) (180 ) Counterparty netting (158 ) (227 ) 254 131 Cash collateral (received)/paid — — 135 5 Net derivative positions $ 59 $ 40 $ (115 ) $ (44 ) Interest Rate Risk Management The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows and 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 June 29, 2019 and September 29, 2018 , the total notional amount of the Company’s pay-floating interest rate swaps was $6.5 billion and $7.6 billion , respectively. The following table summarizes fair value hedge adjustments to hedged borrowings at June 29, 2019 and September 29, 2018 : Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) June 29, 2019 September 29, 2018 June 29, 2019 September 29, 2018 Borrowings: Current $ 1,246 $ 1,585 $ (3 ) $ (14 ) Long-term 6,001 6,425 35 (290 ) $ 7,247 $ 8,010 $ 32 $ (304 ) (1) Includes $38 million and $41 million of gains on terminated interest rate swaps as of June 29, 2019 and September 29, 2018 , respectively. The following amounts are included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Gain (loss) on: Pay-floating swaps $ 112 $ (25 ) $ 346 $ (191 ) Borrowings hedged with pay-floating swaps (112 ) 25 (346 ) 191 Benefit (expense) associated with interest accruals on pay-floating swaps (15 ) (9 ) (47 ) (2 ) 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 June 29, 2019 or at September 29, 2018 , and gains and losses related to pay-fixed swaps recognized in earnings for the quarter and nine months ended June 29, 2019 and June 30, 2018 were not material. To facilitate its interest rate risk management activities, the Company sold options in November 2016, October 2017 and April 2018 to enter into future pay-floating interest rate swaps indexed to LIBOR for $2.0 billion in future borrowings. The fair values of these contracts as of June 29, 2019 or at September 29, 2018 were not material. The options are not designated as hedges and do not qualify for hedge accounting; accordingly, changes in their fair value are recorded in earnings. Gains and losses on the options for the quarter and nine months ended June 29, 2019 and June 30, 2018 were not material. Foreign Exchange Risk Management The Company transacts business globally and is subject to risks associated with changing foreign currency exchange rates. The Company’s objective is to reduce earnings and cash flow fluctuations associated with foreign currency exchange rate changes, enabling management to focus on core business issues and challenges. The Company enters into option and forward contracts that change in value as foreign currency exchange rates change to protect the value of its existing foreign currency assets, liabilities, firm commitments and forecasted but not firmly committed foreign currency transactions. In accordance with policy, the Company hedges its forecasted foreign currency transactions for periods generally not to exceed four years within an established minimum and maximum range of annual exposure. The gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related forecasted transaction, asset, liability or firm commitment. The principal currencies hedged are the euro, Japanese yen, British pound, Chinese yuan and Canadian dollar. Cross-currency swaps are used to effectively convert foreign currency denominated borrowings into U.S. dollar denominated borrowings. The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions. As of June 29, 2019 and September 29, 2018 , the notional amounts of the Company’s net foreign exchange cash flow hedges were $6.5 billion and $6.2 billion , respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months total $104 million . The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter and nine months ended June 29, 2019 : Quarter Ended: Gain/(loss) recognized in Other Comprehensive Income $ 36 Gain/(loss) reclassified from AOCI into the Statement of Income (1) 55 Nine Months Ended: Gain/(loss) recognized in Other Comprehensive Income $ (5 ) Gain/(loss) reclassified from AOCI into the Statement of Income (1) 112 (1) Primarily recorded in revenue. 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 June 29, 2019 and September 29, 2018 were $3.6 billion and $3.3 billion , respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter and nine months ended June 29, 2019 and June 30, 2018 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: June 29, June 30, June 29, June 30, June 29, June 30, Net gain (loss) on foreign currency denominated assets and liabilities $ 13 $ (175 ) $ (25 ) $ 28 $ (1 ) $ 35 Net gain (loss) on foreign exchange risk management contracts not designated as hedges (25 ) 164 23 (34 ) (6 ) (31 ) Net gain (loss) $ (12 ) $ (11 ) $ (2 ) $ (6 ) $ (7 ) $ 4 Nine Months Ended: Net gains (losses) on foreign currency denominated assets and liabilities $ (13 ) $ (94 ) $ 3 $ 55 $ 14 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (5 ) 73 (5 ) (62 ) (28 ) (15 ) Net gains (losses) $ (18 ) $ (21 ) $ (2 ) $ (7 ) $ (14 ) $ 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 June 29, 2019 and September 29, 2018 and related gains or losses recognized in earnings for the quarter and nine months ended June 29, 2019 and June 30, 2018 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 June 29, 2019 and September 29, 2018 were not material. The related gains or losses recognized in earnings for the quarter and nine months ended June 29, 2019 and June 30, 2018 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 $94 million and $299 million on June 29, 2019 and September 29, 2018 , respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 9 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Charges The Company has begun implementing a restructuring and integration plan as a part of its initiative to realize cost synergies from the acquisition of 21CF. Although our plans are not yet finalized, we currently anticipate that the total severance and related costs could be on the order of $1.5 billion . To date, we have recorded severance and related costs totaling $608 million in connection with the plan. In addition, we recorded charges totaling $261 million for equity based compensation, primarily for 21CF awards that were accelerated to vest upon the closing of the 21CF acquisition. These charges are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statements of Income. The Company may incur other costs in connection with the plan such as lease termination costs, but is unable to estimate those amounts at this time. For the prior-year quarter and nine -month period, restructuring and impairment charges were not material. The following table summarizes the changes in restructuring reserves related to 21CF integration efforts and excludes approximately $20 million of prior restructuring activities: Quarter Ended June 29, 2019 Nine Months Ended June 29, 2019 One-time Termination Benefits Contract Termination Total One-time Termination Benefits Contract Termination Total Beginning Balance: $ 288 $ 115 $ 403 $ — $ — $ — Additions: Media Networks 8 8 16 41 29 70 Parks, Experiences and Products 1 — 1 5 3 8 Studio Entertainment 24 32 56 94 55 149 Direct-to-Consumer & International 81 21 102 174 54 228 Corporate 19 11 30 107 46 153 Total Additions 133 72 205 421 187 608 Payments (53 ) (10 ) (63 ) (53 ) (10 ) (63 ) Other — — — — — — Ending Balance: $ 368 $ 177 $ 545 $ 368 $ 177 $ 545 |
Condensed ConsolidatingFinancia
Condensed ConsolidatingFinancial Information | 9 Months Ended |
Jun. 29, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidating Financial Information Legacy Disney has outstanding public debt that has been fully and unconditionally guaranteed by TWDC. In addition, Legacy Disney has provided a full and unconditional guarantee of debt held by TWDC. Legacy Disney is a 100% owned subsidiary of TWDC. Set forth below are condensed consolidating financial statements presenting the results of operations, financial position and cash flows of TWDC, Legacy Disney and non-guarantor subsidiaries on a combined basis along with eliminations necessary to arrive at the reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions. TWDC was formed in June 2018, was a subsidiary of Legacy Disney until March 20, 2019, and did not have any balances or activity prior to fiscal 2019. Certain amounts in the September 29, 2018 Condensed Consolidating Balance Sheets have been revised for offsetting $294 million understatements of Legacy Disney’s investments in subsidiaries and intercompany payables. Non-Guarantor Subsidiaries had corresponding understatements in intercompany receivables and shareholders’ equity. The adjustments, which the Company has determined are not material to this disclosure, are eliminated in consolidation and therefore have no impact on the Company’s consolidated financial statements. SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 20,176 $ 69 $ 20,245 Costs and expenses Operating expenses — — (12,819 ) — (12,819 ) Selling, general, administrative and other — (133 ) (3,229 ) — (3,362 ) Depreciation and amortization — — (1,304 ) — (1,304 ) Total costs and expenses — (133 ) (17,352 ) — (17,485 ) Restructuring and impairment charges — — (207 ) — (207 ) Allocations to non-guarantor subsidiaries — 120 (120 ) — — Other income/(expense), net 43 7 (104 ) (69 ) (123 ) Interest income/(expense), net (172 ) (299 ) 60 — (411 ) Equity in the income (loss) of investees, net — — (1 ) — (1 ) Income from continuing operations before income taxes (129 ) (305 ) 2,452 — 2,018 Income taxes from continuing operations 25 59 (479 ) — (395 ) Earnings from subsidiary entities 1,505 2,654 — (4,159 ) — Net income from continuing operations 1,401 2,408 1,973 (4,159 ) 1,623 Income (loss) from discontinued operations 359 — 359 (359 ) 359 Net income 1,760 2,408 2,332 (4,518 ) 1,982 Less: Net income from continuing operations attributable to noncontrolling interests — — (186 ) — (186 ) Less: Net income from discontinued operations attributable to noncontrolling interests — — (36 ) — (36 ) Net income excluding noncontrolling interests $ 1,760 $ 2,408 $ 2,110 $ (4,518 ) $ 1,760 Comprehensive income excluding noncontrolling interests $ 1,825 $ 2,422 $ 2,138 $ (4,560 ) $ 1,825 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 15,271 $ (42 ) $ 15,229 Costs and expenses Operating expenses — — (8,348 ) — (8,348 ) Selling, general, administrative and other — (160 ) (2,053 ) — (2,213 ) Depreciation and amortization — (1 ) (743 ) — (744 ) Total costs and expenses — (161 ) (11,144 ) — (11,305 ) Restructuring and impairment charges — — — — Allocations to non-guarantor subsidiaries — 150 (150 ) — — Other income/(expense), net — 113 (155 ) 42 — Interest income/(expense), net — (179 ) 36 — (143 ) Equity in the income (loss) of investees, net — — 73 — 73 Income before taxes — (77 ) 3,931 — 3,854 Income taxes — 13 (808 ) — (795 ) Earnings from subsidiary entities — 2,980 — (2,980 ) — Net income — 2,916 3,123 (2,980 ) 3,059 Less: Net income attributable to noncontrolling interests — — (143 ) — (143 ) Net income excluding noncontrolling interests $ — $ 2,916 $ 2,980 $ (2,980 ) $ 2,916 Comprehensive income excluding noncontrolling interests $ — $ 2,999 $ 2,756 $ (2,756 ) $ 2,999 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Nine Months Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 50,320 $ 150 $ 50,470 Costs and expenses Operating expenses — — (30,196 ) — (30,196 ) Selling, general, administrative and other — (492 ) (7,352 ) — (7,844 ) Depreciation and amortization — (1 ) (2,863 ) — (2,864 ) Total costs and expenses — (493 ) (40,411 ) — (40,904 ) Restructuring and impairment charges — — (869 ) — (869 ) Allocations to non-guarantor subsidiaries — 450 (450 ) — — Other income/(expense), net 43 102 4,845 (150 ) 4,840 Interest income/(expense), net (346 ) (535 ) 264 — (617 ) Equity in the income (loss) of investees, net — — (234 ) — (234 ) Income from continuing operations before income taxes (303 ) (476 ) 13,465 — 12,686 Income taxes from continuing operations 63 96 (2,846 ) — (2,687 ) Earnings from subsidiary entities 1,821 11,487 — (13,308 ) — Net income from continuing operations 1,581 11,107 10,619 (13,308 ) 9,999 Income (loss) from discontinued operations 380 — 380 (380 ) 380 Net income 1,961 11,107 10,999 (13,688 ) 10,379 Less: Net income from continuing operations attributable to noncontrolling interests — — (343 ) — (343 ) Less: Net income from discontinued operations attributable to noncontrolling interests — — (36 ) — (36 ) Net income excluding noncontrolling interests $ 1,961 $ 11,107 $ 10,620 $ (13,688 ) $ 10,000 Comprehensive income excluding noncontrolling interests $ 2,026 $ 11,138 $ 10,623 $ (13,705 ) $ 10,082 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Nine Months Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 45,224 $ (96 ) $ 45,128 Costs and expenses Operating expenses — — (24,618 ) — (24,618 ) Selling, general, administrative and other — (445 ) (6,094 ) — (6,539 ) Depreciation and amortization — (1 ) (2,216 ) — (2,217 ) Total costs and expenses — (446 ) (32,928 ) — (33,374 ) Restructuring and impairment charges — — (28 ) — (28 ) Allocations to non-guarantor subsidiaries — 416 (416 ) — — Other income/(expense), net — (14 ) 12 96 94 Interest income/(expense), net — (493 ) 78 — (415 ) Equity in the income (loss) of investees, net — — 122 — 122 Income before taxes — (537 ) 12,064 — 11,527 Income taxes — 47 (927 ) — (880 ) Earnings from subsidiary entities — 10,766 — (10,766 ) — Net income — 10,276 11,137 (10,766 ) 10,647 Less: Net income attributable to noncontrolling interests — — (371 ) — (371 ) Net income excluding noncontrolling interests $ — $ 10,276 $ 10,766 $ (10,766 ) $ 10,276 Comprehensive income excluding noncontrolling interests $ — $ 10,542 $ 10,683 $ (10,683 ) $ 10,542 CONDENSED CONSOLIDATING BALANCE SHEET As of June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total ASSETS Current assets Cash and cash equivalents $ 752 $ — $ 5,976 $ — $ 6,728 Receivables, net 434 — 15,240 (1 ) 15,673 Inventories — 4 1,512 — 1,516 Television costs and advances — — 4,526 — 4,526 Other current assets 99 8 928 — 1,035 Assets held for sale — — 1,892 — 1,892 Total current assets 1,285 12 30,074 (1 ) 31,370 Film and television costs — — 22,552 — 22,552 Investments in subsidiaries 127,471 279,884 — (407,355 ) — Other investments — — 3,872 — 3,872 Parks, resorts and other property, net — 10 31,382 — 31,392 Intangible assets, net — — 25,114 — 25,114 Goodwill — — 77,801 — 77,801 Noncurrent assets held for sale — — 12,591 — 12,591 Intercompany receivables 4,001 — 134,412 (138,413 ) — Other assets 311 501 4,479 (508 ) 4,783 Total assets $ 133,068 $ 280,407 $ 342,277 $ (546,277 ) $ 209,475 LIABILITIES AND EQUITY Current liabilities Accounts payable and other accrued liabilities $ 1,905 $ 267 $ 15,476 $ (1 ) $ 17,647 Current portion of borrowings 19,014 2,757 152 — 21,923 Deferred revenues and other 16 37 4,880 (203 ) 4,730 Liabilities held for sale — — 293 — 293 Total current liabilities 20,935 3,061 20,801 (204 ) 44,593 Non-current liabilities Borrowings $ 20,319 $ 13,770 $ 2,222 $ — $ 36,311 Deferred income taxes — — 10,709 (305 ) 10,404 Noncurrent liabilities held for sale — — 2,353 — 2,353 Other long-term liabilities 860 2,175 7,526 — 10,561 Intercompany payables 482 133,930 4,001 (138,413 ) — Total non-current liabilities 21,661 149,875 26,811 (138,718 ) 59,629 Redeemable noncontrolling interests — — 8,897 — 8,897 Total Disney Shareholders’ equity 90,472 127,471 279,884 (407,355 ) 90,472 Noncontrolling interests — — 5,884 — 5,884 Total equity 90,472 127,471 285,768 (407,355 ) 96,356 Total liabilities and equity $ 133,068 $ 280,407 $ 342,277 $ (546,277 ) $ 209,475 CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 1,367 $ 2,783 $ — $ 4,150 Receivables, net — 155 9,179 — 9,334 Inventories — 4 1,388 — 1,392 Television costs and advances — — 1,314 — 1,314 Other current assets — 152 483 — 635 Total current assets — 1,678 15,147 — 16,825 Film and television costs — — 7,888 — 7,888 Investments in subsidiaries — 149,880 — (149,880 ) — Other investments — — 2,899 — 2,899 Parks, resorts and other property, net — 12 29,528 — 29,540 Intangible assets, net — — 6,812 — 6,812 Goodwill — — 31,269 — 31,269 Intercompany receivables — — 79,793 (79,793 ) — Other assets — 911 3,178 (724 ) 3,365 Total assets $ — $ 152,481 $ 176,514 $ (230,397 ) $ 98,598 LIABILITIES AND EQUITY Current liabilities Accounts payable and other accrued liabilities $ — $ 688 $ 8,791 $ — $ 9,479 Current portion of borrowings — 3,751 39 — 3,790 Deferred revenues and other — 115 4,476 — 4,591 Total current liabilities — 4,554 13,306 — 17,860 Non-current liabilities Borrowings $ — $ 15,676 $ 1,408 $ — $ 17,084 Deferred income taxes — — 3,833 (724 ) 3,109 Other long-term liabilities — 3,685 2,905 — 6,590 Intercompany payables — 79,793 — (79,793 ) — Total non-current liabilities — 99,154 8,146 (80,517 ) 26,783 Redeemable noncontrolling interests — — 1,123 — 1,123 Total Disney Shareholders’ equity — 48,773 149,880 (149,880 ) 48,773 Noncontrolling interests — — 4,059 — 4,059 Total equity — 48,773 153,939 (149,880 ) 52,832 Total liabilities and equity $ — $ 152,481 $ 176,514 $ (230,397 ) $ 98,598 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total OPERATING ACTIVITIES Cash provided by operations $ 133 $ (1,170 ) $ 5,463 $ (160 ) $ 4,266 INVESTING ACTIVITIES Investments in parks, resorts and other property — — (3,567 ) — (3,567 ) Acquisitions (35,702 ) — 25,801 — (9,901 ) Intercompany investing activities, net 16,400 (11 ) (1,014 ) (15,375 ) — Other — — (317 ) — (317 ) Cash used in investing activities (19,302 ) (11 ) 20,903 (15,375 ) (13,785 ) FINANCING ACTIVITIES Commercial paper, net 3,983 (1,010 ) — — 2,973 Borrowings 31,100 — 248 — 31,348 Reduction of borrowings (16,100 ) (2,250 ) (689 ) — (19,039 ) Dividends — (1,310 ) — — (1,310 ) Repurchases of common stock — — — — — Proceeds from exercise of stock options 194 84 — — 278 Intercompany financing, net 805 4,552 (20,892 ) 15,535 — Contributions from / sales of noncontrolling interest — — 544 — 544 Acquisition of noncontrolling and redeemable noncontrolling interests — — (1,430 ) — (1,430 ) Other (61 ) (252 ) (518 ) — (831 ) Cash used in financing activities 19,921 (186 ) (22,737 ) 15,535 12,533 Discontinued operations — — 141 — 141 Impact of exchange rates on cash, cash equivalents and restricted cash — — 47 — 47 Change in cash, cash equivalents and restricted cash 752 (1,367 ) 3,817 — 3,202 Cash, cash equivalents and restricted cash, beginning of year — 1,367 2,788 — 4,155 Cash, cash equivalents and restricted cash, end of period $ 752 $ — $ 6,605 $ — $ 7,357 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total OPERATING ACTIVITIES Cash provided by operations $ — $ 250 $ 10,298 $ (106 ) $ 10,442 INVESTING ACTIVITIES Investments in parks, resorts and other property — (2 ) (3,262 ) — (3,264 ) Acquisitions — — (1,581 ) — (1,581 ) Intercompany investing activities, net — (1,601 ) — 1,601 — Other — — (298 ) — (298 ) Cash used in investing activities — (1,603 ) (5,141 ) 1,601 (5,143 ) FINANCING ACTIVITIES Commercial paper, net — 453 — — 453 Borrowings — 997 59 — 1,056 Reduction of borrowings — (1,300 ) (56 ) — (1,356 ) Dividends — (1,266 ) (106 ) 106 (1,266 ) Repurchases of common stock — (3,577 ) — — (3,577 ) Intercompany financing, net — 6,116 (4,515 ) (1,601 ) — Proceeds from exercise of stock options — 129 — — 129 Contributions from / sales of noncontrolling interest — — 363 — 363 Other — (221 ) (562 ) — (783 ) Cash used in financing activities — 1,331 (4,817 ) (1,495 ) (4,981 ) Impact of exchange rates on cash, cash equivalents and restricted cash — — (51 ) — (51 ) Change in cash, cash equivalents and restricted cash — (22 ) 289 — 267 Cash, cash equivalents and restricted cash, beginning of year — 693 3,371 — 4,064 Cash, cash equivalents and restricted cash, end of period $ — $ 671 $ 3,660 $ — $ 4,331 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Jun. 29, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted in Fiscal 2019 • Revenues from Contracts with Customers - See Note 3 • Intra-Entity Transfers of Assets Other Than Inventory - See Note 8 • Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - See Note 9 • Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - See Note 11 • Recognition and Measurement of Financial Assets and Liabilities - See Note 11 • Targeted Improvements to Accounting for Hedging Activities - The adoption of the new guidance did not have a material impact on our consolidated financial statements Leases In February 2016, the FASB issued new lease accounting guidance, 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. The guidance is effective at the beginning of the Company ’ s 2020 fiscal year. We expect to adopt the guidance without restating prior periods. The new guidance provides a number of practical expedients for transition upon adoption. The Company expects to elect the practical expedients that permit the Company not to reassess its prior conclusions concerning whether: • Arrangements contain a lease • The Company ’ s lease arrangements are operating or capital leases (financing) • Initial direct costs should be capitalized • Existing land easements are leases The Company is currently assessing the impact of the new guidance on its financial statements. We believe the most significant effects of adoption will be: • Recognizing new right-of-use assets and lease liabilities on our balance sheet for our operating leases • Reclassifying a deferred gain of approximately $350 million related to a prior sale-leaseback transaction to retained earnings As of September 29, 2018, the Company had an estimated $3.6 billion in undiscounted future minimum lease commitments. The Company also assumed an estimated $1 billion in undiscounted future minimum lease commitments in connection with the acquisition of 21CF and consolidation of Hulu. Improvements to Accounting for Costs of Films and License Agreements for Program Materials In March 2019, the FASB updated guidance for the accounting for film and television content costs. The new guidance impacts the capitalization, amortization and impairment of these costs as follows: • Eliminates the limitation on capitalization of production costs for episodic content, aligning the capitalization model with film content; • Requires production costs amortized using estimated usage to be reviewed and updated each reporting period, with any changes in estimated usage applied prospectively; and • Requires produced and acquired programming costs to be tested for impairment using the lowest level of identifiable cash flows based on the predominant monetization strategy for the content (i.e., monetized individually or in a group) While we currently do not expect the new guidance will have a material impact on our financial statements, it is relevant to the accounting for content to be used on our streaming services. The guidance is effective at the beginning of the Company ’ s 2021 fiscal year (with early adoption permitted) and requires prospective adoption. The Company plans to adopt the new guidance by the beginning of fiscal 2020. |
Summary of Significant Revenue
Summary of Significant Revenue Recognition Accounting Policies (Policies) | 9 Months Ended |
Jun. 29, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy | Summary of Significant Revenue Recognition Accounting Policies The Company generates revenue from the sale of both services and products. Revenue is recognized when control of the services or products is transferred to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for the services or products. The Company has three broad categories of service revenues: licenses of rights to use our intellectual property, sales to guests at our Parks and Experiences businesses and sales of ad time/space. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue guidance defines two types of licenses of intellectual property (“IP”): IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters, visual and literary properties at the Parks, Experiences and Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows: • Affiliate fees - Fees charged to affiliates (i.e., MVPDs or television stations) for the right to deliver our television network programming on a continuous basis to their customers are recognized as the programming is provided based on contractually specified per subscriber rates and the actual number of the affiliate’s customers receiving the programming. For affiliate contracts with fixed license fees, the fees are recognized ratably over the contract term. If an affiliate contract includes a minimum guaranteed license fee, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned. • Subscription fees - Fees charged to customers/subscribers for our streaming services are recognized ratably over the term of the subscription. • Advertising - Sales of advertising time/space on our television networks, digital platforms and television stations are recognized as revenue, net of agency commissions, when commercials are aired. For contracts that contain a guaranteed number of impressions, revenues are recognized based on impressions delivered. When the guaranteed number of impressions is not met (“ratings shortfall”), revenues are not recognized for the ratings shortfall until the additional impressions are delivered. • Theme park admissions - Sales of theme park tickets are recognized when the tickets are used. Sales of annual passes are recognized ratably over the period for which the pass is available for use. • Resorts and vacations - Sales of hotel room nights and cruise vacations and rentals of vacation club properties are recognized as the services are provided to the guest. Sales of vacation club properties are recognized when title to the property transfers to the customer. • Merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts, cruise ships and Disney Stores are recognized at the time of sale. Sales from our branded internet shopping sites and to wholesalers are recognized upon delivery. We estimate returns and customer incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. • TV/SVOD distribution licensing - Fixed license fees charged for the right to use our television and motion picture productions are recognized as revenue when the content is available for use by the licensee. License fees based on the underlying sales of the licensee are recognized as revenue as earned based on the contractual royalty rate applied to the licensee sales. For TV/SVOD licenses that include multiple titles with a fixed license fee across all titles, each title is considered a separate performance obligation. The fixed license fee is allocated to each title at contract inception and the allocated license fee is recognized as revenue when the title is available for use by the licensee. When the license contains a minimum guaranteed license fee across all titles, the license fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee is exceeded, revenue is recognized as earned based on the licensee’s underlying sales. TV/SVOD distribution contracts may limit the licensee’s use of a title to certain defined periods of time during the contract term. In these instances, each period of availability is generally considered a separate performance obligation. For these contracts, the fixed license fee is allocated to each period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized at the start of each availability period when the content is made available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. • Theatrical distribution licensing - Fees charged for licensing of our motion pictures to theatrical distributors are recognized as revenue based on the contractual royalty rate applied to the distributor’s underlying sales from exhibition of the film. • Merchandise licensing - Fees charged for the use of our trade names and characters in connection with the sale of a licensee’s products are recognized as revenue as earned based on the contractual royalty rate applied to the licensee’s underlying product sales. For licenses with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual royalties earned (“shortfall”) is recognized straight-line over the remaining license period once an expected shortfall is probable. • Home entertainment - Sales of our motion pictures to retailers and distributors in physical formats (DVD and Blu-ray) are recognized as revenue on the later of the delivery date or the date that the product can be sold by retailers. We reduce home entertainment revenues for estimated future returns of merchandise and sales incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. Sales of our motion pictures in electronic formats are recognized as revenue when the product is available for use by the consumer. • Taxes - Taxes collected from customers and remitted to governmental authorities are excluded from revenue. • Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue and the related shipping expenses are recorded in cost of products upon delivery of the product to the consumer. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Financial Information by Operating Segments | Segment revenues and segment operating income are as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Revenues : Media Networks $ 6,713 $ 5,534 $ 18,317 $ 16,597 Parks, Experiences and Products (1) 6,575 6,136 19,570 18,566 Studio Entertainment (1) 3,836 2,880 7,817 7,888 Direct-to-Consumer & International 3,858 827 5,921 2,589 Eliminations (2) (737 ) (148 ) (1,155 ) (512 ) $ 20,245 $ 15,229 $ 50,470 $ 45,128 Segment operating income : Media Networks $ 2,136 $ 1,995 $ 5,696 $ 5,496 Parks, Experiences and Products (1) 1,719 1,655 5,377 4,918 Studio Entertainment (1) 792 701 1,607 2,400 Direct-to-Consumer & International (553 ) (168 ) (1,074 ) (398 ) Eliminations (2) (133 ) 6 (174 ) (4 ) $ 3,961 $ 4,189 $ 11,432 $ 12,412 (1) Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. (2) Intersegment content transactions are as follows: Quarter Ended Nine Months Ended (in millions) June 29, June 30, June 29, June 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (41 ) $ (25 ) $ (75 ) $ (120 ) Content transactions with Direct-to-Consumer & International (82 ) (8 ) (182 ) (24 ) Media Networks: Content transactions with Direct-to-Consumer & International (614 ) (115 ) (898 ) (368 ) $ (737 ) $ (148 ) $ (1,155 ) $ (512 ) Operating income: Studio Entertainment: Content transactions with Media Networks $ (16 ) $ 7 $ (11 ) $ (2 ) Content transactions with Direct-to-Consumer & International (35 ) — (79 ) — Media Networks: Content transactions with Direct-to-Consumer & International (82 ) (1 ) (84 ) (2 ) Total $ (133 ) $ 6 $ (174 ) $ (4 ) |
Equity In Income of Investees By Segment | Equity in the income/(loss) of investees is included in segment operating income as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Media Networks $ 192 $ 197 $ 553 $ 538 Parks, Experiences and Products — (5 ) (12 ) (19 ) Direct-to-Consumer & International 7 (119 ) (222 ) (397 ) Equity in the income of investees included in segment operating income 199 73 319 122 Impairment of equity investments (185 ) — (538 ) — Amortization of 21CF intangible assets related to equity investees (15 ) — (15 ) — Equity in the income / (loss) of investees, net $ (1 ) $ 73 $ (234 ) $ 122 |
Reconciliation of Segment Operating Income to Income before Income Taxes | A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Segment operating income $ 3,961 $ 4,189 $ 11,432 $ 12,412 Corporate and unallocated shared expenses (238 ) (192 ) (678 ) (536 ) Restructuring and impairment charges (207 ) — (869 ) (28 ) Other income/(expense), net (123 ) — 4,840 94 Interest expense, net (411 ) (143 ) (617 ) (415 ) Amortization of 21CF and Hulu intangible assets and fair value step-up on film and television costs (1) (779 ) — (884 ) — Impairment of equity investments (2) (185 ) — (538 ) — Income from continuing operations before income taxes $ 2,018 $ 3,854 $ 12,686 $ 11,527 (1) For the quarter ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $490 million , $274 million and $15 million , respectively. For the nine-months ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $562 million , $307 million and $15 million , respectively. (2) Primarily reflects an impairment of an investment in a cable channel at A+E Television Networks. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Cumulative Effect of Adoption on the Condensed Consolidated Balance Sheet | The cumulative effect of adoption at September 29, 2018 and the impact at June 29, 2019 (had we not applied the new revenue guidance) on the Condensed Consolidated Balance Sheet is as follows: September 29, 2018 June 29, 2019 Fiscal 2018 Ending Balances as Reported Effect of Adoption Q1 2019 Opening Balances Balances Assuming Historical Accounting Impact of New Revenue guidance Q3 2019 Ending Balances as Reported Assets Receivables - current/non-current $ 11,262 $ (241 ) $ 11,021 $ 18,450 $ (157 ) $ 18,293 Film and television costs and advances - current/non-current 9,202 48 9,250 27,031 47 27,078 Liabilities Accounts payable and other accrued liabilities 9,479 1,039 10,518 16,488 1,159 17,647 Deferred revenue and other 4,591 (1,082 ) 3,509 5,888 (1,158 ) 4,730 Deferred income taxes 3,109 (34 ) 3,075 10,429 (25 ) 10,404 Equity 52,832 (116 ) 52,716 96,444 (88 ) 96,356 |
Financial Statement Impact Presented Under Previous Guidance | The impact on the Condensed Consolidated Statement of Income for the quarter and nine months ended June 29, 2019 , due to the adoption of the new revenue guidance is as follows: Quarter Ended June 29, 2019 Nine Months Ended June 29, 2019 Results Assuming Historical Accounting Impact of New Revenue guidance Reported Results Assuming Historical Accounting Impact of New Revenue guidance Reported Revenues $ 20,250 $ (5 ) $ 20,245 $ 50,260 $ 210 $ 50,470 Cost and Expenses (17,437 ) (48 ) (17,485 ) (40,730 ) (174 ) (40,904 ) Income Taxes (407 ) 12 (395 ) (2,679 ) (8 ) (2,687 ) Net Income 2,023 (41 ) 1,982 10,351 28 10,379 |
Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source: Quarter Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,564 $ — $ — $ 993 $ (108 ) $ 4,449 Advertising 1,874 — — 1,489 — 3,363 Theme park admissions — 1,956 — — — 1,956 Resort and vacations — 1,610 — — — 1,610 Retail and wholesale sales of merchandise, food and beverage — 1,877 — — — 1,877 TV/SVOD distribution licensing 1,150 — 746 218 (629 ) 1,485 Theatrical distribution licensing — — 2,240 — — 2,240 Merchandise licensing — 631 126 12 — 769 Home entertainment — — 432 24 — 456 Other 125 501 292 1,122 — 2,040 Total revenues $ 6,713 $ 6,575 $ 3,836 $ 3,858 $ (737 ) $ 20,245 Quarter Ended June 30, 2018 (1) Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 2,981 $ — $ — $ 351 $ — $ 3,332 Advertising 1,677 1 — 310 — 1,988 Theme park admissions — 1,834 — — — 1,834 Resort and vacations — 1,530 — — — 1,530 Retail and wholesale sales of merchandise, food and beverage — 1,800 — — — 1,800 TV/SVOD distribution licensing 822 — 560 22 (148 ) 1,256 Theatrical distribution licensing — — 1,505 — — 1,505 Merchandise licensing — 560 116 18 — 694 Home entertainment — — 388 29 — 417 Other 54 411 311 97 — 873 Total revenues $ 5,534 $ 6,136 $ 2,880 $ 827 $ (148 ) $ 15,229 (1) Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. Nine Months Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 9,873 $ — $ — $ 1,728 $ (120 ) $ 11,481 Advertising 5,521 3 — 2,360 — 7,884 Theme park admissions — 5,657 — — — 5,657 Resort and vacations — 4,644 — — — 4,644 Retail and wholesale sales of merchandise, food and beverage — 5,767 — — — 5,767 TV/SVOD distribution licensing 2,617 — 2,069 275 (1,035 ) 3,926 Theatrical distribution licensing — — 3,365 — — 3,365 Merchandise licensing — 2,009 406 40 — 2,455 Home entertainment — — 1,127 73 — 1,200 Other 306 1,490 850 1,445 — 4,091 Total revenues $ 18,317 $ 19,570 $ 7,817 $ 5,921 $ (1,155 ) $ 50,470 Nine Months Ended June 30, 2018 (1) Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 8,891 $ — $ — $ 1,043 $ — $ 9,934 Advertising 5,283 5 — 1,022 — 6,310 Theme park admissions — 5,356 — — — 5,356 Resort and vacations — 4,454 — — — 4,454 Retail and wholesale sales of merchandise, food and beverage — 5,566 — — — 5,566 TV/SVOD distribution licensing 2,205 — 1,698 73 (512 ) 3,464 Theatrical distribution licensing — — 3,630 — — 3,630 Merchandise licensing — 1,963 426 54 — 2,443 Home entertainment — — 1,220 80 — 1,300 Other 218 1,222 914 317 — 2,671 Total revenues $ 16,597 $ 18,566 $ 7,888 $ 2,589 $ (512 ) $ 45,128 (1) Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets: Quarter Ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 6,338 $ 4,911 $ 1,728 $ 1,533 $ (601 ) $ 13,909 Europe 295 776 889 473 (80 ) 2,353 Asia Pacific 63 837 874 1,187 (56 ) 2,905 Latin America 17 51 345 665 — 1,078 Total revenues $ 6,713 $ 6,575 $ 3,836 $ 3,858 $ (737 ) $ 20,245 Nine months ended June 29, 2019 Media Networks Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 17,464 $ 14,742 $ 3,840 $ 2,078 $ (970 ) $ 37,154 Europe 585 2,261 1,878 846 (118 ) 5,452 Asia Pacific 195 2,399 1,548 1,566 (67 ) 5,641 Latin America 73 168 551 1,431 — 2,223 Total revenues $ 18,317 $ 19,570 $ 7,817 $ 5,921 $ (1,155 ) $ 50,470 |
Contract with Customer, Asset and Liability | Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: June 29, September 30, Contract assets $ 99 $ 89 Accounts Receivable Current 14,414 8,553 Non-current 2,008 1,640 Allowance for doubtful accounts (265 ) (226 ) Deferred revenues Current 4,135 2,926 Non-current 581 609 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Business Acquisition [Line Items] | |
Business Acquisition, Summarized Financial Information of Acquiree [Table Text Block] | The following table summarizes the revenues and net loss from continuing operations (including purchase accounting amortization and the impact of intercompany eliminations and excluding restructuring and impairment charges) of 21CF and Hulu included in the Company’s Condensed Consolidated Statement of Income since the date of acquisition for the quarter and nine months ended June 29, 2019: Quarter Nine Months 21CF: Revenues $ 3,490 $ 3,863 Net loss from continuing operations (556 ) (611 ) Hulu: Revenues $ 906 $ 1,039 Net loss from continuing operations (357 ) (416 ) |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended June 29, 2019 are as follows: Media Networks Parks and Resorts Studio Entertainment Consumer Products & Interactive Media Parks, Experiences and Products Direct-to-Consumer & International Unallocated Total Balance at Sept. 29, 2018 $ 19,388 $ 291 $ 7,164 $ 4,426 $ — $ — $ — $ 31,269 Segment recast (1) (3,399 ) (291 ) (70 ) (4,426 ) 4,487 3,699 — — Acquisitions (2) — — — — — — 46,521 46,521 Other, net — — 4 — — 7 — 11 Balance at June 29, 2019 $ 15,989 $ — $ 7,098 $ — $ 4,487 $ 3,706 $ 46,521 $ 77,801 (1) Represents the reallocation of goodwill as a result of the Company recasting its segments (see Note 2). (2) Represents the acquisition of 21CF and consolidation of Hulu. |
Discontinued Operations, Held-for-sale | |
Business Acquisition [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The major classes of assets and liabilities of the RSNs and the Brazil and Mexico sports media operations at June 29, 2019 classified as held for sale on our Condensed Consolidated Balance Sheets are presented below and are subject to change based on developments during the sales process. Cash $ 591 Receivables and other current assets 964 Television costs and advances 337 Total current assets classified as held for sale 1,892 Film and television costs 1,704 Property and equipment and other assets 69 Intangible assets, net 7,748 Goodwill 3,070 Total assets classified as held for sale $ 14,483 Accounts payable and other accrued liabilities $ 246 Current portion of borrowings 44 Deferred revenue and other 3 Total current liabilities classified as held for sale 293 Borrowings 1,057 Other long-term liabilities 241 Redeemable noncontrolling interests 1,055 Total liabilities classified as held for sale $ 2,646 |
21CF | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes our preliminary allocation of the March 20, 2019 purchase price: Initial Allocation Valuation Adjustments Updated Allocation Cash and cash equivalents $ 25,666 $ — $ 25,666 Receivables 4,746 154 4,900 Film and television costs 20,120 (2,135 ) 17,985 Investments 1,471 53 1,524 Intangible assets 20,385 (1,325 ) 19,060 Net assets held for sale 11,704 (414 ) 11,290 Accounts payable and other liabilities (10,753 ) (1,357 ) (12,110 ) Borrowings (21,723 ) — (21,723 ) Deferred income taxes (6,497 ) 975 (5,522 ) Other net liabilities acquired (3,865 ) 1,060 (2,805 ) Noncontrolling interests (10,638 ) 96 (10,542 ) Goodwill 43,751 2,770 46,521 Fair value of net assets acquired 74,367 (123 ) 74,244 Less: Disney’s previously held 30% interest in Hulu (4,860 ) 123 (4,737 ) Total purchase price $ 69,507 $ — $ 69,507 |
Business Acquisition, Pro Forma Information | The following pro forma summary presents consolidated information of the Company as if the acquisition of 21CF and consolidation of Hulu had occurred on October 1, 2017: Nine Months Ended June 29, June 30, Revenues $ 59,017 $ 58,223 Net income 6,259 11,800 Net income attributable to Disney 6,147 11,971 Earnings per share attributable to Disney: Diluted $ 3.22 $ 6.58 Basic 3.24 6.62 |
Other Income Other Income (Tabl
Other Income Other Income (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | Other income is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Hulu Gain (1) $ (123 ) $ — $ 4,794 $ — Insurance recoveries related to legal matters — — 46 38 Gain on the sale of property rights and other — — — 56 Other income $ (123 ) $ — $ 4,840 $ 94 (1) The quarter ended June 29, 2019, reflects an adjustment to the amount recognized in the second quarter of fiscal 2019. See Note 4 for further details. |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Borrowings (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 Statements of Cash Flows. June 29, September 29, Cash and cash equivalents $ 6,728 $ 4,150 Restricted cash included in: Other current assets 1 1 Other assets 37 4 Cash included in current assets held for sale 591 — Total cash, cash equivalents and restricted cash in the statement of cash flows $ 7,357 $ 4,155 |
Borrowing Activity | During the nine months ended June 29, 2019 , the Company’s borrowing activity was as follows: September 29, Borrowings Payments Borrowings Assumed in Acquisition of 21CF Other Activity June 29, Commercial paper with original maturities less than three months (1) $ 50 $ 819 $ — $ — $ 19 $ 888 Commercial paper with original maturities greater than three months 955 4,110 (1,956 ) — 17 3,126 U.S. and European notes 17,942 — (2,250 ) 21,174 (66 ) 36,800 Credit facilities to acquire 21CF — 31,100 (16,100 ) — — 15,000 Asia Theme Parks borrowings 1,145 — (48 ) — 44 1,141 Foreign currency denominated debt and other (2) 782 248 (641 ) 549 341 1,279 20,874 36,277 (20,995 ) 21,723 355 58,234 Liabilities held for sale — 50 (18 ) 1,069 — 1,101 $ 20,874 $ 36,327 $ (21,013 ) $ 22,792 $ 355 $ 59,335 (1) Borrowings and reductions of borrowings are reported net. (2) The other activity is due to market value adjustments for debt with qualifying hedges, partially offset by the impact of changes in foreign currency exchange rates. |
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 2020 $ 6,000 $ — $ 6,000 Facility expiring March 2021 2,250 — 2,250 Facility expiring March 2023 4,000 — 4,000 Total $ 12,250 $ — $ 12,250 |
Interest Expense, net | Interest expense, interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest): Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Interest expense $ (472 ) $ (175 ) $ (833 ) $ (493 ) Interest and investment income 34 32 139 78 Net periodic pension and postretirement benefit costs (other than service costs) 27 — 77 — Interest expense, net $ (411 ) $ (143 ) $ (617 ) $ (415 ) |
International Theme Parks (Tabl
International Theme Parks (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 June 29, 2019 and September 29, 2018 : June 29, 2019 September 29, 2018 Cash and cash equivalents $ 825 $ 834 Other current assets 392 400 Total current assets 1,217 1,234 Parks, resorts and other property 8,860 8,973 Other assets 86 103 Total assets (1) $ 10,163 $ 10,310 Current liabilities $ 653 $ 921 Long-term borrowings 1,141 1,106 Other long-term liabilities 367 382 Total liabilities (1) $ 2,161 $ 2,409 (1) Total assets of the Asia Theme Parks were $8 billion at both June 29, 2019 and September 29, 2018 including parks, resorts and other property of $7 billion . Total liabilities of the Asia Theme Parks were $2 billion at both June 29, 2019 and September 29, 2018 |
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 nine months ended June 29, 2019 : June 29, 2019 Revenues $ 2,794 Costs and expenses (2,688 ) Equity in the loss of investees (12 ) |
Pension and Other Benefit Pro_2
Pension and Other Benefit Programs (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Nine Months Ended Quarter Ended Nine Months Ended Jun. 29, Jun. 30, Jun. 29, Jun. 30, Jun. 29, Jun. 30, Jun. 29, Jun. 30, Service costs $ 89 $ 87 $ 255 $ 262 $ 2 $ 3 $ 6 $ 8 Other costs (benefits): Interest costs 152 122 441 367 17 15 50 45 Expected return on plan assets (250 ) (225 ) (729 ) (677 ) (14 ) (13 ) (42 ) (39 ) Amortization of prior-year service costs 3 3 10 11 — — — — Recognized net actuarial loss 65 86 196 261 — 3 — 10 Total other costs (benefits) (30 ) (14 ) (82 ) (38 ) 3 5 8 16 Net periodic benefit cost $ 59 $ 73 $ 173 $ 224 $ 5 $ 8 $ 14 $ 24 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 Nine Months Ended June 29, June 30, June 29, June 30, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,802 1,491 1,607 1,502 Weighted average dilutive impact of Awards 12 7 9 8 Weighted average number of common and common equivalent shares outstanding (diluted) 1,814 1,498 1,616 1,510 Awards excluded from diluted earnings per share 4 12 10 12 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Dividends Declared | The Company paid the following dividends in fiscal 2019 and 2018 : Per Share Total Paid Payment Timing Related to Fiscal Period $0.88 $1.6 billion Fourth quarter of Fiscal 2019 First Half of 2019 $0.88 $1.3 billion Second quarter of Fiscal 2019 Second Half of 2018 $0.84 $1.2 billion Fourth Quarter of Fiscal 2018 First Half of 2018 $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half of 2017 |
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Unrecognized Foreign AOCI Market Value Adjustments AOCI, before tax Investments Cash Flow Hedges Third quarter of fiscal 2019 Balance at March 30, 2019 $ (5 ) $ 62 $ (4,163 ) $ (728 ) $ (4,834 ) Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period 6 34 (37 ) 48 51 Reclassifications of realized net (gains) losses to net income — (55 ) 69 — 14 Balance at June 29, 2019 $ 1 $ 41 $ (4,131 ) $ (680 ) $ (4,769 ) Third quarter of fiscal 2018 Balance at March 31, 2018 $ 24 $ (197 ) $ (4,690 ) $ (358 ) $ (5,221 ) Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period 1 296 — (286 ) 11 Reclassifications of realized net (gains) losses to net income — 26 96 — 122 Balance at June 30, 2018 $ 25 $ 125 $ (4,594 ) $ (644 ) $ (5,088 ) Nine months ended fiscal 2019 Balance at September 29, 2018 $ 24 $ 177 $ (4,323 ) $ (727 ) $ (4,849 ) Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period 1 (21 ) (18 ) 47 9 Reclassifications of net (gains) losses to net income — (116 ) 210 — 94 Reclassifications to retained earnings (24 ) 1 — — (23 ) Balance at June 29, 2019 $ 1 $ 41 $ (4,131 ) $ (680 ) $ (4,769 ) Nine months ended fiscal 2018 Balance at September 30, 2017 $ 15 $ (108 ) $ (4,906 ) $ (523 ) $ (5,522 ) Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period 10 150 24 (121 ) 63 Reclassifications of net (gains) losses to net income — 83 288 — 371 Balance at June 30, 2018 $ 25 $ 125 $ (4,594 ) $ (644 ) $ (5,088 ) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Third quarter of fiscal 2019 Balance at March 30, 2019 $ 1 $ (14 ) $ 984 $ 77 $ 1,048 Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period (3 ) (7 ) 8 5 3 Reclassifications of realized net (gains) losses to net income — 13 (16 ) — (3 ) Balance at June 29, 2019 $ (2 ) $ (8 ) $ 976 $ 82 $ 1,048 Third quarter of fiscal 2018 Balance at March 31, 2018 $ (10 ) $ 41 $ 1,778 $ 67 $ 1,876 Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period — (56 ) (2 ) 38 (20 ) Reclassifications of realized net (gains) losses to net income — (6 ) (24 ) — (30 ) Balance at June 30, 2018 $ (10 ) $ (21 ) $ 1,752 $ 105 $ 1,826 Nine months ended fiscal 2019 Balance at September 29, 2018 $ (9 ) $ (32 ) $ 1,690 $ 103 $ 1,752 Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period (2 ) 6 2 (5 ) 1 Reclassifications of net (gains) losses to net income — 27 (49 ) — (22 ) Reclassifications to retained earnings (1) 9 (9 ) (667 ) (16 ) (683 ) Balance at June 29, 2019 $ (2 ) $ (8 ) $ 976 $ 82 $ 1,048 Nine months ended fiscal 2018 Balance at September 30, 2017 $ (7 ) $ 46 $ 1,839 $ 116 $ 1,994 Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period (3 ) (44 ) (5 ) (11 ) (63 ) Reclassifications of net (gains) losses to net income — (23 ) (82 ) — (105 ) Balance at June 30, 2018 $ (10 ) $ (21 ) $ 1,752 $ 105 $ 1,826 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Third quarter of fiscal 2019 Balance at March 30, 2019 $ (4 ) $ 48 $ (3,179 ) $ (651 ) $ (3,786 ) Quarter Ended June 29, 2019: Unrealized gains (losses) arising during the period 3 27 (29 ) 53 54 Reclassifications of realized net (gains) losses to net income — (42 ) 53 — 11 Balance at June 29, 2019 $ (1 ) $ 33 $ (3,155 ) $ (598 ) $ (3,721 ) Third quarter of fiscal 2018 Balance at March 31, 2018 $ 14 $ (156 ) $ (2,912 ) $ (291 ) $ (3,345 ) Quarter Ended June 30, 2018: Unrealized gains (losses) arising during the period 1 240 (2 ) (248 ) (9 ) Reclassifications of realized net (gains) losses to net income — 20 72 — 92 Balance at June 30, 2018 $ 15 $ 104 $ (2,842 ) $ (539 ) $ (3,262 ) Nine months ended fiscal 2019 Balance at September 29, 2018 $ 15 $ 145 $ (2,633 ) $ (624 ) $ (3,097 ) Nine Months Ended June 29, 2019: Unrealized gains (losses) arising during the period (1 ) (15 ) (16 ) 42 10 Reclassifications of net (gains) losses to net income — (89 ) 161 — 72 Reclassifications to retained earnings (1) (15 ) (8 ) (667 ) (16 ) (706 ) Balance at June 29, 2019 $ (1 ) $ 33 $ (3,155 ) $ (598 ) $ (3,721 ) Nine months ended fiscal 2018 Balance at September 30, 2017 $ 8 $ (62 ) $ (3,067 ) $ (407 ) $ (3,528 ) Nine Months Ended June 30, 2018: Unrealized gains (losses) arising during the period 7 106 19 (132 ) — Reclassifications of net (gains) losses to net income — 60 206 — 266 Balance at June 30, 2018 $ 15 $ 104 $ (2,842 ) $ (539 ) $ (3,262 ) (1) At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ( $15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
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 Nine Months Ended June 29, June 30, June 29, June 30, Cash flow hedges Primarily revenue $ 55 $ (26 ) $ 116 $ (83 ) Estimated tax Income taxes (13 ) 6 (27 ) 23 42 (20 ) 89 (60 ) Pension and postretirement medical expense Costs and expenses — (96 ) — (288 ) Interest expense, net (69 ) (210 ) — Estimated tax Income taxes 16 24 49 82 (53 ) (72 ) (161 ) (206 ) Total reclassifications for the period $ (11 ) $ (92 ) $ (72 ) $ (266 ) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 and restricted stock units (RSUs) is as follows: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Stock options $ 21 $ 21 $ 64 $ 67 RSUs (1) 114 92 527 240 Total equity-based compensation expense (2) $ 135 $ 113 $ 591 $ 307 Equity-based compensation expense capitalized during the period $ 22 $ 17 $ 60 $ 54 (1) Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . (2) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 June 29, 2019 Level 1 Level 2 Level 3 Total Assets Investments $ 17 $ — $ — $ 17 Derivatives Interest rate — 52 — 52 Foreign exchange — 502 — 502 Other — 2 — 2 Liabilities Derivatives Interest rate — (64 ) — (64 ) Foreign exchange — (422 ) — (422 ) Other — (3 ) — (3 ) Total recorded at fair value $ 17 $ 67 $ — $ 84 Fair value of borrowings $ — $ 44,194 $ 17,417 $ 61,611 Fair Value Measurement at September 29, 2018 Level 1 Level 2 Level 3 Total Assets Investments $ 38 $ — $ — $ 38 Derivatives Foreign exchange — 469 — 469 Other — 15 — 15 Liabilities Derivatives Interest rate — (410 ) — (410 ) Foreign exchange — (274 ) — (274 ) Total recorded at fair value $ 38 $ (200 ) $ — $ (162 ) Fair value of borrowings $ — $ 19,826 $ 1,171 $ 20,997 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
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 June 29, 2019 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 169 $ 181 $ (74 ) $ (147 ) Interest rate — 52 (43 ) — Other 2 — (2 ) (1 ) Derivatives not designated as hedges Foreign exchange 41 111 (127 ) (74 ) Interest rate — — — (21 ) Gross fair value of derivatives 212 344 (246 ) (243 ) Counterparty netting (150 ) (245 ) 215 180 Cash collateral (received)/paid (4 ) — 18 — Net derivative positions $ 58 $ 99 $ (13 ) $ (63 ) As of September 29, 2018 Current Assets Other Assets Other Current Liabilities Other Long- Term Liabilities Derivatives designated as hedges Foreign exchange $ 166 $ 169 $ (80 ) $ (39 ) Interest rate — — (329 ) — Other 13 2 — — Derivatives not designated as hedges Foreign exchange 38 96 (95 ) (60 ) Interest rate — — — (81 ) Gross fair value of derivatives 217 267 (504 ) (180 ) Counterparty netting (158 ) (227 ) 254 131 Cash collateral (received)/paid — — 135 5 Net derivative positions $ 59 $ 40 $ (115 ) $ (44 ) |
Carrying Amount and Cumulative Basis Adjustments for Fair Value Hedges Recorded on the Balance Sheet | The following table summarizes fair value hedge adjustments to hedged borrowings at June 29, 2019 and September 29, 2018 : Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) June 29, 2019 September 29, 2018 June 29, 2019 September 29, 2018 Borrowings: Current $ 1,246 $ 1,585 $ (3 ) $ (14 ) Long-term 6,001 6,425 35 (290 ) $ 7,247 $ 8,010 $ 32 $ (304 ) (1) Includes $38 million and $41 million of gains on terminated interest rate swaps as of June 29, 2019 and September 29, 2018 , respectively. |
Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income | The following amounts are included in “ Interest expense, net ” in the Condensed Consolidated Statements of Income: Quarter Ended Nine Months Ended June 29, June 30, June 29, June 30, Gain (loss) on: Pay-floating swaps $ 112 $ (25 ) $ 346 $ (191 ) Borrowings hedged with pay-floating swaps (112 ) 25 (346 ) 191 Benefit (expense) associated with interest accruals on pay-floating swaps (15 ) (9 ) (47 ) (2 ) |
Effect of Foreign Exchange Cash Flow Hedges on AOCI | The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter and nine months ended June 29, 2019 : Quarter Ended: Gain/(loss) recognized in Other Comprehensive Income $ 36 Gain/(loss) reclassified from AOCI into the Statement of Income (1) 55 Nine Months Ended: Gain/(loss) recognized in Other Comprehensive Income $ (5 ) Gain/(loss) reclassified from AOCI into the Statement of Income (1) 112 (1) |
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 and nine months ended June 29, 2019 and June 30, 2018 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: June 29, June 30, June 29, June 30, June 29, June 30, Net gain (loss) on foreign currency denominated assets and liabilities $ 13 $ (175 ) $ (25 ) $ 28 $ (1 ) $ 35 Net gain (loss) on foreign exchange risk management contracts not designated as hedges (25 ) 164 23 (34 ) (6 ) (31 ) Net gain (loss) $ (12 ) $ (11 ) $ (2 ) $ (6 ) $ (7 ) $ 4 Nine Months Ended: Net gains (losses) on foreign currency denominated assets and liabilities $ (13 ) $ (94 ) $ 3 $ 55 $ 14 $ 23 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (5 ) 73 (5 ) (62 ) (28 ) (15 ) Net gains (losses) $ (18 ) $ (21 ) $ (2 ) $ (7 ) $ (14 ) $ 8 |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in restructuring reserves related to 21CF integration efforts and excludes approximately $20 million of prior restructuring activities: Quarter Ended June 29, 2019 Nine Months Ended June 29, 2019 One-time Termination Benefits Contract Termination Total One-time Termination Benefits Contract Termination Total Beginning Balance: $ 288 $ 115 $ 403 $ — $ — $ — Additions: Media Networks 8 8 16 41 29 70 Parks, Experiences and Products 1 — 1 5 3 8 Studio Entertainment 24 32 56 94 55 149 Direct-to-Consumer & International 81 21 102 174 54 228 Corporate 19 11 30 107 46 153 Total Additions 133 72 205 421 187 608 Payments (53 ) (10 ) (63 ) (53 ) (10 ) (63 ) Other — — — — — — Ending Balance: $ 368 $ 177 $ 545 $ 368 $ 177 $ 545 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements of Income | SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 20,176 $ 69 $ 20,245 Costs and expenses Operating expenses — — (12,819 ) — (12,819 ) Selling, general, administrative and other — (133 ) (3,229 ) — (3,362 ) Depreciation and amortization — — (1,304 ) — (1,304 ) Total costs and expenses — (133 ) (17,352 ) — (17,485 ) Restructuring and impairment charges — — (207 ) — (207 ) Allocations to non-guarantor subsidiaries — 120 (120 ) — — Other income/(expense), net 43 7 (104 ) (69 ) (123 ) Interest income/(expense), net (172 ) (299 ) 60 — (411 ) Equity in the income (loss) of investees, net — — (1 ) — (1 ) Income from continuing operations before income taxes (129 ) (305 ) 2,452 — 2,018 Income taxes from continuing operations 25 59 (479 ) — (395 ) Earnings from subsidiary entities 1,505 2,654 — (4,159 ) — Net income from continuing operations 1,401 2,408 1,973 (4,159 ) 1,623 Income (loss) from discontinued operations 359 — 359 (359 ) 359 Net income 1,760 2,408 2,332 (4,518 ) 1,982 Less: Net income from continuing operations attributable to noncontrolling interests — — (186 ) — (186 ) Less: Net income from discontinued operations attributable to noncontrolling interests — — (36 ) — (36 ) Net income excluding noncontrolling interests $ 1,760 $ 2,408 $ 2,110 $ (4,518 ) $ 1,760 Comprehensive income excluding noncontrolling interests $ 1,825 $ 2,422 $ 2,138 $ (4,560 ) $ 1,825 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 15,271 $ (42 ) $ 15,229 Costs and expenses Operating expenses — — (8,348 ) — (8,348 ) Selling, general, administrative and other — (160 ) (2,053 ) — (2,213 ) Depreciation and amortization — (1 ) (743 ) — (744 ) Total costs and expenses — (161 ) (11,144 ) — (11,305 ) Restructuring and impairment charges — — — — Allocations to non-guarantor subsidiaries — 150 (150 ) — — Other income/(expense), net — 113 (155 ) 42 — Interest income/(expense), net — (179 ) 36 — (143 ) Equity in the income (loss) of investees, net — — 73 — 73 Income before taxes — (77 ) 3,931 — 3,854 Income taxes — 13 (808 ) — (795 ) Earnings from subsidiary entities — 2,980 — (2,980 ) — Net income — 2,916 3,123 (2,980 ) 3,059 Less: Net income attributable to noncontrolling interests — — (143 ) — (143 ) Net income excluding noncontrolling interests $ — $ 2,916 $ 2,980 $ (2,980 ) $ 2,916 Comprehensive income excluding noncontrolling interests $ — $ 2,999 $ 2,756 $ (2,756 ) $ 2,999 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Nine Months Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 50,320 $ 150 $ 50,470 Costs and expenses Operating expenses — — (30,196 ) — (30,196 ) Selling, general, administrative and other — (492 ) (7,352 ) — (7,844 ) Depreciation and amortization — (1 ) (2,863 ) — (2,864 ) Total costs and expenses — (493 ) (40,411 ) — (40,904 ) Restructuring and impairment charges — — (869 ) — (869 ) Allocations to non-guarantor subsidiaries — 450 (450 ) — — Other income/(expense), net 43 102 4,845 (150 ) 4,840 Interest income/(expense), net (346 ) (535 ) 264 — (617 ) Equity in the income (loss) of investees, net — — (234 ) — (234 ) Income from continuing operations before income taxes (303 ) (476 ) 13,465 — 12,686 Income taxes from continuing operations 63 96 (2,846 ) — (2,687 ) Earnings from subsidiary entities 1,821 11,487 — (13,308 ) — Net income from continuing operations 1,581 11,107 10,619 (13,308 ) 9,999 Income (loss) from discontinued operations 380 — 380 (380 ) 380 Net income 1,961 11,107 10,999 (13,688 ) 10,379 Less: Net income from continuing operations attributable to noncontrolling interests — — (343 ) — (343 ) Less: Net income from discontinued operations attributable to noncontrolling interests — — (36 ) — (36 ) Net income excluding noncontrolling interests $ 1,961 $ 11,107 $ 10,620 $ (13,688 ) $ 10,000 Comprehensive income excluding noncontrolling interests $ 2,026 $ 11,138 $ 10,623 $ (13,705 ) $ 10,082 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Nine Months Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total Revenues $ — $ — $ 45,224 $ (96 ) $ 45,128 Costs and expenses Operating expenses — — (24,618 ) — (24,618 ) Selling, general, administrative and other — (445 ) (6,094 ) — (6,539 ) Depreciation and amortization — (1 ) (2,216 ) — (2,217 ) Total costs and expenses — (446 ) (32,928 ) — (33,374 ) Restructuring and impairment charges — — (28 ) — (28 ) Allocations to non-guarantor subsidiaries — 416 (416 ) — — Other income/(expense), net — (14 ) 12 96 94 Interest income/(expense), net — (493 ) 78 — (415 ) Equity in the income (loss) of investees, net — — 122 — 122 Income before taxes — (537 ) 12,064 — 11,527 Income taxes — 47 (927 ) — (880 ) Earnings from subsidiary entities — 10,766 — (10,766 ) — Net income — 10,276 11,137 (10,766 ) 10,647 Less: Net income attributable to noncontrolling interests — — (371 ) — (371 ) Net income excluding noncontrolling interests $ — $ 10,276 $ 10,766 $ (10,766 ) $ 10,276 Comprehensive income excluding noncontrolling interests $ — $ 10,542 $ 10,683 $ (10,683 ) $ 10,542 |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total ASSETS Current assets Cash and cash equivalents $ 752 $ — $ 5,976 $ — $ 6,728 Receivables, net 434 — 15,240 (1 ) 15,673 Inventories — 4 1,512 — 1,516 Television costs and advances — — 4,526 — 4,526 Other current assets 99 8 928 — 1,035 Assets held for sale — — 1,892 — 1,892 Total current assets 1,285 12 30,074 (1 ) 31,370 Film and television costs — — 22,552 — 22,552 Investments in subsidiaries 127,471 279,884 — (407,355 ) — Other investments — — 3,872 — 3,872 Parks, resorts and other property, net — 10 31,382 — 31,392 Intangible assets, net — — 25,114 — 25,114 Goodwill — — 77,801 — 77,801 Noncurrent assets held for sale — — 12,591 — 12,591 Intercompany receivables 4,001 — 134,412 (138,413 ) — Other assets 311 501 4,479 (508 ) 4,783 Total assets $ 133,068 $ 280,407 $ 342,277 $ (546,277 ) $ 209,475 LIABILITIES AND EQUITY Current liabilities Accounts payable and other accrued liabilities $ 1,905 $ 267 $ 15,476 $ (1 ) $ 17,647 Current portion of borrowings 19,014 2,757 152 — 21,923 Deferred revenues and other 16 37 4,880 (203 ) 4,730 Liabilities held for sale — — 293 — 293 Total current liabilities 20,935 3,061 20,801 (204 ) 44,593 Non-current liabilities Borrowings $ 20,319 $ 13,770 $ 2,222 $ — $ 36,311 Deferred income taxes — — 10,709 (305 ) 10,404 Noncurrent liabilities held for sale — — 2,353 — 2,353 Other long-term liabilities 860 2,175 7,526 — 10,561 Intercompany payables 482 133,930 4,001 (138,413 ) — Total non-current liabilities 21,661 149,875 26,811 (138,718 ) 59,629 Redeemable noncontrolling interests — — 8,897 — 8,897 Total Disney Shareholders’ equity 90,472 127,471 279,884 (407,355 ) 90,472 Noncontrolling interests — — 5,884 — 5,884 Total equity 90,472 127,471 285,768 (407,355 ) 96,356 Total liabilities and equity $ 133,068 $ 280,407 $ 342,277 $ (546,277 ) $ 209,475 CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 1,367 $ 2,783 $ — $ 4,150 Receivables, net — 155 9,179 — 9,334 Inventories — 4 1,388 — 1,392 Television costs and advances — — 1,314 — 1,314 Other current assets — 152 483 — 635 Total current assets — 1,678 15,147 — 16,825 Film and television costs — — 7,888 — 7,888 Investments in subsidiaries — 149,880 — (149,880 ) — Other investments — — 2,899 — 2,899 Parks, resorts and other property, net — 12 29,528 — 29,540 Intangible assets, net — — 6,812 — 6,812 Goodwill — — 31,269 — 31,269 Intercompany receivables — — 79,793 (79,793 ) — Other assets — 911 3,178 (724 ) 3,365 Total assets $ — $ 152,481 $ 176,514 $ (230,397 ) $ 98,598 LIABILITIES AND EQUITY Current liabilities Accounts payable and other accrued liabilities $ — $ 688 $ 8,791 $ — $ 9,479 Current portion of borrowings — 3,751 39 — 3,790 Deferred revenues and other — 115 4,476 — 4,591 Total current liabilities — 4,554 13,306 — 17,860 Non-current liabilities Borrowings $ — $ 15,676 $ 1,408 $ — $ 17,084 Deferred income taxes — — 3,833 (724 ) 3,109 Other long-term liabilities — 3,685 2,905 — 6,590 Intercompany payables — 79,793 — (79,793 ) — Total non-current liabilities — 99,154 8,146 (80,517 ) 26,783 Redeemable noncontrolling interests — — 1,123 — 1,123 Total Disney Shareholders’ equity — 48,773 149,880 (149,880 ) 48,773 Noncontrolling interests — — 4,059 — 4,059 Total equity — 48,773 153,939 (149,880 ) 52,832 Total liabilities and equity $ — $ 152,481 $ 176,514 $ (230,397 ) $ 98,598 |
Condensed Consolidating Statements of Cash Flow | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 29, 2019 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total OPERATING ACTIVITIES Cash provided by operations $ 133 $ (1,170 ) $ 5,463 $ (160 ) $ 4,266 INVESTING ACTIVITIES Investments in parks, resorts and other property — — (3,567 ) — (3,567 ) Acquisitions (35,702 ) — 25,801 — (9,901 ) Intercompany investing activities, net 16,400 (11 ) (1,014 ) (15,375 ) — Other — — (317 ) — (317 ) Cash used in investing activities (19,302 ) (11 ) 20,903 (15,375 ) (13,785 ) FINANCING ACTIVITIES Commercial paper, net 3,983 (1,010 ) — — 2,973 Borrowings 31,100 — 248 — 31,348 Reduction of borrowings (16,100 ) (2,250 ) (689 ) — (19,039 ) Dividends — (1,310 ) — — (1,310 ) Repurchases of common stock — — — — — Proceeds from exercise of stock options 194 84 — — 278 Intercompany financing, net 805 4,552 (20,892 ) 15,535 — Contributions from / sales of noncontrolling interest — — 544 — 544 Acquisition of noncontrolling and redeemable noncontrolling interests — — (1,430 ) — (1,430 ) Other (61 ) (252 ) (518 ) — (831 ) Cash used in financing activities 19,921 (186 ) (22,737 ) 15,535 12,533 Discontinued operations — — 141 — 141 Impact of exchange rates on cash, cash equivalents and restricted cash — — 47 — 47 Change in cash, cash equivalents and restricted cash 752 (1,367 ) 3,817 — 3,202 Cash, cash equivalents and restricted cash, beginning of year — 1,367 2,788 — 4,155 Cash, cash equivalents and restricted cash, end of period $ 752 $ — $ 6,605 $ — $ 7,357 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 2018 (unaudited; in millions) TWDC Legacy Disney Non-Guarantor Subsidiaries Reclassifications & Eliminations Total OPERATING ACTIVITIES Cash provided by operations $ — $ 250 $ 10,298 $ (106 ) $ 10,442 INVESTING ACTIVITIES Investments in parks, resorts and other property — (2 ) (3,262 ) — (3,264 ) Acquisitions — — (1,581 ) — (1,581 ) Intercompany investing activities, net — (1,601 ) — 1,601 — Other — — (298 ) — (298 ) Cash used in investing activities — (1,603 ) (5,141 ) 1,601 (5,143 ) FINANCING ACTIVITIES Commercial paper, net — 453 — — 453 Borrowings — 997 59 — 1,056 Reduction of borrowings — (1,300 ) (56 ) — (1,356 ) Dividends — (1,266 ) (106 ) 106 (1,266 ) Repurchases of common stock — (3,577 ) — — (3,577 ) Intercompany financing, net — 6,116 (4,515 ) (1,601 ) — Proceeds from exercise of stock options — 129 — — 129 Contributions from / sales of noncontrolling interest — — 363 — 363 Other — (221 ) (562 ) — (783 ) Cash used in financing activities — 1,331 (4,817 ) (1,495 ) (4,981 ) Impact of exchange rates on cash, cash equivalents and restricted cash — — (51 ) — (51 ) Change in cash, cash equivalents and restricted cash — (22 ) 289 — 267 Cash, cash equivalents and restricted cash, beginning of year — 693 3,371 — 4,064 Cash, cash equivalents and restricted cash, end of period $ — $ 671 $ 3,660 $ — $ 4,331 |
Principles of Consolidation Pri
Principles of Consolidation Principles of Consolidation - Additional Information (Details) | Mar. 20, 2019 |
Hulu LLC | |
Schedule of Equity Method Investments | |
Equity Method Investment, Ownership Percentage | 60.00% |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||||
Segment Reporting Information | |||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] | |
Segment operating income | 3,961 | 4,189 | 11,432 | 12,412 | |||
Media Networks | |||||||
Segment Reporting Information | |||||||
Revenues | 6,713 | 5,534 | [1] | 18,317 | 16,597 | [2] | |
Segment operating income | 2,136 | 1,995 | 5,696 | 5,496 | |||
Parks, Experiences and Products | |||||||
Segment Reporting Information | |||||||
Revenues | [3] | 6,575 | 6,136 | [1] | 19,570 | 18,566 | [2] |
Segment operating income | [3] | 1,719 | 1,655 | 5,377 | 4,918 | ||
Studio Entertainment | |||||||
Segment Reporting Information | |||||||
Revenues | [3] | 3,836 | 2,880 | [1] | 7,817 | 7,888 | [2] |
Segment operating income | [3] | 792 | 701 | 1,607 | 2,400 | ||
Direct-to-Consumer & International | |||||||
Segment Reporting Information | |||||||
Revenues | 3,858 | 827 | [1] | 5,921 | 2,589 | [2] | |
Segment operating income | (553) | (168) | (1,074) | (398) | |||
Eliminations | |||||||
Segment Reporting Information | |||||||
Revenues | (737) | (148) | [1] | (1,155) | (512) | [2] | |
Segment operating income | $ (133) | $ 6 | $ (174) | $ (4) | |||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[3] | Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. |
Financial Information by Oper_2
Financial Information by Operating Segments- Intersegment Eliminations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||||
Segment Reporting Information | |||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] | |
Studio Entertainment | |||||||
Segment Reporting Information | |||||||
Revenues | [3] | 3,836 | 2,880 | [1] | 7,817 | 7,888 | [2] |
Parks, Experiences and Products | |||||||
Segment Reporting Information | |||||||
Revenues | [3] | 6,575 | 6,136 | [1] | 19,570 | 18,566 | [2] |
Intersegment Eliminations | Studio Entertainment | |||||||
Segment Reporting Information | |||||||
Revenues | 126 | 119 | 406 | 426 | |||
Intersegment Eliminations | Parks, Experiences and Products | |||||||
Segment Reporting Information | |||||||
Revenues | $ (126) | $ (119) | $ (406) | $ (426) | |||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[3] | Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. |
Description of Business and Seg
Description of Business and Segment Information Financial Information by Operating Segments (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Segment Reporting Information | ||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] |
Segment operating income | 3,961 | 4,189 | 11,432 | 12,412 | ||
Media Networks | ||||||
Segment Reporting Information | ||||||
Revenues | 6,713 | 5,534 | [1] | 18,317 | 16,597 | [2] |
Segment operating income | 2,136 | 1,995 | 5,696 | 5,496 | ||
Direct-to-Consumer & International | ||||||
Segment Reporting Information | ||||||
Revenues | 3,858 | 827 | [1] | 5,921 | 2,589 | [2] |
Segment operating income | (553) | (168) | (1,074) | (398) | ||
Studio Entertainment intersegment content transactions | Media Networks | ||||||
Segment Reporting Information | ||||||
Revenues | (41) | (25) | (75) | (120) | ||
Segment operating income | (16) | 7 | (11) | (2) | ||
Studio Entertainment intersegment content transactions | Direct-to-Consumer & International | ||||||
Segment Reporting Information | ||||||
Revenues | (82) | (8) | (182) | (24) | ||
Segment operating income | (35) | 0 | (79) | 0 | ||
Media Networks intersegment content transactions | Direct-to-Consumer & International | ||||||
Segment Reporting Information | ||||||
Revenues | (614) | (115) | (898) | (368) | ||
Segment operating income | (82) | (1) | (84) | (2) | ||
Intersegment transactions | ||||||
Segment Reporting Information | ||||||
Revenues | (737) | (148) | (1,155) | (512) | ||
Segment operating income | $ (133) | $ 6 | $ (174) | $ (4) | ||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Equity in the Income of Investe
Equity in the Income of Investees included in Segment Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees, net | $ (1) | $ 73 | $ (234) | $ 122 | |
Equity Method Investment, Other than Temporary Impairment | [1] | (185) | 0 | (538) | 0 |
Amortization of Intangible Assets Held by Equity Investees | (15) | 0 | (15) | 0 | |
Media Networks | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees, net | 192 | 197 | 553 | 538 | |
Parks, Experiences and Products | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees, net | 0 | (5) | (12) | (19) | |
Direct-to-Consumer & International | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees, net | 7 | (119) | (222) | (397) | |
Total Segments | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees, net | $ 199 | $ 73 | $ 319 | $ 122 | |
[1] | an impairment of an investment in a cable channel at A+E Television Networks |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | |||||
Segment operating income | $ 3,961 | $ 4,189 | $ 11,432 | $ 12,412 | |
Corporate and unallocated shared expenses | (238) | (192) | (678) | (536) | |
Restructuring and impairment charges | (207) | 0 | (869) | (28) | |
Other income/(expense), net | (123) | 0 | 4,840 | 94 | |
Interest expense, net | (411) | (143) | (617) | (415) | |
Amortization of Intangible Assets | [1] | (779) | 0 | (884) | 0 |
Equity Method Investment, Other than Temporary Impairment | [2] | (185) | 0 | (538) | 0 |
Income from continuing operations before income taxes | $ 2,018 | $ 3,854 | $ 12,686 | $ 11,527 | |
[1] | For the quarter ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $490 million , $274 million and $15 million , respectively. For the nine-months ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $562 million , $307 million and $15 million , respectively. | ||||
[2] | an impairment of an investment in a cable channel at A+E Television Networks |
Description of Business and S_2
Description of Business and Segment Information Amortization of Intangible Assets and Fair Value Step-Up (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Amortization of Intangible Assets | [1] | $ 779 | $ 0 | $ 884 | $ 0 |
Amortization of Intangible Assets Held by Equity Investees | (15) | $ 0 | (15) | $ 0 | |
21CF | |||||
Amortization of Intangible Assets Held by Equity Investees | 15 | 15 | |||
21CF | Film and Television Production Cost | |||||
Amortization | 274 | 307 | |||
21CF and Hulu | |||||
Amortization of Intangible Assets | $ 490 | $ 562 | |||
[1] | For the quarter ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $490 million , $274 million and $15 million , respectively. For the nine-months ended June 29, 2019 , amortization of intangible assets, step-up of film and television costs and intangibles related to 21CF equity investees were $562 million , $307 million and $15 million , respectively. |
Description of Business and S_3
Description of Business and Segment information - Additional Information (Details) | Jun. 29, 2019 |
Hong Kong Disneyland Resort | |
Segment Reporting Information | |
Effective Ownership Interest | 47.00% |
Shanghai Disney Resort | |
Segment Reporting Information | |
Effective Ownership Interest | 43.00% |
Viceland | A&E | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 50.00% |
Viceland | Vice Media | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 50.00% |
A&E | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 50.00% |
Direct-to-Consumer & International | BAMTech, LLC | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 75.00% |
Direct-to-Consumer & International | Endemol Shine Group | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 50.00% |
Direct-to-Consumer & International | Vice Media | |
Segment Reporting Information | |
Equity Method Investment, Ownership Percentage | 27.00% |
ESPN | |
Segment Reporting Information | |
Effective Ownership Interest | 80.00% |
National Geographic | |
Segment Reporting Information | |
Effective Ownership Interest | 73.00% |
Cumulative Effect of Adoption o
Cumulative Effect of Adoption on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables - current/non-current | $ 18,293 | $ 11,021 | |
Film and television costs and advances - current/non-current | 27,078 | 9,250 | |
Accounts payable and other accrued liabilities | 17,647 | 10,518 | $ 9,479 |
Deferred revenue and other | 4,730 | 3,509 | |
Deferred income taxes | 10,404 | 3,075 | |
Equity | 96,356 | 52,716 | 52,832 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables - current/non-current | 18,450 | 11,262 | |
Film and television costs and advances - current/non-current | 27,031 | 9,202 | |
Accounts payable and other accrued liabilities | 16,488 | 9,479 | |
Deferred revenue and other | 5,888 | 4,591 | |
Deferred income taxes | 10,429 | 3,109 | |
Equity | 96,444 | $ 52,832 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables - current/non-current | (157) | (241) | |
Film and television costs and advances - current/non-current | 47 | 48 | |
Accounts payable and other accrued liabilities | 1,159 | 1,039 | |
Deferred revenue and other | (1,158) | (1,082) | |
Deferred income taxes | (25) | (34) | |
Equity | $ (88) | $ (116) |
Impact of Adoption on the Conde
Impact of Adoption on the Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] |
Cost and expenses | (17,485) | (11,305) | (40,904) | (33,374) | ||
Income taxes | (395) | (795) | (2,687) | (880) | ||
Net income | 1,982 | $ 3,059 | 10,379 | $ 10,647 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Revenues | 20,250 | 50,260 | ||||
Cost and expenses | (17,437) | (40,730) | ||||
Income taxes | (407) | (2,679) | ||||
Net income | 2,023 | 10,351 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
New Accounting Pronouncements or Change in Accounting Principle | ||||||
Revenues | (5) | 210 | ||||
Cost and expenses | (48) | (174) | ||||
Income taxes | 12 | (8) | ||||
Net income | $ (41) | $ 28 | ||||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Disaggregation of Revenue by Ma
Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | [1] | Jun. 29, 2019 | Jun. 30, 2018 | [2] | ||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 20,245 | $ 15,229 | $ 50,470 | $ 45,128 | |||
Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 4,449 | 3,332 | 11,481 | 9,934 | |||
Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 3,363 | 1,988 | 7,884 | 6,310 | |||
Theme park admissions | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,956 | 1,834 | 5,657 | 5,356 | |||
Resort and vacations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,610 | 1,530 | 4,644 | 4,454 | |||
Retail and wholesale sales of merchandise, food and beverage | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,877 | 1,800 | 5,767 | 5,566 | |||
TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,485 | 1,256 | 3,926 | 3,464 | |||
Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2,240 | 1,505 | 3,365 | 3,630 | |||
Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 769 | 694 | 2,455 | 2,443 | |||
Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 456 | 417 | 1,200 | 1,300 | |||
Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2,040 | 873 | 4,091 | 2,671 | |||
Media Networks | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 6,713 | 5,534 | 18,317 | 16,597 | |||
Media Networks | Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 3,564 | 2,981 | 9,873 | 8,891 | |||
Media Networks | Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,874 | 1,677 | 5,521 | 5,283 | |||
Media Networks | TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,150 | 822 | 2,617 | 2,205 | |||
Media Networks | Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Media Networks | Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Media Networks | Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Media Networks | Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 125 | 54 | 306 | 218 | |||
Parks, Experiences and Products | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | [3] | 6,575 | 6,136 | 19,570 | 18,566 | ||
Parks, Experiences and Products | Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Parks, Experiences and Products | Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 1 | 3 | 5 | |||
Parks, Experiences and Products | Theme park admissions | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,956 | 1,834 | 5,657 | 5,356 | |||
Parks, Experiences and Products | Resort and vacations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,610 | 1,530 | 4,644 | 4,454 | |||
Parks, Experiences and Products | Retail and wholesale sales of merchandise, food and beverage | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,877 | 1,800 | 5,767 | 5,566 | |||
Parks, Experiences and Products | TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Parks, Experiences and Products | Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Parks, Experiences and Products | Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 631 | 560 | 2,009 | 1,963 | |||
Parks, Experiences and Products | Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Parks, Experiences and Products | Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 501 | 411 | 1,490 | 1,222 | |||
Studio Entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | [3] | 3,836 | 2,880 | 7,817 | 7,888 | ||
Studio Entertainment | Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Studio Entertainment | Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Studio Entertainment | TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 746 | 560 | 2,069 | 1,698 | |||
Studio Entertainment | Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2,240 | 1,505 | 3,365 | 3,630 | |||
Studio Entertainment | Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 126 | 116 | 406 | 426 | |||
Studio Entertainment | Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 432 | 388 | 1,127 | 1,220 | |||
Studio Entertainment | Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 292 | 311 | 850 | 914 | |||
Direct-to-Consumer & International | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 3,858 | 827 | 5,921 | 2,589 | |||
Direct-to-Consumer & International | Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 993 | 351 | 1,728 | 1,043 | |||
Direct-to-Consumer & International | Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,489 | 310 | 2,360 | 1,022 | |||
Direct-to-Consumer & International | TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 218 | 22 | 275 | 73 | |||
Direct-to-Consumer & International | Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Direct-to-Consumer & International | Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 12 | 18 | 40 | 54 | |||
Direct-to-Consumer & International | Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 24 | 29 | 73 | 80 | |||
Direct-to-Consumer & International | Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,122 | 97 | 1,445 | 317 | |||
Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (737) | (148) | (1,155) | (512) | |||
Eliminations | Affiliate fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (108) | 0 | (120) | 0 | |||
Eliminations | Advertising | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Eliminations | TV/SVOD distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (629) | (148) | (1,035) | (512) | |||
Eliminations | Theatrical distribution licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Eliminations | Merchandise licensing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Eliminations | Home entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Eliminations | Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[3] | Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. |
Disaggregation of Revenue by Ge
Disaggregation of Revenue by Geographical Markets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | [1] | Jun. 29, 2019 | Jun. 30, 2018 | [2] | ||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 20,245 | $ 15,229 | $ 50,470 | $ 45,128 | |||
United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 13,909 | 37,154 | |||||
Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2,353 | 5,452 | |||||
Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2,905 | 5,641 | |||||
Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,078 | 2,223 | |||||
Media Networks | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 6,713 | 5,534 | 18,317 | 16,597 | |||
Media Networks | United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 6,338 | 17,464 | |||||
Media Networks | Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 295 | 585 | |||||
Media Networks | Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 63 | 195 | |||||
Media Networks | Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 17 | 73 | |||||
Parks, Experiences and Products | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | [3] | 6,575 | 6,136 | 19,570 | 18,566 | ||
Parks, Experiences and Products | United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 4,911 | 14,742 | |||||
Parks, Experiences and Products | Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 776 | 2,261 | |||||
Parks, Experiences and Products | Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 837 | 2,399 | |||||
Parks, Experiences and Products | Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 51 | 168 | |||||
Studio Entertainment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | [3] | 3,836 | 2,880 | 7,817 | 7,888 | ||
Studio Entertainment | United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,728 | 3,840 | |||||
Studio Entertainment | Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 889 | 1,878 | |||||
Studio Entertainment | Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 874 | 1,548 | |||||
Studio Entertainment | Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 345 | 551 | |||||
Direct-to-Consumer & International | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 3,858 | 827 | 5,921 | 2,589 | |||
Direct-to-Consumer & International | United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,533 | 2,078 | |||||
Direct-to-Consumer & International | Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 473 | 846 | |||||
Direct-to-Consumer & International | Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,187 | 1,566 | |||||
Direct-to-Consumer & International | Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 665 | 1,431 | |||||
Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (737) | $ (148) | (1,155) | $ (512) | |||
Eliminations | United States and Canada | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (601) | (970) | |||||
Eliminations | Europe | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (80) | (118) | |||||
Eliminations | Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (56) | (67) | |||||
Eliminations | Latin America | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 0 | $ 0 | |||||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | ||||||
[3] | Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products 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 Parks, Experiences and Products revenues and operating income was $126 million and $119 million for the quarters ended June 29, 2019 and June 30, 2018 , respectively, and $406 million and $426 million for the nine months ended June 29, 2019 and June 30, 2018 , respectively. |
Contract with Customer, Asset a
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 30, 2018 |
Contract with Customer, Asset, Gross | $ 99 | $ 89 |
Accounts Receivable, Gross, Current | 14,414 | 8,553 |
Accounts Receivable, Gross, Noncurrent | 2,008 | 1,640 |
Allowance for Doubtful Accounts Receivable | (265) | (226) |
Deferred Revenue and Credits, Current | 4,135 | 2,926 |
Deferred Revenue and Credits, Noncurrent | $ 581 | $ 609 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | Mar. 20, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 29, 2019 |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 600 | $ 900 | ||
Revenue, Remaining Performance Obligation, Amount | 16,000 | 16,000 | ||
Contract with Customer, Liability, Revenue Recognized | 300 | 2,500 | ||
Unsatisfied performance obligation recognized in fiscal 2019 | ||||
Revenue, Remaining Performance Obligation, Amount | 2,000 | 2,000 | ||
Unsatisfied performance obligation recognized in fiscal 2020 | ||||
Revenue, Remaining Performance Obligation, Amount | 6,000 | 6,000 | ||
Unsatisfied performance obligation recognized in fiscal 2021 | ||||
Revenue, Remaining Performance Obligation, Amount | 4,000 | 4,000 | ||
Unsatisfied performance obligation recognized thereafter | ||||
Revenue, Remaining Performance Obligation, Amount | 5,000 | 5,000 | ||
Accounting Standards Update 2014-09 | ||||
Adoption of new accounting guidance | $ 116 | |||
Contract with Customer, Asset, Accumulated Allowance for Credit Loss | 100 | 100 | ||
Customer Advances and Deposits | 1,000 | $ 1,000 | ||
21CF | ||||
Increase (Decrease) in Deferred Revenue | $ 700 | |||
Contract with Customer, Liability, Revenue Recognized | $ 400 |
Acquisitions Acquisition Fair V
Acquisitions Acquisition Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Mar. 20, 2019 | Sep. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 77,801 | $ 31,269 | |
Initial Allocation | 21CF | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 25,666 | ||
Receivables | 4,746 | ||
Film and Television Costs | 20,120 | ||
Investments | 1,471 | ||
Intangible Assets | 20,385 | ||
Net Assets Held for Sale | 11,704 | ||
Accounts Payable and Other Liabilities | (10,753) | ||
Borrowings | (21,723) | ||
Deferred Income Taxes | (6,497) | ||
Other Net Liabilities Acquired | (3,865) | ||
Noncontrolling Interest | (10,638) | ||
Goodwill | 43,751 | ||
Fair Value of Net Assets Acquired | 74,367 | ||
Parents Previously Held Equity Interest in Investee Now Consolidated | (4,860) | ||
Total Purchase Price | 69,507 | ||
Valuation Adjustments | 21CF | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Receivables | 154 | ||
Film and Television Costs | (2,135) | ||
Investments | 53 | ||
Intangible Assets | (1,325) | ||
Net Assets Held for Sale | (414) | ||
Accounts Payable and Other Liabilities | (1,357) | ||
Borrowings | 0 | ||
Deferred Income Taxes | 975 | ||
Other Net Liabilities Acquired | 1,060 | ||
Noncontrolling Interest | 96 | ||
Goodwill | 2,770 | ||
Fair Value of Net Assets Acquired | (123) | ||
Parents Previously Held Equity Interest in Investee Now Consolidated | 123 | ||
Total Purchase Price | 0 | ||
Updated Allocation | 21CF | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 25,666 | ||
Receivables | 4,900 | ||
Film and Television Costs | 17,985 | ||
Investments | 1,524 | ||
Intangible Assets | 19,060 | ||
Net Assets Held for Sale | 11,290 | ||
Accounts Payable and Other Liabilities | (12,110) | ||
Borrowings | (21,723) | ||
Deferred Income Taxes | (5,522) | ||
Other Net Liabilities Acquired | (2,805) | ||
Noncontrolling Interest | (10,542) | ||
Goodwill | 46,521 | ||
Fair Value of Net Assets Acquired | 74,244 | ||
Parents Previously Held Equity Interest in Investee Now Consolidated | (4,737) | ||
Total Purchase Price | $ 69,507 |
Acquisitions Summarized Financi
Acquisitions Summarized Financial Information of Acquiree (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | [1] | Jun. 29, 2019 | Jun. 30, 2018 | [2] | |
Revenues | $ 20,245 | $ 15,229 | $ 50,470 | $ 45,128 | ||
21CF | ||||||
Revenues | 3,490 | 3,863 | ||||
Net Loss from Continuing Operations | (556) | (611) | ||||
Hulu LLC | ||||||
Revenues | 906 | 1,039 | ||||
Net Loss from Continuing Operations | $ (357) | $ (416) | ||||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Acquisitions Pro Forma Financia
Acquisitions Pro Forma Financial Information (Details) - 21CF - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Revenues | $ 59,017 | $ 58,223 |
Net Income | 6,259 | 11,800 |
Net Income Attributable to Disney | $ 6,147 | $ 11,971 |
Pro Forma Earnings Per Share, Diluted | $ 3.22 | $ 6.58 |
Pro Forma Earnings Per Share, Basic | $ 3.24 | $ 6.62 |
Acquisitions Assets and Liabili
Acquisitions Assets and Liabilities of Operations Classified as Held for Sale (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Current Assets Classified as Held for Sale | $ 1,892 | $ 0 |
Total Current Liabilities Classified as Held for Sale | 293 | $ 0 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 591 | |
Receivables and Other Current Assets | 964 | |
Television Costs and Advances | 337 | |
Total Current Assets Classified as Held for Sale | 1,892 | |
Film and Television Costs | 1,704 | |
Property and Equipment and Other Assets | 69 | |
Intangible Assets, Net | 7,748 | |
Goodwill | 3,070 | |
Total Assets Classified as Held for Sale | 14,483 | |
Accounts Payable and Other Accrued Liabilities | 246 | |
Current Portion of Borrowings | 44 | |
Deferred Revenue and Other | 3 | |
Total Current Liabilities Classified as Held for Sale | 293 | |
Borrowings | 1,057 | |
Other Long-term Liabilities | 241 | |
Redeemable Noncontrolling Interests | 1,055 | |
Total Liabilities Classified as Held for Sale | $ 2,646 |
Acquisitions Changes in Carry A
Acquisitions Changes in Carry Amount of Goodwill (Details) $ in Millions | 9 Months Ended | |
Jun. 29, 2019USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 31,269 | |
Segment Recast | 0 | [1] |
Acquisitions | 46,521 | [2] |
Other, net | 11 | |
Ending balance | 77,801 | |
Media Networks | ||
Goodwill [Line Items] | ||
Beginning balance | 19,388 | |
Segment Recast | (3,399) | [1] |
Acquisitions | 0 | [2] |
Other, net | 0 | |
Ending balance | 15,989 | |
Parks And Resorts | ||
Goodwill [Line Items] | ||
Beginning balance | 291 | |
Segment Recast | (291) | [1] |
Acquisitions | 0 | [2] |
Other, net | 0 | |
Ending balance | 0 | |
Studio Entertainment | ||
Goodwill [Line Items] | ||
Beginning balance | 7,164 | |
Segment Recast | (70) | [1] |
Acquisitions | 0 | [2] |
Other, net | 4 | |
Ending balance | 7,098 | |
Consumer Products and Interactive | ||
Goodwill [Line Items] | ||
Beginning balance | 4,426 | |
Segment Recast | (4,426) | [1] |
Acquisitions | 0 | [2] |
Other, net | 0 | |
Ending balance | 0 | |
Parks, Experiences and Products | ||
Goodwill [Line Items] | ||
Beginning balance | 0 | |
Segment Recast | 4,487 | [1] |
Acquisitions | 0 | [2] |
Other, net | 0 | |
Ending balance | 4,487 | |
Direct-to-Consumer & International | ||
Goodwill [Line Items] | ||
Beginning balance | 0 | |
Segment Recast | 3,699 | [1] |
Acquisitions | 0 | [2] |
Other, net | 7 | |
Ending balance | 3,706 | |
Unallocated | ||
Goodwill [Line Items] | ||
Beginning balance | 0 | |
Segment Recast | 0 | |
Acquisitions | 46,521 | |
Other, net | 0 | |
Ending balance | $ 46,521 | |
[1] | Represents the reallocation of goodwill as a result of the Company recasting its segments (see Note 2). | |
[2] | Represents the acquisition of 21CF and consolidation of Hulu. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 20, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | May 13, 2019 | May 03, 2019 | Apr. 15, 2019 | Sep. 29, 2018 | |||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity in the income / (loss) of investees, net | $ (1) | $ 73 | $ (234) | $ 122 | ||||||||
Equity-based compensation | 591 | 307 | ||||||||||
Restricted Stock or Unit Expense | [1] | 114 | 92 | 527 | 240 | |||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 8,897 | 8,897 | $ 1,123 | |||||||||
Revenues | 20,245 | 15,229 | [2] | 50,470 | 45,128 | [3] | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (1,623) | $ (3,059) | (9,999) | (10,647) | ||||||||
Hulu LLC | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | |||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss | 123 | |||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 4,800 | |||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 30.00% | |||||||||||
Other Commitment | $ 3,400 | $ 3,400 | ||||||||||
Hulu LLC | Maximum | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Consolidated Equity Method Investee, Financial Support Amount | $ 1,500 | |||||||||||
Hulu LLC | Hulu Redemption, NBC Universal Participates | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 67.00% | 67.00% | ||||||||||
A&E | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||||||||
21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||||||||||
Business Acquisition, Effective Date of Acquisition | Mar. 20, 2019 | |||||||||||
Payments to Acquire Businesses, Gross | $ 35,700 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 33,800 | |||||||||||
Business Acquisition, Share Price | $ 110 | |||||||||||
Equity-based compensation | $ 361 | |||||||||||
Restricted Stock or Unit Expense | $ 39 | $ 279 | ||||||||||
Business Combination, Acquired Receivable, Fair Value | 4,900 | |||||||||||
Business Combination, Consideration Transferred | $ 69,500 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 307 | |||||||||||
Other Commitment | $ 31,000 | |||||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Equity Method Investments | 1,200 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 300 | |||||||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 5,100 | |||||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | $ 200 | |||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 258 | |||||||||||
Revenues | $ 3,490 | 3,863 | ||||||||||
21CF | Minimum | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||||||||||
21CF | Maximum | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 40 years | |||||||||||
21CF | Pro Forma | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Interest Expense, Debt | 300 | 300 | ||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 400 | |||||||||||
21CF | Endemol Shine Group | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||||
21CF | Tata Sky Limited | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 30.00% | |||||||||||
Equity Interest Held by 21CF [Member] | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity in the income / (loss) of investees, net | 300 | |||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 10,800 | $ 10,800 | ||||||||||
Equity Interest Held by 21CF [Member] | Hulu LLC | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 30.00% | |||||||||||
Equity Interest Held by 21CF [Member] | Sky plc | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Other Transaction Details | 39.00% | |||||||||||
Equity Interest Held by Warner Media LLC | Hulu LLC | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | |||||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 1,400 | |||||||||||
Equity Interest Held by NBC Universal | Hulu LLC | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 33.00% | 33.00% | ||||||||||
Percentage of Tax Benefit Owed to Third Party Upon Option Exercise | 50.00% | |||||||||||
Equity Interest Held by NBC Universal | Hulu LLC | Minimum | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Equity Method Investment, Ownership Percentage | 21.00% | |||||||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 7,800 | $ 7,800 | ||||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 27,500 | |||||||||||
Restricted Stock Units | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Unrecognized compensation cost | $ 716 | $ 716 | ||||||||||
Restricted Stock Units | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Unrecognized compensation cost | $ 219 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | |||||||||||
Public Debt | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Debt, Weighted Average Interest Rate | 5.94% | 5.94% | ||||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Principle Balance of Notes Exchanged | $ 16,800 | |||||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Principle Balance | 17,400 | |||||||||||
Regional Sports Networks | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Other Commitment | $ 22,000 | |||||||||||
New Fox | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Other Commitment | $ 300 | $ 300 | ||||||||||
Discontinued Operations, Held-for-sale | Pro Forma | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 600 | $ 500 | ||||||||||
Selling, General and Administrative Expenses | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 158 | |||||||||||
Interest Expense | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 100 | |||||||||||
Film and Television Production Cost | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Amortization | $ 274 | 307 | ||||||||||
Film and Television Production Cost | 21CF | Pro Forma | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Amortization | 2,700 | 2,800 | ||||||||||
Film and Television Production Cost | Regional Sports Networks | 21CF | Pro Forma | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Amortization | $ 400 | 600 | ||||||||||
Pending Approval | Discontinued Operations, Held-for-sale | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,000 | |||||||||||
Acceleration | 21CF | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Restricted Stock or Unit Expense | 164 | |||||||||||
Acceleration | 21CF | Pro Forma | ||||||||||||
Business Acquisition And Equity Method Investments | ||||||||||||
Restricted Stock or Unit Expense | $ 200 | |||||||||||
[1] | Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . | |||||||||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||||||||
[3] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Other Income Other Income (Deta
Other Income Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Schedule of Other Income and Expense [Line Items] | |||||
Hulu Gain | [1] | $ (123) | $ 0 | $ 4,794 | $ 0 |
Insurance recoveries related to legal matters | 0 | 0 | 46 | 38 | |
Gain on sale of property rights and other | 0 | 0 | 0 | 56 | |
Other Income | $ (123) | $ 0 | $ 4,840 | $ 94 | |
[1] | The quarter ended June 29, 2019, reflects an adjustment to the amount recognized in the second quarter of fiscal 2019. See Note 4 for further details. |
Reconciliation of Cash, Cash Eq
Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported in the Condensed Consolidated Balance Sheet to the Total Amount in the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,728 | $ 4,150 | ||
Restricted Cash and Investments, Current | 1 | 1 | ||
Restricted Cash and Investments, Noncurrent | 37 | 4 | ||
Disposal Group, Including Discontinued Operation, Cash | 591 | 0 | ||
Cash, Cash Equivalents and Restricted Cash in the Statement of Cash Flows | $ 7,357 | $ 4,155 | $ 4,331 | $ 4,064 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 9 Months Ended | |
Jun. 29, 2019USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 20,874 | |
Borrowings | 36,327 | |
Payments | (21,013) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 22,792 | |
Other Activity | 355 | |
Borrowings ending balance | 59,335 | |
Commercial paper with original maturities less than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 50 | |
Borrowings | 819 | [1] |
Payments | 0 | [1] |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 0 | [1] |
Other Activity | 19 | |
Borrowings ending balance | 888 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 955 | |
Borrowings | 4,110 | |
Payments | (1,956) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 0 | |
Other Activity | 17 | |
Borrowings ending balance | 3,126 | |
U.S. and European notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 17,942 | |
Borrowings | 0 | |
Payments | (2,250) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 21,174 | |
Other Activity | (66) | |
Borrowings ending balance | 36,800 | |
Bridge Loan | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 0 | |
Borrowings | 31,100 | |
Payments | (16,100) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 0 | |
Other Activity | 0 | |
Borrowings ending balance | 15,000 | |
Asia International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,145 | |
Borrowings | 0 | |
Payments | (48) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 0 | |
Other Activity | 44 | |
Borrowings ending balance | 1,141 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 782 | |
Borrowings | 248 | |
Payments | (641) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 549 | |
Other Activity | 341 | [2] |
Borrowings ending balance | 1,279 | |
Continuing Operations | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 20,874 | |
Borrowings | 36,277 | |
Payments | (20,995) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 21,723 | |
Other Activity | 355 | |
Borrowings ending balance | 58,234 | |
Discontinued Operations, Held-for-sale | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 0 | |
Borrowings | 50 | |
Payments | (18) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 1,069 | |
Other Activity | 0 | |
Borrowings ending balance | $ 1,101 | |
[1] | Borrowings and reductions of borrowings are reported net. | |
[2] | The other activity is due to market value adjustments for debt with qualifying hedges, partially offset by the impact of changes in foreign currency exchange rates. |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Borrowings Line of Credit Facilities (Details) $ in Millions | 9 Months Ended |
Jun. 29, 2019USD ($) | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | $ 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 12,250 |
Line of Credit Facility, Maximum Borrowing Capacity | 12,250 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 6,000 |
Line of Credit Facility, Expiration Date | Mar. 31, 2020 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 4,000 |
Line of Credit Facility, Expiration Date | Mar. 31, 2023 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 |
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 |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash and Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Interest expense | $ (472) | $ (175) | $ (833) | $ (493) |
Interest and investment income | 34 | 32 | 139 | 78 |
Net periodic pension and postretirement benefit costs other than service costs | 27 | 0 | 77 | 0 |
Interest expense, net | $ (411) | $ (143) | $ (617) | $ (415) |
Cash, Cash Equivalents, Restr_5
Cash, Cash Equivalents, Restricted Cash and Borrowings - Additional Information (Details) - USD ($) $ in Millions | Mar. 21, 2019 | Mar. 20, 2019 | Jun. 29, 2019 |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 | ||
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 & Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. | ||
Letters of Credit Outstanding, Amount | $ 1,200 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Variable Spread Above LIBOR | 0.18% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Variable Spread Above LIBOR | 1.63% | ||
Existing Line of Credit 3 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000 | ||
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | ||
Existing Line Of Credit 1 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,250 | ||
Line of Credit Facility, Expiration Date | Mar. 31, 2021 | ||
Existing Line of Credit 2 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 | ||
Line of Credit Facility, Expiration Date | Mar. 31, 2023 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | ||
Disney Cruise Line | |||
Debt Instrument [Line Items] | |||
Loan to Cost Ratio | 80.00% | ||
Disney Cruise Line | Credit Facility available beginning April 2021 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.48% | ||
Disney Cruise Line | Credit Facility available beginning May 2022 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | ||
Disney Cruise Line | Credit Facility available beginning April 2023 | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.74% | ||
Hulu LLC | |||
Debt Instrument [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 338 | ||
Yankees Entertainment and Sports Network | Term loan and credit facilities | |||
Debt Instrument [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 1,600 | ||
Debt Instrument, Maturity Date | Dec. 31, 2023 | ||
Yankees Entertainment and Sports Network | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,100 | ||
Yankees Entertainment and Sports Network | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 50 | ||
21CF | Public Debt | |||
Debt Instrument [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 21,200 | ||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Principle Balance | $ 17,400 | ||
Debt Assumed Exchanged for Parent Ratio | 96.00% | ||
Debt Assumed Exchanged for Parent, Amount | $ 16,800 | ||
Debt, Weighted Average Interest Rate | 5.94% | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.11% | ||
21CF | Public Debt | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 1 year | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||
21CF | Public Debt | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 77 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | ||
21CF | Bridge Loan | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 31,100 | ||
Repayments of Lines of Credit | $ 16,100 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 15,000 | ||
Line of Credit Facility, Interest Rate at Period End | 3.26% | ||
21CF | Bridge Loan | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable Spread Above LIBOR | 0.875% | ||
21CF | Term loan and credit facilities | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 7.30% | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | $ 211 |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of International Theme Parks (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 | |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and Cash Equivalents | $ 6,728 | $ 4,150 | |
Other current assets | 1,035 | 635 | |
Total current assets | 31,370 | 16,825 | |
Parks, resorts and other property | 31,392 | 29,540 | |
Other assets | 4,783 | 3,365 | |
Total assets | 209,475 | 98,598 | |
Current liabilities | 44,593 | 17,860 | |
Long-term borrowings | 36,311 | 17,084 | |
International Theme Parks | |||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and Cash Equivalents | 825 | 834 | |
Other current assets | 392 | 400 | |
Total current assets | 1,217 | 1,234 | |
Parks, resorts and other property | 8,860 | 8,973 | |
Other assets | 86 | 103 | |
Total assets | [1] | 10,163 | 10,310 |
Current liabilities | 653 | 921 | |
Long-term borrowings | 1,141 | 1,106 | |
Other long-term liabilities | 367 | 382 | |
Total liabilities | [1] | $ 2,161 | $ 2,409 |
[1] | Total assets of the Asia Theme Parks were $8 billion at both June 29, 2019 and September 29, 2018 including parks, resorts and other property of $7 billion . Total liabilities of the Asia Theme Parks were $2 billion at both June 29, 2019 and September 29, 2018 |
International Theme Parks Impac
International Theme Parks Impact of Consolidating Balance Sheets of International Theme Parks - Asia International Theme Parks (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 | |
Schedule Of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
Total assets | $ 209,475 | $ 98,598 | |
Parks, resorts and other property | 31,392 | 29,540 | |
Asia International Theme Parks | |||
Schedule Of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
Total assets | 8,000 | 8,000 | |
Parks, resorts and other property | 7,000 | 7,000 | |
Total liabilities | $ 2,000 | [1] | $ 2,000 |
[1] | Total assets of the Asia Theme Parks were $8 billion at both June 29, 2019 and September 29, 2018 including parks, resorts and other property of $7 billion . Total liabilities of the Asia Theme Parks were $2 billion at both June 29, 2019 and September 29, 2018 |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] |
Cost and expenses | (17,485) | (11,305) | (40,904) | (33,374) | ||
Equity in the loss of investees | $ (1) | $ 73 | (234) | $ 122 | ||
International Theme Parks | ||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||||
Revenues | 2,794 | |||||
Cost and expenses | (2,688) | |||||
Equity in the loss of investees | $ (12) | |||||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
International Theme Parks - Add
International Theme Parks - Additional Information (Details) - 9 months ended Jun. 29, 2019 ¥ in Millions, $ in Millions, $ in Billions | USD ($) | CNY (¥) | HKD ($) |
Noncontrolling Interest | |||
Net Cash Provided by (Used in) Financing Activities | $ 20 | ||
Maximum | |||
Noncontrolling Interest | |||
Variable Spread Above Reference Rate | 1.63% | 1.63% | 1.63% |
Asia International Theme Parks | |||
Noncontrolling Interest | |||
Royalties And Management Fees | $ 131 | ||
International Theme Parks | |||
Noncontrolling Interest | |||
Net Cash Provided by Operating Activities | 656 | ||
Net Cash Used in Investing Activities | $ 635 | ||
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 | $ 145 | ||
Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 |
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 97 | ||
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 | |||
Debt Instrument, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 |
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 269 | $ 2.1 | |
Hong Kong Disneyland Resort | Line of Credit | HIBOR | |||
Noncontrolling Interest | |||
Variable Spread Above Reference Rate | 1.25% | 1.25% | 1.25% |
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 | $ 821 | ||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 1,000 | ¥ 7,200 | |
Shanghai Disney Resort | Loans | Maximum | |||
Noncontrolling Interest | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% |
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 | $ 200 | ¥ 1,400 | |
Shanghai Disney Resort | Outstanding royalties and management fees | |||
Noncontrolling Interest | |||
Variable Interest Entity, Financial or Other Support, Amount | $ 152 | ||
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% |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) - USD ($) $ in Millions | Mar. 20, 2019 | Jan. 01, 2018 | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Jun. 29, 2019 | Sep. 29, 2018 |
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | 24.50% | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 2,200 | ||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 400 | ||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | 2,100 | ||||||
Unrecognized Tax Benefits | $ 2,700 | 2,700 | $ 600 | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 200 | 200 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 100 | $ 100 | |||||
21CF | |||||||
Income Tax [Line Items] | |||||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | $ 1,900 | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 700 | ||||||
Cash and Cash Equivalents | |||||||
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 15.50% | ||||||
Residual Earnings | |||||||
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 8.00% | ||||||
Scenario, Plan | |||||||
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | ||||||
Minimum | Scenario, Plan | |||||||
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 13.00% | ||||||
Maximum | Scenario, Plan | |||||||
Income Tax [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 16.00% | ||||||
Accounting Standards Update 2016-16 | |||||||
Income Tax [Line Items] | |||||||
Adoption of new accounting guidance | $ 100 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (27) | $ 0 | $ (77) | $ 0 |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs | 89 | 87 | 255 | 262 |
Interest costs | 152 | 122 | 441 | 367 |
Expected return on plan assets | (250) | (225) | (729) | (677) |
Amortization of prior-year service costs | 3 | 3 | 10 | 11 |
Recognized net actuarial loss | 65 | 86 | 196 | 261 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (30) | (14) | (82) | (38) |
Net periodic benefit cost | 59 | 73 | 173 | 224 |
Postretirement Medical Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs | 2 | 3 | 6 | 8 |
Interest costs | 17 | 15 | 50 | 45 |
Expected return on plan assets | (14) | (13) | (42) | (39) |
Amortization of prior-year service costs | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 0 | 3 | 0 | 10 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 3 | 5 | 8 | 16 |
Net periodic benefit cost | $ 5 | $ 8 | $ 14 | $ 24 |
Pension and Other Benefit Pro_3
Pension and Other Benefit Programs - Additional Information (Details) - USD ($) $ in Millions | Mar. 20, 2019 | Jun. 29, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 712 | |
21CF | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ 237 | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 824 | |
Defined Benefit Plan, Plan Assets, Business Combination | $ 587 | |
Scenario, Plan | 21CF | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 250 |
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 | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Shares (in millions): | ||||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,802 | 1,491 | 1,607 | 1,502 |
Weighted average dilutive impact of Awards | 12 | 7 | 9 | 8 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,814 | 1,498 | 1,616 | 1,510 |
Awards excluded from diluted earnings per share | 4 | 12 | 10 | 12 |
Equity Dividends Paid (Details)
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | |||
Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Mar. 31, 2018 | |
Dividends, Common Stock [Abstract] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.88 | $ 0.88 | $ 0.84 | $ 0.84 |
Dividends, Common Stock, Cash | $ 1.6 | $ 1.3 | $ 1.2 | $ 1.3 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (4,834) | $ (5,221) | $ (4,849) | $ (5,522) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 51 | 11 | 9 | 63 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 14 | 122 | 94 | 371 |
AOCI reclassifications to retained earnings, before tax | (23) | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (4,769) | (5,088) | (4,769) | (5,088) |
Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (5) | 24 | 24 | 15 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 6 | 1 | 1 | 10 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 |
AOCI reclassifications to retained earnings, before tax | (24) | |||
AOCI before Tax, Attributable to Parent, Ending Balance | 1 | 25 | 1 | 25 |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | 62 | (197) | 177 | (108) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 34 | 296 | (21) | 150 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (55) | 26 | (116) | 83 |
AOCI reclassifications to retained earnings, before tax | 1 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | 41 | 125 | 41 | 125 |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (4,163) | (4,690) | (4,323) | (4,906) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (37) | 0 | (18) | 24 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 69 | 96 | 210 | 288 |
AOCI reclassifications to retained earnings, before tax | 0 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (4,131) | (4,594) | (4,131) | (4,594) |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (728) | (358) | (727) | (523) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 48 | (286) | 47 | (121) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 |
AOCI reclassifications to retained earnings, before tax | 0 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | $ (680) | $ (644) | $ (680) | $ (644) |
Equity Changes in Accumulated_2
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 1,048 | $ 1,876 | $ 1,752 | $ 1,994 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 3 | (20) | 1 | (63) |
Reclassification from AOCI, Current Period, Tax | (3) | (30) | (22) | (105) |
AOCI reclassifications to retained earnings, tax | (683) | |||
AOCI Tax, Attributable to Parent, Ending Balance | 1,048 | 1,826 | 1,048 | 1,826 |
Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | 1 | (10) | (9) | (7) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (3) | 0 | (2) | (3) |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 |
AOCI reclassifications to retained earnings, tax | 9 | |||
AOCI Tax, Attributable to Parent, Ending Balance | (2) | (10) | (2) | (10) |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | (14) | 41 | (32) | 46 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (7) | (56) | 6 | (44) |
Reclassification from AOCI, Current Period, Tax | 13 | (6) | 27 | (23) |
AOCI reclassifications to retained earnings, tax | (9) | |||
AOCI Tax, Attributable to Parent, Ending Balance | (8) | (21) | (8) | (21) |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | 984 | 1,778 | 1,690 | 1,839 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 8 | (2) | 2 | (5) |
Reclassification from AOCI, Current Period, Tax | (16) | (24) | (49) | (82) |
AOCI reclassifications to retained earnings, tax | (667) | |||
AOCI Tax, Attributable to Parent, Ending Balance | 976 | 1,752 | 976 | 1,752 |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | 77 | 67 | 103 | 116 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 5 | 38 | (5) | (11) |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 |
AOCI reclassifications to retained earnings, tax | (16) | |||
AOCI Tax, Attributable to Parent, Ending Balance | $ 82 | $ 105 | $ 82 | $ 105 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | $ (3,786) | $ (3,345) | $ (3,097) | $ (3,528) | |
Unrealized gains (losses) arising during the period | 54 | (9) | 10 | 0 | |
Reclassifications of realized net (gains) losses to net income | 11 | 92 | 72 | 266 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (706) | |||
AOCI, Ending Balance | (3,721) | (3,262) | (3,721) | (3,262) | |
Investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (4) | 14 | 15 | 8 | |
Unrealized gains (losses) arising during the period | 3 | 1 | (1) | 7 | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (15) | |||
AOCI, Ending Balance | (1) | 15 | (1) | 15 | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | 48 | (156) | 145 | (62) | |
Unrealized gains (losses) arising during the period | 27 | 240 | (15) | 106 | |
Reclassifications of realized net (gains) losses to net income | (42) | 20 | 89 | (60) | |
AOCI reclassifications to retained earnings, net of tax | [1] | (8) | |||
AOCI, Ending Balance | 33 | 104 | 33 | 104 | |
Unrecognized Pension and Postretirement Medical Expense | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (3,179) | (2,912) | (2,633) | (3,067) | |
Unrealized gains (losses) arising during the period | (29) | (2) | (16) | 19 | |
Reclassifications of realized net (gains) losses to net income | 53 | 72 | (161) | (206) | |
AOCI reclassifications to retained earnings, net of tax | [1] | (667) | |||
AOCI, Ending Balance | (3,155) | (2,842) | (3,155) | (2,842) | |
Foreign Currency Translation and Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (651) | (291) | (624) | (407) | |
Unrealized gains (losses) arising during the period | 53 | (248) | 42 | (132) | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (16) | |||
AOCI, Ending Balance | $ (598) | $ (539) | $ (598) | $ (539) | |
[1] | At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ( $15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
Details about AOCI Components R
Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Details about AOCI Components Reclassified to Net Income | ||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] |
Interest expense, net | 411 | 143 | 617 | 415 | ||
Income taxes | (395) | (795) | (2,687) | (880) | ||
Net income attributable to The Walt Disney Company (Disney) | 1,760 | 2,916 | 10,000 | 10,276 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Details about AOCI Components Reclassified to Net Income | ||||||
Net income attributable to The Walt Disney Company (Disney) | (11) | (92) | (72) | (266) | ||
Gain/(loss) in net income from Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Details about AOCI Components Reclassified to Net Income | ||||||
Revenues | 55 | (26) | 116 | (83) | ||
Income taxes | (13) | 6 | (27) | 23 | ||
Net income attributable to The Walt Disney Company (Disney) | 42 | (20) | 89 | (60) | ||
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 | 0 | (96) | 0 | (288) | ||
Interest expense, net | (69) | (210) | 0 | |||
Income taxes | 16 | 24 | 49 | 82 | ||
Net income attributable to The Walt Disney Company (Disney) | $ (53) | $ (72) | $ (161) | $ (206) | ||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 20, 2019 | Sep. 30, 2018 | Jun. 29, 2019 | Sep. 29, 2018 | |
Class of Stock [Line Items] | |||||
Treasury stock, shares | 19,000 | 1,400,000 | |||
Common stock, authorized | 4,600,000 | 4,600,000 | |||
Common stock, par value | $ 0.01 | $ 0.01 | |||
AOCI reclassifications to retained earnings, tax | $ (683) | ||||
AOCI reclassifications to retained earnings, before tax | (23) | ||||
AOCI reclassifications to retained earnings, net of tax | [1] | $ (706) | |||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, authorized | 100,000 | ||||
Preferred stock, par value | $ 0.01 | ||||
Retained Earnings | |||||
Class of Stock [Line Items] | |||||
Treasury Stock, Retired, Cost Method, Amount | $ (49,118) | ||||
Accounting Standards Update 2018-02 | |||||
Class of Stock [Line Items] | |||||
AOCI reclassifications to retained earnings, tax | $ 691 | ||||
Accounting Standards Update 2016-01 | |||||
Class of Stock [Line Items] | |||||
AOCI reclassifications to retained earnings, before tax | 24 | ||||
AOCI reclassifications to retained earnings, net of tax | $ 15 | ||||
Legacy Disney | |||||
Class of Stock [Line Items] | |||||
Treasury Stock, Shares, Retired | 1,400,000 | ||||
Legacy Disney | Series B Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, authorized | 40 | ||||
Preferred stock, par value | $ 0.01 | ||||
Legacy Disney | Additional Paid-in Capital | |||||
Class of Stock [Line Items] | |||||
Treasury Stock, Retired, Cost Method, Amount | $ 17,600 | ||||
Legacy Disney | Retained Earnings | |||||
Class of Stock [Line Items] | |||||
Treasury Stock, Retired, Cost Method, Amount | $ 49,100 | ||||
21CF | |||||
Class of Stock [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 307,000 | ||||
[1] | At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ( $15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
Compensation Expense Related to
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options | $ 21 | $ 21 | $ 64 | $ 67 | |
RSUs | [1] | 114 | 92 | 527 | 240 |
Total equity-based compensation expense | [2] | 135 | 113 | 591 | 307 |
Equity-based compensation expense capitalized during the period | $ 22 | $ 17 | $ 60 | $ 54 | |
[1] | Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . | ||||
[2] | Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation Compe
Equity-Based Compensation Compensation Expense Related to Restricted Stock Units of 21CF (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock or Unit Expense | [1] | $ 114 | $ 92 | $ 527 | $ 240 |
21CF | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock or Unit Expense | $ 39 | $ 279 | |||
[1] | Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Mar. 20, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock or Unit Expense | [1] | $ 114 | $ 92 | $ 527 | $ 240 | |
Weighted average grant date fair values of options issued | $ 28.01 | $ 28.74 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | 149 | $ 149 | ||||
Stock compensation granted, number of shares | 4 | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | 716 | $ 716 | ||||
Stock compensation granted, number of shares | 3.4 | |||||
21CF | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 39 | $ 279 | ||||
21CF | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 219 | |||||
[1] | Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jun. 29, 2019USD ($) |
Syndicated programming | |
Commitments and Contingencies Disclosure [Line Items] | |
Long-term receivables, net of allowance for credit losses | $ 1,500 |
Mortgage Receivable | |
Commitments and Contingencies Disclosure [Line Items] | |
Long-term receivables, net of allowance for credit losses | $ 800 |
Allowance for credit losses related to long-term receivables, percentage | 4.00% |
Guarantee Obligations | |
Commitments and Contingencies Disclosure [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 290 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 17 | $ 38 |
Total | 84 | (162) |
Fair value of borrowings | 61,611 | 20,997 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | (52) | |
Derivative Liabilities | (64) | (410) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 502 | 469 |
Derivative Liabilities | (422) | (274) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 2 | 15 |
Derivative Liabilities | (3) | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 17 | 38 |
Total | 17 | 38 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liabilities | 0 | 0 |
Level 1 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 67 | (200) |
Fair value of borrowings | 44,194 | 19,826 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | (52) | |
Derivative Liabilities | (64) | (410) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 502 | 469 |
Derivative Liabilities | (422) | (274) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 2 | 15 |
Derivative Liabilities | (3) | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 17,417 | 1,171 |
Level 3 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liabilities | 0 | 0 |
Level 3 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | $ 0 |
Derivative Liabilities | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | [1] | $ 185 | $ 0 | $ 538 | $ 0 |
Vice Media | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 523 | ||||
[1] | an impairment of an investment in a cable channel at A+E Television Networks |
Gross Fair Value of Derivative
Gross Fair Value of Derivative Positions (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 212 | $ 217 |
Derivative Asset, Counterparty Netting Offset | (150) | (158) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (4) | 0 |
Net derivative positions | 58 | 59 |
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 | 169 | 166 |
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 | 2 | 13 |
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 | 41 | 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 | 344 | 267 |
Derivative Asset, Counterparty Netting Offset | (245) | (227) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 |
Net derivative positions | 99 | 40 |
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 | 181 | 169 |
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 | 52 | 0 |
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 | 0 | 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 | 111 | 96 |
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 | (246) | (504) |
Derivative Liability, Counterparty netting offset | 215 | 254 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 18 | 135 |
Net derivative positions | (13) | (115) |
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 | (74) | (80) |
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 | (43) | (329) |
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 | (2) | 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 | (127) | (95) |
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 | (243) | (180) |
Derivative Liability, Counterparty netting offset | 180 | 131 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 5 |
Net derivative positions | (63) | (44) |
Other Long-Term Liabilities | Derivatives designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (147) | (39) |
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 | (1) | 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 | (74) | (60) |
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 | $ (21) | $ (81) |
Derivative Instruments Carrying
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | $ 7,247 | $ 8,010 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | [1] | 32 | (304) |
Current Portion of Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 1,246 | 1,585 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (3) | (14) | |
Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 6,001 | 6,425 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 35 | $ (290) | |
[1] | Includes $38 million and $41 million of gains on terminated interest rate swaps as of June 29, 2019 and September 29, 2018 , respectively. |
Derivative Instruments Carryi_2
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges - Terminated Interest Rate Swaps (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Interest rate | Derivatives designated as hedges | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 38 | $ 41 |
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 | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on pay-floating swaps | $ 112 | $ (25) | $ 346 | $ (191) |
Gain (loss) on hedged borrowings | (112) | 25 | (346) | 191 |
Derivative, Gain (Loss) on Derivative, Net | $ (15) | $ (9) | $ (47) | $ (2) |
Derivative Instruments Effect o
Derivative Instruments Effect of Foreign Currency Cash Flow Hedges on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 29, 2019 | Jun. 29, 2019 | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 36 | $ (5) | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ 55 | $ 112 |
[1] | Primarily recorded in revenue |
Net Gains or Losses Recognized
Net Gains or Losses Recognized on Economic Exposures Associated With Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Costs and Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | $ 13 | $ (175) | $ (13) | $ (94) |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (25) | 164 | (5) | 73 |
Net gain (loss) | (12) | (11) | (18) | (21) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | (25) | 28 | 3 | 55 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 23 | (34) | (5) | (62) |
Net gain (loss) | (2) | (6) | (2) | (7) |
Income Taxes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | (1) | 35 | 14 | 23 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (6) | (31) | (28) | (15) |
Net gain (loss) | $ (7) | $ 4 | $ (14) | $ 8 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Sep. 29, 2018 | |
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 | $ 104 | |
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | 94 | $ 299 |
Derivatives designated as hedges | Interest rate | Fair Value Hedging | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,500 | 7,600 |
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,500 | 6,200 |
Not Designated as Hedging Instrument | Interest rate | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,000 | |
Not Designated as Hedging Instrument | Foreign exchange | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 3,600 | $ 3,300 |
Restructuring and Impairment _3
Restructuring and Impairment Charges Restructuring Reserves (Details) - 21CF Integration - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 29, 2019 | Jun. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 403 | $ 0 |
Restructuring Charges | 205 | 608 |
Payments for Restructuring | (63) | (63) |
Other Restructuring Costs | 0 | 0 |
Ending Balance | 545 | 545 |
One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 288 | 0 |
Restructuring Charges | 133 | 421 |
Payments for Restructuring | (53) | (53) |
Other Restructuring Costs | 0 | 0 |
Ending Balance | 368 | 368 |
Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 115 | 0 |
Restructuring Charges | 72 | 187 |
Payments for Restructuring | (10) | (10) |
Other Restructuring Costs | 0 | 0 |
Ending Balance | 177 | 177 |
Media Networks | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 16 | 70 |
Media Networks | One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 8 | 41 |
Media Networks | Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 8 | 29 |
Parks, Experiences and Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 1 | 8 |
Parks, Experiences and Products | One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 1 | 5 |
Parks, Experiences and Products | Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0 | 3 |
Studio Entertainment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 56 | 149 |
Studio Entertainment | One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 24 | 94 |
Studio Entertainment | Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 32 | 55 |
Direct-to-Consumer & International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 102 | 228 |
Direct-to-Consumer & International | One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 81 | 174 |
Direct-to-Consumer & International | Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 21 | 54 |
Corporate, Non-Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 30 | 153 |
Corporate, Non-Segment | One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 19 | 107 |
Corporate, Non-Segment | Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 11 | $ 46 |
Restructuring and Impairment _4
Restructuring and Impairment Charges - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 207 | $ 0 | $ 869 | $ 28 | |
Restricted Stock or Unit Expense | [1] | 114 | $ 92 | 527 | $ 240 |
Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 20 | ||||
21CF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restricted Stock or Unit Expense | 39 | 279 | |||
21CF Integration | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 205 | 608 | |||
21CF Integration | 21CF | Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 608 | ||||
21CF Integration | Scenario, Plan | 21CF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,500 | ||||
21CF Integration | Vest Upon Acquisition | 21CF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restricted Stock or Unit Expense | $ 261 | ||||
[1] | Includes 21CF RSUs converted to Company RSUs in connection with the acquisition of 21CF (see Note 4). For the quarter and nine months ended, the Company recognized $39 million and $279 million , respectively, of equity based compensation in connection with the 21CF acquisition . |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | $ 20,245 | $ 15,229 | [1] | $ 50,470 | $ 45,128 | [2] |
Operating expenses | (12,819) | (8,348) | (30,196) | (24,618) | ||
Selling, general, administrative and other | (3,362) | (2,213) | (7,844) | (6,539) | ||
Depreciation and amortization | (1,304) | (744) | (2,864) | (2,217) | ||
Total costs and expenses | (17,485) | (11,305) | (40,904) | (33,374) | ||
Restructuring and impairment charges | (207) | 0 | (869) | (28) | ||
Allocations to non-guarantor subsidiaries | 0 | 0 | 0 | 0 | ||
Other income/(expense), net | (123) | 0 | 4,840 | 94 | ||
Interest expense, net | (411) | (143) | (617) | (415) | ||
Equity in the income / (loss) of investees, net | (1) | 73 | (234) | 122 | ||
Income from continuing operations before income taxes | 2,018 | 3,854 | 12,686 | 11,527 | ||
Income taxes from continuing operations | (395) | (795) | (2,687) | (880) | ||
Earnings from subsidiary entities | 0 | 0 | 0 | 0 | ||
Net Income from Continuing Operations | 1,623 | 3,059 | 9,999 | 10,647 | ||
Income (loss) from discontinued operations | 359 | 0 | 380 | 0 | ||
Net income | 1,982 | 3,059 | 10,379 | 10,647 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 186 | 143 | 343 | 371 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (36) | 0 | (36) | 0 | ||
Net income attributable to The Walt Disney Company (Disney) | 1,760 | 2,916 | 10,000 | 10,276 | ||
Comprehensive income excluding noncontrolling interests | 1,825 | 2,999 | 10,082 | 10,542 | ||
Reclassifications & Eliminations | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 69 | (42) | 150 | (96) | ||
Operating expenses | 0 | 0 | 0 | 0 | ||
Selling, general, administrative and other | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Total costs and expenses | 0 | 0 | 0 | 0 | ||
Restructuring and impairment charges | 0 | 0 | 0 | 0 | ||
Allocations to non-guarantor subsidiaries | 0 | 0 | 0 | 0 | ||
Other income/(expense), net | (69) | 42 | (150) | 96 | ||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Equity in the income / (loss) of investees, net | 0 | 0 | 0 | 0 | ||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | ||
Income taxes from continuing operations | 0 | 0 | 0 | 0 | ||
Earnings from subsidiary entities | (4,159) | (2,980) | (13,308) | (10,766) | ||
Net Income from Continuing Operations | (4,159) | (13,308) | ||||
Income (loss) from discontinued operations | (359) | (380) | ||||
Net income | (4,518) | (2,980) | (13,688) | (10,766) | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||
Net income attributable to The Walt Disney Company (Disney) | (4,518) | (2,980) | (13,688) | (10,766) | ||
Comprehensive income excluding noncontrolling interests | (4,560) | (2,756) | (13,705) | (10,683) | ||
TWDC | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | 0 | ||
Selling, general, administrative and other | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Total costs and expenses | 0 | 0 | 0 | 0 | ||
Restructuring and impairment charges | 0 | 0 | 0 | 0 | ||
Allocations to non-guarantor subsidiaries | 0 | 0 | 0 | 0 | ||
Other income/(expense), net | 43 | 0 | 43 | 0 | ||
Interest expense, net | (172) | 0 | (346) | 0 | ||
Equity in the income / (loss) of investees, net | 0 | 0 | 0 | 0 | ||
Income from continuing operations before income taxes | (129) | 0 | (303) | 0 | ||
Income taxes from continuing operations | 25 | 0 | 63 | 0 | ||
Earnings from subsidiary entities | 1,505 | 0 | 1,821 | 0 | ||
Net Income from Continuing Operations | 1,401 | 1,581 | ||||
Income (loss) from discontinued operations | 359 | 380 | ||||
Net income | 1,760 | 0 | 1,961 | 0 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||
Net income attributable to The Walt Disney Company (Disney) | 1,760 | 0 | 1,961 | 0 | ||
Comprehensive income excluding noncontrolling interests | 1,825 | 0 | 2,026 | 0 | ||
Legacy Disney | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | 0 | ||
Selling, general, administrative and other | (133) | (160) | (492) | (445) | ||
Depreciation and amortization | 0 | (1) | (1) | (1) | ||
Total costs and expenses | (133) | (161) | (493) | (446) | ||
Restructuring and impairment charges | 0 | 0 | 0 | |||
Allocations to non-guarantor subsidiaries | 120 | 150 | 450 | 416 | ||
Other income/(expense), net | 7 | 113 | 102 | (14) | ||
Interest expense, net | (299) | (179) | (535) | (493) | ||
Equity in the income / (loss) of investees, net | 0 | 0 | 0 | 0 | ||
Income from continuing operations before income taxes | (305) | (77) | (476) | (537) | ||
Income taxes from continuing operations | 59 | 13 | 96 | 47 | ||
Earnings from subsidiary entities | 2,654 | 2,980 | 11,487 | 10,766 | ||
Net Income from Continuing Operations | 2,408 | 11,107 | ||||
Income (loss) from discontinued operations | 0 | 0 | ||||
Net income | 2,408 | 2,916 | 11,107 | 10,276 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||
Net income attributable to The Walt Disney Company (Disney) | 2,408 | 2,916 | 11,107 | 10,276 | ||
Comprehensive income excluding noncontrolling interests | 2,422 | 2,999 | 11,138 | 10,542 | ||
Non-Guarantor Subsidiaries | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenues | 20,176 | 15,271 | 50,320 | 45,224 | ||
Operating expenses | (12,819) | (8,348) | (30,196) | (24,618) | ||
Selling, general, administrative and other | (3,229) | (2,053) | (7,352) | (6,094) | ||
Depreciation and amortization | (1,304) | (743) | (2,863) | (2,216) | ||
Total costs and expenses | (17,352) | (11,144) | (40,411) | (32,928) | ||
Restructuring and impairment charges | (207) | 0 | (869) | (28) | ||
Allocations to non-guarantor subsidiaries | (120) | (150) | (450) | (416) | ||
Other income/(expense), net | (104) | (155) | 4,845 | 12 | ||
Interest expense, net | 60 | 36 | 264 | 78 | ||
Equity in the income / (loss) of investees, net | (1) | 73 | (234) | 122 | ||
Income from continuing operations before income taxes | 2,452 | 3,931 | 13,465 | 12,064 | ||
Income taxes from continuing operations | (479) | (808) | (2,846) | (927) | ||
Earnings from subsidiary entities | 0 | 0 | 0 | 0 | ||
Net Income from Continuing Operations | 1,973 | 10,619 | ||||
Income (loss) from discontinued operations | 359 | 380 | ||||
Net income | 2,332 | 3,123 | 10,999 | 11,137 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 186 | 143 | 343 | 371 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (36) | (36) | ||||
Net income attributable to The Walt Disney Company (Disney) | 2,110 | 2,980 | 10,620 | 10,766 | ||
Comprehensive income excluding noncontrolling interests | $ 2,138 | $ 2,756 | $ 10,623 | $ 10,683 | ||
[1] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. | |||||
[2] | Amounts reflect our historical accounting prior to the adoption of the new revenue guidance. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and Cash Equivalents | $ 6,728 | $ 4,150 | |
Receivables, Net | 15,673 | 9,334 | |
Inventories | 1,516 | 1,392 | |
Television costs and advances | 4,526 | 1,314 | |
Other current assets | 1,035 | 635 | |
Assets held for sale | 1,892 | 0 | |
Total current assets | 31,370 | 16,825 | |
Film and television costs | 22,552 | 7,888 | |
Investments in subsidiaries | 0 | 0 | |
Other Investments | 3,872 | 2,899 | |
Parks, resorts and other property | 31,392 | 29,540 | |
Intangible assets, net | 25,114 | 6,812 | |
Goodwill | 77,801 | 31,269 | |
Noncurrent assets held for sale | 12,591 | 0 | |
Intercompany receivables | 0 | 0 | |
Other Noncurrent Assets | 4,783 | 3,365 | |
Total assets | 209,475 | 98,598 | |
Accounts payable and other accrued liabilities | 17,647 | $ 10,518 | 9,479 |
Current portion of borrowings | 21,923 | 3,790 | |
Deferred revenue and other | 4,730 | 4,591 | |
Liabilities held for sale | 293 | 0 | |
Total current liabilities | 44,593 | 17,860 | |
Borrowings | 36,311 | 17,084 | |
Deferred Tax Liabilities, Net, Noncurrent | 10,404 | 3,109 | |
Noncurrent liabilities held for sale | 2,353 | 0 | |
Other long-term liabilities | 10,561 | 6,590 | |
Intercompany Payables | 0 | 0 | |
Liabilities, Noncurrent | 59,629 | 26,783 | |
Redeemable Noncontrolling Interests | 8,897 | 1,123 | |
Noncontrolling interests | 5,884 | 4,059 | |
Stockholders' Equity Attributable to Parent | 90,472 | 48,773 | |
Total equity | 96,356 | $ 52,716 | 52,832 |
Total liabilities and equity | 209,475 | 98,598 | |
Reclassifications & Eliminations | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | |
Receivables, Net | (1) | 0 | |
Inventories | 0 | 0 | |
Television costs and advances | 0 | 0 | |
Other current assets | 0 | 0 | |
Assets held for sale | 0 | ||
Total current assets | (1) | 0 | |
Film and television costs | 0 | 0 | |
Investments in subsidiaries | (407,355) | (149,880) | |
Other Investments | 0 | 0 | |
Parks, resorts and other property | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Noncurrent assets held for sale | 0 | ||
Intercompany receivables | (138,413) | (79,793) | |
Other Noncurrent Assets | (508) | (724) | |
Total assets | (546,277) | (230,397) | |
Accounts payable and other accrued liabilities | (1) | 0 | |
Current portion of borrowings | 0 | 0 | |
Deferred revenue and other | (203) | 0 | |
Liabilities held for sale | 0 | ||
Total current liabilities | (204) | 0 | |
Borrowings | 0 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | (305) | (724) | |
Noncurrent liabilities held for sale | 0 | ||
Other long-term liabilities | 0 | 0 | |
Intercompany Payables | (138,413) | (79,793) | |
Liabilities, Noncurrent | (138,718) | (80,517) | |
Redeemable Noncontrolling Interests | 0 | 0 | |
Noncontrolling interests | 0 | 0 | |
Stockholders' Equity Attributable to Parent | (407,355) | (149,880) | |
Total equity | (407,355) | (149,880) | |
Total liabilities and equity | (546,277) | (230,397) | |
TWDC | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and Cash Equivalents | 752 | 0 | |
Receivables, Net | 434 | 0 | |
Inventories | 0 | 0 | |
Television costs and advances | 0 | 0 | |
Other current assets | 99 | 0 | |
Assets held for sale | 0 | ||
Total current assets | 1,285 | 0 | |
Film and television costs | 0 | 0 | |
Investments in subsidiaries | 127,471 | 0 | |
Other Investments | 0 | 0 | |
Parks, resorts and other property | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Noncurrent assets held for sale | 0 | ||
Intercompany receivables | 4,001 | 0 | |
Other Noncurrent Assets | 311 | 0 | |
Total assets | 133,068 | 0 | |
Accounts payable and other accrued liabilities | 1,905 | 0 | |
Current portion of borrowings | 19,014 | 0 | |
Deferred revenue and other | 16 | 0 | |
Liabilities held for sale | 0 | ||
Total current liabilities | 20,935 | 0 | |
Borrowings | 20,319 | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Noncurrent liabilities held for sale | 0 | ||
Other long-term liabilities | 860 | 0 | |
Intercompany Payables | 482 | 0 | |
Liabilities, Noncurrent | 21,661 | 0 | |
Redeemable Noncontrolling Interests | 0 | 0 | |
Noncontrolling interests | 0 | 0 | |
Stockholders' Equity Attributable to Parent | 90,472 | 0 | |
Total equity | 90,472 | 0 | |
Total liabilities and equity | 133,068 | 0 | |
Legacy Disney | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and Cash Equivalents | 0 | 1,367 | |
Receivables, Net | 0 | 155 | |
Inventories | 4 | 4 | |
Television costs and advances | 0 | 0 | |
Other current assets | 8 | 152 | |
Assets held for sale | 0 | ||
Total current assets | 12 | 1,678 | |
Film and television costs | 0 | 0 | |
Investments in subsidiaries | 279,884 | 149,880 | |
Other Investments | 0 | 0 | |
Parks, resorts and other property | 10 | 12 | |
Intangible assets, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Noncurrent assets held for sale | 0 | ||
Intercompany receivables | 0 | 0 | |
Other Noncurrent Assets | 501 | 911 | |
Total assets | 280,407 | 152,481 | |
Accounts payable and other accrued liabilities | 267 | 688 | |
Current portion of borrowings | 2,757 | 3,751 | |
Deferred revenue and other | 37 | 115 | |
Liabilities held for sale | 0 | ||
Total current liabilities | 3,061 | 4,554 | |
Borrowings | 13,770 | 15,676 | |
Deferred Tax Liabilities, Net, Noncurrent | 0 | 0 | |
Noncurrent liabilities held for sale | 0 | ||
Other long-term liabilities | 2,175 | 3,685 | |
Intercompany Payables | 133,930 | 79,793 | |
Liabilities, Noncurrent | 149,875 | 99,154 | |
Redeemable Noncontrolling Interests | 0 | 0 | |
Noncontrolling interests | 0 | 0 | |
Stockholders' Equity Attributable to Parent | 127,471 | 48,773 | |
Total equity | 127,471 | 48,773 | |
Total liabilities and equity | 280,407 | 152,481 | |
Non-Guarantor Subsidiaries | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and Cash Equivalents | 5,976 | 2,783 | |
Receivables, Net | 15,240 | 9,179 | |
Inventories | 1,512 | 1,388 | |
Television costs and advances | 4,526 | 1,314 | |
Other current assets | 928 | 483 | |
Assets held for sale | 1,892 | ||
Total current assets | 30,074 | 15,147 | |
Film and television costs | 22,552 | 7,888 | |
Investments in subsidiaries | 0 | 0 | |
Other Investments | 3,872 | 2,899 | |
Parks, resorts and other property | 31,382 | 29,528 | |
Intangible assets, net | 25,114 | 6,812 | |
Goodwill | 77,801 | 31,269 | |
Noncurrent assets held for sale | 12,591 | ||
Intercompany receivables | 134,412 | 79,793 | |
Other Noncurrent Assets | 4,479 | 3,178 | |
Total assets | 342,277 | 176,514 | |
Accounts payable and other accrued liabilities | 15,476 | 8,791 | |
Current portion of borrowings | 152 | 39 | |
Deferred revenue and other | 4,880 | 4,476 | |
Liabilities held for sale | 293 | ||
Total current liabilities | 20,801 | 13,306 | |
Borrowings | 2,222 | 1,408 | |
Deferred Tax Liabilities, Net, Noncurrent | 10,709 | 3,833 | |
Noncurrent liabilities held for sale | 2,353 | ||
Other long-term liabilities | 7,526 | 2,905 | |
Intercompany Payables | 4,001 | 0 | |
Liabilities, Noncurrent | 26,811 | 8,146 | |
Redeemable Noncontrolling Interests | 8,897 | 1,123 | |
Noncontrolling interests | 5,884 | 4,059 | |
Stockholders' Equity Attributable to Parent | 279,884 | 149,880 | |
Total equity | 285,768 | 153,939 | |
Total liabilities and equity | $ 342,277 | $ 176,514 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash provided by operations - continuing operations | $ 4,266 | $ 10,442 |
Investments in parks, resorts and other property | (3,567) | (3,264) |
Acquisitions | (9,901) | (1,581) |
Intercompany investing activities, net | 0 | 0 |
Other | (317) | (298) |
Cash used in investing activities - continuing operations | (13,785) | (5,143) |
Commercial paper borrowings, net | 2,973 | 453 |
Borrowings | 31,348 | 1,056 |
Reduction of borrowings | (19,039) | (1,356) |
Dividends | (1,310) | (1,266) |
Repurchases of common stock | 0 | (3,577) |
Intercompany financing, net | 0 | 0 |
Contributions from / sales of noncontrolling interests | 544 | 363 |
Acquisition of noncontrolling and redeemable noncontrolling interests | (1,430) | 0 |
Proceeds from exercise of stock options | 278 | 129 |
Other | (831) | (783) |
Cash used in financing activities - continuing operations | 12,533 | (4,981) |
Cash provided by (used in) discontinued operations | 141 | 0 |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 47 | (51) |
Change in Cash, Cash Equivalents and Restricted Cash | 3,202 | 267 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 4,155 | 4,064 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 7,357 | 4,331 |
Reclassifications & Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash provided by operations - continuing operations | (160) | (106) |
Investments in parks, resorts and other property | 0 | 0 |
Acquisitions | 0 | 0 |
Intercompany investing activities, net | (15,375) | 1,601 |
Other | 0 | 0 |
Cash used in investing activities - continuing operations | (15,375) | 1,601 |
Commercial paper borrowings, net | 0 | 0 |
Borrowings | 0 | 0 |
Reduction of borrowings | 0 | 0 |
Dividends | 0 | 106 |
Repurchases of common stock | 0 | 0 |
Intercompany financing, net | 15,535 | (1,601) |
Contributions from / sales of noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling and redeemable noncontrolling interests | 0 | |
Proceeds from exercise of stock options | 0 | 0 |
Other | 0 | 0 |
Cash used in financing activities - continuing operations | 15,535 | (1,495) |
Cash provided by (used in) discontinued operations | 0 | |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 0 | 0 |
TWDC | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash provided by operations - continuing operations | 133 | 0 |
Investments in parks, resorts and other property | 0 | 0 |
Acquisitions | (35,702) | 0 |
Intercompany investing activities, net | 16,400 | 0 |
Other | 0 | 0 |
Cash used in investing activities - continuing operations | (19,302) | 0 |
Commercial paper borrowings, net | 3,983 | 0 |
Borrowings | 31,100 | 0 |
Reduction of borrowings | (16,100) | 0 |
Dividends | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany financing, net | 805 | 0 |
Contributions from / sales of noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling and redeemable noncontrolling interests | 0 | |
Proceeds from exercise of stock options | 194 | 0 |
Other | (61) | 0 |
Cash used in financing activities - continuing operations | 19,921 | 0 |
Cash provided by (used in) discontinued operations | 0 | |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Change in Cash, Cash Equivalents and Restricted Cash | 752 | 0 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 752 | 0 |
Legacy Disney | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash provided by operations - continuing operations | (1,170) | 250 |
Investments in parks, resorts and other property | 0 | (2) |
Acquisitions | 0 | 0 |
Intercompany investing activities, net | (11) | (1,601) |
Other | 0 | 0 |
Cash used in investing activities - continuing operations | (11) | (1,603) |
Commercial paper borrowings, net | (1,010) | 453 |
Borrowings | 0 | 997 |
Reduction of borrowings | (2,250) | (1,300) |
Dividends | (1,310) | (1,266) |
Repurchases of common stock | 0 | (3,577) |
Intercompany financing, net | 4,552 | 6,116 |
Contributions from / sales of noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling and redeemable noncontrolling interests | 0 | |
Proceeds from exercise of stock options | 84 | 129 |
Other | (252) | (221) |
Cash used in financing activities - continuing operations | (186) | 1,331 |
Cash provided by (used in) discontinued operations | 0 | |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Change in Cash, Cash Equivalents and Restricted Cash | (1,367) | (22) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,367 | 693 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 0 | 671 |
Non-Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash provided by operations - continuing operations | 5,463 | 10,298 |
Investments in parks, resorts and other property | (3,567) | (3,262) |
Acquisitions | 25,801 | (1,581) |
Intercompany investing activities, net | (1,014) | 0 |
Other | (317) | (298) |
Cash used in investing activities - continuing operations | 20,903 | (5,141) |
Commercial paper borrowings, net | 0 | 0 |
Borrowings | 248 | 59 |
Reduction of borrowings | (689) | (56) |
Dividends | 0 | (106) |
Repurchases of common stock | 0 | 0 |
Intercompany financing, net | (20,892) | (4,515) |
Contributions from / sales of noncontrolling interests | 544 | 363 |
Acquisition of noncontrolling and redeemable noncontrolling interests | (1,430) | |
Proceeds from exercise of stock options | 0 | 0 |
Other | (518) | (562) |
Cash used in financing activities - continuing operations | (22,737) | (4,817) |
Cash provided by (used in) discontinued operations | 141 | |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | 47 | (51) |
Change in Cash, Cash Equivalents and Restricted Cash | 3,817 | 289 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 2,788 | 3,371 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 6,605 | $ 3,660 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information Condensed Consolidating Financial Information - Additional Details (Details) - Legacy Disney - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2019 | Sep. 29, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | |
Offsetting Understatements of Investments in Subsidiaries and Intercompany Payables | $ 294 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements - Additional Details (Details) - Accounting Standards Update 2016-02 - USD ($) $ in Millions | Jun. 29, 2019 | Mar. 20, 2019 | Sep. 29, 2018 |
New Accounting Pronouncements or Change in Accounting Principle | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 350 | ||
Operating Leases, Future Minimum Payments Due | $ 3,600 | ||
21CF | |||
New Accounting Pronouncements or Change in Accounting Principle | |||
Operating Leases, Future Minimum Payments Due | $ 1,000 |