Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 28, 2020 | Apr. 29, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2020 | |
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, $0.01 par value | |
Trading Symbol | DIS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,806,266,743 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001744489 | |
Current Fiscal Year End Date | --10-03 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | |
Selling, general, administrative and other | (3,388) | (2,330) | (7,091) | (4,482) | |
Depreciation and amortization | (1,333) | (828) | (2,631) | (1,560) | |
Total costs and expenses | 16,639 | 11,534 | 34,656 | 23,419 | |
Restructuring and impairment charges | (145) | (662) | (295) | (662) | |
Other income | 0 | 4,963 | 0 | 4,963 | |
Interest expense, net | (300) | (143) | (583) | (206) | |
Equity in the income / (loss) of investees | 135 | (309) | 359 | (233) | |
Income from continuing operations before income taxes | 1,060 | 7,237 | 3,692 | 10,668 | |
Income taxes on continuing operations | (525) | (1,647) | (984) | (2,292) | |
Net Income from Continuing Operations | 535 | 5,590 | 2,708 | 8,376 | |
Income (loss) from discontinued operations, net of income tax benefit/(expense) of $5, ($5), $13 and ($5), respectively | (15) | 21 | (41) | 21 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 520 | 5,611 | 2,667 | 8,397 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | (60) | (159) | (100) | (157) | |
Net income attributable to The Walt Disney Company (Disney) | $ 460 | $ 5,452 | $ 2,567 | $ 8,240 | |
Earnings per share attributable to Disney: | |||||
Continuing Operations, Per Diluted Share | $ 0.26 | $ 3.53 | $ 1.44 | $ 5.42 | |
Discontinued Operations, Per Diluted Share | (0.01) | 0.01 | (0.02) | 0.01 | |
Diluted | [1] | 0.25 | 3.55 | 1.41 | 5.43 |
Continuing Operations, Per Basic Share | 0.26 | 3.55 | 1.44 | 5.44 | |
Discontinued Operation, Per Basic Share | (0.01) | 0.01 | (0.02) | 0.01 | |
Basic | [1] | $ 0.25 | $ 3.56 | $ 1.42 | $ 5.46 |
Weighted average number of common and common equivalent shares outstanding: | |||||
Diluted (shares) | 1,816 | 1,537 | 1,816 | 1,517 | |
Basic (shares) | 1,808 | 1,530 | 1,806 | 1,510 | |
Service | |||||
Revenues | $ 16,174 | $ 13,011 | $ 34,249 | $ 25,877 | |
Cost of Goods and Services Sold | 10,664 | 7,167 | 22,041 | 14,731 | |
Product | |||||
Revenues | 1,835 | 1,911 | 4,618 | 4,348 | |
Cost of Goods and Services Sold | $ 1,254 | $ 1,209 | $ 2,893 | $ 2,646 | |
[1] | Total may not equal the sum of the column due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 5 | $ (5) | $ 13 | $ (5) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Net income | $ 520 | $ 5,611 | $ 2,667 | $ 8,397 |
Other Comprehensive Income/(Loss), Net of Tax: | ||||
Market value adjustments for investments | 0 | (4) | 0 | (4) |
Market value adjustments for hedges | 129 | (80) | 22 | (89) |
Pension and postretirement medical plan adjustments | 73 | 68 | 180 | 121 |
Foreign currency translation and other | (323) | 46 | (196) | 25 |
Other comprehensive income | (121) | 30 | 6 | 53 |
Comprehensive income | 399 | 5,641 | 2,673 | 8,450 |
Net income from continuing operations attributable to noncontrolling interests | (60) | (159) | (100) | (157) |
Other comprehensive income (loss) attributable to noncontrolling interests | 17 | (34) | (26) | (36) |
Comprehensive income attributable to Disney | $ 356 | $ 5,448 | $ 2,547 | $ 8,257 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Current assets | ||
Cash and Cash Equivalents | $ 14,339 | $ 5,418 |
Receivables | 14,532 | 15,481 |
Inventories | 1,531 | 1,649 |
Licensed content costs and advances | 1,869 | 4,597 |
Other current assets | 1,003 | 979 |
Total current assets | 33,274 | 28,124 |
Produced and licensed content costs | 26,757 | 22,810 |
Investments | 3,180 | 3,224 |
Attractions, buildings and equipment | 60,929 | 58,589 |
Accumulated depreciation | (33,713) | (32,415) |
Parks, resorts and other property before projects in progress and land, Total | 27,216 | 26,174 |
Projects in progress | 3,916 | 4,264 |
Land | 1,019 | 1,165 |
Parks, resorts and other property | 32,151 | 31,603 |
Intangible assets, net | 22,037 | 23,215 |
Goodwill | 80,320 | 80,293 |
Other assets | 8,575 | 4,715 |
Total assets | 206,294 | 193,984 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 17,906 | 17,762 |
Current portion of borrowings | 12,676 | 8,857 |
Deferred revenue and other | 4,891 | 4,722 |
Total current liabilities | 35,473 | 31,341 |
Borrowings | 42,770 | 38,129 |
Deferred income taxes | 7,965 | 7,902 |
Other long-term liabilities | 16,113 | 13,760 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests | 9,096 | 8,963 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares | 54,230 | 53,907 |
Retained earnings | 43,721 | 42,494 |
Accumulated other comprehensive loss | (6,637) | (6,617) |
Treasury stock, at cost, 19 million shares | (907) | (907) |
Total Disney Shareholders' equity | 90,407 | 88,877 |
Noncontrolling interests | 4,470 | 5,012 |
Total equity | 94,877 | 93,889 |
Total liabilities and equity | $ 206,294 | $ 193,984 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 1,800 | 1,800 |
Treasury stock, shares | 19 | 19 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Net Income from Continuing Operations | $ 2,708 | $ 8,376 |
OPERATING ACTIVITIES | ||
Depreciation and amortization | 2,631 | 1,560 |
Gain on acquisition | 0 | 4,917 |
Deferred income taxes | 297 | 1,190 |
Equity in the income of investees | (359) | 233 |
Cash distributions received from equity investees | 405 | 370 |
Net change in produced and licensed content costs and advances | (925) | (281) |
Net change in operating lease right of use assets / liabilities | (96) | 0 |
Equity-based compensation | 246 | 456 |
Other | 156 | 143 |
Changes in operating assets and liabilities: | ||
Receivables | 828 | (386) |
Inventories | 70 | (19) |
Other assets | (174) | 46 |
Accounts payable and other liabilities | (888) | (283) |
Income taxes | (112) | (474) |
Cash provided by operations - continuing operations | 4,787 | 6,014 |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (2,585) | (2,390) |
Acquisitions | 0 | 9,901 |
Other | (21) | (392) |
Cash used in investing activities - continuing operations | (2,606) | (12,683) |
FINANCING ACTIVITIES | ||
Commercial paper borrowings, net | 3,138 | 376 |
Borrowings | 6,071 | 31,145 |
Reduction of borrowings | (1,048) | (17,398) |
Dividends | 1,587 | 1,310 |
Proceeds from exercise of stock options | 207 | 83 |
Other | (165) | (200) |
Cash provided by financing activities - continuing operations | 6,616 | 12,696 |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ||
Cash provided by (used in) operations - discontinued operations | 4 | (35) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 198 | 0 |
Cash provided by (used in) discontinued operations | 202 | (35) |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | (76) | 75 |
Change in Cash, Cash Equivalents and Restricted Cash | 8,923 | 6,067 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 5,455 | 4,155 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 14,378 | $ 10,222 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ 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. 29, 2018 | 1,488,000 | ||||||||
Beginning Balance at Sep. 29, 2018 | $ 36,779 | $ 82,679 | $ (3,097) | $ (67,588) | $ 48,773 | $ 4,059 | [1] | $ 52,832 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adoption of new accounting guidance | Accounting Standards Update 2016-16 | $ 100 | ||||||||
ENDING BALANCE (in shares) at Dec. 29, 2018 | 1,490,000 | ||||||||
Ending Balance at Dec. 29, 2018 | $ 36,799 | 84,887 | (3,782) | (67,588) | 50,316 | 4,077 | [2] | 54,393 | |
BEGINNING BALANCE (in shares) at Sep. 29, 2018 | 1,488,000 | ||||||||
Beginning Balance at Sep. 29, 2018 | $ 36,779 | 82,679 | (3,097) | (67,588) | 48,773 | 4,059 | [1] | 52,832 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 8,450 | 8,240 | 17 | 8,257 | 190 | [1] | 8,447 | ||
Equity compensation activity (in shares) | 3,000 | ||||||||
Equity compensation activity | $ 415 | 415 | 415 | ||||||
Dividends | $ 8 | (1,318) | (1,310) | (1,310) | |||||
Contributions | 47 | [1] | 47 | ||||||
Acquisition of 21CF (in shares) | 307,000 | ||||||||
Acquisition of 21CF | $ 33,804 | 33,804 | 10,638 | [1] | 44,442 | ||||
Treasury Stock, Retired, Cost Method, Amount | (17,563) | (49,118) | 66,681 | ||||||
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 | |||||
Distributions and other | $ (24) | 3 | (21) | (533) | [1] | (554) | |||
ENDING BALANCE (in shares) at Mar. 30, 2019 | 1,798,000 | ||||||||
Ending Balance at Mar. 30, 2019 | $ 53,419 | 41,212 | (3,786) | (907) | 89,938 | 14,401 | [2] | 104,339 | |
BEGINNING BALANCE (in shares) at Dec. 29, 2018 | 1,490,000 | ||||||||
Beginning Balance at Dec. 29, 2018 | $ 36,799 | 84,887 | (3,782) | (67,588) | 50,316 | 4,077 | [2] | 54,393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 5,641 | 5,452 | (4) | 5,448 | 191 | [2] | 5,639 | ||
Equity compensation activity (in shares) | 1,000 | ||||||||
Equity compensation activity | $ 395 | 395 | 395 | ||||||
Dividends | $ 8 | (8) | |||||||
Contributions | 27 | [2] | 27 | ||||||
Acquisition of 21CF (in shares) | 307,000 | ||||||||
Acquisition of 21CF | $ 33,804 | 33,804 | 10,638 | 44,442 | |||||
Treasury Stock, Retired, Cost Method, Amount | (17,563) | (49,118) | 66,681 | ||||||
Distributions and other | $ (24) | (1) | (25) | (532) | [2] | (557) | |||
ENDING BALANCE (in shares) at Mar. 30, 2019 | 1,798,000 | ||||||||
Ending Balance at Mar. 30, 2019 | $ 53,419 | 41,212 | (3,786) | (907) | 89,938 | 14,401 | [2] | 104,339 | |
BEGINNING BALANCE (in shares) at Sep. 28, 2019 | 1,802,000 | ||||||||
Beginning Balance at Sep. 28, 2019 | 93,889 | $ 53,907 | 42,494 | (6,617) | (907) | 88,877 | 5,012 | [1] | 93,889 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 2,673 | 2,567 | (20) | 2,547 | (6) | [1] | 2,541 | ||
Equity compensation activity (in shares) | 4,000 | ||||||||
Equity compensation activity | $ 314 | 314 | 314 | ||||||
Dividends | (1,596) | (1,587) | (1,587) | ||||||
Contributions | 53 | [1] | 53 | ||||||
Adoption of new accounting guidance | Accounting Standards Update 2016-02 | 197 | 197 | 197 | ||||||
Distributions and other | 59 | 59 | (589) | [1] | (530) | ||||
ENDING BALANCE (in shares) at Mar. 28, 2020 | 1,806,000 | ||||||||
Ending Balance at Mar. 28, 2020 | 94,877 | $ 54,230 | 43,721 | (6,637) | (907) | 90,407 | 4,470 | [2] | 94,877 |
BEGINNING BALANCE (in shares) at Dec. 28, 2019 | 1,805,000 | ||||||||
Beginning Balance at Dec. 28, 2019 | $ 53,995 | 43,202 | (6,533) | (907) | 89,757 | 5,016 | [2] | 94,773 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 399 | 460 | (104) | 356 | (23) | [2] | 333 | ||
Equity compensation activity (in shares) | 1,000 | ||||||||
Equity compensation activity | $ 226 | 226 | 226 | ||||||
Dividends | $ 9 | (9) | |||||||
Contributions | 33 | [2] | 33 | ||||||
Distributions and other | 68 | 68 | (556) | [2] | (488) | ||||
ENDING BALANCE (in shares) at Mar. 28, 2020 | 1,806,000 | ||||||||
Ending Balance at Mar. 28, 2020 | $ 94,877 | $ 54,230 | $ 43,721 | $ (6,637) | $ (907) | $ 90,407 | $ 4,470 | [2] | $ 94,877 |
[1] | Excludes redeemable noncontrolling interests. | ||||||||
[2] | Excludes redeemable noncontrolling interests. |
Principles of Consolidation
Principles of Consolidation | 6 Months Ended |
Mar. 28, 2020 | |
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 six months ended March 28, 2020 are not necessarily indicative of the results that may be expected for the year ending October 3, 2020. 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 2019 Annual Report on Form 10-K. On March 20, 2019, the Company acquired Twenty-First Century Fox, Inc., which was subsequently renamed TFCF Corporation (TFCF). As a result of the acquisition, the Company’s ownership in Hulu LLC (Hulu) increased to 60% (67% as of March 28, 2020 and September 28, 2019). The acquired TFCF operations and Hulu have been consolidated since the acquisition. In order to obtain regulatory approval for the acquisition, the Company agreed to sell TFCF’s domestic regional sports networks (sold in August 2019) and sports media operations in Brazil and Mexico, which along with certain other businesses to be divested, are presented as discontinued operations in the Condensed Consolidated Statement of Income. At March 28, 2020 and September 28, 2019, the assets and liabilities of the businesses held for sale are not material and are included in other assets and other liabilities in the Condensed Consolidated Balance Sheet. Variable Interest Entities The Company enters into relationships with or makes investments in other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. Redeemable Noncontrolling Interests On May 13, 2019, the Company entered into a put/call agreement with NBC Universal (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 approximately 33% 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. NBCU’s interest will generally not be allocated its portion of Hulu’s losses as the redeemable noncontrolling interest is required to be carried at a minimum value. The minimum value is equal to the fair value as of the May 13, 2019 agreement date accreted to the January 2024 redemption value. At March 28, 2020, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $8.0 billion. BAMTech LLC (BAMTech) provides streaming technology services to third parties and is owned 75% by the Company, 15% by Major League Baseball (MLB) and 10% by the National Hockey League (NHL), both of which have the right to sell their interests to the Company in the future. MLB can generally sell its interest to the Company starting five years from and ending ten years after the Company’s September 25, 2017 acquisition date of BAMTech at the greater of fair value or a guaranteed floor value ($563 million accreting at 8% annually for eight years from the date of acquisition). The NHL can sell its interest to the Company in fiscal 2020 for $300 million or in fiscal 2021 for $350 million. The Company has the right to purchase MLB’s interest in BAMTech starting five years from and ending ten years after the September 25, 2017 acquisition date at the greater of fair value or the guaranteed floor value. The Company has the right to acquire the NHL interest in fiscal 2020 or 2021 for $500 million. The MLB and NHL interests will generally not be allocated their portion of BAMTech losses as these interests are required to be recorded at the greater of (i) their acquisition date fair value adjusted for their share (if any) of earnings, losses, or dividends or (ii) an accreted value from the date of the acquisition to the applicable redemption date. The accretion of the MLB interest to the earliest redemption value (i.e. in five years after the acquisition date) will be recorded using an interest method. The redeemable noncontrolling interest subject to accretion would have had a redemption amount of $683 million as of March 28, 2020. Adjustments to the carrying amount of redeemable noncontrolling interests increase or decrease income available to Company shareholders and are recorded in “Net income from continuing operations attributable to noncontrolling interests” on the Condensed Consolidated Statement of Income. 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 the fiscal 2019 financial statements and notes to conform to the fiscal 2020 presentation. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 28, 2020 | |
Segment Information | 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. The following are the Company’s operating segments: • Media Networks; • Parks, Experiences and Products; • Studio Entertainment; and • Direct-to-Consumer & International Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and purchase accounting amortization of TFCF and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption. Intersegment content transactions are presented “gross” (i.e. the segment producing the content reports revenue and profit from intersegment transactions, and the required eliminations are reported on a separate “Eliminations” line when presenting a summary of our segment results). Other intersegment transactions are reported “Net” (i.e. revenue from another segment is recorded as a reduction of costs). Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products revenues, which is meant to reflect royalties on revenue generated by Parks, Experiences and Products on merchandise based on intellectual property from Studio Entertainment films. As it relates to film and television content that is produced by our Media Networks and Studio Entertainment segments that will be used on our direct-to-consumer (DTC) services, there are four broad categories of content: • Content produced for exclusive DTC use, “Originals”; • New Studio Entertainment theatrical releases following the theatrical and home entertainment windows, “Studio Pay 1”; • New Media Networks episodic television series following their initial airing on our linear networks, “Media Pay 1”; and • Content in all other windows, “Library”. The intersegment transfer price, for purposes of segment financial reporting pursuant to ASC 280 Segment Reporting, is generally cost plus a margin for Originals and Media Pay 1 content and generally based on comparable transactions for Studio Pay 1 and Library content. Imputed title by title intersegment license fees that may be necessary for other purposes are established as required by those purposes. Intersegment revenue is recognized upon availability of the content to the DTC service except with respect to Library content for which revenue is recognized ratably over the license period. Our DTC services generally amortize intersegment content costs for Originals and Studio Pay 1 content on an accelerated basis and for Media Pay 1 and Library content on a straight line basis. When the DTC amortization timing is different than the timing of revenue recognition at Studio Entertainment or Media Networks, the difference results in an operating income impact in the elimination segment, which nets to zero over the DTC amortization period. Impact of COVID-19 The impact of the novel coronavirus pandemic (“COVID-19”) and measures to prevent its spread are affecting our segments in a number of ways, most significantly at Parks, Experiences and Products where we have closed our theme parks and retail stores and suspended cruise ship sailings and guided tours and experienced supply chain disruptions. In addition, we have delayed, or in some cases, shortened or canceled theatrical releases and suspended stage play performances at Studio Entertainment and have seen advertising sales impacts at Media Networks and Direct-to-Consumer & International. We have experienced disruptions in the production and availability of content, including the cancellation or deferral of certain sports events and suspension of most film and television production. Many of our businesses have been closed or suspended consistent with government mandates or guidance. The impact of these disruptions and the extent of their adverse impact on our financial and operational results will be dictated by the length of time that such disruptions continue, which will, in turn, depend on the currently unknowable duration of COVID-19 and among other things, the impact of governmental actions imposed in response to the pandemic and individuals’ and companies’ risk tolerance regarding health matters going forward. Segment revenues and segment operating income are as follows: Quarter Ended Six Months Ended March 28, March 30, 2019 March 28, March 30, Revenues : Media Networks $ 7,257 $ 5,683 $ 14,618 $ 11,604 Parks, Experiences and Products (1) 5,543 6,171 12,939 12,995 Studio Entertainment (1) 2,539 2,157 6,303 3,981 Direct-to-Consumer & International 4,123 1,145 8,110 2,063 Eliminations (2) (1,453) (234) (3,103) (418) $ 18,009 $ 14,922 $ 38,867 $ 30,225 Segment operating income (loss) : Media Networks $ 2,375 $ 2,230 $ 4,005 $ 3,560 Parks, Experiences and Products (1) 639 1,506 2,977 3,658 Studio Entertainment (1) 466 506 1,414 815 Direct-to-Consumer & International (812) (385) (1,505) (521) Eliminations (2) (252) (41) (473) (41) $ 2,416 $ 3,816 $ 6,418 $ 7,471 (1) The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. (2) Intersegment eliminations are as follows: Quarter Ended Six Months Ended (in millions) March 28, March 30, March 28, March 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (58) $ (13) $ (111) $ (34) Content transactions with Direct-to-Consumer & International (461) (82) (1,146) (100) Media Networks: Content transactions with Direct-to-Consumer & International (934) (139) (1,846) (284) $ (1,453) $ (234) $ (3,103) $ (418) Operating income: Studio Entertainment: Content transactions with Media Networks $ (10) $ 5 $ (10) $ 5 Content transactions with Direct-to-Consumer & International (157) (46) (273) (44) Media Networks: Content transactions with Direct-to-Consumer & International (85) — (190) (2) $ (252) $ (41) $ (473) $ (41) Equity in the income / (loss) of investees is included in segment operating income as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Media Networks $ 179 $ 182 $ 372 $ 361 Parks, Experiences and Products (6) — (9) (12) Direct-to-Consumer & International (30) (138) 12 (229) Equity in the income of investees included in segment operating income 143 44 375 120 Vice impairment (1) — (353) — (353) Amortization of TFCF intangible assets related to equity investees (8) — (16) — Equity in the income / (loss) of investees, net $ 135 $ (309) $ 359 $ (233) (1) Reflects the impairment of Vice Group Holdings, Inc. A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Segment operating income $ 2,416 $ 3,816 $ 6,418 $ 7,471 Corporate and unallocated shared expenses (188) (279) (425) (440) Restructuring and impairment charges (145) (662) (295) (662) Other income — 4,963 — 4,963 Interest expense, net (300) (143) (583) (206) Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (1) (723) (105) (1,423) (105) Vice impairment — (353) — (353) Income from continuing operations before income taxes $ 1,060 $ 7,237 $ 3,692 $ 10,668 (1) For the quarter ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $498 million, $217 million and $8 million, respectively. For the six months ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $984 million, $423 million and $16 million, respectively. For the quarter and six months ended March 30, 2019 amortization of intangible assets and step-up of film and television costs were $73 million and $32 million, respectively. |
Revenues
Revenues | 6 Months Ended |
Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues The Company has revenue recognition policies for its various operating segments that are appropriate to the circumstances of each business. The following table presents our revenues by segment and major source: Quarter Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,746 $ — $ — $ 957 $ (186) $ 4,517 Advertising 1,703 1 — 1,081 — 2,785 Theme park admissions — 1,554 — — — 1,554 Resort and vacations — 1,377 — — — 1,377 Retail and wholesale sales of merchandise, food and beverage — 1,584 — — — 1,584 TV/SVOD distribution licensing 1,700 — 1,112 163 (1,267) 1,708 Theatrical distribution licensing — — 603 — — 603 Merchandise licensing — 591 117 8 — 716 Subscription fees — — — 1,796 — 1,796 Home entertainment — — 427 19 — 446 Other 108 436 280 99 — 923 Total revenues $ 7,257 $ 5,543 $ 2,539 $ 4,123 $ (1,453) $ 18,009 Quarter Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,234 $ — $ — $ 412 $ (12) $ 3,634 Advertising 1,624 1 — 454 — 2,079 Theme park admissions — 1,768 — — — 1,768 Resort and vacations — 1,503 — — — 1,503 Retail and wholesale sales of merchandise, food and beverage — 1,768 — — — 1,768 TV/SVOD distribution licensing 745 — 718 23 (222) 1,264 Theatrical distribution licensing — — 752 — — 752 Merchandise licensing — 637 126 13 — 776 Subscription fees — — — 153 — 153 Home entertainment — — 270 21 — 291 Other 80 494 291 69 — 934 Total revenues $ 5,683 $ 6,171 $ 2,157 $ 1,145 $ (234) $ 14,922 Six Months Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 7,394 $ — $ — $ 1,910 $ (360) $ 8,944 Advertising 3,726 3 — 2,448 — 6,177 Theme park admissions — 3,621 — — — 3,621 Resort and vacations — 3,008 — — — 3,008 Retail and wholesale sales of merchandise, food and beverage — 3,897 — — — 3,897 TV/SVOD distribution licensing 3,238 — 2,474 366 (2,743) 3,335 Theatrical distribution licensing — — 2,011 — — 2,011 Merchandise licensing — 1,455 301 16 — 1,772 Subscription fees — — — 3,122 — 3,122 Home entertainment — — 938 46 — 984 Other 260 955 579 202 — 1,996 Total revenues $ 14,618 $ 12,939 $ 6,303 $ 8,110 $ (3,103) $ 38,867 Six Months Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 6,309 $ — $ — $ 735 $ (12) $ 7,032 Advertising 3,647 3 — 871 — 4,521 Theme park admissions — 3,701 — — — 3,701 Resort and vacations — 3,034 — — — 3,034 Retail and wholesale sales of merchandise, food and beverage — 3,890 — — — 3,890 TV/SVOD distribution licensing 1,467 — 1,323 57 (406) 2,441 Theatrical distribution licensing — — 1,125 — — 1,125 Merchandise licensing — 1,378 280 28 — 1,686 Subscription fees — — — 186 — 186 Home entertainment — — 695 49 — 744 Other 181 989 558 137 — 1,865 Total revenues $ 11,604 $ 12,995 $ 3,981 $ 2,063 $ (418) $ 30,225 The following table presents our revenues by segment and primary geographical markets: Quarter Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 6,805 $ 4,567 $ 1,264 $ 2,408 $ (1,207) $ 13,837 Europe 383 523 714 436 (172) 1,884 Asia Pacific 49 405 399 657 (12) 1,498 Latin America 20 48 162 622 (62) 790 Total revenues $ 7,257 $ 5,543 $ 2,539 $ 4,123 $ (1,453) $ 18,009 Quarter Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 5,438 $ 4,689 $ 1,074 $ 320 $ (205) $ 11,316 Europe 148 631 576 184 (23) 1,516 Asia Pacific 69 800 388 245 (6) 1,496 Latin America 28 51 119 396 — 594 Total revenues $ 5,683 $ 6,171 $ 2,157 $ 1,145 $ (234) $ 14,922 Six Months Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 13,746 $ 10,275 $ 3,245 $ 4,568 $ (2,671) $ 29,163 Europe 590 1,415 1,687 922 (234) 4,380 Asia Pacific 195 1,137 1,024 1,364 (136) 3,584 Latin America 87 112 347 1,256 (62) 1,740 Total revenues $ 14,618 $ 12,939 $ 6,303 $ 8,110 $ (3,103) $ 38,867 Six Months Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 11,126 $ 9,831 $ 2,112 $ 545 $ (369) $ 23,245 Europe 290 1,485 989 373 (38) 3,099 Asia Pacific 132 1,562 674 379 (11) 2,736 Latin America 56 117 206 766 — 1,145 Total revenues $ 11,604 $ 12,995 $ 3,981 $ 2,063 $ (418) $ 30,225 Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on TV/SVOD and theatrical distribution licensee sales on titles made available to the licensee in previous reporting periods. For the quarter ended March 28, 2020, $733 million was recognized related to performance obligations satisfied as of December 28, 2019. For the six months ended March 28, 2020, $771 million was recognized related to performance obligations satisfied as of September 28, 2019. For the quarter ended March 30, 2019, $363 million was recognized related to performance obligations satisfied as of December 29, 2018. For the six months ended March 30, 2019, $408 million was recognized related to performance obligations satisfied as of September 29, 2018. As of March 28, 2020, revenue for unsatisfied performance obligations expected to be recognized in the future is $17 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 $4 billion in the remainder of fiscal 2020, $5 billion in fiscal 2021, $4 billion in fiscal 2022 and $4 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee. When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears is recognized as accounts receivable. Deferred revenues are recognized as (or when) the Company performs under the contract. Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: March 28, September 28, Contract assets $ 112 $ 150 Accounts Receivable Current 12,322 12,755 Non-current 1,737 1,962 Allowance for credit losses (535) (375) Deferred revenues Current 4,276 4,050 Non-current 636 619 Contract assets primarily relate to certain multi-season TV/SVOD licensing contracts. Activity for the current and prior-year quarters related to contract assets was not material. The allowance for credit losses increased from $375 million at September 28, 2019 to $535 million at March 28, 2020 due to additional provisions in the period. For the quarter and six months ended March 28, 2020, the Company recognized revenues of $0.8 billion and $2.9 billion, respectively, primarily related to theme park admissions, vacation packages and licensing advances included in the deferred revenue balance at September 28, 2019. For the quarter and six months ended March 30, 2019, the Company recognized revenues of $0.7 billion and $2.3 billion, respectively, primarily related to theme park admissions and vacation packages included in the deferred revenue balance at September 30, 2018. 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. 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 $1.1 billion as of March 28, 2020. The activity in the allowance for credit loss for the quarter and six-month period ended March 28, 2020 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 an immaterial allowance for credit losses, was $0.8 billion as of March 28, 2020. The activity in the allowance for credit loss for the quarter and six-month period ended March 28, 2020 was not material. The Company has $14.1 billion in trade accounts receivable outstanding at March 28, 2020, with an allowance for credit losses of $0.5 billion. We evaluate our allowance for credit losses and estimate collectability of accounts receivable based on our analysis of historical bad debt experience in conjunction with our assessment of the financial condition of individual companies with which we do business. In times of domestic or global economic turmoil, including COVID-19, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods. |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions TFCF Corporation On March 20, 2019, the Company acquired the outstanding capital stock of TFCF, a diversified global media and entertainment company. 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). As part of the TFCF acquisition, the Company acquired TFCF’s 30% interest in Hulu increasing our ownership in Hulu to 60%. As a result, the Company began consolidating Hulu and recorded a one-time gain of $4.9 billion (Hulu gain) in the prior-year quarter from remeasuring our initial 30% interest to its estimated fair value, which was determined based on a discounted cash flow analysis. The Company is required to allocate the TFCF 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 following table summarizes our final allocation of the purchase price: Initial Allocation (1) Valuation Adjustments Final Allocation Cash and cash equivalents $ 25,666 $ 35 $ 25,701 Receivables 4,746 350 5,096 Film and television costs 20,120 (2,380) 17,740 Investments 1,471 (509) 962 Intangible assets 20,385 (2,504) 17,881 Net assets held for sale 11,704 (348) 11,356 Accounts payable and other liabilities (10,753) (1,776) (12,529) Borrowings (21,723) — (21,723) Deferred income taxes (6,497) 1,397 (5,100) Other net liabilities acquired (3,865) (114) (3,979) Noncontrolling interests (10,638) 230 (10,408) Goodwill 43,751 5,496 49,247 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 (1) As reported in our March 30, 2019 Form 10-Q. These adjustments to the initial allocation are based on more detailed information obtained about the specific assets acquired and liabilities assumed. The adjustments made to the initial allocation during the current quarter did not result in any material net changes to amortization expense recorded in prior quarters. The following table summarizes the revenues and net loss from continuing operations (including purchase accounting amortization and excluding restructuring and impairment charges and interest income and expense) of TFCF and Hulu included in the Company’s Condensed Consolidated Statement of Income for the quarter and six months ended March 28, 2020. In addition, the table provides the impact of intercompany eliminations of transactions between the Company, TFCF and Hulu: Quarter Six Months TFCF (before intercompany eliminations): Revenues $ 3,483 $ 6,853 Net loss from continuing operations (201) (236) Hulu (before intercompany eliminations): Revenues $ 1,659 $ 3,284 Net loss from continuing operations (287) (603) Intercompany eliminations: Revenues $ (793) $ (1,392) Net loss from continuing operations (83) (131) The revenues and net loss from continuing operations (including purchase accounting amortization) of TFCF and Hulu included in the Company’s Condensed Consolidated Statement of Income for the quarter and six-months ended March 30, 2019 are $518 million and $115 million, respectively (from the date of acquisition through March 30, 2019). The following pro forma summary presents consolidated information of the Company for the six months ended March 30, 2019 as if the acquisition had occurred on October 1, 2017: Revenues $ 38,598 Net income 4,171 Net income attributable to Disney 4,240 Earnings per share attributable to Disney: Diluted $ 2.35 Basic $ 2.36 The pro forma earnings exclude the Hulu gain, compensation expense of $0.2 billion related to TFCF equity awards that were accelerated to vest upon closing of the acquisition and $0.3 billion of acquisition-related expenses. These amounts were recognized by Disney and TFCF in the six months ended March 30, 2019. The pro forma results exclude a $10.8 billion gain on sale recorded by TFCF for the six months ended March 30, 2019 related to its 39% interest in Sky plc, which was sold by TFCF in October 2018. The pro forma results include $0.3 billion of net income recorded by TFCF for the six months ended March 30, 2019 related to the TFCF businesses that we are required to divest as a condition of the acquisition. 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. Goodwill The changes in the carrying amount of goodwill for the six months ended March 28, 2020 are as follows: Media Parks, Experiences and Products Studio Direct-to-Consumer & International Total Balance at September 28, 2019 $ 33,423 $ 5,535 $ 17,797 $ 23,538 $ 80,293 Acquisitions (1) 133 2 15 10 160 Currency translation adjustments and other, net — — — (133) (133) Balance at March 28, 2020 $ 33,556 $ 5,537 $ 17,812 $ 23,415 $ 80,320 |
Other Income
Other Income | 6 Months Ended |
Mar. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income Other income is as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Hulu gain $ — $ 4,917 $ — $ 4,917 Insurance recovery related to a legal matter — 46 — 46 Other income $ — $ 4,963 $ — $ 4,963 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Borrowings | 6 Months Ended |
Mar. 28, 2020 | |
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. March 28, September 28, Cash and cash equivalents $ 14,339 $ 5,418 Restricted cash included in: Other current assets 1 26 Other assets 38 11 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 14,378 $ 5,455 Borrowings During the six months ended March 28, 2020, the Company’s borrowing activity was as follows: September 28, Borrowings Payments Other March 28, Commercial paper with original maturities less than three months (1) $ 1,934 $ 1,598 $ — $ (11) $ 3,521 Commercial paper with original maturities greater than three months 3,408 5,920 (4,380) 14 4,962 U.S. dollar denominated notes 39,424 5,981 (1,008) (108) 44,289 Asia Theme Parks borrowings 1,114 39 — 32 1,185 Foreign currency denominated debt and other (2) 1,106 51 (40) 372 1,489 $ 46,986 $ 13,589 $ (5,428) $ 299 $ 55,446 (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. In March 2020, the Company refinanced two bank facilities with previously committed capacity of $6.0 billion and $2.25 billion, which were scheduled to expire in March 2020 and March 2021, respectively. The new bank facilities are for $5.25 billion and $3.0 billion and are scheduled to expire in March 2021 and 2025, respectively. At March 28, 2020, the Company’s bank facilities were as follows: Committed Capacity Unused Facility expiring March 2021 $ 5,250 $ — $ 5,250 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 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 bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The bank facilities contain only one financial covenant, which is interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On March 28, 2020 the financial covenant was met 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 March 28, 2020, the Company has $1.0 billion of outstanding letters of credit, of which none were issued under this facility. In April 2020, the Company entered into an additional $5.0 billion bank facility expiring in April 2021 with substantially similar terms as the Company’s other bank facilities. The facility allows for borrowings at LIBOR-based rates plus a spread that ranges between 1.025% and 1.800%. Foreign Currency Denominated Debt Subsequent to March 28, 2020, the Company issued Canadian $1.3 billion ($925 million) of fixed rate senior notes, which bear interest at 3.057% and mature in March 2027. Cruise Ship Credit Facilities The Company has credit facilities to finance three new cruise ships, which were to be delivered in 2021, 2022 and 2023 although delays are now expected as a result of the COVID-19 impact on the shipyard. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. Each tranche of financing may be utilized for a period of 18 months from the initial availability date. 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 (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 10) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Interest expense $ (365) $ (198) $ (727) $ (361) Interest and investment income 63 30 139 105 Net periodic pension and postretirement benefit costs (other than service costs) 2 25 5 50 Interest expense, net $ (300) $ (143) $ (583) $ (206) Interest and investment income includes gains and losses on publicly traded and non-public investments, investment impairments and interest earned on cash and cash equivalents and certain receivables. |
International Theme Parks
International Theme Parks | 6 Months Ended |
Mar. 28, 2020 | |
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 Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: March 28, 2020 September 28, 2019 Cash and cash equivalents $ 423 $ 655 Other current assets 104 102 Total current assets 527 757 Parks, resorts and other property 6,593 6,608 Other assets 180 9 Total assets $ 7,300 $ 7,374 Current liabilities $ 373 $ 447 Long-term borrowings 1,146 1,114 Other long-term liabilities 366 189 Total liabilities $ 1,885 $ 1,750 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 six months ended March 28, 2020: Revenues $ 1,274 Costs and expenses (1,691) Equity in the loss of investees (9) Asia Theme Parks’ royalty and management fees of $41 million for the six months ended March 28, 2020 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 six months ended March 28, 2020 were $148 million used in operating activities, $439 million used in investing activities and $92 million generated from financing activities. The majority of cash flows used in operating activities, approximately half of the cash flows used in investing activities, and all of the cash flows generated from financing 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 $146 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 ($271 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 March 28, 2020. 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 $848 million, bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. The Company has also provided Shanghai Disney Resort with a $157 million line of credit bearing interest at 8%. As of March 28, 2020, the total amount outstanding under the line of credit was $29 million. These balances are eliminated in consolidation. |
Produced and Acquired_Licensed
Produced and Acquired/Licensed Content Costs and Advances | 6 Months Ended |
Mar. 28, 2020 | |
Other Industries [Abstract] | |
Produced and Acquired/Licensed Content Costs and Advances Disclosure | Produced and Acquired/Licensed Content Costs and Advances At the beginning of fiscal 2020, the Company adopted, on a prospective basis, new Financial Accounting Standards Board (FASB) guidance that updates the accounting for film and television content costs. Therefore, reporting periods beginning after September 29, 2019 are presented under the new guidance, while prior periods continue to be reported in accordance with our historical accounting. The new guidance does the following: • Allows for the classification of acquired/licensed television content rights as long-term assets. Previously, we reported a portion of these rights in current assets. The Company has classified approximately $3 billion of these rights as long-term in the Q1 2020 balance sheet. Advances for live programming rights made prior to the live event continue to be reported in current assets. • Aligns the capitalization of production costs for episodic television content with the capitalization of production costs for theatrical content. Previously, theatrical content production costs could be fully capitalized while episodic television production costs were generally limited to the amount of contracted revenues. We do not expect this change to have a material impact on the Company’s financial statements for fiscal year 2020. • Introduces the concept of “predominant monetization strategy” to classify capitalized content costs for purposes of amortization and impairment as follows: • Individual - lifetime value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g. theatrical revenues or sales to third-party television programmers). • Group - lifetime value is predominantly derived from third-party revenues that are attributable only to a bundle of titles (e.g. subscription revenue for a DTC service or affiliate fees for a cable television network). The determination of the predominant monetization strategy is made at commencement of production on a consolidated basis and is based on the means by which we derive third-party revenues from use of the content. Imputed title by title intersegment license fees that may be necessary for other purposes are established as required by those purposes. For these accounting purposes, we generally classify content that is initially intended for use on our DTC services or on our linear television networks as group assets. Content initially intended for theatrical release or for sale to third-party licensees, we generally classify as individual assets. Because the new accounting guidance is applied prospectively, the predominant monetization strategy for content released prior to the beginning of fiscal 2020 is determined based on the expected means of monetization over the remaining life of the content. Thus for example, film titles that were released theatrically and in home entertainment prior to fiscal year 2020 and are now distributed on Disney+ are generally considered group content. The classification of content as individual or group only changes if there is a significant change to the title’s monetization strategy relative to its initial assessment (e.g. content that was initially intended for license to a third-party is instead used on an owned DTC service). Production costs for content predominantly individually monetized will continue to be amortized based upon the ratio of the current period’s revenues to the estimated remaining total revenues (Ultimate Revenues). For film productions, Ultimate Revenues include revenues from all sources, which may include intersegment license fees, that will be earned within ten years from the date of the initial release for theatrical films. For episodic television series, Ultimate Revenues include revenues that will be earned within ten years from delivery of the first episode, or if still in production, five years from delivery of the most recent episode, if later. Production costs predominantly monetized as a group are amortized based on projected usage (which may be, for example, derived from historical viewership patterns), typically resulting in an accelerated or straight-line amortization pattern. Licensed rights to film and television content and other programs for broadcast on our linear networks or distribution on our DTC services are expensed on an accelerated or straight-line basis over their useful life or over the number of times the program is expected to be aired, as appropriate. We amortize rights costs for multi-year sports programming arrangements during the applicable seasons based on the estimated relative value of each year in the arrangement. If annual contractual payments related to each season approximate each season’s estimated relative value, we expense the related contractual payments during the applicable season. The costs of produced and licensed film and television content are subject to regular recoverability assessments. For content that is predominantly monetized individually, the unamortized costs are compared to the estimated fair value. The fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the title. To the extent the unamortized costs exceed the fair value, an impairment charge is recorded for the excess. For content that is predominantly monetized as a group, the aggregate unamortized costs of the group are compared to the present value of the discounted cash flows using the lowest level for which identifiable cash flows are independent of other produced and licensed content. If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess and allocated to individual titles based on the relative carrying value of each title in the group. If there are no plans to continue to use an individual film or television program that is part of a group, the unamortized cost of the individual title is written-off immediately. Licensed content is included as part of the group within which it is monetized for purposes of assessing recoverability. Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of March 28, 2020 Predominantly Monetized Individually Predominantly Monetized as a Group Total Produced content Theatrical film costs Released, less amortization $ 3,515 $ 2,477 $ 5,992 Completed, not released 452 59 511 In-process 3,194 268 3,462 In development or pre-production 399 1 400 $ 7,560 $ 2,805 10,365 Television costs Released, less amortization $ 2,920 $ 6,377 $ 9,297 Completed, not released 387 533 920 In-process 155 1,789 1,944 In development or pre-production — 48 48 $ 3,462 $ 8,747 12,209 Licensed content - Television programming rights and advances 6,052 Total produced and licensed content $ 28,626 Current portion $ 1,869 Non-current portion $ 26,757 Amortization of produced and licensed content is as follows: Quarter Ended March 28, 2020 Predominantly Predominantly Total Theatrical film costs $ 562 $ 270 $ 832 Television costs 740 1,081 1,821 Total produced content costs $ 1,302 $ 1,351 2,653 Television programming rights and advances 2,453 Total produced and licensed content costs (1) $ 5,106 Six Months Ended March 28, 2020 Predominantly Predominantly Total Theatrical film costs $ 1,088 $ 581 $ 1,669 Television costs 1,494 2,008 3,502 Total produced content costs $ 2,582 $ 2,589 5,171 Television programming rights and advances 6,184 Total produced and licensed content costs (1) $ 11,355 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statement of Income. Amortization of produced and licensed content for the quarter and six months ended March 30, 2019 was $3.2 billion and $7.3 billion, respectively. |
Income Taxes Income Tax
Income Taxes Income Tax | 6 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Interim Period Tax Expense Because of COVID-19 implications on our projections of full-year pre-tax earnings and income tax expense, as well as the projected impact of permanent tax differences and other items that are generally not proportional to full-year earnings (“Permanent Differences”), our normal approach of using an estimated full-year effective income tax rate to determine interim period tax expense produces an income tax provision for the current year-to-date period that is not meaningful. Accordingly, we calculated year-to-date fiscal 2020 tax expense based on year-to-date earnings before tax and using a blended U.S. Federal and state statutory tax rate of approximately 23%, and adjusted for the estimated impact of Permanent Differences. The second quarter tax expense is the fiscal year-to-date tax expense less tax expense recognized in the first quarter. 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 At March 28, 2020, the Company’s unrecognized tax benefits were $2.9 billion (before interest and penalties). The change for the six months ended March 28, 2020 was not material. 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 and income tax expense by $0.1 billion if recognized. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 6 Months Ended |
Mar. 28, 2020 | |
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 Six Months Ended Quarter Ended Six Months Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Service costs $ 102 $ 83 $ 205 $ 166 $ 2 $ 2 $ 5 $ 4 Other costs (benefits): Interest costs 133 144 266 289 14 17 28 33 Expected return on plan assets (273) (240) (546) (479) (15) (14) (29) (28) Amortization of previously deferred service costs 4 4 7 7 — — — — Recognized net actuarial loss 131 67 262 131 4 — 7 — Total other costs (benefits) (5) (25) (11) (52) 3 3 6 5 Net periodic benefit cost $ 97 $ 58 $ 194 $ 114 $ 5 $ 5 $ 11 $ 9 During the six months ended March 28, 2020, the Company did not make any material contributions to its pension and postretirement medical plans. The Company originally intended to make fiscal 2020 total pension and postretirement medical plan contributions of approximately $600 million to $675 million. However, in light of the COVID-19 impacts, contributions will be determined based on the funded status of the plans. The Company will receive its January 1, 2020 actuarial valuation in the fourth quarter of fiscal 2020, which will determine minimum funding requirements for fiscal 2020. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 28, 2020 | |
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 Six Months Ended March 28, March 30, March 28, March 30, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,808 1,530 1,806 1,510 Weighted average dilutive impact of Awards 8 7 10 7 Weighted average number of common and common equivalent shares outstanding (diluted) 1,816 1,537 1,816 1,517 Awards excluded from diluted earnings per share 9 14 9 13 |
Equity
Equity | 6 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Equity | Equity The Company paid the following dividends in fiscal 2020 and 2019: Per Share Total Paid Payment Timing Related to Fiscal Period $0.88 $1.6 billion Second Quarter of Fiscal 2020 Second Half 2019 $0.88 $1.6 billion Fourth Quarter of Fiscal 2019 First Half 2019 $0.88 $1.3 billion Second Quarter of Fiscal 2019 Second Half 2018 The Board of Directors elected not to declare a dividend payable in July 2020 with respect to the first half of fiscal year 2020. 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 Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ (12) $ (7,363) $ (1,004) $ (8,379) Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — 212 (43) (364) (195) Reclassifications of realized net (gains) losses to net income — (42) 138 — 96 Balance at March 28, 2020 $ — $ 158 $ (7,268) $ (1,368) $ (8,478) Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ 166 $ (4,254) $ (743) $ (4,831) Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period (5) (82) 19 15 (53) Reclassifications of realized net (gains) losses to net income — (22) 72 — 50 Balance at March 30, 2019 $ (5) $ 62 $ (4,163) $ (728) $ (4,834) Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ 129 $ (7,502) $ (1,086) $ (8,459) Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — 131 (43) (282) (194) Reclassifications of realized net (gains) losses to net income — (102) 277 — 175 Balance at March 28, 2020 $ — $ 158 $ (7,268) $ (1,368) $ (8,478) Six months ended fiscal 2019 Balance at September 29, 2018 $ 24 $ 177 $ (4,323) $ (727) $ (4,849) Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period (5) (55) 19 (1) (42) Reclassifications of realized net (gains) losses to net income — (61) 141 — 80 Reclassifications to retained earnings (24) 1 — — (23) Balance at March 30, 2019 $ (5) $ 62 $ (4,163) $ (728) $ (4,834) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ 5 $ 1,724 $ 117 $ 1,846 Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — (51) 10 58 17 Reclassifications of realized net (gains) losses to net income — 10 (32) — (22) Balance at March 28, 2020 $ — $ (36) $ 1,702 $ 175 $ 1,841 Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ (38) $ 1,007 $ 80 $ 1,049 Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period 1 19 (6) (3) 11 Reclassifications of realized net (gains) losses to net income — 5 (17) — (12) Balance at March 30, 2019 $ 1 $ (14) $ 984 $ 77 $ 1,048 Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ (29) $ 1,756 $ 115 $ 1,842 Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — (31) 10 60 39 Reclassifications of realized net (gains) losses to net income — 24 (64) — (40) Balance at March 28, 2020 $ — $ (36) $ 1,702 $ 175 $ 1,841 Six months ended fiscal 2019 Balance at September 29, 2018 $ (9) $ (32) $ 1,690 $ 103 $ 1,752 Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period 1 13 (6) (10) (2) Reclassifications of realized net (gains) losses to net income — 14 (33) — (19) Reclassifications to retained earnings (1) 9 (9) (667) (16) (683) Balance at March 30, 2019 $ 1 $ (14) $ 984 $ 77 $ 1,048 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ (7) $ (5,639) $ (887) $ (6,533) Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — 161 (33) (306) (178) Reclassifications of realized net (gains) losses to net income — (32) 106 — 74 Balance at March 28, 2020 $ — $ 122 $ (5,566) $ (1,193) $ (6,637) Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ 128 $ (3,247) $ (663) $ (3,782) Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period (4) (63) 13 12 (42) Reclassifications of realized net (gains) losses to net income — (17) 55 — 38 Balance at March 30, 2019 $ (4) $ 48 $ (3,179) $ (651) $ (3,786) Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ 100 $ (5,746) $ (971) $ (6,617) Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — 100 (33) (222) (155) Reclassifications of realized net (gains) losses to net income — (78) 213 — 135 Balance at March 28, 2020 $ — $ 122 $ (5,566) $ (1,193) $ (6,637) Six months ended fiscal 2019 Balance at September 29, 2018 $ 15 $ 145 $ (2,633) $ (624) $ (3,097) Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period (4) (42) 13 (11) (44) Reclassifications of realized net (gains) losses to net income — (47) 108 — 61 Reclassifications to retained earnings (1) (15) (8) (667) (16) (706) Balance at March 30, 2019 $ (4) $ 48 $ (3,179) $ (651) $ (3,786) (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: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Cash flow hedges Primarily revenue $ 42 $ 22 $ 102 $ 61 Estimated tax Income taxes (10) (5) (24) (14) 32 17 78 47 Pension and postretirement medical expense Interest expense, net (138) (72) (277) (141) Estimated tax Income taxes 32 17 64 33 (106) (55) (213) (108) Total reclassifications for the period $ (74) $ (38) $ (135) $ (61) |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Stock options $ 28 $ 24 $ 49 $ 43 RSUs (1) 103 340 197 413 Total equity-based compensation expense (2) $ 131 $ 364 $ 246 $ 456 Equity-based compensation expense capitalized during the period $ 21 $ 22 $ 45 $ 38 (1) Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . (2) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $209 million and $969 million, respectively, as of March 28, 2020. The weighted average grant date fair values of options granted during the six months ended March 28, 2020 and March 30, 2019 were $36.22 and $28.67, respectively. During the six months ended March 28, 2020, the Company made equity compensation grants consisting of 4.3 million stock options and 5.0 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 28, 2020 | |
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 mature in 2037. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of March 28, 2020, the remaining debt service obligation guaranteed by the Company was $237 million. To the extent that tax |
Leases
Leases | 6 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases At the beginning of fiscal 2020, the Company adopted new lease accounting guidance issued by the FASB. The most significant change requires lessees to record the present value of operating lease payments as right-of-use assets and lease liabilities on the balance sheet. The new guidance continues to require lessees to classify leases between operating and finance leases (formerly “capital leases”). We adopted the new guidance using the modified retrospective method at the beginning of fiscal year 2020. Reporting periods beginning after September 29, 2019 are presented under the new guidance, while prior periods continue to be reported in accordance with our historical accounting. The Company adopted the new guidance by applying practical expedients that permit us not to reassess our prior conclusions concerning whether: • Any of our existing arrangements contain a lease; • Our existing lease arrangements are operating or finance leases; • To capitalize indirect costs; and • Existing land easements are leases. The adoption of the new guidance resulted in the recognition on the Condensed Consolidated Balance Sheet of right-of-use assets and lease liabilities of approximately $3.7 billion, which were measured by the present value of the remaining minimum lease payments. In accordance with the guidance, the Company elected to exclude from the measurement of the right-of-use asset and lease liability leases with a remaining term of one year (“Short-term leases”). The present value of the lease payments was calculated using the Company’s incremental borrowing rate applicable to the lease, which is determined by estimating what it would cost the Company to borrow a collateralized amount equal to the total lease payments over the lease term based on the contractual terms of the lease and the location of the leased asset. At adoption, in the Condensed Consolidated Balance Sheet we also reclassified: • Deferred rent of approximately $0.3 billion for operating leases at the end of fiscal year 2019 from “Accounts payable and other accrued liabilities” (current portion) and “Other long-term liabilities” (non-current portion) to “Other assets” (right-of-use asset); • A deferred sale leaseback gain of approximately $0.3 billion from “Deferred revenue and other” (current portion) and “Other long-term liabilities” (non-current portion) to “Retained earnings”; and • Capitalized lease assets of approximately $0.2 billion from “Parks, resorts and other property” to “Other assets” related to finance leases. Lessee Arrangements The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, retail outlets and distribution centers for consumer products, land and content broadcast equipment. The Company also has finance leases, primarily for land and broadcast equipment. We determine whether a new contract is a lease at contract inception or for a modified contract at the modification date. Our leases may require us to make fixed rental payments, variable lease payments based on usage or sales and fixed non-lease costs relating to the leased asset. Variable lease payments are generally not included in the measurement of the right-of-use asset and lease liability. Fixed non-lease costs, for example common-area maintenance costs, are included in the measurement of the right-of-use asset and lease liability as the Company does not separate lease and non-lease components. Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of March 28, 2020, our operating leases have a weighted-average remaining lease term of approximately 9 years, and our finance leases have a weighted-average remaining lease term of approximately 23 years. The weighted-average incremental borrowing rate is 2.5% and 6.4%, for our operating leases and finance leases, respectively. Additionally, as of March 28, 2020, the Company had signed non-cancelable lease agreements with total estimated future lease payments of approximately $270 million that had not yet commenced and therefore are not included in the measurement of the right-of-use asset and lease liability. The Company’s operating and finance right-of-use assets and lease liabilities as of March 28, 2020 are as follows: Right-of-use assets (1) Operating leases $ 4,211 Finance leases 353 Total right-of-use assets $ 4,564 Short-term lease liabilities (2) Operating leases $ 822 Finance leases 36 858 Long-term lease liabilities (3) Operating leases $ 2,969 Finance leases 282 3,251 Total lease liabilities $ 4,109 (1) Included in “Other assets” in the Condensed Consolidated Balance Sheets. Includes approximately $0.6 billion of long-term prepaid rent that was presented as a right-of-use asset upon adoption. (2) Included in “Accounts payable and other accrued liabilities” in the Condensed Consolidated Balance Sheets (3) Included in “Other long-term liabilities” in the Condensed Consolidated Balance Sheet The components of lease expense for the quarter and six months ended March 28, 2020 are as follows: Quarter Six Months Finance lease cost Amortization of right-of-use assets $ 15 $ 17 Interest on lease liabilities 4 8 Operating lease cost 229 452 Variable fees and other (1) 127 273 Total lease cost $ 375 $ 750 (1) Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. Cash paid during the quarter and six months ended March 28, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period are as follows: Quarter Six Months Operating cash flows for operating leases $ 270 $ 495 Operating cash flows for finance leases 4 8 Financing cash flows for finance leases 16 23 Total $ 290 $ 526 Future minimum lease payments, as of March 28, 2020, are as follows: Operating Financing Fiscal year: 2020 $ 436 $ 30 2021 832 57 2022 645 56 2023 505 47 2024 381 38 Thereafter 1,817 514 Total undiscounted future lease payments 4,616 742 Less: Imputed interest (825) (424) Total reported lease liability $ 3,791 $ 318 Future minimum lease payments under non-cancelable operating leases and non-cancelable capital leases at September 28, 2019, presented based on our historical accounting prior to the adoption of the new lease guidance, are as follows: Operating Capital Fiscal year: 2020 $ 982 $ 19 2021 849 20 2022 670 19 2023 532 17 2024 407 16 Thereafter 2,491 458 Total minimum obligations $ 5,931 549 Less: amount representing interest (398) Present value of net minimum obligations $ 151 |
Leases | Leases At the beginning of fiscal 2020, the Company adopted new lease accounting guidance issued by the FASB. The most significant change requires lessees to record the present value of operating lease payments as right-of-use assets and lease liabilities on the balance sheet. The new guidance continues to require lessees to classify leases between operating and finance leases (formerly “capital leases”). We adopted the new guidance using the modified retrospective method at the beginning of fiscal year 2020. Reporting periods beginning after September 29, 2019 are presented under the new guidance, while prior periods continue to be reported in accordance with our historical accounting. The Company adopted the new guidance by applying practical expedients that permit us not to reassess our prior conclusions concerning whether: • Any of our existing arrangements contain a lease; • Our existing lease arrangements are operating or finance leases; • To capitalize indirect costs; and • Existing land easements are leases. The adoption of the new guidance resulted in the recognition on the Condensed Consolidated Balance Sheet of right-of-use assets and lease liabilities of approximately $3.7 billion, which were measured by the present value of the remaining minimum lease payments. In accordance with the guidance, the Company elected to exclude from the measurement of the right-of-use asset and lease liability leases with a remaining term of one year (“Short-term leases”). The present value of the lease payments was calculated using the Company’s incremental borrowing rate applicable to the lease, which is determined by estimating what it would cost the Company to borrow a collateralized amount equal to the total lease payments over the lease term based on the contractual terms of the lease and the location of the leased asset. At adoption, in the Condensed Consolidated Balance Sheet we also reclassified: • Deferred rent of approximately $0.3 billion for operating leases at the end of fiscal year 2019 from “Accounts payable and other accrued liabilities” (current portion) and “Other long-term liabilities” (non-current portion) to “Other assets” (right-of-use asset); • A deferred sale leaseback gain of approximately $0.3 billion from “Deferred revenue and other” (current portion) and “Other long-term liabilities” (non-current portion) to “Retained earnings”; and • Capitalized lease assets of approximately $0.2 billion from “Parks, resorts and other property” to “Other assets” related to finance leases. Lessee Arrangements The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, retail outlets and distribution centers for consumer products, land and content broadcast equipment. The Company also has finance leases, primarily for land and broadcast equipment. We determine whether a new contract is a lease at contract inception or for a modified contract at the modification date. Our leases may require us to make fixed rental payments, variable lease payments based on usage or sales and fixed non-lease costs relating to the leased asset. Variable lease payments are generally not included in the measurement of the right-of-use asset and lease liability. Fixed non-lease costs, for example common-area maintenance costs, are included in the measurement of the right-of-use asset and lease liability as the Company does not separate lease and non-lease components. Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of March 28, 2020, our operating leases have a weighted-average remaining lease term of approximately 9 years, and our finance leases have a weighted-average remaining lease term of approximately 23 years. The weighted-average incremental borrowing rate is 2.5% and 6.4%, for our operating leases and finance leases, respectively. Additionally, as of March 28, 2020, the Company had signed non-cancelable lease agreements with total estimated future lease payments of approximately $270 million that had not yet commenced and therefore are not included in the measurement of the right-of-use asset and lease liability. The Company’s operating and finance right-of-use assets and lease liabilities as of March 28, 2020 are as follows: Right-of-use assets (1) Operating leases $ 4,211 Finance leases 353 Total right-of-use assets $ 4,564 Short-term lease liabilities (2) Operating leases $ 822 Finance leases 36 858 Long-term lease liabilities (3) Operating leases $ 2,969 Finance leases 282 3,251 Total lease liabilities $ 4,109 (1) Included in “Other assets” in the Condensed Consolidated Balance Sheets. Includes approximately $0.6 billion of long-term prepaid rent that was presented as a right-of-use asset upon adoption. (2) Included in “Accounts payable and other accrued liabilities” in the Condensed Consolidated Balance Sheets (3) Included in “Other long-term liabilities” in the Condensed Consolidated Balance Sheet The components of lease expense for the quarter and six months ended March 28, 2020 are as follows: Quarter Six Months Finance lease cost Amortization of right-of-use assets $ 15 $ 17 Interest on lease liabilities 4 8 Operating lease cost 229 452 Variable fees and other (1) 127 273 Total lease cost $ 375 $ 750 (1) Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. Cash paid during the quarter and six months ended March 28, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period are as follows: Quarter Six Months Operating cash flows for operating leases $ 270 $ 495 Operating cash flows for finance leases 4 8 Financing cash flows for finance leases 16 23 Total $ 290 $ 526 Future minimum lease payments, as of March 28, 2020, are as follows: Operating Financing Fiscal year: 2020 $ 436 $ 30 2021 832 57 2022 645 56 2023 505 47 2024 381 38 Thereafter 1,817 514 Total undiscounted future lease payments 4,616 742 Less: Imputed interest (825) (424) Total reported lease liability $ 3,791 $ 318 Future minimum lease payments under non-cancelable operating leases and non-cancelable capital leases at September 28, 2019, presented based on our historical accounting prior to the adoption of the new lease guidance, are as follows: Operating Capital Fiscal year: 2020 $ 982 $ 19 2021 849 20 2022 670 19 2023 532 17 2024 407 16 Thereafter 2,491 458 Total minimum obligations $ 5,931 549 Less: amount representing interest (398) Present value of net minimum obligations $ 151 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 Level 1 Level 2 Level 3 Total Assets Investments $ 7 $ — $ — $ 7 Derivatives Interest rate — 466 — 466 Foreign exchange — 994 — 994 Other — 13 — 13 Liabilities Derivatives Interest rate — (2) — (2) Foreign exchange — (734) — (734) Other — (29) — (29) Total recorded at fair value $ 7 $ 708 $ — $ 715 Fair value of borrowings $ — $ 56,510 $ 1,328 $ 57,838 Fair Value Measurement at September 28, 2019 Level 1 Level 2 Level 3 Total Assets Investments $ 13 $ — $ — $ 13 Derivatives Interest rate — 89 — 89 Foreign exchange — 771 — 771 Other — 1 — 1 Liabilities Derivatives Interest rate — (93) — (93) Foreign exchange — (544) — (544) Other — (4) — (4) Total recorded at fair value $ 13 $ 220 $ — $ 233 Fair value of borrowings $ — $ 48,709 $ 1,249 $ 49,958 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. dollar denominated notes and certain foreign currency denominated borrowings, are valued based on quoted prices for similar instruments in active markets or identical instruments in markets that are not active. Level 3 borrowings include the Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as prevailing market interest rates. The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 389 $ 302 $ (95) $ (287) Interest rate — 466 — — Other 1 — (21) (8) Derivatives not designated as hedges Foreign exchange 105 198 (141) (211) Interest rate — — — (2) Other 12 — — — Gross fair value of derivatives 507 966 (257) (508) Counterparty netting (211) (492) 225 478 Cash collateral (received)/paid (214) (229) — 6 Net derivative positions $ 82 $ 245 $ (32) $ (24) As of September 28, 2019 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 302 $ 241 $ (67) $ (244) Interest rate — 89 (82) — Other 1 — (3) (1) Derivatives not designated as hedges Foreign exchange 65 163 (107) (126) Interest rate — — — (11) Gross fair value of derivatives 368 493 (259) (382) Counterparty netting (231) (345) 258 318 Cash collateral (received)/paid (55) (6) — 7 Net derivative positions $ 82 $ 142 $ (1) $ (57) 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 March 28, 2020 and September 28, 2019, the total notional amount of the Company’s pay-floating interest rate swaps was $10.9 billion and $9.9 billion, respectively. The following table summarizes fair value hedge adjustments to hedged borrowings at March 28, 2020 and September 28, 2019: Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) March 28, 2020 September 28, 2019 March 28, 2020 September 28, 2019 Borrowings: Current $ 1,126 $ 1,121 $ 2 $ (3) Long-term 10,936 9,562 464 34 $ 12,062 $ 10,683 $ 466 $ 31 (1) Includes $36 million and $37 million of gains on terminated interest rate swaps as of March 28, 2020 and September 28, 2019, respectively. The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended Six Months Ended March 28, 2020 March 30, March 28, March 30, 2019 Gain (loss) on: Pay-floating swaps $ 542 $ 117 $ 429 $ 234 Borrowings hedged with pay-floating swaps (542) (117) (429) (234) Benefit (expense) associated with interest accruals on pay-floating swaps (7) (18) (19) (32) 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 March 28, 2020 or at September 28, 2019, and gains and losses related to pay-fixed swaps recognized in earnings for the quarter ended March 28, 2020 and March 30, 2019 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 March 28, 2020 and September 28, 2019 were $2 million and $11 million, respectively. 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 ended March 28, 2020 and March 30, 2019 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 March 28, 2020 and September 28, 2019, the notional amounts of the Company’s net foreign exchange cash flow hedges were $5.6 billion and $6.3 billion, respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months total $324 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter and six months ended March 28, 2020: Quarter Ended Gain (loss) recognized in Other Comprehensive Income $ 234 Gain (loss) reclassified from AOCI into the Statement of Income (1) 43 Six Months Ended: Gain/(loss) recognized in Other Comprehensive Income $ 149 Gain/(loss) reclassified from AOCI into the Statement of Income (1) 103 (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 March 28, 2020 and September 28, 2019 were $4.2 billion and $3.8 billion, respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the six months ended March 28, 2020 and March 30, 2019 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: March 28, March 30, March 28, March 30, March 28, March 30, Net gains (losses) on foreign currency denominated assets and liabilities $ (241) $ 1 $ 64 $ (12) $ 8 $ — Net gains (losses) on foreign exchange risk management contracts not designated as hedges 239 (4) (62) 11 (20) (4) Net gains (losses) $ (2) $ (3) $ 2 $ (1) $ (12) $ (4) Six Months Ended: Net gains (losses) on foreign currency denominated assets and liabilities $ (172) $ (26) $ 52 $ 28 $ (7) $ 15 Net gains (losses) on foreign exchange risk management contracts not designated as hedges 159 20 (52) (28) (3) (22) Net gains (losses) $ (13) $ (6) $ — $ — $ (10) $ (7) 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 March 28, 2020 and September 28, 2019 and related gains or losses recognized in earnings for the quarter and six months ended March 28, 2020 and March 30, 2019 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 March 28, 2020 and September 28, 2019 were not material. The related gains or losses recognized in earnings for the quarter and six months ended March 28, 2020 and March 30, 2019 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 |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 6 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment Charges In fiscal 2019, the Company implemented a restructuring and integration plan as a part of its initiative to realize cost synergies from the acquisition of TFCF. We expect to substantially complete the restructuring plan by the end of fiscal 2021. In connection with this plan, during the quarter ended March 28, 2020, the Company recorded $145 million of restructuring and impairment charges, which included $133 million of severance. To date, we have recorded restructuring charges of $1.5 billion, including $1.2 billion related to severance (including employee contract terminations) in connection with the plan and $0.3 billion of equity based compensation costs, primarily for TFCF awards that were accelerated to vest upon the closing of the TFCF acquisition. Integration efforts are still underway and we anticipate that the total severance costs will be on the order of $1.5 billion. The Company currently expects other remaining restructuring costs will not be material. The changes in restructuring reserves related to TFCF integration for fiscal 2019 and the six months ended March 28, 2020 are as follows: Balance at September 29, 2018 $ — Additions in fiscal 2019: Media Networks 90 Parks, Experiences and Products 11 Studio Entertainment 197 Direct-to-Consumer & International 426 Corporate 182 Total additions in fiscal 2019 906 Payments in fiscal 2019 (230) Balance at September 28, 2019 $ 676 Additions in fiscal 2020: Media Networks 18 Parks, Experiences and Products 8 Studio Entertainment 50 Direct-to-Consumer & International 163 Corporate 32 Total additions in fiscal 2020 271 Payments in fiscal 2020 (412) Balance at March 28, 2020 $ 535 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 28, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted in Fiscal 2020 • Leases - See Note 15 • Improvements to Accounting for Costs of Films and License Agreements for Program Materials - See Note 8 Facilitation of the Effects of Reference Rate Reform In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying current GAAP to contracts, hedging relationships, and other transactions affected by the transition from the use of LIBOR to an alternative reference rate. We are currently evaluating our contracts and hedging relationships that reference LIBOR and the potential effects of adopting this new guidance. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued guidance which simplifies the accounting for income taxes. The guidance amends the rules for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. It also reduces complexity in certain areas, including the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating taxes to members of a consolidated group. The guidance is effective at the beginning of the Company’s 2022 fiscal year (with early adoption permitted). The Company is currently assessing the impact of the new guidance on its financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued new accounting guidance which modifies existing guidance related to the measurement of credit losses on financial instruments, including trade and loan receivables. The new guidance requires impairments to be measured based on expected losses over the life of the asset rather than incurred losses. We currently do not expect the new guidance will have a material impact on our financial statements. The guidance is effective at the beginning of the Company’s 2021 fiscal year. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Financial Information by Operating Segments | Segment revenues and segment operating income are as follows: Quarter Ended Six Months Ended March 28, March 30, 2019 March 28, March 30, Revenues : Media Networks $ 7,257 $ 5,683 $ 14,618 $ 11,604 Parks, Experiences and Products (1) 5,543 6,171 12,939 12,995 Studio Entertainment (1) 2,539 2,157 6,303 3,981 Direct-to-Consumer & International 4,123 1,145 8,110 2,063 Eliminations (2) (1,453) (234) (3,103) (418) $ 18,009 $ 14,922 $ 38,867 $ 30,225 Segment operating income (loss) : Media Networks $ 2,375 $ 2,230 $ 4,005 $ 3,560 Parks, Experiences and Products (1) 639 1,506 2,977 3,658 Studio Entertainment (1) 466 506 1,414 815 Direct-to-Consumer & International (812) (385) (1,505) (521) Eliminations (2) (252) (41) (473) (41) $ 2,416 $ 3,816 $ 6,418 $ 7,471 (1) The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. (2) Intersegment eliminations are as follows: Quarter Ended Six Months Ended (in millions) March 28, March 30, March 28, March 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (58) $ (13) $ (111) $ (34) Content transactions with Direct-to-Consumer & International (461) (82) (1,146) (100) Media Networks: Content transactions with Direct-to-Consumer & International (934) (139) (1,846) (284) $ (1,453) $ (234) $ (3,103) $ (418) Operating income: Studio Entertainment: Content transactions with Media Networks $ (10) $ 5 $ (10) $ 5 Content transactions with Direct-to-Consumer & International (157) (46) (273) (44) Media Networks: Content transactions with Direct-to-Consumer & International (85) — (190) (2) $ (252) $ (41) $ (473) $ (41) |
Equity In Income of Investees By Segment | Equity in the income / (loss) of investees is included in segment operating income as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Media Networks $ 179 $ 182 $ 372 $ 361 Parks, Experiences and Products (6) — (9) (12) Direct-to-Consumer & International (30) (138) 12 (229) Equity in the income of investees included in segment operating income 143 44 375 120 Vice impairment (1) — (353) — (353) Amortization of TFCF intangible assets related to equity investees (8) — (16) — Equity in the income / (loss) of investees, net $ 135 $ (309) $ 359 $ (233) (1) Reflects the impairment of Vice Group Holdings, Inc. |
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 Six Months Ended March 28, March 30, March 28, March 30, Segment operating income $ 2,416 $ 3,816 $ 6,418 $ 7,471 Corporate and unallocated shared expenses (188) (279) (425) (440) Restructuring and impairment charges (145) (662) (295) (662) Other income — 4,963 — 4,963 Interest expense, net (300) (143) (583) (206) Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (1) (723) (105) (1,423) (105) Vice impairment — (353) — (353) Income from continuing operations before income taxes $ 1,060 $ 7,237 $ 3,692 $ 10,668 (1) For the quarter ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $498 million, $217 million and $8 million, respectively. For the six months ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $984 million, $423 million and $16 million, respectively. For the quarter and six months ended March 30, 2019 amortization of intangible assets and step-up of film and television costs were $73 million and $32 million, respectively. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source: Quarter Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,746 $ — $ — $ 957 $ (186) $ 4,517 Advertising 1,703 1 — 1,081 — 2,785 Theme park admissions — 1,554 — — — 1,554 Resort and vacations — 1,377 — — — 1,377 Retail and wholesale sales of merchandise, food and beverage — 1,584 — — — 1,584 TV/SVOD distribution licensing 1,700 — 1,112 163 (1,267) 1,708 Theatrical distribution licensing — — 603 — — 603 Merchandise licensing — 591 117 8 — 716 Subscription fees — — — 1,796 — 1,796 Home entertainment — — 427 19 — 446 Other 108 436 280 99 — 923 Total revenues $ 7,257 $ 5,543 $ 2,539 $ 4,123 $ (1,453) $ 18,009 Quarter Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 3,234 $ — $ — $ 412 $ (12) $ 3,634 Advertising 1,624 1 — 454 — 2,079 Theme park admissions — 1,768 — — — 1,768 Resort and vacations — 1,503 — — — 1,503 Retail and wholesale sales of merchandise, food and beverage — 1,768 — — — 1,768 TV/SVOD distribution licensing 745 — 718 23 (222) 1,264 Theatrical distribution licensing — — 752 — — 752 Merchandise licensing — 637 126 13 — 776 Subscription fees — — — 153 — 153 Home entertainment — — 270 21 — 291 Other 80 494 291 69 — 934 Total revenues $ 5,683 $ 6,171 $ 2,157 $ 1,145 $ (234) $ 14,922 Six Months Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 7,394 $ — $ — $ 1,910 $ (360) $ 8,944 Advertising 3,726 3 — 2,448 — 6,177 Theme park admissions — 3,621 — — — 3,621 Resort and vacations — 3,008 — — — 3,008 Retail and wholesale sales of merchandise, food and beverage — 3,897 — — — 3,897 TV/SVOD distribution licensing 3,238 — 2,474 366 (2,743) 3,335 Theatrical distribution licensing — — 2,011 — — 2,011 Merchandise licensing — 1,455 301 16 — 1,772 Subscription fees — — — 3,122 — 3,122 Home entertainment — — 938 46 — 984 Other 260 955 579 202 — 1,996 Total revenues $ 14,618 $ 12,939 $ 6,303 $ 8,110 $ (3,103) $ 38,867 Six Months Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 6,309 $ — $ — $ 735 $ (12) $ 7,032 Advertising 3,647 3 — 871 — 4,521 Theme park admissions — 3,701 — — — 3,701 Resort and vacations — 3,034 — — — 3,034 Retail and wholesale sales of merchandise, food and beverage — 3,890 — — — 3,890 TV/SVOD distribution licensing 1,467 — 1,323 57 (406) 2,441 Theatrical distribution licensing — — 1,125 — — 1,125 Merchandise licensing — 1,378 280 28 — 1,686 Subscription fees — — — 186 — 186 Home entertainment — — 695 49 — 744 Other 181 989 558 137 — 1,865 Total revenues $ 11,604 $ 12,995 $ 3,981 $ 2,063 $ (418) $ 30,225 |
Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets: Quarter Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 6,805 $ 4,567 $ 1,264 $ 2,408 $ (1,207) $ 13,837 Europe 383 523 714 436 (172) 1,884 Asia Pacific 49 405 399 657 (12) 1,498 Latin America 20 48 162 622 (62) 790 Total revenues $ 7,257 $ 5,543 $ 2,539 $ 4,123 $ (1,453) $ 18,009 Quarter Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 5,438 $ 4,689 $ 1,074 $ 320 $ (205) $ 11,316 Europe 148 631 576 184 (23) 1,516 Asia Pacific 69 800 388 245 (6) 1,496 Latin America 28 51 119 396 — 594 Total revenues $ 5,683 $ 6,171 $ 2,157 $ 1,145 $ (234) $ 14,922 Six Months Ended March 28, 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 13,746 $ 10,275 $ 3,245 $ 4,568 $ (2,671) $ 29,163 Europe 590 1,415 1,687 922 (234) 4,380 Asia Pacific 195 1,137 1,024 1,364 (136) 3,584 Latin America 87 112 347 1,256 (62) 1,740 Total revenues $ 14,618 $ 12,939 $ 6,303 $ 8,110 $ (3,103) $ 38,867 Six Months Ended March 30, 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated United States and Canada $ 11,126 $ 9,831 $ 2,112 $ 545 $ (369) $ 23,245 Europe 290 1,485 989 373 (38) 3,099 Asia Pacific 132 1,562 674 379 (11) 2,736 Latin America 56 117 206 766 — 1,145 Total revenues $ 11,604 $ 12,995 $ 3,981 $ 2,063 $ (418) $ 30,225 |
Contract with Customer, Asset and Liability | Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: March 28, September 28, Contract assets $ 112 $ 150 Accounts Receivable Current 12,322 12,755 Non-current 1,737 1,962 Allowance for credit losses (535) (375) Deferred revenues Current 4,276 4,050 Non-current 636 619 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes our final allocation of the purchase price: Initial Allocation (1) Valuation Adjustments Final Allocation Cash and cash equivalents $ 25,666 $ 35 $ 25,701 Receivables 4,746 350 5,096 Film and television costs 20,120 (2,380) 17,740 Investments 1,471 (509) 962 Intangible assets 20,385 (2,504) 17,881 Net assets held for sale 11,704 (348) 11,356 Accounts payable and other liabilities (10,753) (1,776) (12,529) Borrowings (21,723) — (21,723) Deferred income taxes (6,497) 1,397 (5,100) Other net liabilities acquired (3,865) (114) (3,979) Noncontrolling interests (10,638) 230 (10,408) Goodwill 43,751 5,496 49,247 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 (1) As reported in our March 30, 2019 Form 10-Q. |
Business Acquisition, Summarized Financial Information of Acquiree [Table Text Block] | In addition, the table provides the impact of intercompany eliminations of transactions between the Company, TFCF and Hulu: Quarter Six Months TFCF (before intercompany eliminations): Revenues $ 3,483 $ 6,853 Net loss from continuing operations (201) (236) Hulu (before intercompany eliminations): Revenues $ 1,659 $ 3,284 Net loss from continuing operations (287) (603) Intercompany eliminations: Revenues $ (793) $ (1,392) Net loss from continuing operations (83) (131) |
Business Acquisition, Pro Forma Information | The following pro forma summary presents consolidated information of the Company for the six months ended March 30, 2019 as if the acquisition had occurred on October 1, 2017: Revenues $ 38,598 Net income 4,171 Net income attributable to Disney 4,240 Earnings per share attributable to Disney: Diluted $ 2.35 Basic $ 2.36 |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the six months ended March 28, 2020 are as follows: Media Parks, Experiences and Products Studio Direct-to-Consumer & International Total Balance at September 28, 2019 $ 33,423 $ 5,535 $ 17,797 $ 23,538 $ 80,293 Acquisitions (1) 133 2 15 10 160 Currency translation adjustments and other, net — — — (133) (133) Balance at March 28, 2020 $ 33,556 $ 5,537 $ 17,812 $ 23,415 $ 80,320 |
Other Income (Tables)
Other Income (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | Other income is as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Hulu gain $ — $ 4,917 $ — $ 4,917 Insurance recovery related to a legal matter — 46 — 46 Other income $ — $ 4,963 $ — $ 4,963 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Borrowings (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. March 28, September 28, Cash and cash equivalents $ 14,339 $ 5,418 Restricted cash included in: Other current assets 1 26 Other assets 38 11 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 14,378 $ 5,455 |
Borrowing Activity | During the six months ended March 28, 2020, the Company’s borrowing activity was as follows: September 28, Borrowings Payments Other March 28, Commercial paper with original maturities less than three months (1) $ 1,934 $ 1,598 $ — $ (11) $ 3,521 Commercial paper with original maturities greater than three months 3,408 5,920 (4,380) 14 4,962 U.S. dollar denominated notes 39,424 5,981 (1,008) (108) 44,289 Asia Theme Parks borrowings 1,114 39 — 32 1,185 Foreign currency denominated debt and other (2) 1,106 51 (40) 372 1,489 $ 46,986 $ 13,589 $ (5,428) $ 299 $ 55,446 (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. In March 2020, the Company refinanced two bank facilities with previously committed capacity of $6.0 billion and $2.25 billion, which were scheduled to expire in March 2020 and March 2021, respectively. The new bank facilities are for $5.25 billion and $3.0 billion and are scheduled to expire in March 2021 and 2025, respectively. At March 28, 2020, the Company’s bank facilities were as follows: Committed Capacity Unused Facility expiring March 2021 $ 5,250 $ — $ 5,250 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 Total $ 12,250 $ — $ 12,250 |
Interest Expense, net | Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 10) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Interest expense $ (365) $ (198) $ (727) $ (361) Interest and investment income 63 30 139 105 Net periodic pension and postretirement benefit costs (other than service costs) 2 25 5 50 Interest expense, net $ (300) $ (143) $ (583) $ (206) |
International Theme Parks (Tabl
International Theme Parks (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Consolidating Balance Sheets | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: March 28, 2020 September 28, 2019 Cash and cash equivalents $ 423 $ 655 Other current assets 104 102 Total current assets 527 757 Parks, resorts and other property 6,593 6,608 Other assets 180 9 Total assets $ 7,300 $ 7,374 Current liabilities $ 373 $ 447 Long-term borrowings 1,146 1,114 Other long-term liabilities 366 189 Total liabilities $ 1,885 $ 1,750 |
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 six months ended March 28, 2020: Revenues $ 1,274 Costs and expenses (1,691) Equity in the loss of investees (9) |
Produced and Acquired_License_2
Produced and Acquired/Licensed Content Costs and Advances (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Other Industries [Abstract] | |
Balances of Produced and Licensed Content Costs | Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of March 28, 2020 Predominantly Monetized Individually Predominantly Monetized as a Group Total Produced content Theatrical film costs Released, less amortization $ 3,515 $ 2,477 $ 5,992 Completed, not released 452 59 511 In-process 3,194 268 3,462 In development or pre-production 399 1 400 $ 7,560 $ 2,805 10,365 Television costs Released, less amortization $ 2,920 $ 6,377 $ 9,297 Completed, not released 387 533 920 In-process 155 1,789 1,944 In development or pre-production — 48 48 $ 3,462 $ 8,747 12,209 Licensed content - Television programming rights and advances 6,052 Total produced and licensed content $ 28,626 Current portion $ 1,869 Non-current portion $ 26,757 |
Amortization of Produced and Licensed Content Costs | Amortization of produced and licensed content is as follows: Quarter Ended March 28, 2020 Predominantly Predominantly Total Theatrical film costs $ 562 $ 270 $ 832 Television costs 740 1,081 1,821 Total produced content costs $ 1,302 $ 1,351 2,653 Television programming rights and advances 2,453 Total produced and licensed content costs (1) $ 5,106 Six Months Ended March 28, 2020 Predominantly Predominantly Total Theatrical film costs $ 1,088 $ 581 $ 1,669 Television costs 1,494 2,008 3,502 Total produced content costs $ 2,582 $ 2,589 5,171 Television programming rights and advances 6,184 Total produced and licensed content costs (1) $ 11,355 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statement of Income. |
Pension and Other Benefit Pro_2
Pension and Other Benefit Programs (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Six Months Ended Quarter Ended Six Months Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Service costs $ 102 $ 83 $ 205 $ 166 $ 2 $ 2 $ 5 $ 4 Other costs (benefits): Interest costs 133 144 266 289 14 17 28 33 Expected return on plan assets (273) (240) (546) (479) (15) (14) (29) (28) Amortization of previously deferred service costs 4 4 7 7 — — — — Recognized net actuarial loss 131 67 262 131 4 — 7 — Total other costs (benefits) (5) (25) (11) (52) 3 3 6 5 Net periodic benefit cost $ 97 $ 58 $ 194 $ 114 $ 5 $ 5 $ 11 $ 9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
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 Six Months Ended March 28, March 30, March 28, March 30, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,808 1,530 1,806 1,510 Weighted average dilutive impact of Awards 8 7 10 7 Weighted average number of common and common equivalent shares outstanding (diluted) 1,816 1,537 1,816 1,517 Awards excluded from diluted earnings per share 9 14 9 13 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Dividends Declared | The Company paid the following dividends in fiscal 2020 and 2019: Per Share Total Paid Payment Timing Related to Fiscal Period $0.88 $1.6 billion Second Quarter of Fiscal 2020 Second Half 2019 $0.88 $1.6 billion Fourth Quarter of Fiscal 2019 First Half 2019 $0.88 $1.3 billion Second Quarter of Fiscal 2019 Second Half 2018 |
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 Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ (12) $ (7,363) $ (1,004) $ (8,379) Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — 212 (43) (364) (195) Reclassifications of realized net (gains) losses to net income — (42) 138 — 96 Balance at March 28, 2020 $ — $ 158 $ (7,268) $ (1,368) $ (8,478) Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ 166 $ (4,254) $ (743) $ (4,831) Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period (5) (82) 19 15 (53) Reclassifications of realized net (gains) losses to net income — (22) 72 — 50 Balance at March 30, 2019 $ (5) $ 62 $ (4,163) $ (728) $ (4,834) Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ 129 $ (7,502) $ (1,086) $ (8,459) Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — 131 (43) (282) (194) Reclassifications of realized net (gains) losses to net income — (102) 277 — 175 Balance at March 28, 2020 $ — $ 158 $ (7,268) $ (1,368) $ (8,478) Six months ended fiscal 2019 Balance at September 29, 2018 $ 24 $ 177 $ (4,323) $ (727) $ (4,849) Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period (5) (55) 19 (1) (42) Reclassifications of realized net (gains) losses to net income — (61) 141 — 80 Reclassifications to retained earnings (24) 1 — — (23) Balance at March 30, 2019 $ (5) $ 62 $ (4,163) $ (728) $ (4,834) Unrecognized Foreign AOCI Market Value Adjustments Tax on AOCI Investments Cash Flow Hedges Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ 5 $ 1,724 $ 117 $ 1,846 Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — (51) 10 58 17 Reclassifications of realized net (gains) losses to net income — 10 (32) — (22) Balance at March 28, 2020 $ — $ (36) $ 1,702 $ 175 $ 1,841 Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ (38) $ 1,007 $ 80 $ 1,049 Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period 1 19 (6) (3) 11 Reclassifications of realized net (gains) losses to net income — 5 (17) — (12) Balance at March 30, 2019 $ 1 $ (14) $ 984 $ 77 $ 1,048 Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ (29) $ 1,756 $ 115 $ 1,842 Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — (31) 10 60 39 Reclassifications of realized net (gains) losses to net income — 24 (64) — (40) Balance at March 28, 2020 $ — $ (36) $ 1,702 $ 175 $ 1,841 Six months ended fiscal 2019 Balance at September 29, 2018 $ (9) $ (32) $ 1,690 $ 103 $ 1,752 Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period 1 13 (6) (10) (2) Reclassifications of realized net (gains) losses to net income — 14 (33) — (19) Reclassifications to retained earnings (1) 9 (9) (667) (16) (683) Balance at March 30, 2019 $ 1 $ (14) $ 984 $ 77 $ 1,048 Unrecognized Foreign AOCI Market Value Adjustments AOCI, after tax Investments Cash Flow Hedges Second quarter of fiscal 2020 Balance at December 28, 2019 $ — $ (7) $ (5,639) $ (887) $ (6,533) Quarter Ended March 28, 2020: Unrealized gains (losses) arising during the period — 161 (33) (306) (178) Reclassifications of realized net (gains) losses to net income — (32) 106 — 74 Balance at March 28, 2020 $ — $ 122 $ (5,566) $ (1,193) $ (6,637) Second quarter of fiscal 2019 Balance at December 29, 2018 $ — $ 128 $ (3,247) $ (663) $ (3,782) Quarter Ended March 30, 2019: Unrealized gains (losses) arising during the period (4) (63) 13 12 (42) Reclassifications of realized net (gains) losses to net income — (17) 55 — 38 Balance at March 30, 2019 $ (4) $ 48 $ (3,179) $ (651) $ (3,786) Six months ended fiscal 2020 Balance at September 28, 2019 $ — $ 100 $ (5,746) $ (971) $ (6,617) Six Months Ended March 28, 2020: Unrealized gains (losses) arising during the period — 100 (33) (222) (155) Reclassifications of realized net (gains) losses to net income — (78) 213 — 135 Balance at March 28, 2020 $ — $ 122 $ (5,566) $ (1,193) $ (6,637) Six months ended fiscal 2019 Balance at September 29, 2018 $ 15 $ 145 $ (2,633) $ (624) $ (3,097) Six Months Ended March 30, 2019: Unrealized gains (losses) arising during the period (4) (42) 13 (11) (44) Reclassifications of realized net (gains) losses to net income — (47) 108 — 61 Reclassifications to retained earnings (1) (15) (8) (667) (16) (706) Balance at March 30, 2019 $ (4) $ 48 $ (3,179) $ (651) $ (3,786) (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: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Income: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Cash flow hedges Primarily revenue $ 42 $ 22 $ 102 $ 61 Estimated tax Income taxes (10) (5) (24) (14) 32 17 78 47 Pension and postretirement medical expense Interest expense, net (138) (72) (277) (141) Estimated tax Income taxes 32 17 64 33 (106) (55) (213) (108) Total reclassifications for the period $ (74) $ (38) $ (135) $ (61) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (RSUs) | Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended Six Months Ended March 28, March 30, March 28, March 30, Stock options $ 28 $ 24 $ 49 $ 43 RSUs (1) 103 340 197 413 Total equity-based compensation expense (2) $ 131 $ 364 $ 246 $ 456 Equity-based compensation expense capitalized during the period $ 21 $ 22 $ 45 $ 38 (1) Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Summary of Right-of-Use Assets and Lease Liabilities on the Balance Sheet | The Company’s operating and finance right-of-use assets and lease liabilities as of March 28, 2020 are as follows: Right-of-use assets (1) Operating leases $ 4,211 Finance leases 353 Total right-of-use assets $ 4,564 Short-term lease liabilities (2) Operating leases $ 822 Finance leases 36 858 Long-term lease liabilities (3) Operating leases $ 2,969 Finance leases 282 3,251 Total lease liabilities $ 4,109 (1) Included in “Other assets” in the Condensed Consolidated Balance Sheets. Includes approximately $0.6 billion of long-term prepaid rent that was presented as a right-of-use asset upon adoption. (2) Included in “Accounts payable and other accrued liabilities” in the Condensed Consolidated Balance Sheets (3) Included in “Other long-term liabilities” in the Condensed Consolidated Balance Sheet |
Components of Lease Costs | The components of lease expense for the quarter and six months ended March 28, 2020 are as follows: Quarter Six Months Finance lease cost Amortization of right-of-use assets $ 15 $ 17 Interest on lease liabilities 4 8 Operating lease cost 229 452 Variable fees and other (1) 127 273 Total lease cost $ 375 $ 750 (1) Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. |
Summary of Cash Flows Arising From Lease Transactions | Cash paid during the quarter and six months ended March 28, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period are as follows: Quarter Six Months Operating cash flows for operating leases $ 270 $ 495 Operating cash flows for finance leases 4 8 Financing cash flows for finance leases 16 23 Total $ 290 $ 526 |
Lease Liability Maturities | Future minimum lease payments, as of March 28, 2020, are as follows: Operating Financing Fiscal year: 2020 $ 436 $ 30 2021 832 57 2022 645 56 2023 505 47 2024 381 38 Thereafter 1,817 514 Total undiscounted future lease payments 4,616 742 Less: Imputed interest (825) (424) Total reported lease liability $ 3,791 $ 318 |
Lease Liability Maturities | Future minimum lease payments, as of March 28, 2020, are as follows: Operating Financing Fiscal year: 2020 $ 436 $ 30 2021 832 57 2022 645 56 2023 505 47 2024 381 38 Thereafter 1,817 514 Total undiscounted future lease payments 4,616 742 Less: Imputed interest (825) (424) Total reported lease liability $ 3,791 $ 318 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable operating leases and non-cancelable capital leases at September 28, 2019, presented based on our historical accounting prior to the adoption of the new lease guidance, are as follows: Operating Capital Fiscal year: 2020 $ 982 $ 19 2021 849 20 2022 670 19 2023 532 17 2024 407 16 Thereafter 2,491 458 Total minimum obligations $ 5,931 549 Less: amount representing interest (398) Present value of net minimum obligations $ 151 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under non-cancelable operating leases and non-cancelable capital leases at September 28, 2019, presented based on our historical accounting prior to the adoption of the new lease guidance, are as follows: Operating Capital Fiscal year: 2020 $ 982 $ 19 2021 849 20 2022 670 19 2023 532 17 2024 407 16 Thereafter 2,491 458 Total minimum obligations $ 5,931 549 Less: amount representing interest (398) Present value of net minimum obligations $ 151 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 Level 1 Level 2 Level 3 Total Assets Investments $ 7 $ — $ — $ 7 Derivatives Interest rate — 466 — 466 Foreign exchange — 994 — 994 Other — 13 — 13 Liabilities Derivatives Interest rate — (2) — (2) Foreign exchange — (734) — (734) Other — (29) — (29) Total recorded at fair value $ 7 $ 708 $ — $ 715 Fair value of borrowings $ — $ 56,510 $ 1,328 $ 57,838 Fair Value Measurement at September 28, 2019 Level 1 Level 2 Level 3 Total Assets Investments $ 13 $ — $ — $ 13 Derivatives Interest rate — 89 — 89 Foreign exchange — 771 — 771 Other — 1 — 1 Liabilities Derivatives Interest rate — (93) — (93) Foreign exchange — (544) — (544) Other — (4) — (4) Total recorded at fair value $ 13 $ 220 $ — $ 233 Fair value of borrowings $ — $ 48,709 $ 1,249 $ 49,958 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 389 $ 302 $ (95) $ (287) Interest rate — 466 — — Other 1 — (21) (8) Derivatives not designated as hedges Foreign exchange 105 198 (141) (211) Interest rate — — — (2) Other 12 — — — Gross fair value of derivatives 507 966 (257) (508) Counterparty netting (211) (492) 225 478 Cash collateral (received)/paid (214) (229) — 6 Net derivative positions $ 82 $ 245 $ (32) $ (24) As of September 28, 2019 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 302 $ 241 $ (67) $ (244) Interest rate — 89 (82) — Other 1 — (3) (1) Derivatives not designated as hedges Foreign exchange 65 163 (107) (126) Interest rate — — — (11) Gross fair value of derivatives 368 493 (259) (382) Counterparty netting (231) (345) 258 318 Cash collateral (received)/paid (55) (6) — 7 Net derivative positions $ 82 $ 142 $ (1) $ (57) |
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 March 28, 2020 and September 28, 2019: Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) March 28, 2020 September 28, 2019 March 28, 2020 September 28, 2019 Borrowings: Current $ 1,126 $ 1,121 $ 2 $ (3) Long-term 10,936 9,562 464 34 $ 12,062 $ 10,683 $ 466 $ 31 (1) Includes $36 million and $37 million of gains on terminated interest rate swaps as of March 28, 2020 and September 28, 2019, 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 Six Months Ended March 28, 2020 March 30, March 28, March 30, 2019 Gain (loss) on: Pay-floating swaps $ 542 $ 117 $ 429 $ 234 Borrowings hedged with pay-floating swaps (542) (117) (429) (234) Benefit (expense) associated with interest accruals on pay-floating swaps (7) (18) (19) (32) |
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 six months ended March 28, 2020: Quarter Ended Gain (loss) recognized in Other Comprehensive Income $ 234 Gain (loss) reclassified from AOCI into the Statement of Income (1) 43 Six Months Ended: Gain/(loss) recognized in Other Comprehensive Income $ 149 Gain/(loss) reclassified from AOCI into the Statement of Income (1) 103 (1) Primarily recorded in revenue. |
Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the six months ended March 28, 2020 and March 30, 2019 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: March 28, March 30, March 28, March 30, March 28, March 30, Net gains (losses) on foreign currency denominated assets and liabilities $ (241) $ 1 $ 64 $ (12) $ 8 $ — Net gains (losses) on foreign exchange risk management contracts not designated as hedges 239 (4) (62) 11 (20) (4) Net gains (losses) $ (2) $ (3) $ 2 $ (1) $ (12) $ (4) Six Months Ended: Net gains (losses) on foreign currency denominated assets and liabilities $ (172) $ (26) $ 52 $ 28 $ (7) $ 15 Net gains (losses) on foreign exchange risk management contracts not designated as hedges 159 20 (52) (28) (3) (22) Net gains (losses) $ (13) $ (6) $ — $ — $ (10) $ (7) |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 6 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The changes in restructuring reserves related to TFCF integration for fiscal 2019 and the six months ended March 28, 2020 are as follows: Balance at September 29, 2018 $ — Additions in fiscal 2019: Media Networks 90 Parks, Experiences and Products 11 Studio Entertainment 197 Direct-to-Consumer & International 426 Corporate 182 Total additions in fiscal 2019 906 Payments in fiscal 2019 (230) Balance at September 28, 2019 $ 676 Additions in fiscal 2020: Media Networks 18 Parks, Experiences and Products 8 Studio Entertainment 50 Direct-to-Consumer & International 163 Corporate 32 Total additions in fiscal 2020 271 Payments in fiscal 2020 (412) Balance at March 28, 2020 $ 535 |
Principles of Consolidation Pri
Principles of Consolidation Principles of Consolidation - Additional Information (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 | May 13, 2019 | Mar. 20, 2019 | Sep. 25, 2017 |
Schedule of Equity Method Investments | |||||
Redeemable Noncontrolling Interests | $ 9,096 | $ 8,963 | |||
BAMTech, LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 75.00% | ||||
MLB | BAMTech, LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 15.00% | ||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 683 | ||||
MLB | BAMTech, LLC | Minimum | |||||
Schedule of Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 563 | ||||
Preferred Stock Return on NCI, Accretion Percentage | 8.00% | ||||
NHL | BAMTech, LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 500 | ||||
NHL | BAMTech, LLC | Minimum | |||||
Schedule of Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 300 | ||||
NHL | BAMTech, LLC | Maximum | |||||
Schedule of Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 350 | ||||
Hulu LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 67.00% | 67.00% | 60.00% | ||
Hulu LLC | Equity Interest Held by NBC Universal | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 33.00% | ||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 27,500 | ||||
Redeemable Noncontrolling Interests | $ 8,000 |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Segment Reporting Information | ||||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | ||
Segment operating income | 2,416 | 3,816 | 6,418 | 7,471 | ||
Media Networks | ||||||
Segment Reporting Information | ||||||
Revenues | 7,257 | 5,683 | 14,618 | 11,604 | ||
Segment operating income | 2,375 | 2,230 | 4,005 | 3,560 | ||
Parks, Experiences and Products | ||||||
Segment Reporting Information | ||||||
Revenues | 5,543 | [1] | 6,171 | [1] | 12,939 | 12,995 |
Segment operating income | 639 | [1] | 1,506 | [1] | 2,977 | 3,658 |
Studio Entertainment | ||||||
Segment Reporting Information | ||||||
Revenues | 2,539 | [1] | 2,157 | [1] | 6,303 | 3,981 |
Segment operating income | 466 | [1] | 506 | [1] | 1,414 | 815 |
Direct-to-Consumer & International | ||||||
Segment Reporting Information | ||||||
Revenues | 4,123 | 1,145 | 8,110 | 2,063 | ||
Segment operating income | (812) | (385) | (1,505) | (521) | ||
Eliminations | ||||||
Segment Reporting Information | ||||||
Revenues | (1,453) | [2] | (234) | [2] | (3,103) | (418) |
Segment operating income | $ (252) | [2] | $ (41) | [2] | $ (473) | $ (41) |
[1] | The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. | |||||
[2] | Intersegment eliminations are as follows: Quarter Ended Six Months Ended (in millions) March 28, March 30, March 28, March 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (58) $ (13) $ (111) $ (34) Content transactions with Direct-to-Consumer & International (461) (82) (1,146) (100) Media Networks: Content transactions with Direct-to-Consumer & International (934) (139) (1,846) (284) $ (1,453) $ (234) $ (3,103) $ (418) Operating income: Studio Entertainment: Content transactions with Media Networks $ (10) $ 5 $ (10) $ 5 Content transactions with Direct-to-Consumer & International (157) (46) (273) (44) Media Networks: Content transactions with Direct-to-Consumer & International (85) — (190) (2) $ (252) $ (41) $ (473) $ (41) |
Financial Information by Oper_2
Financial Information by Operating Segments- Intersegment Eliminations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Segment Reporting Information | ||||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | ||
Studio Entertainment | ||||||
Segment Reporting Information | ||||||
Revenues | 2,539 | [1] | 2,157 | [1] | 6,303 | 3,981 |
Parks, Experiences and Products | ||||||
Segment Reporting Information | ||||||
Revenues | 5,543 | [1] | 6,171 | [1] | 12,939 | 12,995 |
Intersegment Eliminations | ||||||
Segment Reporting Information | ||||||
Revenues | (793) | (1,392) | ||||
Intersegment Eliminations | Studio Entertainment | ||||||
Segment Reporting Information | ||||||
Revenues | 117 | 126 | 301 | 280 | ||
Intersegment Eliminations | Parks, Experiences and Products | ||||||
Segment Reporting Information | ||||||
Revenues | $ (117) | $ (126) | $ (301) | $ (280) | ||
[1] | The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. |
Description of Business and Seg
Description of Business and Segment Information Financial Information by Operating Segments (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information | ||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 |
Segment operating income | 2,416 | 3,816 | 6,418 | 7,471 |
Media Networks | ||||
Segment Reporting Information | ||||
Revenues | 7,257 | 5,683 | 14,618 | 11,604 |
Segment operating income | 2,375 | 2,230 | 4,005 | 3,560 |
Direct-to-Consumer & International | ||||
Segment Reporting Information | ||||
Revenues | 4,123 | 1,145 | 8,110 | 2,063 |
Segment operating income | (812) | (385) | (1,505) | (521) |
Studio Entertainment intersegment content transactions | Media Networks | ||||
Segment Reporting Information | ||||
Revenues | (58) | (13) | (111) | (34) |
Segment operating income | (10) | 5 | (10) | 5 |
Studio Entertainment intersegment content transactions | Direct-to-Consumer & International | ||||
Segment Reporting Information | ||||
Revenues | (461) | (82) | (1,146) | (100) |
Segment operating income | (157) | (46) | (273) | (44) |
Media Networks intersegment content transactions | Direct-to-Consumer & International | ||||
Segment Reporting Information | ||||
Revenues | (934) | (139) | (1,846) | (284) |
Segment operating income | (85) | 0 | (190) | (2) |
Intersegment transactions | ||||
Segment Reporting Information | ||||
Revenues | (1,453) | (234) | (3,103) | (418) |
Segment operating income | $ (252) | $ (41) | $ (473) | $ (41) |
Equity in the Income of Investe
Equity in the Income of Investees included in Segment Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Other than Temporary Impairment | [1] | $ 0 | $ (353) | $ 0 | $ (353) |
Amortization of Intangible Assets Held by Equity Investees | (8) | 0 | (16) | 0 | |
Equity in the income / (loss) of investees | 135 | (309) | 359 | (233) | |
Media Networks | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees | 179 | 182 | 372 | 361 | |
Parks, Experiences and Products | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees | (6) | 0 | (9) | (12) | |
Direct-to-Consumer & International | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees | (30) | (138) | 12 | (229) | |
Total Segments | |||||
Schedule of Equity Method Investments | |||||
Equity in the income / (loss) of investees | $ 143 | $ 44 | $ 375 | $ 120 | |
[1] | Reflects the impairment of Vice Group Holdings, Inc. |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | |||||
Segment operating income | $ 2,416 | $ 3,816 | $ 6,418 | $ 7,471 | |
Corporate and unallocated shared expenses | (188) | (279) | (425) | (440) | |
Restructuring and impairment charges | (145) | (662) | (295) | (662) | |
Other income | 0 | 4,963 | 0 | 4,963 | |
Interest expense, net | (300) | (143) | (583) | (206) | |
Amortization of Intangible Assets | [1] | (723) | (105) | (1,423) | (105) |
Equity Method Investment, Other than Temporary Impairment | [2] | 0 | (353) | 0 | (353) |
Income from continuing operations before income taxes | $ 1,060 | $ 7,237 | $ 3,692 | $ 10,668 | |
[1] | For the quarter ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $498 million, $217 million and $8 million, respectively. For the six months ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $984 million, $423 million and $16 million, respectively. For the quarter and six months ended March 30, 2019 amortization of intangible assets and step-up of film and television costs were $73 million and $32 million, respectively. | ||||
[2] | Reflects the impairment of Vice Group Holdings, Inc. |
Description of Business and S_2
Description of Business and Segment Information Amortization of Intangible Assets and Fair Value Step-Up (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Amortization of Intangible Assets | [1] | $ 723 | $ 105 | $ 1,423 | $ 105 |
Amortization of Intangible Assets Held by Equity Investees | (8) | 0 | (16) | 0 | |
TFCF and Hulu | |||||
Amortization of Intangible Assets | 498 | 73 | 984 | 73 | |
Amortization | 217 | $ 32 | 423 | $ 32 | |
Amortization of Intangible Assets Held by Equity Investees | $ 8 | $ 16 | |||
[1] | For the quarter ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $498 million, $217 million and $8 million, respectively. For the six months ended March 28, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $984 million, $423 million and $16 million, respectively. For the quarter and six months ended March 30, 2019 amortization of intangible assets and step-up of film and television costs were $73 million and $32 million, respectively. |
Disaggregation of Revenue by Ma
Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | ||
Affiliate fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,517 | 3,634 | 8,944 | 7,032 | ||
Advertising | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,785 | 2,079 | 6,177 | 4,521 | ||
Theme park admissions | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,554 | 1,768 | 3,621 | 3,701 | ||
Resort and vacations | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,377 | 1,503 | 3,008 | 3,034 | ||
Retail and wholesale sales of merchandise, food and beverage | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,584 | 1,768 | 3,897 | 3,890 | ||
TV/SVOD distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,708 | 1,264 | 3,335 | 2,441 | ||
Theatrical distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 603 | 752 | 2,011 | 1,125 | ||
Merchandise licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 716 | 776 | 1,772 | 1,686 | ||
Subscription fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,796 | 153 | 3,122 | 186 | ||
Home entertainment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 446 | 291 | 984 | 744 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 923 | 934 | 1,996 | 1,865 | ||
Media Networks | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 7,257 | 5,683 | 14,618 | 11,604 | ||
Media Networks | Affiliate fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 3,746 | 3,234 | 7,394 | 6,309 | ||
Media Networks | Advertising | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,703 | 1,624 | 3,726 | 3,647 | ||
Media Networks | TV/SVOD distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,700 | 745 | 3,238 | 1,467 | ||
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 | Subscription fees | ||||||
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 | 108 | 80 | 260 | 181 | ||
Parks, Experiences and Products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 5,543 | [1] | 6,171 | [1] | 12,939 | 12,995 |
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 | 1 | 1 | 3 | 3 | ||
Parks, Experiences and Products | Theme park admissions | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,554 | 1,768 | 3,621 | 3,701 | ||
Parks, Experiences and Products | Resort and vacations | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,377 | 1,503 | 3,008 | 3,034 | ||
Parks, Experiences and Products | Retail and wholesale sales of merchandise, food and beverage | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,584 | 1,768 | 3,897 | 3,890 | ||
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 | 591 | 637 | 1,455 | 1,378 | ||
Parks, Experiences and Products | Subscription fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
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 | 436 | 494 | 955 | 989 | ||
Studio Entertainment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,539 | [1] | 2,157 | [1] | 6,303 | 3,981 |
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 | 1,112 | 718 | 2,474 | 1,323 | ||
Studio Entertainment | Theatrical distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 603 | 752 | 2,011 | 1,125 | ||
Studio Entertainment | Merchandise licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 117 | 126 | 301 | 280 | ||
Studio Entertainment | Subscription fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Studio Entertainment | Home entertainment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 427 | 270 | 938 | 695 | ||
Studio Entertainment | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 280 | 291 | 579 | 558 | ||
Direct-to-Consumer & International | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,123 | 1,145 | 8,110 | 2,063 | ||
Direct-to-Consumer & International | Affiliate fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 957 | 412 | 1,910 | 735 | ||
Direct-to-Consumer & International | Advertising | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,081 | 454 | 2,448 | 871 | ||
Direct-to-Consumer & International | TV/SVOD distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 163 | 23 | 366 | 57 | ||
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 | 8 | 13 | 16 | 28 | ||
Direct-to-Consumer & International | Subscription fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,796 | 153 | 3,122 | 186 | ||
Direct-to-Consumer & International | Home entertainment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 19 | 21 | 46 | 49 | ||
Direct-to-Consumer & International | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 99 | 69 | 202 | 137 | ||
Eliminations | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (1,453) | [2] | (234) | [2] | (3,103) | (418) |
Eliminations | Affiliate fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (186) | (12) | (360) | (12) | ||
Eliminations | Advertising | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Eliminations | TV/SVOD distribution licensing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (1,267) | (222) | (2,743) | (406) | ||
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 | Subscription fees | ||||||
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] | The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. | |||||
[2] | Intersegment eliminations are as follows: Quarter Ended Six Months Ended (in millions) March 28, March 30, March 28, March 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (58) $ (13) $ (111) $ (34) Content transactions with Direct-to-Consumer & International (461) (82) (1,146) (100) Media Networks: Content transactions with Direct-to-Consumer & International (934) (139) (1,846) (284) $ (1,453) $ (234) $ (3,103) $ (418) Operating income: Studio Entertainment: Content transactions with Media Networks $ (10) $ 5 $ (10) $ 5 Content transactions with Direct-to-Consumer & International (157) (46) (273) (44) Media Networks: Content transactions with Direct-to-Consumer & International (85) — (190) (2) $ (252) $ (41) $ (473) $ (41) |
Disaggregation of Revenue by Ge
Disaggregation of Revenue by Geographical Markets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | ||
United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 13,837 | 11,316 | 29,163 | 23,245 | ||
Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,884 | 1,516 | 4,380 | 3,099 | ||
Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,498 | 1,496 | 3,584 | 2,736 | ||
Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 790 | 594 | 1,740 | 1,145 | ||
Media Networks | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 7,257 | 5,683 | 14,618 | 11,604 | ||
Media Networks | United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 6,805 | 5,438 | 13,746 | 11,126 | ||
Media Networks | Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 383 | 148 | 590 | 290 | ||
Media Networks | Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 49 | 69 | 195 | 132 | ||
Media Networks | Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 20 | 28 | 87 | 56 | ||
Parks, Experiences and Products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 5,543 | [1] | 6,171 | [1] | 12,939 | 12,995 |
Parks, Experiences and Products | United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,567 | 4,689 | 10,275 | 9,831 | ||
Parks, Experiences and Products | Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 523 | 631 | 1,415 | 1,485 | ||
Parks, Experiences and Products | Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 405 | 800 | 1,137 | 1,562 | ||
Parks, Experiences and Products | Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 48 | 51 | 112 | 117 | ||
Studio Entertainment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,539 | [1] | 2,157 | [1] | 6,303 | 3,981 |
Studio Entertainment | United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,264 | 1,074 | 3,245 | 2,112 | ||
Studio Entertainment | Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 714 | 576 | 1,687 | 989 | ||
Studio Entertainment | Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 399 | 388 | 1,024 | 674 | ||
Studio Entertainment | Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 162 | 119 | 347 | 206 | ||
Direct-to-Consumer & International | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,123 | 1,145 | 8,110 | 2,063 | ||
Direct-to-Consumer & International | United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,408 | 320 | 4,568 | 545 | ||
Direct-to-Consumer & International | Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 436 | 184 | 922 | 373 | ||
Direct-to-Consumer & International | Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 657 | 245 | 1,364 | 379 | ||
Direct-to-Consumer & International | Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 622 | 396 | 1,256 | 766 | ||
Eliminations | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (1,453) | [2] | (234) | [2] | (3,103) | (418) |
Eliminations | United States and Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (1,207) | (205) | (2,671) | (369) | ||
Eliminations | Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (172) | (23) | (234) | (38) | ||
Eliminations | Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | (12) | (6) | (136) | (11) | ||
Eliminations | Latin America | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ (62) | $ 0 | $ (62) | $ 0 | ||
[1] | The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $117 million and $126 million for the quarters ended March 28, 2020 and March 30, 2019, respectively, and $301 million and $280 million for the six months ended March 28, 2020 and March 30, 2019, respectively. | |||||
[2] | Intersegment eliminations are as follows: Quarter Ended Six Months Ended (in millions) March 28, March 30, March 28, March 30, Revenues: Studio Entertainment: Content transactions with Media Networks $ (58) $ (13) $ (111) $ (34) Content transactions with Direct-to-Consumer & International (461) (82) (1,146) (100) Media Networks: Content transactions with Direct-to-Consumer & International (934) (139) (1,846) (284) $ (1,453) $ (234) $ (3,103) $ (418) Operating income: Studio Entertainment: Content transactions with Media Networks $ (10) $ 5 $ (10) $ 5 Content transactions with Direct-to-Consumer & International (157) (46) (273) (44) Media Networks: Content transactions with Direct-to-Consumer & International (85) — (190) (2) $ (252) $ (41) $ (473) $ (41) |
Contract with Customer, Asset a
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Contract with Customer, Asset, before Allowance for Credit Loss | $ 112 | $ 150 |
Accounts Receivable, before Allowance for Credit Loss, Current | 12,322 | 12,755 |
Accounts Receivable, before Allowance for Credit Loss, Noncurrent | 1,737 | 1,962 |
Contract with Customer, Asset, Allowance for Credit Loss | 535 | 375 |
Contract with Customer, Liability, Current | 4,276 | 4,050 |
Contract with Customer, Liability, Noncurrent | $ 636 | $ 619 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 733 | $ 363 | $ 771 | $ 408 | |
Revenue, Remaining Performance Obligation, Amount | 17,000 | 17,000 | |||
Contract with Customer, Asset, Allowance for Credit Loss | 535 | 535 | $ 375 | ||
Contract with Customer, Liability, Revenue Recognized | 800 | $ 700 | 2,900 | $ 2,300 | |
Receivables - current/non-current | 14,100 | 14,100 | |||
Accounts Receivable, Allowance for Credit Loss | 500 | 500 | |||
Syndicated programming | |||||
Long-term receivables, net of allowance for credit losses | 1,100 | 1,100 | |||
Mortgage Receivable | |||||
Long-term receivables, net of allowance for credit losses | 800 | 800 | |||
Unsatisfied performance obligation recognized in fiscal 2020 | |||||
Revenue, Remaining Performance Obligation, Amount | 4,000 | 4,000 | |||
Unsatisfied performance obligation recognized in fiscal 2021 | |||||
Revenue, Remaining Performance Obligation, Amount | 5,000 | 5,000 | |||
Unsatisfied performance obligation recognized in fiscal 2022 | |||||
Revenue, Remaining Performance Obligation, Amount | 4,000 | 4,000 | |||
Unsatisfied performance obligation recognized thereafter | |||||
Revenue, Remaining Performance Obligation, Amount | $ 4,000 | $ 4,000 |
Acquisitions Acquisition Fair V
Acquisitions Acquisition Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 | Mar. 20, 2019 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 80,320 | $ 80,293 | ||
Initial Allocation | TFCF | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | [1] | $ 25,666 | ||
Receivables | [1] | 4,746 | ||
Film and Television Costs | [1] | 20,120 | ||
Investments | [1] | 1,471 | ||
Intangible Assets | [1] | 20,385 | ||
Net Assets Held for Sale | [1] | 11,704 | ||
Accounts Payable and Other Liabilities | [1] | (10,753) | ||
Borrowings | [1] | (21,723) | ||
Deferred Income Taxes | [1] | (6,497) | ||
Other Net Liabilities Acquired | [1] | (3,865) | ||
Noncontrolling Interest | [1] | (10,638) | ||
Goodwill | [1] | 43,751 | ||
Fair Value of Net Assets Acquired | [1] | 74,367 | ||
Parents Previously Held Equity Interest in Investee Now Consolidated | [1] | (4,860) | ||
Total Purchase Price | [1] | 69,507 | ||
Valuation Adjustments | TFCF | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 35 | |||
Receivables | 350 | |||
Film and Television Costs | (2,380) | |||
Investments | (509) | |||
Intangible Assets | (2,504) | |||
Net Assets Held for Sale | (348) | |||
Accounts Payable and Other Liabilities | (1,776) | |||
Borrowings | 0 | |||
Deferred Income Taxes | 1,397 | |||
Other Net Liabilities Acquired | (114) | |||
Noncontrolling Interest | 230 | |||
Goodwill | 5,496 | |||
Fair Value of Net Assets Acquired | (123) | |||
Parents Previously Held Equity Interest in Investee Now Consolidated | 123 | |||
Total Purchase Price | 0 | |||
Final Allocation | TFCF | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 25,701 | |||
Receivables | 5,096 | |||
Film and Television Costs | 17,740 | |||
Investments | 962 | |||
Intangible Assets | 17,881 | |||
Net Assets Held for Sale | 11,356 | |||
Accounts Payable and Other Liabilities | (12,529) | |||
Borrowings | (21,723) | |||
Deferred Income Taxes | (5,100) | |||
Other Net Liabilities Acquired | (3,979) | |||
Noncontrolling Interest | (10,408) | |||
Goodwill | 49,247 | |||
Fair Value of Net Assets Acquired | 74,244 | |||
Parents Previously Held Equity Interest in Investee Now Consolidated | (4,737) | |||
Total Purchase Price | $ 69,507 | |||
[1] | As reported in our March 30, 2019 Form 10-Q. |
Acquisitions Summarized Financi
Acquisitions Summarized Financial Information of Acquiree (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 |
Intersegment Eliminations | ||||
Revenues | (793) | (1,392) | ||
Net Income (loss) from Continuing Operations | (83) | (131) | ||
TFCF | ||||
Revenues | 3,483 | 6,853 | ||
Net Income (loss) from Continuing Operations | (201) | (236) | ||
Hulu LLC | ||||
Revenues | 1,659 | 3,284 | ||
Net Income (loss) from Continuing Operations | $ (287) | $ (603) |
Pro Forma Financial Information
Pro Forma Financial Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Mar. 30, 2019USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Revenues | $ 38,598 |
Business Acquisition, Pro Forma Net Income (Loss) | 4,171 |
Business Acquisition, Pro Forma Net Income (Loss) Attributable to Parent | $ 4,240 |
Pro Forma Earnings Per Share, Diluted | $ / shares | $ 2.35 |
Pro Forma Earnings Per Share, Basic | $ / shares | $ 2.36 |
Acquisitions Changes in Carry A
Acquisitions Changes in Carry Amount of Goodwill (Details) $ in Millions | 6 Months Ended | |
Mar. 28, 2020USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 80,293 | |
Acquisitions | 160 | [1] |
Other, net | (133) | |
Ending balance | 80,320 | |
Media Networks | ||
Goodwill [Line Items] | ||
Beginning balance | 33,423 | |
Acquisitions | 133 | [1] |
Other, net | 0 | |
Ending balance | 33,556 | |
Parks, Experiences and Products | ||
Goodwill [Line Items] | ||
Beginning balance | 5,535 | |
Acquisitions | 2 | [1] |
Other, net | 0 | |
Ending balance | 5,537 | |
Studio Entertainment | ||
Goodwill [Line Items] | ||
Beginning balance | 17,797 | |
Acquisitions | 15 | [1] |
Other, net | 0 | |
Ending balance | 17,812 | |
Direct-to-Consumer & International | ||
Goodwill [Line Items] | ||
Beginning balance | 23,538 | |
Acquisitions | 10 | [1] |
Other, net | (133) | |
Ending balance | $ 23,415 | |
[1] | Reflects updates to allocation of purchase price for the acquisition of TFCF. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 30, 2019 | Mar. 20, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 28, 2019 | ||
Business Acquisition And Equity Method Investments | |||||||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 | |||||
Net Income from Continuing Operations | 535 | 5,590 | 2,708 | 8,376 | |||||
Restricted Stock or Unit Expense | $ 103 | [1] | 340 | [1] | $ 197 | 413 | |||
Hulu LLC | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Equity Method Investment, Ownership Percentage | 60.00% | 67.00% | 67.00% | 67.00% | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 4,900 | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 30.00% | ||||||||
Equity Interest Held by TFCF [Member] | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 10,800 | ||||||||
Equity Interest Held by TFCF [Member] | Sky plc | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Equity Method Investment, Other Transaction Details | 39.00% | ||||||||
Equity Interest Held by TFCF [Member] | Hulu LLC | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 30.00% | ||||||||
Pro Forma | Discontinued Operations [Member] | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 300 | ||||||||
TFCF | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Business Combination, Consideration Transferred | $ 69,500 | ||||||||
Payments to Acquire Businesses, Gross | 35,700 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 33,800 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 307,000 | ||||||||
Business Acquisition, Share Price | $ 110 | ||||||||
Revenues | $ 3,483 | $ 6,853 | |||||||
Restricted Stock or Unit Expense | $ 259 | 259 | |||||||
TFCF | Pro Forma | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 300 | ||||||||
TFCF | Pro Forma | Acceleration | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Restricted Stock or Unit Expense | $ 200 | ||||||||
TFCF and Hulu | |||||||||
Business Acquisition And Equity Method Investments | |||||||||
Revenues | $ 518 | ||||||||
Net Income from Continuing Operations | $ 115 | ||||||||
[1] | Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Schedule of Other Income and Expense [Line Items] | ||||
Hulu Gain | $ 0 | $ 4,917 | $ 0 | $ 4,917 |
Insurance recovery related to a legal matter | 0 | 46 | 0 | 46 |
Other Income | $ 0 | $ 4,963 | $ 0 | $ 4,963 |
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 | Mar. 28, 2020 | Sep. 28, 2019 | Mar. 30, 2019 | Sep. 29, 2018 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 14,339 | $ 5,418 | ||
Restricted Cash and Investments, Current | 1 | 26 | ||
Restricted Cash and Investments, Noncurrent | 38 | 11 | ||
Cash, Cash Equivalents and Restricted Cash in the Statement of Cash Flows | $ 14,378 | $ 5,455 | $ 10,222 | $ 4,155 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 6 Months Ended | |
Mar. 28, 2020USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 46,986 | |
Borrowings | 13,589 | |
Payments | (5,428) | |
Other Activity | 299 | |
Borrowings ending balance | 55,446 | |
Commercial paper with original maturities less than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,934 | |
Borrowings | 1,598 | [1] |
Payments | 0 | [1] |
Other Activity | (11) | |
Borrowings ending balance | 3,521 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 3,408 | |
Borrowings | 5,920 | |
Payments | (4,380) | |
Other Activity | 14 | |
Borrowings ending balance | 4,962 | |
U.S. dollar denominated notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 39,424 | |
Borrowings | 5,981 | |
Payments | (1,008) | |
Other Activity | (108) | |
Borrowings ending balance | 44,289 | |
Asia International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,114 | |
Borrowings | 39 | |
Payments | 0 | |
Other Activity | 32 | |
Borrowings ending balance | 1,185 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,106 | |
Borrowings | 51 | |
Payments | (40) | |
Other Activity | 372 | [2] |
Borrowings ending balance | $ 1,489 | |
[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 | Mar. 28, 2020USD ($) |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 12,250 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 5,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 5,250 |
Existing Line Of Credit 1 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 4,000 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 3,000 |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash and Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Interest expense | $ (365) | $ (198) | $ (727) | $ (361) |
Interest and investment income | 63 | 30 | 139 | 105 |
Net periodic pension and postretirement benefit costs other than service costs | 2 | 25 | 5 | 50 |
Interest expense, net | $ (300) | $ (143) | $ (583) | $ (206) |
Cash, Cash Equivalents, Restr_5
Cash, Cash Equivalents, Restricted Cash and Borrowings - Additional Information (Details) $ in Millions, $ in Millions | Apr. 30, 2020USD ($) | Mar. 30, 2020CAD ($) | Mar. 28, 2020USD ($) | Mar. 28, 2020USD ($) | Mar. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 | $ 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 | $ 1,000 | $ 1,000 | |||
Foreign Currency Denominated Canadian Debt [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 1,300 | $ 925 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.057% | 3.057% | |||
Debt Instrument, Maturity Date | Mar. 31, 2027 | ||||
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, Initial Borrowing Capacity | 6,000 | $ 6,000 | |||
Line of Credit Facility, Increase (Decrease), Net | 5,250 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,250 | $ 5,250 | |||
Line of Credit Facility, Expiration Date | Mar. 31, 2021 | ||||
Existing Line Of Credit 1 | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 | $ 4,000 | |||
Line of Credit Facility, Expiration Date | Mar. 31, 2023 | ||||
Existing Line of Credit 2 | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Initial Borrowing Capacity | 2,250 | $ 2,250 | |||
Line of Credit Facility, Increase (Decrease), Net | 3,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 | $ 3,000 | |||
Line of Credit Facility, Expiration Date | Mar. 31, 2025 | ||||
Line of Credit 4 | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||
Debt Instrument, Maturity Date | Apr. 30, 2021 | ||||
Line of Credit 4 | Minimum | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable Spread Above LIBOR | 1.025% | ||||
Line of Credit 4 | Maximum | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable Spread Above LIBOR | 1.80% | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | $ 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 | $ 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.48% | 3.48% | |||
Disney Cruise Line | Credit Facility available beginning May 2022 | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | $ 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | 3.72% | |||
Disney Cruise Line | Credit Facility available beginning April 2023 | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | $ 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.74% | 3.74% |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of Asia Theme Parks (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | $ 14,339 | $ 5,418 |
Other current assets | 1,003 | 979 |
Total current assets | 33,274 | 28,124 |
Parks, resorts and other property | 32,151 | 31,603 |
Other assets | 8,575 | 4,715 |
Total assets | 206,294 | 193,984 |
Current liabilities | 35,473 | 31,341 |
Long-term borrowings | 42,770 | 38,129 |
Asia International Theme Parks | ||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | 423 | 655 |
Other current assets | 104 | 102 |
Total current assets | 527 | 757 |
Parks, resorts and other property | 6,593 | 6,608 |
Other assets | 180 | 9 |
Total assets | 7,300 | 7,374 |
Current liabilities | 373 | 447 |
Long-term borrowings | 1,146 | 1,114 |
Other long-term liabilities | 366 | 189 |
Total liabilities | $ 1,885 | $ 1,750 |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 |
Cost and expenses | (16,639) | (11,534) | (34,656) | (23,419) |
Equity in the loss of investees | $ 135 | $ (309) | 359 | $ (233) |
International Theme Parks | ||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
Revenues | 1,274 | |||
Cost and expenses | (1,691) | |||
Equity in the loss of investees | $ (9) |
International Theme Parks - Add
International Theme Parks - Additional Information (Details) ¥ in Millions, $ in Millions, $ in Billions | 6 Months Ended | |||
Mar. 28, 2020HKD ($) | Mar. 28, 2020CNY (¥) | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | |
Noncontrolling Interest | ||||
Net Cash Provided by (Used in) Financing Activities | $ 6,616 | $ 12,696 | ||
Maximum | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 1.63% | 1.63% | 1.63% | |
Asia International Theme Parks | ||||
Noncontrolling Interest | ||||
Royalties And Management Fees | $ 41 | |||
International Theme Parks | ||||
Noncontrolling Interest | ||||
Net Cash Provided by Operating Activities | 148 | |||
Net Cash Used in Investing Activities | 439 | |||
Net Cash Provided by (Used in) Financing Activities | 92 | |||
Hong Kong Disneyland Resort | Loans | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount | 146 | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 97 | |||
Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 | |
Hong Kong Disneyland Resort | Loans | HIBOR | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 2.00% | 2.00% | 2.00% | |
Hong Kong Disneyland Resort | Line of Credit | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 2.1 | $ 271 | ||
Debt Instrument, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | |
Hong Kong Disneyland Resort | Line of Credit | HIBOR | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 1.25% | 1.25% | 1.25% | |
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% | |
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 29 | |||
Shanghai Disney Resort | Loans | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount | 848 | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 7,400 | $ 1,000 | ||
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 | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | ¥ 1,400 | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests, Outstanding | ¥ 300 | $ 39 | ||
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% | |
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 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% |
Balances of Produced and Licens
Balances of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Produced Content [Abstract] | ||
Released, less amortization | $ 5,992 | |
Completed, not released | 511 | |
In-process | 3,462 | |
In development or pre-production | 400 | |
Theatrical Film Costs | 10,365 | |
Television Costs [Abstract] | ||
Released, less amortization | 9,297 | |
Completed, not released | 920 | |
In-process | 1,944 | |
In development or pre-production | 48 | |
Direct-to-television Film Costs | 12,209 | |
Licensed television programming rights and advances | 6,052 | |
Produced and Licensed Content, Total | 28,626 | |
Current portion | 1,869 | $ 4,597 |
Non-current portion | 26,757 | $ 22,810 |
Monetized individually | ||
Produced Content [Abstract] | ||
Released, less amortization | 3,515 | |
Completed, not released | 452 | |
In-process | 3,194 | |
In development or pre-production | 399 | |
Theatrical Film Costs | 7,560 | |
Television Costs [Abstract] | ||
Released, less amortization | 2,920 | |
Completed, not released | 387 | |
In-process | 155 | |
In development or pre-production | 0 | |
Direct-to-television Film Costs | 3,462 | |
Monetized as a group | ||
Produced Content [Abstract] | ||
Released, less amortization | 2,477 | |
Completed, not released | 59 | |
In-process | 268 | |
In development or pre-production | 1 | |
Theatrical Film Costs | 2,805 | |
Television Costs [Abstract] | ||
Released, less amortization | 6,377 | |
Completed, not released | 533 | |
In-process | 1,789 | |
In development or pre-production | 48 | |
Direct-to-television Film Costs | $ 8,747 |
Amortization of Produced and Li
Amortization of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Amortization of Produced Theatrical Film Costs | $ 832 | $ 1,669 | ||||
Amortization of Produced Television Costs | 1,821 | 3,502 | ||||
Amortization of Produced Content Costs | 2,653 | 5,171 | ||||
Amortization of Licensed Television and Programming Rights | 2,453 | 6,184 | ||||
Amortization of Produced and Licensed Content Costs, Total | 5,106 | [1] | $ 3,200 | 11,355 | [1] | $ 7,300 |
Monetized individually | ||||||
Amortization of Produced Theatrical Film Costs | 562 | 1,088 | ||||
Amortization of Produced Television Costs | 740 | 1,494 | ||||
Amortization of Produced Content Costs | 1,302 | 2,582 | ||||
Monetized as a group | ||||||
Amortization of Produced Theatrical Film Costs | 270 | 581 | ||||
Amortization of Produced Television Costs | 1,081 | 2,008 | ||||
Amortization of Produced Content Costs | $ 1,351 | $ 2,589 | ||||
[1] | Primarily included in “Costs of services” in the Condensed Consolidated Statement of Income. |
Produced and Acquired_License_3
Produced and Acquired/Licensed Content Costs and Advances - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 29, 2019 | Sep. 28, 2019 | |||
Produced and licensed content costs | $ 26,757 | $ 26,757 | $ 22,810 | |||||
Amortization of Produced and Licensed Content Costs, Total | $ 5,106 | [1] | $ 3,200 | $ 11,355 | [1] | $ 7,300 | ||
Accounting Standards Update 2019-02 [Member] | ||||||||
Produced and licensed content costs | $ 3,000 | |||||||
[1] | Primarily included in “Costs of services” in the Condensed Consolidated Statement of Income. |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended |
Dec. 29, 2018 | Mar. 28, 2020 | |
Income Tax [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.00% | |
Unrecognized Tax Benefits | $ 2.9 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.1 | |
Accounting Standards Update 2016-16 | ||
Income Tax [Line Items] | ||
Adoption of new accounting guidance | $ 0.1 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (2) | $ (25) | $ (5) | $ (50) |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs | 102 | 83 | 205 | 166 |
Interest costs | 133 | 144 | 266 | 289 |
Expected return on plan assets | (273) | (240) | (546) | (479) |
Amortization of previously deferred service costs | 4 | 4 | 7 | 7 |
Recognized net actuarial loss | 131 | 67 | 262 | 131 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (5) | (25) | (11) | (52) |
Net periodic benefit cost | 97 | 58 | 194 | 114 |
Postretirement Medical Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs | 2 | 2 | 5 | 4 |
Interest costs | 14 | 17 | 28 | 33 |
Expected return on plan assets | (15) | (14) | (29) | (28) |
Amortization of previously deferred service costs | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 4 | 0 | 7 | 0 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 3 | 3 | 6 | 5 |
Net periodic benefit cost | $ 5 | $ 5 | $ 11 | $ 9 |
Pension and Other Benefit Pro_3
Pension and Other Benefit Programs - Additional Information (Details) $ in Millions | Mar. 28, 2020USD ($) |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 600 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 675 |
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 | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Shares (in millions): | ||||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,808 | 1,530 | 1,806 | 1,510 |
Weighted average dilutive impact of Awards | 8 | 7 | 10 | 7 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,816 | 1,537 | 1,816 | 1,517 |
Awards excluded from diluted earnings per share | 9 | 14 | 9 | 13 |
Equity Dividends Paid (Details)
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 28, 2020 | Sep. 28, 2019 | Mar. 30, 2019 | |
Dividends, Common Stock [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.88 | $ 0.88 | $ 0.88 |
Dividends, Common Stock, Cash | $ 1,600 | $ 1,600 | $ 1,300 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (8,379) | $ (4,831) | $ (8,459) | $ (4,849) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (195) | (53) | (194) | (42) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 96 | 50 | 175 | 80 |
AOCI reclassifications to retained earnings, before tax | (23) | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (8,478) | (4,834) | (8,478) | (4,834) |
Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | 0 | 0 | 0 | 24 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | (5) | 0 | (5) |
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 | 0 | (5) | 0 | (5) |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (12) | 166 | 129 | 177 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 212 | (82) | 131 | (55) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (42) | (22) | (102) | (61) |
AOCI reclassifications to retained earnings, before tax | 1 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | 158 | 62 | 158 | 62 |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (7,363) | (4,254) | (7,502) | (4,323) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (43) | 19 | (43) | 19 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 138 | 72 | 277 | 141 |
AOCI reclassifications to retained earnings, before tax | 0 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (7,268) | (4,163) | (7,268) | (4,163) |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (1,004) | (743) | (1,086) | (727) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (364) | 15 | (282) | (1) |
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 | $ (1,368) | $ (728) | $ (1,368) | $ (728) |
Equity Changes in Accumulated_2
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 1,846 | $ 1,049 | $ 1,842 | $ 1,752 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 17 | 11 | 39 | (2) | |
Reclassification from AOCI, Current Period, Tax | (22) | (12) | (40) | (19) | |
AOCI reclassifications to retained earnings, tax | [1] | (683) | |||
AOCI Tax, Attributable to Parent, Ending Balance | 1,841 | 1,048 | 1,841 | 1,048 | |
Investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI Tax, Attributable to Parent, Beginning Balance | 0 | 0 | 0 | (9) | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | 1 | 0 | 1 | |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, tax | [1] | 9 | |||
AOCI Tax, Attributable to Parent, Ending Balance | 0 | 1 | 0 | 1 | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI Tax, Attributable to Parent, Beginning Balance | 5 | (38) | (29) | (32) | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (51) | 19 | (31) | 13 | |
Reclassification from AOCI, Current Period, Tax | 10 | 5 | 24 | 14 | |
AOCI reclassifications to retained earnings, tax | [1] | (9) | |||
AOCI Tax, Attributable to Parent, Ending Balance | (36) | (14) | (36) | (14) | |
Unrecognized Pension and Postretirement Medical Expense | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI Tax, Attributable to Parent, Beginning Balance | 1,724 | 1,007 | 1,756 | 1,690 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 10 | (6) | 10 | (6) | |
Reclassification from AOCI, Current Period, Tax | (32) | (17) | (64) | (33) | |
AOCI reclassifications to retained earnings, tax | [1] | (667) | |||
AOCI Tax, Attributable to Parent, Ending Balance | 1,702 | 984 | 1,702 | 984 | |
Foreign Currency Translation and Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI Tax, Attributable to Parent, Beginning Balance | 117 | 80 | 115 | 103 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 58 | (3) | 60 | (10) | |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, tax | [1] | (16) | |||
AOCI Tax, Attributable to Parent, Ending Balance | $ 175 | $ 77 | $ 175 | $ 77 | |
[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 ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | $ (6,533) | $ (3,782) | $ (6,617) | $ (3,097) | |
Unrealized gains (losses) arising during the period | (178) | (42) | (155) | (44) | |
Reclassifications of realized net (gains) losses to net income | 74 | 38 | 135 | 61 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (706) | |||
AOCI, Ending Balance | (6,637) | (3,786) | (6,637) | (3,786) | |
Investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | 0 | 0 | 0 | 15 | |
Unrealized gains (losses) arising during the period | 0 | (4) | 0 | (4) | |
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 | 0 | (4) | 0 | (4) | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (7) | 128 | 100 | 145 | |
Unrealized gains (losses) arising during the period | 161 | (63) | 100 | (42) | |
Reclassifications of realized net (gains) losses to net income | (32) | (17) | (78) | (47) | |
AOCI reclassifications to retained earnings, net of tax | [1] | (8) | |||
AOCI, Ending Balance | 122 | 48 | 122 | 48 | |
Unrecognized Pension and Postretirement Medical Expense | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (5,639) | (3,247) | (5,746) | (2,633) | |
Unrealized gains (losses) arising during the period | (33) | 13 | (33) | 13 | |
Reclassifications of realized net (gains) losses to net income | 106 | 55 | 213 | 108 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (667) | |||
AOCI, Ending Balance | (5,566) | (3,179) | (5,566) | (3,179) | |
Foreign Currency Translation and Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI, Beginning Balance | (887) | (663) | (971) | (624) | |
Unrealized gains (losses) arising during the period | (306) | 12 | (222) | (11) | |
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 | $ (1,193) | $ (651) | $ (1,193) | $ (651) | |
[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 ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 30, 2019 | |
Class of Stock [Line Items] | |||
AOCI reclassifications to retained earnings, tax | [1] | $ (683) | |
AOCI reclassifications to retained earnings, before tax | (23) | ||
AOCI reclassifications to retained earnings, net of tax | [1] | $ (706) | |
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 | ||
[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 | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Details about AOCI Components Reclassified to Net Income | ||||
Revenues | $ 18,009 | $ 14,922 | $ 38,867 | $ 30,225 |
Interest expense, net | 300 | 143 | 583 | 206 |
Income taxes | (525) | (1,647) | (984) | (2,292) |
Net income attributable to The Walt Disney Company (Disney) | 460 | 5,452 | 2,567 | 8,240 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Details about AOCI Components Reclassified to Net Income | ||||
Net income attributable to The Walt Disney Company (Disney) | (74) | (38) | (135) | (61) |
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 | 42 | 22 | 102 | 61 |
Income taxes | (10) | (5) | (24) | (14) |
Net income attributable to The Walt Disney Company (Disney) | 32 | 17 | 78 | 47 |
Gain/(loss) in net income from Pension and postretirement medical expense | Reclassification out of Accumulated Other Comprehensive Income | ||||
Details about AOCI Components Reclassified to Net Income | ||||
Interest expense, net | (138) | (72) | (277) | (141) |
Income taxes | 32 | 17 | 64 | 33 |
Net income attributable to The Walt Disney Company (Disney) | $ (106) | $ (55) | $ (213) | $ (108) |
Compensation Expense Related to
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options | $ 28 | $ 24 | $ 49 | $ 43 | ||
RSUs | 103 | [1] | 340 | [1] | 197 | 413 |
Total equity-based compensation expense | 131 | [2] | 364 | [2] | 246 | 456 |
Equity-based compensation expense capitalized during the period | $ 21 | $ 22 | $ 45 | $ 38 | ||
[1] | Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . | |||||
[2] | Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation Compe
Equity-Based Compensation Compensation Expense Related to Restricted Stock Units of 21CF (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | [1] | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 103 | $ 340 | [1] | $ 197 | $ 413 | |
TFCF | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 259 | $ 259 | ||||
[1] | Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair values of options issued | $ 36.22 | $ 28.67 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 209 | |
Stock compensation granted, number of shares | 4.3 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 969 | |
Stock compensation granted, number of shares | 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Mar. 28, 2020USD ($) |
Guarantee Obligations | |
Commitments and Contingencies Disclosure [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 237 |
Summary of Right-of-Use Assets
Summary of Right-of-Use Assets and Lease Liabilities on the Balance Sheet (Details) $ in Millions | Mar. 28, 2020USD ($) | |
Operating Lease, Right-of-Use Asset | $ 4,211 | [1] |
Finance Lease, Right-of-Use Asset | 353 | [1] |
Operating and Financing Lease Right Of Use Asset | 4,564 | [1] |
Operating Lease, Liability, Current | 822 | [2] |
Finance Lease, Liability, Current | 36 | [2] |
Operating and Finance Lease Liability Current | 858 | [2] |
Operating Lease, Liability, Noncurrent | 2,969 | [3] |
Finance Lease, Liability, Noncurrent | 282 | [3] |
Operating and Finance Lease Liability Noncurrent | 3,251 | [3] |
Operating and Finance Lease Liability | $ 4,109 | |
[1] | Included in “Other assets” in the Condensed Consolidated Balance Sheets. Includes approximately $0.6 billion of long-term prepaid rent that was presented as a right-of-use asset upon adoption. | |
[2] | Included in “Accounts payable and other accrued liabilities” in the Condensed Consolidated Balance Sheets | |
[3] | Included in “Other long-term liabilities” in the Condensed Consolidated Balance Sheet |
Components of Lease Costs (Deta
Components of Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | ||
Amortization of Right-of-Use Assets | $ 15 | $ 17 | |
Interest on Lease Liabilities | 4 | 8 | |
Operating Lease Cost | 229 | 452 | |
Variable Fees and Other | [1] | 127 | 273 |
Lease, Cost | $ 375 | $ 750 | |
[1] | Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. |
Summary of Cash Flows Arising F
Summary of Cash Flows Arising From Lease Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 28, 2020 | Mar. 28, 2020 | |
Operating Cash Flows for Operating Leases | $ 270 | $ 495 |
Operating Cash Flows for Finance Leases | 4 | 8 |
Finance Cash Flows for Finance Leases | 16 | 23 |
Cash Outflow from Operating and Financing Leases | $ 290 | $ 526 |
Lease Liability Maturities (Det
Lease Liability Maturities (Details) $ in Millions | Mar. 28, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 436 |
2021 | 832 |
2022 | 645 |
2023 | 505 |
2024 | 381 |
Thereafter | 1,817 |
Total undiscounted future lease payments - Operating | 4,616 |
Imputed interest - Operating | 825 |
Operating Lease, Liability | 3,791 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 30 |
2021 | 57 |
2022 | 56 |
2023 | 47 |
2024 | 38 |
Thereafter | 514 |
Total undiscounted future lease payments - Financing | 742 |
Imputed interest - Financing | 424 |
Finance Lease, Liability | $ 318 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Details) $ in Millions | Sep. 28, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 982 |
2021 | 849 |
2022 | 670 |
2023 | 532 |
2024 | 407 |
Thereafter | 2,491 |
Total Minimum Obligations | 5,931 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | 19 |
2021 | 20 |
2022 | 19 |
2023 | 17 |
2024 | 16 |
Thereafter | 458 |
Total Minimum Obligations | 549 |
Less: amount representing interest | 398 |
Present Value of Net Minimum Obligations | $ 151 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Mar. 28, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 9 years | |
Finance Lease, Weighted Average Remaining Lease Term | 23 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 2.50% | |
Finance Lease, Weighted Average Discount Rate, Percent | 6.40% | |
Lessee, Operating Lease, Lease Not Yet Commenced | $ 270 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Adoption of new accounting guidance | $ 3,700 | |
Accrued Rent | 300 | |
Sale Leaseback Transaction, Deferred Gain, Gross | 300 | |
Capital Leased Assets, Gross | $ 200 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 7 | $ 13 |
Total | 715 | 233 |
Fair value of borrowings | 57,838 | 49,958 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | (466) | (89) |
Derivative Liabilities | (2) | (93) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 994 | 771 |
Derivative Liabilities | (734) | (544) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 13 | 1 |
Derivative Liabilities | (29) | (4) |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7 | 13 |
Total | 7 | 13 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 708 | 220 |
Fair value of borrowings | 56,510 | 48,709 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | (466) | (89) |
Derivative Liabilities | (2) | (93) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 994 | 771 |
Derivative Liabilities | (734) | (544) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 13 | 1 |
Derivative Liabilities | (29) | (4) |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 1,328 | 1,249 |
Level 3 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
Gross Fair Value of Derivative
Gross Fair Value of Derivative Positions (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 507 | $ 368 |
Derivative Asset, Counterparty Netting Offset | (211) | (231) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (214) | (55) |
Net derivative positions | 82 | 82 |
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 | 389 | 302 |
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 | 1 | 1 |
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 | 105 | 65 |
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 |
Current Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 12 | |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 966 | 493 |
Derivative Asset, Counterparty Netting Offset | (492) | (345) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (229) | (6) |
Net derivative positions | 245 | 142 |
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 | 302 | 241 |
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 | 466 | 89 |
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 | 0 |
Other Assets | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 198 | 163 |
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 Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (257) | (259) |
Derivative Liability, Counterparty netting offset | 225 | 258 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Net derivative positions | (32) | (1) |
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 | (95) | (67) |
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 | 0 | (82) |
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 | (21) | (3) |
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 | (141) | (107) |
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 Current Liabilities | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (508) | (382) |
Derivative Liability, Counterparty netting offset | 478 | 318 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 6 | 7 |
Net derivative positions | (24) | (57) |
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 | (287) | (244) |
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 | (8) | (1) |
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 | (211) | (126) |
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 | (2) | $ (11) |
Other Long-Term Liabilities | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 |
Derivative Instruments Carrying
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | $ 12,062 | $ 10,683 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | [1] | 466 | 31 |
Current Portion of Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 1,126 | 1,121 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 2 | (3) | |
Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 10,936 | 9,562 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 464 | $ 34 | |
[1] | Includes $36 million and $37 million of gains on terminated interest rate swaps as of March 28, 2020 and September 28, 2019, respectively. |
Derivative Instruments Carryi_2
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges - Terminated Interest Rate Swaps (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Sep. 28, 2019 |
Interest rate | Derivatives designated as hedges | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 36 | $ 37 |
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 | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on pay-floating swaps | $ 542 | $ 117 | $ 429 | $ 234 |
Gain (loss) on hedged borrowings | (542) | (117) | (429) | (234) |
Derivative, Gain (Loss) on Derivative, Net | $ (7) | $ (18) | $ (19) | $ (32) |
Derivative Instruments Effect o
Derivative Instruments Effect of Foreign Currency Cash Flow Hedges on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 234 | $ 149 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ 43 | $ 103 |
[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 | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Costs and Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | $ (241) | $ 1 | $ (172) | $ (26) |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 239 | (4) | 159 | 20 |
Net gain (loss) | (2) | (3) | (13) | (6) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | 64 | (12) | 52 | 28 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (62) | 11 | (52) | (28) |
Net gain (loss) | 2 | (1) | 0 | 0 |
Income Taxes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency denominated assets and liabilities | 8 | 0 | (7) | 15 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (20) | (4) | (3) | (22) |
Net gain (loss) | $ (12) | $ (4) | $ (10) | $ (7) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 28, 2020 | Sep. 28, 2019 | |
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 | $ 324 | |
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | 62 | $ 65 |
Derivatives designated as hedges | Interest rate | Fair Value Hedging | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 10,900 | 9,900 |
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 5,600 | 6,300 |
Not Designated as Hedging Instrument | Interest rate | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,000 | |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 2 | 11 |
Not Designated as Hedging Instrument | Foreign exchange | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4,200 | $ 3,800 |
Restructuring and Impairment _3
Restructuring and Impairment Charges Restructuring Reserves (Details) - TFCF Integration - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 28, 2020 | Sep. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 676 | $ 0 |
Restructuring Charges | 271 | 906 |
Payments for Restructuring | (412) | (230) |
Ending Balance | 535 | 676 |
Media Networks | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 18 | 90 |
Parks, Experiences and Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 8 | 11 |
Studio Entertainment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 50 | 197 |
Direct-to-Consumer & International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 163 | 426 |
Corporate, Non-Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 32 | $ 182 |
Restructuring and Impairment _4
Restructuring and Impairment Charges - Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 145 | $ 662 | $ 295 | $ 662 | ||
Restricted Stock or Unit Expense | 103 | [1] | 340 | [1] | 197 | 413 |
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 133 | |||||
TFCF | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 259 | $ 259 | ||||
TFCF Integration | TFCF | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1,500 | |||||
TFCF Integration | TFCF | Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1,200 | |||||
TFCF Integration | TFCF | Scenario, Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 1,500 | |||||
TFCF Integration | TFCF | Vest Upon Acquisition | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 300 | |||||
[1] | Includes TFCF Performance RSUs converted to Company RSUs in connection with the TFCF acquisition . For both the quarter and six months ended March 30, 2019, the Company recognized $259 million of equity based compensation in connection with the TFCF acquisition . |