Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 03, 2020 | Nov. 18, 2020 | Mar. 28, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 3, 2020 | ||
Current Fiscal Year End Date | --10-03 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 174 | ||
Entity Common Stock, Shares Outstanding | 1,810,485,037 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001744489 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Revenues | $ 65,388 | $ 69,607 | $ 59,434 | |
Selling, general, administrative and other | (12,369) | (11,549) | (8,860) | |
Depreciation and amortization | (5,345) | (4,167) | (3,011) | |
Total costs and expenses | (61,594) | (57,777) | (44,597) | |
Restructuring and impairment charges | (5,735) | (1,183) | (33) | |
Other income, net | 1,038 | 4,357 | 601 | |
Interest expense, net | (1,491) | (978) | (574) | |
Equity in the income (loss) of investees | 651 | (103) | (102) | |
Income (loss) from continuing operations before income taxes | (1,743) | 13,923 | 14,729 | |
Income taxes on continuing operations | (699) | (3,026) | (1,663) | |
Net income (loss) from continuing operations | (2,442) | 10,897 | 13,066 | |
Income (loss) from discontinued operations, net of income tax benefit (expense) of $10, ($39) and $0, respectively | (32) | 687 | 0 | |
Net income (loss) | (2,474) | 11,584 | 13,066 | |
Net income from continuing operations attributable to noncontrolling and redeemable noncontrolling interests | (390) | (472) | (468) | |
Net income from discontinued operations attributable to noncontrolling interests | 0 | 58 | 0 | |
Net income (loss) attributable to The Walt Disney Company (Disney) | $ (2,864) | $ 11,054 | $ 12,598 | |
Earnings per share attributable to Disney | ||||
Continuing Operations, Per Diluted Share | $ (1.57) | $ 6.26 | $ 8.36 | |
Discontinued Operation, Per Diluted Share | (0.02) | 0.38 | 0 | |
Diluted | [1] | (1.58) | 6.64 | 8.36 |
Continuing Operations, Per Basic Share | (1.57) | 6.30 | 8.40 | |
Discontinued Operation, Per Basic Share | (0.02) | 0.38 | 0 | |
Basic | [1] | $ (1.58) | $ 6.68 | $ 8.40 |
Weighted average number of common and common equivalent shares outstanding: | ||||
Diluted (shares) | 1,808 | 1,666 | 1,507 | |
Basic (shares) | 1,808 | 1,656 | 1,499 | |
Service | ||||
Revenues | $ 59,265 | $ 60,579 | $ 50,869 | |
Cost of Goods and Services Sold | (39,406) | (36,493) | (27,528) | |
Product | ||||
Revenues | 6,123 | 9,028 | 8,565 | |
Cost of Goods and Services Sold | $ (4,474) | $ (5,568) | $ (5,198) | |
[1] | Total may not equal the sum of the column due to rounding. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ (10) | $ 39 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net income (loss) | $ (2,474) | $ 11,584 | $ 13,066 |
Other comprehensive income (loss), net of tax: | |||
Market value adjustments, primarily for hedges | (251) | (37) | 214 |
Pension and postretirement medical plan adjustments | (1,476) | (2,446) | 434 |
Foreign currency translation and other | 115 | (396) | (289) |
Other comprehensive income (loss) | (1,612) | (2,879) | 359 |
Comprehensive income (loss) | (4,086) | 8,705 | 13,425 |
Net income from continuing operations attributable to noncontrolling interests | (390) | (530) | (468) |
Other comprehensive income (loss) attributable to noncontrolling interests | (93) | 65 | 72 |
Comprehensive income (loss) attributable to Disney | $ (4,569) | $ 8,240 | $ 13,029 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Current assets | ||
Cash and cash equivalents | $ 17,914 | $ 5,418 |
Receivables | 12,708 | 15,481 |
Inventories | 1,583 | 1,649 |
Licensed content costs and advances | 2,171 | 4,597 |
Other current assets | 875 | 979 |
Total current assets | 35,251 | 28,124 |
Produced and licensed content costs | 25,022 | 22,810 |
Investments | 3,903 | 3,224 |
Attractions, buildings and equipment | 62,111 | 58,589 |
Accumulated depreciation | (35,517) | (32,415) |
Parks, resorts and other property, before projects in progress and land, Total | 26,594 | 26,174 |
Projects in progress | 4,449 | 4,264 |
Land | 1,035 | 1,165 |
Parks, resorts and other property | 32,078 | 31,603 |
Intangible assets, net | 19,173 | 23,215 |
Goodwill | 77,689 | 80,293 |
Other assets | 8,433 | 4,715 |
Total assets | 201,549 | 193,984 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 16,801 | 17,762 |
Current portion of borrowings | 5,711 | 8,857 |
Deferred revenue and other | 4,116 | 4,722 |
Total current liabilities | 26,628 | 31,341 |
Borrowings | 52,917 | 38,129 |
Deferred income taxes | 7,288 | 7,902 |
Other long-term liabilities | 17,204 | 13,760 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 9,249 | 8,963 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock, $.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares | 54,497 | 53,907 |
Retained earnings | 38,315 | 42,494 |
Accumulated other comprehensive loss | (8,322) | (6,617) |
Treasury stock, at cost, 19 million shares | (907) | (907) |
Total Disney Shareholders’ equity | 83,583 | 88,877 |
Noncontrolling interests | 4,680 | 5,012 |
Total equity | 88,263 | 93,889 |
Total liabilities and equity | $ 201,549 | $ 193,984 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 1,800 | 1,800 |
Treasury stock, shares | 19 | 19 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net income (loss) from continuing operations | $ (2,442) | $ 10,897 | $ 13,066 |
OPERATING ACTIVITIES | |||
Depreciation and amortization | 5,345 | 4,167 | 3,011 |
Goodwill and Intangible Asset Impairment | 4,953 | 0 | 0 |
Net gain on investments, acquisitions and dispositions | (920) | (4,733) | (560) |
Deferred income taxes | (392) | 117 | (1,573) |
Equity in the (income) loss of investees | (651) | 103 | 102 |
Cash distributions received from equity investees | 774 | 754 | 775 |
Net change in produced and licensed content costs and advances | 397 | (542) | (523) |
Net change in operating lease right of use assets / liabilities | 31 | 0 | 0 |
Equity-based compensation | 525 | 711 | 393 |
Other | 641 | 154 | 441 |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Receivables | 1,943 | 55 | (720) |
Inventories | 14 | (223) | (17) |
Other assets | (157) | 932 | (927) |
Accounts payable and other liabilities | (2,293) | 191 | 235 |
Income taxes | (152) | (6,599) | 592 |
Cash provided by operations - continuing operations | 7,616 | 5,984 | 14,295 |
INVESTING ACTIVITIES | |||
Investments in parks, resorts and other property | (4,022) | (4,876) | (4,465) |
Acquisitions | 0 | (9,901) | (1,581) |
Other | 172 | (319) | 710 |
Cash used in investing activities - continuing operations | (3,850) | (15,096) | (5,336) |
FINANCING ACTIVITIES | |||
Commercial paper borrowings (payments), net | (3,354) | 4,318 | (1,768) |
Borrowings | 18,120 | 38,240 | 1,056 |
Reduction of borrowings | (3,533) | (38,881) | (1,871) |
Dividends | (1,587) | (2,895) | (2,515) |
Repurchases of common stock | 0 | 0 | (3,577) |
Proceeds from exercise of stock options | 305 | 318 | 210 |
Contributions from/sales of noncontrolling interests | 94 | 737 | 399 |
Acquisitions of noncontrolling and redeemable noncontrolling interests | 0 | (1,430) | 0 |
Other | (1,565) | (871) | (777) |
Cash used in financing activities - continuing operations | 8,480 | (464) | (8,843) |
CASH FLOWS FROM DISCONTINUED OPERATIONS | |||
Cash Provided by Operating Activities, Discontinued Operations | 2 | 622 | 0 |
Cash Provided by Investing Activities, Discontinued Operations | 213 | 10,978 | 0 |
Cash Used in Financing Activities, Discontinued Operations | 0 | (626) | 0 |
Cash provided by discontinued operations | 215 | 10,974 | 0 |
Impact of exchange rates on cash, cash equivalents and restricted cash | 38 | (98) | (25) |
Change in Cash, Cash Equivalents and Restricted Cash | 12,499 | 1,300 | 91 |
Cash, cash equivalents and restricted cash, beginning of year | 5,455 | 4,155 | 4,064 |
Cash, cash equivalents and restricted cash, end of year | 17,954 | 5,455 | 4,155 |
Supplemental disclosure of cash flow information: | |||
Interest Paid | 1,559 | 1,142 | 631 |
Income taxes paid | $ 738 | $ 9,259 | $ 2,503 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Disney Equity | Noncontrolling Interest | [1] | Total excluding redeemable noncontrolling interest [Member] |
BEGINNING BALANCE (in shares) at Sep. 30, 2017 | 1,517,000 | ||||||||
BEGINNING BALANCE at Sep. 30, 2017 | $ 36,248 | $ 72,606 | $ (3,528) | $ (64,011) | $ 41,315 | $ 3,689 | $ 45,004 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | $ 13,425 | 12,598 | 431 | 13,029 | 425 | 13,454 | |||
Equity compensation activity (in shares) | 6,000 | ||||||||
Equity compensation activity | $ 518 | 518 | 518 | ||||||
Common stock repurchases (in shares) | (35,000) | (35,000) | |||||||
Common stock repurchases | $ (3,600) | (3,577) | (3,577) | (3,577) | |||||
Dividends | $ 14 | (2,529) | (2,515) | (2,515) | |||||
Contributions | 399 | 488 | 488 | ||||||
Distributions and other | $ (1) | 4 | 3 | (543) | (540) | ||||
ENDING BALANCE (in shares) at Sep. 29, 2018 | 1,488,000 | ||||||||
ENDING BALANCE at Sep. 29, 2018 | $ 36,779 | 82,679 | (3,097) | (67,588) | 48,773 | 4,059 | 52,832 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 8,705 | 11,054 | (2,814) | 8,240 | 371 | 8,611 | |||
Equity compensation activity (in shares) | 7,000 | ||||||||
Equity compensation activity | $ 912 | 912 | 912 | ||||||
Dividends | $ 18 | (2,913) | (2,895) | (2,895) | |||||
Contributions | 737 | 737 | 737 | ||||||
Acquisition of TFCF (in shares) | 307,000 | ||||||||
Acquisition of TFCF | $ 33,774 | 33,774 | 10,408 | 44,182 | |||||
Adoption of New Accounting Pronouncement | Accounting Standards Update 2018-02 | 691 | (691) | |||||||
Adoption of New Accounting Pronouncement | Accounting Standards Update 2016-16 | 192 | 192 | 192 | ||||||
Adoption of New Accounting Pronouncement | Accounting Standards Update 2014-09 | (116) | (116) | (116) | ||||||
Adoption of New Accounting Pronouncement | Accounting Standards Update, Other | 22 | (15) | 7 | 7 | |||||
Treasury Stock, Retired, Cost Method, Amount | (17,563) | (49,118) | 66,681 | ||||||
Temporary Equity, Accretion to Redemption Value | (7,770) | (7,770) | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (1,430) | (1,430) | |||||||
Sales of RSNs | (744) | (744) | |||||||
Distributions and other | $ (13) | 3 | (10) | (619) | (629) | ||||
ENDING BALANCE (in shares) at Sep. 28, 2019 | 1,802,000 | ||||||||
ENDING BALANCE at Sep. 28, 2019 | 93,889 | $ 53,907 | 42,494 | (6,617) | (907) | 88,877 | 5,012 | 93,889 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | (4,086) | (2,864) | (1,705) | (4,569) | 198 | (4,371) | |||
Equity compensation activity (in shares) | 8,000 | ||||||||
Equity compensation activity | $ 590 | 590 | 590 | ||||||
Dividends | 9 | (1,596) | (1,587) | (1,587) | |||||
Contributions | 94 | 94 | 94 | ||||||
Adoption of New Accounting Pronouncement | Accounting Standards Update 2016-02 | 197 | 197 | 197 | ||||||
Distributions and other | $ (9) | 84 | 75 | (624) | (549) | ||||
ENDING BALANCE (in shares) at Oct. 03, 2020 | 1,810,000 | ||||||||
ENDING BALANCE at Oct. 03, 2020 | $ 88,263 | $ 54,497 | $ 38,315 | $ (8,322) | $ (907) | $ 83,583 | $ 4,680 | $ 88,263 | |
[1] | Excludes redeemable noncontrolling interest |
Description of the Business and
Description of the Business and Segment Information | 12 Months Ended |
Oct. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Segment Information | Description of the Business and Segment Information The Walt Disney Company, together with the subsidiaries through which businesses are conducted (the Company), is a diversified worldwide entertainment company with operations in the following business segments: Media Networks; Parks, Experiences and Products; Studio Entertainment; and Direct-to-Consumer & International (DTCI). In October 2020, the Company announced a strategic reorganization of our media and entertainment businesses to accelerate the growth of our direct-to-consumer (DTC) strategy. The operations of the Media Networks, Studio Entertainment and DTCI segments were reorganized into four groups: three content groups (Studios, General Entertainment and Sports), which are focused on developing and producing content that will be used across all of our traditional and DTC platforms and a distribution group, which is focused on distribution and commercialization activities across these platforms and which has full accountability for media and entertainment operating results globally. The terms “Company”, “we”, “our” and “us” are used in this report to refer collectively to the parent company and the subsidiaries through which various businesses are conducted. The term “TWDC” is used to refer to the parent company. Impact of COVID-19 During fiscal 2020 and continuing into fiscal 2021, the world has been, and continues to be, impacted by the novel coronavirus (COVID-19) pandemic. COVID-19 and measures to prevent its spread impacted our segments in a number of ways, most significantly at Parks, Experiences and Products where our theme parks were closed or operating at significantly reduced capacity for a significant portion of the year, cruise ship sailings and guided tours were suspended since late in the second quarter and retail stores were closed for a significant portion of the year. We also had an adverse impact on our merchandise licensing business. Our Studio Entertainment segment has delayed, or in some cases, shortened or cancelled, theatrical releases, and stage play performances have been suspended since late in the second quarter. We also had adverse impacts on advertising sales at Media Networks and Direct-to-Consumer & International. Since March 2020, we have experienced significant disruptions in the production and availability of content, including the shift of key live sports programming from our third quarter to the fourth quarter and into fiscal 2021 as well as the suspension of production of most film and television content since late in the second quarter, although some film and television production resumed in the fourth quarter. The impact of these disruptions and the extent of their adverse impact on our financial and operating results will be dictated by the length of time that such disruptions continue, which will, in turn, depend on the currently unknowable duration and severity of the impacts of COVID-19, and among other things, the impact of governmental actions imposed in response to COVID-19 and individuals’ and companies’ risk tolerance regarding health matters going forward. As some of our businesses have reopened, we have incurred additional costs to address government regulations and the safety of our employees, talent and guests. In fiscal 2020, the Company recorded goodwill and intangible asset impairments totaling $5.0 billion, in part due to the negative impact COVID-19 has had on the International Channels business (see Note 19). Acquisition of TFCF On March 20, 2019, the Company acquired Twenty-First Century Fox, Inc., a diversified global media and entertainment company, which was subsequently renamed TFCF Corporation (TFCF). Prior to the acquisition, TFCF and a newly-formed subsidiary of TFCF (New Fox) entered into a separation agreement, pursuant to which TFCF transferred to New Fox a portfolio of TFCF’s news, sports and broadcast businesses and certain other assets. TFCF retained all of the assets and liabilities not transferred to New Fox, the most significant of which were the Twentieth Century Fox film and television studios, certain cable networks (primarily FX and National Geographic), TFCF’s international television businesses (including Star) and TFCF’s 30% interest in Hulu LLC (Hulu). Under the terms of the agreement governing the acquisition, the Company will generally phase-out Fox brands by 2024, but has perpetual rights to certain Fox brands, including Twentieth Century Fox and Fox Searchlight, although these have been rebranded to Twentieth Century Studios and Searchlight Pictures, respectively. As a result of the acquisition, the Company’s ownership in Hulu LLC (Hulu) increased from 30% to 60% (67% as of October 3, 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 (RSNs) (sold in August 2019 for approximately $11 billion) and sports media operations in Brazil and Mexico. In addition, the Company agreed to divest its interest in certain European cable channels that were controlled by A+E Television Networks (A+E) (sold in April 2019 for an amount that was not material). In the third quarter of fiscal 2020, the Company received regulatory approval to retain the sports media operation in Brazil. The RSNs and sports media operation in Mexico, along with certain other businesses to be divested, are presented as discontinued operations in the Consolidated Statements of Operations. At October 3, 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 Consolidated Balance Sheets. The sports media operation in Brazil was previously presented as discontinued operations, with its assets and liabilities considered held for sale, but is now reported as continuing operations in the current and prior periods. The impact on the previously reported Consolidated Statements of Operations, Consolidated Balance Sheets and Consolidated Statements of Cash Flows was not material. See Note 4 for additional information on these transactions. DESCRIPTION OF THE BUSINESS Media Networks Significant operations: • Disney, ESPN, Freeform, FX and National Geographic branded domestic cable networks • ABC branded broadcast television network and eight owned domestic television stations • Television production and distribution • A 50% equity investment in A+E Significant revenues: • Affiliate fees - Fees charged to multi-channel video programming distributors (i.e. cable, satellite, telecommunications and digital over-the-top (e.g. Hulu, YouTube TV) service providers) (MVPDs) and to television stations affiliated with the ABC Network for the right to deliver our programming to their customers • Advertising - Sales of advertising time/space on our domestic networks and related platforms (“ratings-based ad sales”, which excludes advertising on digital platforms that is not ratings-based) and the sale of advertising time on our domestic television stations. Ratings-based ad sales are generally determined using viewership measured with Nielsen ratings. Non-ratings-based advertising on digital platforms is reported by DTCI • TV/SVOD distribution - Licensing fees and other revenues from the right to use our television programs and productions and revenue from content transactions with other Company segments (“program sales”) Significant expenses: • Operating expenses consisting primarily of programming and production costs, participations and residuals expense, technical support costs, operating labor and distribution costs • Selling, general and administrative costs • Depreciation and amortization Parks, Experiences and Products Significant operations: • Parks & Experiences: ◦ Theme parks and resorts, which include: Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort (48% ownership interest); Shanghai Disney Resort (43% ownership interest), all of which are consolidated in our results. Additionally, the Company licenses our intellectual property to a third party to operate Tokyo Disney Resort ◦ Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions (73% ownership interest), Adventures by Disney and Aulani, a Disney Resort & Spa in Hawaii • Consumer Products: ◦ Licensing of our trade names, characters, visual, literary and other intellectual properties to various manufacturers, game developers, publishers and retailers throughout the world, for use on merchandise, published materials and games ◦ Sale of branded merchandise through retail, online and wholesale businesses, and development and publishing of books, comic books and magazines (except National Geographic, which is reported in Media Networks) Significant revenues: • Theme park admissions - Sales of tickets for admission to our theme parks • Parks & Experiences merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts and cruise ships • Resorts and vacations - Sales of room nights at hotels, sales of cruise and other vacations and sales and rentals of vacation club properties • Merchandise licensing and retail: ◦ Merchandise licensing - Royalties from intellectual property licensing ◦ Retail - Sales of merchandise at The Disney Stores and through branded internet shopping sites, as well as, to wholesalers (including books, comic books and magazines) • Parks licensing and other - Revenues from sponsorships and co-branding opportunities and real estate rent and sales. In addition, we earn royalties on Tokyo Disney Resort revenues Significant expenses: • Operating expenses consisting primarily of operating labor, costs of goods sold, infrastructure costs, supplies, commissions and entertainment offerings. Infrastructure costs include information systems expense, repairs and maintenance, property taxes, utilities and fuel, retail occupancy costs, insurance and transportation • Selling, general and administrative costs • Depreciation and amortization Studio Entertainment Significant operations: • Motion picture production and distribution under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, Searchlight Pictures and Blue Sky Studios banners • Development, production and licensing of live entertainment events on Broadway and around the world (stage plays) • Music production and distribution • Post-production services through Industrial Light & Magic and Skywalker Sound Significant revenues: • Theatrical distribution - Rentals from licensing our motion pictures to theaters • Home entertainment - Sale of our motion pictures to retailers and distributors in physical (DVD and Blu-ray) and electronic formats • TV/SVOD distribution and other - Licensing fees and other revenue from the right to use our motion picture productions, revenue from content transactions with other Company segments, ticket sales from stage plays, fees from licensing our intellectual properties for use in live entertainment productions, revenue from licensing our music and revenue from post-production services Significant expenses: • Operating expenses consisting primarily of amortization of production, participations and residuals costs, distribution costs and costs of sales • Selling, general and administrative costs • Depreciation and amortization Direct-to-Consumer & International Significant operations: • Direct-to-consumer (DTC) video streaming services, which include Disney+ / Disney+Hotstar, ESPN+ and Hulu. Disney+ launched in November 2019 in the U.S. and 4 other countries and has expanded to select Western European countries in the Spring of 2020. In April, our Hotstar service in India was converted to Disney+Hotstar, and in June 2020, current subscribers of the Disney Deluxe service in Japan were converted to Disney+. In September 2020, Disney+ was launched in additional European countries and Disney+Hotstar was launched in Indonesia. In November 2020, Disney+ was launched in Latin America. The Company also plans to launch a general entertainment DTC video streaming service under the Star brand outside the U.S. in calendar year 2021 • Branded international television networks and channels, which include Disney, ESPN, Fox, National Geographic and Star (International Channels) • Other digital content distribution platforms and services including branded apps and websites, the Disney Movie Club and Disney Digital Network and streaming technology support services • Equity investments: ◦ A 50% ownership interest in Endemol Shine Group, which was sold on July 2, 2020 ◦ A 20% ownership interest (49% economic interest) in Seven TV, which operates an advertising-supported, free-to-air Disney Channel in Russia ◦ A 30% effective ownership interest in Tata Sky Limited, which operates a direct-to-home satellite distribution platform in India ◦ An approximate 24% effective ownership interest (14% fully diluted) in Vice Group Holding Inc. (Vice), which is a media company that targets millennial audiences. Vice operates Viceland, which is owned 50% by Vice and 50% by A+E Significant revenues: • Subscription fees - Fees charged to customers/subscribers for our DTC services • Advertising - Sales of advertising time/space on our International Channels and sales of non-ratings-based advertising time/space on digital media platforms (“addressable ad sales”) across the Company. In general, addressable ad sales are delivered using technology that allows for dynamic insertion of advertisements into video content, which can be targeted to specific viewer groups • Affiliate fees - Fees charged to MVPDs for the right to deliver our International Channels to their customers • TV/SVOD distribution - Program sales, sub-licensing fees for sports programming rights and fees charged to customers to view our sports programming (“pay-per-view”) and Premier Access content Significant expenses: • Operating expenses consisting primarily of programming and production costs (including amortization of content obtained from other Company segments), technical support costs, operating labor and distribution costs • Selling, general and administrative costs • Depreciation and amortization SEGMENT INFORMATION Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, 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 for 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 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. The following tables provide select segment and regional financial information: 2020 2019 2018 Revenues Media Networks $ 28,393 $ 24,827 $ 21,922 Parks, Experiences and Products Third parties 17,038 26,786 25,257 Intersegment (536) (561) (556) 16,502 26,225 24,701 Studio Entertainment Third parties 9,100 10,566 9,509 Intersegment 536 561 556 9,636 11,127 10,065 Direct-to-Consumer & International 16,967 9,386 3,414 Eliminations (1) (6,110) (1,958) (668) Total consolidated revenues $ 65,388 $ 69,607 $ 59,434 Segment operating income (loss) Media Networks $ 9,022 $ 7,479 $ 7,338 Parks, Experiences and Products (81) 6,758 6,095 Studio Entertainment 2,501 2,686 3,004 Direct-to-Consumer & International (2,806) (1,835) (738) Eliminations (1) (528) (241) (10) Total segment operating income (2) $ 8,108 $ 14,847 $ 15,689 Reconciliation of segment operating income to income from continuing operations before income taxes Segment operating income $ 8,108 $ 14,847 $ 15,689 Corporate and unallocated shared expenses (817) (987) (744) Restructuring and impairment charges (5,735) (1,183) (33) Other income, net 1,038 4,357 601 Interest expense, net (1,491) (978) (574) Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (3) (2,846) (1,595) — Impairment of equity investments (4) — (538) (210) Income (loss) from continuing operations before income taxes $ (1,743) $ 13,923 $ 14,729 Capital expenditures Media Networks Cable Networks $ 61 $ 93 $ 96 Broadcasting 51 81 107 Parks, Experiences and Products Domestic 2,145 3,294 3,223 International 759 852 677 Studio Entertainment 77 88 96 Direct-to-Consumer & International 594 258 107 Corporate 335 210 159 Total capital expenditures $ 4,022 $ 4,876 $ 4,465 2020 2019 2018 Depreciation expense Media Networks $ 203 $ 191 $ 199 Parks, Experiences and Products Domestic 1,634 1,474 1,449 International 694 724 768 Studio Entertainment 87 74 55 Direct-to-Consumer & International 348 214 106 Depreciation expense included in segment operating income 2,966 2,677 2,577 Corporate 174 167 181 Total depreciation expense $ 3,140 $ 2,844 $ 2,758 Amortization of intangible assets Media Networks $ 4 $ — $ — Parks, Experiences and Products 109 108 110 Studio Entertainment 59 61 64 Direct-to-Consumer & International 112 111 79 Amortization of intangible assets included in segment operating income 284 280 253 TFCF and Hulu intangible assets 1,921 1,043 — Total amortization of intangible assets $ 2,205 $ 1,323 $ 253 October 3, 2020 September 28, 2019 Identifiable assets (5) Media Networks $ 62,220 $ 63,519 Parks, Experiences and Products 42,320 41,978 Studio Entertainment 32,811 34,323 Direct-to-Consumer & International 45,538 48,606 Corporate (6) 19,691 6,025 Eliminations (1,031) (467) Total consolidated assets $ 201,549 193,984 2020 2019 2018 Revenues Americas $ 51,992 $ 53,805 $ 46,877 Europe 7,333 8,006 7,026 Asia Pacific 6,063 7,796 5,531 $ 65,388 $ 69,607 $ 59,434 Segment operating income Americas $ 5,819 $ 10,247 $ 11,898 Europe 1,273 2,433 1,922 Asia Pacific 1,016 2,167 1,869 $ 8,108 $ 14,847 $ 15,689 October 3, 2020 September 28, 2019 Long-lived assets (7) Americas $ 141,674 $ 138,674 Europe 7,672 10,793 Asia Pacific 12,235 12,703 $ 161,581 $ 162,170 (1) Intersegment content transactions are as follows: 2020 2019 2018 Revenues: Studio Entertainment: Content transactions with Media Networks $ (188) $ (106) $ (169) Content transactions with Direct-to-Consumer & International (2,108) (272) (28) Media Networks: Content transactions with Direct-to-Consumer & International (3,814) (1,580) (471) Total $ (6,110) $ (1,958) $ (668) Operating Income: Studio Entertainment: Content transactions with Media Networks $ 3 $ (19) $ (8) Content transactions with Direct-to-Consumer & International (158) (80) — Media Networks: Content transactions with Direct-to-Consumer & International (373) (142) (2) Total $ (528) $ (241) $ (10) (2) Equity in the income (loss) of investees is as follows: 2020 2019 2018 Media Networks $ 737 $ 703 $ 711 Parks, Experiences and Products (19) (13) (23) Studio Entertainment (1) — — Direct-to-Consumer & International (40) (240) (580) Equity in the income of investees included in segment operating income 677 450 108 Impairment of equity investments — (538) (210) Amortization of TFCF intangible assets related to equity investees (26) (15) — Equity in the income (loss) of investees $ 651 $ (103) $ (102) (3) For fiscal 2020, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,921 million, $899 million and $26 million respectively. For fiscal 2019, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,043 million, $537 million and $15 million, respectively. (4) Impairment of equity investments for fiscal 2019 primarily reflects the impairments of Vice Group Holding Inc. and of an investment in a cable channel at A+E Television Networks ($353 million and $170 million, respectively). Impairment of equity investments for fiscal 2018 reflects impairments of Vice Group Holding Inc. and Villages Nature ($157 million and $53 million, respectively). (5) Equity method investments included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 2,002 $ 2,018 Parks, Experiences and Products 3 3 Studio Entertainment 2 8 Direct-to-Consumer & International 570 821 Corporate 55 72 $ 2,632 $ 2,922 Intangible assets included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 7,242 $ 7,861 Parks, Experiences and Products 3,066 3,177 Studio Entertainment 2,031 2,140 Direct-to-Consumer & International 6,814 9,962 Corporate 20 75 $ 19,173 $ 23,215 (6) Primarily fixed assets and cash and cash equivalents. (7) Long-lived assets are total assets less: current assets, long-term receivables, deferred taxes, financial investments and the fair value of derivative instruments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of The Walt Disney Company and its majority-owned or controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. 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. Reporting Period The Company’s fiscal year ends on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. When a fifty-three week year occurs, the Company reports the additional week in the fourth quarter. Fiscal 2019 and 2018 were fifty-two week years. Fiscal 2020 is a fifty-three week year, which began on September 29, 2019 and ended on October 3, 2020. Reclassifications Certain reclassifications have been made in the fiscal 2019 and fiscal 2018 financial statements and notes to conform to the fiscal 2020 presentation. 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. Revenues and Costs from Services and Products The Company generates revenue from the sale of both services and tangible products and revenues and operating costs are classified under these two categories in the Consolidated Statements of Operations. Certain costs related to both the sale of services and tangible products are not specifically allocated between the service or tangible product revenue streams but are instead attributed to the principal revenue stream. The cost of services and tangible products exclude depreciation and amortization. Significant service revenues include: • Affiliate fees • Advertising revenues • Subscription fees to our DTC streaming services • Revenue from the licensing and distribution of film and television properties • Admissions to our theme parks, charges for room nights at hotels and sales of cruise vacation packages • Licensing of intellectual property for use on consumer merchandise, published materials and in multi-platform games Significant operating costs related to the sale of services include: • Amortization of programming and production costs and participations and residuals costs • Distribution costs • Operating labor • Facilities and infrastructure costs Significant tangible product revenues include: • The sale of food, beverage and merchandise at our retail locations • The sale of DVDs and Blu-ray discs • The sale of books, comic books and magazines Significant operating costs related to the sale of tangible products include: • Costs of goods sold • Amortization of programming and production costs and participations and residuals costs • Distribution costs • Operating labor • Retail occupancy costs Revenue Recognition At the beginning of fiscal 2019, the Company adopted Financial Accounting Standards Board (FASB) guidance that replaced the existing accounting guidance for revenue recognition with a single comprehensive five-step model (“new revenue guidance”). The core principle is to recognize revenue upon the transfer of control of goods or services to customers at an amount that reflects the consideration expected to be received. We adopted the new revenue guidance using the modified retrospective method; therefore, results for reporting periods beginning after September 30, 2018 are presented under the new revenue guidance, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. Upon adoption, we recorded a net reduction of $116 million to opening fiscal 2019 retained earnings. The most significant changes to the Company’s revenue recognition policies resulting from the adoption of the new revenue guidance are as follows: • For television and film content licensing agreements with multiple availability windows with the same licensee, the Company now defers more revenue to future windows than under the previous accounting guidance. • For licenses of character images, brands and trademarks with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual amounts earned based on a percentage of the licensee’s underlying sales (“shortfall”) is now recognized straight-line over the remaining license period once an expected shortfall is probable. Previously, shortfalls were recognized at the end of the contract period. • For licenses that include multiple television and film titles with a minimum guaranteed license fee across all titles that earns out against the aggregate fees based on the licensee’s underlying sales, the Company now allocates the minimum guaranteed license fee to each title at contract inception and recognizes the allocated license fee as revenue when the title is made available to the customer. License fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee across all titles is exceeded, license fees are recognized as earned based on the licensee’s underlying sales. Previously, license fees were recognized as earned based on the licensee’s underlying sales with any shortfalls recognized at the end of the contract period. • For renewals or extensions of license agreements for television and film content, revenues are now recognized when the licensed content becomes available under the renewal or extension. Previously, revenues were recognized when the agreement was renewed or extended. The impact on the Consolidated Statement of Operations for fiscal 2019 due to the adoption of the new revenue guidance was as follows: Results Assuming Impact of New Revenue Guidance Reported Revenues $ 69,262 $ 345 $ 69,607 Cost and Expenses (57,523) (254) (57,777) Income Taxes (3,005) (21) (3,026) Net Income 11,514 70 11,584 The most significant impact was at the Studio Entertainment reflecting a change in the timing of revenue recognition related to film content licensing agreements with multiple availability windows. The Company generates revenue from the sale of both services and products. The Company has four broad categories of service revenues: licenses of rights to use our intellectual property (“IP”), sales to guests at our Parks and Experiences businesses, sales of advertising time/space and subscriptions to DTC services. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue guidance defines two types of IP licenses: IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters and visual and literary properties at the Parks, Experiences and Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows: • Affiliate fees - Fees charged to affiliates (i.e., MVPDs or television stations) for the right to deliver our television network programming on a continuous basis to their customers are recognized as the programming is provided based on contractually specified per subscriber rates and the actual number of the affiliate’s customers receiving the programming. For affiliate contracts with fixed license fees, the fees are recognized ratably over the contract term. If an affiliate contract includes a minimum guaranteed license fee, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned. • Subscription fees - Fees charged to customers/subscribers and wholesale distributors for our streaming services are recognized ratably over the term of the subscription. • Advertising - Sales of advertising time/space on our television networks, digital platforms and television stations are recognized as revenue, net of agency commissions, when commercials are aired. For contracts that contain a guaranteed number of impressions, revenues are recognized based on impressions delivered. When the guaranteed number of impressions is not met (“ratings shortfall”), revenues are not recognized for the ratings shortfall until the additional impressions are delivered. • Theme park admissions - Sales of theme park tickets are recognized when the tickets are used. Sales of annual passes are recognized ratably over the period for which the pass is available for use. • Resorts and vacations - Sales of hotel room nights and cruise vacations and rentals of vacation club properties are recognized as revenue as the services are provided to the guest. Sales of vacation club properties are recognized as revenue upon the later of when title transfers to the customer or when construction activity is deemed complete. • Merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts, cruise ships and Disney Stores are recognized at the time of sale. Sales from our branded internet shopping sites and to wholesalers are recognized upon delivery. We estimate returns and customer incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. • TV/SVOD distribution licensing - Fixed license fees charged for the right to use our television and film productions are recognized as revenue when the content is available for use by the licensee. License fees based on the underlying sales of the licensee are recognized as revenue as earned based on the contractual royalty rate applied to the licensee sales. For TV/SVOD licenses that include multiple titles with a fixed license fee across all titles, each title is considered a separate performance obligation. The fixed license fee is allocated to each title at contract inception and the allocated license fee is recognized as revenue when the title is available for use by the licensee. When the license contains a minimum guaranteed license fee across all titles, the license fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee is exceeded, revenue is recognized as earned based on the licensee’s underlying sales. TV/SVOD distribution contracts may limit the licensee’s use of a title to certain defined periods of time during the contract term. In these instances, each period of availability is generally considered a separate performance obligation. For these contracts, the fixed license fee is allocated to each period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized at the start of each availability period when the content is made available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. • Theatrical distribution licensing - Fees charged for licensing of our films to theatrical distributors are recognized as revenue based on the contractual royalty rate applied to the distributor’s underlying sales from exhibition of the film. • Merchandise licensing - Fees charged for the use of our trade names and characters in connection with the sale of a licensee’s products are recognized as revenue as earned based on the contractual royalty rate applied to the licensee’s underlying product sales. For licenses with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual royalties earned (“shortfall”) is recognized straight-line over the remaining license period once an expected shortfall is probable. • Home entertainment - Sales of our films to retailers and distributors in physical formats (DVD and Blu-ray) are recognized as revenue on the later of the delivery date or the date that the product can be sold by retailers. We reduce home entertainment revenues for estimated future returns of merchandise and sales incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. Sales of our films in electronic formats are recognized as revenue when the product is available for use by the consumer. • Taxes - Taxes collected from customers and remitted to governmental authorities are excluded from revenue. • Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue and the related shipping expenses are recorded in cost of products upon delivery of the product to the consumer. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on our analysis of trends in overall receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and current economic trends. Advertising Expense Advertising costs are expensed as incurred. Advertising expense for fiscal 2020, 2019 and 2018 was $4.7 billion, $4.3 billion and $2.8 billion, respectively. The increase in advertising expense for fiscal 2020 compared to fiscal 2019 was primarily due to the consolidation of TFCF and Hulu, partially offset by lower advertising expense at Studio Entertainment and Parks, Experience and Products segments reflecting the impact of COVID-19 on these segments. The increase in advertising expense for fiscal 2019 compared to fiscal 2018 was primarily due to the consolidation of TFCF and Hulu. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. The Company’s restricted cash balances are primarily made up of cash posted as collateral for certain derivative instruments. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. October 3, 2020 September 28, 2019 September 29, 2018 Cash and cash equivalents $ 17,914 $ 5,418 $ 4,150 Restricted cash included in: Other current assets 3 26 1 Other assets 37 11 4 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 17,954 $ 5,455 $ 4,155 Investments Investments in equity securities with a readily determinable fair value, not accounted for under the equity method, are recorded at that value with unrealized gains and losses included in earnings. For equity securities without a readily determinable fair value, the investment is recorded at cost, less any impairment, plus or minus adjustments related to observable transactions for the same or similar securities, with unrealized gains and losses included in earnings. For equity method investments, the Company regularly reviews its investments to determine whether there is a decline in fair value below book value. If there is a decline that is other-than-temporary, the investment is written down to fair value. Translation Policy Generally, the U.S. dollar is the functional currency for our international film and television distribution and licensing businesses and the branded International Channels. Generally, the local currency is the functional currency for the Asia Theme Parks, Disneyland Paris, the branded International Channels that primarily source and exploit their content locally (primarily Star branded channels in India and international sports channels) and international locations of The Disney Stores. For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at average exchange rates in effect during each period, except for those expenses related to the non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss) (AOCI). Inventories Inventory primarily includes vacation timeshare units, merchandise, food, materials and supplies. Carrying amounts of vacation ownership units are recorded at the lower of cost or net realizable value. Carrying amounts of merchandise, food, materials and supplies inventories are generally determined on a moving average cost basis and are recorded at the lower of cost or net realizable value. Film and Television Content Costs At the beginning of fiscal 2020, the Company adopted new FASB guidance that updates the accounting for film and television content costs. See Note 8 for discussion of the new guidance and the Company’s accounting policy for capitalization and amortization of film and television content costs. Internal-Use Software Costs The Company expenses costs incurred in the preliminary project stage of developing or acquiring internal use software, such as research and feasibility studies as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software development costs occurs only after the preliminary-project stage is complete, management authorizes the project and it is probable that the project will be completed and the software will be used for the function intended. As of October 3, 2020 and September 28, 2019, capitalized software costs, net of accumulated depreciation, totaled $778 million and $927 million, respectively. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software up to 10 years. Parks, Resorts and Other Property Parks, resorts and other property are carried at historical cost. Depreciation is computed on the straight-line method, generally over estimated useful lives as follows: Attractions, buildings and improvements 20 – 40 years Furniture, fixtures and equipment 3 – 25 years Land improvements 20 – 40 years Leasehold improvements Life of lease or asset life if less Leases At the beginning of fiscal 2020, the Company adopted new FASB guidance that requires lessees to record the present value of operating lease payments as right-of-use assets and lease liabilities on the balance sheet. See Note 16 for discussion of the new guidance and the Company’s accounting policy. Goodwill, Other Intangible Assets and Long-Lived Assets The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis. Goodwill is allocated to various reporting units, which are an operating segment or one level below the operating segment. To test goodwill for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of a reporting unit exceeds its fair value. If it is, a quantitative assessment is required. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment requires consideration of recent market transactions, macroeconomic conditions, and changes in projected future cash flows of the reporting unit. The quantitative assessment compares the fair value of each goodwill reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit. In fiscal 2020, the Company performed a qualitative assessment of goodwill for impairment. The impairment test for goodwill requires judgment related to the identification of reporting units, the assignment of assets and liabilities to reporting units including goodwill, and the determination of fair value of the reporting units. To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate. We apply what we believe to be the most appropriate valuation methodology for each of our reporting units. The projected cash flows of our reporting units reflect intersegment revenues and expenses for the sale and use of intellectual property as if it was licensed to an unrelated third party. The discounted cash flow analyses are sensitive to our estimates of future revenue growth and margins for these businesses as well as the discount rates used to calculate the present value of future cash flows. In times of adverse economic conditions in the global economy, the Company’s long-term cash flow projections are subject to a greater degree of uncertainty than usual. If we had established different reporting units or utilized different valuation methodologies or assumptions, the impairment test results could differ, and we could be required to record impairment charges. To test its other indefinite-lived intangible assets for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of each of its indefinite-lived intangible assets exceeds its fair value. If it is, a quantitative assessment is required. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions, and changes in projected future cash flows. The quantitative assessment compares the fair values of indefinite-lived intangible assets to their carrying amounts. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized for the excess. Fair values of indefinite-lived intangible assets are determined based on discounted cash flows or appraised values, as appropriate. The Company has determined that there are currently no legal, competitive, economic or other factors that materially limit the useful life of our FCC licenses and trademarks. Amortizable intangible assets are generally amortized on a straight-line basis over periods up to 40 years. The costs to periodically renew our intangible assets are expensed as incurred. The Company tests long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount may not be recoverable. Once a triggering event has occurred, the impairment test employed is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for use requires a comparison of cash flows expected to be generated over the useful life of an asset group to the carrying amount of the asset group. An asset group is established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other assets and could include assets used across multiple businesses or segments. If the carrying amount of an asset group exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the fair value of the group’s long-lived assets and the carrying amount of the group’s long-lived assets. The impairment is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts, but only to the extent the carrying amount of each asset is above its fair value. For assets held for sale, to the extent the carrying amount is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company recorded non-cash impairment charges of $5.2 billion, $0.6 billion, and $0.2 billion in fiscal 2020, 2019 and 2018, respectively. The fiscal 2020 impairment charges primarily related to impairments of MVPD agreement intangibles assets ($1.9 billion) and goodwill ($3.1 billion) at the International Channels’ business. See Note 19 to the Consolidated Financial Statements for additional discussion on these impairment charges. The fiscal 2019 and 2018 charges primarily related to impairments of investments accounted for under the equity method of accounting recorded in “Equity in the income (loss) of investees” in the Consolidated Statements of Operations. The Company expects its aggregate annual amortization expense for amortizable intangible assets for fiscal 2021 through 2025 to be as follows: 2021 $ 2,055 2022 1,995 2023 1,808 2024 1,570 2025 1,471 Risk Management Contracts In the normal course of business, the Company employs a variety of financial instruments (derivatives) including interest rate and cross-currency swap agreements and forward and option contracts to manage its exposure to fluctuations in interest rates, foreign currency exchange rates and commodity prices. The Company formally documents all relationships between hedges and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company primarily enters into two types of derivatives: hedges of fair value exposure and hedges of cash flow exposure. Hedges of fair value exposure are entered into in order to hedge the fair value of a recognized asset, liability, or a firm commitment. Hedges of cash flow exposure are entered into in order to hedge a forecasted transaction (e.g. forecasted revenue) or the variability of cash flows to be paid or received, related to a recognized liability or asset (e.g. floating rate debt). The Company designates and assigns the derivatives as hedges of forecasted transactions, specific assets or specific liabilities. When hedged assets or liabilities are sold or extinguished or the forecasted transactions being hedged occur or are no longer expected to occur, the Company recognizes the gain or loss on the designated derivatives. The Company’s hedge positions are measured at fair value on the balance sheet. Realized gains and losses from hedges are classified in the income statement consistent with the accounting treatment of the items being hedged. The Company accrues the differential for interest rate swaps to be paid or received under the agreements as interest rates change as adjustments to interest expense over the lives of the swaps. Gains and losses on the termination of effective swap agreements, prior to their original maturity, are deferred and amortized to interest expense over the remaining term of the underlying hedged transactions. The Company enters into derivatives that are not designated as hedges and do not qualify for hedge accounting. These derivatives are intended to offset certain economic exposures of the Company and are carried at fair value with changes in value recorded in earnings. Cash flows from hedging activities are classified in the Consolidated Statements of Cash Flows under the same category as the cash flows from the related assets, liabilities or forecasted transactions (see Notes 9 and 18). Income Taxes Deferred income tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of available evidence, it is more likely than not that some amount of recorded deferred tax assets will not be realized, a valuation allowance is established for the amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized. A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Redeemable Noncontrolling Interests The Company consolidates the results of certain subsidiaries that are less than 100% owned and for which the noncontrolling interest shareholders have rights to require the Company to purchase their interests in these subsidiaries. The most significant of these are BAMTech and Hulu. 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 has the right to sell its interest to the Company and the Company has the right to buy MLB’s interest 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 2021 for $350 million. The Company has the right to acquire the NHL interest in fiscal 2021 for $500 million. The MLB and NHL interests are required to be recorded at a minimum value equal to the greater of (i) their acquisition date fair value adjusted for their share (if any) of earnings, losses, or dividends (“adjusted value”) or (ii) an accreted value from the date of the acquisition to the applicable redemption date (“accreted value”). As the accreted value is generally always higher than the adjusted value, the MLB and NHL interests are not allocated their portion of BAMTech losses. Therefore, the MLB and NHL interests are ac |
Revenues
Revenues | 12 Months Ended |
Oct. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues The following table presents our revenues by segment and major source: 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 15,018 $ — $ — $ 3,673 $ (762) $ 17,929 Advertising 6,374 4 — 4,477 — 10,855 Subscription fees — — — 7,645 — 7,645 Theme park admissions — 4,038 — — — 4,038 Resort and vacations — 3,402 — — — 3,402 Retail and wholesale sales of merchandise, food and beverage — 4,952 — — — 4,952 TV/SVOD distribution licensing 6,489 — 4,557 745 (5,348) 6,443 Theatrical distribution licensing — — 2,134 — — 2,134 Merchandise licensing — 2,674 536 32 — 3,242 Home entertainment — — 1,528 84 — 1,612 Other 512 1,432 881 311 — 3,136 Total revenues $ 28,393 $ 16,502 $ 9,636 $ 16,967 $ (6,110) $ 65,388 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 13,433 $ — $ — $ 2,768 $ (253) $ 15,948 Advertising 6,965 6 — 3,542 — 10,513 Subscription fees — — — 2,115 — 2,115 Theme park admissions — 7,540 — — — 7,540 Resort and vacations — 6,266 — — — 6,266 Retail and wholesale sales of merchandise, food and beverage — 7,716 — — — 7,716 TV/SVOD distribution licensing 4,046 — 2,920 482 (1,705) 5,743 Theatrical distribution licensing — — 4,726 — — 4,726 Merchandise licensing — 2,768 561 51 — 3,380 Home entertainment — — 1,734 97 — 1,831 Other 383 1,929 1,186 331 — 3,829 Total revenues $ 24,827 $ 26,225 $ 11,127 $ 9,386 $ (1,958) $ 69,607 2018 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 11,907 $ — $ — $ 1,372 $ — $ 13,279 Advertising 6,586 7 — 1,311 — 7,904 Subscription fees — — — 168 — 168 Theme park admissions — 7,183 — — — 7,183 Resort and vacations — 5,938 — — — 5,938 Retail and wholesale sales of merchandise, food and beverage — 7,365 — — — 7,365 TV/SVOD distribution licensing 3,120 — 2,340 105 (668) 4,897 Theatrical distribution licensing — — 4,303 — — 4,303 Merchandise licensing — 2,566 556 70 — 3,192 Home entertainment — — 1,647 103 — 1,750 Other 309 1,642 1,219 285 — 3,455 Total revenues $ 21,922 $ 24,701 $ 10,065 $ 3,414 $ (668) $ 59,434 Amounts for fiscal 2018 reflect our historical accounting prior to the adoption of new revenue guidance. The following table presents our revenues by segment and primary geographical markets: 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Americas $ 26,566 $ 12,524 $ 5,671 $ 12,498 $ (5,267) $ 51,992 Europe 1,378 1,982 2,609 2,016 (652) 7,333 Asia Pacific 449 1,996 1,356 2,453 (191) 6,063 Total revenues $ 28,393 $ 16,502 $ 9,636 $ 16,967 $ (6,110) $ 65,388 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Americas $ 23,767 $ 19,868 $ 6,050 $ 5,759 $ (1,639) $ 53,805 Europe 785 3,135 2,956 1,260 (130) 8,006 Asia Pacific 275 3,222 2,121 2,367 (189) 7,796 Total revenues $ 24,827 $ 26,225 $ 11,127 $ 9,386 $ (1,958) $ 69,607 Revenues recognized in the current and prior year 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 fiscal 2020, $1.4 billion was recognized related to performance obligations satisfied as of September 28, 2019. For fiscal 2019, $1.2 billion was recognized related to performance obligations satisfied prior to September 30, 2018. As of October 3, 2020, revenue for unsatisfied performance obligations expected to be recognized in the future is $16 billion , which primarily relates to content to be delivered in the future under existing agreements with television station affiliates and TV/SVOD licensees. Of this amount, we expect to recognize approximately $7 billion in fiscal 2021, $4 billion in fiscal 2022, $2 billion in fiscal 2023 and $3 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee. Payment terms vary by the type and location of our customers and the products or services offered. For certain products or services and customer types, we require payment before the products or services are provided to the customer; in other cases, after appropriate credit evaluations, payment is due in arrears. Advertising contracts, which are generally short term, are billed monthly with payments generally due within 30 days. Payments due under affiliate arrangements are calculated monthly and are generally due within 30 days of month end. Home entertainment terms generally require payment within 60 to 90 days of availability date to the customer. Licensing payment terms vary by contract but are generally collected in advance or over the license term. 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: October 3, September 28, Contract assets $ 70 $ 150 Accounts Receivable Current 11,340 12,755 Non-current 1,789 1,962 Allowance for credit losses (460) (375) Deferred revenues Current 3,688 4,050 Non-current 513 619 Contract assets primarily relate to certain multi-season TV/SVOD licensing contracts. Activity for fiscal 2020 and 2019 related to contract assets was not material. The allowance for credit losses increased from $375 million at September 28, 2019 to $460 million at October 3, 2020 due to additional provisions recorded in fiscal 2020. For fiscal 2020, the Company recognized revenues of $3.4 billion , primarily related to theme park admissions and vacation packages, licensing advances and content sales included in the deferred revenue balance at September 28, 2019. For fiscal 2019, the Company recognized revenues of $2.7 billion primarily related to theme park admissions and vacation packages and licensing and publishing advances included in the deferred revenue balance at September 30, 2018. As a result of COVID-19, the Company has allowed refunds of certain non-refundable deposits that were previously reported as deferred revenue, the most significant of which related to park admission tickets and deposits for vacation packages. Remaining deferred amounts related to these deposits are now classified in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet. 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. 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. These receivables are discounted to present value at an appropriate discount rate at contract inception, and the related revenues are recognized at the discounted amount. 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 whom 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 $1.0 billion as of October 3, 2020. The activity in the allowance for credit loss for fiscal 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 $0.7 billion as of October 3, 2020. The activity in the allowance for credit loss for fiscal 2020 was not material. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 03, 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). We acquired TFCF to enhance the Company’s position as a premier, global entertainment company by increasing our portfolio of creative assets and branded content to be monetized through our film and television studio, theme parks and direct-to-consumer offerings. In connection with the acquisition, outstanding TFCF performance stock units and restricted stock units were either vested upon closing of the acquisition or replaced with new restricted stock units (which require additional service for vesting). The purchase price for TFCF includes $361 million related to TFCF awards that were settled or replaced in connection with the acquisition, and for fiscal 2019, the Company recognized compensation expense of $164 million related to awards that were accelerated to vest upon closing of the acquisition. Additionally, compensation expense of $219 million related to awards that were replaced with new restricted stock units is being recognized over the post-acquisition service period of up to approximately two years. 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 $4.8 billion (Hulu Gain) from remeasuring our initial 30% interest to its estimated fair value, which was determined based on a discounted cash flow analysis. On April 15, 2019, Hulu redeemed WM’s 10% interest in Hulu for $1.4 billion. The redemption was funded by the Company and NBCU. This resulted in the Company’s and NBCU’s interests in Hulu increasing to 67% and 33%, respectively. NBCU’s interest is classified as a redeemable noncontrolling interest on the Company’s Consolidated Balance Sheet. See Note 2 for further discussion of NBCU’s interest. Upon closing of the TFCF acquisition, the Company exchanged new Disney notes for outstanding notes issued by 21st Century Fox America, Inc. with a principal balance of $16.8 billion (see Note 9). 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. In determining the fair value of assets acquired and liabilities assumed, the Company primarily used discounted cash flow analyses. Inputs to the discounted cash flow analyses and other aspects of the allocation of purchase price require judgment. The more significant inputs used in the discounted cash flow analyses and other areas of judgment include (i) future revenue growth or attrition rates (ii) projected margins (iii) discount rates used to present value future cash flows (iv) the amount of synergies expected from the acquisition (v) the economic useful life of assets and; (vi) the evaluation of historical tax positions of TFCF. The following table summarizes our allocation of the purchase price (in billions) (1) : Cash and cash equivalents $ 25.7 Receivables 5.1 Film and television costs 17.7 Investments 1.0 Intangible assets 17.9 Net assets held for sale 11.4 Accounts payable and other liabilities (12.5) Borrowings (21.7) Deferred income taxes (2) (5.7) Other net liabilities acquired (4.0) Noncontrolling interests (10.4) Goodwill (2) 49.8 Fair value of net assets acquired 74.2 Less: Disney’s previously held 30% interest in Hulu (4.7) Total purchase price $ 69.5 (1) Total may not equal the sum of the column due to rounding. (2) In the fourth quarter of fiscal 2020, we adjusted the amount of deferred tax liabilities by $0.6 billion and recorded an offsetting adjustment to increase goodwill for this amount. Intangible assets primarily consist of MVPD agreements, with a weighted average useful life of 9 years, and advertising networks and trade names, with a weighted average useful life of 16 years. The goodwill reflects the value to Disney of increasing our global portfolio of creative assets and branded content to be monetized through our DTC services, film and television studios and theme parks. The amount of goodwill that is deductible for tax purposes is not material. The fair value of investments acquired in the acquisition primarily consist of a 30% interest in Tata Sky Limited and a 50% interest in Endemol Shine Group (sold in July 2020 for $147 million). The fair value of the assets acquired included current trade receivables of $5.2 billion. The gross amount due under the contracts is $5.5 billion. For fiscal 2019, the Company incurred $0.3 billion of acquisition-related expenses, of which $0.2 billion is included in Selling, general, administrative and other, and $0.1 billion related to financing fees is included in “Interest expense, net” in the Company’s Consolidated Statements of Operations. 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 Consolidated Statements of Operations for fiscal 2020 and fiscal 2019. In addition, the table provides the impact of intercompany eliminations of transactions between the Company, TFCF and Hulu: Year Ended October 3, 2020 September 28, 2019 TFCF (before intercompany eliminations): Revenues $ 12,999 $ 7,228 Net loss from continuing operations (245) (958) Hulu (before intercompany eliminations): Revenues $ 7,052 $ 2,865 Net loss from continuing operations (1,017) (695) Intercompany eliminations: Revenues $ (2,956) $ (1,205) Net loss from continuing operations (225) (151) The following pro forma summary presents consolidated information of the Company as if the acquisition of TFCF and consolidation of Hulu had occurred on October 1, 2017: 2019 2018 Revenues $ 78,047 $ 76,468 Net income 7,511 13,733 Net income attributable to Disney 7,206 13,923 Earnings per share attributable to Disney: Diluted $ 3.68 $ 7.66 Basic 3.70 7.71 These pro forma results include adjustments for purposes of consolidating the historical financial results of TFCF and Hulu (net of adjustments to eliminate transactions between Disney and TFCF, Disney and Hulu and Hulu and TFCF). These pro formas for fiscal 2019 and 2018 include $3.1 billion and $3.4 billion (of which $0.4 billion and $0.8 billion related to the RSNs), respectively, to reflect the incremental amortization as a result of recording film and television programming and production costs and finite lived intangible assets at fair value. Interest expense of $0.4 billion and $0.5 billion is included to reflect the cost of borrowings to finance the TFCF acquisition for fiscal 2019 and 2018, respectively. The pro forma results also include $0.9 billion and $0.6 billion of net income attributable to Disney for fiscal 2019 and 2018, respectively, related to TFCF businesses that have been or will be divested (see Note 1). Additionally, fiscal 2018 pro forma results include the Hulu Gain, compensation expense of $0.2 billion related to TFCF equity and cash awards that were accelerated to vest upon closing of the acquisition, and $0.4 billion of acquisition-related expenses. These amounts were recognized by Disney and TFCF in fiscal 2019 but have been excluded from the fiscal 2019 pro forma results. The pro forma results exclude a $10.8 billion gain on sale and $0.5 billion of equity earnings recorded by TFCF in 2019 and 2018, respectively, related to its 39% interest in Sky plc, which was sold by TFCF in October 2018. 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 are as follows: Media Parks, Studio Entertainment Direct-to-Consumer & International Total Balance at Sept. 29, 2018 $ 15,989 $ 4,487 $ 7,094 $ 3,699 $ 31,269 Acquisitions (1) 17,434 1,048 10,711 19,892 49,085 Dispositions — — — — — Other, net — — (8) (53) (61) Balance at Sept. 28, 2019 $ 33,423 $ 5,535 $ 17,797 $ 23,538 $ 80,293 Acquisitions (2) 568 15 98 51 732 Dispositions — — — — — Impairments (See Note 19) — — — (3,074) (3,074) Currency translation adjustments and other, net — — (100) (162) (262) Balance at Oct. 3, 2020 $ 33,991 $ 5,550 $ 17,795 $ 20,353 $ 77,689 (1) Represents the acquisition of TFCF and consolidation of Hulu. (2) Reflects updates to allocation of purchase price for the acquisition of TFCF. |
Other Income
Other Income | 12 Months Ended |
Oct. 03, 2020 | |
Other Income and Expenses [Abstract] | |
Dispositions and Other Income/(Expense) | Other Income Other income, net is as follows: 2020 2019 2018 DraftKings gain $ 973 $ — $ — Gain on sale of an investment 65 — — Hulu gain (see Note 4) — 4,794 — Insurance recoveries related to legal matters — 46 38 Charge for the extinguishment of a portion of the debt originally assumed in the TFCF acquisition (see Note 9) — (511) — Gain on sale of real estate, property rights and other — 28 563 Other income, net $ 1,038 $ 4,357 $ 601 The Company recognized a non-cash gain to adjust its investment in DraftKings, Inc. to fair value (DraftKings gain). |
Investments
Investments | 12 Months Ended |
Oct. 03, 2020 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: October 3, September 28, Investments, equity basis $ 2,632 $ 2,922 Investments, other 1,271 302 $ 3,903 $ 3,224 Investments, Equity Basis The Company’s significant equity investments primarily consist of media investments and include A+E (50% ownership), CTV Specialty Television, Inc. (30% ownership), Endemol Shine Group (50% ownership until sale of the interest in July 2020), Seven TV (20% ownership) and Tata Sky Limited (30% ownership). A summary of combined financial information for equity investments is as follows: Results of Operations: 2020 2019 2018 Revenues $ 7,849 $ 9,405 $ 9,085 Net income (loss) 1,187 133 (152) Balance Sheet October 3, September 28, September 29, Current assets $ 4,133 $ 3,350 $ 4,542 Non-current assets 6,776 9,666 9,998 $ 10,909 $ 13,016 $ 14,540 Current liabilities $ 2,224 $ 2,182 $ 3,197 Non-current liabilities 3,784 5,452 4,840 Redeemable preferred stock — — 1,362 Shareholders’ equity 4,901 5,382 5,141 $ 10,909 $ 13,016 $ 14,540 As of October 3, 2020, the book value of the Company’s equity method investments exceeded our share of the book value of the investees’ underlying net assets by approximately $0.9 billion, which represents amortizable intangible assets and goodwill arising from acquisitions. The Company enters into transactions in the ordinary course of business with our equity investees, primarily related to the licensing of television and film programming. Revenues from these transactions were $0.3 billion, $0.5 billion and $0.8 billion in fiscal 2020, 2019 and 2018, respectively. The Company defers a portion of its profits from transactions with investees and recognizes the deferred amounts as the investee expenses the programming cost. The portion that is deferred reflects our ownership interest in the investee. Investments, Other As of October 3, 2020, the Company has $1.1 billion of securities recorded at fair value and $215 million of net book value related to non-publicly traded securities without a readily determinable fair value. At September 28, 2019, the Company held $290 million of non-publicly traded securities without a readily determinable fair value. Securities held at fair value at September 28, 2019 were not material. In fiscal 2020, the Company recognized $973 million of unrealized gains on securities recorded at fair value in “Other income, net” in the Consolidated Statements of Operations. Realized gains on securities in fiscal 2020 were not material. In fiscal 2019 and 2018, realized gains, unrealized gains and losses and impairments on securities were not material. All other gains and losses on securities are reported in “Interest expense, net” in the Consolidated Statements of Operations. |
International Theme Parks
International Theme Parks | 12 Months Ended |
Oct. 03, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
International Theme Parks | International Theme ParksThe Company has a 48% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort (together, the Asia Theme Parks), which are both VIEs consolidated in the Company’s financial statements. See Note 2 for the Company’s policy on consolidating VIEs. In addition, the Company has 100% ownership of Disneyland Paris. The Asia Theme Parks and 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 Consolidated Balance Sheets: October 3, 2020 September 28, 2019 Cash and cash equivalents $ 372 $ 655 Other current assets 91 102 Total current assets 463 757 Parks, resorts and other property 6,720 6,608 Other assets 191 9 Total assets $ 7,374 $ 7,374 Current liabilities $ 486 $ 447 Borrowings - long-term 1,213 1,114 Other long-term liabilities 403 189 Total liabilities $ 2,102 $ 1,750 The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Consolidated Statement of Operations for fiscal 2020: Revenues $ 1,805 Costs and expenses (3,032) Equity in the loss of investees (19) Asia Theme Parks’ royalty and management fees of $74 million for fiscal 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 fiscal 2020 Consolidated Statement of Cash Flows were $637 million used in operating activities, $756 million used in investing activities and $172 million generated from financing activities. Approximately a quarter of the cash flows used in operating activities, 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 52% and a 48% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have both provided loans to Hong Kong Disneyland Resort with outstanding balances of $145 million and $97 million, respectively. The interest rate is three month HIBOR plus 2%, and the maturity date is September 2025. The Company’s loan is eliminated in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($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 October 3, 2020. Hong Kong Disneyland is undergoing a multi-year expansion estimated to cost HK $10.9 billion ($1.4 billion). The Company and HKSAR have agreed to fund the expansion on an equal basis through equity contributions, which totaled $188 million and $160 million in fiscal 2020 and 2019, respectively. To date, the Company and HKSAR have funded a total of $526 million. HKSAR has the right to receive additional shares over time to the extent Hong Kong Disneyland Resort exceeds certain return on asset performance targets. The amount of additional shares HKSAR can receive is capped on both an annual and cumulative basis and could decrease the Company’s equity interest by up to an additional 6 percentage points over a period no shorter than 12 years. Assuming HK $10.9 billion is contributed in the expansion, the impact to the Company’s equity interest would be limited to 4 percentage points. 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 $863 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 October 3, 2020, the total amount outstanding under the line of credit was $65 million. These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 7.6 billion yuan (approximately $1.1 billion), bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $0.2 billion) line of credit bearing interest at 8%. As of October 3, 2020, the total amount outstanding under the line of credit was $0.6 billion yuan (approximately $90 million). |
Produced and Acquired_Licensed
Produced and Acquired/Licensed Content Costs and Advances | 12 Months Ended |
Oct. 03, 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. This change did not 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 that is predominantly monetized individually 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. Participations and residuals are expensed over the applicable product life cycle based upon the ratio of the current period’s revenues to the estimated remaining total revenues for each production. Production costs that are 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. Participations and residuals are generally expensed in line with the pattern of usage. 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. Acquired film and television libraries are generally amortized on a straight-line basis over 20 years from the date of acquisition. Acquired film and television libraries include content that was initially released three years prior to its acquisition, except it excludes the prior seasons of episodic television programming still in production at the date of its acquisition. 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, licensed and acquired library content by predominant monetization strategy is as follows: As of October 3, 2020 Predominantly Monetized Individually Predominantly Total Produced and acquired library content Theatrical film costs Released, less amortization $ 3,000 $ 2,601 $ 5,601 Completed, not released 522 210 732 In-process 3,322 259 3,581 In development or pre-production 262 16 278 $ 7,106 $ 3,086 10,192 Television costs Released, less amortization $ 2,090 $ 5,584 $ 7,674 Completed, not released 33 510 543 In-process 263 1,831 2,094 In development or pre-production 6 87 93 $ 2,392 $ 8,012 10,404 Licensed content - Programming rights and advances 6,597 Total produced, licensed and acquired library content $ 27,193 Current portion $ 2,171 Non-current portion $ 25,022 Amortization of produced, licensed and acquired library content is as follows: Year Ended October 3, 2020 Predominantly Predominantly Total Theatrical film costs $ 1,711 $ 962 $ 2,673 Television costs 2,594 4,070 6,664 Total produced and acquired library content costs $ 4,305 $ 5,032 9,337 Licensed content - Programming rights and advances 11,241 Total produced, licensed and acquired library content costs (1) $ 20,578 (1) Primarily included in “Costs of services” in the Consolidated Statements of Operations. Amortization of produced, licensed and acquired library content for the year ended September 28, 2019 was $17.1 billion. Total expected amortization by fiscal year of completed (released and not released) produced, licensed and acquired library content on the balance sheet as of October 3, 2020 is as follows: Predominantly Monetized Individually Predominantly Total Produced content Theatrical film costs Released 2021 $ 731 $ 460 $ 1,191 2022 347 387 734 2023 195 207 402 Completed, not released 2021 488 8 496 Television costs Released 2021 $ 893 $ 1,476 $ 2,369 2022 460 892 1,352 2023 286 570 856 Completed, not released 2021 4 182 186 Licensed content - Television programming rights and advances 2021 $ — $ 3,882 $ 3,882 2022 — 1,338 1,338 2023 — 606 606 Approximately $2.3 billion of accrued participations and residual liabilities will be paid in fiscal 2021. At October 3, 2020, acquired film and television libraries have remaining unamortized costs of $3.7 billion, which are generally being amortized straight-line over a weighted-average remaining period of approximately 18 years. |
Borrowings
Borrowings | 12 Months Ended |
Oct. 03, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company’s borrowings, including the impact of interest rate and cross-currency swaps, are summarized as follows: October 3, 2020 Oct. 3, 2020 Sept. 28, 2019 Stated Interest Rate (1) Pay Floating Interest rate and Cross- Currency Swaps (2) Effective Interest Rate (3) Swap Commercial paper $ 2,023 $ 5,342 — $ — 0.96% U.S. dollar denominated notes (4) 52,736 39,424 3.81% 13,875 3.08% 2021-2031 Foreign currency denominated debt 1,983 1,044 2.99% 1,920 2.47% 2027 Other (5) 583 62 — 57,325 45,872 3.64% 15,795 2.98% Asia Theme Parks borrowings 1,303 1,114 2.11% — 5.51% Total borrowings 58,628 46,986 3.57% 15,795 3.04% Less current portion 5,711 8,857 3.24% 750 2.76% Total long-term borrowings $ 52,917 $ 38,129 $ 15,045 (1) The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at October 3, 2020; these rates are not necessarily an indication of future interest rates. (2) Amounts represent notional values of interest rate and cross-currency swaps outstanding as of October 3, 2020. (3) The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs. (4) Includes net debt issuance discounts, costs and purchase accounting adjustments totaling a net premium of $2.2 billion and a net premium of $2.5 billion at October 3, 2020 and September 28, 2019, respectively. (5) Includes market value adjustments for debt with qualifying hedges, which increase borrowings by $509 million and $31 million at October 3, 2020 and September 28, 2019, respectively. Commercial Paper At October 3, 2020, the Company’s bank facilities, which are with a syndicate of lenders, were as follows: Committed Capacity Unused Facility expiring March 2021 $ 5,250 $ — $ 5,250 Facility expiring April 2021 5,000 — 5,000 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 Total $ 17,250 $ — $ 17,250 These bank facilities (other than the facility expiring April 2021) support commercial paper borrowings. All of the facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, or a fixed spread in the case of the facility expiring in April 2021, 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 1.80%. 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 October 3, 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 October 3, 2020, the Company has $988 million of outstanding letters of credit, of which none were issued under this facility. Commercial paper activity is as follows: Commercial paper with original maturities less than three months, net (1) Commercial paper with original maturities greater than three months Total Balance at Sept. 29, 2018 $ 50 $ 955 $ 1,005 Additions 1,881 6,889 8,770 Payments — (4,452) (4,452) Other Activity 3 16 19 Balance at Sept. 28, 2019 $ 1,934 $ 3,408 $ 5,342 Additions — 11,500 11,500 Payments (1,961) (12,893) (14,854) Other Activity 27 8 35 Balance at Oct. 3, 2020 $ — $ 2,023 $ 2,023 (1) Borrowings and reductions of borrowings are reported net. U.S. Dollar Denominated Notes At October 3, 2020, the Company had $52.7 billion of U.S. dollar denominated notes with maturities ranging from 1 to 76 years. The debt outstanding includes $51.2 billion of fixed rate notes, which have stated interest rates that range from 1.65% to 9.50% and $1.5 billion of floating rate notes that bear interest at U.S. LIBOR plus or minus a spread. At October 3, 2020, the effective rate on the floating rate notes was 0.61%. On March 20, 2019, the Company assumed public debt with a fair value of $21.2 billion (principal balance of $17.4 billion) upon completion of the TFCF acquisition. On March 20, 2019, 96% (principal balance of $16.8 billion) of the assumed debt was exchanged for senior notes of TWDC, with essentially the same terms. In September 2019, the Company repurchased previously exchanged debt with a carrying value of approximately $3.5 billion (principal balance of approximately $2.7 billion) and TFCF debt with a carrying value of approximately $280 million (principal balance of approximately $260 million) for $4.3 billion and recognized a charge of $511 million in “Other income, net” in the fiscal 2019 Consolidated Statement of Operations. Foreign Currency Denominated Debt In fiscal 2018, the Company issued Canadian $1.3 billion ($0.9 billion) of fixed rate senior notes, which bears interest at 2.76% and matures in October 2024. The Company also entered into pay-floating interest rate and cross currency swaps that effectively convert the borrowing to a variable rate U.S. dollar denominated borrowing indexed to LIBOR. On March 30, 2020, the Company issued Canadian $1.3 billion ($1.0 billion) of fixed rate senior notes, which bear interest at 3.057% and mature in March 2027. The Company also entered into pay-floating interest rate and cross currency swaps that effectively convert the borrowing to a variable rate U.S. dollar denominated borrowing indexed to LIBOR. RSN Debt On March 20, 2019, as part of the TFCF acquisition, the Company assumed $1.1 billion of debt related to one of the RSNs. In August 2019, the RSN was sold and the buyer has assumed the outstanding debt obligation. Credit Facilities to Acquire TFCF On March 20, 2019, the Company borrowed $31.1 billion under two 364-day unsecured bridge loan facilities with a bank syndicate to fund the cash component of the TFCF acquisition. On March 21, 2019, the Company repaid one bridge loan facility in the amount of $16.1 billion, utilizing cash acquired in the TFCF transaction, and terminated the facility. The remaining 364-day unsecured bridge loan facility in the amount of $15.0 billion was repaid and terminated during the fourth quarter of fiscal 2019 using the after-tax proceeds from the divestiture of the RSNs and proceeds from new borrowings. Cruise Ship Credit Facilities The Company has credit facilities to finance up to 80% of the contract price of three new cruise ships, which were originally scheduled to be delivered in 2021, 2022 and 2023. The impact of COVID-19 on the shipyard has resulted in a delay to the delivery of the cruise ships, which are now scheduled to be delivered in 2022, 2024 and 2025. As a result, the Company revised the availability periods for the credit facilities. Under the facilities, $1.0 billion in financing is available beginning in October 2021, $1.1 billion is available beginning in August 2023 and $1.1 billion is available beginning in August 2024. Each tranche of financing may be utilized for a period of 18 months from the initial availability date. If utilized, the interest rates will be fixed at 3.48%, 3.80% and 3.74%, respectively, and the loan and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees. Asia Theme Parks Borrowings HKSAR provided Hong Kong Disneyland Resort with loans totaling HK$0.8 billion ($97 million). The interest rate is three month HIBOR plus 2%, and the maturity date is September 2025. Shendi has provided Shanghai Disney Resort with loans totaling 7.6 billion yuan (approximately $1.1 billion) bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $0.2 billion) line of credit bearing interest at 8%. As of October 3, 2020 the total amount outstanding under the line of credit was 0.6 billion yuan (approximately $90 million). Total borrowings, excluding market value adjustments and debt issuance premiums, discounts and costs, have the following scheduled maturities: Fiscal Year: Before Asia Total 2021 $ 5,620 $ 92 $ 5,712 2022 3,858 — 3,858 2023 1,242 — 1,242 2024 2,869 — 2,869 2025 3,640 — 3,640 Thereafter 37,387 1,211 38,598 $ 54,616 $ 1,303 $ 55,919 The Company capitalizes interest on assets constructed for its parks and resorts and on certain film and television productions. In fiscal 2020, 2019 and 2018, total interest capitalized was $157 million, $222 million and $125 million, respectively. Interest expense, net of capitalized interest, for fiscal 2020, 2019 and 2018 was $1,647 million, $1,246 million and $682 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. Tax Cuts and Jobs Act In December 2017, new federal income tax legislation, the “Tax Cuts and Jobs Act” (Tax Act), was signed into law. The most significant impacts on the Company are as follows: • Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from 35.0% to 21.0%. Because of our fiscal year end, the Company’s fiscal 2018 statutory federal tax rate was 24.5% and is 21.0% in fiscal 2019 and thereafter. • The Company remeasured its U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes will be realized (either 24.5% for fiscal 2018 or 21.0% thereafter) (Deferred Remeasurement). In fiscal 2018, the Company recognized a benefit of approximately $2.2 billion from the Deferred Remeasurement. • A one-time tax was due on certain accumulated foreign earnings (Deemed Repatriation Tax), payable over eight years beginning in fiscal 2018. The effective tax rate was generally 15.5% on the portion of the earnings held in cash and cash equivalents and 8% on the remainder. In fiscal 2018, the Company recognized a charge for the Deemed Repatriation Tax of approximately $0.4 billion. Generally there will no longer be a U.S. federal income tax cost arising from the repatriation of foreign earnings. • The Company will generally be eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions commenced after September 27, 2017 and placed in service by the end of fiscal 2022. The immediate deduction phases out for assets placed in service in fiscal years 2023 through 2027. • The domestic production activity deduction was eliminated in fiscal 2019 and thereafter. • Starting in fiscal 2019, certain foreign derived income may be taxed in the U.S. at an effective rate of approximately 13% (which increases to approximately 16% in 2025) rather than the general statutory rate of 21%. • Starting in fiscal 2019, certain foreign earnings may be taxed at a minimum effective rate of approximately 13% (which increases to approximately 16% in 2025). The Company’s policy is to expense the tax on these earnings in the period the earnings are taxable in the U.S. Provision for Income Taxes and Deferred Tax Assets and Liabilities Income (Loss) Before Income Taxes 2020 2019 2018 Domestic (including U.S. exports) $ 4,706 $ 12,389 $ 12,914 Foreign subsidiaries (1) (6,449) 1,534 1,815 Total income (loss) from continuing operations (1,743) 13,923 14,729 Income (loss) from discontinued operations (42) 726 — $ (1,785) $ 14,649 $ 14,729 (1) Includes goodwill and intangible asset impairment in fiscal 2020. Income Tax Expense (Benefit) Current 2020 2019 2018 Federal $ 95 $ 14 $ 2,240 State 148 112 362 Foreign (1) 731 824 642 974 950 3,244 Deferred Federal (2) 279 1,829 (1,577) State (29) 259 (20) Foreign (3) (525) (12) 16 (275) 2,076 (1,581) Income tax expense from continuing operations 699 3,026 1,663 Income tax expense from discontinued operations (10) 39 — $ 689 $ 3,065 $ 1,663 (1) Includes foreign withholding taxes. (2) Includes the Tax Act Deferred Remeasurement in fiscal 2018. (3) Includes the tax effect of the intangible impairment in fiscal 2020. Components of Deferred Tax (Assets) and Liabilities October 3, 2020 September 28, 2019 Deferred tax assets Net operating losses and tax credit carryforwards (1) $ (3,137) $ (2,181) Accrued liabilities (2,952) (2,575) Lease liabilities (825) (23) Other (652) (540) Total deferred tax assets (7,566) (5,319) Deferred tax liabilities Depreciable, amortizable and other property 8,574 7,710 Investment in U.S. entities 1,956 2,258 Right-of-use assets 740 — Licensing revenues 189 573 Investment in foreign entities 266 146 Other 390 212 Total deferred tax liabilities 12,115 10,899 Net deferred tax liability before valuation allowance 4,549 5,580 Valuation allowance 2,410 1,912 Net deferred tax liability $ 6,959 $ 7,492 (1) As of October 3, 2020 and September 28, 2019, includes approximately $1.4 billion and $1.0 billion, respectively, of International Theme Park net operating losses and approximately $0.7 billion and $0.2 billion, respectively of foreign tax credits in the U.S. The International Theme Park net operating losses are primarily in France and, to a lesser extent, Hong Kong and China. Losses in France and Hong Kong have an indefinite carryforward period and losses in China have a five-year carryforward period. Foreign tax credits in the U.S. have a ten-year carryforward period. The following table details the change in valuation allowance for fiscal 2020, 2019 and 2018 (in billions): Balance at Beginning of Period Charges to Tax Expense Changes Due to Balance at End of Period Year ended October 3, 2020 $ 1.9 $ 0.6 $ (0.1) $ 2.4 Year ended September 28, 2019 1.4 (0.1) 0.6 1.9 Year ended September 29, 2018 1.7 (0.3) — 1.4 Reconciliation of the effective income tax rate to the federal rate for continuing operations 2020 2019 2018 Federal income tax rate 21.0 % 21.0 % 24.5 % State taxes, net of federal benefit 3.4 2.2 1.9 Foreign derived income — (1.1) — Domestic production activity deduction — — (1.4) Goodwill impairment (41.1) — — Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (13.2) 0.1 (1.1) Legislative changes 4.4 (0.3) (11.5) Valuation allowance (14.6) 0.1 0.4 Other, including tax reserves and related interest — (0.3) (1.5) (40.1 %) 21.7 % 11.3 % Unrecognized tax benefits A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows: 2020 2019 2018 Balance at the beginning of the year $ 2,952 $ 648 $ 832 Increases due to acquisitions 34 2,728 — Increases for current year tax positions 26 84 64 Increases for prior year tax positions 134 143 48 Decreases in prior year tax positions (99) (61) (135) Settlements with taxing authorities (307) (590) (161) Balance at the end of the year $ 2,740 $ 2,952 $ 648 The fiscal year-end 2020, 2019 and 2018 balances include $2.1 billion, $2.4 billion and $0.5 billion, respectively, that if recognized, would reduce our income tax expense and effective tax rate. These amounts are net of the offsetting benefits from other tax jurisdictions. At October 3, 2020, September 28, 2019 and September 29, 2018, the Company had $1.1 billion, $1.0 billion and $0.2 billion, respectively, in accrued interest and penalties related to unrecognized tax benefits. During fiscal 2020, 2019 and 2018, the Company recorded additional interest and penalties of $211 million, $802 million (of which the substantial majority is due to the acquisition of TFCF) and $47 million, respectively, and recorded reductions in accrued interest and penalties of $101 million, $96 million and $100 million, respectively, as a result of audit settlements and other prior-year adjustments. The Company’s policy is to report interest and penalties as a component of income tax expense. The Company is no longer subject to U.S. federal examination for years prior to 2017 for The Walt Disney Company and for years prior to 2014 for TFCF. The Company is no longer subject to examination in any of its major state or foreign tax jurisdictions for years prior to 2008. In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to the resolution of certain tax matters, which could include payments on those tax matters. These resolutions and payments could reduce our unrecognized tax benefits by $334 million. 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 $0.2 billion deferred tax asset with an offsetting increase to retained earnings. Other In fiscal 2020, 2019 and 2018, the Company recognized income tax benefits of $64 million, $41 million and $52 million, respectively for the excess of equity-based compensation deductions over amounts recorded based on the grant date fair value. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 12 Months Ended |
Oct. 03, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Programs | Pension and Other Benefit Programs The Company maintains pension and postretirement medical benefit plans covering certain of its employees not covered by union or industry-wide plans. The Company has defined benefit pension plans that cover employees hired prior to January 1, 2012. For employees hired after this date, the Company has a defined contribution plan. Benefits under these pension plans are generally based on years of service and/or compensation and generally require 3 years of vesting service. Employees generally hired after January 1, 1987 for certain of our media businesses and other employees generally hired after January 1, 1994 are not eligible for postretirement medical benefits. In addition, the Company has a defined benefit plan for TFCF employees for which benefits stopped accruing in June 2017. Defined Benefit Plans The Company measures the actuarial value of its benefit obligations and plan assets for its defined benefit pension and postretirement medical benefit plans at September 30 and adjusts for any plan contributions or significant events between September 30 and our fiscal year end. In connection with our fiscal 2019 acquisition of TFCF, we assumed net pension and postretirement obligations of $237 million ($824 million in obligations and $587 million in plan assets). The following chart summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with the defined benefit pension and postretirement medical benefit plans: Pension Plans Postretirement Medical Plans October 3, September 28, October 3, September 28, Projected benefit obligations Beginning obligations $ (18,531) $ (14,500) $ (1,946) $ (1,609) Acquisition of TFCF — (759) — (65) Service cost (410) (345) (10) (8) Interest cost (527) (592) (56) (67) Actuarial loss (1) (1,958) (2,923) (127) (234) Plan amendments and other 1 32 (12) (11) Benefits paid 662 534 47 48 Curtailments 3 22 — — Ending obligations $ (20,760) $ (18,531) $ (2,104) $ (1,946) Fair value of plans’ assets Beginning fair value $ 14,878 $ 12,728 $ 762 $ 731 Acquisition of TFCF — 587 — — Actual return on plan assets 770 690 38 33 Contributions 664 1,461 9 37 Benefits paid (662) (534) (47) (48) Expenses and other (52) (54) 9 9 Ending fair value $ 15,598 $ 14,878 $ 771 $ 762 Underfunded status of the plans $ (5,162) $ (3,653) $ (1,333) $ (1,184) Amounts recognized in the balance sheet Non-current assets $ 20 $ 5 $ — $ — Current liabilities (59) (54) (5) (5) Non-current liabilities (5,123) (3,604) (1,328) (1,179) $ (5,162) $ (3,653) $ (1,333) $ (1,184) (1) The actuarial loss for both fiscal 2020 and 2019 was primarily due to a reduction in the discount rate from the rate that was used in the preceding fiscal year. The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans 2020 2019 2018 2020 2019 2018 Service cost $ 410 $ 345 $ 350 $ 10 $ 8 $ 10 Other costs (benefits): Interest cost 527 592 489 56 67 60 Expected return on plan assets (1,084) (978) (901) (57) (56) (53) Amortization of prior-year service costs 13 13 13 — — — Recognized net actuarial loss 544 260 348 14 — 14 Total other costs (benefits) — (113) (51) 13 11 21 Net periodic benefit cost $ 410 $ 232 $ 299 $ 23 $ 19 $ 31 In fiscal 2019, the Company adopted new FASB accounting guidance on the presentation of the components of net periodic pension and postretirement benefit cost (“net periodic benefit cost”). This guidance requires the Company to present the service cost component of net periodic benefit cost in the same line items on the statement of operations as other compensation costs of the related employees (i.e. “Costs and expenses” in the Consolidated Statements of Operations). All of the other components of net periodic benefit cost (“other costs/benefits”) are presented as a component of “Interest expense, net” in the Consolidated Statements of Operations. The other costs/benefits in fiscal 2018 were not material and are reported in “Costs and expenses”. In fiscal 2021, we expect pension and postretirement medical costs to increase by $143 million to $576 million due to the impacts of updated mortality assumptions and a lower discount rate. Key assumptions are as follows: Pension Plans Postretirement Medical Plans 2020 2019 2018 2020 2019 2018 Discount rate used to determine the fiscal year‑end benefit obligation 2.82 % 3.22 % 4.31 % 2.80 % 3.22 % 4.31 % Discount rate used to determine the interest cost component of net periodic benefit cost 2.94 % 4.09 % 3.46 % 2.95 % 4.10 % 3.49 % Rate of return on plan assets 7.00 % 7.25 % 7.50 % 7.00 % 7.25 % 7.50 % Weighted average rate of compensation increase to determine the fiscal year‑end benefit obligation 3.20 % 3.20 % 3.20 % n/a n/a n/a Year 1 increase in cost of benefits n/a n/a n/a 7.00 % 7.00 % 7.00 % Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) n/a n/a n/a 4.25 % 4.25 % 4.25 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2034 2033 2032 AOCI, before tax, as of October 3, 2020 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Total Prior service cost $ 27 $ — $ 27 Net actuarial loss 8,915 429 9,344 Total amounts included in AOCI 8,942 429 9,371 Prepaid (accrued) pension cost (3,780) 904 (2,876) Net balance sheet liability $ 5,162 $ 1,333 $ 6,495 Plan Funded Status The projected benefit obligation, accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $19.5 billion, $18.1 billion and $14.4 billion, respectively, as of October 3, 2020 and $17.5 billion, $16.1 billion and $13.9 billion, respectively, as of September 28, 2019. For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and aggregate fair value of plan assets were $19.8 billion and $14.6 billion, respectively, as of October 3, 2020 and $18.5 billion and $14.8 billion respectively, as of September 28, 2019. The Company’s total accumulated pension benefit obligations at October 3, 2020 and September 28, 2019 were $19.1 billion and $17.0 billion, respectively. Approximately 98% was vested as of both October 3, 2020 and September 28, 2019. The accumulated postretirement medical benefit obligations and fair value of plan assets for postretirement medical plans with accumulated postretirement medical benefit obligations in excess of plan assets were $2.1 billion and $0.8 billion, respectively, at October 3, 2020 and $1.9 billion and $0.8 billion, respectively, at September 28, 2019. Plan Assets A significant portion of the assets of the Company’s defined benefit plans are managed in third-party master trusts. The investment policy and allocation of the assets in the master trusts were approved by the Company’s Investment and Administrative Committee, which has oversight responsibility for the Company’s retirement plans. The investment policy ranges for the major asset classes are as follows: Asset Class Minimum Maximum Equity investments 30% 60% Fixed income investments 20% 40% Alternative investments 10% 30% Cash & money market funds —% 10% The primary investment objective for the assets within the master trusts is the prudent and cost effective management of assets to satisfy benefit obligations to plan participants. Financial risks are managed through diversification of plan assets, selection of investment managers and through the investment guidelines incorporated in investment management agreements. Investments are monitored to assess whether returns are commensurate with risks taken. The long-term asset allocation policy for the master trusts was established taking into consideration a variety of factors that include, but are not limited to, the average age of participants, the number of retirees, the duration of liabilities and the expected payout ratio. Liquidity needs of the master trusts are generally managed using cash generated by investments or by liquidating securities. Assets are generally managed by external investment managers pursuant to investment management agreements that establish permitted securities and risk controls commensurate with the account’s investment strategy. Some agreements permit the use of derivative securities (futures, options, interest rate swaps, credit default swaps) that enable investment managers to enhance returns and manage exposures within their accounts. Fair Value Measurements of Plan Assets Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is generally classified in one of the following categories of the fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable Investments that are valued using the net asset value (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The following is a description of the valuation methodologies used for assets reported at fair value. The methodologies used at October 3, 2020 and September 28, 2019 are the same. Level 1 investments are valued based on reported market prices on the last trading day of the fiscal year. Investments in common and preferred stocks are valued based on an exchange-listed price or a broker’s quote in an active market. Investments in U.S. Treasury securities are valued based on a broker’s quote in an active market. Level 2 investments in government and federal agency bonds, corporate bonds and mortgage-backed securities (MBS) and asset-backed securities are valued using a broker’s quote in a non-active market or an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates. Derivative financial instruments are valued based on models that incorporate observable inputs for the underlying securities, such as interest rates or foreign currency exchange rates. The Company’s defined benefit plan assets are summarized by level in the following tables: As of October 3, 2020 Description Level 1 Level 2 Total Plan Asset Mix Cash $ 207 $ — $ 207 1% Common and preferred stocks (1) 3,308 — 3,308 20% Mutual funds 1,154 — 1,154 7% Government and federal agency bonds, notes and MBS 2,326 354 2,680 16% Corporate bonds — 935 935 6% Other mortgage- and asset-backed securities — 106 106 1% Derivatives and other, net (2) 7 5 —% Total investments in the fair value hierarchy $ 6,993 $ 1,402 $ 8,395 Assets valued at NAV as a practical expedient: Common collective funds 3,993 24% Alternative investments 3,375 21% Money market funds and other 606 4% Total investments at fair value $ 16,369 100% As of September 28, 2019 Description Level 1 Level 2 Total Plan Asset Mix Cash $ 197 $ — $ 197 1% Common and preferred stocks (1) 3,468 — 3,468 22% Mutual funds 1,140 — 1,140 7% Government and federal agency bonds, notes and MBS 2,042 404 2,446 16% Corporate bonds — 580 580 4% Other mortgage- and asset-backed securities — 127 127 1% Derivatives and other, net (6) (21) (27) —% Total investments in the fair value hierarchy $ 6,841 $ 1,090 $ 7,931 Assets valued at NAV as a practical expedient: Common collective funds 3,691 24% Alternative investments 2,725 17% Money market funds and other 1,293 8% Total investments at fair value $ 15,640 100% (1) Includes 2.9 million shares of Company common stock valued at $355 million (2% of total plan assets) and 2.9 million shares valued at $373 million (2% of total plan assets) at October 3, 2020 and September 28, 2019, respectively. Uncalled Capital Commitments Alternative investments held by the master trust include interests in funds that have rights to make capital calls to the investors. In such cases, the master trust would be contractually obligated to make a cash contribution at the time of the capital call. At October 3, 2020, the total committed capital still uncalled and unpaid was $1.0 billion. Plan Contributions During fiscal 2020, the Company made $673 million of contributions to its pension and postretirement medical plans. The Company currently expects to make approximately $500 million to $600 million in pension and postretirement medical plan contributions in fiscal 2021. Final minimum funding requirements for fiscal 2021 will be determined based on a January 1, 2021 funding actuarial valuation, which is expected to be received during the fourth quarter of fiscal 2021. Estimated Future Benefit Payments The following table presents estimated future benefit payments for the next ten fiscal years: Pension Postretirement Medical Plans (1) 2021 $ 678 $ 59 2022 661 63 2023 691 67 2024 729 72 2025 771 76 2026 – 2030 4,433 446 (1) Estimated future benefit payments are net of expected Medicare subsidy receipts of $85 million. Assumptions Assumptions, such as discount rates, long-term rate of return on plan assets and the healthcare cost trend rate, have a significant effect on the amounts reported for net periodic benefit cost as well as the related benefit obligations. Discount Rate — The assumed discount rate for pension and postretirement medical plans reflects the market rates for high-quality corporate bonds currently available. The Company’s discount rate was determined by considering yield curves constructed of a large population of high-quality corporate bonds and reflects the matching of the plans’ liability cash flows to the yield curves. The Company measures service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. Long-term rate of return on plan assets — The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and alternative investments. When determining the long-term rate of return on plan assets, the Company considers long-term rates of return on the asset classes (both historical and forecasted) in which the Company expects the pension funds to be invested. The following long-term rates of return by asset class were considered in setting the long-term rate of return on plan assets assumption: Equity Securities 6 % to 10 % Debt Securities 2 % to 4 % Alternative Investments 6 % to 11 % Healthcare cost trend rate — The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates for the postretirement medical benefit plans. The 2020 actuarial valuation assumed a 7.00% annual rate of increase in the per capita cost of covered healthcare claims with the rate decreasing in even increments over fourteen years until reaching 4.25%. Sensitivity — A one percentage point (ppt) change in the discount rate and expected long-term rate of return on plan assets would have the following effects on the projected benefit obligations for pension and postretirement medical plans as of October 3, 2020 and on cost for fiscal 2021: Discount Rate Expected Long-Term Increase (decrease) Benefit Projected Benefit Obligations Benefit 1 ppt decrease $ 351 $ 3,988 $ 164 1 ppt increase (303) (3,380) (164) Multiemployer Benefit Plans The Company participates in a number of multiemployer pension plans under union and industry-wide collective bargaining agreements that cover our union-represented employees and expenses its contributions to these plans as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans. For example: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers. • If a participating employer chooses to stop participating in these multiemployer plans, the employer may be required to pay those plans an amount based on the underfunded status of the plan. The Company also participates in several multiemployer health and welfare plans that cover both active and retired employees. Health care benefits are provided to participants who meet certain eligibility requirements under the applicable collective bargaining unit. The following table sets forth our contributions to multiemployer pension and health and welfare benefit plans: 2020 2019 2018 Pension plans $ 221 $ 189 $ 144 Health & welfare plans 217 218 172 Total contributions $ 438 $ 407 $ 316 Defined Contribution Plans The Company has defined contribution retirement plans for domestic employees who began service after December 31, 2011 and are not eligible to participate in the defined benefit pension plans. In general, the Company contributes from 3% to 9% of an employee’s compensation depending on the employee’s age and years of service with the Company up to plan limits. The Company has savings and investment plans that allow eligible employees to contribute up to 50% of their salary through payroll deductions depending on the plan in which the employee participates. The Company matches 50% of the employee’s contribution up to plan limits. In fiscal 2020, 2019 and 2018, the costs of these defined contribution plans were $217 million, $208 million and $162 million, respectively. The Company also has defined contribution retirement plans for employees in our international operations. The costs of these defined contribution plans were $25 million, $25 million and $21 million in fiscal years 2020, 2019 and 2018, respectively. |
Equity
Equity | 12 Months Ended |
Oct. 03, 2020 | |
Equity [Abstract] | |
Equity | Equity The Company paid the following dividends in fiscal 2020, 2019 and 2018: 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 $0.84 $1.2 billion Fourth Quarter of Fiscal 2018 First Half 2018 $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half 2017 The Board of Directors did not declare a dividend with respect to fiscal year 2020 operations. As a result of the acquisition of TFCF, TWDC became the parent entity of both TFCF and TWDC Enterprises 18 Corp. (formerly known as The Walt Disney Company and referred to herein as Legacy Disney). TWDC issued 307 million shares of common stock to acquire TFCF (see Note 4), and all the outstanding shares of Legacy Disney (other than shares of Legacy Disney held in treasury that were not held on behalf of a third party) were converted on a one-for-one basis into new publicly traded shares of TWDC. In March 2019, Legacy Disney terminated its share repurchase program, and 1.4 billion treasury shares were canceled, which resulted in a decrease to common stock and retained earnings of $17.6 billion and $49.1 billion, respectively. The cost of treasury shares canceled was allocated to common stock based on the ratio of treasury shares to total shares outstanding, with the excess allocated to retained earnings. At October 3, 2020, TWDC held 19 million treasury shares. TWDC’s authorized share capital consists of 4.6 billion common shares at $0.01 par value and 100 million preferred shares at $0.01 par value, both of which represent the same authorized capital structure in effect prior to the completion of the TFCF acquisition and as of September 29, 2018. As of September 29, 2018, Legacy Disney had 40 thousand preferred series B shares authorized with $0.01 par value, which were eliminated in fiscal 2019. In fiscal 2018, the Company repurchased 35 million shares of its common stock for $3.6 billion. The following table summarizes the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments (1) Unrecognized Foreign AOCI AOCI, before tax Balance at September 30, 2017 $ (93) $ (4,906) $ (523) $ (5,522) Unrealized gains (losses) arising during the period 259 203 (204) 258 Reclassifications of net (gains) losses to net income 35 380 — 415 Balance at September 29, 2018 $ 201 $ (4,323) $ (727) $ (4,849) Unrealized gains (losses) arising during the period 136 (3,457) (359) (3,680) Reclassifications of net (gains) losses to net income (185) 278 — 93 Reclassifications to retained earnings (23) — — (23) Balance at September 28, 2019 $ 129 $ (7,502) $ (1,086) $ (8,459) Unrealized gains (losses) arising during the period (57) (2,468) (2) (2,527) Reclassifications of net (gains) losses to net income (263) 547 — 284 Balance at October 3, 2020 $ (191) $ (9,423) $ (1,088) $ (10,702) Market Value Adjustments (1) Unrecognized Foreign AOCI Tax on AOCI Balance at September 30, 2017 $ 39 $ 1,839 $ 116 $ 1,994 Unrealized gains (losses) arising during the period (68) (47) (13) (128) Reclassifications of net (gains) losses to net income (12) (102) — (114) Balance at September 29, 2018 $ (41) $ 1,690 $ 103 $ 1,752 Unrealized gains (losses) arising during the period (31) 797 28 794 Reclassifications of net (gains) losses to net income 43 (64) — (21) Reclassifications to retained earnings (2) — (667) (16) (683) Balance at September 28, 2019 $ (29) $ 1,756 $ 115 $ 1,842 Unrealized gains (losses) arising during the period 8 572 24 604 Reclassifications of net (gains) losses to net income 61 (127) — (66) Balance at October 3, 2020 $ 40 $ 2,201 $ 139 $ 2,380 Market Value Adjustments (1) Unrecognized Foreign AOCI AOCI, after tax Balance at September 30, 2017 $ (54) $ (3,067) $ (407) $ (3,528) Unrealized gains (losses) arising during the period 191 156 (217) 130 Reclassifications of net (gains) losses to net income 23 278 — 301 Balance at September 29, 2018 $ 160 $ (2,633) $ (624) $ (3,097) Unrealized gains (losses) arising during the period 105 (2,660) (331) (2,886) Reclassifications of net (gains) losses to net income (142) 214 — 72 Reclassifications to retained earnings (2) (23) (667) (16) (706) Balance at September 28, 2019 $ 100 $ (5,746) $ (971) $ (6,617) Unrealized gains (losses) arising during the period (49) (1,896) 22 (1,923) Reclassifications of net (gains) losses to net income (202) 420 — 218 Balance at October 3, 2020 $ (151) $ (7,222) $ (949) $ (8,322) (1) Primarily reflects market value adjustments for cash flow hedges. (2) At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. Details about AOCI components reclassified to net income are as follows: Gains (losses) in net income: Affected line item in the Consolidated Statements of Operations: 2020 2019 2018 Market value adjustments, primarily cash flow hedges Primarily revenue $ 263 $ 185 $ (35) Estimated tax Income taxes (61) (43) 12 202 142 (23) Pension and postretirement medical expense Cost and expenses — — (380) Interest expense, net (547) (278) — Estimated tax Income taxes 127 64 102 (420) (214) (278) Total reclassifications for the period $ (218) $ (72) $ (301) |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Oct. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Under various plans, the Company may grant stock options and other equity-based awards to executive, management and creative personnel. The Company’s approach to long-term incentive compensation contemplates awards of stock options and restricted stock units (RSUs). Certain RSUs awarded to senior executives vest based upon the achievement of market or performance conditions (Performance RSUs). Stock options are generally granted at exercise prices equal to or exceeding the market price at the date of grant and become exercisable ratably over a four-year period from the grant date. The contractual terms for our outstanding stock option grants are 10 years. At the discretion of the Compensation Committee of the Company’s Board of Directors, options can occasionally extend up to 15 years after date of grant. RSUs generally vest ratably over four years and Performance RSUs generally fully vest after three years, subject to achieving market or performance conditions. Equity-based award grants generally provide continued vesting, in the event of termination, for employees that reach age 60 or greater, have at least ten years of service and have held the award for at least one year. Each share granted subject to a stock option award reduces the number of shares available under the Company’s stock incentive plans by one share while each share granted subject to a RSU award reduces the number of shares available by two shares. As of October 3, 2020, the maximum number of shares available for issuance under the Company’s stock incentive plans (assuming all the awards are in the form of stock options) was approximately 160 million shares and the number available for issuance assuming all awards are in the form of RSUs was approximately 77 million shares. The Company satisfies stock option exercises and vesting of RSUs with newly issued shares. Stock options and RSUs are generally forfeited by employees who terminate prior to vesting. Each year, generally during the first half of the year, the Company awards stock options and restricted stock units to a broad-based group of management, technology and creative personnel. The fair value of options is estimated based on the binomial valuation model. The binomial valuation model takes into account variables such as volatility, dividend yield and the risk-free interest rate. The binomial valuation model also considers the expected exercise multiple (the multiple of exercise price to grant price at which exercises are expected to occur on average) and the termination rate (the probability of a vested option being canceled due to the termination of the option holder) in computing the value of the option. The weighted average assumptions used in the option-valuation model were as follows: 2020 2019 2018 Risk-free interest rate 1.8% 2.8% 2.4% Expected volatility 23% 23% 23% Dividend yield 1.36% 1.61% 1.57% Termination rate 5.8% 4.8% 4.8% Exercise multiple 1.83 1.75 1.75 Although the initial fair value of stock options is not adjusted after the grant date, changes in the Company’s assumptions may change the value of, and therefore the expense related to, future stock option grants. The assumptions that cause the greatest variation in fair value in the binomial valuation model are the expected volatility and expected exercise multiple. Increases or decreases in either the expected volatility or expected exercise multiple will cause the binomial option value to increase or decrease, respectively. The volatility assumption considers both historical and implied volatility and may be impacted by the Company’s performance as well as changes in economic and market conditions. Compensation expense for RSUs and stock options is recognized ratably over the service period of the award. Compensation expense for RSUs is based on the market price of the shares underlying the awards on the grant date. Compensation expense for Performance RSUs reflects the estimated probability that the market or performance conditions will be met. Compensation expense related to stock options and RSUs is as follows: 2020 2019 2018 Stock option $ 101 $ 84 $ 87 RSUs (1) 424 627 306 Total equity-based compensation expense (2) 525 711 393 Tax impact (118) (161) (99) Reduction in net income $ 407 $ 550 $ 294 Equity-based compensation expense capitalized during the period $ 87 $ 81 $ 70 (1) Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). (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. The following table summarizes information about stock option transactions in fiscal 2020 (shares in millions): Shares Weighted Outstanding at beginning of year 23 $ 90.05 Awards forfeited (1) 127.94 Awards granted 4 147.04 Awards exercised (3) 80.17 Outstanding at end of year 23 $ 101.41 Exercisable at end of year 13 $ 84.50 The following tables summarize information about stock options vested and expected to vest at October 3, 2020 (shares in millions): Vested Range of Exercise Prices Number of Weighted Average Weighted Average $ 0 — $ 50 2 $ 40.54 1.2 $ 51 — $ 80 3 61.03 2.7 $ 81 — $ 110 4 98.65 5.3 $ 111 — $ 140 4 112.32 6.5 13 Expected to Vest Range of Exercise Prices Number of Options (1) Weighted Average Weighted Average $ 100 — $ 125 5 $ 110.06 7.6 $ 126 — $ 150 4 147.84 9.2 9 (1) Number of options expected to vest is total unvested options less estimated forfeitures. The following table summarizes information about RSU transactions in fiscal 2020 (shares in millions): Units Weighted Average Unvested at beginning of year 12 $ 110.84 Granted (1) 6 142.77 Vested (5) 108.13 Forfeited (1) 117.25 Unvested at end of year (2)(3) 12 $ 128.56 (1) Includes 0.2 million Performance RSUs. (2) Includes 1.4 million Performance RSUs. (3) Excludes Performance RSUs issued in September 2018 and December 2019, for which vesting is subject to service conditions and the number of units vesting is subject to the discretion of the CEO. At October 3, 2020, the maximum number of these Performance RSUs that could be issued upon vesting is 0.1 million. The weighted average grant-date fair values of options granted during fiscal 2020, 2019 and 2018 were $36.19, $28.76 and $28.01, respectively. The total intrinsic value (market value on date of exercise less exercise price) of options exercised and RSUs vested during fiscal 2020, 2019 and 2018 totaled $989 million, $646 million and $585 million, respectively. The aggregate intrinsic values of stock options vested and expected to vest at October 3, 2020 were $514 million and $63 million, respectively. As of October 3, 2020, unrecognized compensation cost related to unvested stock options and RSUs was $140 million and $850 million, respectively. That cost is expected to be recognized over a weighted-average period of 1.6 years for stock options and 1.9 years for RSUs. Cash received from option exercises for fiscal 2020, 2019 and 2018 was $305 million, $318 million and $210 million, respectively. Tax benefits realized from tax deductions associated with option exercises and RSUs vesting for fiscal 2020, 2019 and 2018 was approximately $220 million, $145 million and $160 million, respectively. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Oct. 03, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Detail of Certain Balance Sheet Accounts | Detail of Certain Balance Sheet Accounts Current receivables October 3, September 28, Accounts receivable $ 11,299 $ 12,930 Other 1,835 2,894 Allowance for doubtful accounts (426) (343) $ 12,708 $ 15,481 Parks, resorts and other property Attractions, buildings and improvements $ 31,279 $ 29,509 Furniture, fixtures and equipment 22,976 21,265 Land improvements 6,828 6,649 Leasehold improvements 1,028 1,166 62,111 58,589 Accumulated depreciation (35,517) (32,415) Projects in progress 4,449 4,264 Land 1,035 1,165 $ 32,078 $ 31,603 Intangible assets Character/franchise intangibles, copyrights and trademarks $ 10,572 $ 10,577 MVPD agreements 8,098 9,900 Other amortizable intangible assets 4,309 4,291 Accumulated amortization (5,598) (3,393) Net amortizable intangible assets 17,381 21,375 Indefinite lived intangible assets 1,792 1,840 $ 19,173 $ 23,215 Accounts payable and other accrued liabilities Accounts payable $ 12,663 $ 13,778 Payroll and employee benefits 2,925 3,010 Other 1,213 974 $ 16,801 $ 17,762 Other long-term liabilities Pension and postretirement medical plan liabilities $ 6,451 $ 4,783 Other 10,753 8,977 $ 17,204 $ 13,760 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has various contractual commitments for broadcast rights for sports, films and other programming, totaling approximately $46.4 billion, including approximately $3.1 billion for available programming as of October 3, 2020, and approximately $40.6 billion related to sports programming rights, primarily for college football (including bowl games and the College Football Playoff) and basketball, NBA, NFL, UFC, MLB, Cricket, US Open Tennis, Top Rank Boxing, the PGA Championship and various soccer rights. The Company has entered into operating leases for various real estate and equipment needs, including office space for general and administrative purposes, production facilities, retail outlets and distribution centers for consumer products, land and content broadcast equipment. In addition, the Company has non-cancelable financing leases, primarily for land and broadcast equipment. See Note 16 for discussion of the Company’s operating and financing lease commitments. The Company also has contractual commitments for the construction of three new cruise ships, creative talent and employment agreements and unrecognized tax benefits. Creative talent and employment agreements include obligations to actors, producers, sports, television and radio personalities and executives. Contractual commitments for broadcast programming rights and other commitments including cruise ships and creative talent totaled $58.8 billion at October 3, 2020, payable as follows: Fiscal Year: Broadcast Other Total 2021 $ 12,043 $ 3,051 $ 15,094 2022 8,632 2,291 10,923 2023 6,030 988 7,018 2024 4,972 1,263 6,235 2025 5,058 1,060 6,118 Thereafter 9,643 3,737 13,380 $ 46,378 $ 12,390 $ 58,768 Certain broadcast programming rights have payments that are variable based primarily on revenues and are not included in the table above. 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 October 3, 2020, the remaining debt service obligation guaranteed by the Company was $232 million. To the extent that tax revenues exceed the debt service payments subsequent to the Company funding a shortfall, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. |
Leases
Leases | 12 Months Ended |
Oct. 03, 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 of approximately $3.7 billion of right-of-use assets and lease liabilities, 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 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 October 3, 2020, our operating leases have a weighted-average remaining lease term of approximately 10 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 6.3%, for our operating leases and finance leases, respectively. Additionally, as of October 3, 2020, the Company had signed non-cancelable lease agreements with total estimated future lease payments of approximately $277 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 are as follows: October 3, 2020 Right-of-use assets (1) Operating leases $ 3,687 Finance leases 361 Total right-of-use assets 4,048 Short-term lease liabilities (2) Operating leases 747 Finance leases 37 784 Long-term lease liabilities (3) Operating leases 2,640 Finance leases 271 2,911 Total lease liabilities $ 3,695 (1) Included in “Other assets” in the Consolidated Balance Sheet. 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 Consolidated Balance Sheet. (3) Included in “Other long-term liabilities” in the Consolidated Balance Sheet. The components of lease expense for the year ended October 3, 2020 are as follows: Finance lease cost Amortization of right-of-use assets $ 37 Interest on lease liabilities 16 Operating lease cost 899 Variable fees and other (1) 491 Total lease cost $ 1,443 (1) Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. Rental expense for operating leases during fiscal 2019 and 2018, including common-area maintenance and contingent rentals, was $1.1 billion and $0.9 billion, respectively. Cash paid during the year ended October 3, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period is as follows: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 879 Operating cash flows for finance leases 16 Financing cash flows for finance leases 37 Total $ 932 Future minimum lease payments, as of October 3, 2020, are as follows: Operating Financing Fiscal year: 2021 $ 840 $ 56 2022 635 56 2023 494 51 2024 367 40 2025 310 35 Thereafter 1,565 482 Total undiscounted future lease payments 4,211 720 Less: Imputed interest (824) (412) Total reported lease liability $ 3,387 $ 308 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 of approximately $3.7 billion of right-of-use assets and lease liabilities, 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 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 October 3, 2020, our operating leases have a weighted-average remaining lease term of approximately 10 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 6.3%, for our operating leases and finance leases, respectively. Additionally, as of October 3, 2020, the Company had signed non-cancelable lease agreements with total estimated future lease payments of approximately $277 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 are as follows: October 3, 2020 Right-of-use assets (1) Operating leases $ 3,687 Finance leases 361 Total right-of-use assets 4,048 Short-term lease liabilities (2) Operating leases 747 Finance leases 37 784 Long-term lease liabilities (3) Operating leases 2,640 Finance leases 271 2,911 Total lease liabilities $ 3,695 (1) Included in “Other assets” in the Consolidated Balance Sheet. 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 Consolidated Balance Sheet. (3) Included in “Other long-term liabilities” in the Consolidated Balance Sheet. The components of lease expense for the year ended October 3, 2020 are as follows: Finance lease cost Amortization of right-of-use assets $ 37 Interest on lease liabilities 16 Operating lease cost 899 Variable fees and other (1) 491 Total lease cost $ 1,443 (1) Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income. Rental expense for operating leases during fiscal 2019 and 2018, including common-area maintenance and contingent rentals, was $1.1 billion and $0.9 billion, respectively. Cash paid during the year ended October 3, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period is as follows: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 879 Operating cash flows for finance leases 16 Financing cash flows for finance leases 37 Total $ 932 Future minimum lease payments, as of October 3, 2020, are as follows: Operating Financing Fiscal year: 2021 $ 840 $ 56 2022 635 56 2023 494 51 2024 367 40 2025 310 35 Thereafter 1,565 482 Total undiscounted future lease payments 4,211 720 Less: Imputed interest (824) (412) Total reported lease liability $ 3,387 $ 308 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 Measurement
Fair Value Measurement | 12 Months Ended |
Oct. 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level. See Note 11 for definitions of fair value measures and the Levels within the fair value hierarchy. Fair Value Measurement at October 3, 2020 Description Level 1 Level 2 Level 3 Total Assets Investments $ — $ 1,057 $ — $ 1,057 Derivatives Interest rate — 515 — 515 Foreign exchange — 505 — 505 Other — 1 — 1 Liabilities Derivatives Interest rate — (4) — (4) Foreign exchange — (549) — (549) Other — (22) — (22) Total recorded at fair value $ — $ 1,503 $ — $ 1,503 Fair value of borrowings $ — $ 63,370 $ 1,448 $ 64,818 Fair Value Measurement at September 28, 2019 Description 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 investments are based on quoted market prices, adjusted for trading restrictions. 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. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment. In the third quarter of fiscal 2020, the Company recorded impairment charges for goodwill and intangible assets as disclosed in Note 19. The fair value of these assets reflected the estimated discounted future cash flows, which is a Level 3 valuation technique (see Note 19 for a discussion of the more significant inputs used in our discounted cash flow analysis). Credit Concentrations The Company monitors its positions with, and the credit quality of, the financial institutions that are counterparties to its financial instruments on an ongoing basis and does not currently anticipate nonperformance by the counterparties. The Company does not expect that it would realize a material loss, based on the fair value of its derivative financial instruments as of October 3, 2020, in the event of nonperformance by any single derivative counterparty. The Company generally enters into derivative transactions only with counterparties that have a credit rating of A- or better and requires collateral in the event credit ratings fall below A- or aggregate exposures exceed limits as defined by contract. In addition, the Company limits the amount of investment credit exposure with any one institution. The Company does not have material cash and cash equivalent balances with financial institutions that have below investment grade credit ratings and maintains short-term liquidity needs in high quality money market funds. As of October 3, 2020, the Company’s balances with individual financial institutions that exceeded 10% of the Company’s total cash and cash equivalents were 26% of total cash and cash equivalents. At October 3, 2020, the Company did not have balances (excluding money market funds) with individual financial institutions that exceeded 10% of the Company’s total cash and cash equivalents. The Company’s trade receivables and financial investments do not represent a significant concentration of credit risk at October 3, 2020 due to the wide variety of customers and markets in which the Company’s products are sold, the dispersion of our customers across geographic areas and the diversification of the Company’s portfolio among financial institutions. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 03, 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 October 3, 2020 Current Other Assets Other Other Long- Derivatives designated as hedges Foreign exchange $ 184 $ 132 $ (77) $ (273) Interest rate — 515 (4) — Other 1 — (15) (4) Derivatives not designated as hedges Foreign exchange 53 136 (98) (101) Interest Rate — — — — Other — — (3) — Gross fair value of derivatives 238 783 (197) (378) Counterparty netting (143) (378) 184 338 Cash collateral (received) paid (26) (142) — 9 Net derivative positions $ 69 $ 263 $ (13) $ (31) As of September 28, 2019 Current Other Assets Other 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 October 3, 2020 and September 28, 2019, the total notional amount of the Company’s pay-floating interest rate swaps was $15.8 billion and $9.9 billion, respectively. The following table summarizes fair value hedge adjustments to hedged borrowings: Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) October 3, 2020 September 28, 2019 October 3, 2020 September 28, 2019 Borrowings: Current $ 753 $ 1,121 $ 4 $ (3) Long-term 16,229 9,562 505 34 $ 16,982 $ 10,683 $ 509 $ 31 (1) Includes $34 million and $37 million of gains on terminated interest rate swaps as of October 3, 2020 and September 28, 2019, respectively. The following amounts are included in “Interest expense, net” in the Consolidated Statements of Operations: 2020 2019 2018 Gain (loss) on: Pay-floating swaps $ 479 $ 337 $ (230) Borrowings hedged with pay-floating swaps (479) (337) 230 Benefit (expense) associated with interest accruals on pay-floating swaps 28 (58) (15) 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 October 3, 2020 or at September 28, 2019, and gains and losses related to pay-fixed swaps recognized in earnings for fiscal 2020, 2019 and 2018 were not material. To facilitate its interest rate risk management activities, the Company sold options in November 2016, October 2017 and April 2018 to enter into future pay-floating interest rate swaps indexed to LIBOR for $2.0 billion in future borrowings. The Company repurchased these options in July 2020 for $2 million. The fair values of these contracts were $1 million and $11 million at June 27, 2020 and September 28, 2019, respectively. The options were not designated as hedges and did not qualify for hedge accounting; accordingly, changes in their fair value were recorded in earnings. Gains and losses on the options for fiscal 2020, 2019 and 2018 were not material. Foreign Exchange Risk Management The Company transacts business globally and is subject to risks associated with changing foreign currency exchange rates. The Company’s objective is to reduce earnings and cash flow fluctuations associated with foreign currency exchange rate changes, enabling management to focus on core business issues and challenges. The Company enters into option and forward contracts that change in value as foreign currency exchange rates change to protect the value of its existing foreign currency assets, liabilities, firm commitments and forecasted but not firmly committed foreign currency transactions. In accordance with policy, the Company hedges its forecasted foreign currency transactions for periods generally not to exceed four years within an established minimum and maximum range of annual exposure. The gains and losses on these contracts offset changes in the U.S. dollar equivalent value of the related forecasted transaction, asset, liability or firm commitment. The principal currencies hedged are the euro, Japanese yen, British pound, Chinese yuan and Canadian dollar. Cross-currency swaps are used to effectively convert foreign currency denominated borrowings into U.S. dollar denominated borrowings. The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions. As of October 3, 2020 and September 28, 2019, the notional amounts of the Company’s net foreign exchange cash flow hedges were $4.6 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 $106 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: 2020 2019 Gain (loss) recognized in Other Comprehensive Income $ (63) $ 156 Gain (loss) reclassified from AOCI into the Statement of Operations (1) 269 183 (1) Primarily recorded in revenue. The Company designates cross currency swaps as fair value hedges of foreign currency denominated borrowings. The impact of the designated exposure is recorded to “Interest Expense, net” to offset the foreign currency impact of the foreign currency denominated borrowing. The non-hedged exposure is recorded to AOCI and is amortized over the life of the cross currency swap. As of October 3, 2020, the total notional amount of the Company’s designated cross currency swaps was Canadian $1.3 billion ($979 million). There were no designated cross currency swaps as of September 28, 2019. Fiscal 2020, gains and losses on cross currency swaps and related hedged items were not material, and there were no gains or losses in fiscal 2019 and 2018. 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 October 3, 2020 and September 28, 2019 were $3.5 billion and $3.8 billion, respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities by the corresponding line item in which they are recorded in the Consolidated Statements of Operations: Costs and Expenses Interest expense, net Income Tax Expense 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net gains (losses) on foreign currency denominated assets and liabilities $ 10 $ (188) $ (146) $ 1 $ 16 $ 39 $ (35) $ 50 $ 29 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (56) 123 104 — (19) (46) 33 (51) (19) Net gains (losses) $ (46) $ (65) $ (42) $ 1 $ (3) $ (7) $ (2) $ (1) $ 10 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 October 3, 2020 and September 28, 2019 and related gains or losses recognized in earnings were not material for fiscal 2020, 2019 and 2018. 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 October 3, 2020 and September 28, 2019 were not material. The related gains or losses recognized in earnings were not material for fiscal 2020, 2019 and 2018. Contingent Features and Cash Collateral The Company has master netting arrangements by counterparty with respect to certain derivative financial instrument contracts. The Company may be required to post collateral in the event that a net liability position with a counterparty exceeds limits defined by contract and that vary with the Company’s credit rating. In addition, these contracts may require a counterparty to post collateral to the Company in the event that a net receivable position with a counterparty exceeds limits defined by contract and that vary with the counterparty’s credit rating. If the Company’s or the counterparty’s credit ratings were to fall below investment grade, such counterparties or the Company would also have the right to terminate our derivative contracts, which could lead to a net payment to or from the Company for the aggregate net value by counterparty of our derivative contracts. The aggregate fair values of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty were $53 million and $65 million at October 3, 2020 and September 28, 2019, respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 12 Months Ended |
Oct. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | Restructuring and Impairment Charges Goodwill and Intangible Asset Impairment Our International Channels reporting unit, which is part of the Direct-to-Consumer & International segment, comprises the Company’s international television networks. Our international television networks primarily derive revenues from affiliate fees charged to multi-channel video programming distributors (i.e. cable, satellite, telecommunications and digital over-the-top service providers) (MVPDs) for the right to deliver our programming under multi-year licensing agreements and the sales of advertising time/space on the networks. A majority of the operations in this reporting unit were acquired in the TFCF acquisition, and therefore the fair value of these businesses approximated the carrying value at the date of the acquisition of TFCF. The International Channels business has been negatively impacted by the COVID-19 pandemic resulting in decreased viewership and lower advertising revenue related to the availability of content, including the deferral of certain live sporting events. The Company’s increased focus on DTC distribution in international markets is expected to negatively impact the International Channels business as we shift the primary means of monetizing our film and television content from licensing of linear channels to use on our DTC services because the International Channels reporting unit valuation does not include the value derived from this shift, which is reflected in other reporting units. In addition, the industry shift to DTC, including by us and many of our distributors, who are pursuing their own DTC strategies, has changed the competitive dynamics for the International Channels business and resulted in unfavorable renewal terms for certain of our distribution agreements. Due to these circumstances, in the third quarter of fiscal 2020, we tested the International Channels’ goodwill and long-lived assets (including intangible assets) for impairment. The impairment test requires a comparison of cash flows expected to be generated over the useful life of an asset group to the carrying value of the asset group. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets. If the carrying value of an asset group exceeds the estimated undiscounted future cash flows, an impairment is measured as the difference between the fair value of the group’s long-lived assets and the carrying value of the group’s long-lived assets. We determined the appropriate asset groups for our International Channels to be the regions in which they operate. We estimated the projected undiscounted cash flows over the remaining useful life of an asset group. The more significant inputs used in determining our estimate of the projected undiscounted cash flows included future revenue growth and projected margins as well as the estimate of the remaining useful life of an asset group. If the carrying value of an asset group exceeded the estimated undiscounted cash flows, the impairment loss is the excess of the carrying value over the fair value. The determination of fair value requires us to make assumptions and estimates about how market participants would value the asset groups. The most sensitive factors affecting the fair value of an asset group are the future revenue growth and projected margins for these businesses as well as the discount rates used to calculate the present value of future cash flows. In the third quarter of fiscal 2020, we recorded a non-cash impairment charge primarily on our MVPD agreement intangible assets of $1.9 billion. As of October 3, 2020, the remaining balance of the International Channels MVPD agreement intangible assets is approximately $3.0 billion. We tested the International Channels reporting unit goodwill for impairment on an interim basis by comparing the fair value of the International Channels reporting unit to its carrying value. The fair value was determined using a discounted cash flow analysis. The determination of fair value requires us to make assumptions and estimates about how market participants would value the International Channels. The more sensitive inputs used in the discounted cash flow analysis include future revenue growth and projected margins as well as the discount rates used to calculate the present value of future cash flows. Given the ongoing impacts of COVID-19, the projected cash flows and underlying assumptions are subject to greater uncertainty than normal. In the third quarter of fiscal 2020, the carrying value of the International Channels exceeded the fair value, and we recorded a non-cash impairment charge of $3.1 billion to fully impair the International Channels reporting unit goodwill. The $1.9 billion impairment of our MVPD relationships and $3.1 billion impairment of goodwill are recorded in “Restructuring and impairment charges” in the Consolidated Statements of Operations. TFCF Integration 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. The restructuring plan is substantially complete as of the end of fiscal 2020. In connection with this plan, during fiscal 2020, the Company recorded $0.5 billion of restructuring charges, which included $0.4 billion of severance (including employee contract terminations). To date, we have recorded restructuring charges of $1.7 billion, including $1.2 billion related to severance 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. These charges are recorded in “Restructuring and impairment charges” in the Consolidated Statements of Operations. With the TFCF integration efforts nearly complete, the Company expects that total severance and other restructuring charges will remain at approximately $1.7 billion. The changes in restructuring reserves related to the TFCF integration for fiscal 2019 and 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 26 Parks, Experiences and Products 9 Studio Entertainment 92 Direct-to-Consumer & International 264 Corporate 62 Total additions in fiscal 2020 453 Payments in fiscal 2020 (772) Balance at October 3, 2020 $ 357 Other In the fourth quarter of fiscal 2020, the Company approved a workforce reduction plan, primarily at the Parks, Experiences and Products segment, which we expect to be completed by the end of fiscal 2021. The Company recorded |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | New Accounting Pronouncements Accounting Pronouncements Adopted in Fiscal 2020 • Leases - See Note 16 • 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). We currently do not expect the new guidance will have a material impact on our 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 the allowance for credit losses to be measured based on expected losses over the life of the asset rather than incurred losses. The guidance is effective at the beginning of the Company’s 2021 fiscal year. The adoption will not have a material impact on our financial statements. |
QUARTERLY FINANCIAL SUMMARY
QUARTERLY FINANCIAL SUMMARY | 12 Months Ended |
Oct. 03, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL SUMMARY | QUARTERLY FINANCIAL SUMMARY (in millions, except per share data) (unaudited) Q1 (1) Q2 (1) Q3 (1) Q4 (1) 2020 Revenues $ 20,877 $ 18,025 $ 11,779 $ 14,707 Income (loss) from continuing operations before income taxes 2,626 1,051 (4,840) (580) Segment operating income (9) 3,996 2,407 1,099 606 Net income (loss) from continuing operations 2,168 528 (4,509) (629) Net income (loss) attributable to Disney 2,107 460 (4,721) (710) Loss from discontinued operations, net of tax (21) (8) (3) — Earnings (loss) per share: Diluted - continuing operations $ 1.17 (2) $ 0.26 (3) $ (2.61) (5) $ (0.39) (7) Diluted - total 1.16 0.25 (2.61) (0.39) Basic - continuing operations 1.18 0.26 (2.61) (0.39) Basic - total 1.17 0.25 (2.61) (0.39) 2019 Revenues $ 15,303 $ 14,924 $ 20,262 $ 19,118 Income from continuing operations before income taxes 3,431 7,236 2,009 1,247 Segment operating income (9) 3,655 3,815 3,952 3,425 Net income from continuing operations 2,786 5,589 1,616 906 Net income attributable to Disney 2,788 5,452 1,760 1,054 Income from discontinued operations, net of tax — 22 366 299 Earnings per share: Diluted - continuing operations $ 1.86 $ 3.53 (4) $ 0.79 (6) $ 0.43 (8) Diluted - total 1.86 3.55 0.97 0.58 Basic - continuing operations 1.87 3.55 0.79 0.43 Basic 1.87 3.56 0.98 0.58 (1) On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. (2) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on diluted earnings (loss) per share (EPS)) and restructuring and impairment charges (adverse impact of $0.06 on EPS). (3) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.27 on EPS) and restructuring and impairment charges (adverse impact of $0.06 on EPS). (4) Results included the Hulu gain (favorable impact of $2.46 on EPS), restructuring and impairment charges (adverse impact of $0.33 on EPS), an impairment in our investment in Vice (adverse impact of $0.18 on EPS), and amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.05 on EPS). (5) Results included goodwill and intangible asset impairments at our International Channels business (adverse impact of $2.53 on EPS), amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.28 on EPS), restructuring and impairment charges (adverse impact of $0.04 on EPS), and the DraftKings gain (favorable impact of $0.16 on EPS). (6) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.34 on EPS), restructuring and impairment charges (adverse impact of $0.09 on EPS), equity investment impairments (adverse impact of $0.08 on EPS), and an adjustment to the Hulu gain (adverse impact of $0.05 on EPS). (7) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), restructuring and impairment charges (adverse impact of $0.17 on EPS), the DraftKings gain (favorable impact of $0.25 on EPS), and a non-cash gain on the sale of an investment (favorable impact of $0.03 on EPS). (8) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), a charge for the settlement of a portion of the debt originally assumed in the TFCF acquisition (adverse impact of $0.22 on EPS), and restructuring and impairment charges (adverse impact of $0.13), and a gain on the deemed settlement of preexisting relationships with TFCF as part of the accounting for the acquisition (favorable impact of $0.01 on EPS). (9) Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of The Walt Disney Company and its majority-owned or controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. 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. |
Reporting Period | Reporting PeriodThe Company’s fiscal year ends on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. When a fifty-three week year occurs, the Company reports the additional week in the fourth quarter. Fiscal 2019 and 2018 were fifty-two week years. Fiscal 2020 is a fifty-three week year, which began on September 29, 2019 and ended on October 3, 2020. |
Reclassifications | Reclassifications Certain reclassifications have been made in the fiscal 2019 and fiscal 2018 financial statements and notes to conform to the fiscal 2020 presentation. |
Use of Estimates | 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. |
Revenues and Costs from Services and Products | Revenues and Costs from Services and Products The Company generates revenue from the sale of both services and tangible products and revenues and operating costs are classified under these two categories in the Consolidated Statements of Operations. Certain costs related to both the sale of services and tangible products are not specifically allocated between the service or tangible product revenue streams but are instead attributed to the principal revenue stream. The cost of services and tangible products exclude depreciation and amortization. Significant service revenues include: • Affiliate fees • Advertising revenues • Subscription fees to our DTC streaming services • Revenue from the licensing and distribution of film and television properties • Admissions to our theme parks, charges for room nights at hotels and sales of cruise vacation packages • Licensing of intellectual property for use on consumer merchandise, published materials and in multi-platform games Significant operating costs related to the sale of services include: • Amortization of programming and production costs and participations and residuals costs • Distribution costs • Operating labor • Facilities and infrastructure costs Significant tangible product revenues include: • The sale of food, beverage and merchandise at our retail locations • The sale of DVDs and Blu-ray discs • The sale of books, comic books and magazines Significant operating costs related to the sale of tangible products include: • Costs of goods sold • Amortization of programming and production costs and participations and residuals costs • Distribution costs • Operating labor • Retail occupancy costs |
Revenue Recognition | Revenue Recognition At the beginning of fiscal 2019, the Company adopted Financial Accounting Standards Board (FASB) guidance that replaced the existing accounting guidance for revenue recognition with a single comprehensive five-step model (“new revenue guidance”). The core principle is to recognize revenue upon the transfer of control of goods or services to customers at an amount that reflects the consideration expected to be received. We adopted the new revenue guidance using the modified retrospective method; therefore, results for reporting periods beginning after September 30, 2018 are presented under the new revenue guidance, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting. Upon adoption, we recorded a net reduction of $116 million to opening fiscal 2019 retained earnings. The most significant changes to the Company’s revenue recognition policies resulting from the adoption of the new revenue guidance are as follows: • For television and film content licensing agreements with multiple availability windows with the same licensee, the Company now defers more revenue to future windows than under the previous accounting guidance. • For licenses of character images, brands and trademarks with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual amounts earned based on a percentage of the licensee’s underlying sales (“shortfall”) is now recognized straight-line over the remaining license period once an expected shortfall is probable. Previously, shortfalls were recognized at the end of the contract period. • For licenses that include multiple television and film titles with a minimum guaranteed license fee across all titles that earns out against the aggregate fees based on the licensee’s underlying sales, the Company now allocates the minimum guaranteed license fee to each title at contract inception and recognizes the allocated license fee as revenue when the title is made available to the customer. License fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee across all titles is exceeded, license fees are recognized as earned based on the licensee’s underlying sales. Previously, license fees were recognized as earned based on the licensee’s underlying sales with any shortfalls recognized at the end of the contract period. • For renewals or extensions of license agreements for television and film content, revenues are now recognized when the licensed content becomes available under the renewal or extension. Previously, revenues were recognized when the agreement was renewed or extended. The impact on the Consolidated Statement of Operations for fiscal 2019 due to the adoption of the new revenue guidance was as follows: Results Assuming Impact of New Revenue Guidance Reported Revenues $ 69,262 $ 345 $ 69,607 Cost and Expenses (57,523) (254) (57,777) Income Taxes (3,005) (21) (3,026) Net Income 11,514 70 11,584 The most significant impact was at the Studio Entertainment reflecting a change in the timing of revenue recognition related to film content licensing agreements with multiple availability windows. The Company generates revenue from the sale of both services and products. The Company has four broad categories of service revenues: licenses of rights to use our intellectual property (“IP”), sales to guests at our Parks and Experiences businesses, sales of advertising time/space and subscriptions to DTC services. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue guidance defines two types of IP licenses: IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters and visual and literary properties at the Parks, Experiences and Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows: • Affiliate fees - Fees charged to affiliates (i.e., MVPDs or television stations) for the right to deliver our television network programming on a continuous basis to their customers are recognized as the programming is provided based on contractually specified per subscriber rates and the actual number of the affiliate’s customers receiving the programming. For affiliate contracts with fixed license fees, the fees are recognized ratably over the contract term. If an affiliate contract includes a minimum guaranteed license fee, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned. • Subscription fees - Fees charged to customers/subscribers and wholesale distributors for our streaming services are recognized ratably over the term of the subscription. • Advertising - Sales of advertising time/space on our television networks, digital platforms and television stations are recognized as revenue, net of agency commissions, when commercials are aired. For contracts that contain a guaranteed number of impressions, revenues are recognized based on impressions delivered. When the guaranteed number of impressions is not met (“ratings shortfall”), revenues are not recognized for the ratings shortfall until the additional impressions are delivered. • Theme park admissions - Sales of theme park tickets are recognized when the tickets are used. Sales of annual passes are recognized ratably over the period for which the pass is available for use. • Resorts and vacations - Sales of hotel room nights and cruise vacations and rentals of vacation club properties are recognized as revenue as the services are provided to the guest. Sales of vacation club properties are recognized as revenue upon the later of when title transfers to the customer or when construction activity is deemed complete. • Merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts, cruise ships and Disney Stores are recognized at the time of sale. Sales from our branded internet shopping sites and to wholesalers are recognized upon delivery. We estimate returns and customer incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. • TV/SVOD distribution licensing - Fixed license fees charged for the right to use our television and film productions are recognized as revenue when the content is available for use by the licensee. License fees based on the underlying sales of the licensee are recognized as revenue as earned based on the contractual royalty rate applied to the licensee sales. For TV/SVOD licenses that include multiple titles with a fixed license fee across all titles, each title is considered a separate performance obligation. The fixed license fee is allocated to each title at contract inception and the allocated license fee is recognized as revenue when the title is available for use by the licensee. When the license contains a minimum guaranteed license fee across all titles, the license fees earned by titles in excess of their allocated amount are deferred until the minimum guaranteed license fee across all titles is exceeded. Once the minimum guaranteed license fee is exceeded, revenue is recognized as earned based on the licensee’s underlying sales. TV/SVOD distribution contracts may limit the licensee’s use of a title to certain defined periods of time during the contract term. In these instances, each period of availability is generally considered a separate performance obligation. For these contracts, the fixed license fee is allocated to each period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized at the start of each availability period when the content is made available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. • Theatrical distribution licensing - Fees charged for licensing of our films to theatrical distributors are recognized as revenue based on the contractual royalty rate applied to the distributor’s underlying sales from exhibition of the film. • Merchandise licensing - Fees charged for the use of our trade names and characters in connection with the sale of a licensee’s products are recognized as revenue as earned based on the contractual royalty rate applied to the licensee’s underlying product sales. For licenses with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual royalties earned (“shortfall”) is recognized straight-line over the remaining license period once an expected shortfall is probable. • Home entertainment - Sales of our films to retailers and distributors in physical formats (DVD and Blu-ray) are recognized as revenue on the later of the delivery date or the date that the product can be sold by retailers. We reduce home entertainment revenues for estimated future returns of merchandise and sales incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. Sales of our films in electronic formats are recognized as revenue when the product is available for use by the consumer. • Taxes - Taxes collected from customers and remitted to governmental authorities are excluded from revenue. • Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue and the related shipping expenses are recorded in cost of products upon delivery of the product to the consumer. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on our analysis of trends in overall receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and current economic trends. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred. Advertising expense for fiscal 2020, 2019 and 2018 was $4.7 billion, $4.3 billion and $2.8 billion, respectively. The increase in advertising expense for fiscal 2020 compared to fiscal 2019 was primarily due to the consolidation of TFCF and Hulu, partially offset by lower advertising expense at Studio Entertainment and Parks, Experience and Products segments reflecting the impact of COVID-19 on these segments. The increase in advertising expense for fiscal 2019 compared to fiscal 2018 was primarily due to the consolidation of TFCF and Hulu. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. The Company’s restricted cash balances are primarily made up of cash posted as collateral for certain derivative instruments. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. October 3, 2020 September 28, 2019 September 29, 2018 Cash and cash equivalents $ 17,914 $ 5,418 $ 4,150 Restricted cash included in: Other current assets 3 26 1 Other assets 37 11 4 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 17,954 $ 5,455 $ 4,155 |
Investments | Investments Investments in equity securities with a readily determinable fair value, not accounted for under the equity method, are recorded at that value with unrealized gains and losses included in earnings. For equity securities without a readily determinable fair value, the investment is recorded at cost, less any impairment, plus or minus adjustments related to observable transactions for the same or similar securities, with unrealized gains and losses included in earnings. For equity method investments, the Company regularly reviews its investments to determine whether there is a decline in fair value below book value. If there is a decline that is other-than-temporary, the investment is written down to fair value. |
Translation Policy | Translation Policy Generally, the U.S. dollar is the functional currency for our international film and television distribution and licensing businesses and the branded International Channels. Generally, the local currency is the functional currency for the Asia Theme Parks, Disneyland Paris, the branded International Channels that primarily source and exploit their content locally (primarily Star branded channels in India and international sports channels) and international locations of The Disney Stores. For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at average exchange rates in effect during each period, except for those expenses related to the non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss) (AOCI). |
Inventories | Inventories Inventory primarily includes vacation timeshare units, merchandise, food, materials and supplies. Carrying amounts of vacation ownership units are recorded at the lower of cost or net realizable value. Carrying amounts of merchandise, food, materials and supplies inventories are generally determined on a moving average cost basis and are recorded at the lower of cost or net realizable value. |
Film and Television Content Costs | Film and Television Content Costs At the beginning of fiscal 2020, the Company adopted new FASB guidance that updates the accounting for film and television content costs. See Note 8 for discussion of the new guidance and the Company’s accounting policy for capitalization and amortization of film and television content costs. |
Internal-Use Software Costs | Internal-Use Software Costs The Company expenses costs incurred in the preliminary project stage of developing or acquiring internal use software, such as research and feasibility studies as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software development costs occurs only after the preliminary-project stage is complete, management authorizes the project and it is probable that the project will be completed and the software will be used for the function intended. As of October 3, 2020 and September 28, 2019, capitalized software costs, net of accumulated depreciation, totaled $778 million and $927 million, respectively. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software up to 10 years. |
Parks, Resorts and Other Property | Parks, Resorts and Other Property Parks, resorts and other property are carried at historical cost. Depreciation is computed on the straight-line method, generally over estimated useful lives as follows: Attractions, buildings and improvements 20 – 40 years Furniture, fixtures and equipment 3 – 25 years Land improvements 20 – 40 years Leasehold improvements Life of lease or asset life if less |
Lessee, Leases | Leases At the beginning of fiscal 2020, the Company adopted new FASB guidance that requires lessees to record the present value of operating lease payments as right-of-use assets and lease liabilities on the balance sheet. See Note 16 for discussion of the new guidance and the Company’s accounting policy. |
Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis. Goodwill is allocated to various reporting units, which are an operating segment or one level below the operating segment. To test goodwill for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of a reporting unit exceeds its fair value. If it is, a quantitative assessment is required. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment requires consideration of recent market transactions, macroeconomic conditions, and changes in projected future cash flows of the reporting unit. The quantitative assessment compares the fair value of each goodwill reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit. In fiscal 2020, the Company performed a qualitative assessment of goodwill for impairment. The impairment test for goodwill requires judgment related to the identification of reporting units, the assignment of assets and liabilities to reporting units including goodwill, and the determination of fair value of the reporting units. To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate. We apply what we believe to be the most appropriate valuation methodology for each of our reporting units. The projected cash flows of our reporting units reflect intersegment revenues and expenses for the sale and use of intellectual property as if it was licensed to an unrelated third party. The discounted cash flow analyses are sensitive to our estimates of future revenue growth and margins for these businesses as well as the discount rates used to calculate the present value of future cash flows. In times of adverse economic conditions in the global economy, the Company’s long-term cash flow projections are subject to a greater degree of uncertainty than usual. If we had established different reporting units or utilized different valuation methodologies or assumptions, the impairment test results could differ, and we could be required to record impairment charges. To test its other indefinite-lived intangible assets for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of each of its indefinite-lived intangible assets exceeds its fair value. If it is, a quantitative assessment is required. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions, and changes in projected future cash flows. The quantitative assessment compares the fair values of indefinite-lived intangible assets to their carrying amounts. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized for the excess. Fair values of indefinite-lived intangible assets are determined based on discounted cash flows or appraised values, as appropriate. The Company has determined that there are currently no legal, competitive, economic or other factors that materially limit the useful life of our FCC licenses and trademarks. Amortizable intangible assets are generally amortized on a straight-line basis over periods up to 40 years. The costs to periodically renew our intangible assets are expensed as incurred. The Company tests long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount may not be recoverable. Once a triggering event has occurred, the impairment test employed is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for use requires a comparison of cash flows expected to be generated over the useful life of an asset group to the carrying amount of the asset group. An asset group is established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other assets and could include assets used across multiple businesses or segments. If the carrying amount of an asset group exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the fair value of the group’s long-lived assets and the carrying amount of the group’s long-lived assets. The impairment is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts, but only to the extent the carrying amount of each asset is above its fair value. For assets held for sale, to the extent the carrying amount is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company recorded non-cash impairment charges of $5.2 billion, $0.6 billion, and $0.2 billion in fiscal 2020, 2019 and 2018, respectively. The fiscal 2020 impairment charges primarily related to impairments of MVPD agreement intangibles assets ($1.9 billion) and goodwill ($3.1 billion) at the International Channels’ business. See Note 19 to the Consolidated Financial Statements for additional discussion on these impairment charges. The fiscal 2019 and 2018 charges primarily related to impairments of investments accounted for under the equity method of accounting recorded in “Equity in the income (loss) of investees” in the Consolidated Statements of Operations. The Company expects its aggregate annual amortization expense for amortizable intangible assets for fiscal 2021 through 2025 to be as follows: 2021 $ 2,055 2022 1,995 2023 1,808 2024 1,570 2025 1,471 |
Risk Management Contracts | Risk Management Contracts In the normal course of business, the Company employs a variety of financial instruments (derivatives) including interest rate and cross-currency swap agreements and forward and option contracts to manage its exposure to fluctuations in interest rates, foreign currency exchange rates and commodity prices. The Company formally documents all relationships between hedges and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company primarily enters into two types of derivatives: hedges of fair value exposure and hedges of cash flow exposure. Hedges of fair value exposure are entered into in order to hedge the fair value of a recognized asset, liability, or a firm commitment. Hedges of cash flow exposure are entered into in order to hedge a forecasted transaction (e.g. forecasted revenue) or the variability of cash flows to be paid or received, related to a recognized liability or asset (e.g. floating rate debt). The Company designates and assigns the derivatives as hedges of forecasted transactions, specific assets or specific liabilities. When hedged assets or liabilities are sold or extinguished or the forecasted transactions being hedged occur or are no longer expected to occur, the Company recognizes the gain or loss on the designated derivatives. The Company’s hedge positions are measured at fair value on the balance sheet. Realized gains and losses from hedges are classified in the income statement consistent with the accounting treatment of the items being hedged. The Company accrues the differential for interest rate swaps to be paid or received under the agreements as interest rates change as adjustments to interest expense over the lives of the swaps. Gains and losses on the termination of effective swap agreements, prior to their original maturity, are deferred and amortized to interest expense over the remaining term of the underlying hedged transactions. The Company enters into derivatives that are not designated as hedges and do not qualify for hedge accounting. These derivatives are intended to offset certain economic exposures of the Company and are carried at fair value with changes in value recorded in earnings. Cash flows from hedging activities are classified in the Consolidated Statements of Cash Flows under the same category as the cash flows from the related assets, liabilities or forecasted transactions (see Notes 9 and 18). |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of available evidence, it is more likely than not that some amount of recorded deferred tax assets will not be realized, a valuation allowance is established for the amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized. A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. |
Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy | Redeemable Noncontrolling Interests The Company consolidates the results of certain subsidiaries that are less than 100% owned and for which the noncontrolling interest shareholders have rights to require the Company to purchase their interests in these subsidiaries. The most significant of these are BAMTech and Hulu. 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 has the right to sell its interest to the Company and the Company has the right to buy MLB’s interest 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 2021 for $350 million. The Company has the right to acquire the NHL interest in fiscal 2021 for $500 million. The MLB and NHL interests are required to be recorded at a minimum value equal to the greater of (i) their acquisition date fair value adjusted for their share (if any) of earnings, losses, or dividends (“adjusted value”) or (ii) an accreted value from the date of the acquisition to the applicable redemption date (“accreted value”). As the accreted value is generally always higher than the adjusted value, the MLB and NHL interests are not allocated their portion of BAMTech losses. Therefore, the MLB and NHL interests are accreted to the estimated redemption value as of the earliest redemption date. As of October 3, 2020, the guaranteed floor value for the MLB interest, accreted from the date of acquisition was $710 million. The NHL previously had a right to sell its interest to the Company in fiscal 2020 for $300 million, which expired unexercised in the fourth quarter. As the NHL’s remaining right to sell its interest to the Company in fiscal 2021 is for $350 million, the Company began accreting the NHL interest to $350 million. As of October 3, 2020, the accreted value of the NHL interest was $313 million. As part of the TFCF acquisition, the Company acquired TFCF’s 30% interest in Hulu increasing our ownership in Hulu to 60%. Subsequent to the acquisition, Hulu redeemed Warner Media LLC’s (WM) 10% interest in Hulu. The redemption was funded by the Company and Hulu’s remaining noncontrolling interest holder, NBC Universal (NBCU). This resulted in the Company’s and NBCU’s interests in Hulu increasing to 67% and 33%, respectively. On May 13, 2019, the Company entered into a put/call agreement with NBCU that provided the Company with full operational control of Hulu. Under the agreement, beginning in January 2024, NBCU has the option to require the Company to purchase NBCU’s interest in Hulu and the Company has the option to require NBCU to sell its interest in Hulu to the Company, 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 estimated redemption value. At October 3, 2020, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $8.1 billion. 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 Consolidated Statements of Operations. |
Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing net income attributable to Disney by the weighted average number of common shares outstanding during the year. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the year, which is calculated using the treasury-stock method for equity-based awards (Awards). Common equivalent shares are excluded from the computation in periods for which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the 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: 2020 2019 2018 Weighted average number of common and common equivalent shares outstanding (basic) 1,808 1,656 1,499 Weighted average dilutive impact of Awards (1) — 10 8 Weighted average number of common and common equivalent shares outstanding (diluted) 1,808 1,666 1,507 Awards excluded from diluted earnings per share 35 7 12 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. |
Description of the Business a_2
Description of the Business and Segment Information (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Information by Operating Segments | The following tables provide select segment and regional financial information: 2020 2019 2018 Revenues Media Networks $ 28,393 $ 24,827 $ 21,922 Parks, Experiences and Products Third parties 17,038 26,786 25,257 Intersegment (536) (561) (556) 16,502 26,225 24,701 Studio Entertainment Third parties 9,100 10,566 9,509 Intersegment 536 561 556 9,636 11,127 10,065 Direct-to-Consumer & International 16,967 9,386 3,414 Eliminations (1) (6,110) (1,958) (668) Total consolidated revenues $ 65,388 $ 69,607 $ 59,434 Segment operating income (loss) Media Networks $ 9,022 $ 7,479 $ 7,338 Parks, Experiences and Products (81) 6,758 6,095 Studio Entertainment 2,501 2,686 3,004 Direct-to-Consumer & International (2,806) (1,835) (738) Eliminations (1) (528) (241) (10) Total segment operating income (2) $ 8,108 $ 14,847 $ 15,689 Reconciliation of segment operating income to income from continuing operations before income taxes Segment operating income $ 8,108 $ 14,847 $ 15,689 Corporate and unallocated shared expenses (817) (987) (744) Restructuring and impairment charges (5,735) (1,183) (33) Other income, net 1,038 4,357 601 Interest expense, net (1,491) (978) (574) Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (3) (2,846) (1,595) — Impairment of equity investments (4) — (538) (210) Income (loss) from continuing operations before income taxes $ (1,743) $ 13,923 $ 14,729 Capital expenditures Media Networks Cable Networks $ 61 $ 93 $ 96 Broadcasting 51 81 107 Parks, Experiences and Products Domestic 2,145 3,294 3,223 International 759 852 677 Studio Entertainment 77 88 96 Direct-to-Consumer & International 594 258 107 Corporate 335 210 159 Total capital expenditures $ 4,022 $ 4,876 $ 4,465 2020 2019 2018 Depreciation expense Media Networks $ 203 $ 191 $ 199 Parks, Experiences and Products Domestic 1,634 1,474 1,449 International 694 724 768 Studio Entertainment 87 74 55 Direct-to-Consumer & International 348 214 106 Depreciation expense included in segment operating income 2,966 2,677 2,577 Corporate 174 167 181 Total depreciation expense $ 3,140 $ 2,844 $ 2,758 Amortization of intangible assets Media Networks $ 4 $ — $ — Parks, Experiences and Products 109 108 110 Studio Entertainment 59 61 64 Direct-to-Consumer & International 112 111 79 Amortization of intangible assets included in segment operating income 284 280 253 TFCF and Hulu intangible assets 1,921 1,043 — Total amortization of intangible assets $ 2,205 $ 1,323 $ 253 October 3, 2020 September 28, 2019 Identifiable assets (5) Media Networks $ 62,220 $ 63,519 Parks, Experiences and Products 42,320 41,978 Studio Entertainment 32,811 34,323 Direct-to-Consumer & International 45,538 48,606 Corporate (6) 19,691 6,025 Eliminations (1,031) (467) Total consolidated assets $ 201,549 193,984 2020 2019 2018 Revenues Americas $ 51,992 $ 53,805 $ 46,877 Europe 7,333 8,006 7,026 Asia Pacific 6,063 7,796 5,531 $ 65,388 $ 69,607 $ 59,434 Segment operating income Americas $ 5,819 $ 10,247 $ 11,898 Europe 1,273 2,433 1,922 Asia Pacific 1,016 2,167 1,869 $ 8,108 $ 14,847 $ 15,689 October 3, 2020 September 28, 2019 Long-lived assets (7) Americas $ 141,674 $ 138,674 Europe 7,672 10,793 Asia Pacific 12,235 12,703 $ 161,581 $ 162,170 (1) Intersegment content transactions are as follows: 2020 2019 2018 Revenues: Studio Entertainment: Content transactions with Media Networks $ (188) $ (106) $ (169) Content transactions with Direct-to-Consumer & International (2,108) (272) (28) Media Networks: Content transactions with Direct-to-Consumer & International (3,814) (1,580) (471) Total $ (6,110) $ (1,958) $ (668) Operating Income: Studio Entertainment: Content transactions with Media Networks $ 3 $ (19) $ (8) Content transactions with Direct-to-Consumer & International (158) (80) — Media Networks: Content transactions with Direct-to-Consumer & International (373) (142) (2) Total $ (528) $ (241) $ (10) (2) Equity in the income (loss) of investees is as follows: 2020 2019 2018 Media Networks $ 737 $ 703 $ 711 Parks, Experiences and Products (19) (13) (23) Studio Entertainment (1) — — Direct-to-Consumer & International (40) (240) (580) Equity in the income of investees included in segment operating income 677 450 108 Impairment of equity investments — (538) (210) Amortization of TFCF intangible assets related to equity investees (26) (15) — Equity in the income (loss) of investees $ 651 $ (103) $ (102) (3) For fiscal 2020, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,921 million, $899 million and $26 million respectively. For fiscal 2019, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,043 million, $537 million and $15 million, respectively. (4) Impairment of equity investments for fiscal 2019 primarily reflects the impairments of Vice Group Holding Inc. and of an investment in a cable channel at A+E Television Networks ($353 million and $170 million, respectively). Impairment of equity investments for fiscal 2018 reflects impairments of Vice Group Holding Inc. and Villages Nature ($157 million and $53 million, respectively). (5) Equity method investments included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 2,002 $ 2,018 Parks, Experiences and Products 3 3 Studio Entertainment 2 8 Direct-to-Consumer & International 570 821 Corporate 55 72 $ 2,632 $ 2,922 Intangible assets included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 7,242 $ 7,861 Parks, Experiences and Products 3,066 3,177 Studio Entertainment 2,031 2,140 Direct-to-Consumer & International 6,814 9,962 Corporate 20 75 $ 19,173 $ 23,215 (6) Primarily fixed assets and cash and cash equivalents. (7) Long-lived assets are total assets less: current assets, long-term receivables, deferred taxes, financial investments and the fair value of derivative instruments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Accounting Policies [Abstract] | |
Financial Statement Impact Presented Under New Guidance | The impact on the Consolidated Statement of Operations for fiscal 2019 due to the adoption of the new revenue guidance was as follows: Results Assuming Impact of New Revenue Guidance Reported Revenues $ 69,262 $ 345 $ 69,607 Cost and Expenses (57,523) (254) (57,777) Income Taxes (3,005) (21) (3,026) Net Income 11,514 70 11,584 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. October 3, 2020 September 28, 2019 September 29, 2018 Cash and cash equivalents $ 17,914 $ 5,418 $ 4,150 Restricted cash included in: Other current assets 3 26 1 Other assets 37 11 4 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 17,954 $ 5,455 $ 4,155 |
Depreciation Computed on Straight-Line Method Over Estimated Useful Lives | Depreciation is computed on the straight-line method, generally over estimated useful lives as follows: Attractions, buildings and improvements 20 – 40 years Furniture, fixtures and equipment 3 – 25 years Land improvements 20 – 40 years Leasehold improvements Life of lease or asset life if less |
Expected Aggregate Annual Amortization Expense for Existing Amortizable Intangible Assets | The Company expects its aggregate annual amortization expense for amortizable intangible assets for fiscal 2021 through 2025 to be as follows: 2021 $ 2,055 2022 1,995 2023 1,808 2024 1,570 2025 1,471 |
Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Number of 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: 2020 2019 2018 Weighted average number of common and common equivalent shares outstanding (basic) 1,808 1,656 1,499 Weighted average dilutive impact of Awards (1) — 10 8 Weighted average number of common and common equivalent shares outstanding (diluted) 1,808 1,666 1,507 Awards excluded from diluted earnings per share 35 7 12 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source: 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 15,018 $ — $ — $ 3,673 $ (762) $ 17,929 Advertising 6,374 4 — 4,477 — 10,855 Subscription fees — — — 7,645 — 7,645 Theme park admissions — 4,038 — — — 4,038 Resort and vacations — 3,402 — — — 3,402 Retail and wholesale sales of merchandise, food and beverage — 4,952 — — — 4,952 TV/SVOD distribution licensing 6,489 — 4,557 745 (5,348) 6,443 Theatrical distribution licensing — — 2,134 — — 2,134 Merchandise licensing — 2,674 536 32 — 3,242 Home entertainment — — 1,528 84 — 1,612 Other 512 1,432 881 311 — 3,136 Total revenues $ 28,393 $ 16,502 $ 9,636 $ 16,967 $ (6,110) $ 65,388 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 13,433 $ — $ — $ 2,768 $ (253) $ 15,948 Advertising 6,965 6 — 3,542 — 10,513 Subscription fees — — — 2,115 — 2,115 Theme park admissions — 7,540 — — — 7,540 Resort and vacations — 6,266 — — — 6,266 Retail and wholesale sales of merchandise, food and beverage — 7,716 — — — 7,716 TV/SVOD distribution licensing 4,046 — 2,920 482 (1,705) 5,743 Theatrical distribution licensing — — 4,726 — — 4,726 Merchandise licensing — 2,768 561 51 — 3,380 Home entertainment — — 1,734 97 — 1,831 Other 383 1,929 1,186 331 — 3,829 Total revenues $ 24,827 $ 26,225 $ 11,127 $ 9,386 $ (1,958) $ 69,607 2018 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Affiliate fees $ 11,907 $ — $ — $ 1,372 $ — $ 13,279 Advertising 6,586 7 — 1,311 — 7,904 Subscription fees — — — 168 — 168 Theme park admissions — 7,183 — — — 7,183 Resort and vacations — 5,938 — — — 5,938 Retail and wholesale sales of merchandise, food and beverage — 7,365 — — — 7,365 TV/SVOD distribution licensing 3,120 — 2,340 105 (668) 4,897 Theatrical distribution licensing — — 4,303 — — 4,303 Merchandise licensing — 2,566 556 70 — 3,192 Home entertainment — — 1,647 103 — 1,750 Other 309 1,642 1,219 285 — 3,455 Total revenues $ 21,922 $ 24,701 $ 10,065 $ 3,414 $ (668) $ 59,434 Amounts for fiscal 2018 reflect our historical accounting prior to the adoption of new revenue guidance. |
Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets: 2020 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Americas $ 26,566 $ 12,524 $ 5,671 $ 12,498 $ (5,267) $ 51,992 Europe 1,378 1,982 2,609 2,016 (652) 7,333 Asia Pacific 449 1,996 1,356 2,453 (191) 6,063 Total revenues $ 28,393 $ 16,502 $ 9,636 $ 16,967 $ (6,110) $ 65,388 2019 Media Parks, Experiences and Products Studio Entertainment Direct-to-Consumer & International Eliminations Consolidated Americas $ 23,767 $ 19,868 $ 6,050 $ 5,759 $ (1,639) $ 53,805 Europe 785 3,135 2,956 1,260 (130) 8,006 Asia Pacific 275 3,222 2,121 2,367 (189) 7,796 Total revenues $ 24,827 $ 26,225 $ 11,127 $ 9,386 $ (1,958) $ 69,607 |
Contract with Customer, Asset and Liability | Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: October 3, September 28, Contract assets $ 70 $ 150 Accounts Receivable Current 11,340 12,755 Non-current 1,789 1,962 Allowance for credit losses (460) (375) Deferred revenues Current 3,688 4,050 Non-current 513 619 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes our allocation of the purchase price (in billions) (1) : Cash and cash equivalents $ 25.7 Receivables 5.1 Film and television costs 17.7 Investments 1.0 Intangible assets 17.9 Net assets held for sale 11.4 Accounts payable and other liabilities (12.5) Borrowings (21.7) Deferred income taxes (2) (5.7) Other net liabilities acquired (4.0) Noncontrolling interests (10.4) Goodwill (2) 49.8 Fair value of net assets acquired 74.2 Less: Disney’s previously held 30% interest in Hulu (4.7) Total purchase price $ 69.5 (1) Total may not equal the sum of the column due to rounding. (2) In the fourth quarter of fiscal 2020, we adjusted the amount of deferred tax liabilities by $0.6 billion and recorded an offsetting adjustment to increase goodwill for this amount. |
Business Acquisition, Summarized Financial Information of Acquiree | 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 Consolidated Statements of Operations for fiscal 2020 and fiscal 2019. In addition, the table provides the impact of intercompany eliminations of transactions between the Company, TFCF and Hulu: Year Ended October 3, 2020 September 28, 2019 TFCF (before intercompany eliminations): Revenues $ 12,999 $ 7,228 Net loss from continuing operations (245) (958) Hulu (before intercompany eliminations): Revenues $ 7,052 $ 2,865 Net loss from continuing operations (1,017) (695) Intercompany eliminations: Revenues $ (2,956) $ (1,205) Net loss from continuing operations (225) (151) |
Business Acquisition, Pro Forma Information | The following pro forma summary presents consolidated information of the Company as if the acquisition of TFCF and consolidation of Hulu had occurred on October 1, 2017: 2019 2018 Revenues $ 78,047 $ 76,468 Net income 7,511 13,733 Net income attributable to Disney 7,206 13,923 Earnings per share attributable to Disney: Diluted $ 3.68 $ 7.66 Basic 3.70 7.71 |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Media Parks, Studio Entertainment Direct-to-Consumer & International Total Balance at Sept. 29, 2018 $ 15,989 $ 4,487 $ 7,094 $ 3,699 $ 31,269 Acquisitions (1) 17,434 1,048 10,711 19,892 49,085 Dispositions — — — — — Other, net — — (8) (53) (61) Balance at Sept. 28, 2019 $ 33,423 $ 5,535 $ 17,797 $ 23,538 $ 80,293 Acquisitions (2) 568 15 98 51 732 Dispositions — — — — — Impairments (See Note 19) — — — (3,074) (3,074) Currency translation adjustments and other, net — — (100) (162) (262) Balance at Oct. 3, 2020 $ 33,991 $ 5,550 $ 17,795 $ 20,353 $ 77,689 (1) Represents the acquisition of TFCF and consolidation of Hulu. (2) Reflects updates to allocation of purchase price for the acquisition of TFCF. |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Other Income and Expenses [Abstract] | |
Other income, net | Other income, net is as follows: 2020 2019 2018 DraftKings gain $ 973 $ — $ — Gain on sale of an investment 65 — — Hulu gain (see Note 4) — 4,794 — Insurance recoveries related to legal matters — 46 38 Charge for the extinguishment of a portion of the debt originally assumed in the TFCF acquisition (see Note 9) — (511) — Gain on sale of real estate, property rights and other — 28 563 Other income, net $ 1,038 $ 4,357 $ 601 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Investments [Abstract] | |
Investments | Investments consist of the following: October 3, September 28, Investments, equity basis $ 2,632 $ 2,922 Investments, other 1,271 302 $ 3,903 $ 3,224 |
Combined Financial Information for Equity Investments | A summary of combined financial information for equity investments is as follows: Results of Operations: 2020 2019 2018 Revenues $ 7,849 $ 9,405 $ 9,085 Net income (loss) 1,187 133 (152) Balance Sheet October 3, September 28, September 29, Current assets $ 4,133 $ 3,350 $ 4,542 Non-current assets 6,776 9,666 9,998 $ 10,909 $ 13,016 $ 14,540 Current liabilities $ 2,224 $ 2,182 $ 3,197 Non-current liabilities 3,784 5,452 4,840 Redeemable preferred stock — — 1,362 Shareholders’ equity 4,901 5,382 5,141 $ 10,909 $ 13,016 $ 14,540 |
International Theme Parks (Tabl
International Theme Parks (Tables) | 12 Months Ended |
Oct. 03, 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 Consolidated Balance Sheets: October 3, 2020 September 28, 2019 Cash and cash equivalents $ 372 $ 655 Other current assets 91 102 Total current assets 463 757 Parks, resorts and other property 6,720 6,608 Other assets 191 9 Total assets $ 7,374 $ 7,374 Current liabilities $ 486 $ 447 Borrowings - long-term 1,213 1,114 Other long-term liabilities 403 189 Total liabilities $ 2,102 $ 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 Consolidated Statement of Operations for fiscal 2020: Revenues $ 1,805 Costs and expenses (3,032) Equity in the loss of investees (19) |
Produced and Acquired_License_2
Produced and Acquired/Licensed Content Costs and Advances (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Other Industries [Abstract] | |
Balances of Produced and Licensed Content Costs | Total capitalized produced, licensed and acquired library content by predominant monetization strategy is as follows: As of October 3, 2020 Predominantly Monetized Individually Predominantly Total Produced and acquired library content Theatrical film costs Released, less amortization $ 3,000 $ 2,601 $ 5,601 Completed, not released 522 210 732 In-process 3,322 259 3,581 In development or pre-production 262 16 278 $ 7,106 $ 3,086 10,192 Television costs Released, less amortization $ 2,090 $ 5,584 $ 7,674 Completed, not released 33 510 543 In-process 263 1,831 2,094 In development or pre-production 6 87 93 $ 2,392 $ 8,012 10,404 Licensed content - Programming rights and advances 6,597 Total produced, licensed and acquired library content $ 27,193 Current portion $ 2,171 Non-current portion $ 25,022 |
Amortization of Produced and Licensed Content Costs | Amortization of produced, licensed and acquired library content is as follows: Year Ended October 3, 2020 Predominantly Predominantly Total Theatrical film costs $ 1,711 $ 962 $ 2,673 Television costs 2,594 4,070 6,664 Total produced and acquired library content costs $ 4,305 $ 5,032 9,337 Licensed content - Programming rights and advances 11,241 Total produced, licensed and acquired library content costs (1) $ 20,578 (1) Primarily included in “Costs of services” in the Consolidated Statements of Operations. |
Expected Amortization of Produced and Licensed Content | Total expected amortization by fiscal year of completed (released and not released) produced, licensed and acquired library content on the balance sheet as of October 3, 2020 is as follows: Predominantly Monetized Individually Predominantly Total Produced content Theatrical film costs Released 2021 $ 731 $ 460 $ 1,191 2022 347 387 734 2023 195 207 402 Completed, not released 2021 488 8 496 Television costs Released 2021 $ 893 $ 1,476 $ 2,369 2022 460 892 1,352 2023 286 570 856 Completed, not released 2021 4 182 186 Licensed content - Television programming rights and advances 2021 $ — $ 3,882 $ 3,882 2022 — 1,338 1,338 2023 — 606 606 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings including Impact of Interest Rate Swaps Designated as Hedges | The Company’s borrowings, including the impact of interest rate and cross-currency swaps, are summarized as follows: October 3, 2020 Oct. 3, 2020 Sept. 28, 2019 Stated Interest Rate (1) Pay Floating Interest rate and Cross- Currency Swaps (2) Effective Interest Rate (3) Swap Commercial paper $ 2,023 $ 5,342 — $ — 0.96% U.S. dollar denominated notes (4) 52,736 39,424 3.81% 13,875 3.08% 2021-2031 Foreign currency denominated debt 1,983 1,044 2.99% 1,920 2.47% 2027 Other (5) 583 62 — 57,325 45,872 3.64% 15,795 2.98% Asia Theme Parks borrowings 1,303 1,114 2.11% — 5.51% Total borrowings 58,628 46,986 3.57% 15,795 3.04% Less current portion 5,711 8,857 3.24% 750 2.76% Total long-term borrowings $ 52,917 $ 38,129 $ 15,045 (1) The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at October 3, 2020; these rates are not necessarily an indication of future interest rates. (2) Amounts represent notional values of interest rate and cross-currency swaps outstanding as of October 3, 2020. (3) The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs. (4) Includes net debt issuance discounts, costs and purchase accounting adjustments totaling a net premium of $2.2 billion and a net premium of $2.5 billion at October 3, 2020 and September 28, 2019, respectively. (5) Includes market value adjustments for debt with qualifying hedges, which increase borrowings by $509 million and $31 million at October 3, 2020 and September 28, 2019, respectively. |
Schedule of Commercial Paper | At October 3, 2020, the Company’s bank facilities, which are with a syndicate of lenders, were as follows: Committed Capacity Unused Facility expiring March 2021 $ 5,250 $ — $ 5,250 Facility expiring April 2021 5,000 — 5,000 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 Total $ 17,250 $ — $ 17,250 |
Commercial Paper Activity | Commercial paper activity is as follows: Commercial paper with original maturities less than three months, net (1) Commercial paper with original maturities greater than three months Total Balance at Sept. 29, 2018 $ 50 $ 955 $ 1,005 Additions 1,881 6,889 8,770 Payments — (4,452) (4,452) Other Activity 3 16 19 Balance at Sept. 28, 2019 $ 1,934 $ 3,408 $ 5,342 Additions — 11,500 11,500 Payments (1,961) (12,893) (14,854) Other Activity 27 8 35 Balance at Oct. 3, 2020 $ — $ 2,023 $ 2,023 (1) Borrowings and reductions of borrowings are reported net. |
Total Borrowings Excluding Market Value Adjustments, Scheduled Maturities | Total borrowings, excluding market value adjustments and debt issuance premiums, discounts and costs, have the following scheduled maturities: Fiscal Year: Before Asia Total 2021 $ 5,620 $ 92 $ 5,712 2022 3,858 — 3,858 2023 1,242 — 1,242 2024 2,869 — 2,869 2025 3,640 — 3,640 Thereafter 37,387 1,211 38,598 $ 54,616 $ 1,303 $ 55,919 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income Before Income Taxes | Income (Loss) Before Income Taxes 2020 2019 2018 Domestic (including U.S. exports) $ 4,706 $ 12,389 $ 12,914 Foreign subsidiaries (1) (6,449) 1,534 1,815 Total income (loss) from continuing operations (1,743) 13,923 14,729 Income (loss) from discontinued operations (42) 726 — $ (1,785) $ 14,649 $ 14,729 (1) Includes goodwill and intangible asset impairment in fiscal 2020. |
Income Tax Expense (Benefit) | Income Tax Expense (Benefit) Current 2020 2019 2018 Federal $ 95 $ 14 $ 2,240 State 148 112 362 Foreign (1) 731 824 642 974 950 3,244 Deferred Federal (2) 279 1,829 (1,577) State (29) 259 (20) Foreign (3) (525) (12) 16 (275) 2,076 (1,581) Income tax expense from continuing operations 699 3,026 1,663 Income tax expense from discontinued operations (10) 39 — $ 689 $ 3,065 $ 1,663 (1) Includes foreign withholding taxes. (2) Includes the Tax Act Deferred Remeasurement in fiscal 2018. (3) Includes the tax effect of the intangible impairment in fiscal 2020. |
Schedule of Deferred Tax Assets and Liabilities | Components of Deferred Tax (Assets) and Liabilities October 3, 2020 September 28, 2019 Deferred tax assets Net operating losses and tax credit carryforwards (1) $ (3,137) $ (2,181) Accrued liabilities (2,952) (2,575) Lease liabilities (825) (23) Other (652) (540) Total deferred tax assets (7,566) (5,319) Deferred tax liabilities Depreciable, amortizable and other property 8,574 7,710 Investment in U.S. entities 1,956 2,258 Right-of-use assets 740 — Licensing revenues 189 573 Investment in foreign entities 266 146 Other 390 212 Total deferred tax liabilities 12,115 10,899 Net deferred tax liability before valuation allowance 4,549 5,580 Valuation allowance 2,410 1,912 Net deferred tax liability $ 6,959 $ 7,492 (1) As of October 3, 2020 and September 28, 2019, includes approximately $1.4 billion and $1.0 billion, respectively, of International Theme Park net operating losses and approximately $0.7 billion and $0.2 billion, respectively of foreign tax credits in the U.S. The International Theme Park net operating losses are primarily in France and, to a lesser extent, Hong Kong and China. Losses in France and Hong Kong have an indefinite carryforward period and losses in China have a five-year carryforward period. Foreign tax credits in the U.S. have a ten-year carryforward period. |
Summary of Valuation Allowance | The following table details the change in valuation allowance for fiscal 2020, 2019 and 2018 (in billions): Balance at Beginning of Period Charges to Tax Expense Changes Due to Balance at End of Period Year ended October 3, 2020 $ 1.9 $ 0.6 $ (0.1) $ 2.4 Year ended September 28, 2019 1.4 (0.1) 0.6 1.9 Year ended September 29, 2018 1.7 (0.3) — 1.4 |
Reconciliation of Effective Income Tax Rate to Federal Rate | 2020 2019 2018 Federal income tax rate 21.0 % 21.0 % 24.5 % State taxes, net of federal benefit 3.4 2.2 1.9 Foreign derived income — (1.1) — Domestic production activity deduction — — (1.4) Goodwill impairment (41.1) — — Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (13.2) 0.1 (1.1) Legislative changes 4.4 (0.3) (11.5) Valuation allowance (14.6) 0.1 0.4 Other, including tax reserves and related interest — (0.3) (1.5) (40.1 %) 21.7 % 11.3 % |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows: 2020 2019 2018 Balance at the beginning of the year $ 2,952 $ 648 $ 832 Increases due to acquisitions 34 2,728 — Increases for current year tax positions 26 84 64 Increases for prior year tax positions 134 143 48 Decreases in prior year tax positions (99) (61) (135) Settlements with taxing authorities (307) (590) (161) Balance at the end of the year $ 2,740 $ 2,952 $ 648 |
Pension and Other Benefit Pro_2
Pension and Other Benefit Programs (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Obligations, Assets, Funded Status and Balance Sheet Impacts Associated with Pension and Postretirement Medical Benefit Plans based upon Actuarial Valuations | The following chart summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with the defined benefit pension and postretirement medical benefit plans: Pension Plans Postretirement Medical Plans October 3, September 28, October 3, September 28, Projected benefit obligations Beginning obligations $ (18,531) $ (14,500) $ (1,946) $ (1,609) Acquisition of TFCF — (759) — (65) Service cost (410) (345) (10) (8) Interest cost (527) (592) (56) (67) Actuarial loss (1) (1,958) (2,923) (127) (234) Plan amendments and other 1 32 (12) (11) Benefits paid 662 534 47 48 Curtailments 3 22 — — Ending obligations $ (20,760) $ (18,531) $ (2,104) $ (1,946) Fair value of plans’ assets Beginning fair value $ 14,878 $ 12,728 $ 762 $ 731 Acquisition of TFCF — 587 — — Actual return on plan assets 770 690 38 33 Contributions 664 1,461 9 37 Benefits paid (662) (534) (47) (48) Expenses and other (52) (54) 9 9 Ending fair value $ 15,598 $ 14,878 $ 771 $ 762 Underfunded status of the plans $ (5,162) $ (3,653) $ (1,333) $ (1,184) Amounts recognized in the balance sheet Non-current assets $ 20 $ 5 $ — $ — Current liabilities (59) (54) (5) (5) Non-current liabilities (5,123) (3,604) (1,328) (1,179) $ (5,162) $ (3,653) $ (1,333) $ (1,184) (1) The actuarial loss for both fiscal 2020 and 2019 was primarily due to a reduction in the discount rate from the rate that was used in the preceding fiscal year. |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans 2020 2019 2018 2020 2019 2018 Service cost $ 410 $ 345 $ 350 $ 10 $ 8 $ 10 Other costs (benefits): Interest cost 527 592 489 56 67 60 Expected return on plan assets (1,084) (978) (901) (57) (56) (53) Amortization of prior-year service costs 13 13 13 — — — Recognized net actuarial loss 544 260 348 14 — 14 Total other costs (benefits) — (113) (51) 13 11 21 Net periodic benefit cost $ 410 $ 232 $ 299 $ 23 $ 19 $ 31 |
Key Assumptions | Key assumptions are as follows: Pension Plans Postretirement Medical Plans 2020 2019 2018 2020 2019 2018 Discount rate used to determine the fiscal year‑end benefit obligation 2.82 % 3.22 % 4.31 % 2.80 % 3.22 % 4.31 % Discount rate used to determine the interest cost component of net periodic benefit cost 2.94 % 4.09 % 3.46 % 2.95 % 4.10 % 3.49 % Rate of return on plan assets 7.00 % 7.25 % 7.50 % 7.00 % 7.25 % 7.50 % Weighted average rate of compensation increase to determine the fiscal year‑end benefit obligation 3.20 % 3.20 % 3.20 % n/a n/a n/a Year 1 increase in cost of benefits n/a n/a n/a 7.00 % 7.00 % 7.00 % Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) n/a n/a n/a 4.25 % 4.25 % 4.25 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2034 2033 2032 |
Accumulated Other Comprehensive Loss, Before Tax, Not yet Recognized in Net Periodic Benefit Cost | AOCI, before tax, as of October 3, 2020 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Total Prior service cost $ 27 $ — $ 27 Net actuarial loss 8,915 429 9,344 Total amounts included in AOCI 8,942 429 9,371 Prepaid (accrued) pension cost (3,780) 904 (2,876) Net balance sheet liability $ 5,162 $ 1,333 $ 6,495 |
Plan Assets Investment Policy Ranges for Major Asset Classes | The investment policy ranges for the major asset classes are as follows: Asset Class Minimum Maximum Equity investments 30% 60% Fixed income investments 20% 40% Alternative investments 10% 30% Cash & money market funds —% 10% |
Defined Benefit Plan Assets Measured at Fair Value | The Company’s defined benefit plan assets are summarized by level in the following tables: As of October 3, 2020 Description Level 1 Level 2 Total Plan Asset Mix Cash $ 207 $ — $ 207 1% Common and preferred stocks (1) 3,308 — 3,308 20% Mutual funds 1,154 — 1,154 7% Government and federal agency bonds, notes and MBS 2,326 354 2,680 16% Corporate bonds — 935 935 6% Other mortgage- and asset-backed securities — 106 106 1% Derivatives and other, net (2) 7 5 —% Total investments in the fair value hierarchy $ 6,993 $ 1,402 $ 8,395 Assets valued at NAV as a practical expedient: Common collective funds 3,993 24% Alternative investments 3,375 21% Money market funds and other 606 4% Total investments at fair value $ 16,369 100% As of September 28, 2019 Description Level 1 Level 2 Total Plan Asset Mix Cash $ 197 $ — $ 197 1% Common and preferred stocks (1) 3,468 — 3,468 22% Mutual funds 1,140 — 1,140 7% Government and federal agency bonds, notes and MBS 2,042 404 2,446 16% Corporate bonds — 580 580 4% Other mortgage- and asset-backed securities — 127 127 1% Derivatives and other, net (6) (21) (27) —% Total investments in the fair value hierarchy $ 6,841 $ 1,090 $ 7,931 Assets valued at NAV as a practical expedient: Common collective funds 3,691 24% Alternative investments 2,725 17% Money market funds and other 1,293 8% Total investments at fair value $ 15,640 100% (1) Includes 2.9 million shares of Company common stock valued at $355 million (2% of total plan assets) and 2.9 million shares valued at $373 million (2% of total plan assets) at October 3, 2020 and September 28, 2019, respectively. |
Estimated Future Benefit Payments | The following table presents estimated future benefit payments for the next ten fiscal years: Pension Postretirement Medical Plans (1) 2021 $ 678 $ 59 2022 661 63 2023 691 67 2024 729 72 2025 771 76 2026 – 2030 4,433 446 |
Long Term Rates of Return by Asset Class | The following long-term rates of return by asset class were considered in setting the long-term rate of return on plan assets assumption: Equity Securities 6 % to 10 % Debt Securities 2 % to 4 % Alternative Investments 6 % to 11 % |
One Percentage Point (ppt) Change on Projected Benefit Obligations | A one percentage point (ppt) change in the discount rate and expected long-term rate of return on plan assets would have the following effects on the projected benefit obligations for pension and postretirement medical plans as of October 3, 2020 and on cost for fiscal 2021: Discount Rate Expected Long-Term Increase (decrease) Benefit Projected Benefit Obligations Benefit 1 ppt decrease $ 351 $ 3,988 $ 164 1 ppt increase (303) (3,380) (164) |
Contribution into Multiemployer Pension Plans and Health and Welfare Plans | The following table sets forth our contributions to multiemployer pension and health and welfare benefit plans: 2020 2019 2018 Pension plans $ 221 $ 189 $ 144 Health & welfare plans 217 218 172 Total contributions $ 438 $ 407 $ 316 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Equity [Abstract] | |
Dividends Declared | The Company paid the following dividends in fiscal 2020, 2019 and 2018: 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 $0.84 $1.2 billion Fourth Quarter of Fiscal 2018 First Half 2018 $0.84 $1.3 billion Second Quarter of Fiscal 2018 Second Half 2017 |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table summarizes the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments (1) Unrecognized Foreign AOCI AOCI, before tax Balance at September 30, 2017 $ (93) $ (4,906) $ (523) $ (5,522) Unrealized gains (losses) arising during the period 259 203 (204) 258 Reclassifications of net (gains) losses to net income 35 380 — 415 Balance at September 29, 2018 $ 201 $ (4,323) $ (727) $ (4,849) Unrealized gains (losses) arising during the period 136 (3,457) (359) (3,680) Reclassifications of net (gains) losses to net income (185) 278 — 93 Reclassifications to retained earnings (23) — — (23) Balance at September 28, 2019 $ 129 $ (7,502) $ (1,086) $ (8,459) Unrealized gains (losses) arising during the period (57) (2,468) (2) (2,527) Reclassifications of net (gains) losses to net income (263) 547 — 284 Balance at October 3, 2020 $ (191) $ (9,423) $ (1,088) $ (10,702) Market Value Adjustments (1) Unrecognized Foreign AOCI Tax on AOCI Balance at September 30, 2017 $ 39 $ 1,839 $ 116 $ 1,994 Unrealized gains (losses) arising during the period (68) (47) (13) (128) Reclassifications of net (gains) losses to net income (12) (102) — (114) Balance at September 29, 2018 $ (41) $ 1,690 $ 103 $ 1,752 Unrealized gains (losses) arising during the period (31) 797 28 794 Reclassifications of net (gains) losses to net income 43 (64) — (21) Reclassifications to retained earnings (2) — (667) (16) (683) Balance at September 28, 2019 $ (29) $ 1,756 $ 115 $ 1,842 Unrealized gains (losses) arising during the period 8 572 24 604 Reclassifications of net (gains) losses to net income 61 (127) — (66) Balance at October 3, 2020 $ 40 $ 2,201 $ 139 $ 2,380 Market Value Adjustments (1) Unrecognized Foreign AOCI AOCI, after tax Balance at September 30, 2017 $ (54) $ (3,067) $ (407) $ (3,528) Unrealized gains (losses) arising during the period 191 156 (217) 130 Reclassifications of net (gains) losses to net income 23 278 — 301 Balance at September 29, 2018 $ 160 $ (2,633) $ (624) $ (3,097) Unrealized gains (losses) arising during the period 105 (2,660) (331) (2,886) Reclassifications of net (gains) losses to net income (142) 214 — 72 Reclassifications to retained earnings (2) (23) (667) (16) (706) Balance at September 28, 2019 $ 100 $ (5,746) $ (971) $ (6,617) Unrealized gains (losses) arising during the period (49) (1,896) 22 (1,923) Reclassifications of net (gains) losses to net income (202) 420 — 218 Balance at October 3, 2020 $ (151) $ (7,222) $ (949) $ (8,322) (1) Primarily reflects market value adjustments for cash flow hedges. (2) 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 of AOCI Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows: Gains (losses) in net income: Affected line item in the Consolidated Statements of Operations: 2020 2019 2018 Market value adjustments, primarily cash flow hedges Primarily revenue $ 263 $ 185 $ (35) Estimated tax Income taxes (61) (43) 12 202 142 (23) Pension and postretirement medical expense Cost and expenses — — (380) Interest expense, net (547) (278) — Estimated tax Income taxes 127 64 102 (420) (214) (278) Total reclassifications for the period $ (218) $ (72) $ (301) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Weighted Average Assumptions used in Option-Valuation Model | The weighted average assumptions used in the option-valuation model were as follows: 2020 2019 2018 Risk-free interest rate 1.8% 2.8% 2.4% Expected volatility 23% 23% 23% Dividend yield 1.36% 1.61% 1.57% Termination rate 5.8% 4.8% 4.8% Exercise multiple 1.83 1.75 1.75 |
Impact of Stock Options and Restricted Stock Units on Income | Compensation expense related to stock options and RSUs is as follows: 2020 2019 2018 Stock option $ 101 $ 84 $ 87 RSUs (1) 424 627 306 Total equity-based compensation expense (2) 525 711 393 Tax impact (118) (161) (99) Reduction in net income $ 407 $ 550 $ 294 Equity-based compensation expense capitalized during the period $ 87 $ 81 $ 70 (1) Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). (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. |
Information about Stock Option Transactions | The following table summarizes information about stock option transactions in fiscal 2020 (shares in millions): Shares Weighted Outstanding at beginning of year 23 $ 90.05 Awards forfeited (1) 127.94 Awards granted 4 147.04 Awards exercised (3) 80.17 Outstanding at end of year 23 $ 101.41 Exercisable at end of year 13 $ 84.50 |
Information about Stock Options Vested and Expected to Vest | The following tables summarize information about stock options vested and expected to vest at October 3, 2020 (shares in millions): Vested Range of Exercise Prices Number of Weighted Average Weighted Average $ 0 — $ 50 2 $ 40.54 1.2 $ 51 — $ 80 3 61.03 2.7 $ 81 — $ 110 4 98.65 5.3 $ 111 — $ 140 4 112.32 6.5 13 Expected to Vest Range of Exercise Prices Number of Options (1) Weighted Average Weighted Average $ 100 — $ 125 5 $ 110.06 7.6 $ 126 — $ 150 4 147.84 9.2 9 (1) Number of options expected to vest is total unvested options less estimated forfeitures. |
Information about Restricted Stock Unit Transactions | The following table summarizes information about RSU transactions in fiscal 2020 (shares in millions): Units Weighted Average Unvested at beginning of year 12 $ 110.84 Granted (1) 6 142.77 Vested (5) 108.13 Forfeited (1) 117.25 Unvested at end of year (2)(3) 12 $ 128.56 (1) Includes 0.2 million Performance RSUs. (2) Includes 1.4 million Performance RSUs. (3) Excludes Performance RSUs issued in September 2018 and December 2019, for which vesting is subject to service conditions and the number of units vesting is subject to the discretion of the CEO. At October 3, 2020, the maximum number of these Performance RSUs that could be issued upon vesting is 0.1 million. |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Current Receivables | Current receivables October 3, September 28, Accounts receivable $ 11,299 $ 12,930 Other 1,835 2,894 Allowance for doubtful accounts (426) (343) $ 12,708 $ 15,481 |
Parks, Resorts and Other Property, at Cost | Parks, resorts and other property Attractions, buildings and improvements $ 31,279 $ 29,509 Furniture, fixtures and equipment 22,976 21,265 Land improvements 6,828 6,649 Leasehold improvements 1,028 1,166 62,111 58,589 Accumulated depreciation (35,517) (32,415) Projects in progress 4,449 4,264 Land 1,035 1,165 $ 32,078 $ 31,603 |
Intangible Assets | Intangible assets Character/franchise intangibles, copyrights and trademarks $ 10,572 $ 10,577 MVPD agreements 8,098 9,900 Other amortizable intangible assets 4,309 4,291 Accumulated amortization (5,598) (3,393) Net amortizable intangible assets 17,381 21,375 Indefinite lived intangible assets 1,792 1,840 $ 19,173 $ 23,215 |
Accounts Payable and Other Accrued Liabilities | Accounts payable and other accrued liabilities Accounts payable $ 12,663 $ 13,778 Payroll and employee benefits 2,925 3,010 Other 1,213 974 $ 16,801 $ 17,762 |
Other Long-term Liabilities | Other long-term liabilities Pension and postretirement medical plan liabilities $ 6,451 $ 4,783 Other 10,753 8,977 $ 17,204 $ 13,760 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Commitments for Broadcast Programming Rights, Creative Talent and Other Commitments | Contractual commitments for broadcast programming rights and other commitments including cruise ships and creative talent totaled $58.8 billion at October 3, 2020, payable as follows: Fiscal Year: Broadcast Other Total 2021 $ 12,043 $ 3,051 $ 15,094 2022 8,632 2,291 10,923 2023 6,030 988 7,018 2024 4,972 1,263 6,235 2025 5,058 1,060 6,118 Thereafter 9,643 3,737 13,380 $ 46,378 $ 12,390 $ 58,768 |
Leases (Tables)
Leases (Tables) | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
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 are as follows: October 3, 2020 Right-of-use assets (1) Operating leases $ 3,687 Finance leases 361 Total right-of-use assets 4,048 Short-term lease liabilities (2) Operating leases 747 Finance leases 37 784 Long-term lease liabilities (3) Operating leases 2,640 Finance leases 271 2,911 Total lease liabilities $ 3,695 (1) Included in “Other assets” in the Consolidated Balance Sheet. 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 Consolidated Balance Sheet. (3) Included in “Other long-term liabilities” in the Consolidated Balance Sheet. | |
Components of Lease Costs | The components of lease expense for the year ended October 3, 2020 are as follows: Finance lease cost Amortization of right-of-use assets $ 37 Interest on lease liabilities 16 Operating lease cost 899 Variable fees and other (1) 491 Total lease cost $ 1,443 (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 year ended October 3, 2020 for amounts included in the measurement of lease liabilities as of the beginning of the reporting period is as follows: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 879 Operating cash flows for finance leases 16 Financing cash flows for finance leases 37 Total $ 932 | |
Lease Liability, Fiscal Year Maturity - Operating Lease | Future minimum lease payments, as of October 3, 2020, are as follows: Operating Financing Fiscal year: 2021 $ 840 $ 56 2022 635 56 2023 494 51 2024 367 40 2025 310 35 Thereafter 1,565 482 Total undiscounted future lease payments 4,211 720 Less: Imputed interest (824) (412) Total reported lease liability $ 3,387 $ 308 | |
Lease, Liability, Fiscal Year Maturity - Finance Lease | Future minimum lease payments, as of October 3, 2020, are as follows: Operating Financing Fiscal year: 2021 $ 840 $ 56 2022 635 56 2023 494 51 2024 367 40 2025 310 35 Thereafter 1,565 482 Total undiscounted future lease payments 4,211 720 Less: Imputed interest (824) (412) Total reported lease liability $ 3,387 $ 308 | |
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 Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Oct. 03, 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. See Note 11 for definitions of fair value measures and the Levels within the fair value hierarchy. Fair Value Measurement at October 3, 2020 Description Level 1 Level 2 Level 3 Total Assets Investments $ — $ 1,057 $ — $ 1,057 Derivatives Interest rate — 515 — 515 Foreign exchange — 505 — 505 Other — 1 — 1 Liabilities Derivatives Interest rate — (4) — (4) Foreign exchange — (549) — (549) Other — (22) — (22) Total recorded at fair value $ — $ 1,503 $ — $ 1,503 Fair value of borrowings $ — $ 63,370 $ 1,448 $ 64,818 Fair Value Measurement at September 28, 2019 Description 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) | 12 Months Ended |
Oct. 03, 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 October 3, 2020 Current Other Assets Other Other Long- Derivatives designated as hedges Foreign exchange $ 184 $ 132 $ (77) $ (273) Interest rate — 515 (4) — Other 1 — (15) (4) Derivatives not designated as hedges Foreign exchange 53 136 (98) (101) Interest Rate — — — — Other — — (3) — Gross fair value of derivatives 238 783 (197) (378) Counterparty netting (143) (378) 184 338 Cash collateral (received) paid (26) (142) — 9 Net derivative positions $ 69 $ 263 $ (13) $ (31) As of September 28, 2019 Current Other Assets Other 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: Carrying Amount of Hedged Borrowings (1) Fair Value Adjustments Included in Hedged Borrowings (1) October 3, 2020 September 28, 2019 October 3, 2020 September 28, 2019 Borrowings: Current $ 753 $ 1,121 $ 4 $ (3) Long-term 16,229 9,562 505 34 $ 16,982 $ 10,683 $ 509 $ 31 (1) Includes $34 million and $37 million of gains on terminated interest rate swaps as of October 3, 2020 and September 28, 2019, respectively. |
Adjustments Related to Fair Value Hedges Included in Net Interest Income/(Expense) in Consolidated Statements of Income | The following amounts are included in “Interest expense, net” in the Consolidated Statements of Operations: 2020 2019 2018 Gain (loss) on: Pay-floating swaps $ 479 $ 337 $ (230) Borrowings hedged with pay-floating swaps (479) (337) 230 Benefit (expense) associated with interest accruals on pay-floating swaps 28 (58) (15) |
Effect of foreign Exchange Cash Flow Hedges on AOCI | The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: 2020 2019 Gain (loss) recognized in Other Comprehensive Income $ (63) $ 156 Gain (loss) reclassified from AOCI into the Statement of Operations (1) 269 183 (1) Primarily recorded in revenue. |
Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities by the corresponding line item in which they are recorded in the Consolidated Statements of Operations: Costs and Expenses Interest expense, net Income Tax Expense 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net gains (losses) on foreign currency denominated assets and liabilities $ 10 $ (188) $ (146) $ 1 $ 16 $ 39 $ (35) $ 50 $ 29 Net gains (losses) on foreign exchange risk management contracts not designated as hedges (56) 123 104 — (19) (46) 33 (51) (19) Net gains (losses) $ (46) $ (65) $ (42) $ 1 $ (3) $ (7) $ (2) $ (1) $ 10 |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The changes in restructuring reserves related to the TFCF integration for fiscal 2019 and 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 26 Parks, Experiences and Products 9 Studio Entertainment 92 Direct-to-Consumer & International 264 Corporate 62 Total additions in fiscal 2020 453 Payments in fiscal 2020 (772) Balance at October 3, 2020 $ 357 |
QUARTERLY FINANCIAL SUMMARY (Ta
QUARTERLY FINANCIAL SUMMARY (Tables) | 12 Months Ended |
Oct. 03, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary | QUARTERLY FINANCIAL SUMMARY (in millions, except per share data) (unaudited) Q1 (1) Q2 (1) Q3 (1) Q4 (1) 2020 Revenues $ 20,877 $ 18,025 $ 11,779 $ 14,707 Income (loss) from continuing operations before income taxes 2,626 1,051 (4,840) (580) Segment operating income (9) 3,996 2,407 1,099 606 Net income (loss) from continuing operations 2,168 528 (4,509) (629) Net income (loss) attributable to Disney 2,107 460 (4,721) (710) Loss from discontinued operations, net of tax (21) (8) (3) — Earnings (loss) per share: Diluted - continuing operations $ 1.17 (2) $ 0.26 (3) $ (2.61) (5) $ (0.39) (7) Diluted - total 1.16 0.25 (2.61) (0.39) Basic - continuing operations 1.18 0.26 (2.61) (0.39) Basic - total 1.17 0.25 (2.61) (0.39) 2019 Revenues $ 15,303 $ 14,924 $ 20,262 $ 19,118 Income from continuing operations before income taxes 3,431 7,236 2,009 1,247 Segment operating income (9) 3,655 3,815 3,952 3,425 Net income from continuing operations 2,786 5,589 1,616 906 Net income attributable to Disney 2,788 5,452 1,760 1,054 Income from discontinued operations, net of tax — 22 366 299 Earnings per share: Diluted - continuing operations $ 1.86 $ 3.53 (4) $ 0.79 (6) $ 0.43 (8) Diluted - total 1.86 3.55 0.97 0.58 Basic - continuing operations 1.87 3.55 0.79 0.43 Basic 1.87 3.56 0.98 0.58 (1) On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. (2) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on diluted earnings (loss) per share (EPS)) and restructuring and impairment charges (adverse impact of $0.06 on EPS). (3) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.27 on EPS) and restructuring and impairment charges (adverse impact of $0.06 on EPS). (4) Results included the Hulu gain (favorable impact of $2.46 on EPS), restructuring and impairment charges (adverse impact of $0.33 on EPS), an impairment in our investment in Vice (adverse impact of $0.18 on EPS), and amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.05 on EPS). (5) Results included goodwill and intangible asset impairments at our International Channels business (adverse impact of $2.53 on EPS), amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.28 on EPS), restructuring and impairment charges (adverse impact of $0.04 on EPS), and the DraftKings gain (favorable impact of $0.16 on EPS). (6) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.34 on EPS), restructuring and impairment charges (adverse impact of $0.09 on EPS), equity investment impairments (adverse impact of $0.08 on EPS), and an adjustment to the Hulu gain (adverse impact of $0.05 on EPS). (7) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), restructuring and impairment charges (adverse impact of $0.17 on EPS), the DraftKings gain (favorable impact of $0.25 on EPS), and a non-cash gain on the sale of an investment (favorable impact of $0.03 on EPS). (8) Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), a charge for the settlement of a portion of the debt originally assumed in the TFCF acquisition (adverse impact of $0.22 on EPS), and restructuring and impairment charges (adverse impact of $0.13), and a gain on the deemed settlement of preexisting relationships with TFCF as part of the accounting for the acquisition (favorable impact of $0.01 on EPS). (9) Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. |
Description of the Business a_3
Description of the Business and Segment Information - Financial Information by Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | $ 14,707 | [1] | $ 11,779 | [1] | $ 18,025 | [1] | $ 20,877 | [1] | $ 19,118 | [1] | $ 20,262 | [1] | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||||
Segment operating income | 606 | [1],[2] | 1,099 | [1],[2] | 2,407 | [1],[2] | 3,996 | [1],[2] | 3,425 | [1],[2] | 3,952 | [1],[2] | 3,815 | [2] | 3,655 | [2] | 8,108 | [3] | 14,847 | [3] | 15,689 | [3] | |
Corporate and unallocated shared expenses | (817) | (987) | (744) | ||||||||||||||||||||
Restructuring and impairment charges | (5,735) | (1,183) | (33) | ||||||||||||||||||||
Other income, net | 1,038 | 4,357 | 601 | ||||||||||||||||||||
Interest expense, net | (1,491) | (978) | (574) | ||||||||||||||||||||
Amortization of Intangible Assets and Fair Value Step-up on Film and Television Costs | [4] | (2,846) | (1,595) | 0 | |||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | [5] | 0 | (538) | (210) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | (580) | $ (4,840) | $ 1,051 | $ 2,626 | 1,247 | $ 2,009 | $ 7,236 | $ 3,431 | (1,743) | 13,923 | 14,729 | ||||||||||||
Capital expenditures | 4,022 | 4,876 | 4,465 | ||||||||||||||||||||
Depreciation expense | 3,140 | 2,844 | 2,758 | ||||||||||||||||||||
Amortization of Intangible Assets | 2,205 | 1,323 | 253 | ||||||||||||||||||||
Identifiable assets | 201,549 | 193,984 | 201,549 | 193,984 | |||||||||||||||||||
Long-lived assets | 161,581 | 162,170 | 161,581 | 162,170 | |||||||||||||||||||
Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 51,992 | 53,805 | 46,877 | ||||||||||||||||||||
Segment operating income | 5,819 | 10,247 | 11,898 | ||||||||||||||||||||
Long-lived assets | [6] | 141,674 | 138,674 | 141,674 | 138,674 | ||||||||||||||||||
Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 7,333 | 8,006 | 7,026 | ||||||||||||||||||||
Segment operating income | 1,273 | 2,433 | 1,922 | ||||||||||||||||||||
Long-lived assets | [6] | 7,672 | 10,793 | 7,672 | 10,793 | ||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 6,063 | 7,796 | 5,531 | ||||||||||||||||||||
Segment operating income | 1,016 | 2,167 | 1,869 | ||||||||||||||||||||
Long-lived assets | [6] | 12,235 | 12,703 | 12,235 | 12,703 | ||||||||||||||||||
Intersegment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (2,956) | (1,205) | |||||||||||||||||||||
Media Networks | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 28,393 | 24,827 | 21,922 | ||||||||||||||||||||
Segment operating income | 9,022 | 7,479 | 7,338 | ||||||||||||||||||||
Depreciation expense | 203 | 191 | 199 | ||||||||||||||||||||
Amortization of Intangible Assets | 4 | 0 | 0 | ||||||||||||||||||||
Identifiable assets | [7] | 62,220 | 63,519 | 62,220 | 63,519 | ||||||||||||||||||
Media Networks | Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 26,566 | 23,767 | |||||||||||||||||||||
Media Networks | Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,378 | 785 | |||||||||||||||||||||
Media Networks | Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 449 | 275 | |||||||||||||||||||||
Media Networks | Cable | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Capital expenditures | 61 | 93 | 96 | ||||||||||||||||||||
Media Networks | Broadcasting | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Capital expenditures | 51 | 81 | 107 | ||||||||||||||||||||
Parks, Experiences and Products | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 16,502 | 26,225 | 24,701 | ||||||||||||||||||||
Segment operating income | (81) | 6,758 | 6,095 | ||||||||||||||||||||
Amortization of Intangible Assets | 109 | 108 | 110 | ||||||||||||||||||||
Identifiable assets | [7] | 42,320 | 41,978 | 42,320 | 41,978 | ||||||||||||||||||
Parks, Experiences and Products | Domestic | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Capital expenditures | 2,145 | 3,294 | 3,223 | ||||||||||||||||||||
Depreciation expense | 1,634 | 1,474 | 1,449 | ||||||||||||||||||||
Parks, Experiences and Products | International | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Capital expenditures | 759 | 852 | 677 | ||||||||||||||||||||
Depreciation expense | 694 | 724 | 768 | ||||||||||||||||||||
Parks, Experiences and Products | Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 12,524 | 19,868 | |||||||||||||||||||||
Parks, Experiences and Products | Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,982 | 3,135 | |||||||||||||||||||||
Parks, Experiences and Products | Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,996 | 3,222 | |||||||||||||||||||||
Parks, Experiences and Products | Intersegment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (536) | (561) | (556) | ||||||||||||||||||||
Parks, Experiences and Products | Third Parties | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 17,038 | 26,786 | 25,257 | ||||||||||||||||||||
Studio Entertainment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 9,636 | 11,127 | 10,065 | ||||||||||||||||||||
Segment operating income | 2,501 | 2,686 | 3,004 | ||||||||||||||||||||
Capital expenditures | 77 | 88 | 96 | ||||||||||||||||||||
Depreciation expense | 87 | 74 | 55 | ||||||||||||||||||||
Amortization of Intangible Assets | 59 | 61 | 64 | ||||||||||||||||||||
Identifiable assets | [7] | 32,811 | 34,323 | 32,811 | 34,323 | ||||||||||||||||||
Studio Entertainment | Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 5,671 | 6,050 | |||||||||||||||||||||
Studio Entertainment | Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 2,609 | 2,956 | |||||||||||||||||||||
Studio Entertainment | Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,356 | 2,121 | |||||||||||||||||||||
Studio Entertainment | Intersegment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 536 | 561 | 556 | ||||||||||||||||||||
Studio Entertainment | Third Parties | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 9,100 | 10,566 | 9,509 | ||||||||||||||||||||
Direct-to-Consumer & International | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 16,967 | 9,386 | 3,414 | ||||||||||||||||||||
Segment operating income | (2,806) | (1,835) | (738) | ||||||||||||||||||||
Capital expenditures | 594 | 258 | 107 | ||||||||||||||||||||
Depreciation expense | 348 | 214 | 106 | ||||||||||||||||||||
Amortization of Intangible Assets | 112 | 111 | 79 | ||||||||||||||||||||
Identifiable assets | [7] | 45,538 | 48,606 | 45,538 | 48,606 | ||||||||||||||||||
Direct-to-Consumer & International | Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 12,498 | 5,759 | |||||||||||||||||||||
Direct-to-Consumer & International | Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 2,016 | 1,260 | |||||||||||||||||||||
Direct-to-Consumer & International | Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 2,453 | 2,367 | |||||||||||||||||||||
Total Segments | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Depreciation expense | 2,966 | 2,677 | 2,577 | ||||||||||||||||||||
Amortization of Intangible Assets | 284 | 280 | 253 | ||||||||||||||||||||
TFCF and Hulu | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Amortization of Intangible Assets | 1,921 | 1,043 | 0 | ||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Capital expenditures | 335 | 210 | 159 | ||||||||||||||||||||
Depreciation expense | 174 | 167 | 181 | ||||||||||||||||||||
Identifiable assets | [7],[8] | 19,691 | 6,025 | 19,691 | 6,025 | ||||||||||||||||||
Eliminations | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | [9] | (6,110) | (1,958) | (668) | |||||||||||||||||||
Segment operating income | [9] | (528) | (241) | $ (10) | |||||||||||||||||||
Identifiable assets | [7] | $ (1,031) | $ (467) | (1,031) | (467) | ||||||||||||||||||
Eliminations | Americas | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (5,267) | (1,639) | |||||||||||||||||||||
Eliminations | Europe | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (652) | (130) | |||||||||||||||||||||
Eliminations | Asia Pacific | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | $ (191) | $ (189) | |||||||||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. | ||||||||||||||||||||||
[2] | Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. | ||||||||||||||||||||||
[3] | Equity in the income (loss) of investees is as follows: 2020 2019 2018 Media Networks $ 737 $ 703 $ 711 Parks, Experiences and Products (19) (13) (23) Studio Entertainment (1) — — Direct-to-Consumer & International (40) (240) (580) Equity in the income of investees included in segment operating income 677 450 108 Impairment of equity investments — (538) (210) Amortization of TFCF intangible assets related to equity investees (26) (15) — Equity in the income (loss) of investees $ 651 $ (103) $ (102) | ||||||||||||||||||||||
[4] | For fiscal 2020, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,921 million, $899 million and $26 million respectively. For fiscal 2019, amortization of intangible assets, fair value step-up on film and television costs and intangibles related to TFCF equity investees were $1,043 million, $537 million and $15 million, respectively. | ||||||||||||||||||||||
[5] | Impairment of equity investments for fiscal 2019 primarily reflects the impairments of Vice Group Holding Inc. and of an investment in a cable channel at A+E Television Networks ($353 million and $170 million, respectively). Impairment of equity investments for fiscal 2018 reflects impairments of Vice Group Holding Inc. and Villages Nature ($157 million and $53 million, respectively). | ||||||||||||||||||||||
[6] | Long-lived assets are total assets less: current assets, long-term receivables, deferred taxes, financial investments and the fair value of derivative instruments. | ||||||||||||||||||||||
[7] | Equity method investments included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 2,002 $ 2,018 Parks, Experiences and Products 3 3 Studio Entertainment 2 8 Direct-to-Consumer & International 570 821 Corporate 55 72 $ 2,632 $ 2,922 Intangible assets included in identifiable assets by segment are as follows: October 3, 2020 September 28, 2019 Media Networks $ 7,242 $ 7,861 Parks, Experiences and Products 3,066 3,177 Studio Entertainment 2,031 2,140 Direct-to-Consumer & International 6,814 9,962 Corporate 20 75 $ 19,173 $ 23,215 | ||||||||||||||||||||||
[8] | Primarily fixed assets and cash and cash equivalents. | ||||||||||||||||||||||
[9] | Intersegment content transactions are as follows: 2020 2019 2018 Revenues: Studio Entertainment: Content transactions with Media Networks $ (188) $ (106) $ (169) Content transactions with Direct-to-Consumer & International (2,108) (272) (28) Media Networks: Content transactions with Direct-to-Consumer & International (3,814) (1,580) (471) Total $ (6,110) $ (1,958) $ (668) Operating Income: Studio Entertainment: Content transactions with Media Networks $ 3 $ (19) $ (8) Content transactions with Direct-to-Consumer & International (158) (80) — Media Networks: Content transactions with Direct-to-Consumer & International (373) (142) (2) Total $ (528) $ (241) $ (10) |
Description of the Business a_4
Description of the Business and Segment Information - Financial Information by Operating Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | $ 14,707 | [1] | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | [1] | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||||||||
Segment operating income | 606 | [1],[2] | $ 1,099 | [2] | $ 2,407 | [2] | $ 3,996 | [2] | 3,425 | [1],[2] | $ 3,952 | [2] | $ 3,815 | [2] | $ 3,655 | [2] | 8,108 | [3] | 14,847 | [3] | 15,689 | [3] | |
Equity in the income (loss) of investees | 651 | (103) | (102) | ||||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | [4] | 0 | (538) | (210) | |||||||||||||||||||
Amortization of Intangible Assets Held by Equity Investees | (26) | (15) | 0 | ||||||||||||||||||||
Amortization of Intangible Assets | 2,205 | 1,323 | 253 | ||||||||||||||||||||
Equity Method Investments | 2,632 | 2,922 | 2,632 | 2,922 | |||||||||||||||||||
Goodwill and intangible assets | 19,173 | 23,215 | 19,173 | 23,215 | |||||||||||||||||||
TFCF and Hulu | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Amortization of Intangible Assets Held by Equity Investees | 26 | 15 | |||||||||||||||||||||
Amortization of Intangible Assets | 1,921 | 1,043 | |||||||||||||||||||||
Amortization | 899 | 537 | |||||||||||||||||||||
Intersegment transactions | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (6,110) | (1,958) | (668) | ||||||||||||||||||||
Segment operating income | (528) | (241) | (10) | ||||||||||||||||||||
Media Networks | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 28,393 | 24,827 | 21,922 | ||||||||||||||||||||
Segment operating income | 9,022 | 7,479 | 7,338 | ||||||||||||||||||||
Equity in the income (loss) of investees | 737 | 703 | 711 | ||||||||||||||||||||
Amortization of Intangible Assets | 4 | 0 | 0 | ||||||||||||||||||||
Equity Method Investments | 2,002 | 2,018 | 2,002 | 2,018 | |||||||||||||||||||
Goodwill and intangible assets | 7,242 | 7,861 | 7,242 | 7,861 | |||||||||||||||||||
Media Networks | Studio Entertainment intersegment content transactions | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (188) | (106) | (169) | ||||||||||||||||||||
Segment operating income | 3 | (19) | (8) | ||||||||||||||||||||
Parks, Experiences and Products | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 16,502 | 26,225 | 24,701 | ||||||||||||||||||||
Segment operating income | (81) | 6,758 | 6,095 | ||||||||||||||||||||
Equity in the income (loss) of investees | (19) | (13) | (23) | ||||||||||||||||||||
Amortization of Intangible Assets | 109 | 108 | 110 | ||||||||||||||||||||
Equity Method Investments | 3 | 3 | 3 | 3 | |||||||||||||||||||
Goodwill and intangible assets | 3,066 | 3,177 | 3,066 | 3,177 | |||||||||||||||||||
Studio Entertainment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 9,636 | 11,127 | 10,065 | ||||||||||||||||||||
Segment operating income | 2,501 | 2,686 | 3,004 | ||||||||||||||||||||
Equity in the income (loss) of investees | (1) | 0 | 0 | ||||||||||||||||||||
Amortization of Intangible Assets | 59 | 61 | 64 | ||||||||||||||||||||
Equity Method Investments | 2 | 8 | 2 | 8 | |||||||||||||||||||
Goodwill and intangible assets | 2,031 | 2,140 | 2,031 | 2,140 | |||||||||||||||||||
Direct-to-Consumer & International | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 16,967 | 9,386 | 3,414 | ||||||||||||||||||||
Segment operating income | (2,806) | (1,835) | (738) | ||||||||||||||||||||
Equity in the income (loss) of investees | (40) | (240) | (580) | ||||||||||||||||||||
Amortization of Intangible Assets | 112 | 111 | 79 | ||||||||||||||||||||
Equity Method Investments | 570 | 821 | 570 | 821 | |||||||||||||||||||
Goodwill and intangible assets | 6,814 | 9,962 | 6,814 | 9,962 | |||||||||||||||||||
Direct-to-Consumer & International | Studio Entertainment intersegment content transactions | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (2,108) | (272) | (28) | ||||||||||||||||||||
Segment operating income | (158) | (80) | 0 | ||||||||||||||||||||
Direct-to-Consumer & International | Media Networks intersegment content transactions | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | (3,814) | (1,580) | (471) | ||||||||||||||||||||
Segment operating income | (373) | (142) | (2) | ||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Equity Method Investments | 55 | 72 | 55 | 72 | |||||||||||||||||||
Goodwill and intangible assets | $ 20 | $ 75 | 20 | 75 | |||||||||||||||||||
Total Segments | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Equity in the income (loss) of investees | 677 | 450 | 108 | ||||||||||||||||||||
Amortization of Intangible Assets | $ 284 | 280 | 253 | ||||||||||||||||||||
Vice Media | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | (353) | (157) | |||||||||||||||||||||
Villages Nature | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | $ (53) | ||||||||||||||||||||||
A&E | Viceland | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | $ (170) | ||||||||||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. | ||||||||||||||||||||||
[2] | Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. | ||||||||||||||||||||||
[3] | Equity in the income (loss) of investees is as follows: 2020 2019 2018 Media Networks $ 737 $ 703 $ 711 Parks, Experiences and Products (19) (13) (23) Studio Entertainment (1) — — Direct-to-Consumer & International (40) (240) (580) Equity in the income of investees included in segment operating income 677 450 108 Impairment of equity investments — (538) (210) Amortization of TFCF intangible assets related to equity investees (26) (15) — Equity in the income (loss) of investees $ 651 $ (103) $ (102) | ||||||||||||||||||||||
[4] | Impairment of equity investments for fiscal 2019 primarily reflects the impairments of Vice Group Holding Inc. and of an investment in a cable channel at A+E Television Networks ($353 million and $170 million, respectively). Impairment of equity investments for fiscal 2018 reflects impairments of Vice Group Holding Inc. and Villages Nature ($157 million and $53 million, respectively). |
Description of Business and Seg
Description of Business and Segment Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Jul. 02, 2020 | Aug. 31, 2019 | Mar. 20, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Goodwill and Intangible Asset Impairment | $ 4,953 | $ 0 | $ 0 | |||
Hong Kong Disneyland Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Effective ownership interest | 48.00% | |||||
Shanghai Disney Resort | ||||||
Segment Reporting Information [Line Items] | ||||||
Effective ownership interest | 43.00% | |||||
National Geographic | ||||||
Segment Reporting Information [Line Items] | ||||||
Effective ownership interest | 73.00% | |||||
International Channels | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill and Intangible Asset Impairment | $ 5,000 | |||||
Regional Sports Networks | ||||||
Segment Reporting Information [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 11,000 | |||||
Hulu LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 67.00% | 67.00% | 60.00% | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 30.00% | |||||
A&E | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 50.00% | |||||
Endemol Shine Group | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 50.00% | |||||
Seven TV | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 20.00% | |||||
Equity Method Investment, Economic Ownership Percentage | 49.00% | |||||
Tata Sky Limited | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 30.00% | |||||
Vice Media | Direct-to-Consumer & International | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 24.00% | |||||
Equity Method Investment Diluted Ownership Percentage | 14.00% | |||||
Equity Interest Held by TFCF | Hulu LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 30.00% | |||||
A&E | Viceland | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 50.00% | |||||
Vice Media | Viceland | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investment, Ownership Interest | 50.00% |
Financial Statement Impact Pres
Financial Statement Impact Presented Under New Guidance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 03, 2020 | [1] | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||||||
Revenues | $ 14,707 | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||||
Costs and Expenses | (61,594) | (57,777) | (44,597) | ||||||||||||||
Income taxes | (699) | (3,026) | (1,663) | ||||||||||||||
Net Income | $ (2,474) | 11,584 | $ 13,066 | ||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||||||
Revenues | 69,262 | ||||||||||||||||
Costs and Expenses | (57,523) | ||||||||||||||||
Income taxes | (3,005) | ||||||||||||||||
Net Income | 11,514 | ||||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||||||
Revenues | 345 | ||||||||||||||||
Costs and Expenses | (254) | ||||||||||||||||
Income taxes | (21) | ||||||||||||||||
Net Income | $ 70 | ||||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported in the Consolidated Balance Sheet that sum to the Total Amount in the Statement of Cash Flow (Details) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 17,914 | $ 5,418 | $ 4,150 | |
Restricted Cash and Investments, Current | 3 | 26 | 1 | |
Restricted Cash and Investments, Noncurrent | 37 | 11 | 4 | |
Cash, cash equivalents and restricted cash | $ 17,954 | $ 5,455 | $ 4,155 | $ 4,064 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Depreciation Computed on Straight-Line Method Over Estimated Useful Lives (Detail) | 12 Months Ended |
Oct. 03, 2020 | |
Attractions, Buildings and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Attractions, Buildings and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Life of lease or asset life if less |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Expected Aggregate Annual Amortization Expense for Existing Amortizable Intangible Assets (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Accounting Policies [Abstract] | |
2021 | $ 2,055 |
2022 | 1,995 |
2023 | 1,808 |
2024 | 1,570 |
2025 | $ 1,471 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Number of Awards Excluded from Diluted Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Earnings Per Share [Abstract] | ||||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,808 | 1,656 | 1,499 | |
Weighted average dilutive impact of Awards | 0 | [1] | 10 | 8 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,808 | 1,666 | 1,507 | |
Awards excluded from diluted earnings per share | 35 | 7 | 12 | |
[1] | Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Jun. 27, 2020USD ($) | Dec. 29, 2018USD ($) | Oct. 03, 2020USD ($) | Sep. 28, 2019USD ($)derivatives | Sep. 29, 2018USD ($) | May 13, 2019USD ($) | Apr. 15, 2019USD ($) | Mar. 20, 2019 | Sep. 25, 2017USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Advertising expense | $ 4,700 | $ 4,300 | $ 2,800 | ||||||
Internal-Use software costs capitalized, net of accumulated depreciation | 778 | 927 | |||||||
Impairment of Intangible Assets (Excluding Goodwill) | 5,200 | $ 600 | $ 200 | ||||||
Goodwill, Impairment Loss | 3,074 | ||||||||
Number of Types of Derivatives | derivatives | 2 | ||||||||
Measurement of tax benefit, minimum likelihood of largest amount being realized upon ultimate settlement | 50.00% | ||||||||
Redeemable noncontrolling interest | 9,249 | $ 8,963 | |||||||
Direct-to-Consumer & International | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Goodwill, Impairment Loss | 3,074 | ||||||||
International Channels | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Goodwill, Impairment Loss | $ 3,100 | 3,100 | |||||||
Distribution Rights | International Channels | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 1,900 | $ 1,900 | |||||||
Accounting Standards Update 2014-09 | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Impact of New Accounting Pronouncement on Retained Earnings | $ 116 | ||||||||
BAMTech, LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 75.00% | ||||||||
Hulu LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 67.00% | 67.00% | 60.00% | ||||||
Hulu LLC | Hulu Redemption, NBC Universal Participates | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 67.00% | ||||||||
Vice Media | Direct-to-Consumer & International | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 24.00% | ||||||||
Equity Interest Held by NBC Universal | Hulu LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 33.00% | ||||||||
MLB | BAMTech, LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 15.00% | ||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 710 | ||||||||
NHL | BAMTech, LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 10.00% | ||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 500 | ||||||||
Redeemable noncontrolling interest | $ 313 | ||||||||
NHL | BAMTech, LLC | Expired Right | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 300 | ||||||||
Equity Interest Held by TFCF | Hulu LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 30.00% | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 30.00% | ||||||||
Equity Interest Held by Warner Media LLC | Hulu LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Equity Method Investment, Ownership Interest | 10.00% | ||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 1,400 | ||||||||
Minimum | Equity Interest Held by NBC Universal | Hulu LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 27,500 | ||||||||
Redeemable noncontrolling interest | $ 8,100 | ||||||||
Minimum | MLB | BAMTech, LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 563 | ||||||||
Preferred Stock Return on NCI, Accretion Percentage | 8.00% | ||||||||
Maximum | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortizable intangible assets, maximum amortization period | 40 years | ||||||||
Maximum | NHL | BAMTech, LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 350 | ||||||||
Attractions, Buildings and Improvements | Minimum | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 20 years | ||||||||
Attractions, Buildings and Improvements | Maximum | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 40 years | ||||||||
Software and Software Development Costs | Maximum | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 10 years |
Revenues Disaggregation of Reve
Revenues Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 03, 2020 | [1] | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | $ 14,707 | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | |||||||
Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 17,929 | 15,948 | 13,279 | |||||||||||||||
Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 10,855 | 10,513 | 7,904 | |||||||||||||||
Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 7,645 | 2,115 | 168 | |||||||||||||||
Theme park admissions | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,038 | 7,540 | 7,183 | |||||||||||||||
Resort and vacations | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 3,402 | 6,266 | 5,938 | |||||||||||||||
Retail and wholesale sales of merchandise, food and beverage | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,952 | 7,716 | 7,365 | |||||||||||||||
TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 6,443 | 5,743 | 4,897 | |||||||||||||||
Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,134 | 4,726 | 4,303 | |||||||||||||||
Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 3,242 | 3,380 | 3,192 | |||||||||||||||
Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,612 | 1,831 | 1,750 | |||||||||||||||
Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 3,136 | 3,829 | 3,455 | |||||||||||||||
Media Networks | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 28,393 | 24,827 | 21,922 | |||||||||||||||
Media Networks | Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 15,018 | 13,433 | 11,907 | |||||||||||||||
Media Networks | Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 6,374 | 6,965 | 6,586 | |||||||||||||||
Media Networks | Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Media Networks | TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 6,489 | 4,046 | 3,120 | |||||||||||||||
Media Networks | Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Media Networks | Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Media Networks | Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Media Networks | Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 512 | 383 | 309 | |||||||||||||||
Parks, Experiences and Products | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 16,502 | 26,225 | 24,701 | |||||||||||||||
Parks, Experiences and Products | Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Parks, Experiences and Products | Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4 | 6 | 7 | |||||||||||||||
Parks, Experiences and Products | Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Parks, Experiences and Products | Theme park admissions | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,038 | 7,540 | 7,183 | |||||||||||||||
Parks, Experiences and Products | Resort and vacations | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 3,402 | 6,266 | 5,938 | |||||||||||||||
Parks, Experiences and Products | Retail and wholesale sales of merchandise, food and beverage | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,952 | 7,716 | 7,365 | |||||||||||||||
Parks, Experiences and Products | TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Parks, Experiences and Products | Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Parks, Experiences and Products | Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,674 | 2,768 | 2,566 | |||||||||||||||
Parks, Experiences and Products | Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Parks, Experiences and Products | Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,432 | 1,929 | 1,642 | |||||||||||||||
Studio Entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 9,636 | 11,127 | 10,065 | |||||||||||||||
Studio Entertainment | Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Studio Entertainment | Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Studio Entertainment | Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Studio Entertainment | TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,557 | 2,920 | 2,340 | |||||||||||||||
Studio Entertainment | Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,134 | 4,726 | 4,303 | |||||||||||||||
Studio Entertainment | Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 536 | 561 | 556 | |||||||||||||||
Studio Entertainment | Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,528 | 1,734 | 1,647 | |||||||||||||||
Studio Entertainment | Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 881 | 1,186 | 1,219 | |||||||||||||||
Direct-to-Consumer & International | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 16,967 | 9,386 | 3,414 | |||||||||||||||
Direct-to-Consumer & International | Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 3,673 | 2,768 | 1,372 | |||||||||||||||
Direct-to-Consumer & International | Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 4,477 | 3,542 | 1,311 | |||||||||||||||
Direct-to-Consumer & International | Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 7,645 | 2,115 | 168 | |||||||||||||||
Direct-to-Consumer & International | TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 745 | 482 | 105 | |||||||||||||||
Direct-to-Consumer & International | Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Direct-to-Consumer & International | Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 32 | 51 | 70 | |||||||||||||||
Direct-to-Consumer & International | Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 84 | 97 | 103 | |||||||||||||||
Direct-to-Consumer & International | Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 311 | 331 | 285 | |||||||||||||||
Eliminations | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | [2] | (6,110) | (1,958) | (668) | ||||||||||||||
Eliminations | Affiliate fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | (762) | (253) | 0 | |||||||||||||||
Eliminations | Advertising | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Eliminations | Subscription fees | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Eliminations | TV/SVOD distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | (5,348) | (1,705) | (668) | |||||||||||||||
Eliminations | Theatrical distribution licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Eliminations | Merchandise licensing | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Eliminations | Home entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||||||
Eliminations | Other | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | $ 0 | $ 0 | $ 0 | |||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. | |||||||||||||||||
[2] | Intersegment content transactions are as follows: 2020 2019 2018 Revenues: Studio Entertainment: Content transactions with Media Networks $ (188) $ (106) $ (169) Content transactions with Direct-to-Consumer & International (2,108) (272) (28) Media Networks: Content transactions with Direct-to-Consumer & International (3,814) (1,580) (471) Total $ (6,110) $ (1,958) $ (668) Operating Income: Studio Entertainment: Content transactions with Media Networks $ 3 $ (19) $ (8) Content transactions with Direct-to-Consumer & International (158) (80) — Media Networks: Content transactions with Direct-to-Consumer & International (373) (142) (2) Total $ (528) $ (241) $ (10) |
Revenues Disaggregation of Re_2
Revenues Disaggregation of Revenue by Geographical Markets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 03, 2020 | [1] | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | $ 14,707 | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | |||||||
Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 51,992 | 53,805 | 46,877 | |||||||||||||||
Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 7,333 | 8,006 | 7,026 | |||||||||||||||
Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 6,063 | 7,796 | 5,531 | |||||||||||||||
Media Networks | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 28,393 | 24,827 | 21,922 | |||||||||||||||
Media Networks | Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 26,566 | 23,767 | ||||||||||||||||
Media Networks | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,378 | 785 | ||||||||||||||||
Media Networks | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 449 | 275 | ||||||||||||||||
Parks, Experiences and Products | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 16,502 | 26,225 | 24,701 | |||||||||||||||
Parks, Experiences and Products | Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 12,524 | 19,868 | ||||||||||||||||
Parks, Experiences and Products | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,982 | 3,135 | ||||||||||||||||
Parks, Experiences and Products | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,996 | 3,222 | ||||||||||||||||
Studio Entertainment | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 9,636 | 11,127 | 10,065 | |||||||||||||||
Studio Entertainment | Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 5,671 | 6,050 | ||||||||||||||||
Studio Entertainment | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,609 | 2,956 | ||||||||||||||||
Studio Entertainment | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 1,356 | 2,121 | ||||||||||||||||
Direct-to-Consumer & International | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 16,967 | 9,386 | 3,414 | |||||||||||||||
Direct-to-Consumer & International | Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 12,498 | 5,759 | ||||||||||||||||
Direct-to-Consumer & International | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,016 | 1,260 | ||||||||||||||||
Direct-to-Consumer & International | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | 2,453 | 2,367 | ||||||||||||||||
Eliminations | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | [2] | (6,110) | (1,958) | $ (668) | ||||||||||||||
Eliminations | Americas | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | (5,267) | (1,639) | ||||||||||||||||
Eliminations | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | (652) | (130) | ||||||||||||||||
Eliminations | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Revenues | $ (191) | $ (189) | ||||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. | |||||||||||||||||
[2] | Intersegment content transactions are as follows: 2020 2019 2018 Revenues: Studio Entertainment: Content transactions with Media Networks $ (188) $ (106) $ (169) Content transactions with Direct-to-Consumer & International (2,108) (272) (28) Media Networks: Content transactions with Direct-to-Consumer & International (3,814) (1,580) (471) Total $ (6,110) $ (1,958) $ (668) Operating Income: Studio Entertainment: Content transactions with Media Networks $ 3 $ (19) $ (8) Content transactions with Direct-to-Consumer & International (158) (80) — Media Networks: Content transactions with Direct-to-Consumer & International (373) (142) (2) Total $ (528) $ (241) $ (10) |
Revenues Contract with Customer
Revenues Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Contract with Customer, Asset, Gross | $ 70 | $ 150 |
Accounts Receivable, Gross, Current | 11,299 | 12,930 |
Allowance for Doubtful Accounts Receivable | (460) | (375) |
Deferred Revenue, Current | 3,688 | 4,050 |
Deferred Revenue, Noncurrent | 513 | 619 |
Contract With Customer | ||
Accounts Receivable, Gross, Current | 11,340 | 12,755 |
Accounts Receivable, Gross, Noncurrent | $ 1,789 | $ 1,962 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 1,400 | $ 1,200 |
Revenue, Remaining Performance Obligation, Amount | 16,000 | |
Contract with Customer, Asset, Allowance for Credit Loss | 460 | 375 |
Contract with Customer, Liability, Revenue Recognized | 3,400 | $ 2,700 |
Broadcast programming | ||
Long-Term Receivables, net of allowance for credit losses | 1,000 | |
Mortgage Receivable | ||
Long-Term Receivables, net of allowance for credit losses | 700 | |
Scenario, Unsatisfied performance obligation recognized in fiscal 2021 | ||
Revenue, Remaining Performance Obligation, Amount | 7,000 | |
Scenario, Unsatisfied performance obligation recognized in fiscal 2022 | ||
Revenue, Remaining Performance Obligation, Amount | 4,000 | |
Scenario, Unsatisfied performance obligation recognized in fiscal 2023 | ||
Revenue, Remaining Performance Obligation, Amount | 2,000 | |
Scenario, Unsatisfied performance obligation recognized thereafter | ||
Revenue, Remaining Performance Obligation, Amount | $ 3,000 |
Acquisition Fair Value of Asset
Acquisition Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | Mar. 20, 2019 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 77,689 | $ 80,293 | $ 31,269 | ||
TFCF | Final Allocation | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | [1] | $ 25,700 | |||
Receivables | [1] | 5,100 | |||
Film and television costs | [1] | 17,700 | |||
Investments | [1] | 1,000 | |||
Intangible assets | [1] | 17,900 | |||
Net assets held for sale | [1] | 11,400 | |||
Accounts payable and other liabilities | [1] | (12,500) | |||
Borrowings | [1] | (21,700) | |||
Deferred income taxes | [1],[2] | (5,700) | |||
Other net liabilities acquired | [1] | (4,000) | |||
Noncontrolling interests | [1] | (10,400) | |||
Goodwill | [1],[2] | 49,800 | |||
Fair value of net assets acquired | [1] | 74,200 | |||
Parents Previously Held Equity Interest in Investee Now Consolidated | [1] | (4,700) | |||
Total purchase price | [1] | $ 69,500 | |||
[1] | Total may not equal the sum of the column due to rounding. | ||||
[2] | In the fourth quarter of fiscal 2020, we adjusted the amount of deferred tax liabilities by $0.6 billion and recorded an offsetting adjustment to increase goodwill for this amount. |
Acquisition Fair Value of Ass_2
Acquisition Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Millions | Oct. 03, 2020USD ($) |
TFCF | Valuation Adjustments [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ (600) |
Acquisitions Summarized Financi
Acquisitions Summarized Financial Information of Acquiree (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 03, 2020 | [1] | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues | $ 14,707 | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||||
Intersegment Eliminations | |||||||||||||||||
Revenues | (2,956) | (1,205) | |||||||||||||||
Net Income (loss) from Continuing Operations | (225) | (151) | |||||||||||||||
TFCF | |||||||||||||||||
Revenues | 12,999 | 7,228 | |||||||||||||||
Net Income (loss) from Continuing Operations | (245) | (958) | |||||||||||||||
Hulu LLC | |||||||||||||||||
Revenues | 7,052 | 2,865 | |||||||||||||||
Net Income (loss) from Continuing Operations | $ (1,017) | $ (695) | |||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. |
Acquisitions Pro Forma Financia
Acquisitions Pro Forma Financial Information (Details) - TFCF - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 78,047 | $ 76,468 |
Business Acquisition, Pro Forma Net Income (Loss) | 7,511 | 13,733 |
Business Acquisitions Pro Forma Net Income Loss Attributable to Parent | $ 7,206 | $ 13,923 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 3.68 | $ 7.66 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 3.70 | $ 7.71 |
Acquisitions Changes in Carryin
Acquisitions Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | |||
Goodwill [Roll Forward] | ||||
Beginning balance | $ 80,293 | $ 31,269 | ||
Acquisitions | 732 | [1] | 49,085 | [2] |
Dispositions | 0 | 0 | ||
Goodwill, Impairment Loss | (3,074) | |||
Other, net | (262) | (61) | ||
Ending balance | 77,689 | 80,293 | ||
Media Networks | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 33,423 | 15,989 | ||
Acquisitions | 568 | [1] | 17,434 | [2] |
Dispositions | 0 | 0 | ||
Goodwill, Impairment Loss | 0 | |||
Other, net | 0 | 0 | ||
Ending balance | 33,991 | 33,423 | ||
Parks, Experiences and Products | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 5,535 | 4,487 | ||
Acquisitions | 15 | [1] | 1,048 | [2] |
Dispositions | 0 | 0 | ||
Goodwill, Impairment Loss | 0 | |||
Other, net | 0 | 0 | ||
Ending balance | 5,550 | 5,535 | ||
Studio Entertainment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 17,797 | 7,094 | ||
Acquisitions | 98 | [1] | 10,711 | [2] |
Dispositions | 0 | 0 | ||
Goodwill, Impairment Loss | 0 | |||
Other, net | (100) | (8) | ||
Ending balance | 17,795 | 17,797 | ||
Direct-to-Consumer & International | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 23,538 | 3,699 | ||
Acquisitions | 51 | [1] | 19,892 | [2] |
Dispositions | 0 | 0 | ||
Goodwill, Impairment Loss | (3,074) | |||
Other, net | (162) | (53) | ||
Ending balance | $ 20,353 | $ 23,538 | ||
[1] | Reflects updates to allocation of purchase price for the acquisition of TFCF. | |||
[2] | Represents the acquisition of TFCF and consolidation of Hulu. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2020 | Mar. 20, 2019 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Jul. 02, 2020 | Apr. 15, 2019 | |
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity-based compensation | $ 525 | $ 711 | $ 393 | |||||
RSU compensation expense | [1] | 424 | 627 | 306 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 65 | 0 | 0 | |||||
Equity in the income (loss) of investees | $ 651 | $ (103) | (102) | |||||
Equity Interest Held by TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 10,800 | |||||||
Equity in the income (loss) of investees | 500 | |||||||
Hulu LLC | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 60.00% | 67.00% | 67.00% | |||||
Hulu Gain | $ 4,800 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 30.00% | |||||||
Hulu LLC | Equity Interest Held by TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 30.00% | |||||||
Equity Method Investment, Ownership Interest | 30.00% | |||||||
Hulu LLC | Equity Interest Held by Warner Media LLC | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 10.00% | |||||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 1,400 | |||||||
Hulu LLC | Equity Interest Held by NBC Universal | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 33.00% | |||||||
Endemol Shine Group | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 50.00% | |||||||
Proceeds from Sale of Equity Method Investments | $ 147 | |||||||
Tata Sky Limited | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 30.00% | |||||||
Sky plc | Equity Interest Held by TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 10,800 | |||||||
Equity in the income (loss) of investees | $ 500 | |||||||
Equity Method Investment, Other Transaction Details | 39.00% | |||||||
Hulu Redemption, NBC Universal Participates | Hulu LLC | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 67.00% | |||||||
Discontinued Operations [Member] | Pro Forma | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 900 | 600 | ||||||
Restricted Stock Units | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Unrecognized compensation costs | $ 850 | |||||||
TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
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 | |||||||
Business Acquisition, Share Price | $ 110 | |||||||
Equity-based compensation | $ 361 | |||||||
RSU compensation expense | 164 | |||||||
Business Combination, Acquired Receivable, Fair Value | 5,200 | |||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 5,500 | |||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 300 | |||||||
TFCF | Endemol Shine Group | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 50.00% | |||||||
TFCF | Tata Sky Limited | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Equity Method Investment, Ownership Interest | 30.00% | |||||||
TFCF | Pro Forma | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 400 | |||||||
Interest Expense, Debt | 400 | 500 | ||||||
TFCF | Selling, General and Administrative Expenses | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 200 | |||||||
TFCF | Interest expense, net | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 100 | |||||||
TFCF | Film and Television Production Cost | Pro Forma | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Amortization | 3,100 | 3,400 | ||||||
TFCF | Film and Television Production Cost | Regional Sports Networks | Pro Forma | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Amortization | $ 400 | 800 | ||||||
TFCF | Public Debt | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Principle Balance of Notes Exchanged | $ 16,800 | |||||||
TFCF | Restricted Stock Units | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Unrecognized compensation costs | 219 | |||||||
TFCF | Acceleration | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
RSU compensation expense | $ 164 | |||||||
TFCF | Acceleration | Pro Forma | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
RSU compensation expense | $ 200 | |||||||
Distribution Rights | TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||||||
Trademarks and Trade Names | TFCF | ||||||||
Business Acquisition and Equity Method Investment [Line Items] | ||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years | |||||||
[1] | Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). |
Other Income (Detail)
Other Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Schedule of Other Income and Expense [Line Items] | |||
DraftKings Gain | $ 973 | $ 0 | $ 0 |
Gain on sale of an investment | 65 | 0 | 0 |
Hulu Gain | 0 | 4,794 | 0 |
Insurance recoveries related to legal matters | 0 | 46 | 38 |
Charge for the extinguishment of a portion of the debt originally assumed in the TFCF acquisition | 0 | (511) | 0 |
Gain on sale of real estate, property rights and other | 0 | 28 | 563 |
Other income, net | $ 1,038 | $ 4,357 | $ 601 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Investments [Abstract] | ||
Investments, equity basis | $ 2,632 | $ 2,922 |
Investments, other | 1,271 | 302 |
Investments | $ 3,903 | $ 3,224 |
Investments Combined Financial
Investments Combined Financial Information for Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |||
Results of Operations | |||||||||||||||||
Revenues | $ 14,707 | [1] | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | [1] | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||
Net income (loss) | (2,474) | 11,584 | 13,066 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Current Assets | 35,251 | 28,124 | 35,251 | 28,124 | |||||||||||||
Total assets | 201,549 | 193,984 | 201,549 | 193,984 | |||||||||||||
Current liabilities | 26,628 | 31,341 | 26,628 | 31,341 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 88,263 | 93,889 | 88,263 | 93,889 | |||||||||||||
Total liabilities and equity | 201,549 | 193,984 | 201,549 | 193,984 | |||||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||||||||||||
Results of Operations | |||||||||||||||||
Revenues | 7,849 | 9,405 | 9,085 | ||||||||||||||
Net income (loss) | 1,187 | 133 | (152) | ||||||||||||||
Balance Sheet | |||||||||||||||||
Current Assets | 4,133 | 3,350 | 4,133 | 3,350 | 4,542 | ||||||||||||
Non-current Assets | 6,776 | 9,666 | 6,776 | 9,666 | 9,998 | ||||||||||||
Total assets | 10,909 | 13,016 | 10,909 | 13,016 | 14,540 | ||||||||||||
Current liabilities | 2,224 | 2,182 | 2,224 | 2,182 | 3,197 | ||||||||||||
Non-current Liabilities | 3,784 | 5,452 | 3,784 | 5,452 | 4,840 | ||||||||||||
Redeemable Preferred Stock | 0 | 0 | 0 | 0 | 1,362 | ||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,901 | 5,382 | 4,901 | 5,382 | 5,141 | ||||||||||||
Total liabilities and equity | $ 10,909 | $ 13,016 | $ 10,909 | $ 13,016 | $ 14,540 | ||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Jul. 02, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Excess book value of equity method investments representing intangible assets and goodwill | $ 900 | |||
Revenue from Related Parties | 300 | $ 500 | $ 800 | |
Equity Securities without Readily Determinable Fair Value, Amount | 1,100 | $ 290 | ||
Equity Securities without Readily Determinable Fair Value, Net Book Value, Amount | 215 | |||
Unrealized Gain on Securities | $ 973 | |||
A&E | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Interest | 50.00% | |||
CTV Specialty Television, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Interest | 30.00% | |||
Endemol Shine Group | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Interest | 50.00% | |||
Seven TV | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Interest | 20.00% | |||
Tata Sky Limited | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Interest | 30.00% |
International Theme Parks Impac
International Theme Parks Impact of Consolidating Balance Sheets of International Theme Parks (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and cash equivalents | $ 17,914 | $ 5,418 | $ 4,150 |
Other current assets | 875 | 979 | |
Total current assets | 35,251 | 28,124 | |
Parks, resorts and other property | 32,078 | 31,603 | |
Other assets | 8,433 | 4,715 | |
Total assets | 201,549 | 193,984 | |
Current liabilities | 26,628 | 31,341 | |
Borrowings | 52,917 | 38,129 | |
International Theme Parks | |||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | |||
Cash and cash equivalents | 372 | 655 | |
Other current assets | 91 | 102 | |
Total current assets | 463 | 757 | |
Parks, resorts and other property | 6,720 | 6,608 | |
Other assets | 191 | 9 | |
Total assets | 7,374 | 7,374 | |
Current liabilities | 486 | 447 | |
Borrowings | 1,213 | 1,114 | |
Other long-term liabilities | 403 | 189 | |
Total Liabilities | $ 2,102 | $ 1,750 |
International Theme Parks Imp_2
International Theme Parks Impact of Consolidating Income Statements of International Theme Parks (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 03, 2020 | [1] | Jun. 27, 2020 | [1] | Mar. 28, 2020 | [1] | Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||||||||
Revenues | $ 14,707 | $ 11,779 | $ 18,025 | $ 20,877 | $ 19,118 | $ 20,262 | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | ||||||
Total costs and expenses | (61,594) | (57,777) | (44,597) | ||||||||||||||
Equity in the loss of investees | 651 | $ (103) | $ (102) | ||||||||||||||
International Theme Parks | |||||||||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||||||||
Revenues | 1,805 | ||||||||||||||||
Total costs and expenses | (3,032) | ||||||||||||||||
Equity in the loss of investees | $ (19) | ||||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. |
International Theme Parks - Add
International Theme Parks - Additional Information (Detail) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||
Oct. 03, 2020USD ($) | Oct. 03, 2020HKD ($) | Oct. 03, 2020CNY (¥) | Sep. 28, 2019USD ($) | Oct. 03, 2020CNY (¥) | |
International Theme Parks | |||||
Noncontrolling Interest [Line Items] | |||||
Net Cash Provided by Operating Activities | $ 637 | ||||
Net Cash Used in Investing Activities | 756 | ||||
Net Cash Provided by Financing Activities | 172 | ||||
Asia International Theme Parks | |||||
Noncontrolling Interest [Line Items] | |||||
Royalties And Management Fees | $ 74 | ||||
Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Effective ownership interest | 48.00% | 48.00% | |||
Effective ownership interest by noncontrolling owners | 52.00% | 52.00% | |||
Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Effective ownership interest | 43.00% | 43.00% | |||
Effective ownership interest by noncontrolling owners | 57.00% | 57.00% | |||
Shanghai Disney Resort Management Company | |||||
Noncontrolling Interest [Line Items] | |||||
Effective ownership interest | 70.00% | 70.00% | |||
Effective ownership interest by noncontrolling owners | 30.00% | 30.00% | |||
Line of Credit | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 157 | ||||
Borrowings, Stated Interest Rate | 8.00% | 8.00% | |||
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 65 | ||||
Maximum | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage Parent Dilution Period | 12 years | 12 years | 12 years | ||
Noncontrolling Interest, Incremental Ownership Percentage by Noncontrolling Interest Upon Achieving Performance Targets | 6.00% | 6.00% | |||
Loans | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 145 | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 97 | $ 800 | |||
Debt, maturity date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 | ||
Loans | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 863 | ||||
Debt, maturity date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 | ||
Loans | Maximum | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Borrowings, Stated Interest Rate | 8.00% | 8.00% | |||
Loans | HIBOR | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.00% | 2.00% | ||
Line of Credit | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 271 | $ 2,100 | |||
Debt, maturity date | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | ||
Line of Credit | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 200 | ¥ 1,400 | |||
Borrowings, Stated Interest Rate | 8.00% | 8.00% | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests, Outstanding | $ 90 | ¥ 600 | |||
Line of Credit | HIBOR | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% | 1.25% | ||
Equity Securities | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 188 | $ 160 | |||
Equity Securities | Cumulative Contributions By All Parties | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | 526 | ||||
Shendi Loan | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 1,100 | ¥ 7,600 | |||
Debt, maturity date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 | ||
Shendi Loan | Maximum | Shanghai Disney Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Borrowings, Stated Interest Rate | 8.00% | 8.00% | |||
Scenario, Plan | Maximum | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Incremental Ownership Percentage by Noncontrolling Interest Upon Achieving Performance Targets | 4.00% | 4.00% | |||
Scenario, Plan | Loans | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Debt, maturity date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 | ||
Scenario, Plan | Equity Securities | Hong Kong Disneyland Resort | |||||
Noncontrolling Interest [Line Items] | |||||
Variable Interest Entity, Financial or Other Support, Amount | $ 1,400 | $ 10,900 | |||
Disneyland Paris | |||||
Noncontrolling Interest [Line Items] | |||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | 100.00% | 100.00% |
Balances of Produced and Licens
Balances of Produced and Licensed Content Costs (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Produced Content [Abstract] | |
Released, less amortization | $ 5,601 |
Completed, not released | 732 |
In-process | 3,581 |
In development or pre-production | 278 |
Theatrical Film Costs | 10,192 |
Television Costs [Abstract] | |
Released, less amortization | 7,674 |
Completed, not released | 543 |
In-process | 2,094 |
In development or pre-production | 93 |
Direct-to-television Film Costs | 10,404 |
Finite-Lived License Agreements, Gross | 6,597 |
Produced and Licensed Content, Total | 27,193 |
Current portion | 2,171 |
Non-current portion | 25,022 |
Monetized Individually | |
Produced Content [Abstract] | |
Released, less amortization | 3,000 |
Completed, not released | 522 |
In-process | 3,322 |
In development or pre-production | 262 |
Theatrical Film Costs | 7,106 |
Television Costs [Abstract] | |
Released, less amortization | 2,090 |
Completed, not released | 33 |
In-process | 263 |
In development or pre-production | 6 |
Direct-to-television Film Costs | 2,392 |
Monetized as a Group | |
Produced Content [Abstract] | |
Released, less amortization | 2,601 |
Completed, not released | 210 |
In-process | 259 |
In development or pre-production | 16 |
Theatrical Film Costs | 3,086 |
Television Costs [Abstract] | |
Released, less amortization | 5,584 |
Completed, not released | 510 |
In-process | 1,831 |
In development or pre-production | 87 |
Direct-to-television Film Costs | $ 8,012 |
Amortization of Produced and Li
Amortization of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | ||
Amortization of Produced Theatrical Film Costs | $ 2,673 | ||
Amortization of Produced Television Costs | 6,664 | ||
Amortization of Produced Content Costs | 9,337 | ||
Amortization of Licensed Television and Programming Rights | 11,241 | ||
Amortization of Produced and Licensed Content Costs, Total | 20,578 | [1] | $ 17,100 |
Monetized Individually | |||
Amortization of Produced Theatrical Film Costs | 1,711 | ||
Amortization of Produced Television Costs | 2,594 | ||
Amortization of Produced Content Costs | 4,305 | ||
Monetized as a Group | |||
Amortization of Produced Theatrical Film Costs | 962 | ||
Amortization of Produced Television Costs | 4,070 | ||
Amortization of Produced Content Costs | $ 5,032 | ||
[1] | Primarily included in “Costs of services” in the Consolidated Statements of Operations. |
Expected Amortization of Produc
Expected Amortization of Produced and Licensed Content (Details) $ in Millions | Oct. 03, 2020USD ($) |
Theatrical Film Costs, Released [Abstract] | |
2021 | $ 1,191 |
2022 | 734 |
2023 | 402 |
Theatrical Film Costs, Completed Not Released [Abstract] | |
2021 | 496 |
Television Costs, Released [Abstract] | |
2021 | 2,369 |
2022 | 1,352 |
2023 | 856 |
Television Costs, Completed Not Released [Abstract] | |
2021 | 186 |
Licensed Content [Abstract] | |
2021 | 3,882 |
2022 | 1,338 |
2023 | 606 |
Monetized Individually | |
Theatrical Film Costs, Released [Abstract] | |
2021 | 731 |
2022 | 347 |
2023 | 195 |
Theatrical Film Costs, Completed Not Released [Abstract] | |
2021 | 488 |
Television Costs, Released [Abstract] | |
2021 | 893 |
2022 | 460 |
2023 | 286 |
Television Costs, Completed Not Released [Abstract] | |
2021 | 4 |
Licensed Content [Abstract] | |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Monetized as a Group | |
Theatrical Film Costs, Released [Abstract] | |
2021 | 460 |
2022 | 387 |
2023 | 207 |
Theatrical Film Costs, Completed Not Released [Abstract] | |
2021 | 8 |
Television Costs, Released [Abstract] | |
2021 | 1,476 |
2022 | 892 |
2023 | 570 |
Television Costs, Completed Not Released [Abstract] | |
2021 | 182 |
Licensed Content [Abstract] | |
2021 | 3,882 |
2022 | 1,338 |
2023 | $ 606 |
Produced and Acquired_License_3
Produced and Acquired/Licensed Content Costs and Advances - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | ||
Produced and Licensed Content Costs | $ 25,022 | |||
Amortization of Film Library Maximum Period | 20 years | |||
Amortization of Produced and Licensed Content Costs, Total | $ 20,578 | [1] | $ 17,100 | |
Accrued Participation Liabilities, Due in Next Operating Cycle | 2,300 | |||
Unamortized Acquired Film And Television Libraries | $ 3,700 | |||
Weighted Average Remaining Amortization Period | 18 years | |||
Ultimate Revenues from Theatrical Release Maximum Period | 10 years | |||
Ultimate Revenues from TV Series Delivery of First Episode Maximum Period | 10 years | |||
Ultimate Revenues from TV Series Delivery of Recent Episode Maximum Period | 5 years | |||
Accounting Standards Update 2019-02 | ||||
Produced and Licensed Content Costs | $ 3,000 | |||
[1] | Primarily included in “Costs of services” in the Consolidated Statements of Operations. |
Borrowings including the impact
Borrowings including the impact of Interest Rate and Cross-Currency Swaps (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | ||
Debt Instrument [Line Items] | |||
Borrowings | $ 58,628 | $ 46,986 | |
Less current portion | 5,711 | 8,857 | |
Total long-term borrowings | 52,917 | 38,129 | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | 15,795 | |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 2,200 | 2,500 | |
Qualifying hedges, market value adjustments for debt | 509 | 31 | |
Before International Theme Park Consolidation | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 57,325 | 45,872 | |
Borrowings, Stated Interest Rate | [2] | 3.64% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | $ 15,795 | |
Borrowings, Effective Interest Rate | [3] | 2.98% | |
Commercial paper | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 2,023 | 5,342 | |
Borrowings, Stated Interest Rate | [2] | 0.00% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1],[4] | $ 0 | |
Borrowings, Effective Interest Rate | [3] | 0.96% | |
U.S. Dollar Denominated Notes | |||
Debt Instrument [Line Items] | |||
Borrowings | [4] | $ 52,736 | 39,424 |
Borrowings, Stated Interest Rate | [2],[4] | 3.81% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1],[4] | $ 13,875 | |
Borrowings, Effective Interest Rate | [3],[4] | 3.08% | |
U.S. Dollar Denominated Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Borrowings, Stated Interest Rate | 1.65% | ||
Swap Maturity Year | Dec. 31, 2021 | ||
U.S. Dollar Denominated Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Borrowings, Stated Interest Rate | 9.50% | ||
Swap Maturity Year | Dec. 31, 2031 | ||
Foreign currency denominated debt | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 1,983 | 1,044 | |
Borrowings, Stated Interest Rate | [2] | 2.99% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | $ 1,920 | |
Borrowings, Effective Interest Rate | [3] | 2.47% | |
Swap Maturity Year | Dec. 31, 2027 | ||
Other | |||
Debt Instrument [Line Items] | |||
Custom Long-term Debt (contra) | [5] | $ 583 | 62 |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1],[5] | 0 | |
Asia International Theme Parks | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 1,303 | $ 1,114 | |
Borrowings, Stated Interest Rate | [2] | 2.11% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | $ 0 | |
Borrowings, Effective Interest Rate | [3] | 5.51% | |
Total borrowings | |||
Debt Instrument [Line Items] | |||
Borrowings, Stated Interest Rate | [2] | 3.57% | |
Borrowings, Effective Interest Rate | [3] | 3.04% | |
Long Term Debt, Current Portion | |||
Debt Instrument [Line Items] | |||
Borrowings, Stated Interest Rate | [2] | 3.24% | |
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | $ 750 | |
Borrowings, Effective Interest Rate | [3] | 2.76% | |
Non Current | |||
Debt Instrument [Line Items] | |||
Interest rate and Cross-Currency Swaps, Pay Floating Interest Rate | [1] | $ 15,045 | |
[1] | Amounts represent notional values of interest rate and cross-currency swaps outstanding as of October 3, 2020. | ||
[2] | The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at October 3, 2020; these rates are not necessarily an indication of future interest rates. | ||
[3] | The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs. | ||
[4] | Includes net debt issuance discounts, costs and purchase accounting adjustments totaling a net premium of $2.2 billion and a net premium of $2.5 billion at October 3, 2020 and September 28, 2019, respectively. | ||
[5] | Includes market value adjustments for debt with qualifying hedges, which increase borrowings by $509 million and $31 million at October 3, 2020 and September 28, 2019, respectively. |
Borrowings Bank facilities to s
Borrowings Bank facilities to support commercial paper borrowings (Details) $ in Millions | Oct. 03, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Committed Capacity | $ 17,250 |
Line of Credit Facility, Capacity Used | 0 |
Line of Credit Facility, Unused Capacity | 17,250 |
Existing Line of Credit 3 | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Committed Capacity | 5,250 |
Line of Credit Facility, Capacity Used | 0 |
Line of Credit Facility, Unused Capacity | 5,250 |
Existing Line of Credit 1 | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Committed Capacity | 5,000 |
Line of Credit Facility, Capacity Used | 0 |
Line of Credit Facility, Unused Capacity | 5,000 |
Existing Line of Credit 2 | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Committed Capacity | 4,000 |
Line of Credit Facility, Capacity Used | 0 |
Line of Credit Facility, Unused Capacity | 4,000 |
Existing Line of Credit 4 | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Committed Capacity | 3,000 |
Line of Credit Facility, Capacity Used | 0 |
Line of Credit Facility, Unused Capacity | $ 3,000 |
Borrowings Commercial Paper Act
Borrowings Commercial Paper Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | ||
Commercial Paper Rollforward [Line Items] | |||
Beginning Balance | $ 5,342 | $ 1,005 | |
Additions | 11,500 | 8,770 | |
Payments | (14,854) | (4,452) | |
Other Activity | 35 | 19 | |
Ending Balance | 2,023 | 5,342 | |
Commercial Paper with original maturities less that three months | |||
Commercial Paper Rollforward [Line Items] | |||
Beginning Balance | 1,934 | 50 | |
Additions | [1] | 0 | 1,881 |
Payments | [1] | (1,961) | 0 |
Other Activity | 27 | 3 | |
Ending Balance | 0 | 1,934 | |
Commercial paper with original maturities greater than three months | |||
Commercial Paper Rollforward [Line Items] | |||
Beginning Balance | 3,408 | 955 | |
Additions | 11,500 | 6,889 | |
Payments | (12,893) | (4,452) | |
Other Activity | 8 | 16 | |
Ending Balance | $ 2,023 | $ 3,408 | |
[1] | Borrowings and reductions of borrowings are reported net. |
Borrowings Total Borrowings Exc
Borrowings Total Borrowings Excluding Market Value Adjustments, Scheduled Maturities (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2021 | $ 5,712 |
2022 | 3,858 |
2023 | 1,242 |
2024 | 2,869 |
2025 | 3,640 |
Thereafter | 38,598 |
Total borrowings | 55,919 |
Before Asia Theme Parks Consolidation | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2021 | 5,620 |
2022 | 3,858 |
2023 | 1,242 |
2024 | 2,869 |
2025 | 3,640 |
Thereafter | 37,387 |
Total borrowings | 54,616 |
Asia Theme Parks and Adjustments | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2021 | 92 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 1,211 |
Total borrowings | $ 1,303 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) ¥ in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 30, 2020USD ($) | Mar. 21, 2019USD ($) | Sep. 28, 2019USD ($) | Oct. 03, 2020USD ($) | Oct. 03, 2020HKD ($) | Oct. 03, 2020CNY (¥) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Oct. 03, 2020CNY (¥) | Mar. 30, 2020CAD ($) | Mar. 20, 2019USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2017CAD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Interest Rate Description | These bank facilities (other than the facility expiring April 2021) support commercial paper borrowings. All of the facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, or a fixed spread in the case of the facility expiring in April 2021, 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 1.80%. | These bank facilities (other than the facility expiring April 2021) support commercial paper borrowings. All of the facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, or a fixed spread in the case of the facility expiring in April 2021, 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 1.80%. | These bank facilities (other than the facility expiring April 2021) support commercial paper borrowings. All of the facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, or a fixed spread in the case of the facility expiring in April 2021, 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 1.80%. | |||||||||||
Line of Credit Facility, Committed Capacity | $ 17,250 | |||||||||||||
Letters of Credit, amount outstanding | 988 | |||||||||||||
Borrowings | $ 46,986 | 58,628 | $ 46,986 | |||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | 511 | $ 0 | |||||||||||
Interest capitalized | 157 | 222 | 125 | |||||||||||
Interest expense, net of capitalized interest | 1,647 | 1,246 | $ 682 | |||||||||||
Letters Of Credit under Revolving Credit Facility Expiring In March 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Committed Capacity | 500 | |||||||||||||
Commercial paper | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowings | 5,342 | $ 2,023 | 5,342 | |||||||||||
Stated interest rate | [1] | 0.00% | 0.00% | |||||||||||
Borrowings, Effective Interest Rate | [2] | 0.96% | 0.96% | |||||||||||
Commercial paper | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.18% | 0.18% | 0.18% | |||||||||||
Commercial paper | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.80% | 1.80% | 1.80% | |||||||||||
U.S. Dollar Denominated Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowings | [3] | 39,424 | $ 52,736 | 39,424 | ||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | $ 51,200 | |||||||||||||
Stated interest rate | [1],[3] | 3.81% | 3.81% | |||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Amount | $ 1,500 | |||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 0.61% | 0.61% | ||||||||||||
Borrowings, Effective Interest Rate | [2],[3] | 3.08% | 3.08% | |||||||||||
U.S. Dollar Denominated Notes | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Term | 1 year | 1 year | 1 year | |||||||||||
Stated interest rate | 1.65% | 1.65% | ||||||||||||
U.S. Dollar Denominated Notes | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Term | 76 years | 76 years | 76 years | |||||||||||
Stated interest rate | 9.50% | 9.50% | ||||||||||||
Foreign Currency Denominated Canadian Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowings | $ 1,000 | $ 1,300 | $ 900 | $ 1,300 | ||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2027 | Oct. 31, 2024 | Oct. 31, 2024 | Oct. 31, 2024 | ||||||||||
Stated interest rate | 3.057% | 3.057% | 2.76% | 2.76% | ||||||||||
Loans | Hong Kong Disneyland Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 | |||||||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 97 | $ 800 | ||||||||||||
Loans | Shanghai Disney Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 | |||||||||||
Loans | HIBOR | Hong Kong Disneyland Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.00% | 2.00% | |||||||||||
Loans | Maximum | Shanghai Disney Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 8.00% | 8.00% | ||||||||||||
Shendi Loan | Shanghai Disney Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 | |||||||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 1,100 | ¥ 7,600 | ||||||||||||
Shendi Loan | Maximum | Shanghai Disney Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 8.00% | 8.00% | ||||||||||||
Line of Credit | Hong Kong Disneyland Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | |||||||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 271 | $ 2,100 | ||||||||||||
Line of Credit | Shanghai Disney Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 8.00% | 8.00% | ||||||||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 200 | ¥ 1,400 | ||||||||||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests, Outstanding | $ 90 | ¥ 600 | ||||||||||||
Line of Credit | HIBOR | Hong Kong Disneyland Resort | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% | 1.25% | |||||||||||
Existing Line of Credit 3 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | |||||||||||
Line of Credit Facility, Committed Capacity | $ 5,250 | |||||||||||||
Existing Line of Credit 4 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2025 | Mar. 31, 2025 | Mar. 31, 2025 | |||||||||||
Line of Credit Facility, Committed Capacity | $ 3,000 | |||||||||||||
Existing Line of Credit 1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | |||||||||||
Line of Credit Facility, Committed Capacity | $ 5,000 | |||||||||||||
Existing Line of Credit 2 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2023 | |||||||||||
Line of Credit Facility, Committed Capacity | $ 4,000 | |||||||||||||
Disney Cruise Line | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loan to Cost Ratio | 80.00% | 80.00% | 80.00% | |||||||||||
Disney Cruise Line | Credit Facility available beginning October 2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Committed Capacity | $ 1,000 | |||||||||||||
Stated interest rate | 3.48% | 3.48% | ||||||||||||
Disney Cruise Line | Credit Facility available beginning August 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Committed Capacity | $ 1,100 | |||||||||||||
Stated interest rate | 3.80% | 3.80% | ||||||||||||
Disney Cruise Line | Credit Facility available beginning August 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Committed Capacity | $ 1,100 | |||||||||||||
Stated interest rate | 3.74% | 3.74% | ||||||||||||
TFCF | Bridge Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Committed Capacity | $ 31,100 | |||||||||||||
Repayments of Lines of Credit | $ 16,100 | 15,000 | ||||||||||||
TFCF | Public Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 280 | 280 | 21,200 | |||||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Principle Balance | 260 | 260 | $ 17,400 | |||||||||||
Debt Assumed Exchanged for Parent Ratio | 96.00% | |||||||||||||
Debt Assumed Exchanged for Parent, Principle Balance | 2,700 | 2,700 | $ 16,800 | |||||||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Long Term Debt, Carrying Value of Notes Exchanged | $ 3,500 | 3,500 | ||||||||||||
Extinguishment of Debt, Amount | 4,300 | |||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 511 | |||||||||||||
TFCF | Yankees Entertainment and Sports Network | Long-term Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowings | $ 1,100 | |||||||||||||
[1] | The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at October 3, 2020; these rates are not necessarily an indication of future interest rates. | |||||||||||||
[2] | The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs. | |||||||||||||
[3] | Includes net debt issuance discounts, costs and purchase accounting adjustments totaling a net premium of $2.2 billion and a net premium of $2.5 billion at October 3, 2020 and September 28, 2019, respectively. |
(Loss) Income Before Income Tax
(Loss) Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Income Before Income Taxes | ||||||||||||
Domestic (including U.S. exports) | $ 4,706 | $ 12,389 | $ 12,914 | |||||||||
Foreign subsidiaries | (6,449) | [1] | 1,534 | 1,815 | ||||||||
Income (loss) from continuing operations before income taxes | $ (580) | $ (4,840) | $ 1,051 | $ 2,626 | $ 1,247 | $ 2,009 | $ 7,236 | $ 3,431 | (1,743) | 13,923 | 14,729 | |
Income from discontinued operations | (42) | 726 | 0 | |||||||||
Income (loss) before income taxes | $ (1,785) | $ 14,649 | $ 14,729 | |||||||||
[1] | Includes goodwill and intangible asset impairment in fiscal 2020. |
Income Tax Expense _ (Benefit)
Income Tax Expense / (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||||
Current | ||||||
Federal | $ 95 | $ 14 | $ 2,240 | |||
State | 148 | 112 | 362 | |||
Foreign | [1] | 731 | 824 | 642 | ||
Current Income Tax Expense (Benefit), Total | 974 | 950 | 3,244 | |||
Deferred | ||||||
Federal | 279 | 1,829 | (1,577) | [2] | ||
State | (29) | 259 | (20) | |||
Foreign | (525) | [3] | (12) | 16 | ||
Deferred Income Tax Expense (Benefit), Total | (275) | 2,076 | (1,581) | |||
Income taxes | 699 | 3,026 | 1,663 | |||
Income Tax Expense (Benefit), Discontinued Operation | (10) | 39 | 0 | |||
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations | $ 689 | $ 3,065 | $ 1,663 | |||
[1] | Includes foreign withholding taxes. | |||||
[2] | Includes the Tax Act Deferred Remeasurement in fiscal 2018. | |||||
[3] | Includes the tax effect of the intangible impairment in fiscal 2020. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | |
Deferred tax assets | |||
Net operating losses and tax credit carryforwards | [1] | $ (3,137) | $ (2,181) |
Accrued liabilities | (2,952) | (2,575) | |
Deferred Tax Assets, Lease Liabilities | (825) | (23) | |
Other | (652) | (540) | |
Total deferred tax assets | (7,566) | (5,319) | |
Deferred tax liabilities | |||
Depreciable, amortizable and other property | 8,574 | 7,710 | |
Investment in U.S. Entities | 1,956 | 2,258 | |
Deferred Tax Liabilities, Right-of-Use Assets | 740 | 0 | |
Licensing revenues | 189 | 573 | |
Investment in Foreign Entities | 266 | 146 | |
Other | 390 | 212 | |
Deferred Tax Liabilities, Gross | 12,115 | 10,899 | |
Deferred Tax Liabilities before valuation allowance | 4,549 | 5,580 | |
Valuation allowance | 2,410 | 1,912 | |
Total deferred tax liabilities | $ 6,959 | $ 7,492 | |
[1] | As of October 3, 2020 and September 28, 2019, includes approximately $1.4 billion and $1.0 billion, respectively, of International Theme Park net operating losses and approximately $0.7 billion and $0.2 billion, respectively of foreign tax credits in the U.S. The International Theme Park net operating losses are primarily in France and, to a lesser extent, Hong Kong and China. Losses in France and Hong Kong have an indefinite carryforward period and losses in China have a five-year carryforward period. Foreign tax credits in the U.S. have a ten-year carryforward period. |
Income Taxes - Deferred tax A_2
Income Taxes - Deferred tax Assets and Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | ||
Income Taxes [Line Items] | |||
Deferred Tax Assets, operating Loss Carryforwards, Foreign | [1] | $ 3,137 | $ 2,181 |
International Theme Parks | |||
Income Taxes [Line Items] | |||
Deferred Tax Assets, operating Loss Carryforwards, Foreign | 1,400 | 1,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 700 | $ 200 | |
International Theme Parks | CHINA | |||
Income Taxes [Line Items] | |||
Net Operating Loss Carryforward, Period | 5 years | ||
International Theme Parks | UNITED STATES | |||
Income Taxes [Line Items] | |||
Tax Credit Carryforward, Period | 10 years | ||
[1] | As of October 3, 2020 and September 28, 2019, includes approximately $1.4 billion and $1.0 billion, respectively, of International Theme Park net operating losses and approximately $0.7 billion and $0.2 billion, respectively of foreign tax credits in the U.S. The International Theme Park net operating losses are primarily in France and, to a lesser extent, Hong Kong and China. Losses in France and Hong Kong have an indefinite carryforward period and losses in China have a five-year carryforward period. Foreign tax credits in the U.S. have a ten-year carryforward period. |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Valuation Allowance [Line Items] | |||
Roll Forward, Deferred Tax Assets, Valuation Allowance | $ 1.9 | $ 1.4 | $ 1.7 |
Charges to Tax Expense | 0.6 | (0.1) | (0.3) |
Changes Due to TFCF Acquisition | (0.1) | 0.6 | 0 |
Roll Forward, Deferred Tax Assets, Valuation Allowance | $ 2.4 | $ 1.9 | $ 1.4 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate to Federal Rate (Detail) | Jan. 01, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 |
Income Tax Disclosure [Abstract] | ||||
Federal income tax rate | 35.00% | 21.00% | 21.00% | 24.50% |
State taxes, net of federal benefit | 3.40% | 2.20% | 1.90% | |
Foreign Derived Income | 0.00% | (1.10%) | 0.00% | |
Domestic production activity deduction | 0.00% | 0.00% | (1.40%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | (41.10%) | 0.00% | 0.00% | |
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate | (13.20%) | 0.10% | (1.10%) | |
Tax Act | 4.40% | (0.30%) | (11.50%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (14.60%) | 0.10% | 0.40% | |
Other, including tax reserves and related interest | 0.00% | (0.30%) | (1.50%) | |
Effective Income Tax Rate, Continuing Operations, Total | (40.10%) | 21.70% | 11.30% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 2,952 | $ 648 | $ 832 |
Increase due to business acquisitions | 34 | 2,728 | 0 |
Increases for current year tax positions | 26 | 84 | 64 |
Increases for prior year tax positions | 134 | 143 | 48 |
Decreases in prior year tax positions | (99) | (61) | (135) |
Settlements with taxing authorities | (307) | (590) | (161) |
Balance at the end of the year | $ 2,740 | $ 2,952 | $ 648 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Sep. 28, 2019 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | 21.00% | 24.50% | |
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit) | $ 2,200 | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 400 | ||||
Gross unrecognized tax benefits that would reduce income tax expense and effective tax rate, if recognized | $ 2,400 | $ 2,100 | $ 2,400 | 500 | |
Accrued interest and penalties related to unrecognized tax benefits | 1,000 | 1,100 | 1,000 | 200 | |
Additional accrued interest related to unrecognized tax benefits | 211 | 802 | 47 | ||
Reductions in accrued interest as a result of audit settlements and other prior-year adjustments | 101 | 96 | 100 | ||
Unrecognized tax benefits, reasonably possible reduction due to payments for or resolution of open tax matters | 334 | ||||
Adjustments to Income Tax Expense, Income Tax Benefit from Share-based Compensation | $ 64 | $ 41 | $ 52 | ||
Accounting Standards Update 2016-16 | |||||
Income Taxes [Line Items] | |||||
Impact of New Accounting Pronouncement on Retained Earnings | $ 200 | ||||
Scenario, Plan | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 13.00% | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 16.00% | ||||
Cash and Cash Equivalents | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 15.50% | ||||
Residual Earnings | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 8.00% |
Pension and Other Benefit Pro_3
Pension and Other Benefit Programs - Benefit Obligations, Assets, Funded Status and Balance Sheet Impacts Associated with Pension and Postretirement Medical Benefit Plans based upon Actuarial Valuations (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Fair value of plans' assets | ||||
Contributions | $ 673 | |||
Amounts recognized in the balance sheet | ||||
Non-current liabilities | (6,451) | $ (4,783) | ||
Net balance sheet liability | (6,495) | |||
Pension Plans | ||||
Projected benefit obligations | ||||
Beginning obligations | (18,531) | (14,500) | ||
Acquisition of TFCF | 0 | (759) | ||
Service cost | (410) | (345) | $ (350) | |
Interest cost | (527) | (592) | (489) | |
Actuarial (loss) gain | [1] | (1,958) | (2,923) | |
Plan amendments and other | 1 | 32 | ||
Benefits Paid | 662 | 534 | ||
Curtailments | 3 | 22 | ||
Ending obligations | (20,760) | (18,531) | (14,500) | |
Fair value of plans' assets | ||||
Beginning fair value | 14,878 | 12,728 | ||
Acquisition of TFCF | 0 | 587 | ||
Actual return on plan assets | 770 | 690 | ||
Contributions | 664 | 1,461 | ||
Benefits paid | (662) | (534) | ||
Expenses and other | 52 | 54 | ||
Ending fair value | 15,598 | 14,878 | 12,728 | |
Underfunded status of the plans | (5,162) | (3,653) | ||
Amounts recognized in the balance sheet | ||||
Non-current assets | 20 | 5 | ||
Current liabilities | (59) | (54) | ||
Non-current liabilities | (5,123) | (3,604) | ||
Net balance sheet liability | (5,162) | (3,653) | ||
Postretirement Medical Plans | ||||
Projected benefit obligations | ||||
Beginning obligations | (1,946) | (1,609) | ||
Acquisition of TFCF | 0 | (65) | ||
Service cost | (10) | (8) | (10) | |
Interest cost | (56) | (67) | (60) | |
Actuarial (loss) gain | [1] | (127) | (234) | |
Plan amendments and other | (12) | (11) | ||
Benefits Paid | 47 | 48 | ||
Curtailments | 0 | 0 | ||
Ending obligations | (2,104) | (1,946) | (1,609) | |
Fair value of plans' assets | ||||
Beginning fair value | 762 | 731 | ||
Acquisition of TFCF | 0 | 0 | ||
Actual return on plan assets | 38 | 33 | ||
Contributions | 9 | 37 | ||
Benefits paid | (47) | (48) | ||
Expenses and other | 9 | 9 | ||
Ending fair value | 771 | 762 | $ 731 | |
Underfunded status of the plans | (1,333) | (1,184) | ||
Amounts recognized in the balance sheet | ||||
Non-current assets | 0 | 0 | ||
Current liabilities | (5) | (5) | ||
Non-current liabilities | (1,328) | (1,179) | ||
Net balance sheet liability | $ (1,333) | $ (1,184) | ||
[1] | The actuarial loss for both fiscal 2020 and 2019 was primarily due to a reduction in the discount rate from the rate that was used in the preceding fiscal year. |
Pension and Other Benefit Pro_4
Pension and Other Benefit Programs - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 576 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 410 | $ 345 | $ 350 |
Interest cost | 527 | 592 | 489 |
Expected return on plan assets | (1,084) | (978) | (901) |
Amortization of prior-year service costs | 13 | 13 | 13 |
Recognized net actuarial loss | 544 | 260 | 348 |
Total other costs (benefits) | 0 | (113) | (51) |
Net periodic benefit cost | 410 | 232 | 299 |
Postretirement Medical Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 10 | 8 | 10 |
Interest cost | 56 | 67 | 60 |
Expected return on plan assets | (57) | (56) | (53) |
Amortization of prior-year service costs | 0 | 0 | 0 |
Recognized net actuarial loss | 14 | 0 | 14 |
Total other costs (benefits) | 13 | 11 | 21 |
Net periodic benefit cost | $ 23 | $ 19 | $ 31 |
Pension and Other Benefit Pro_5
Pension and Other Benefit Programs - Key Assumptions (Detail) | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Pension Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate used to determine the benefit obligation | 2.82% | 3.22% | 4.31% |
Discount rate used to determine the interest cost component of net periodic benefit cost | 2.94% | 4.09% | 3.46% |
Rate of return on plan assets | 7.00% | 7.25% | 7.50% |
Weighted average rate of compensation increase to determine the benefit obligation | 3.20% | 3.20% | 3.20% |
Postretirement Medical Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate used to determine the benefit obligation | 2.80% | 3.22% | 4.31% |
Discount rate used to determine the interest cost component of net periodic benefit cost | 2.95% | 4.10% | 3.49% |
Rate of return on plan assets | 7.00% | 7.25% | 7.50% |
Year 1 increase in cost of benefits | 7.00% | 7.00% | 7.00% |
Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) | 4.25% | 4.25% | 4.25% |
Year that the rate reaches the ultimate trend rate | 2034 | 2033 | 2032 |
Pension and Other Benefit Pro_6
Pension and Other Benefit Programs - Accumulated Other Comprehensive Loss, Before Tax, not yet Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | $ 27 | |
Net actuarial loss | 9,344 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 9,371 | |
Prepaid Accrued Pension Costs | (2,876) | |
Net balance sheet liability | 6,495 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 27 | |
Net actuarial loss | 8,915 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 8,942 | |
Prepaid Accrued Pension Costs | (3,780) | |
Net balance sheet liability | 5,162 | $ 3,653 |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 0 | |
Net actuarial loss | 429 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 429 | |
Prepaid Accrued Pension Costs | 904 | |
Net balance sheet liability | $ 1,333 | $ 1,184 |
Pension and Other Benefit Pro_7
Pension and Other Benefit Programs - Plan Assets Investment Policy Ranges for Major Asset Classes (Detail) | Oct. 03, 2020 |
Minimum | Equity Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% |
Minimum | Fixed income Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% |
Minimum | Alternative Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% |
Minimum | Cash & Money Market Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% |
Maximum | Equity Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% |
Maximum | Fixed income Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% |
Maximum | Alternative Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% |
Maximum | Cash & Money Market Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% |
Pension and Other Benefit Pro_8
Pension and Other Benefit Programs - Defined Benefit Plan Assets Measured at Fair Value (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | |
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 100.00% | 100.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 16,369 | $ 15,640 | |
Cash | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 1.00% | 1.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 207 | ||
Equity Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | [1] | 20.00% | 22.00% |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | [1] | $ 3,308 | |
Mutual Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 7.00% | 7.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 1,154 | ||
US Government Debt Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 16.00% | 16.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 2,680 | ||
Corporate Bond Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 6.00% | 4.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 935 | ||
Other Mortgage and Asset Backed Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 1.00% | 1.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 106 | ||
Derivatives and Other, Net | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 0.00% | 0.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 5 | ||
Common Collective Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 24.00% | 24.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 3,993 | $ 3,691 | |
Alternative Investments Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 21.00% | 17.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 3,375 | $ 2,725 | |
Money Market Funds and Other | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of plan assets mix | 4.00% | 8.00% | |
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 606 | $ 1,293 | |
Total Investments at Fair Value | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 8,395 | ||
Level 1 | Cash | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 207 | 197 | |
Level 1 | Equity Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | [1] | 3,308 | 3,468 |
Level 1 | Mutual Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 1,154 | 1,140 | |
Level 1 | US Government Debt Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 2,326 | 2,042 | |
Level 1 | Corporate Bond Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 0 | 0 | |
Level 1 | Other Mortgage and Asset Backed Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 0 | 0 | |
Level 1 | Derivatives and Other, Net | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | (2) | (6) | |
Level 1 | Total Investments at Fair Value | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 6,993 | 6,841 | |
Level 2 | Cash | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 0 | 0 | |
Level 2 | Equity Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | [1] | 0 | 0 |
Level 2 | Mutual Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 0 | 0 | |
Level 2 | US Government Debt Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 354 | 404 | |
Level 2 | Corporate Bond Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 935 | 580 | |
Level 2 | Other Mortgage and Asset Backed Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 106 | 127 | |
Level 2 | Derivatives and Other, Net | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 7 | (21) | |
Level 2 | Total Investments at Fair Value | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 1,402 | 1,090 | |
Level 1 and 2 | Cash | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 197 | ||
Level 1 and 2 | Equity Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | [1] | 3,468 | |
Level 1 and 2 | Mutual Funds | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 1,140 | ||
Level 1 and 2 | US Government Debt Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 2,446 | ||
Level 1 and 2 | Corporate Bond Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 580 | ||
Level 1 and 2 | Other Mortgage and Asset Backed Securities | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | 127 | ||
Level 1 and 2 | Derivatives and Other, Net | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | (27) | ||
Level 1 and 2 | Total Investments at Fair Value | |||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets in the Fair Value Hierarchy | $ 7,931 | ||
[1] | Includes 2.9 million shares of Company common stock valued at $355 million (2% of total plan assets) and 2.9 million shares valued at $373 million (2% of total plan assets) at October 3, 2020 and September 28, 2019, respectively. |
Pension and Other Benefit Pro_9
Pension and Other Benefit Programs - Defined Benefit Plan Assets Measured at Fair Value (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ||
Asset allocation ranges | 100.00% | 100.00% |
United States Mid Large Cap | Shares Held In The Walt Disney Company | ||
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ||
Large cap domestic equities, shares of company common stock | 2.9 | 2.9 |
Large cap domestic equities, value of company common stock | $ 355 | $ 373 |
Asset allocation ranges | 2.00% | 2.00% |
Pension and Other Benefit Pr_10
Pension and Other Benefit Programs - Estimated Future Benefit Payments (Detail) $ in Millions | Oct. 03, 2020USD ($) | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2021 | $ 678 | |
2022 | 661 | |
2023 | 691 | |
2024 | 729 | |
2025 | 771 | |
2026 - 2030 | 4,433 | |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2021 | 59 | [1] |
2022 | 63 | [1] |
2023 | 67 | [1] |
2024 | 72 | [1] |
2025 | 76 | [1] |
2026 - 2030 | $ 446 | [1] |
[1] | Estimated future benefit payments are net of expected Medicare subsidy receipts of $85 million. |
Pension and Other Benefit Pr_11
Pension and Other Benefit Programs - Estimated Future Benefit Payments (Parenthetical) (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Postretirement Medical Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Medicare subsidy receipts | $ 85 |
Pension and Other Benefit Pr_12
Pension and Other Benefit Programs - Long-Term Rate of Return on Plan Assets (Detail) | 12 Months Ended |
Oct. 03, 2020 | |
Minimum | Equity Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 6.00% |
Minimum | Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 2.00% |
Minimum | Alternative Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 6.00% |
Maximum | Equity Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 10.00% |
Maximum | Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 4.00% |
Maximum | Alternative Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Long term rate of return on assets | 11.00% |
Pension and Other Benefit Pr_13
Pension and Other Benefit Programs - One Percentage Point (ppt) Change on Projected Benefit Obligations (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Retirement Benefits [Abstract] | |
Impact of 1 ppt Discount Rate decrease on Benefit Expense | $ 351 |
Impact of 1 ppt Discount Rate increase on Benefit Expense | (303) |
Impact of 1 ppt Discount Rate decrease on Projected Benefit Obligations | 3,988 |
Impact of 1 ppt Discount Rate increase on Projected Benefit Obligations | (3,380) |
Impact of 1 ppt Expected Long-Term Rate of Return on Assets Decrease on Benefit Expense | 164 |
Impact of 1 ppt Expected Long-Term Rate of Return on Assets Increase on Benefit Expense | $ (164) |
Pension and Other Benefit Pr_14
Pension and Other Benefit Programs - Contribution into Multiemployer Pension Plans and Health and Welfare Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Employer Contribution, Cost | $ 438 | $ 407 | $ 316 |
Pension Plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Employer Contribution, Cost | 221 | 189 | 144 |
Postretirement Medical Plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Employer Contribution, Cost | $ 217 | $ 218 | $ 172 |
Pension and Other Benefit Pr_15
Pension and Other Benefit Programs - Additional Information (Detail) - USD ($) $ in Millions | Mar. 20, 2019 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||
New vesting service year requirement effective January 1, 2012 | 3 years | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ (6,495) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Increase (Decrease) for Plan Amendment | 143 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 576 | |||
Pension plans with accumulated benefit obligations in excess of plan assets, projected benefit obligation | 19,500 | $ 17,500 | ||
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 18,100 | 16,100 | ||
Pension plans with accumulated benefit obligations in excess of plan assets, aggregate fair value of plan assets | 14,400 | 13,900 | ||
Total accumulated pension benefit obligations | $ 19,100 | $ 17,000 | ||
Total accumulated pension benefit obligations, vested percentage | 98.00% | 98.00% | ||
Additional Capital Contributions Commitment | $ 1,000 | |||
Pension and postretirement medical plans, employer contributions | $ 673 | |||
Defined contribution plan, contribution rate | 50.00% | |||
Savings and investment plans, employees contribution rate | 50.00% | |||
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans, employer contributions | $ 217 | $ 208 | $ 162 | |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans, employer contributions | 25 | 25 | 21 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 500 | |||
Defined contribution plan, contribution rate | 3.00% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 600 | |||
Defined contribution plan, contribution rate | 9.00% | |||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ (5,162) | (3,653) | ||
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 759 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 587 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 410 | 232 | 299 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 19,800 | 18,500 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 14,600 | 14,800 | ||
Pension and postretirement medical plans, employer contributions | 664 | 1,461 | ||
Postretirement Medical Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (1,333) | (1,184) | ||
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 65 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 23 | 19 | $ 31 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 2,100 | 1,900 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 800 | 800 | ||
Pension and postretirement medical plans, employer contributions | $ 9 | $ 37 | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 7.00% | 7.00% | 7.00% | |
Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) | 4.25% | 4.25% | 4.25% | |
TFCF | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ 237 | |||
Defined Benefit Plan, Benefit Obligation, Business Combination | 824 | |||
Defined Benefit Plan, Plan Assets, Business Combination | $ 587 |
Equity Dividends Paid (Details)
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | ||||
Mar. 28, 2020 | Sep. 28, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Mar. 31, 2018 | |
Dividends, Common Stock [Abstract] | |||||
Dividends paid, per share | $ 0.88 | $ 0.88 | $ 0.88 | $ 0.84 | $ 0.84 |
Dividends paid | $ 1.6 | $ 1.6 | $ 1.3 | $ 1.2 | $ 1.3 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (8,459) | $ (4,849) | $ (5,522) | |
Unrealized gains (losses) arising during the period | (2,527) | (3,680) | 258 | |
Reclassifications of realized net (gains) losses to net income | 284 | 93 | 415 | |
AOCI reclassifications to retained earnings, before tax | (23) | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (10,702) | (8,459) | (4,849) | |
Accumulated Net Gain (Loss) from Market Value Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | [1] | 129 | 201 | (93) |
Unrealized gains (losses) arising during the period | [1] | (57) | 136 | 259 |
Reclassifications of realized net (gains) losses to net income | [1] | (263) | (185) | 35 |
AOCI reclassifications to retained earnings, before tax | [1] | (23) | ||
AOCI before Tax, Attributable to Parent, Ending Balance | [1] | (191) | 129 | 201 |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (7,502) | (4,323) | (4,906) | |
Unrealized gains (losses) arising during the period | (2,468) | (3,457) | 203 | |
Reclassifications of realized net (gains) losses to net income | 547 | 278 | 380 | |
AOCI reclassifications to retained earnings, before tax | 0 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | (9,423) | (7,502) | (4,323) | |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI before Tax, Attributable to Parent, Beginning Balance | (1,086) | (727) | (523) | |
Unrealized gains (losses) arising during the period | (2) | (359) | (204) | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, before tax | 0 | |||
AOCI before Tax, Attributable to Parent, Ending Balance | $ (1,088) | $ (1,086) | $ (727) | |
[1] | Primarily reflects market value adjustments for cash flow hedges. |
Equity Changes in Accumulated_2
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 1,842 | $ 1,752 | $ 1,994 | |
Unrealized gains (losses) arising during the period | 604 | 794 | (128) | |
Reclassifications of realized net (gains) losses to net income | (66) | (21) | (114) | |
AOCI reclassifications to retained earnings, tax | [1] | (683) | ||
AOCI Tax, Attributable to Parent, Ending Balance | 2,380 | 1,842 | 1,752 | |
Accumulated Net Gain (Loss) from Market Value Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | [2] | (29) | (41) | 39 |
Unrealized gains (losses) arising during the period | [2] | 8 | (31) | (68) |
Reclassifications of realized net (gains) losses to net income | [2] | 61 | 43 | (12) |
AOCI reclassifications to retained earnings, tax | [1],[2] | 0 | ||
AOCI Tax, Attributable to Parent, Ending Balance | [2] | 40 | (29) | (41) |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | 1,756 | 1,690 | 1,839 | |
Unrealized gains (losses) arising during the period | 572 | 797 | (47) | |
Reclassifications of realized net (gains) losses to net income | (127) | (64) | (102) | |
AOCI reclassifications to retained earnings, tax | [1] | (667) | ||
AOCI Tax, Attributable to Parent, Ending Balance | 2,201 | 1,756 | 1,690 | |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI Tax, Attributable to Parent, Beginning Balance | 115 | 103 | 116 | |
Unrealized gains (losses) arising during the period | 24 | 28 | (13) | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, tax | [1] | (16) | ||
AOCI Tax, Attributable to Parent, Ending Balance | $ 139 | $ 115 | $ 103 | |
[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 ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. | |||
[2] | Primarily reflects market value adjustments for cash flow hedges. |
Equity Changes in Accumulated_3
Equity Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (6,617) | $ (3,097) | $ (3,528) | |
Unrealized gains (losses) arising during the period | (1,923) | (2,886) | 130 | |
Reclassifications of realized net (gains) losses to net income | 218 | 72 | 301 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (706) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (8,322) | (6,617) | (3,097) | |
Accumulated Net Gain (Loss) from Market Value Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [2] | 100 | 160 | (54) |
Unrealized gains (losses) arising during the period | [2] | (49) | 105 | 191 |
Reclassifications of realized net (gains) losses to net income | [2] | (202) | (142) | 23 |
AOCI reclassifications to retained earnings, net of tax | [1],[2] | (23) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [2] | (151) | 100 | 160 |
Unrecognized Pension and Postretirement Medical Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,746) | (2,633) | (3,067) | |
Unrealized gains (losses) arising during the period | (1,896) | (2,660) | 156 | |
Reclassifications of realized net (gains) losses to net income | 420 | 214 | 278 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (667) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (7,222) | (5,746) | (2,633) | |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (971) | (624) | (407) | |
Unrealized gains (losses) arising during the period | 22 | (331) | (217) | |
Reclassifications of realized net (gains) losses to net income | 0 | 0 | 0 | |
AOCI reclassifications to retained earnings, net of tax | [1] | (16) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (949) | $ (971) | $ (624) | |
[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 ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. | |||
[2] | Primarily reflects market value adjustments for cash flow hedges. |
Equity Details about AOCI Compo
Equity Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||
Revenues | $ 14,707 | [1] | $ 11,779 | [1] | $ 18,025 | [1] | $ 20,877 | [1] | $ 19,118 | [1] | $ 20,262 | [1] | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 |
Net periodic benefit cost other than service cost included in cost and expenses | (576) | ||||||||||||||||
Income taxes | (699) | (3,026) | (1,663) | ||||||||||||||
Net income attributable to The Walt Disney Company (Disney) | $ (710) | $ (4,721) | $ 460 | $ 2,107 | $ 1,054 | $ 1,760 | $ 5,452 | $ 2,788 | (2,864) | 11,054 | 12,598 | ||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||
Net income attributable to The Walt Disney Company (Disney) | (218) | (72) | (301) | ||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Gain/(loss) in net income from Cash flow hedges | |||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||
Revenues | 263 | 185 | (35) | ||||||||||||||
Income taxes | (61) | (43) | 12 | ||||||||||||||
Net income attributable to The Walt Disney Company (Disney) | 202 | 142 | (23) | ||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Gain/(loss) in net income from Pension and postretirement medical expense | |||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||
Net periodic benefit cost other than service cost included in cost and expenses | 0 | 0 | (380) | ||||||||||||||
Net periodic benefit cost other than service cost included in interest expense, net | (547) | (278) | 0 | ||||||||||||||
Income taxes | 127 | 64 | 102 | ||||||||||||||
Net income attributable to The Walt Disney Company (Disney) | $ (420) | $ (214) | $ (278) | ||||||||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 20, 2019 | Sep. 30, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Oct. 03, 2020 | |
Class of Stock [Line Items] | ||||||
Treasury stock, shares | 19,000 | 19,000 | ||||
Common stock, authorized | 4,600,000 | 4,600,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Common stock repurchases (in shares) | 35,000 | |||||
Common stock repurchases | $ 3,600 | |||||
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) | ||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Retained Earnings | ||||||
Class of Stock [Line Items] | ||||||
Treasury Stock, Retired, Cost Method, Amount | $ (49,118) | |||||
Accounting Standards Update 2018-02 | ||||||
Class of Stock [Line Items] | ||||||
AOCI reclassifications to retained earnings, tax | $ 691 | |||||
Accounting Standards Update 2016-01 | ||||||
Class of Stock [Line Items] | ||||||
AOCI reclassifications to retained earnings, before tax | 24 | |||||
AOCI reclassifications to retained earnings, net of tax | $ 15 | |||||
Legacy Disney | ||||||
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Retired | 1,400,000 | |||||
Legacy Disney | Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Authorized | 40 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||||
Legacy Disney | Additional Paid-in Capital | ||||||
Class of Stock [Line Items] | ||||||
Treasury Stock, Retired, Cost Method, Amount | $ 17,600 | |||||
Legacy Disney | Retained Earnings | ||||||
Class of Stock [Line Items] | ||||||
Treasury Stock, Retired, Cost Method, Amount | $ 49,100 | |||||
TFCF | ||||||
Class of Stock [Line Items] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 307,000 | |||||
[1] | At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings. In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. |
Equity-Based Compensation - Wei
Equity-Based Compensation - Weighted Average Assumptions used in Option-Valuation Model (Detail) - OptionPlan | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.80% | 2.80% | 2.40% |
Expected volatility | 23.00% | 23.00% | 23.00% |
Dividend yield | 1.36% | 1.61% | 1.57% |
Termination rate | 5.80% | 4.80% | 4.80% |
Exercise multiple | 1.83 | 1.75 | 1.75 |
Equity-Based Compensation - Imp
Equity-Based Compensation - Impact of Stock Options/Rights and Restricted Stock Units on Income and Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Share-based Payment Arrangement [Abstract] | ||||
Stock option compensation expense | $ 101 | $ 84 | $ 87 | |
RSU compensation expense | [1] | 424 | 627 | 306 |
Total equity-based compensation expense | [2] | 525 | 711 | 393 |
Tax impact | (118) | (161) | (99) | |
Reduction in net income | 407 | 550 | 294 | |
Equity-based compensation expense capitalized during the period | $ 87 | $ 81 | $ 70 | |
[1] | Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). | |||
[2] | Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation - Com
Equity-Based Compensation - Compensation Expense Related to Restricted Stock Units of TFCF (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU compensation expense | [1] | $ 424 | $ 627 | $ 306 |
TFCF | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU compensation expense | $ 164 | |||
[1] | Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). |
Equity-Based Compensation - Inf
Equity-Based Compensation - Information about Stock Option Transactions (Detail) shares in Millions | 12 Months Ended |
Oct. 03, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of year | shares | 23 |
Awards forfeited | shares | (1) |
Awards granted | shares | 4 |
Awards exercised | shares | (3) |
Outstanding at end of year | shares | 23 |
Exercisable at end of year | shares | 13 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 90.05 |
Awards forfeited | $ / shares | 127.94 |
Awards granted | $ / shares | 147.04 |
Awards exercised | $ / shares | 80.17 |
Outstanding at end of year | $ / shares | 101.41 |
Exercisable at end of year | $ / shares | $ 84.50 |
Equity-Based Compensation - I_2
Equity-Based Compensation - Information about Stock Options Vested and Expected to Vest (Detail) shares in Millions | 12 Months Ended | |
Oct. 03, 2020$ / sharesshares | ||
Vested | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 13 | |
Vested | $ 0 — $ 50 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 40.54 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 1 year 2 months 12 days | |
Range of Exercise Prices, Lower Range | $ 0 | |
Range of Exercise Prices, Upper Range | $ 50 | |
Vested | $ 51 — $ 80 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 61.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 8 months 12 days | |
Range of Exercise Prices, Lower Range | $ 51 | |
Range of Exercise Prices, Upper Range | $ 80 | |
Vested | $ 81 — $ 110 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 98.65 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years 3 months 18 days | |
Range of Exercise Prices, Lower Range | $ 81 | |
Range of Exercise Prices, Upper Range | $ 110 | |
Vested | $ 111 — $ 140 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 112.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months | |
Range of Exercise Prices, Lower Range | $ 111 | |
Range of Exercise Prices, Upper Range | $ 140 | |
Expected to Vest | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 9 | [1] |
Expected to Vest | $ 100 — $ 125 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 5 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 110.06 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 7 months 6 days | |
Range of Exercise Prices, Lower Range | $ 100 | |
Range of Exercise Prices, Upper Range | $ 125 | |
Expected to Vest | $ 126 — $ 150 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 4 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 147.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 9 years 2 months 12 days | |
Range of Exercise Prices, Lower Range | $ 126 | |
Range of Exercise Prices, Upper Range | $ 150 | |
[1] | Number of options expected to vest is total unvested options less estimated forfeitures. |
Equity-Based Compensation - I_3
Equity-Based Compensation - Information about Restricted Stock Unit Transactions (Detail) shares in Millions | 12 Months Ended | |
Oct. 03, 2020$ / sharesshares | ||
Units | ||
Unvested at beginning of year | shares | 12 | |
Granted | shares | 6 | [1] |
Vested | shares | (5) | |
Forfeited | shares | (1) | |
Unvested at end of year | shares | 12 | [2],[3] |
Weighted Average Grant-Date Fair Value | ||
Unvested at beginning of year | $ / shares | $ 110.84 | |
Granted | $ / shares | 142.77 | [1] |
Vested | $ / shares | 108.13 | |
Forfeited | $ / shares | 117.25 | |
Unvested at end of year | $ / shares | $ 128.56 | [2],[3] |
[1] | Includes 0.2 million Performance RSUs. | |
[2] | Excludes Performance RSUs issued in September 2018 and December 2019, for which vesting is subject to service conditions and the number of units vesting is subject to the discretion of the CEO. At October 3, 2020, the maximum number of these Performance RSUs that could be issued upon vesting is 0.1 million. | |
[3] | Includes 1.4 million Performance RSUs. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | Mar. 20, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 10 years | |||||
Restricted stock units granted, number of shares | [1] | 6 | ||||
Restricted stock units granted, unvested number of shares | 12 | [2],[3] | 12 | |||
Weighted average grant-date fair values of options granted | $ 36.19 | $ 28.76 | $ 28.01 | |||
Stock options exercised and RSUs vested, total intrinsic value | $ 989 | $ 646 | $ 585 | |||
Aggregate intrinsic values of stock options vested | 514 | |||||
Proceeds from exercise of stock options | 305 | 318 | 210 | |||
Tax benefits realized from tax deductions associated with option exercises and RSU activity | 220 | $ 145 | $ 160 | |||
Expected to Vest | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic values of stock options vested | $ 63 | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum extension period of stock options after grant date | 15 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratable vesting term of stock options from grant date | 4 years | |||||
Number of shares authorized to be awarded as grants | 160 | |||||
Unrecognized compensation costs | $ 140 | |||||
Weighted-average period to recognize compensation costs | 1 year 7 months 6 days | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratable vesting term of stock options from grant date | 4 years | |||||
Number of shares authorized to be awarded as grants | 77 | |||||
Unrecognized compensation costs | $ 850 | |||||
Weighted-average period to recognize compensation costs | 1 year 10 months 24 days | |||||
Restricted Stock Units | TFCF | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs | $ 219 | |||||
Performance Based Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratable vesting term of stock options from grant date | 3 years | |||||
Restricted stock units granted, number of shares | 0.2 | |||||
Restricted stock units granted, unvested number of shares | 1.4 | |||||
Performance Shares, Vesting Subject to CEO Discretion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted, number of shares | 0.1 | |||||
[1] | Includes 0.2 million Performance RSUs. | |||||
[2] | Excludes Performance RSUs issued in September 2018 and December 2019, for which vesting is subject to service conditions and the number of units vesting is subject to the discretion of the CEO. At October 3, 2020, the maximum number of these Performance RSUs that could be issued upon vesting is 0.1 million. | |||||
[3] | Includes 1.4 million Performance RSUs. |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Accounts - Current Receivables (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Current receivables | ||
Accounts receivable | $ 11,299 | $ 12,930 |
Other | 1,835 | 2,894 |
Allowance for doubtful accounts | (426) | (343) |
Current receivables, Net | $ 12,708 | $ 15,481 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Accounts - Parks, Resorts and Other Property, at Cost (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Parks, resorts and other property, at cost | ||
Attractions, buildings and improvements | $ 31,279 | $ 29,509 |
Furniture, fixtures and equipment | 22,976 | 21,265 |
Land improvements | 6,828 | 6,649 |
Leasehold improvements | 1,028 | 1,166 |
Parks, resorts and other property, before projects in progress and land, Total | 62,111 | 58,589 |
Accumulated depreciation | (35,517) | (32,415) |
Projects in progress | 4,449 | 4,264 |
Land | 1,035 | 1,165 |
Parks, resorts and other property | $ 32,078 | $ 31,603 |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Accounts - Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Intangible assets | ||
Character/Franchise intangibles, Copyrights and Trademarks | $ 10,572 | $ 10,577 |
Distribution Agreements | 8,098 | 9,900 |
Other amortizable intangible assets | 4,309 | 4,291 |
Accumulated amortization | (5,598) | (3,393) |
Net amortizable intangible assets | 17,381 | 21,375 |
Other indefinite lived intangible assets | 1,792 | 1,840 |
Intangible assets | $ 19,173 | $ 23,215 |
Detail of Certain Balance She_6
Detail of Certain Balance Sheet Accounts - Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Accounts payable and other accrued liabilities | ||
Accounts payable | $ 12,663 | $ 13,778 |
Payroll and employee benefits | 2,925 | 3,010 |
Other | 1,213 | 974 |
Accounts payable and other accrued liabilities | $ 16,801 | $ 17,762 |
Detail of Certain Balance She_7
Detail of Certain Balance Sheet Accounts - Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Other long-term liabilities | ||
Pension and postretirement medical plan liabilities | $ 6,451 | $ 4,783 |
Other | 10,753 | 8,977 |
Other long-term liabilities | $ 17,204 | $ 13,760 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Commitments for Broadcast Programming Rights, Creative Talent and Other Commitments (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Commitments and Contingencies [Line Items] | |
2021 | $ 15,094 |
2022 | 10,923 |
2023 | 7,018 |
2024 | 6,235 |
2025 | 6,118 |
Thereafter | 13,380 |
Commitments | 58,768 |
Broadcast programming | |
Commitments and Contingencies [Line Items] | |
2021 | 12,043 |
2022 | 8,632 |
2023 | 6,030 |
2024 | 4,972 |
2025 | 5,058 |
Thereafter | 9,643 |
Commitments | 46,378 |
Other Commitments | |
Commitments and Contingencies [Line Items] | |
2021 | 3,051 |
2022 | 2,291 |
2023 | 988 |
2024 | 1,263 |
2025 | 1,060 |
Thereafter | 3,737 |
Commitments | $ 12,390 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Oct. 03, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Commitments | $ 58,768 |
Guarantee Obligations | |
Commitments and Contingencies Disclosure [Line Items] | |
Guaranteed obligations | 232 |
Broadcast programming | |
Commitments and Contingencies Disclosure [Line Items] | |
Commitments | 46,378 |
Available Programming | |
Commitments and Contingencies Disclosure [Line Items] | |
Commitments | 3,100 |
Sports Programming | |
Commitments and Contingencies Disclosure [Line Items] | |
Commitments | $ 40,600 |
Summary of Right-of-Use Assets
Summary of Right-of-Use Assets and Lease Liabilities on the Balance Sheet (Details) $ in Millions | Oct. 03, 2020USD ($) | |
Operating and Finance Lease Liability | $ 3,695 | |
Other Assets | ||
Operating Lease, Right-of-Use Asset | 3,687 | [1] |
Finance Lease, Right-of-Use Asset, | 361 | [1] |
Operating and Financing Lease Total Right Of Use Asset | 4,048 | [1] |
Accounts Payable and Accrued Liabilities | ||
Operating Lease, Liability, Current | 747 | [2] |
Finance Lease, Liability, Current | 37 | [2] |
Operating and Finance Lease Liability Current | 784 | [2] |
Other Long-term Liabilities | ||
Operating Lease, Liability, Noncurrent | 2,640 | [3] |
Finance Lease, Liability, Noncurrent | 271 | [3] |
Operating and Finance Lease Liability Noncurrent | $ 2,911 | [3] |
[1] | Included in “Other assets” in the Consolidated Balance Sheet. 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 Consolidated Balance Sheet. | |
[3] | Included in “Other long-term liabilities” in the Consolidated Balance Sheet. |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities Table Footnote (Details) $ in Millions | Oct. 03, 2020USD ($) |
Other Assets | |
Prepaid Rent | $ 600 |
Components of Lease Costs (Deta
Components of Lease Costs (Details) $ in Millions | 12 Months Ended | |
Oct. 03, 2020USD ($) | ||
Amortization of Right-of-Use Assets | $ 37 | |
Interest on Lease Liabilities | 16 | |
Operating Lease Cost | 899 | |
Variable Fees and Other | 491 | [1] |
Lease, Cost | $ 1,443 | |
[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) $ in Millions | 12 Months Ended |
Oct. 03, 2020USD ($) | |
Operating Cash Flows for Operating Leases | $ 879 |
Operating Cash Flows for Finance Leases | 16 |
Finance Cash Flows for Finance Leases | 37 |
Cash Outflow from Operating and Financing Leases | $ 932 |
Lease Liability Maturities (Det
Lease Liability Maturities (Details) $ in Millions | Oct. 03, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 840 |
2022 | 635 |
2023 | 494 |
2024 | 367 |
2025 | 310 |
Thereafter | 1,565 |
Total undiscounted future lease payments | 4,211 |
Operating Lease Imputed Interest | (824) |
Operating Lease, Liability | 3,387 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2021 | 56 |
2022 | 56 |
2023 | 51 |
2024 | 40 |
2025 | 35 |
Thereafter | 482 |
Total undiscounted future lease payments | 720 |
Finance Lease Imputed Interest | (412) |
Finance Lease, Liability | $ 308 |
Future Minimum Lease Payments P
Future Minimum Lease Payments Presented Under Historical Accounting (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 | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Oct. 03, 2020 | Sep. 29, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating and Finance Lease Liability | $ 3,695 | |||
Operating Lease, Weighted Average Remaining Lease Term | 10 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 | 6.30% | |||
Lessee, Operating Lease, Lease Not Yet Commenced | $ 277 | |||
Rental expense for operating leases | $ 1,100 | $ 900 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating and Finance Lease Liability | $ 3,700 | |||
Accrued Rent | 300 | |||
Sale Leaseback Transaction, Deferred Gain, Gross | 300 | |||
Capital Leased Assets, Gross | $ 200 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 1,057 | $ 13 |
Total | 1,503 | 233 |
Fair value of borrowings | 64,818 | 49,958 |
Interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 515 | 89 |
Derivative Liability | (4) | (93) |
Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 505 | 771 |
Derivative Liability | (549) | (544) |
Other Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 1 |
Derivative Liability | (22) | (4) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 13 |
Total | 0 | 13 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 1 | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 1 | Other Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,057 | 0 |
Total | 1,503 | 220 |
Fair value of borrowings | 63,370 | 48,709 |
Level 2 | Interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 515 | 89 |
Derivative Liability | (4) | (93) |
Level 2 | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 505 | 771 |
Derivative Liability | (549) | (544) |
Level 2 | Other Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | 1 |
Derivative Liability | (22) | (4) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 1,448 | 1,249 |
Level 3 | Interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 3 | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Level 3 | Other Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Oct. 03, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Percentage of Cash and Cash Equivalent Balances With Financial Institutions | 26.00% |
Derivative Instruments - Gross
Derivative Instruments - Gross Fair Value of Derivative Positions (Detail) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 238 | $ 368 |
Derivative Asset, Counterparty Netting Offset | (143) | (231) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (26) | (55) |
Net Derivative Positions | 69 | 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 | 184 | 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 Contract | ||
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 | 53 | 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 Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 783 | 493 |
Derivative Asset, Counterparty Netting Offset | (378) | (345) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (142) | (6) |
Net Derivative Positions | 263 | 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 | 132 | 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 | 515 | 89 |
Other Assets | Derivatives designated as hedges | Other Contract | ||
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 | 136 | 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 Contract | ||
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 | (197) | (259) |
Derivative Liability, Counterparty Netting Offset | 184 | 258 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Net Derivative Positions | (13) | (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 | (77) | (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 | (4) | (82) |
Other Current Liabilities | Derivatives designated as hedges | Other Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (15) | (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 | (98) | (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 Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (3) | |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (378) | (382) |
Derivative Liability, Counterparty Netting Offset | 338 | 318 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 9 | 7 |
Net Derivative Positions | (31) | (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 | (273) | (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 Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (4) | (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 | (101) | (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 | 0 | $ (11) |
Other Long-Term Liabilities | Derivatives not designated as hedges | Other Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 |
Derivative Instruments - Carryi
Derivative Instruments - Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions | Oct. 03, 2020 | Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | [1] | $ 16,982 | $ 10,683 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | [1] | 509 | 31 |
Current Portion of Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 753 | 1,121 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 4 | (3) | |
Long-term Portion of Borrowings | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Hedged Liability, Fair Value Hedge | 16,229 | 9,562 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 505 | $ 34 | |
[1] | Includes $34 million and $37 million of gains on terminated interest rate swaps as of October 3, 2020 and September 28, 2019, respectively. |
Derivative Instruments - Carr_2
Derivative Instruments - Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges - Terminated Interest Rate Swaps (Details) - USD ($) $ in Millions | Oct. 03, 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 | $ 34 | $ 37 |
Derivative Instruments - Adjust
Derivative Instruments - Adjustments Related to Fair Value Hedges included in Net Interest Expense in Consolidated Statements of Income (Detail) - Interest rate - Interest expense, net - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pay-floating swaps | $ 479 | $ 337 | $ (230) |
Borrowings hedged with pay-floating swaps | (479) | (337) | 230 |
Derivative, Gain (Loss) on Derivative, Net | $ 28 | $ (58) | $ (15) |
Derivative Instruments - Effect
Derivative Instruments - Effect of foreign Currency Cash Flow Hedges on AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (63) | $ 156 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ 269 | $ 183 |
[1] | Primarily recorded in revenue. |
Derivative Instruments - Net Ga
Derivative Instruments - Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
Costs and Expenses | |||
Derivative [Line Items] | |||
Net gains (losses) on foreign currency denominated assets and liabilities | $ 10 | $ (188) | $ (146) |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | (56) | 123 | 104 |
Net gains (losses) | (46) | (65) | (42) |
Interest expense, net | |||
Derivative [Line Items] | |||
Net gains (losses) on foreign currency denominated assets and liabilities | 1 | 16 | 39 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | 0 | (19) | (46) |
Net gains (losses) | 1 | (3) | (7) |
Income Taxes | |||
Derivative [Line Items] | |||
Net gains (losses) on foreign currency denominated assets and liabilities | (35) | 50 | 29 |
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | 33 | (51) | (19) |
Net gains (losses) | $ (2) | $ (1) | $ 10 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||
Oct. 03, 2020USD ($) | Oct. 03, 2020CAD ($) | Jul. 31, 2020USD ($) | Jun. 27, 2020USD ($) | Sep. 28, 2019USD ($) | |
Derivative [Line Items] | |||||
Hedged Instruments Maturity Upper Limit | 4 years | ||||
Net deferred loss recorded in AOCI for contracts that will be reclassified to earnings in the next twelve months | $ 106 | ||||
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | 53 | $ 65 | |||
Derivatives designated as hedges | Interest rate | Fair Value Hedging | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 15,800 | 9,900 | |||
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 4,600 | 6,300 | |||
Derivatives designated as hedges | Currency Swap | Fair Value Hedging | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 979 | $ 1,300 | |||
Derivatives not designated as hedges | Interest rate | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 2,000 | ||||
Derivative Instruments Not Designated as Hedging Instruments, Repurchase, Amount | $ 2 | ||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 1 | 11 | |||
Derivatives not designated as hedges | Foreign exchange | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 3,500 | $ 3,800 |
Restructuring and Impairment _3
Restructuring and Impairment Charges Restructuring Reserves (Details) - TFCF Integration - USD ($) $ in Millions | 12 Months Ended | |
Oct. 03, 2020 | Sep. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 676 | $ 0 |
Restructuring Charges | 453 | 906 |
Payments for Restructuring | (772) | (230) |
Ending Balance | 357 | 676 |
Media Networks | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 26 | 90 |
Parks, Experiences and Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 9 | 11 |
Studio Entertainment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 92 | 197 |
Direct-to-Consumer & International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 264 | 426 |
Corporate, Non-Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 62 | $ 182 |
Restructuring and Impairment _4
Restructuring and Impairment Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Oct. 03, 2020 | Jun. 27, 2020 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 5,200 | $ 600 | $ 200 | |||
Intangible assets, net | $ 19,173 | 19,173 | 23,215 | |||
Goodwill, Impairment Loss | 3,074 | |||||
Restructuring and impairment charges | 5,735 | 1,183 | 33 | |||
Restricted Stock or Unit Expense | [1] | 424 | 627 | $ 306 | ||
International Channels | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Goodwill, Impairment Loss | $ 3,100 | 3,100 | ||||
Distribution Rights | International Channels | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 1,900 | 1,900 | ||||
Intangible assets, net | 3,000 | 3,000 | ||||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | 400 | |||||
TFCF Integration | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | 500 | |||||
COVID-19 Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | $ 287 | |||||
TFCF | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restricted Stock or Unit Expense | $ 164 | |||||
TFCF | TFCF Integration | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | 1,700 | |||||
TFCF | TFCF Integration | Pro Forma | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | 1,700 | |||||
TFCF | TFCF Integration | Vest Upon Acquisition | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restricted Stock or Unit Expense | 300 | |||||
TFCF | TFCF Integration | Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment charges | $ 1,200 | |||||
[1] | Fiscal 2019 includes a $164 million charge for acceleration of TFCF performance RSUs converted to Company RSUs in connection with the TFCF acquisition (see Note 4). |
Quarterly Financial Summary (De
Quarterly Financial Summary (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenues | $ 14,707 | [1] | $ 11,779 | [1] | $ 18,025 | [1] | $ 20,877 | [1] | $ 19,118 | [1] | $ 20,262 | [1] | $ 14,924 | $ 15,303 | $ 65,388 | $ 69,607 | $ 59,434 | |||||
Income (loss) from continuing operations before income taxes | (580) | (4,840) | 1,051 | 2,626 | 1,247 | 2,009 | 7,236 | 3,431 | (1,743) | 13,923 | 14,729 | |||||||||||
Segment operating income | 606 | [1],[2] | 1,099 | [1],[2] | 2,407 | [1],[2] | 3,996 | [1],[2] | 3,425 | [1],[2] | 3,952 | [1],[2] | 3,815 | [2] | 3,655 | [2] | 8,108 | [3] | 14,847 | [3] | 15,689 | [3] |
Net income from continuing operations | (629) | (4,509) | 528 | 2,168 | 906 | 1,616 | 5,589 | 2,786 | (2,442) | 10,897 | 13,066 | |||||||||||
Net income attributable to Disney | (710) | (4,721) | 460 | 2,107 | 1,054 | 1,760 | 5,452 | 2,788 | (2,864) | 11,054 | 12,598 | |||||||||||
Income (loss) from discontinued operations | $ 0 | $ (3) | $ (8) | $ (21) | $ 299 | $ 366 | $ 22 | $ 0 | $ (32) | $ 687 | $ 0 | |||||||||||
Earnings Per Share from Continuing Operations, Diluted (usd per share) | $ (0.39) | [4] | $ (2.61) | [5] | $ 0.26 | [6] | $ 1.17 | [7] | $ 0.43 | [8] | $ 0.79 | [9] | $ 3.53 | [10] | $ 1.86 | $ (1.57) | $ 6.26 | $ 8.36 | ||||
Earnings Per Share, Diluted (usd per share) | (0.39) | (2.61) | 0.25 | 1.16 | 0.58 | 0.97 | 3.55 | 1.86 | (1.58) | [11] | 6.64 | [11] | 8.36 | [11] | ||||||||
Earnings Per Share from Continuing Operations, Basic (usd per share) | (0.39) | (2.61) | 0.26 | 1.18 | 0.43 | 0.79 | 3.55 | 1.87 | (1.57) | 6.30 | 8.40 | |||||||||||
Earnings Per Share, Basic (usd per share) | $ (0.39) | $ (2.61) | $ 0.25 | $ 1.17 | $ 0.58 | $ 0.98 | $ 3.56 | $ 1.87 | $ (1.58) | [11] | $ 6.68 | [11] | $ 8.40 | [11] | ||||||||
[1] | On March 20, 2019, the Company began consolidating the results of TFCF and Hulu (see Note 4). As a result, revenues and operating results in fiscal 2020 and the third and fourth quarter of fiscal 2019 reflected the impact of this transaction. | |||||||||||||||||||||
[2] | Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. | |||||||||||||||||||||
[3] | Equity in the income (loss) of investees is as follows: 2020 2019 2018 Media Networks $ 737 $ 703 $ 711 Parks, Experiences and Products (19) (13) (23) Studio Entertainment (1) — — Direct-to-Consumer & International (40) (240) (580) Equity in the income of investees included in segment operating income 677 450 108 Impairment of equity investments — (538) (210) Amortization of TFCF intangible assets related to equity investees (26) (15) — Equity in the income (loss) of investees $ 651 $ (103) $ (102) | |||||||||||||||||||||
[4] | Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), restructuring and impairment charges (adverse impact of $0.17 on EPS), the DraftKings gain (favorable impact of $0.25 on EPS), and a non-cash gain on the sale of an investment (favorable impact of $0.03 on EPS). | |||||||||||||||||||||
[5] | Results included goodwill and intangible asset impairments at our International Channels business (adverse impact of $2.53 on EPS), amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.28 on EPS), restructuring and impairment charges (adverse impact of $0.04 on EPS), and the DraftKings gain (favorable impact of $0.16 on EPS). | |||||||||||||||||||||
[6] | Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.27 on EPS) and restructuring and impairment charges (adverse impact of $0.06 on EPS). | |||||||||||||||||||||
[7] | Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on diluted earnings (loss) per share (EPS)) and restructuring and impairment charges (adverse impact of $0.06 on EPS). | |||||||||||||||||||||
[8] | Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.30 on EPS), a charge for the settlement of a portion of the debt originally assumed in the TFCF acquisition (adverse impact of $0.22 on EPS), and restructuring and impairment charges (adverse impact of $0.13), and a gain on the deemed settlement of preexisting relationships with TFCF as part of the accounting for the acquisition (favorable impact of $0.01 on EPS). | |||||||||||||||||||||
[9] | Results included amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.34 on EPS), restructuring and impairment charges (adverse impact of $0.09 on EPS), equity investment impairments (adverse impact of $0.08 on EPS), and an adjustment to the Hulu gain (adverse impact of $0.05 on EPS). | |||||||||||||||||||||
[10] | Results included the Hulu gain (favorable impact of $2.46 on EPS), restructuring and impairment charges (adverse impact of $0.33 on EPS), an impairment in our investment in Vice (adverse impact of $0.18 on EPS), and amortization related to TFCF and Hulu intangible assets and fair value step-up on film and television costs (adverse impact of $0.05 on EPS). | |||||||||||||||||||||
[11] | Total may not equal the sum of the column due to rounding. |
Quarterly Financial Summary - A
Quarterly Financial Summary - Additional Information (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||||
Oct. 03, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Oct. 03, 2020 | [1] | Sep. 28, 2019 | [1] | Sep. 29, 2018 | [1] | |
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | $ (0.39) | $ (2.61) | $ 0.25 | $ 1.16 | $ 0.58 | $ 0.97 | $ 3.55 | $ 1.86 | $ (1.58) | $ 6.64 | $ 8.36 | |||
Amortization of Intangible Assets and Fair Value Step-up on Film and Television Costs | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | (0.30) | (0.28) | (0.27) | (0.30) | (0.30) | (0.34) | (0.05) | |||||||
Restructuring And Impairment Charges | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | (0.17) | (0.04) | $ (0.06) | $ (0.06) | (0.13) | (0.09) | (0.33) | |||||||
Hulu Gain | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | 0.05 | 2.46 | ||||||||||||
Equity investment impairments | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | $ (0.08) | $ (0.18) | ||||||||||||
Goodwill and Intangible Asset Impairments | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | (2.53) | |||||||||||||
DraftKings Gain | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | 0.25 | $ 0.16 | ||||||||||||
Gain (Loss) on Investments | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | $ 0.03 | |||||||||||||
Charge for Extinguishment of Debt Assumed in the TFCF Acquisition | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | (0.22) | |||||||||||||
Settlement of Preexisting Relationships with TFCF | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Earnings Per Share, Diluted (usd per share) | $ 0.01 | |||||||||||||
[1] | Total may not equal the sum of the column due to rounding. |