Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 01, 2022 | Feb. 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 1, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38842 | |
Entity Registrant Name | WALT DISNEY CO/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-0940635 | |
Entity Address, Address Line One | 500 South Buena Vista Street | |
Entity Address, City or Town | Burbank | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91521 | |
City Area Code | 818 | |
Local Phone Number | 560-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DIS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,820,633,408 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001744489 | |
Current Fiscal Year End Date | --10-01 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Revenues | $ 21,819 | $ 16,249 | |
Selling, general, administrative and other | (3,787) | (2,917) | |
Depreciation and amortization | (1,269) | (1,298) | |
Total costs and expenses | (19,623) | (15,990) | |
Restructuring and impairment charges | 0 | (113) | |
Other expense, net | (436) | 0 | |
Interest expense, net | (311) | (324) | |
Equity in the income of investees | 239 | 224 | |
Income from continuing operations before income taxes | 1,688 | 46 | |
Income taxes on continuing operations | (488) | (16) | |
Net Income from Continuing Operations | 1,200 | 30 | |
Loss from discontinued operations, net of income tax benefit of $14 and $4, respectively | (48) | (12) | |
Net Income | 1,152 | 18 | |
Net Income from Continuing Operations Attributable to Noncontrolling Interests | (48) | (1) | |
Net income attributable to Disney | $ 1,104 | $ 17 | |
Earnings per share attributable to Disney: | |||
Continuing Operations, Per Diluted Share | $ 0.63 | $ 0.02 | |
Discontinued Operations, Per Diluted Share | (0.03) | (0.01) | |
Diluted | [1] | 0.60 | 0.01 |
Continuing Operations, Per Basic Share | 0.63 | 0.02 | |
Discontinued Operation, Per Basic Share | (0.03) | (0.01) | |
Basic | [1] | $ 0.61 | $ 0.01 |
Weighted average number of common and common equivalent shares outstanding: | |||
Diluted (shares) | 1,828 | 1,823 | |
Basic (shares) | 1,819 | 1,812 | |
Service | |||
Revenues | $ 19,542 | $ 14,871 | |
Cost of Goods and Services Sold | (13,161) | (10,738) | |
Product | |||
Revenues | 2,277 | 1,378 | |
Cost of Goods and Services Sold | $ (1,406) | $ (1,037) | |
[1] | Total may not equal the sum of the column due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Discontinued Operation, Tax Effect of Discontinued Operation | $ (14) | $ (4) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Net income | $ 1,152 | $ 18 |
Other Comprehensive Income/(Loss), Net of Tax: | ||
Market value adjustments for hedges | 50 | (173) |
Pension and postretirement medical plan adjustments | 155 | 150 |
Foreign currency translation and other | (22) | 277 |
Other comprehensive income | 183 | 254 |
Comprehensive income | 1,335 | 272 |
Net income from continuing operations attributable to noncontrolling interests | (48) | (1) |
Other comprehensive loss attributable to noncontrolling interests | (19) | (73) |
Comprehensive income attributable to Disney | $ 1,268 | $ 198 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Current assets | ||
Cash and Cash Equivalents | $ 14,444 | $ 15,959 |
Receivables, net | 14,882 | 13,367 |
Inventories | 1,345 | 1,331 |
Content advances | 1,125 | 2,183 |
Other current assets | 1,117 | 817 |
Total current assets | 32,913 | 33,657 |
Produced and licensed content costs | 30,669 | 29,549 |
Investments | 3,549 | 3,935 |
Attractions, buildings and equipment | 65,257 | 64,892 |
Accumulated depreciation | (38,505) | (37,920) |
Parks, resorts and other property before projects in progress and land, Total | 26,752 | 26,972 |
Projects in progress | 4,808 | 4,521 |
Land | 1,121 | 1,131 |
Parks, resorts and other property | 32,681 | 32,624 |
Intangible assets, net | 16,574 | 17,115 |
Goodwill | 78,052 | 78,071 |
Other assets | 8,873 | 8,658 |
Total assets | 203,311 | 203,609 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 18,709 | 20,894 |
Current portion of borrowings | 6,783 | 5,866 |
Deferred revenue and other | 4,545 | 4,317 |
Total current liabilities | 30,037 | 31,077 |
Borrowings | 47,349 | 48,540 |
Deferred income taxes | 8,124 | 7,246 |
Other long-term liabilities | 14,208 | 14,522 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests | 9,283 | 9,213 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares | 55,500 | 55,471 |
Retained earnings | 41,547 | 40,429 |
Accumulated other comprehensive loss | (6,276) | (6,440) |
Treasury stock, at cost, 19 million shares | (907) | (907) |
Total Disney Shareholders' equity | 89,864 | 88,553 |
Noncontrolling interests | 4,446 | 4,458 |
Total equity | 94,310 | 93,011 |
Total liabilities and equity | $ 203,311 | $ 203,609 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 4,600 | 4,600 |
Common stock, issued | 1,800 | 1,800 |
Treasury stock, shares | 19 | 19 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Net Income from Continuing Operations | $ 1,200 | $ 30 |
OPERATING ACTIVITIES | ||
Depreciation and amortization | 1,269 | 1,298 |
Net (gain) loss on investments | 436 | (80) |
Deferred income taxes | 726 | (105) |
Equity in the income of investees | (239) | (224) |
Cash distributions received from equity investees | 223 | 193 |
Net change in produced and licensed content costs and advances | 507 | 771 |
Equity-based compensation | 196 | 134 |
Pension and postretirement medical benefit cost amortization | 155 | 194 |
Other, net | (7) | (68) |
Changes in operating assets and liabilities: | ||
Receivables | (1,401) | (1,324) |
Inventories | (14) | 94 |
Other assets | (115) | (136) |
Accounts payable and other liabilities | (2,579) | (642) |
Income taxes | (566) | (60) |
Cash (used in) provided by operations - continuing operations | (209) | 75 |
INVESTING ACTIVITIES | ||
Investments in parks, resorts and other property | (981) | (760) |
Other, net | (6) | 28 |
Cash used in investing activities - continuing operations | (987) | (732) |
FINANCING ACTIVITIES | ||
Commercial paper payments, net | (124) | (179) |
Borrowings | 33 | 1 |
Reduction of borrowings | 0 | (139) |
Proceeds from exercise of stock options | 33 | 209 |
Other, net | (222) | (225) |
Cash used in financing activities - continuing operations | (280) | (333) |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ||
Cash provided by operations - discontinued operations | 8 | 9 |
Cash used in financing activities - discontinued operations | (12) | 0 |
Cash (used in) provided by discontinued operations | (4) | 9 |
Impact of Exchange Rate on Cash, Cash Equivalents and Restricted Cash | (35) | 139 |
Change in Cash, Cash Equivalents and Restricted Cash | (1,515) | (842) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 16,003 | 17,954 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 14,488 | $ 17,112 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | AOCI Attributable to Parent | Treasury Stock | Disney Shareholders | Non-controlling Interests | [1] | Total excluding redeemable noncontrolling interest |
BEGINNING BALANCE (in shares) at Oct. 03, 2020 | 1,810 | ||||||||
Beginning Balance at Oct. 03, 2020 | $ 54,497 | $ 38,315 | $ (8,322) | $ (907) | $ 83,583 | $ 4,680 | $ 88,263 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | $ 272 | 17 | 181 | 198 | (6) | 192 | |||
Equity compensation activity (in shares) | 4 | ||||||||
Equity compensation activity | $ 165 | 165 | 165 | ||||||
Contributions | 5 | 5 | |||||||
Adoption of New Accounting Pronouncement | Accounting Standards Update 2016-13 | 110 | 110 | 110 | ||||||
Distributions and other | $ 1 | 14 | 15 | (22) | (7) | ||||
ENDING BALANCE (in shares) at Jan. 02, 2021 | 1,814 | ||||||||
Ending Balance at Jan. 02, 2021 | $ 54,663 | 38,456 | (8,141) | (907) | 84,071 | 4,657 | 88,728 | ||
BEGINNING BALANCE (in shares) at Oct. 02, 2021 | 1,818 | ||||||||
Beginning Balance at Oct. 02, 2021 | 93,011 | $ 55,471 | 40,429 | (6,440) | (907) | 88,553 | 4,458 | 93,011 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | 1,335 | 1,104 | 164 | 1,268 | (4) | 1,264 | |||
Equity compensation activity (in shares) | 3 | ||||||||
Equity compensation activity | $ 29 | 29 | 29 | ||||||
Contributions | 29 | 29 | |||||||
Distributions and other | $ 0 | 14 | 14 | (37) | (23) | ||||
ENDING BALANCE (in shares) at Jan. 01, 2022 | 1,821 | ||||||||
Ending Balance at Jan. 01, 2022 | $ 94,310 | $ 55,500 | $ 41,547 | $ (6,276) | $ (907) | $ 89,864 | $ 4,446 | $ 94,310 | |
[1] | Excludes redeemable noncontrolling interests. |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Jan. 01, 2022 | |
Principles of Consolidation | Principles of Consolidation These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We believe that we have included all normal recurring adjustments necessary for a fair statement of the results for the interim period. Operating results for the quarter ended January 1, 2022 are not necessarily indicative of the results that may be expected for the year ending October 1, 2022. The terms “Company,” “Disney,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company, The Walt Disney Company, as well as the subsidiaries through which its various businesses are actually conducted. These financial statements should be read in conjunction with the Company’s 2021 Annual Report on Form 10-K. The Fox sports media business in Mexico was sold in November 2021. The Company recognized a $58 million loss on the sale, which is presented as discontinued operations in the Condensed Consolidated Statements of Income. At October 2, 2021, the assets and liabilities of the Fox sports media business in Mexico were not material and were included in other assets and other liabilities in the Condensed Consolidated Balance Sheets. Variable Interest Entities The Company enters into relationships with or makes investments in other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. Redeemable Noncontrolling Interests The Company consolidates the results of certain subsidiaries that are less than 100% owned and for which the noncontrolling interest shareholders have the rights to require the Company to purchase their interests in these subsidiaries. The most significant of these are Hulu LLC (Hulu) and BAMTech LLC (BAMTech). Hulu provides direct-to-consumer (DTC) streaming services and is owned 67% by the Company and 33% by NBC Universal (NBCU). In May 2019, the Company entered into a put/call agreement with NBCU that provided the Company with full operational control of Hulu. Under the agreement, beginning in January 2024, NBCU has the option to require the Company to purchase NBCU’s interest in Hulu and the Company has the option to require NBCU to sell its interest in Hulu to the Company, in either case at a redemption value based on NBCU’s equity ownership percentage of the greater of Hulu’s then equity fair value or a guaranteed floor value of $27.5 billion. NBCU’s interest will generally not be allocated its portion of Hulu’s losses as the redeemable noncontrolling interest is required to be carried at a minimum value. The minimum value is equal to the fair value as of the May 2019 agreement date accreted to the January 2024 estimated redemption value. At January 1, 2022, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $8.5 billion. BAMTech provides streaming technology services to third parties and is owned 85% by the Company and 15% by Major League Baseball (MLB). 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 in either case at a redemption value based on MLB’s equity ownership percentage of the greater of MLB’s then equity fair value or a guaranteed floor value ($563 million accreting at 8% annually for eight years from the date of acquisition). The MLB interest is required to be carried at a minimum value equal to its acquisition date fair value accreted to its estimated redemption value through the applicable redemption date. Therefore, the MLB interest is generally not allocated its portion of BAMTech losses. As of January 1, 2022, the MLB interest was recorded in the Company’s financial statements at $822 million. Our estimate of the redemption value of noncontrolling interests requires management to make significant judgments with respect to the future value of the noncontrolling interests. We are accreting the noncontrolling interests of both BAMTech and Hulu to their guaranteed floor values. If our estimate of the future redemption value increased above either of the guaranteed floor values, we would change our rate of accretion, which would generally increase earnings recorded in “Net income from continuing operations attributable to noncontrolling interests” and thus reduce “Net income attributable to Disney” on the Condensed Consolidated Statements of Income. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates. Reclassifications Certain reclassifications have been made in the fiscal 2021 financial statements and notes to conform to the fiscal 2022 presentation. |
Segment Information
Segment Information | 3 Months Ended |
Jan. 01, 2022 | |
Segment Information | Segment Information The Company’s operations are conducted in the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) segments. Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer in order to decide how to allocate resources and to assess performance. Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and acquisition accounting amortization of TFCF Corporation (TFCF) and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition in fiscal 2019 (TFCF and Hulu acquisition amortization). Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption. Impact of COVID-19 Since early 2020, the world has been, and continues to be, impacted by the novel coronavirus (COVID-19) and its variants. COVID-19 and measures to prevent its spread have impacted our segments in a number of ways, most significantly at the DPEP segment where our theme parks and resorts were closed and cruise ship sailings and guided tours were suspended. These operations resumed at various points since May 2020, initially at reduced operating capacities as a result of COVID-19 restrictions. In fiscal 2020 and 2021, we delayed, or in some cases, shortened or cancelled theatrical releases. In addition, we experienced significant disruptions in the production and availability of content, including the delay of key live sports programming during fiscal 2020 and fiscal 2021. In fiscal 2022, our domestic parks and experiences are generally operating without significant mandatory COVID-19-related capacity restrictions, such as those that were in place during the prior year; however, we continue to manage capacity to address ongoing COVID-19 considerations with respect to guest and cast health and safety. Certain of our international operations continue to be impacted by mandatory COVID-19-related capacity and travel restrictions. At the DMED segment, our film and television productions have generally resumed, although we have seen disruptions of production activities depending on local circumstances. We have generally been able to release our films theatrically in the current quarter, although certain markets continue to impose restrictions on theater openings and capacity. The impact of these disruptions and the extent of their adverse impact on our financial and operating results will depend on the length of time that such disruptions continue. This will, in turn, depend on the duration and severity of the impacts of COVID-19 and its variants, 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. We have incurred and will continue to incur additional costs to address government regulations and the safety of our employees, guests and talent. Segment revenues and segment operating income (loss) are as follows: Quarter Ended January 1, January 2, Revenues: Disney Media and Entertainment Distribution $ 14,585 $ 12,661 Disney Parks, Experiences and Products 7,234 3,588 Total consolidated revenues $ 21,819 $ 16,249 Segment operating income (loss): Disney Media and Entertainment Distribution $ 808 $ 1,451 Disney Parks, Experiences and Products 2,450 (119) Total segment operating income (1) $ 3,258 $ 1,332 (1) Equity in the income of investees is included in segment operating income as follows: Quarter Ended January 1, January 2, Disney Media and Entertainment Distribution $ 245 $ 235 Disney Parks, Experiences and Products (3) (8) Equity in the income of investees included in segment operating income 242 227 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 239 $ 224 A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended January 1, January 2, Segment operating income $ 3,258 $ 1,332 Corporate and unallocated shared expenses (228) (232) Restructuring and impairment charges — (113) Other expense, net (436) — Interest expense, net (311) (324) TFCF and Hulu acquisition amortization (1) (595) (617) Income from continuing operations before income taxes $ 1,688 $ 46 (1) For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million and $3 million, respectively. For the quarter ended January 2, 2021 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $447 million, $167 million, and $3 million, respectively. Goodwill The changes in the carrying amount of goodwill are as follows: DMED DPEP Total Balance at October 2, 2021 $ 72,521 $ 5,550 $ 78,071 Currency translation adjustments and other, net (19) — (19) Balance at January 1, 2022 $ 72,502 $ 5,550 $ 78,052 |
Revenues
Revenues | 3 Months Ended |
Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues The following table presents our revenues by segment and major source: Quarter Ended January 1, 2022 Quarter Ended January 2, 2021 DMED DPEP Total DMED DPEP Total Affiliate fees $ 4,371 $ — $ 4,371 $ 4,402 $ — $ 4,402 Advertising 3,868 1 3,869 3,763 1 3,764 Subscription fees 3,598 — 3,598 2,546 — 2,546 Theme park admissions — 2,152 2,152 — 549 549 Resort and vacations — 1,445 1,445 — 433 433 Retail and wholesale sales of merchandise, food and beverage — 2,089 2,089 — 1,163 1,163 TV/SVOD distribution licensing 1,396 — 1,396 1,169 — 1,169 Theatrical distribution licensing 529 — 529 31 — 31 Merchandise licensing — 1,119 1,119 5 1,090 1,095 Home entertainment 294 — 294 300 — 300 Other 529 428 957 445 352 797 $ 14,585 $ 7,234 $ 21,819 $ 12,661 $ 3,588 $ 16,249 The following table presents our revenues by segment and primary geographical markets: Quarter Ended January 1, 2022 Quarter Ended January 2, 2021 DMED DPEP Total DMED DPEP Total Americas $ 11,830 $ 5,711 $ 17,541 $ 10,291 $ 2,456 $ 12,747 Europe 1,538 865 2,403 1,293 487 1,780 Asia Pacific 1,217 658 1,875 1,077 645 1,722 Total revenues $ 14,585 $ 7,234 $ 21,819 $ 12,661 $ 3,588 $ 16,249 Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on TV/SVOD licenses for titles made available to the licensee in previous reporting periods. For the quarter ended January 1, 2022, $0.4 billion was recognized related to performance obligations satisfied as of October 2, 2021. For the quarter ended January 2, 2021, $0.4 billion was recognized related to performance obligations satisfied as of October 3, 2020. As of January 1, 2022, revenue for unsatisfied performance obligations expected to be recognized in the future is $14 billion, primarily for content and other intellectual property (IP) to be made available in the future under existing agreements with television station affiliates, merchandise licensees and DTC subscribers. Of this amount, we expect to recognize approximately $5 billion in the remainder of fiscal 2022, $4 billion in fiscal 2023, $2 billion in fiscal 2024 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. 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: January 1, October 2, Contract assets $ 142 $ 155 Accounts receivable Current 12,649 11,190 Non-current 1,341 1,359 Allowance for credit losses (199) (194) Deferred revenues Current 4,278 4,067 Non-current 575 581 Contract assets primarily relate to certain multi-season TV/SVOD licensing contracts. Activity for the current and prior-year quarters related to contract assets was not material. For the quarters ended January 1, 2022 and January 2, 2021, the Company recognized revenues of $1.9 billion and $1.5 billion included in the deferred revenue balance at October 2, 2021 and October 3, 2020, respectively. The revenues recognized in both periods were primarily for DTC subscriptions and advances from merchandise and TV/SVOD licensees. We evaluate our allowance for credit losses and estimate collectability of current and non-current accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods. The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties. These receivables are discounted to present value at contract inception and the related revenues are recognized at the discounted amount. The balance of film and television program sales receivables recorded in other non-current assets, net of an allowance for credit losses that is not material, was $0.8 billion as of January 1, 2022. The activity in the allowance for credit losses for the quarter ended January 1, 2022 was not material. The balance of vacation club receivables recorded in other non-current assets, net of an allowance for credit losses that is not material, was $0.6 billion as of January 1, 2022. The activity in the allowance for credit losses for the quarter ended January 1, 2022 was not material. |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Jan. 01, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Expense, net Other expense, net is as follows: Quarter Ended January 1, January 2, DraftKings loss $ (432) $ (186) fuboTV gain — 186 Other, net (4) — Other income expense, net $ (436) $ — For the quarter ended January 1, 2022 and January 2, 2021, the Company recognized a non-cash loss of $432 million and $186 million, respectively, from the adjustment of its investment in DraftKings, Inc. to fair value (DraftKings loss). |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Borrowings | 3 Months Ended |
Jan. 01, 2022 | |
Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings | Cash, Cash Equivalents, Restricted Cash and Borrowings Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. January 1, October 2, Cash and cash equivalents $ 14,444 $ 15,959 Restricted cash included in: Other current assets 3 3 Other assets 41 41 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 14,488 $ 16,003 Borrowings During the quarter ended January 1, 2022, the Company’s borrowing activity was as follows: October 2, Borrowings Payments Other January 1, Commercial paper with original maturities greater than three months $ 1,992 $ 200 $ (324) $ 2 $ 1,870 U.S. dollar denominated notes (1) 49,090 — — (34) 49,056 Asia Theme Parks borrowings (2) 1,331 33 — 27 1,391 Foreign currency denominated debt and other (3) 1,993 — — (178) 1,815 $ 54,406 $ 233 $ (324) $ (183) $ 54,132 (1) The other activity is primarily due to the amortization of purchase price adjustments on debt assumed in the TFCF acquisition and debt issuance fees. (2) The other activity is driven by the impact of changes in foreign currency exchange rates. (3) The other activity is due to market value adjustments for debt with qualifying hedges. At January 1, 2022, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows: Committed Capacity Unused Facility expiring March 2022 $ 5,250 $ — $ 5,250 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 Total $ 12,250 $ — $ 12,250 The facilities expiring in March 2023 and March 2025 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 March 2022, subject to a cap and floor that vary with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The bank facilities contain only one financial covenant, which is interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On January 1, 2022 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 January 1, 2022, the Company has $1.4 billion of outstanding letters of credit, of which none were issued under this facility. Cruise Ship Credit Facilities The Company has credit facilities to finance up to 80% of the contract price of three new cruise ships, which are scheduled to be delivered in 2022, 2024 and 2025. Under the facilities, $1.0 billion in financing is available as of 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. Interest expense, net Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended January 1, January 2, Interest expense $ (361) $ (404) Interest and investment income 34 113 Net periodic pension and postretirement benefit costs (other than service costs) 16 (33) Interest expense, net $ (311) $ (324) Interest and investment income includes gains and losses on certain publicly traded and non-public investments, investment impairments and interest earned on cash and cash equivalents and certain receivables. |
International Theme Parks
International Theme Parks | 3 Months Ended |
Jan. 01, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
International Theme Parks | International Theme Parks The Company has a 48% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort. The Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks. The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: January 1, October 2, 2021 Cash and cash equivalents $ 304 $ 287 Other current assets 104 95 Total current assets 408 382 Parks, resorts and other property 6,947 6,928 Other assets 172 176 Total assets $ 7,527 $ 7,486 Current liabilities $ 488 $ 473 Long-term borrowings 1,358 1,331 Other long-term liabilities 414 422 Total liabilities $ 2,260 $ 2,226 The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the quarter ended January 1, 2022: Revenues $ 792 Costs and expenses (826) Equity in the loss of investees (3) Asia Theme Parks’ royalty and management fees of $26 million for the quarter ended January 1, 2022 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests. International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statements of Cash Flows for the quarter ended January 1, 2022 were $109 million provided by operating activities, $193 million used in investing activities and $62 million provided by financing activities. Hong Kong Disneyland Resort The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have a 52% and a 48% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have provided loans to Hong Kong Disneyland Resort with outstanding balances of $150 million and $100 million, respectively. The interest rate on both loans is three month HIBOR plus 2%, and the maturity date is September 2025. The Company’s loan is eliminated in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($269 million), which bears interest at a rate of three month HIBOR plus 1.25% and matures in December 2023. The outstanding balance under the line of credit at January 1, 2022 was $124 million. The Company’s line of credit is eliminated in consolidation. Shanghai Disney Resort Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with loans totaling $905 million, bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. The Company has also provided Shanghai Disney Resort with a 1.0 billion yuan (approximately $0.2 billion) line of credit bearing interest at 8%. As of January 1, 2022, the total amount outstanding under the line of credit was 0.2 billion yuan (approximately $25 million). These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 8.0 billion yuan (approximately $1.3 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 January 1, 2022 the total amount outstanding under the line of credit was 0.2 billion yuan (approximately $33 million). |
Produced and Acquired_Licensed
Produced and Acquired/Licensed Content Costs and Advances | 3 Months Ended |
Jan. 01, 2022 | |
Other Industries [Abstract] | |
Produced and Acquired/Licensed Content Costs and Advances Disclosure | Produced and Acquired/Licensed Content Costs and Advances The Company classifies its capitalized produced and acquired/licensed content costs as long-term assets and classifies advances for live programming rights made prior to the live event as short-term assets. For purposes of amortization and impairment, the capitalized content costs are classified based on their predominant monetization strategy as follows: • Individual - lifetime value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g. theatrical revenues or sales to third-party television programmers) • Group - lifetime value is predominantly derived from third-party revenues that are attributable only to a bundle of titles (e.g. subscription revenue for a DTC service or affiliate fees for a cable television network) Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of January 1, 2022 As of October 2, 2021 Predominantly Monetized Individually Predominantly Monetized Total Predominantly Monetized Individually Predominantly Monetized Total Produced content Released, less amortization $ 5,296 $ 10,036 $ 15,332 $ 4,944 $ 9,779 $ 14,723 Completed, not released 300 992 1,292 630 762 1,392 In-process 4,408 5,466 9,874 4,371 4,623 8,994 In development or pre-production 205 129 334 351 162 513 $ 10,209 $ 16,623 26,832 $ 10,296 $ 15,326 25,622 Licensed content - Television programming rights and advances 4,962 6,110 Total produced and licensed content $ 31,794 $ 31,732 Current portion $ 1,125 $ 2,183 Non-current portion $ 30,669 $ 29,549 Amortization of produced and licensed content is as follows: Quarter Ended January 1, January 2, Produced content Predominantly monetized individually $ 1,033 $ 612 Predominantly monetized as a group 1,618 1,198 2,651 1,810 Licensed programming rights and advances 4,811 4,539 Total produced and licensed content costs (1) $ 7,462 $ 6,349 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income. |
Income Taxes Income Tax
Income Taxes Income Tax | 3 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Interim Period Tax Expense Generally, we record interim period tax expense based on the estimated annual effective tax rate using projections of full-year pre-tax earnings and income tax expense, adjusted for tax expense amounts recognized fully in the quarter they occur. We used this approach to determine tax expense in the current quarter of fiscal 2022. For interim periods in fiscal 2021, because of the uncertainties associated with the impact of COVID-19 on our projections of full-year pre-tax earnings and income tax expense, our normal approach of calculating interim period tax expense produced an income tax provision that was not meaningful. Accordingly, we calculated interim period fiscal 2021 tax expense based on the year-to-date earnings before tax, a blended U.S. Federal and state statutory tax rate of approximately 23% adjusted for tax expense amounts recognized fully in the quarter they occurred. Unrecognized Tax Benefits The Company’s unrecognized tax benefits at both January 1, 2022 and October 2, 2021 were approximately $2.6 billion (before interest and penalties). In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to resolutions of open tax matters, which would reduce our unrecognized tax benefits by $0.3 billion. |
Pension and Other Benefit Progr
Pension and Other Benefit Programs | 3 Months Ended |
Jan. 01, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Programs | Pension and Other Benefit Programs The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended January 1, January 2, January 1, January 2, Service costs $ 100 $ 108 $ 2 $ 3 Other costs (benefits): Interest costs 124 114 13 12 Expected return on plan assets (293) (275) (15) (14) Amortization of previously deferred service costs 1 2 — — Recognized net actuarial loss 147 186 7 7 Total other costs (benefits) (21) 27 5 5 Net periodic benefit cost $ 79 $ 135 $ 7 $ 8 During the quarter ended January 1, 2022, the Company did not make any material contributions to its pension and postretirement medical plans. The Company currently expects to make approximately $100 million to $150 million in pension and postretirement medical plans contributions in fiscal 2022. Final minimum funding requirements for fiscal 2022 will be determined based on a January 1, 2022 funding actuarial valuation, which is expected to be received by the end of the fourth quarter of fiscal 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Diluted earnings per share amounts are based upon the weighted average number of common and common equivalent shares outstanding during the period and are calculated using the treasury stock method for equity-based compensation awards (Awards). A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows: Quarter Ended January 1, January 2, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,819 1,812 Weighted average dilutive impact of Awards 9 11 Weighted average number of common and common equivalent shares outstanding (diluted) 1,828 1,823 Awards excluded from diluted earnings per share 4 8 |
Equity
Equity | 3 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Equity | Equity The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, before tax First quarter of fiscal 2022 Balance at October 2, 2021 $ (152) $ (7,025) $ (1,047) $ (8,224) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 87 47 (37) 97 Reclassifications of realized net (gains) losses to net income (18) 155 — 137 Balance at January 1, 2022 $ (83) $ (6,823) $ (1,084) $ (7,990) First quarter of fiscal 2021 Balance at October 3, 2020 $ (191) $ (9,423) $ (1,088) $ (10,702) Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period (185) 2 211 28 Reclassifications of realized net (gains) losses to net income (43) 194 — 151 Balance at January 2, 2021 $ (419) $ (9,227) $ (877) $ (10,523) Market Value Adjustments for Hedges Unrecognized Foreign AOCI Tax on AOCI First quarter of fiscal 2022 Balance at October 2, 2021 $ 42 $ 1,653 $ 89 $ 1,784 Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period (23) (11) (4) (38) Reclassifications of realized net (gains) losses to net income 4 (36) — (32) Balance at January 1, 2022 $ 23 $ 1,606 $ 85 $ 1,714 First quarter of fiscal 2021 Balance at October 3, 2020 $ 40 $ 2,201 $ 139 $ 2,380 Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period 46 (1) (7) 38 Reclassifications of realized net (gains) losses to net income 9 (45) — (36) Balance at January 2, 2021 $ 95 $ 2,155 $ 132 $ 2,382 Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, after tax First quarter of fiscal 2022 Balance at October 2, 2021 $ (110) $ (5,372) $ (958) $ (6,440) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 64 36 (41) 59 Reclassifications of realized net (gains) losses to net income (14) 119 — 105 Balance at January 1, 2022 $ (60) $ (5,217) $ (999) $ (6,276) First quarter of fiscal 2021 Balance at October 3, 2020 $ (151) $ (7,222) $ (949) $ (8,322) Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period (139) 1 204 66 Reclassifications of realized net (gains) losses to net income (34) 149 — 115 Balance at January 2, 2021 $ (324) $ (7,072) $ (745) $ (8,141) Details about AOCI components reclassified to net income are as follows: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Operations: Quarter Ended January 1, January 2, Market value adjustments, primarily cash flow hedges Primarily revenue $ 18 $ 43 Estimated tax Income taxes (4) (9) 14 34 Pension and postretirement medical expense Interest expense, net (155) (194) Estimated tax Income taxes 36 45 (119) (149) Total reclassifications for the period $ (105) $ (115) |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended January 1, January 2, Stock options $ 24 $ 25 RSUs 172 109 Total equity-based compensation expense (1) $ 196 $ 134 Equity-based compensation expense capitalized during the period $ 30 $ 34 (1) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. Unrecognized compensation cost related to unvested stock options and RSUs was $160 million and $2.2 billion, respectively, as of January 1, 2022. The weighted average grant date fair values of options granted during the quarter ended January 1, 2022 and January 2, 2021 were $47.66 and $55.28, respectively. During the quarter ended January 1, 2022, the Company made equity compensation grants consisting of 1.6 million stock options and 9.1 million RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company, together with, in some instances, certain of its directors and officers, is a defendant in various legal actions involving copyright, breach of contract and various other claims incident to the conduct of its businesses. Management does not believe that the Company has incurred a probable material loss by reason of any of those actions. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is generally classified in one of the following categories: Level 1 - Quoted prices for identical instruments in active markets Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level: Fair Value Measurement at January 1, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 527 $ — $ — $ 527 Derivatives Interest rate — 100 — 100 Foreign exchange — 696 — 696 Other — 18 — 18 Liabilities Derivatives Interest rate — (353) — (353) Foreign exchange — (525) — (525) Other — (2) — (2) Other — (438) — (438) Total recorded at fair value $ 527 $ (504) $ — $ 23 Fair value of borrowings $ — $ 58,177 $ 1,475 $ 59,652 Fair Value Measurement at October 2, 2021 Level 1 Level 2 Level 3 Total Assets Investments $ 950 $ — $ — $ 950 Derivatives Interest rate — 186 — 186 Foreign exchange — 707 — 707 Other — 10 — 10 Liabilities Derivatives Interest rate — (287) — (287) Foreign exchange — (618) — (618) Other — (8) — (8) Other — (375) — (375) Total recorded at fair value $ 950 $ (385) $ — $ 565 Fair value of borrowings $ — $ 58,913 $ 1,411 $ 60,324 The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, had an impact on derivative fair value estimates that was not material. Level 2 other liabilities are primarily arrangements that are valued based on the fair value of underlying investments, which are generally measured using Level 1 and Level 2 fair value techniques. Level 2 borrowings, which include commercial paper, U.S. dollar denominated notes and certain foreign currency denominated borrowings, are valued based on quoted prices for similar instruments in active markets or identical instruments in markets that are not active. Level 3 borrowings include the Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as prevailing market interest rates. The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsThe 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 January 1, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 220 $ 264 $ (127) $ (100) Interest rate 17 83 (353) — Other 8 1 (1) (1) Derivatives not designated as hedges Foreign exchange 109 103 (153) (145) Other 9 — — — Gross fair value of derivatives 363 451 (634) (246) Counterparty netting (253) (326) 394 185 Cash collateral (received) paid (26) (4) 234 41 Net derivative positions $ 84 $ 121 $ (6) $ (20) As of October 2, 2021 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 165 $ 240 $ (122) $ (83) Interest rate — 186 (287) — Other 10 — — — Derivatives not designated as hedges Foreign exchange 183 119 (208) (205) Other (8) — — — Gross fair value of derivatives 350 545 (617) (288) Counterparty netting (301) (360) 460 201 Cash collateral (received) paid (3) (51) 157 73 Net derivative positions $ 46 $ 134 $ — $ (14) Interest Rate Risk Management The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows and on the market value of its borrowings. In accordance with its policy, the Company targets its fixed-rate debt as a percentage of its net debt between a minimum and maximum percentage. The Company primarily uses pay-floating and pay-fixed interest rate swaps to facilitate its interest rate risk management activities. The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable-rate borrowings indexed to LIBOR. The total notional amount of the Company’s pay-floating interest rate swaps at both January 1, 2022 and October 2, 2021, was $15.1 billion. The following table summarizes fair value hedge adjustments to hedged borrowings: Carrying Amount of Hedged Borrowings Fair Value Adjustments Included January 1, October 2, 2021 January 1, October 2, 2021 Borrowings: Current $ 1,512 $ 505 $ 14 $ 5 Long-term 13,957 15,136 (290) (103) $ 15,469 $ 15,641 $ (276) $ (98) The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended January 1, January 2, Gain (loss) on: Pay-floating swaps $ (178) $ (147) Borrowings hedged with pay-floating swaps 178 147 Benefit (expense) associated with interest accruals on pay-floating swaps 37 35 The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed interest rate swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in AOCI and recognized in interest expense as the interest payments occur. The Company did not have pay-fixed interest rate swaps that were designated as cash flow hedges of interest payments at January 1, 2022 or at October 2, 2021, and gains and losses related to pay-fixed interest rate swaps recognized in earnings for the quarter ended January 1, 2022 and January 2, 2021 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 January 1, 2022 and October 2, 2021, the notional amounts of the Company’s net foreign exchange cash flow hedges were $8.1 billion and $6.9 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 $119 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: Quarter Ended January 1, January 2, Gain (loss) recognized in Other Comprehensive Income $ 79 $ (151) Gain (loss) reclassified from AOCI into the Statements of Operations (1) 13 44 (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 January 1, 2022 and October 2, 2021, the total notional amounts of the Company’s designated cross currency swaps were Canadian $1.3 billion ($1.0 billion) and Canadian $1.3 billion ($1.0 billion), respectively. The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended January 1, January 2, Gain (loss) on: Cross currency swaps $ 1 $ 42 Borrowings hedged with cross currency swaps (1) (42) 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 January 1, 2022 and October 2, 2021 were $3.9 billion and $3.5 billion, respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income: Costs and Expenses Interest expense, net Income Tax Expense Quarter Ended: January 1, January 2, January 1, January 2, January 1, January 2, Net gains (losses) on foreign currency denominated assets and liabilities $ (63) $ 158 $ 1 $ (41) $ 8 $ (59) Net gains (losses) on foreign exchange risk management contracts not designated as hedges 33 (187) — 43 (8) 50 Net gains (losses) $ (30) $ (29) $ 1 $ 2 $ — $ (9) 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 January 1, 2022 and October 2, 2021 and related gains or losses recognized in earnings for the quarter and quarter ended January 1, 2022 and January 2, 2021 were not material. Risk Management – Other Derivatives Not Designated as Hedges The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain total return swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The notional amounts of these contracts at both January 1, 2022 and October 2, 2021 were $0.4 billion. The related gains or losses recognized in earnings were not material for the quarters ended January 1, 2022 and January 2, 2021. 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 $301 million and $244 million on January 1, 2022 and October 2, 2021, respectively. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Jan. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment ChargesThe Company recognized approximately $0.1 billion of restructuring charges during the quarter ended January 2, 2021, primarily for severance. These charges are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statements of Income. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jan. 01, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted in Fiscal 2022 Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (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 Company adopted the new guidance in the first quarter of fiscal 2022. The adoption did not have a material impact on our financial statements. 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. The guidance is applicable to contracts entered into before January 1, 2023. The Company adopted the new guidance in the first quarter of fiscal 2022. The adoption did not have a material impact on our financial statements. Accounting Pronouncements Not Yet Adopted Disclosures by Business Entities about Government Assistance |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Financial Information by Operating Segments | Segment revenues and segment operating income (loss) are as follows: Quarter Ended January 1, January 2, Revenues: Disney Media and Entertainment Distribution $ 14,585 $ 12,661 Disney Parks, Experiences and Products 7,234 3,588 Total consolidated revenues $ 21,819 $ 16,249 Segment operating income (loss): Disney Media and Entertainment Distribution $ 808 $ 1,451 Disney Parks, Experiences and Products 2,450 (119) Total segment operating income (1) $ 3,258 $ 1,332 (1) Equity in the income of investees is included in segment operating income as follows: Quarter Ended January 1, January 2, Disney Media and Entertainment Distribution $ 245 $ 235 Disney Parks, Experiences and Products (3) (8) Equity in the income of investees included in segment operating income 242 227 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 239 $ 224 |
Equity In Income of Investees By Segment | Equity in the income of investees is included in segment operating income as follows: Quarter Ended January 1, January 2, Disney Media and Entertainment Distribution $ 245 $ 235 Disney Parks, Experiences and Products (3) (8) Equity in the income of investees included in segment operating income 242 227 Amortization of TFCF intangible assets related to equity investees (3) (3) Equity in the income of investees, net $ 239 $ 224 |
Reconciliation of Segment Operating Income to Income before Income Taxes | A reconciliation of segment operating income to income from continuing operations before income taxes is as follows: Quarter Ended January 1, January 2, Segment operating income $ 3,258 $ 1,332 Corporate and unallocated shared expenses (228) (232) Restructuring and impairment charges — (113) Other expense, net (436) — Interest expense, net (311) (324) TFCF and Hulu acquisition amortization (1) (595) (617) Income from continuing operations before income taxes $ 1,688 $ 46 (1) For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million and $3 million, respectively. For the quarter ended January 2, 2021 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $447 million, $167 million, and $3 million, respectively. |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: DMED DPEP Total Balance at October 2, 2021 $ 72,521 $ 5,550 $ 78,071 Currency translation adjustments and other, net (19) — (19) Balance at January 1, 2022 $ 72,502 $ 5,550 $ 78,052 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source: Quarter Ended January 1, 2022 Quarter Ended January 2, 2021 DMED DPEP Total DMED DPEP Total Affiliate fees $ 4,371 $ — $ 4,371 $ 4,402 $ — $ 4,402 Advertising 3,868 1 3,869 3,763 1 3,764 Subscription fees 3,598 — 3,598 2,546 — 2,546 Theme park admissions — 2,152 2,152 — 549 549 Resort and vacations — 1,445 1,445 — 433 433 Retail and wholesale sales of merchandise, food and beverage — 2,089 2,089 — 1,163 1,163 TV/SVOD distribution licensing 1,396 — 1,396 1,169 — 1,169 Theatrical distribution licensing 529 — 529 31 — 31 Merchandise licensing — 1,119 1,119 5 1,090 1,095 Home entertainment 294 — 294 300 — 300 Other 529 428 957 445 352 797 $ 14,585 $ 7,234 $ 21,819 $ 12,661 $ 3,588 $ 16,249 |
Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets: Quarter Ended January 1, 2022 Quarter Ended January 2, 2021 DMED DPEP Total DMED DPEP Total Americas $ 11,830 $ 5,711 $ 17,541 $ 10,291 $ 2,456 $ 12,747 Europe 1,538 865 2,403 1,293 487 1,780 Asia Pacific 1,217 658 1,875 1,077 645 1,722 Total revenues $ 14,585 $ 7,234 $ 21,819 $ 12,661 $ 3,588 $ 16,249 |
Contract with Customer, Asset and Liability | Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows: January 1, October 2, Contract assets $ 142 $ 155 Accounts receivable Current 12,649 11,190 Non-current 1,341 1,359 Allowance for credit losses (199) (194) Deferred revenues Current 4,278 4,067 Non-current 575 581 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | Other expense, net is as follows: Quarter Ended January 1, January 2, DraftKings loss $ (432) $ (186) fuboTV gain — 186 Other, net (4) — Other income expense, net $ (436) $ — |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Borrowings (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows. January 1, October 2, Cash and cash equivalents $ 14,444 $ 15,959 Restricted cash included in: Other current assets 3 3 Other assets 41 41 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 14,488 $ 16,003 |
Borrowing Activity | During the quarter ended January 1, 2022, the Company’s borrowing activity was as follows: October 2, Borrowings Payments Other January 1, Commercial paper with original maturities greater than three months $ 1,992 $ 200 $ (324) $ 2 $ 1,870 U.S. dollar denominated notes (1) 49,090 — — (34) 49,056 Asia Theme Parks borrowings (2) 1,331 33 — 27 1,391 Foreign currency denominated debt and other (3) 1,993 — — (178) 1,815 $ 54,406 $ 233 $ (324) $ (183) $ 54,132 (1) The other activity is primarily due to the amortization of purchase price adjustments on debt assumed in the TFCF acquisition and debt issuance fees. (2) The other activity is driven by the impact of changes in foreign currency exchange rates. (3) The other activity is due to market value adjustments for debt with qualifying hedges. |
Line of Credit Facilities | At January 1, 2022, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows: Committed Capacity Unused Facility expiring March 2022 $ 5,250 $ — $ 5,250 Facility expiring March 2023 4,000 — 4,000 Facility expiring March 2025 3,000 — 3,000 Total $ 12,250 $ — $ 12,250 |
Interest Expense, net | Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following: Quarter Ended January 1, January 2, Interest expense $ (361) $ (404) Interest and investment income 34 113 Net periodic pension and postretirement benefit costs (other than service costs) 16 (33) Interest expense, net $ (311) $ (324) |
International Theme Parks (Tabl
International Theme Parks (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Consolidating Balance Sheets | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets: January 1, October 2, 2021 Cash and cash equivalents $ 304 $ 287 Other current assets 104 95 Total current assets 408 382 Parks, resorts and other property 6,947 6,928 Other assets 172 176 Total assets $ 7,527 $ 7,486 Current liabilities $ 488 $ 473 Long-term borrowings 1,358 1,331 Other long-term liabilities 414 422 Total liabilities $ 2,260 $ 2,226 |
Consolidating Income Statements | |
Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the quarter ended January 1, 2022: Revenues $ 792 Costs and expenses (826) Equity in the loss of investees (3) |
Produced and Acquired_License_2
Produced and Acquired/Licensed Content Costs and Advances (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Other Industries [Abstract] | |
Balances of Produced and Licensed Content Costs | Total capitalized produced and licensed content by predominant monetization strategy is as follows: As of January 1, 2022 As of October 2, 2021 Predominantly Monetized Individually Predominantly Monetized Total Predominantly Monetized Individually Predominantly Monetized Total Produced content Released, less amortization $ 5,296 $ 10,036 $ 15,332 $ 4,944 $ 9,779 $ 14,723 Completed, not released 300 992 1,292 630 762 1,392 In-process 4,408 5,466 9,874 4,371 4,623 8,994 In development or pre-production 205 129 334 351 162 513 $ 10,209 $ 16,623 26,832 $ 10,296 $ 15,326 25,622 Licensed content - Television programming rights and advances 4,962 6,110 Total produced and licensed content $ 31,794 $ 31,732 Current portion $ 1,125 $ 2,183 Non-current portion $ 30,669 $ 29,549 |
Amortization of Produced and Licensed Content Costs | Amortization of produced and licensed content is as follows: Quarter Ended January 1, January 2, Produced content Predominantly monetized individually $ 1,033 $ 612 Predominantly monetized as a group 1,618 1,198 2,651 1,810 Licensed programming rights and advances 4,811 4,539 Total produced and licensed content costs (1) $ 7,462 $ 6,349 (1) Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income. |
Pension and Other Benefit Pro_2
Pension and Other Benefit Programs (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Plans Postretirement Medical Plans Quarter Ended Quarter Ended January 1, January 2, January 1, January 2, Service costs $ 100 $ 108 $ 2 $ 3 Other costs (benefits): Interest costs 124 114 13 12 Expected return on plan assets (293) (275) (15) (14) Amortization of previously deferred service costs 1 2 — — Recognized net actuarial loss 147 186 7 7 Total other costs (benefits) (21) 27 5 5 Net periodic benefit cost $ 79 $ 135 $ 7 $ 8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Awards Excluded from Diluted Earnings Per Share Calculation | A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows: Quarter Ended January 1, January 2, Shares (in millions): Weighted average number of common and common equivalent shares outstanding (basic) 1,819 1,812 Weighted average dilutive impact of Awards 9 11 Weighted average number of common and common equivalent shares outstanding (diluted) 1,828 1,823 Awards excluded from diluted earnings per share 4 8 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts: Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, before tax First quarter of fiscal 2022 Balance at October 2, 2021 $ (152) $ (7,025) $ (1,047) $ (8,224) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 87 47 (37) 97 Reclassifications of realized net (gains) losses to net income (18) 155 — 137 Balance at January 1, 2022 $ (83) $ (6,823) $ (1,084) $ (7,990) First quarter of fiscal 2021 Balance at October 3, 2020 $ (191) $ (9,423) $ (1,088) $ (10,702) Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period (185) 2 211 28 Reclassifications of realized net (gains) losses to net income (43) 194 — 151 Balance at January 2, 2021 $ (419) $ (9,227) $ (877) $ (10,523) Market Value Adjustments for Hedges Unrecognized Foreign AOCI Tax on AOCI First quarter of fiscal 2022 Balance at October 2, 2021 $ 42 $ 1,653 $ 89 $ 1,784 Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period (23) (11) (4) (38) Reclassifications of realized net (gains) losses to net income 4 (36) — (32) Balance at January 1, 2022 $ 23 $ 1,606 $ 85 $ 1,714 First quarter of fiscal 2021 Balance at October 3, 2020 $ 40 $ 2,201 $ 139 $ 2,380 Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period 46 (1) (7) 38 Reclassifications of realized net (gains) losses to net income 9 (45) — (36) Balance at January 2, 2021 $ 95 $ 2,155 $ 132 $ 2,382 Market Value Adjustments for Hedges Unrecognized Foreign AOCI AOCI, after tax First quarter of fiscal 2022 Balance at October 2, 2021 $ (110) $ (5,372) $ (958) $ (6,440) Quarter Ended January 1, 2022: Unrealized gains (losses) arising during the period 64 36 (41) 59 Reclassifications of realized net (gains) losses to net income (14) 119 — 105 Balance at January 1, 2022 $ (60) $ (5,217) $ (999) $ (6,276) First quarter of fiscal 2021 Balance at October 3, 2020 $ (151) $ (7,222) $ (949) $ (8,322) Quarter Ended January 2, 2021: Unrealized gains (losses) arising during the period (139) 1 204 66 Reclassifications of realized net (gains) losses to net income (34) 149 — 115 Balance at January 2, 2021 $ (324) $ (7,072) $ (745) $ (8,141) |
Details about AOCI Components Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows: Gain (loss) in net income: Affected line item in the Condensed Consolidated Statements of Operations: Quarter Ended January 1, January 2, Market value adjustments, primarily cash flow hedges Primarily revenue $ 18 $ 43 Estimated tax Income taxes (4) (9) 14 34 Pension and postretirement medical expense Interest expense, net (155) (194) Estimated tax Income taxes 36 45 (119) (149) Total reclassifications for the period $ (105) $ (115) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (RSUs) | Compensation expense related to stock options and restricted stock units (RSUs) is as follows: Quarter Ended January 1, January 2, Stock options $ 24 $ 25 RSUs 172 109 Total equity-based compensation expense (1) $ 196 $ 134 Equity-based compensation expense capitalized during the period $ 30 $ 34 (1) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level: Fair Value Measurement at January 1, 2022 Level 1 Level 2 Level 3 Total Assets Investments $ 527 $ — $ — $ 527 Derivatives Interest rate — 100 — 100 Foreign exchange — 696 — 696 Other — 18 — 18 Liabilities Derivatives Interest rate — (353) — (353) Foreign exchange — (525) — (525) Other — (2) — (2) Other — (438) — (438) Total recorded at fair value $ 527 $ (504) $ — $ 23 Fair value of borrowings $ — $ 58,177 $ 1,475 $ 59,652 Fair Value Measurement at October 2, 2021 Level 1 Level 2 Level 3 Total Assets Investments $ 950 $ — $ — $ 950 Derivatives Interest rate — 186 — 186 Foreign exchange — 707 — 707 Other — 10 — 10 Liabilities Derivatives Interest rate — (287) — (287) Foreign exchange — (618) — (618) Other — (8) — (8) Other — (375) — (375) Total recorded at fair value $ 950 $ (385) $ — $ 565 Fair value of borrowings $ — $ 58,913 $ 1,411 $ 60,324 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Fair Value of Derivative Positions | The Company’s derivative positions measured at fair value are summarized in the following tables: As of January 1, 2022 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 220 $ 264 $ (127) $ (100) Interest rate 17 83 (353) — Other 8 1 (1) (1) Derivatives not designated as hedges Foreign exchange 109 103 (153) (145) Other 9 — — — Gross fair value of derivatives 363 451 (634) (246) Counterparty netting (253) (326) 394 185 Cash collateral (received) paid (26) (4) 234 41 Net derivative positions $ 84 $ 121 $ (6) $ (20) As of October 2, 2021 Current Other Assets Other Current Liabilities Other Long- Derivatives designated as hedges Foreign exchange $ 165 $ 240 $ (122) $ (83) Interest rate — 186 (287) — Other 10 — — — Derivatives not designated as hedges Foreign exchange 183 119 (208) (205) Other (8) — — — Gross fair value of derivatives 350 545 (617) (288) Counterparty netting (301) (360) 460 201 Cash collateral (received) paid (3) (51) 157 73 Net derivative positions $ 46 $ 134 $ — $ (14) |
Carrying Amount and Cumulative Basis Adjustments for Fair Value Hedges Recorded on the Balance Sheet | The following table summarizes fair value hedge adjustments to hedged borrowings: Carrying Amount of Hedged Borrowings Fair Value Adjustments Included January 1, October 2, 2021 January 1, October 2, 2021 Borrowings: Current $ 1,512 $ 505 $ 14 $ 5 Long-term 13,957 15,136 (290) (103) $ 15,469 $ 15,641 $ (276) $ (98) |
Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income | The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended January 1, January 2, Gain (loss) on: Pay-floating swaps $ (178) $ (147) Borrowings hedged with pay-floating swaps 178 147 Benefit (expense) associated with interest accruals on pay-floating swaps 37 35 |
Effect of Foreign Exchange Cash Flow Hedges on AOCI | The following table summarizes the effect of foreign exchange cash flow hedges on AOCI: Quarter Ended January 1, January 2, Gain (loss) recognized in Other Comprehensive Income $ 79 $ (151) Gain (loss) reclassified from AOCI into the Statements of Operations (1) 13 44 (1) Primarily recorded in revenue. |
Gain (Loss) on Cross Currency Swap Activity Included in Interest Expense | The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income: Quarter Ended January 1, January 2, Gain (loss) on: Cross currency swaps $ 1 $ 42 Borrowings hedged with cross currency swaps (1) (42) |
Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income: Costs and Expenses Interest expense, net Income Tax Expense Quarter Ended: January 1, January 2, January 1, January 2, January 1, January 2, Net gains (losses) on foreign currency denominated assets and liabilities $ (63) $ 158 $ 1 $ (41) $ 8 $ (59) Net gains (losses) on foreign exchange risk management contracts not designated as hedges 33 (187) — 43 (8) 50 Net gains (losses) $ (30) $ (29) $ 1 $ 2 $ — $ (9) |
Principles of Consolidation Pri
Principles of Consolidation Principles of Consolidation - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Jan. 01, 2022 | Oct. 02, 2021 | May 13, 2019 | Sep. 25, 2017 |
Schedule of Equity Method Investments | |||||
Discontinued Operation, Loss from Disposal of Discontinued Operation, before Income Tax | $ 58 | ||||
Redeemable Noncontrolling Interests | $ 9,283 | $ 9,213 | |||
BAMTech, LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 85.00% | ||||
MLB | BAMTech, LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 15.00% | ||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 822 | ||||
MLB | BAMTech, LLC | Minimum | |||||
Schedule of Equity Method Investments | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 563 | ||||
Preferred Stock Return on NCI, Accretion Percentage | 8.00% | ||||
Hulu LLC | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 67.00% | ||||
Hulu LLC | Equity Interest Held by NBC Universal | |||||
Schedule of Equity Method Investments | |||||
Equity Method Investment, Ownership Percentage | 33.00% | ||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | $ 27,500 | ||||
Redeemable Noncontrolling Interests | $ 8,500 |
Financial Information by Operat
Financial Information by Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information | ||
Revenues | $ 21,819 | $ 16,249 |
Segment operating income | 3,258 | 1,332 |
Disney Media and Entertainment Distribution | ||
Segment Reporting Information | ||
Revenues | 14,585 | 12,661 |
Segment operating income | 808 | 1,451 |
Disney Parks, Experiences and Products | ||
Segment Reporting Information | ||
Revenues | 7,234 | 3,588 |
Segment operating income | $ 2,450 | $ (119) |
Equity in the Income of Investe
Equity in the Income of Investees included in Segment Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 239 | $ 224 |
Amortization of Intangible Assets Held by Equity Investees | (3) | (3) |
Disney Media and Entertainment Distribution | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | 245 | 235 |
Disney Parks, Experiences and Products | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | (3) | (8) |
Total Segments | ||
Schedule of Equity Method Investments | ||
Equity in the income of investees | $ 242 | $ 227 |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Reconciling Items for Operating Income (Loss) from Segment to Consolidated | |||
Segment operating income | $ 3,258 | $ 1,332 | |
Corporate and unallocated shared expenses | (228) | (232) | |
Restructuring and impairment charges | 0 | (113) | |
Other expense, net | (436) | 0 | |
Interest expense, net | (311) | (324) | |
Amortization of Intangible Assets | [1] | (595) | (617) |
Income from continuing operations before income taxes | $ 1,688 | $ 46 | |
[1] | For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million and $3 million, respectively. For the quarter ended January 2, 2021 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $447 million, $167 million, and $3 million, respectively. |
Reconciliation of Segment Ope_2
Reconciliation of Segment Operating Income to Income Before Income Taxes Footnote (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Amortization of Intangible Assets | [1] | $ 595 | $ 617 |
Amortization of Intangible Assets Held by Equity Investees | (3) | (3) | |
TFCF and Hulu | |||
Amortization of Intangible Assets | 435 | 447 | |
Amortization | 157 | 167 | |
Amortization of Intangible Assets Held by Equity Investees | $ 3 | $ 3 | |
[1] | For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million and $3 million, respectively. For the quarter ended January 2, 2021 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $447 million, $167 million, and $3 million, respectively. |
Acquisitions Changes in Carry A
Acquisitions Changes in Carry Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2022USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 78,071 |
Currency translation adjustments and other, net | (19) |
Ending balance | 78,052 |
Disney Media and Entertainment Distribution | |
Goodwill [Line Items] | |
Beginning balance | 72,521 |
Currency translation adjustments and other, net | (19) |
Ending balance | 72,502 |
Disney Parks, Experiences and Products | |
Goodwill [Line Items] | |
Beginning balance | 5,550 |
Currency translation adjustments and other, net | 0 |
Ending balance | $ 5,550 |
Disaggregation of Revenue by Ma
Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 21,819 | $ 16,249 |
Affiliate fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,371 | 4,402 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,869 | 3,764 |
Subscription fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,598 | 2,546 |
Theme park admissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,152 | 549 |
Resort and vacations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,445 | 433 |
Retail and wholesale sales of merchandise, food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,089 | 1,163 |
TV/SVOD distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,396 | 1,169 |
Theatrical distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 529 | 31 |
Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,119 | 1,095 |
Home entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 294 | 300 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 957 | 797 |
Disney Media and Entertainment Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,585 | 12,661 |
Disney Media and Entertainment Distribution | Affiliate fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,371 | 4,402 |
Disney Media and Entertainment Distribution | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,868 | 3,763 |
Disney Media and Entertainment Distribution | Subscription fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,598 | 2,546 |
Disney Media and Entertainment Distribution | TV/SVOD distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,396 | 1,169 |
Disney Media and Entertainment Distribution | Theatrical distribution licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 529 | 31 |
Disney Media and Entertainment Distribution | Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 5 |
Disney Media and Entertainment Distribution | Home entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 294 | 300 |
Disney Media and Entertainment Distribution | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 529 | 445 |
Disney Parks, Experiences and Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,234 | 3,588 |
Disney Parks, Experiences and Products | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1 | 1 |
Disney Parks, Experiences and Products | Theme park admissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,152 | 549 |
Disney Parks, Experiences and Products | Resort and vacations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,445 | 433 |
Disney Parks, Experiences and Products | Retail and wholesale sales of merchandise, food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,089 | 1,163 |
Disney Parks, Experiences and Products | Merchandise licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,119 | 1,090 |
Disney Parks, Experiences and Products | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 428 | $ 352 |
Disaggregation of Revenue by Ge
Disaggregation of Revenue by Geographical Markets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 21,819 | $ 16,249 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,541 | 12,747 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,403 | 1,780 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,875 | 1,722 |
Disney Media and Entertainment Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,585 | 12,661 |
Disney Media and Entertainment Distribution | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,830 | 10,291 |
Disney Media and Entertainment Distribution | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,538 | 1,293 |
Disney Media and Entertainment Distribution | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,217 | 1,077 |
Disney Parks, Experiences and Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,234 | 3,588 |
Disney Parks, Experiences and Products | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,711 | 2,456 |
Disney Parks, Experiences and Products | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 865 | 487 |
Disney Parks, Experiences and Products | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 658 | $ 645 |
Contract with Customer, Asset a
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Contract with Customer, Asset, before Allowance for Credit Loss | $ 142 | $ 155 |
Accounts Receivable, before Allowance for Credit Loss, Current | 12,649 | 11,190 |
Accounts Receivable, before Allowance for Credit Loss, Noncurrent | 1,341 | 1,359 |
Contract with Customer, Asset, Allowance for Credit Loss | (199) | (194) |
Contract with Customer, Liability, Current | 4,278 | 4,067 |
Contract with Customer, Liability, Noncurrent | $ 575 | $ 581 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 400 | $ 400 |
Revenue, Remaining Performance Obligation, Amount | 14,000 | |
Contract with Customer, Liability, Revenue Recognized | 1,900 | $ 1,500 |
Syndicated programming | ||
Long-term receivables, net of allowance for credit losses | 800 | |
Mortgage Receivable | ||
Long-term receivables, net of allowance for credit losses | 600 | |
Unsatisfied performance obligation recognized in fiscal 2022 | ||
Revenue, Remaining Performance Obligation, Amount | 5,000 | |
Unsatisfied performance obligation recognized in fiscal 2023 | ||
Revenue, Remaining Performance Obligation, Amount | 4,000 | |
Unsatisfied performance obligation recognized in fiscal 2024 | ||
Revenue, Remaining Performance Obligation, Amount | 2,000 | |
Unsatisfied performance obligation recognized thereafter | ||
Revenue, Remaining Performance Obligation, Amount | $ 3,000 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Schedule of Other Income and Expense [Line Items] | ||
Gain (Loss) on Sale of Investments | $ (436) | $ 80 |
Other Nonoperating Income (Expense) | (4) | 0 |
Other Expense, Net | (436) | 0 |
DraftKings | ||
Schedule of Other Income and Expense [Line Items] | ||
Gain (Loss) on Investments | (432) | (186) |
fuboTV | ||
Schedule of Other Income and Expense [Line Items] | ||
Gain (Loss) on Sale of Investments | $ 0 | $ 186 |
Reconciliation of Cash, Cash Eq
Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported in the Condensed Consolidated Balance Sheet to the Total Amount in the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 | Jan. 02, 2021 | Oct. 03, 2020 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 14,444 | $ 15,959 | ||
Restricted Cash and Investments, Current | 3 | 3 | ||
Restricted Cash and Investments, Noncurrent | 41 | 41 | ||
Cash, Cash Equivalents and Restricted Cash in the Statement of Cash Flows | $ 14,488 | $ 16,003 | $ 17,112 | $ 17,954 |
Borrowing Activity (Details)
Borrowing Activity (Details) $ in Millions | 3 Months Ended | |
Jan. 01, 2022USD ($) | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | $ 54,406 | |
Borrowings | 233 | |
Payments | (324) | |
Other Activity | (183) | |
Borrowings ending balance | 54,132 | |
Commercial paper with original maturities greater than three months | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,992 | |
Borrowings | 200 | |
Payments | (324) | |
Other Activity | 2 | |
Borrowings ending balance | 1,870 | |
U.S. dollar denominated notes | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 49,090 | |
Borrowings | 0 | |
Payments | 0 | |
Other Activity | (34) | [1] |
Borrowings ending balance | 49,056 | |
Asia International Theme Parks borrowings | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,331 | |
Borrowings | 33 | |
Payments | 0 | |
Other Activity | 27 | [2] |
Borrowings ending balance | 1,391 | |
Foreign currency denominated debt and other | ||
Borrowings [Roll Forward] | ||
Borrowings beginning balance | 1,993 | |
Borrowings | 0 | |
Payments | 0 | |
Other Activity | (178) | [3] |
Borrowings ending balance | $ 1,815 | |
[1] | The other activity is primarily due to the amortization of purchase price adjustments on debt assumed in the TFCF acquisition and debt issuance fees. | |
[2] | The other activity is driven by the impact of changes in foreign currency exchange rates. | |
[3] | The other activity is due to market value adjustments for debt with qualifying hedges. |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Borrowings Line of Credit Facilities (Details) $ in Millions | Jan. 01, 2022USD ($) |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 12,250 |
Existing Line of Credit 3 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 5,250 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 5,250 |
Existing Line Of Credit 1 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 4,000 |
Existing Line of Credit 2 | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 3,000 |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash and Borrowings Interest Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Interest expense | $ (361) | $ (404) |
Interest and investment income | 34 | 113 |
Net periodic pension and postretirement benefit costs other than service costs | 16 | (33) |
Interest expense, net | $ (311) | $ (324) |
Cash, Cash Equivalents, Restr_5
Cash, Cash Equivalents, Restricted Cash and Borrowings - Additional Information (Details) $ in Millions | 3 Months Ended |
Jan. 01, 2022USD ($) | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Interest Rate Description | The facilities expiring in March 2023 and March 2025 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 March 2022, subject to a cap and floor that vary with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. |
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,250 |
Letters of Credit Outstanding, Amount | $ 1,400 |
Disney Cruise Line | |
Debt Instrument [Line Items] | |
Loan to Cost Ratio | 80.00% |
Minimum | |
Debt Instrument [Line Items] | |
Variable Spread Above LIBOR | 0.18% |
Maximum | |
Debt Instrument [Line Items] | |
Variable Spread Above LIBOR | 1.63% |
Letter of Credit | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Existing Line of Credit 3 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2022 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,250 |
Existing Line Of Credit 1 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2023 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 |
Existing Line of Credit 2 | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Expiration Date | Mar. 31, 2025 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 |
Credit Facility available as of October 2021 | Disney Cruise Line | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.48% |
Credit Facility available beginning August 2023 | Disney Cruise Line | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% |
Credit Facility available beginning August 2024 | Disney Cruise Line | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 |
Debt Instrument, Interest Rate, Stated Percentage | 3.74% |
Impact of Consolidating Balance
Impact of Consolidating Balance Sheets of Asia Theme Parks (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | $ 14,444 | $ 15,959 |
Other current assets | 1,117 | 817 |
Total current assets | 32,913 | 33,657 |
Parks, resorts and other property | 32,681 | 32,624 |
Other assets | 8,873 | 8,658 |
Total assets | 203,311 | 203,609 |
Current liabilities | 30,037 | 31,077 |
Long-term borrowings | 47,349 | 48,540 |
Asia International Theme Parks | ||
Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||
Cash and Cash Equivalents | 304 | 287 |
Other current assets | 104 | 95 |
Total current assets | 408 | 382 |
Parks, resorts and other property | 6,947 | 6,928 |
Other assets | 172 | 176 |
Total assets | 7,527 | 7,486 |
Current liabilities | 488 | 473 |
Long-term borrowings | 1,358 | 1,331 |
Other long-term liabilities | 414 | 422 |
Total liabilities | $ 2,260 | $ 2,226 |
Impact of Consolidating Income
Impact of Consolidating Income Statements of International Theme Parks (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues | $ 21,819 | $ 16,249 |
Cost and expenses | (19,623) | (15,990) |
Equity in the loss of investees | 239 | $ 224 |
International Theme Parks | ||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||
Revenues | 792 | |
Cost and expenses | (826) | |
Equity in the loss of investees | $ (3) |
International Theme Parks - Add
International Theme Parks - Additional Information (Details) ¥ in Millions, $ in Millions, $ in Billions | 3 Months Ended | |||
Jan. 01, 2022USD ($) | Jan. 01, 2022HKD ($) | Jan. 01, 2022CNY (¥) | Jan. 02, 2021USD ($) | |
Noncontrolling Interest | ||||
Net Cash Used in Investing Activities | $ (987) | $ (732) | ||
Maximum | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 1.63% | 1.63% | 1.63% | |
Asia International Theme Parks | ||||
Noncontrolling Interest | ||||
Royalties And Management Fees | $ 26 | |||
International Theme Parks | ||||
Noncontrolling Interest | ||||
Net Cash Provided by Operating Activities | (109) | |||
Net Cash Used in Investing Activities | (193) | |||
Net Cash Provided by Financing Activities | (62) | |||
Hong Kong Disneyland Resort | Loans | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount | 150 | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 100 | |||
Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | Sep. 30, 2025 | |
Hong Kong Disneyland Resort | Loans | HIBOR | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 2.00% | 2.00% | 2.00% | |
Hong Kong Disneyland Resort | Line of Credit | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 269 | $ 2.1 | ||
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 124 | |||
Debt Instrument, Maturity Date | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | |
Hong Kong Disneyland Resort | Line of Credit | HIBOR | ||||
Noncontrolling Interest | ||||
Variable Spread Above Reference Rate | 1.25% | 1.25% | 1.25% | |
Shanghai Disney Resort | Loans | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount | $ 905 | |||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 1,300 | ¥ 8,000 | ||
Shanghai Disney Resort | Loans | Maximum | ||||
Noncontrolling Interest | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |
Shanghai Disney Resort | Line of Credit | ||||
Noncontrolling Interest | ||||
Variable Interest Entity, Financial or Other Support, Amount | $ 200 | ¥ 1,000 | ||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests | $ 200 | ¥ 1,400 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |
Variable Interest Entity, Financial or Other Support, Amount, Outstanding | $ 25 | ¥ 200 | ||
Variable Interest Entity, Financial or Other Support, Amount from Noncontrolling Interests, Outstanding | $ 33 | ¥ 200 | ||
Hong Kong Disneyland Resort | ||||
Noncontrolling Interest | ||||
Effective Ownership Interest | 48.00% | 48.00% | 48.00% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 52.00% | 52.00% | 52.00% | |
Shanghai Disney Resort | ||||
Noncontrolling Interest | ||||
Effective Ownership Interest | 43.00% | 43.00% | 43.00% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 57.00% | 57.00% | 57.00% | |
Shanghai Disney Resort Management Company | ||||
Noncontrolling Interest | ||||
Effective Ownership Interest | 70.00% | 70.00% | 70.00% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | 30.00% | |
Shanghai Disney Resort Management Company | Shanghai Disney Resort | Loans | ||||
Noncontrolling Interest | ||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 | |
Shanghai Disney Resort Management Company | Shanghai Disney Resort | Line of Credit | ||||
Noncontrolling Interest | ||||
Debt Instrument, Maturity Date | Dec. 31, 2036 | Dec. 31, 2036 | Dec. 31, 2036 |
Balances of Produced and Licens
Balances of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Film, Monetized on Its Own, Capitalized Cost [Abstract] | ||
Released, less amortization | $ 5,296 | $ 4,944 |
Completed, not released | 300 | 630 |
In-process | 4,408 | 4,371 |
In development or pre-production | 205 | 351 |
Film, Monetized on Its Own, Capitalized Cost | 10,209 | 10,296 |
Film, Monetized in Film Group, Capitalized Cost [Abstract] | ||
Released, less amortization | 10,036 | 9,779 |
Completed, not released | 992 | 762 |
In-process | 5,466 | 4,623 |
In development or pre-production | 129 | 162 |
Film, Monetized in Film Group, Capitalized Cost | 16,623 | 15,326 |
Film, Capitalized Cost [Abstract] | ||
Released, less amortization | 15,332 | 14,723 |
Completed, not released | 1,292 | 1,392 |
In-process | 9,874 | 8,994 |
In development or pre-production | 334 | 513 |
Film, Capitalized Cost | 26,832 | 25,622 |
Licensed television programming rights and advances | 4,962 | 6,110 |
Produced and Licensed Content, Total | 31,794 | 31,732 |
Current portion | 1,125 | 2,183 |
Non-current portion | $ 30,669 | $ 29,549 |
Amortization of Produced and Li
Amortization of Produced and Licensed Content Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Amortization of Produced Content Costs | $ 2,651 | $ 1,810 | |
Amortization of Licensed Television and Programming Rights | 4,811 | 4,539 | |
Amortization of Produced and Licensed Content Costs, Total | [1] | 7,462 | 6,349 |
Monetized individually | |||
Amortization of Produced Content Costs | 1,033 | 612 | |
Monetized as a group | |||
Amortization of Produced Content Costs | $ 1,618 | $ 1,198 | |
[1] | Primarily included in “Costs of services” in the Condensed Consolidated Statements of Income |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Oct. 02, 2021 | |
Income Tax [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.00% | |
Unrecognized Tax Benefits | $ 2,600 | $ 2,600 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 300 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (16) | $ 33 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 100 | 108 |
Interest costs | 124 | 114 |
Expected return on plan assets | (293) | (275) |
Amortization of previously deferred service costs | 1 | 2 |
Recognized net actuarial loss | 147 | 186 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (21) | 27 |
Net periodic benefit cost | 79 | 135 |
Postretirement Medical Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 2 | 3 |
Interest costs | 13 | 12 |
Expected return on plan assets | (15) | (14) |
Amortization of previously deferred service costs | 0 | 0 |
Recognized net actuarial loss | 7 | 7 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 5 | 5 |
Net periodic benefit cost | $ 7 | $ 8 |
Pension and Other Benefit Pro_3
Pension and Other Benefit Programs - Additional Information (Details) $ in Millions | Jan. 01, 2022USD ($) |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 100 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 150 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Awards Excluded from Diluted Earnings Per Share Calculation (Details) - shares shares in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Shares (in millions): | ||
Weighted average number of common and common equivalent shares outstanding (basic) | 1,819 | 1,812 |
Weighed average dilutive impact of awards | 9 | 11 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 1,828 | 1,823 |
Awards excluded from diluted earnings per share | 4 | 8 |
Equity Changes in Accumulated O
Equity Changes in Accumulated Other Comprehensive Loss, Before Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | $ (8,224) | $ (10,702) |
Unrealized gains (losses) arising during the period | 97 | 28 |
Reclassifications of realized net (gains) losses to net income | 137 | 151 |
AOCI before Tax, Attributable to Parent, Ending Balance | (7,990) | (10,523) |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (152) | (191) |
Unrealized gains (losses) arising during the period | 87 | (185) |
Reclassifications of realized net (gains) losses to net income | (18) | (43) |
AOCI before Tax, Attributable to Parent, Ending Balance | (83) | (419) |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (7,025) | (9,423) |
Unrealized gains (losses) arising during the period | 47 | 2 |
Reclassifications of realized net (gains) losses to net income | 155 | 194 |
AOCI before Tax, Attributable to Parent, Ending Balance | (6,823) | (9,227) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before Tax, Attributable to Parent, Beginning Balance | (1,047) | (1,088) |
Unrealized gains (losses) arising during the period | (37) | 211 |
Reclassifications of realized net (gains) losses to net income | 0 | 0 |
AOCI before Tax, Attributable to Parent, Ending Balance | $ (1,084) | $ (877) |
Equity Changes in Accumulated_2
Equity Changes in Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | $ 1,784 | $ 2,380 |
Unrealized gains (losses) arising during the period | (38) | 38 |
Reclassifications of realized net (gains) losses to net income | (32) | (36) |
AOCI Tax, Attributable to Parent, Ending Balance | 1,714 | 2,382 |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 42 | 40 |
Unrealized gains (losses) arising during the period | (23) | 46 |
Reclassifications of realized net (gains) losses to net income | 4 | 9 |
AOCI Tax, Attributable to Parent, Ending Balance | 23 | 95 |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 1,653 | 2,201 |
Unrealized gains (losses) arising during the period | (11) | (1) |
Reclassifications of realized net (gains) losses to net income | (36) | (45) |
AOCI Tax, Attributable to Parent, Ending Balance | 1,606 | 2,155 |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI Tax, Attributable to Parent, Beginning Balance | 89 | 139 |
Unrealized gains (losses) arising during the period | (4) | (7) |
Reclassifications of realized net (gains) losses to net income | 0 | 0 |
AOCI Tax, Attributable to Parent, Ending Balance | $ 85 | $ 132 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | $ (6,440) | $ (8,322) |
Unrealized gains (losses) arising during the period | 59 | 66 |
Reclassifications of realized net (gains) losses to net income | 105 | 115 |
AOCI, Ending Balance | (6,276) | (8,141) |
Market Value Adjustments for Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (110) | (151) |
Unrealized gains (losses) arising during the period | 64 | (139) |
Reclassifications of realized net (gains) losses to net income | (14) | (34) |
AOCI, Ending Balance | (60) | (324) |
Unrecognized Pension and Postretirement Medical Expense | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (5,372) | (7,222) |
Unrealized gains (losses) arising during the period | 36 | 1 |
Reclassifications of realized net (gains) losses to net income | 119 | 149 |
AOCI, Ending Balance | (5,217) | (7,072) |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI, Beginning Balance | (958) | (949) |
Unrealized gains (losses) arising during the period | (41) | 204 |
Reclassifications of realized net (gains) losses to net income | 0 | 0 |
AOCI, Ending Balance | $ (999) | $ (745) |
Details about AOCI Components R
Details about AOCI Components Reclassified to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Details about AOCI Components Reclassified to Net Income | ||
Revenues | $ 21,819 | $ 16,249 |
Interest expense, net | 311 | 324 |
Income taxes | (488) | (16) |
Net income attributable to The Walt Disney Company (Disney) | 1,104 | 17 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Net income attributable to The Walt Disney Company (Disney) | (105) | (115) |
Gain/(loss) in net income from Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Revenues | 18 | 43 |
Income taxes | (4) | (9) |
Net income attributable to The Walt Disney Company (Disney) | 14 | 34 |
Gain/(loss) in net income from Pension and postretirement medical expense | Reclassification out of Accumulated Other Comprehensive Income | ||
Details about AOCI Components Reclassified to Net Income | ||
Interest expense, net | (155) | (194) |
Income taxes | 36 | 45 |
Net income attributable to The Walt Disney Company (Disney) | $ (119) | $ (149) |
Compensation Expense Related to
Compensation Expense Related to Stock Options, Stock Appreciation Rights and Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options | $ 24 | $ 25 | |
RSUs | 172 | 109 | |
Total equity-based compensation expense | [1] | 196 | 134 |
Equity-based compensation expense capitalized during the period | $ 30 | $ 34 | |
[1] | Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair values of options issued | $ 47.66 | $ 55.28 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 160 | |
Stock compensation granted, number of shares | 1.6 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 2,200 | |
Stock compensation granted, number of shares | 9.1 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 527 | $ 950 |
Other Liabilities | (438) | (375) |
Total | 23 | 565 |
Fair value of borrowings | 59,652 | 60,324 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 100 | 186 |
Derivative Liabilities | (353) | (287) |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 696 | 707 |
Derivative Liabilities | (525) | (618) |
Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 18 | 10 |
Derivative Liabilities | (2) | (8) |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 527 | 950 |
Other Liabilities | 0 | 0 |
Total | 527 | 950 |
Fair value of borrowings | 0 | 0 |
Level 1 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 1 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Other Liabilities | (438) | (375) |
Total | (504) | (385) |
Fair value of borrowings | 58,177 | 58,913 |
Level 2 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 100 | 186 |
Derivative Liabilities | (353) | (287) |
Level 2 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 696 | 707 |
Derivative Liabilities | (525) | (618) |
Level 2 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 18 | 10 |
Derivative Liabilities | (2) | (8) |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Other Liabilities | 0 | 0 |
Total | 0 | 0 |
Fair value of borrowings | 1,475 | 1,411 |
Level 3 | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 3 | Other Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
Gross Fair Value of Derivative
Gross Fair Value of Derivative Positions (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 363 | $ 350 |
Derivative Asset, Counterparty Netting Offset | (253) | (301) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (26) | (3) |
Net derivative positions | 84 | 46 |
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 | 220 | 165 |
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 | 17 | 0 |
Current Assets | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 8 | 10 |
Current Assets | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 109 | 183 |
Current Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 9 | 8 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 451 | 545 |
Derivative Asset, Counterparty Netting Offset | (326) | (360) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (4) | (51) |
Net derivative positions | 121 | 134 |
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 | 264 | 240 |
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 | 83 | 186 |
Other Assets | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 0 |
Other Assets | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 103 | 119 |
Other Assets | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (634) | (617) |
Derivative Liability, Counterparty netting offset | 394 | 460 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 234 | 157 |
Net derivative positions | (6) | 0 |
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 | (127) | (122) |
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 | (353) | (287) |
Other Current Liabilities | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (1) | 0 |
Other Current Liabilities | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (153) | (208) |
Other Current Liabilities | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (246) | (288) |
Derivative Liability, Counterparty netting offset | 185 | 201 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 41 | 73 |
Net derivative positions | (20) | (14) |
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 | (100) | (83) |
Other Long-Term Liabilities | Derivatives designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Other Long-Term Liabilities | Derivatives designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (1) | 0 |
Other Long-Term Liabilities | Derivatives not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (145) | (205) |
Other Long-Term Liabilities | Derivatives not designated as hedges | Other Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 |
Derivative Instruments Carrying
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | $ 15,469 | $ 15,641 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (276) | (98) |
Current Portion of Borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | 1,512 | 505 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 14 | 5 |
Borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | 13,957 | 15,136 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (290) | $ (103) |
Adjustments Related to Fair Val
Adjustments Related to Fair Value Hedges Included in Net Interest Expense in Condensed Consolidated Statements of Income (Details) - Interest rate - Interest Expense - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on pay-floating swaps | $ (178) | $ (147) |
Gain (loss) on hedged borrowings | 178 | 147 |
Derivative, Gain (Loss) on Derivative, Net | $ 37 | $ 35 |
Derivative Instruments Effect o
Derivative Instruments Effect of Foreign Currency Cash Flow Hedges on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 79 | $ (151) | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ 13 | $ 44 |
[1] | Primarily recorded in revenue. |
Adjustments Related to Cross Cu
Adjustments Related to Cross Currency Swap Hedges Included in Net Interest Expense in Condensed Consolidated Statements of Income (Details) - Interest Expense - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 1 | $ 42 |
Borrowings hedge with cross currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ (1) | $ (42) |
Net Gains or Losses Recognized
Net Gains or Losses Recognized on Economic Exposures Associated With Foreign Currency Exchange Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Costs and Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | $ (63) | $ 158 |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 33 | (187) |
Net gain (loss) | (30) | (29) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | 1 | (41) |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | 0 | 43 |
Net gain (loss) | 1 | 2 |
Income Taxes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency denominated assets and liabilities | 8 | (59) |
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | (8) | 50 |
Net gain (loss) | $ 0 | $ (9) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Millions, $ in Millions | 3 Months Ended | |||
Jan. 01, 2022USD ($) | Jan. 01, 2022CAD ($) | Oct. 02, 2021USD ($) | Oct. 02, 2021CAD ($) | |
Derivative [Line Items] | ||||
Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months | $ 119 | |||
Hedging Period for Foreign Currency Transactions, Maximum | 4 years | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty | $ 301 | $ 244 | ||
Derivatives designated as hedges | Interest rate | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 15,100 | 15,100 | ||
Derivatives designated as hedges | Foreign exchange | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 8,100 | 6,900 | ||
Derivatives designated as hedges | Currency Swap | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 1,000 | $ 1,300 | 1,000 | $ 1,300 |
Not Designated as Hedging Instrument | Foreign exchange | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 3,900 | 3,500 | ||
Not Designated as Hedging Instrument | Other Derivative | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400 | $ 400 |
Restructuring and Impairment _2
Restructuring and Impairment Charges - Additional Details (Details) $ in Millions | 3 Months Ended |
Jan. 02, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 100 |