International Theme Parks

The Company has a 47% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort (the Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks).

The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2018 and September 30, 2017:



	June 30, 2018		September 30, 2017
Cash and cash equivalents	$	745	$	843
Other current assets	427		376
Total current assets	1,172		1,219
Parks, resorts and other property	9,213		9,403
Other assets	96		111
Total assets ⁽¹⁾	$	10,481	$	10,733

Current liabilities	$	1,018	$	1,163
Long-term borrowings	1,182		1,145
Other long-term liabilities	370		371
Total liabilities ⁽¹⁾	$	2,570	$	2,679


⁽¹⁾	Total assets of the Asia Theme Parks were $8 billion at both June 30, 2018 and September 30, 2017 including parks, resorts and other property of $7 billion. Total liabilities of the Asia Theme Parks were $2 billion at both June 30, 2018 and September 30, 2017.

The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the nine months ended June 30, 2018:



	June 30, 2018
Revenues	$	2,781
Costs and expenses	(2,702		)
Equity in the loss of investees	(19		)

Asia Theme Parks’ royalty and management fees of $129 million for the nine months ended June 30, 2018 are eliminated in consolidation but are considered in calculating earnings allocated to noncontrolling interests.

International Theme Parks’ cash flows for the nine months ended June 30, 2018 included in the Company’s Condensed Consolidated Statement of Cash Flows were $558 million generated from operating activities, $488 million used in investing activities and $34 million generated from financing activities. The majority of cash flows generated from operating activities and used in investing activities were for the Asia Theme Parks.

Hong Kong Disneyland Resort

The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have 53% and 47% equity interests in Hong Kong Disneyland Resort, respectively.

The Company and HKSAR have both provided loans to Hong Kong Disneyland Resort with outstanding balances of $141 million each. The interest rate is three month HIBOR plus 2%, and the maturity date is September 2025 for the majority of the borrowings. The Company’s loan is eliminated upon consolidation.

The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($269 million), which bears interest at a rate of three month HIBOR plus 1.25% and matures in December 2023. There is no outstanding balance under the line of credit at June 30, 2018.

In August 2017, the Company and HKSAR entered into an agreement for a multi-year expansion of Hong Kong Disneyland that will add a number of new guest offerings, including two new themed areas, by 2023. Under the terms of the agreement, the HK $10.9 billion ($1.4 billion) expansion will be funded by equity contributions from the Company and HKSAR on an equal basis.

Shanghai Disney Resort

Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort.

The Company has provided Shanghai Disney Resort with loans totaling $795 million, bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. In addition, the Company has an outstanding balance of $172 million due from Shanghai Disney Resort primarily related to royalties. The Company has also provided Shanghai Disney Resort with a $157 million line of credit bearing interest at 8%. There is no outstanding balance under the line of credit at June 30, 2018. The outstanding balances are eliminated upon consolidation.

Shendi has provided Shanghai Disney Resort with loans totaling 6.9 billion yuan (approximately $1.0 billion), bearing interest at rates up to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $206 million) line of credit bearing interest at 8%. There is no outstanding balance under the line of credit at June 30, 2018.