(State or other jurisdiction | (Commission File Number) | (IRS Employer |
of incorporation) | Identification No.) | |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Emerging growth company | |
23 - | |
99.1 - | Updates to Annual Report on Form 10-K for the Fiscal Year Ended September 29, 2018: |
99.2 - | Updates to Quarterly Report on Form 10-Q for the Quarter Ended December 29, 2018: |
101 - | The following materials from the Annual Report on Form 10-K for the year ended September 29, 2018 and from the Quarterly Report on Form 10-Q for the quarter ended December 29, 2018 formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Equity and (vi) related notes |
The Walt Disney Company | |||
By: | /s/ Brent A. Woodford | ||
Brent A. Woodford | |||
Executive Vice President | |||
Controllership, Financial Planning and Tax | |||
Page | |
Management’s Report on Internal Control Over Financial Reporting | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Financial Statements of The Walt Disney Company and Subsidiaries | |
Consolidated Statements of Income for the Years Ended September 29, 2018, September 30, 2017 and October 1, 2016 | |
Consolidated Statements of Comprehensive Income for the Years Ended September 29, 2018, September 30, 2017 and October 1, 2016 | |
Consolidated Balance Sheets as of September 29, 2018 and September 30, 2017 | |
Consolidated Statements of Cash Flows for the Years Ended September 29, 2018, September 30, 2017 and October 1, 2016 | |
Consolidated Statements of Shareholders’ Equity for the Years Ended September 29, 2018, September 30, 2017 and October 1, 2016 | |
Notes to Consolidated Financial Statements | |
Quarterly Financial Summary (unaudited) | |
2018 | 2017 | 2016 | |||||||||
Revenues: | |||||||||||
Services | $ | $ | $ | ||||||||
Products | |||||||||||
Total revenues | |||||||||||
Costs and expenses: | |||||||||||
Cost of services (exclusive of depreciation and amortization) | ( | ) | ( | ) | ( | ) | |||||
Cost of products (exclusive of depreciation and amortization) | ( | ) | ( | ) | ( | ) | |||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||
Restructuring and impairment charges | ( | ) | ( | ) | ( | ) | |||||
Other income, net | |||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | |||||
Equity in the income (loss) of investees, net | ( | ) | |||||||||
Income before income taxes | |||||||||||
Income taxes | ( | ) | ( | ) | ( | ) | |||||
Net income | |||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | |||||
Net income attributable to The Walt Disney Company (Disney) | $ | $ | $ | ||||||||
Earnings per share attributable to Disney: | |||||||||||
Diluted | $ | $ | $ | ||||||||
Basic | $ | $ | $ | ||||||||
Weighted average number of common and common equivalent shares outstanding: | |||||||||||
Diluted | |||||||||||
Basic | |||||||||||
Dividends declared per share | $ | $ | $ | ||||||||
2018 | 2017 | 2016 | |||||||||
Net Income | $ | $ | $ | ||||||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Market value adjustments for investments | ( | ) | |||||||||
Market value adjustments for hedges | ( | ) | ( | ) | |||||||
Pension and postretirement medical plan adjustments | ( | ) | |||||||||
Foreign currency translation and other | ( | ) | ( | ) | ( | ) | |||||
Other comprehensive income/(loss) | ( | ) | |||||||||
Comprehensive income | |||||||||||
Net income attributable to noncontrolling interests, including redeemable noncontrolling interests | ( | ) | ( | ) | ( | ) | |||||
Other comprehensive loss attributable to noncontrolling interests | |||||||||||
Comprehensive income attributable to Disney | $ | $ | $ | ||||||||
September 29, 2018 | September 30, 2017 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Receivables | |||||||
Inventories | |||||||
Television costs and advances | |||||||
Other current assets | |||||||
Total current assets | |||||||
Film and television costs | |||||||
Investments | |||||||
Parks, resorts and other property | |||||||
Attractions, buildings and equipment | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Projects in progress | |||||||
Land | |||||||
Intangible assets, net | |||||||
Goodwill | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and other accrued liabilities | $ | $ | |||||
Current portion of borrowings | |||||||
Deferred revenue and other | |||||||
Total current liabilities | |||||||
Borrowings | |||||||
Deferred income taxes | |||||||
Other long-term liabilities | |||||||
Commitments and contingencies (Note 14) | |||||||
Redeemable noncontrolling interests | |||||||
Equity | |||||||
Preferred stock | |||||||
Common stock, $.01 par value, Authorized – 4.6 billion shares, Issued – 2.9 billion shares | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Treasury stock, at cost, 1.4 billion shares | ( | ) | ( | ) | |||
Total Disney Shareholders’ equity | |||||||
Noncontrolling interests | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ | |||||
2018 | 2017 | 2016 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | $ | ||||||||
Depreciation and amortization | |||||||||||
Gains on acquisitions and dispositions | ( | ) | ( | ) | ( | ) | |||||
Deferred income taxes | ( | ) | |||||||||
Equity in the (income) loss of investees | ( | ) | ( | ) | |||||||
Cash distributions received from equity investees | |||||||||||
Net change in film and television costs and advances | ( | ) | ( | ) | ( | ) | |||||
Equity-based compensation | |||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | ( | ) | ( | ) | |||||||
Inventories | ( | ) | ( | ) | |||||||
Other assets | ( | ) | ( | ) | ( | ) | |||||
Accounts payable and other accrued liabilities | ( | ) | |||||||||
Income taxes | ( | ) | |||||||||
Cash provided by operations | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | ( | ) | |||||
Acquisitions | ( | ) | ( | ) | ( | ) | |||||
Other | ( | ) | ( | ) | |||||||
Cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Commercial paper borrowings/(payments), net | ( | ) | ( | ) | |||||||
Borrowings | |||||||||||
Reduction of borrowings | ( | ) | ( | ) | ( | ) | |||||
Dividends | ( | ) | ( | ) | ( | ) | |||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | |||||
Proceeds from exercise of stock options | |||||||||||
Contributions from noncontrolling interest holders | |||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||
Cash used in financing activities | ( | ) | ( | ) | ( | ) | |||||
Impact of exchange rates on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||||
Change in cash, cash equivalents and restricted cash | ( | ) | |||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ | $ | ||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid | $ | $ | $ | ||||||||
Income taxes paid | $ | $ | $ | ||||||||
Equity Attributable to Disney | |||||||||||||||||||||||||||||||
Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Disney Equity | Non-controlling Interests (1) | Total Equity | ||||||||||||||||||||||||
Balance at October 3, 2015 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Comprehensive income | — | — | ( | ) | — | ||||||||||||||||||||||||||
Equity compensation activity | — | — | — | — | |||||||||||||||||||||||||||
Common stock repurchases | ( | ) | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||
Distributions and other | — | ( | ) | ( | ) | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Balance at October 1, 2016 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Comprehensive income | — | — | — | ||||||||||||||||||||||||||||
Equity compensation activity | — | — | — | — | |||||||||||||||||||||||||||
Common stock repurchases | ( | ) | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||
Contributions | — | — | — | — | — | — | |||||||||||||||||||||||||
Distributions and other | ( | ) | ( | ) | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
Balance at September 30, 2017 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Comprehensive income | — | — | — | ||||||||||||||||||||||||||||
Equity compensation activity | — | — | — | — | |||||||||||||||||||||||||||
Common stock repurchases | ( | ) | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||
Contributions | — | — | — | — | — | — | |||||||||||||||||||||||||
Distributions and other | — | ( | ) | — | — | ( | ) | ( | ) | ||||||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
1 | Description of the Business and Segment Information |
2018 | 2017 | 2016 | |||||||||
Revenues | |||||||||||
Media Networks | $ | $ | $ | ||||||||
Parks, Experiences & Consumer Products | |||||||||||
Third parties | |||||||||||
Intersegment | ( | ) | ( | ) | ( | ) | |||||
Studio Entertainment | |||||||||||
Third parties | |||||||||||
Intersegment | |||||||||||
Direct-to-Consumer & International | |||||||||||
Eliminations(1) | ( | ) | ( | ) | ( | ) | |||||
Total consolidated revenues | $ | $ | $ | ||||||||
Segment operating income | |||||||||||
Media Networks | $ | $ | $ | ||||||||
Parks, Experiences & Consumer Products | |||||||||||
Studio Entertainment | |||||||||||
Direct-to-Consumer & International | ( | ) | ( | ) | ( | ) | |||||
Eliminations(1) | ( | ) | ( | ) | |||||||
Total segment operating income(2) | $ | $ | $ | ||||||||
2018 | 2017 | 2016 | |||||||||
Reconciliation of segment operating income to income before income taxes | |||||||||||
Segment operating income | $ | $ | $ | ||||||||
Corporate and unallocated shared expenses | ( | ) | ( | ) | ( | ) | |||||
Restructuring and impairment charges | ( | ) | ( | ) | ( | ) | |||||
Other income, net | |||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | |||||
Vice Gain(2) | |||||||||||
Infinity Charge(3) | ( | ) | |||||||||
Impairment of equity investments(2) | ( | ) | |||||||||
Income before income taxes | $ | $ | $ | ||||||||
Capital expenditures | |||||||||||
Media Networks | |||||||||||
Cable Networks | $ | $ | $ | ||||||||
Broadcasting | |||||||||||
Parks, Experiences & Consumer Products | |||||||||||
Domestic | |||||||||||
International | |||||||||||
Studio Entertainment | |||||||||||
Direct-to-Consumer & International | |||||||||||
Corporate | |||||||||||
Total capital expenditures | $ | $ | $ | ||||||||
Depreciation expense | |||||||||||
Media Networks | $ | $ | $ | ||||||||
Parks, Experiences & Consumer Products | |||||||||||
Domestic | |||||||||||
International | |||||||||||
Studio Entertainment | |||||||||||
Direct-to-Consumer & International | |||||||||||
Corporate | |||||||||||
Total depreciation expense | $ | $ | $ | ||||||||
Amortization of intangible assets | |||||||||||
Media Networks | $ | $ | $ | ||||||||
Parks, Experiences & Consumer Products | |||||||||||
Studio Entertainment | |||||||||||
Direct-to-Consumer & International | |||||||||||
Total amortization of intangible assets | $ | $ | $ | ||||||||
2018 | 2017 | 2016 | |||||||||
Identifiable assets(4) | |||||||||||
Media Networks | $ | $ | |||||||||
Parks, Experiences & Consumer Products | |||||||||||
Studio Entertainment | |||||||||||
Direct-to-Consumer & International | |||||||||||
Corporate(5) | |||||||||||
Eliminations | ( | ) | ( | ) | |||||||
Goodwill(6) | |||||||||||
Total consolidated assets | $ | $ | |||||||||
Supplemental revenue data | |||||||||||
Affiliate fees | $ | $ | $ | ||||||||
Advertising | |||||||||||
Retail merchandise, food and beverage | |||||||||||
Theme park admissions | |||||||||||
Revenues | |||||||||||
United States and Canada | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia Pacific | |||||||||||
Latin America and Other | |||||||||||
$ | $ | $ | |||||||||
Segment operating income | |||||||||||
United States and Canada | $ | $ | $ | ||||||||
Europe | |||||||||||
Asia Pacific | |||||||||||
Latin America and Other | |||||||||||
$ | $ | $ | |||||||||
Long-lived assets(7) | |||||||||
United States and Canada | $ | $ | |||||||
Europe | |||||||||
Asia Pacific | |||||||||
Latin America and Other | |||||||||
$ | $ | ||||||||
(1) | Intersegment content transaction are as follows: |
2018 | 2017 | 2016 | |||||||||
Revenues | |||||||||||
Studio Entertainment: | |||||||||||
Content transactions with Media Networks | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Content transactions with Direct-to-Consumer & International | ( | ) | ( | ) | ( | ) | |||||
Media Networks: | |||||||||||
Content transactions with Direct-to-Consumer & International | ( | ) | ( | ) | ( | ) | |||||
Total | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Operating Income | |||||||||||
Studio Entertainment: | |||||||||||
Content transactions with Media Networks | $ | ( | ) | $ | $ | ( | ) | ||||
Media Networks: | |||||||||||
Content transactions with Direct-to-Consumer & International | ( | ) | ( | ) | |||||||
Total | $ | ( | ) | $ | $ | ( | ) | ||||
(2) | Equity in the income of investees included in segment operating income is as follows: |
2018 | 2017 | 2016 | |||||||||
Media Networks | $ | $ | $ | ||||||||
Parks, Experiences and Consumer Products | ( | ) | ( | ) | ( | ) | |||||
Direct-to-Consumer & International | ( | ) | ( | ) | ( | ) | |||||
Equity in the income of investees included in segment operating income | |||||||||||
Impairment of equity investments: | |||||||||||
Vice | ( | ) | |||||||||
Villages Nature | ( | ) | |||||||||
Vice Gain | |||||||||||
Equity in the income (loss) of investees, net | $ | ( | ) | $ | $ | ||||||
(3) | In fiscal 2016, the Company discontinued its Infinity console game business, which is reported in the Parks, Experiences & Consumer Products segment, and recorded a charge (Infinity Charge) primarily to write down inventory. The charge also included severance and other asset impairments. The charge was reported in “Cost of products” in the Consolidated Statement of Income. |
(4) | Equity method investments included in identifiable assets by segment are as follows: |
2018 | 2017 | ||||||
Media Networks | $ | $ | |||||
Parks, Experiences & Consumer Products | |||||||
Studio Entertainment | |||||||
Direct-to-Consumer & International | |||||||
Corporate | |||||||
$ | $ | ||||||
2018 | 2017 | ||||||
Media Networks | $ | $ | |||||
Parks, Experiences & Consumer Products | |||||||
Studio Entertainment | |||||||
Direct-to-Consumer & International | |||||||
Corporate | |||||||
$ | $ | ||||||
(5) | Primarily fixed assets and cash and cash equivalents. |
(6) | See Note 3 for goodwill by segment. |
(7) | Long-lived assets are total assets less the following: current assets, long-term receivables, deferred taxes, financial investments and derivatives. |
2 | Summary of Significant Accounting Policies |
• | Affiliate fees |
• | Advertising revenues |
• | Revenue from the licensing and distribution of film and television properties |
• | Admissions to our theme parks, charges for room nights at hotels and sales of cruise vacation packages |
• | Licensing of intellectual property for use on consumer merchandise, and in published materials and interactive games |
• | Amortization of programming and production costs and participations and residuals costs |
• | Distribution costs |
• | Operating labor |
• | Facilities and infrastructure costs |
• | Food, beverage and merchandise at our retail locations |
• | DVDs and Blu-ray discs |
• | Books, comic books and magazines |
• | Costs of goods sold |
• | Amortization of production, participations and residuals costs |
• | Distribution costs |
• | Operating labor |
• | Retail occupancy costs |
September 29, 2018 | September 30, 2017 | October 1, 2016 | ||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||
Restricted cash included in: | ||||||||||||
Other current assets | ||||||||||||
Other assets | ||||||||||||
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ | $ | $ | |||||||||
Attractions, buildings and improvements | 20 – 40 years | |
Furniture, fixtures and equipment | 3 – 25 years | |
Land improvements | 20 – 40 years | |
Leasehold improvements | Life of lease or asset life if less | |
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
2018 | 2017 | 2016 | ||||||
Weighted average number of common and common equivalent shares outstanding (basic) | ||||||||
Weighted average dilutive impact of Awards | ||||||||
Weighted average number of common and common equivalent shares outstanding (diluted) | ||||||||
Awards excluded from diluted earnings per share | ||||||||
3 | Acquisitions |
Media Networks | Parks and Resorts | Studio Entertainment | Consumer Products & Interactive Media | Parks, Experiences & Consumer Products | Direct-to-Consumer & International | Unallocated | Total | ||||||||||||||||||||||||
Balance at Oct. 1, 2016 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||
Dispositions | |||||||||||||||||||||||||||||||
Other, net | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at Sept. 30, 2017 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||
Dispositions | |||||||||||||||||||||||||||||||
Other, net (1) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at Sept. 29, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Segment recast (2) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at Sept. 30, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
(1) | Other, net primarily represents the allocation of BAMTech goodwill to segments based on the final purchase price allocation and also includes the impact of updates to our initial estimated fair value of intangible assets related to BAMTech. |
(2) | Represents the reallocation of goodwill as a result of the Company recasting its segments as described in Note 1. |
4 | Other Income, net |
2018 | 2017 | 2016 | |||||||||
Gains on sales of real estate and property rights | $ | $ | $ | ||||||||
Settlement of litigation | ( | ) | |||||||||
Gain related to the acquisition of BAMTech | |||||||||||
Other income, net | $ | $ | $ | ||||||||
5 | Investments |
September 29, 2018 | September 30, 2017 | ||||||
Investments, equity basis | $ | $ | |||||
Investments, other | |||||||
$ | $ | ||||||
Results of Operations: | 2018 | 2017 | 2016 | ||||||||
Revenues | $ | $ | $ | ||||||||
Net income | ( | ) | |||||||||
Balance Sheet | September 29, 2018 | September 30, 2017 | October 1, 2016 | ||||||||
Current assets | $ | $ | $ | ||||||||
Non-current assets | |||||||||||
$ | $ | $ | |||||||||
Current liabilities | $ | $ | $ | ||||||||
Non-current liabilities | |||||||||||
Redeemable preferred stock | |||||||||||
Shareholders’ equity | |||||||||||
$ | $ | $ | |||||||||
6 | International Theme Parks |
2018 | 2017 | ||||||
Cash and cash equivalents | $ | $ | |||||
Other current assets | |||||||
Total current assets | |||||||
Parks, resorts and other property | |||||||
Other assets | |||||||
Total assets (1) | $ | $ | |||||
Current liabilities | $ | $ | |||||
Borrowings - long-term | |||||||
Other long-term liabilities | |||||||
Total liabilities (1) | $ | $ | |||||
(1) | The total assets of the Asia Theme Parks were $ |
Revenues | $ | ||
Costs and expenses | ( | ) | |
Equity in the loss of investees | ( | ) | |
7 | Film and Television Costs and Advances |
September 29, 2018 | September 30, 2017 | ||||||
Theatrical film costs | |||||||
Released, less amortization | $ | $ | |||||
Completed, not released | |||||||
In-process | |||||||
In development or pre-production | |||||||
Television costs | |||||||
Released, less amortization | |||||||
Completed, not released | |||||||
In-process | |||||||
In development or pre-production | |||||||
Television programming rights and advances | |||||||
Less current portion | |||||||
Non-current portion | $ | $ | |||||
8 | Borrowings |
2018 | ||||||||||||||||||||
2018 | 2017 | Stated Interest Rate (1) | Pay Floating Interest rate and Cross- Currency Swaps (2) | Effective Interest Rate (3) | Swap Maturities | |||||||||||||||
Commercial paper | $ | $ | $ | % | ||||||||||||||||
U.S. and European medium-term notes (4) | % | % | 2019-2027 | |||||||||||||||||
Foreign currency denominated debt | % | % | 2025 | |||||||||||||||||
Capital Cities/ABC debt | % | % | ||||||||||||||||||
BAMTech acquisition payable | % | % | ||||||||||||||||||
Other (5) | ( | ) | ( | ) | ||||||||||||||||
% | % | |||||||||||||||||||
Asia Theme Parks borrowings | % | % | ||||||||||||||||||
Total borrowings | % | % | ||||||||||||||||||
Less current portion | % | % | ||||||||||||||||||
Total long-term borrowings | $ | $ | $ | |||||||||||||||||
(1) | The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at September 29, 2018; these rates are not necessarily an indication of future interest rates. |
(2) | Amounts represent notional values of interest rate and cross-currency swaps outstanding as of September 29, 2018. |
(3) | The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs. |
(4) | Includes net debt issuance premiums, discounts and costs totaling $ |
(5) | Includes market value adjustments for debt with qualifying hedges, which reduce borrowings by $ |
Committed Capacity | Capacity Used | Unused Capacity | |||||||||
Facility expiring March 2019 | $ | $ | $ | ||||||||
Facility expiring March 2021 | |||||||||||
Facility expiring March 2023 | |||||||||||
Total | $ | $ | $ | ||||||||
Commercial paper with original maturities less than three months, net (1) | Commercial paper with original maturities greater than three months | Total | |||||||||
Balance at Oct. 1, 2016 | $ | $ | $ | ||||||||
Additions | |||||||||||
Payments | ( | ) | ( | ) | |||||||
Other Activity | |||||||||||
Balance at Sept. 30, 2017 | $ | $ | $ | ||||||||
Additions | |||||||||||
Payments | ( | ) | ( | ) | ( | ) | |||||
Other Activity | ( | ) | |||||||||
Balance at Sept. 29, 2018 | $ | $ | $ | ||||||||
Before Asia Theme Parks Consolidation | Asia Theme Parks | Total | |||||||||
2019 | $ | $ | $ | ||||||||
2020 | |||||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
Thereafter | |||||||||||
$ | $ | $ | |||||||||
9 | Income Taxes |
• | Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from |
• | The Company remeasured its U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes will be realized (either |
• | A one-time tax is due on certain accumulated foreign earnings (Deemed Repatriation Tax), which is payable over eight years. The effective tax rate is generally |
• | The Company will generally be eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions that commenced after September 27, 2017 and are placed in service during fiscal 2018 through fiscal 2022. The immediate deduction phases out for assets placed in service in fiscal 2023 through fiscal 2027. |
• | Certain provisions of the Act are not effective for the Company until fiscal 2019 including: |
◦ | The domestic production activity deduction was eliminated effective for the Company’s fiscal 2019. |
◦ | Certain foreign derived income will be taxed in the U.S. at an effective rate of approximately |
◦ | Certain foreign earnings will be taxed at a minimum effective rate of approximately |
Income Before Income Taxes | 2018 | 2017 | 2016 | ||||||||
Domestic (including U.S. exports) | $ | $ | $ | ||||||||
Foreign subsidiaries | |||||||||||
$ | $ | $ | |||||||||
Income Tax Expense/(Benefit) | |||||||||||
Current | |||||||||||
Federal | $ | $ | $ | ||||||||
State | |||||||||||
Foreign (1) | |||||||||||
Deferred | |||||||||||
Federal(2) | ( | ) | |||||||||
State | ( | ) | |||||||||
Foreign | ( | ) | ( | ) | |||||||
( | ) | ||||||||||
$ | $ | $ | |||||||||
Components of Deferred Tax Assets and Liabilities | September 29, 2018 | September 30, 2017 | |||||
Deferred tax assets | |||||||
Net operating losses and tax credit carryforwards | $ | ( | ) | $ | ( | ) | |
Accrued liabilities | ( | ) | ( | ) | |||
Other | ( | ) | ( | ) | |||
Total deferred tax assets | ( | ) | ( | ) | |||
Deferred tax liabilities | |||||||
Depreciable, amortizable and other property | |||||||
Investment in foreign entities | |||||||
Licensing revenues | |||||||
Investment in U.S. entities | |||||||
Other | |||||||
Total deferred tax liabilities | |||||||
Net deferred tax liability before valuation allowance | |||||||
Valuation allowance | |||||||
Net deferred tax liability | $ | $ | |||||
2018 | 2017 | 2016 | ||||||
Federal income tax rate | % | % | % | |||||
State taxes, net of federal benefit | ||||||||
Domestic production activity deduction | ( | ) | ( | ) | ( | ) | ||
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate | ( | ) | ( | ) | ( | ) | ||
Tax Act(1) | ( | ) | ||||||
Other, including tax reserves and related interest | ( | ) | ( | ) | ||||
% | % | % | ||||||
(1) | Reflects the impact from the Deferred Remeasurement, net of the Deemed Repatriation Tax |
2018 | 2017 | 2016 | |||||||||
Balance at the beginning of the year | $ | $ | $ | ||||||||
Increases for current year tax positions | |||||||||||
Increases for prior year tax positions | |||||||||||
Decreases in prior year tax positions | ( | ) | ( | ) | ( | ) | |||||
Settlements with taxing authorities | ( | ) | ( | ) | ( | ) | |||||
Balance at the end of the year | $ | $ | $ | ||||||||
10 | Pension and Other Benefit Programs |
Pension Plans | Postretirement Medical Plans | ||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | ||||||||||||
Projected benefit obligations | |||||||||||||||
Beginning obligations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Service cost | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest cost | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Actuarial gain | |||||||||||||||
Plan amendments and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Benefits paid | |||||||||||||||
Ending obligations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Fair value of plans’ assets | |||||||||||||||
Beginning fair value | $ | $ | $ | $ | |||||||||||
Actual return on plan assets | |||||||||||||||
Contributions | |||||||||||||||
Benefits paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Expenses and other | ( | ) | ( | ) | |||||||||||
Ending fair value | $ | $ | $ | $ | |||||||||||
Underfunded status of the plans | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Amounts recognized in the balance sheet | |||||||||||||||
Non-current assets | $ | $ | $ | $ | |||||||||||
Current liabilities | ( | ) | ( | ) | |||||||||||
Non-current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
$ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Pension Plans | Postretirement Medical Plans | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Amortization of prior year service costs | ( | ) | |||||||||||||||||||||
Recognized net actuarial loss | |||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Key assumptions are as follows: | |||||||||||||||||
Pension Plans | Postretirement Medical Plans | ||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||
Discount rate used to determine the fiscal year end benefit obligation | % | % | % | % | % | % | |||||||||||
Discount rate used to determine the interest cost component of net periodic benefit cost | % | % | % | % | % | % | |||||||||||
Rate of return on plan assets | % | % | % | % | % | % | |||||||||||
Weighted average rate of compensation increase to determine the fiscal year end benefit obligation | % | % | % | n/a | n/a | n/a | |||||||||||
Year 1 increase in cost of benefits | n/a | n/a | n/a | % | % | % | |||||||||||
Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | % | % | % | |||||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | n/a | 2032 | 2031 | 2030 | |||||||||||
Pension Plans | Postretirement Medical Plans | Total | |||||||||
Prior service cost | $ | ( | ) | $ | $ | ( | ) | ||||
Net actuarial loss | ( | ) | ( | ) | ( | ) | |||||
Total amounts included in AOCI | ( | ) | ( | ) | ( | ) | |||||
Prepaid / (accrued) pension cost | ( | ) | |||||||||
Net balance sheet liability | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Pension Plans | Postretirement Medical Plans | Total | |||||||||
Prior service cost | $ | ( | ) | $ | $ | ( | ) | ||||
Net actuarial loss | ( | ) | ( | ) | |||||||
Total | $ | ( | ) | $ | $ | ( | ) | ||||
Asset Class | Minimum | Maximum | ||||
Equity investments | % | % | ||||
Fixed income investments | % | % | ||||
Alternative investments | % | % | ||||
Cash & money market funds | % | % | ||||
As of September 29, 2018 | |||||||||||||||
Description | Level 1 | Level 2 | Total | Plan Asset Mix | |||||||||||
Cash | $ | $ | $ | % | |||||||||||
Common and preferred stocks(1) | % | ||||||||||||||
Mutual funds | % | ||||||||||||||
Government and federal agency bonds, notes and MBS | % | ||||||||||||||
Corporate bonds | % | ||||||||||||||
Other mortgage- and asset-backed securities | % | ||||||||||||||
Derivatives and other, net | ( | ) | % | ||||||||||||
Total investments in the fair value hierarchy | $ | $ | $ | ||||||||||||
Assets valued at NAV as a practical expedient: | |||||||||||||||
Common collective funds | % | ||||||||||||||
Alternative investments | % | ||||||||||||||
Money market funds and other | % | ||||||||||||||
Total investments at fair value | $ | % | |||||||||||||
As of September 30, 2017 | |||||||||||||||
Description | Level 1 | Level 2 | Total | Plan Asset Mix | |||||||||||
Cash | $ | $ | $ | % | |||||||||||
Common and preferred stocks(1) | % | ||||||||||||||
Mutual funds | % | ||||||||||||||
Government and federal agency bonds, notes and MBS | % | ||||||||||||||
Corporate bonds | % | ||||||||||||||
Other mortgage- and asset-backed securities | % | ||||||||||||||
Derivatives and other, net | % | ||||||||||||||
Total investments in the fair value hierarchy | $ | $ | $ | ||||||||||||
Assets valued at NAV as a practical expedient: | |||||||||||||||
Common collective funds | % | ||||||||||||||
Alternative investments | % | ||||||||||||||
Money market funds and other | % | ||||||||||||||
Total investments at fair value | $ | % | |||||||||||||
(1) | Includes |
Pension Plans | Postretirement Medical Plans(1) | ||||||
2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
2024 – 2028 | |||||||
(1) |
Equity Securities | % | to | % | ||
Debt Securities | % | to | % | ||
Alternative Investments | % | to | % | ||
Discount Rate | Expected Long-Term Rate of Return On Assets | Assumed Healthcare Cost Trend Rate | |||||||||||||||||
Increase/(decrease) | Benefit Expense | Projected Benefit Obligations | Benefit Expense | Net Periodic Postretirement Medical Cost | Projected Benefit Obligations | ||||||||||||||
1 ppt decrease | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||
1 ppt increase | ( | ) | ( | ) | ( | ) | |||||||||||||
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. |
• | If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers. |
• | If the Company chooses to stop participating in these multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan. |
2018 | 2017 | 2016 | |||||||||
Pension plans | $ | $ | $ | ||||||||
Health & welfare plans | |||||||||||
Total contributions | $ | $ | $ | ||||||||
11 | Equity |
Per Share | Total Paid | Payment Timing | Related to Fiscal Period | |||
$ | $ | Fourth Quarter of Fiscal 2018 | First Half 2018 | |||
$ | $ | Second Quarter of Fiscal 2018 | Second Half 2017 | |||
$ | $ | Fourth Quarter of Fiscal 2017 | First Half 2017 | |||
$ | $ | Second Quarter of Fiscal 2017 | Second Half 2016 | |||
$ | $ | Fourth Quarter of Fiscal 2016 | First Half 2016 | |||
$ | $ | Second Quarter of Fiscal 2016 | Second Half 2015 | |||
Fiscal year | Shares acquired | Total paid | ||
2018 | $ | |||
2017 | $ | |||
2016 | $ | |||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
Investments | Cash Flow Hedges | ||||||||||||||||||
AOCI, before tax | |||||||||||||||||||
Balance at October 3, 2015 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | |||||||||||||||||
Balance at October 1, 2016 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | |||||||||||||||
Reclassifications of net (gains) losses to net income | ( | ) | ( | ) | |||||||||||||||
Balance at September 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of net (gains) losses to net income | |||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
Investments | Cash Flow Hedges | ||||||||||||||||||
Tax on AOCI | |||||||||||||||||||
Balance at October 3, 2015 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | |||||||||||||||||
Balance at October 1, 2016 | $ | ( | ) | $ | $ | $ | $ | ||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Reclassifications of net (gains) losses to net income | ( | ) | ( | ) | |||||||||||||||
Balance at September 30, 2017 | $ | ( | ) | $ | $ | $ | $ | ||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Reclassifications of net (gains) losses to net income | ( | ) | ( | ) | ( | ) | |||||||||||||
Balance at September 29, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
Investments | Cash Flow Hedges | ||||||||||||||||||
AOCI, after tax | |||||||||||||||||||
Balance at October 3, 2015 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | |||||||||||||||||
Balance at October 1, 2016 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | |||||||||||||||
Reclassifications of net (gains) losses to net income | ( | ) | ( | ) | |||||||||||||||
Balance at September 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of net (gains) losses to net income | |||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Gains/(losses) in net income: | Affected line item in the Consolidated Statements of Income: | 2018 | 2017 | 2016 | ||||||||||
Investments, net | Interest expense, net | $ | $ | $ | ||||||||||
Estimated tax | Income taxes | ( | ) | |||||||||||
Cash flow hedges | Primarily revenue | ( | ) | |||||||||||
Estimated tax | Income taxes | ( | ) | ( | ) | |||||||||
( | ) | |||||||||||||
Pension and postretirement medical expense | Cost and expenses | ( | ) | ( | ) | ( | ) | |||||||
Estimated tax | Income taxes | |||||||||||||
( | ) | ( | ) | ( | ) | |||||||||
Total reclassifications for the period | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
12 | Equity-Based Compensation |
2018 | 2017 | 2016 | ||||||
Risk-free interest rate | % | % | % | |||||
Expected volatility | % | % | % | |||||
Dividend yield | % | % | % | |||||
Termination rate | % | % | % | |||||
Exercise multiple | ||||||||
2018 | 2017 | 2016 | |||||||||
Stock option | $ | $ | $ | ||||||||
RSUs | |||||||||||
Total equity-based compensation expense (1) | |||||||||||
Tax impact | ( | ) | ( | ) | ( | ) | |||||
Reduction in net income | $ | $ | $ | ||||||||
Equity-based compensation expense capitalized during the period | $ | $ | $ | ||||||||
Tax benefit reported in cash flow from financing activities (2) | n/a | n/a | $ | ||||||||
(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. |
(2) | The amount for fiscal 2018 and 2017 is not applicable as the Company adopted new accounting guidance in fiscal 2017. |
2018 | ||||||
Shares | Weighted Average Exercise Price | |||||
Outstanding at beginning of year | $ | |||||
Awards forfeited | ( | ) | ||||
Awards granted | ||||||
Awards exercised | ( | ) | ||||
Outstanding at end of year | $ | |||||
Exercisable at end of year | $ | |||||
Vested | ||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Years of Contractual Life | |||||||||||||||
$ | — | — | $ | 45 | $ | |||||||||||||
$ | 46 | — | $ | 60 | ||||||||||||||
$ | 61 | — | $ | 90 | ||||||||||||||
$ | 91 | — | $ | 115 | ||||||||||||||
Expected to Vest | ||||||||||||||||||
Range of Exercise Prices | Number of Options (1) | Weighted Average Exercise Price | Weighted Average Remaining Years of Contractual Life | |||||||||||||||
$ | 90 | — | $ | 105 | $ | |||||||||||||
$ | 106 | — | $ | 110 | ||||||||||||||
$ | 111 | — | $ | 115 | ||||||||||||||
(1) | Number of options expected to vest is total unvested options less estimated forfeitures. |
2018 | ||||||
Units | Weighted Average Grant-Date Fair Value | |||||
Unvested at beginning of year | $ | |||||
Granted (1) | ||||||
Vested | ( | ) | ||||
Forfeited | ( | ) | ||||
Unvested at end of year (2) | $ | |||||
13 | Detail of Certain Balance Sheet Accounts |
Current receivables | September 29, 2018 | September 30, 2017 | ||||||
Accounts receivable | $ | $ | ||||||
Other | ||||||||
Allowance for doubtful accounts | ( | ) | ( | ) | ||||
$ | $ | |||||||
Other current assets | ||||||||
Prepaid expenses | $ | $ | ||||||
Other | ||||||||
$ | $ | |||||||
Parks, resorts and other property | ||||||||
Attractions, buildings and improvements | $ | $ | ||||||
Furniture, fixtures and equipment | ||||||||
Land improvements | ||||||||
Leasehold improvements | ||||||||
Accumulated depreciation | ( | ) | ( | ) | ||||
Projects in progress | ||||||||
Land | ||||||||
$ | $ | |||||||
Intangible assets | ||||||||
Character/franchise intangibles and copyrights | $ | $ | ||||||
Other amortizable intangible assets | ||||||||
Accumulated amortization | ( | ) | ( | ) | ||||
Net amortizable intangible assets | ||||||||
FCC licenses | ||||||||
Trademarks | ||||||||
Other indefinite lived intangible assets | ||||||||
$ | $ | |||||||
Other non-current assets | September 29, 2018 | September 30, 2017 | ||||||
Receivables | $ | $ | ||||||
Prepaid expenses | ||||||||
Other | ||||||||
$ | $ | |||||||
Accounts payable and other accrued liabilities | ||||||||
Accounts payable | $ | $ | ||||||
Payroll and employee benefits | ||||||||
Other | ||||||||
$ | $ | |||||||
Other long-term liabilities | ||||||||
Pension and postretirement medical plan liabilities | $ | $ | ||||||
Other | ||||||||
$ | $ | |||||||
14 | Commitments and Contingencies |
Broadcast Programming | Operating Leases | Other | Total | ||||||||||||
2019 | $ | $ | $ | $ | |||||||||||
2020 | |||||||||||||||
2021 | |||||||||||||||
2022 | |||||||||||||||
2023 | |||||||||||||||
Thereafter | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total minimum obligations | |||
Less amount representing interest | ( | ) | |
Present value of net minimum obligations | |||
Less current portion | ( | ) | |
Long-term portion | $ | ||
15 | Fair Value Measurement |
Fair Value Measurement at September 29, 2018 | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Investments | $ | $ | $ | $ | ||||||||||||
Derivatives | ||||||||||||||||
Interest rate | ||||||||||||||||
Foreign exchange | ||||||||||||||||
Other | ||||||||||||||||
Liabilities | ||||||||||||||||
Derivatives | ||||||||||||||||
Interest rate | ( | ) | ( | ) | ||||||||||||
Foreign exchange | ( | ) | ( | ) | ||||||||||||
Total recorded at fair value | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Fair value of borrowings | $ | $ | $ | $ | ||||||||||||
Fair Value Measurement at September 30, 2017 | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Investments | $ | $ | $ | $ | ||||||||||||
Derivatives | ||||||||||||||||
Interest rate | ||||||||||||||||
Foreign exchange | ||||||||||||||||
Other | ||||||||||||||||
Liabilities | ||||||||||||||||
Derivatives | ||||||||||||||||
Interest rate | ( | ) | ( | ) | ||||||||||||
Foreign exchange | ( | ) | ( | ) | ||||||||||||
Total recorded at fair value | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Fair value of borrowings | $ | $ | $ | $ | ||||||||||||
16 | Derivative Instruments |
As of September 29, 2018 | |||||||||||||||
Current Assets | Other Assets | Other Current Liabilities | Other Long- Term Liabilities | ||||||||||||
Derivatives designated as hedges | |||||||||||||||
Foreign exchange | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Interest rate | ( | ) | |||||||||||||
Other | |||||||||||||||
Derivatives not designated as hedges | |||||||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Interest Rate | ( | ) | |||||||||||||
Gross fair value of derivatives | ( | ) | ( | ) | |||||||||||
Counterparty netting | ( | ) | ( | ) | |||||||||||
Cash collateral (received)/paid | |||||||||||||||
Net derivative positions | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
As of September 30, 2017 | |||||||||||||||
Current Assets | Other Assets | Other Current Liabilities | Other Long- Term Liabilities | ||||||||||||
Derivatives designated as hedges | |||||||||||||||
Foreign exchange | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Interest rate | ( | ) | |||||||||||||
Other | |||||||||||||||
Derivatives not designated as hedges | |||||||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Interest Rate | ( | ) | |||||||||||||
Gross fair value of derivatives | ( | ) | ( | ) | |||||||||||
Counterparty netting | ( | ) | ( | ) | |||||||||||
Cash collateral (received)/paid | ( | ) | ( | ) | |||||||||||
Net derivative positions | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
2018 | 2017 | 2016 | |||||||||
Gain (loss) on interest rate swaps | $ | ( | ) | $ | ( | ) | $ | ||||
Gain (loss) on hedged borrowings | ( | ) | |||||||||
Costs and Expenses | Interest expense, net | Income Tax Expense | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Net gains (losses) on foreign currency denominated assets and liabilities | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Net gains (losses) on foreign exchange risk management contracts not designated as hedges | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Net gains (losses) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||
17 | Restructuring and Impairment Charges |
18 | New Accounting Pronouncements |
• | For television and film content licensing agreements with multiple availability windows with the same licensee, the Company will defer more revenues to future windows than is currently deferred. |
• | For licenses of character images, brands and trademarks subject to minimum guaranteed license fees, we currently recognize the difference between the minimum guaranteed amount and actual royalties earned from licensee merchandise sales (“shortfalls”) at the end of the contract period. Under the new guidance, projected guarantee shortfalls will be recognized straight-line over the remaining license period once an expected shortfall is identified. |
• | For licenses that include multiple television and film titles subject to minimum guaranteed license fees that are recoupable against the licensee’s aggregate underlying sales from all titles, the Company will allocate the minimum guaranteed license fee to each title and recognize the allocated license fee as revenue when the title is made available to the customer. License fees in excess of the allocated by-title minimum guarantee are deferred until the aggregate contractual minimum guarantee has been exceeded and thereafter recognized as earned based on the licensee’s underlying sales. Under current guidance, an upfront allocation of the minimum guarantee is not required as license fees are recognized as earned based on the licensee’s underlying sales with any shortfalls recognized at the end of the contract period. |
• | For renewals or extensions of license agreements for television and film content, we will recognize revenue when the licensed content becomes available under the renewal or extension, instead of when the agreement is renewed or extended. |
19 | Condensed Consolidating Financial Information |
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
Revenues | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Costs and expenses | |||||||||||||||||||
Operating expenses | ( | ) | ( | ) | |||||||||||||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||||||||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||||||||||
Restructuring and impairment charges | ( | ) | ( | ) | |||||||||||||||
Allocations to non-guarantor subsidiaries | ( | ) | |||||||||||||||||
Other income, net | |||||||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||||||
Equity in the income (loss) of investees, net | ( | ) | ( | ) | |||||||||||||||
Income before taxes | ( | ) | |||||||||||||||||
Income taxes | ( | ) | ( | ) | |||||||||||||||
Earnings from subsidiary entities | ( | ) | |||||||||||||||||
Consolidated net income | ( | ) | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||||||
Net income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Comprehensive income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
Revenues | $ | $ | $ | $ | $ | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Operating expenses | ( | ) | ( | ) | |||||||||||||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||||||||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||||||||||
Restructuring and impairment charges | ( | ) | ( | ) | |||||||||||||||
Allocations to non-guarantor subsidiaries | ( | ) | |||||||||||||||||
Other income, net | ( | ) | |||||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||||||
Equity in the income (loss) of investees, net | |||||||||||||||||||
Income before taxes | ( | ) | |||||||||||||||||
Income taxes | ( | ) | ( | ) | |||||||||||||||
Earnings from subsidiary entities | ( | ) | |||||||||||||||||
Consolidated net income | ( | ) | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||||||
Net income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Comprehensive income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
Revenues | $ | $ | $ | $ | $ | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Operating expenses | ( | ) | ( | ) | |||||||||||||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||||||||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||||||||||
Restructuring and impairment charges | ( | ) | ( | ) | |||||||||||||||
Allocations to non-guarantor subsidiaries | ( | ) | |||||||||||||||||
Other income, net | ( | ) | |||||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||||||
Equity in the income (loss) of investees, net | |||||||||||||||||||
Income before taxes | ( | ) | |||||||||||||||||
Income taxes | ( | ) | ( | ) | |||||||||||||||
Earnings from subsidiary entities | ( | ) | |||||||||||||||||
Consolidated net income | ( | ) | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||||||
Net income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Comprehensive income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Receivables, net | |||||||||||||||||||
Inventories | |||||||||||||||||||
Television costs and advances | |||||||||||||||||||
Other current assets | |||||||||||||||||||
Total current assets | |||||||||||||||||||
Film and television costs | |||||||||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||||||
Other investments | |||||||||||||||||||
Parks, resorts and other property, net | |||||||||||||||||||
Intangible assets, net | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Intercompany receivables | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and other accrued liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Current portion of borrowings | |||||||||||||||||||
Deferred revenues and other | |||||||||||||||||||
Total current liabilities | |||||||||||||||||||
Non-current liabilities | |||||||||||||||||||
Borrowings | $ | $ | $ | $ | $ | ||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Intercompany payables | ( | ) | |||||||||||||||||
Total non-current liabilities | ( | ) | |||||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||||
Total Disney Shareholders’ equity | ( | ) | |||||||||||||||||
Noncontrolling interests | |||||||||||||||||||
Total equity | ( | ) | |||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Receivables, net | |||||||||||||||||||
Inventories | |||||||||||||||||||
Television costs and advances | |||||||||||||||||||
Other current assets | |||||||||||||||||||
Total current assets | |||||||||||||||||||
Film and television costs | |||||||||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||||||
Other investments | |||||||||||||||||||
Parks, resorts and other property, net | |||||||||||||||||||
Intangible assets, net | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Intercompany receivables | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and other accrued liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Current portion of borrowings | |||||||||||||||||||
Deferred revenues and other | |||||||||||||||||||
Total current liabilities | |||||||||||||||||||
Non-current liabilities | |||||||||||||||||||
Borrowings | $ | $ | $ | $ | $ | ||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Intercompany payables | ( | ) | |||||||||||||||||
Total non-current liabilities | ( | ) | |||||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||||
Total Disney Shareholders’ equity | ( | ) | |||||||||||||||||
Noncontrolling interests | |||||||||||||||||||
Total equity | ( | ) | |||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Cash provided by operations | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | ( | ) | |||||||||||||
Acquisitions | ( | ) | ( | ) | |||||||||||||||
Intercompany investing activities, net | ( | ) | |||||||||||||||||
Other | |||||||||||||||||||
Cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Commercial paper, net | ( | ) | ( | ) | |||||||||||||||
Borrowings | |||||||||||||||||||
Reduction of borrowings | ( | ) | ( | ) | ( | ) | |||||||||||||
Dividends | ( | ) | ( | ) | ( | ) | |||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||
Intercompany financing, net | ( | ) | ( | ) | |||||||||||||||
Contributions from noncontrolling interest holders | |||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash used in financing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
Impact of exchange rates on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||||||||||||
Change in cash, cash equivalents and restricted cash | ( | ) | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ | $ | $ | $ | ||||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Cash provided by operations | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | ( | ) | |||||||||||||
Acquisitions | ( | ) | ( | ) | |||||||||||||||
Intercompany investing activities, net | ( | ) | |||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||
Cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Commercial paper, net | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Reduction of borrowings | ( | ) | ( | ) | ( | ) | |||||||||||||
Dividends | ( | ) | ( | ) | ( | ) | |||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||
Intercompany financing, net | ( | ) | ( | ) | |||||||||||||||
Contributions from noncontrolling interest holders | |||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash used in financing activities | ( | ) | ( | ) | |||||||||||||||
Impact of exchange rates on cash, cash equivalents and restricted cash | |||||||||||||||||||
Change in cash, cash equivalents and restricted cash | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ | $ | $ | $ | ||||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Cash provided by operations | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | ( | ) | |||||||||||||
Acquisitions | ( | ) | ( | ) | |||||||||||||||
Intercompany investing activities, net | ( | ) | |||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Commercial paper, net | ( | ) | ( | ) | |||||||||||||||
Borrowings | |||||||||||||||||||
Reduction of borrowings | ( | ) | ( | ) | ( | ) | |||||||||||||
Dividends | ( | ) | ( | ) | ( | ) | |||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||
Intercompany financing, net | ( | ) | ( | ) | |||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash used in financing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
Impact of exchange rates on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||||||||||||
Change in cash, cash equivalents and restricted cash | ( | ) | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ | $ | $ | $ | ||||||||||||||
(unaudited) | Q1 | Q2 | Q3 | Q4 | |||||||||||||
2018 | |||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||
Segment operating income (5) | |||||||||||||||||
Net income | |||||||||||||||||
Net income attributable to Disney | |||||||||||||||||
Earnings per share: | |||||||||||||||||
Diluted | $ | (1) | $ | (2) | $ | (3) | $ | (4) | |||||||||
Basic | |||||||||||||||||
2017 | |||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||
Segment operating income (5) | |||||||||||||||||
Net income | |||||||||||||||||
Net income attributable to Disney | |||||||||||||||||
Earnings per share: | |||||||||||||||||
Diluted | $ | $ | $ | (3) | $ | (4) | |||||||||||
Basic | |||||||||||||||||
(1) | Results for the first quarter of fiscal 2018 included an estimated net benefit from the Deferred Remeasurement, partially offset by the Deemed Repatriation Tax as a result of the Tax Act (Tax Act Estimate), which had a favorable impact of $ |
(2) | Results for the second quarter of fiscal 2018 included a net benefit of updating prior-period Tax Act estimate, which had a favorable impact of $ |
(3) | Results for the third quarter of fiscal 2018 included a net benefit of updating prior-period Tax Act estimate, which had a favorable impact of $ |
(4) | Results for the fourth quarter of fiscal 2018 included a gain in connection with the sale of real estate, which had a favorable impact of $ |
(5) | Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests. |
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Revenues: | |||||||
Services | $ | $ | |||||
Products | |||||||
Total revenues | |||||||
Costs and expenses: | |||||||
Cost of services (exclusive of depreciation and amortization) | ( | ) | ( | ) | |||
Cost of products (exclusive of depreciation and amortization) | ( | ) | ( | ) | |||
Selling, general, administrative and other | ( | ) | ( | ) | |||
Depreciation and amortization | ( | ) | ( | ) | |||
Total costs and expenses | ( | ) | ( | ) | |||
Restructuring and impairment charges | ( | ) | |||||
Other income | |||||||
Interest expense, net | ( | ) | ( | ) | |||
Equity in the income of investees | |||||||
Income before income taxes | |||||||
Income taxes | ( | ) | |||||
Net income | |||||||
Less: Net (income) loss attributable to noncontrolling interests | ( | ) | |||||
Net income attributable to The Walt Disney Company (Disney) | $ | $ | |||||
Earnings per share attributable to Disney: | |||||||
Diluted | $ | $ | |||||
Basic | $ | $ | |||||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Diluted | |||||||
Basic | |||||||
Dividends declared per share | $ | $ | |||||
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Net income | $ | $ | |||||
Other comprehensive income/(loss), net of tax: | |||||||
Market value adjustments for investments | ( | ) | |||||
Market value adjustments for hedges | ( | ) | |||||
Pension and postretirement medical plan adjustments | |||||||
Foreign currency translation and other | ( | ) | |||||
Other comprehensive income | |||||||
Comprehensive income | |||||||
Net (income) loss attributable to noncontrolling interests, including redeemable noncontrolling interests | ( | ) | |||||
Other comprehensive (income) attributable to noncontrolling interests | ( | ) | ( | ) | |||
Comprehensive income attributable to Disney | $ | $ | |||||
December 29, 2018 | September 29, 2018 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Receivables | |||||||
Inventories | |||||||
Television costs and advances | |||||||
Other current assets | |||||||
Total current assets | |||||||
Film and television costs | |||||||
Investments | |||||||
Parks, resorts and other property | |||||||
Attractions, buildings and equipment | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Projects in progress | |||||||
Land | |||||||
Intangible assets, net | |||||||
Goodwill | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and other accrued liabilities | $ | $ | |||||
Current portion of borrowings | |||||||
Deferred revenue and other | |||||||
Total current liabilities | |||||||
Borrowings | |||||||
Deferred income taxes | |||||||
Other long-term liabilities | |||||||
Commitments and contingencies (Note 12) | |||||||
Redeemable noncontrolling interests | |||||||
Equity | |||||||
Preferred stock | |||||||
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 2.9 billion shares | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Treasury stock, at cost, 1.4 billion shares | ( | ) | ( | ) | |||
Total Disney Shareholders’ equity | |||||||
Noncontrolling interests | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ | |||||
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Depreciation and amortization | |||||||
Deferred income taxes | ( | ) | |||||
Equity in the income of investees | ( | ) | ( | ) | |||
Cash distributions received from equity investees | |||||||
Net change in film and television costs and advances | |||||||
Equity-based compensation | |||||||
Other | |||||||
Changes in operating assets and liabilities: | |||||||
Receivables | ( | ) | ( | ) | |||
Inventories | |||||||
Other assets | ( | ) | |||||
Accounts payable and other liabilities | ( | ) | ( | ) | |||
Income taxes | |||||||
Cash provided by operations | |||||||
INVESTING ACTIVITIES | |||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | |||
Other | ( | ) | ( | ) | |||
Cash used in investing activities | ( | ) | ( | ) | |||
FINANCING ACTIVITIES | |||||||
Commercial paper borrowings/(payments), net | ( | ) | |||||
Borrowings | |||||||
Reduction of borrowings | ( | ) | |||||
Repurchases of common stock | ( | ) | |||||
Proceeds from exercise of stock options | |||||||
Other | ( | ) | ( | ) | |||
Cash used in financing activities | ( | ) | ( | ) | |||
Impact of exchange rates on cash, cash equivalents and restricted cash | ( | ) | |||||
Change in cash, cash equivalents and restricted cash | |||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||
Quarter Ended | |||||||||||||||||||||||||||||||
Equity Attributable to Disney | |||||||||||||||||||||||||||||||
Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Disney Equity | Non-controlling Interests (1) | Total Equity | ||||||||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Comprehensive income | — | — | — | ( | ) | ||||||||||||||||||||||||||
Equity compensation activity | — | — | — | — | |||||||||||||||||||||||||||
Dividends | — | — | ( | ) | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||
Contributions | — | — | — | — | — | — | |||||||||||||||||||||||||
Adoption of new accounting standards: | |||||||||||||||||||||||||||||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | — | — | ( | ) | — | — | — | — | |||||||||||||||||||||||
Intra-Entity Transfers of Assets Other Than Inventory | — | — | — | — | — | ||||||||||||||||||||||||||
Revenues from Contracts with Customers | — | — | ( | ) | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||
Other | — | — | ( | ) | — | — | |||||||||||||||||||||||||
Distributions and other | — | — | — | — | ( | ) | |||||||||||||||||||||||||
Balance at December 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Balance at September 30, 2017 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
Comprehensive income | — | — | — | ||||||||||||||||||||||||||||
Equity compensation activity | — | — | — | — | |||||||||||||||||||||||||||
Common stock repurchases | ( | ) | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends | — | — | ( | ) | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||
Distributions and other | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at December 30, 2017 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
(1) | Excludes redeemable noncontrolling interest |
1. | Principles of Consolidation |
2. | Description of Business and Segment Information |
• | Media Networks; |
• | Parks, Experiences & Consumer Products; |
• | Studio Entertainment; and |
• | Direct-to-Consumer & International |
• | Significant operations: |
◦ | Disney, ESPN and Freeform branded domestic cable networks |
◦ | ABC branded broadcast television network and eight owned domestic television stations |
◦ | Television programming, production and distribution |
◦ | A |
• | Significant revenues: |
◦ | Affiliate fees - Fees charged to multi-channel video programming distributors (i.e. cable, satellite, telecommunications and digital over-the-top (e.g. Hulu, YouTube TV) service providers) (“MVPDs”) and to television stations affiliated with the ABC Network for the right to deliver our programming to their customers |
◦ | Advertising - Sales of ad time/space on our domestic networks and related platforms, except non-ratings-based advertising on digital platforms (“ratings-based ad sales”), and the sale of time on our domestic television stations. Ratings-based ad sales are generally determined using viewership measured with Nielsen ratings. Non-ratings-based advertising on digital platforms will be reported by DTCI as discussed in the DTCI section |
◦ | TV/SVOD distribution - Licensing fees and other revenues for the right to use our television programs and productions and content transactions with other Company segments (“program sales”) |
• | Significant expenses: |
◦ | Operating expenses consisting primarily of programming and production costs, participations and residuals expense, technical support costs, operating labor, and distribution costs |
◦ | Selling, general and administrative costs |
◦ | Depreciation and amortization |
• | Significant operations: |
◦ | Parks & Experiences: |
▪ | Theme parks and resorts, which include: Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; and |
▪ | Disney Cruise Line, Disney Vacation Club and Aulani, a Disney Resort & Spa in Hawaii |
◦ | Consumer Products: |
▪ | Licensing of our trade names, characters, visual, literary and other intellectual properties to various manufacturers, game developers, publishers and retailers throughout the world |
▪ | Sale of branded merchandise through retail, online and wholesale businesses, and development and publishing of books, magazines, comic books and games. As of the end of fiscal 2018, the Company had substantially exited the vertical games development business |
• | Significant revenues: |
◦ | Theme park admissions - Sales of tickets for admission to our theme parks |
◦ | Parks & Experiences merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts and cruise ships |
◦ | Resorts and vacations - Sales of room nights at hotels, sales of cruise vacations and sales and rentals of vacation club properties |
◦ | Merchandise licensing and retail |
▪ | Merchandise licensing - Royalties from intellectual property licensing |
▪ | Retail - Sales of merchandise at The Disney Stores and through branded internet shopping sites, as well as, to wholesalers (including sales of published materials and games) |
◦ | Parks licensing and other - Revenues from sponsorships and co-branding opportunities, real estate rent and sales, and royalties from Tokyo Disney Resort |
• | Significant expenses: |
◦ | Operating expenses consisting primarily of operating labor, costs of goods sold, infrastructure costs, supplies, commissions and entertainment offerings. Infrastructure costs include information systems expense, repairs and maintenance, utilities and fuel, property taxes, retail occupancy costs, insurance, and transportation |
◦ | Selling, general and administrative costs |
◦ | Depreciation and amortization |
• | Significant operations: |
◦ | Motion picture production and distribution under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm and Touchstone banners |
◦ | Development, production and licensing of live entertainment events on Broadway and around the world (“Stage plays”) |
• | Significant revenues: |
◦ | Theatrical distribution - Rentals from licensing our motion pictures to theaters |
◦ | Home entertainment - Sale of our motion pictures to retailers and distributors in physical (DVD and Blu-ray) and electronic formats |
◦ | TV/SVOD distribution and other - Licensing fees and other revenue for the right to use our motion picture productions, content transactions with other Company segments, ticket sales from stage plays and fees from licensing our intellectual properties for use in live entertainment productions |
• | Significant expenses: |
◦ | Operating expenses consisting primarily of amortization of production, participations and residuals costs, distribution costs and costs of sales |
◦ | Selling, general and administrative costs |
◦ | Depreciation and amortization |
• | Significant operations: |
◦ | Disney and ESPN branded international television networks and channels (“International Channels”) |
◦ | Direct-to-consumer (DTC) businesses: |
▪ | ESPN+ streaming service, which was launched in April 2018 |
▪ | Disney+ streaming service, which we plan to launch in late 2019 |
◦ | Other Company branded digital content distribution platforms and services |
◦ | BAMTech LLC (BAMTech) (owned |
◦ | Equity investments: |
▪ | A |
▪ | A |
• | Significant revenues: |
◦ | Affiliate fees - Fees charged to MVPDs for the right to deliver our International Channels to their customers |
◦ | Advertising - Sales of ad time/space on our International Channels. Sales of non-ratings based ad time/space on digital platforms (“addressable ad sales”). In general, addressable ad sales are delivered using technology that allows for dynamic insertion of advertisements into video content, which can be targeted to specific viewer groups |
◦ | Subscription fees and other - Fees charged to customers/subscribers for our DTC streaming and other services and fees charged for streaming technology services |
• | Significant expenses: |
◦ | Operating expenses consisting primarily of programming and production costs (including programming, production and branded digital content obtained from other Company segments), technical support costs, operating labor and distribution costs |
◦ | Selling, general and administrative costs |
◦ | Depreciation and amortization |
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Revenues (1): | |||||||
Media Networks | $ | $ | |||||
Parks, Experiences & Consumer Products | |||||||
Studio Entertainment | |||||||
Direct-to-Consumer & International | |||||||
Eliminations(2) | ( | ) | ( | ) | |||
$ | $ | ||||||
Segment operating income (1): | |||||||
Media Networks | $ | $ | |||||
Parks, Experiences & Consumer Products | |||||||
Studio Entertainment | |||||||
Direct-to-Consumer & International | ( | ) | ( | ) | |||
Eliminations | |||||||
$ | $ | ||||||
(1) | Studio Entertainment revenues and operating income include an allocation of Parks, Experiences & Consumer Products revenues, which is meant to reflect royalties on sales of merchandise based on film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Parks, Experiences & Consumer Products revenues and operating income was $ |
(2) | Intersegment content transactions are as follows: |
Quarter Ended | |||||||
(in millions) | December 29, 2018 | December 30, 2017 | |||||
Revenues | |||||||
Studio Entertainment: | |||||||
Content transactions with Media Networks | $ | ( | ) | $ | ( | ) | |
Content transactions with Direct-to-Consumer & International | ( | ) | ( | ) | |||
Media Networks: | |||||||
Content transactions with Direct-to-Consumer & International | ( | ) | ( | ) | |||
Total revenues | $ | ( | ) | $ | ( | ) | |
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Media Networks | $ | $ | |||||
Parks, Experiences & Consumer Products | ( | ) | ( | ) | |||
Direct-to-Consumer & International | ( | ) | ( | ) | |||
Equity in the income / (loss) of investees | $ | $ | |||||
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Segment operating income | $ | $ | |||||
Corporate and unallocated shared expenses | ( | ) | ( | ) | |||
Restructuring and impairment charges | ( | ) | |||||
Other income | |||||||
Interest expense, net | ( | ) | ( | ) | |||
Income before income taxes | $ | $ | |||||
3. | Revenues |
• | For television and film content licensing agreements with multiple availability windows with the same licensee, the Company now defers more revenue to future windows than under the previous accounting guidance. |
• | For licenses of character images, brands and trademarks with minimum guaranteed license fees, the excess of the minimum guaranteed amount over actual amounts earned based on a percentage of the licensee’s underlying sales (“minimum guarantee shortfall”) is now recognized straight-line over the remaining license period once an expected shortfall is identified. Previously, shortfalls were recognized at the end of the contract period. |
• | For licenses that include multiple television and film titles with a minimum guaranteed license fee across all titles that earns out against the aggregate fees based on the licensee’s underlying sales, the Company now allocates the minimum guaranteed license fee to each title at contract inception and recognizes the allocated license fee as revenue when the title is made available to the customer. License fees earned in excess of the allocated minimum guaranteed amount by title are deferred until the aggregate contractual minimum guarantee is exceeded and then recognized as revenue as earned based on the licensee’s underlying sales. Previously, license fees were recognized as earned based on the licensee’s underlying sales with any shortfalls recognized at the end of the contract period. |
• | For renewals or extensions of license agreements for television and film content, revenues are now recognized when the licensed content becomes available under the renewal or extension. Previously, revenues were recognized when the agreement was renewed or extended. |
September 29, 2018 | December 29, 2018 | ||||||||||||||||||||||
Fiscal 2018 Ending Balances as Reported | Effect of Adoption | Q1 2019 Opening Balances | Balances Assuming Historical Accounting | Q1 2019 Impact of New Revenue Standard | Q1 2019 Ending Balances as Reported | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Receivables - current/non-current | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||
Film and television costs and advances - current/non-current | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable and other accrued liabilities | |||||||||||||||||||||||
Deferred revenue and other | ( | ) | ( | ) | |||||||||||||||||||
Deferred income taxes | ( | ) | ( | ) | |||||||||||||||||||
Equity | ( | ) | ( | ) | |||||||||||||||||||
Quarter ended December 29, 2018 | |||||||||||
Results Assuming Historical Accounting | Impact of New Revenue Standard | Reported | |||||||||
Revenues | $ | $ | $ | ||||||||
Cost and Expenses | ( | ) | ( | ) | ( | ) | |||||
Income Taxes | ( | ) | ( | ) | ( | ) | |||||
Net Income | |||||||||||
• | Affiliate fees - Fees charged to affiliates (i.e., MVPDs or television stations) for the right to deliver our television network programming on a continuous basis to their customers are recognized as the programming is provided based on contractually specified per subscriber rates and the actual number of the affiliate’s customers receiving the programming. |
• | Subscription fees - Fees charged to customers/subscribers for our DTC streaming and other services are recognized ratably over the term of the subscription. |
• | Advertising - Sales of advertising time/space on our television networks, digital platforms, and television stations are recognized as revenue, net of agency commissions, when commercials are aired on television or delivered online. The performance obligation in advertising agreements is the delivery of ad time/space and may include a guaranteed number of impressions. When a contract contains a guaranteed number of impressions and the guaranteed number of impressions is not met (“ratings shortfall”), revenues are not recognized for the ratings shortfall until the guaranteed impressions are provided through the delivery of additional advertising time/space. |
• | Theme park admissions - Sales of theme park tickets are recognized when the tickets are used. Sales of annual passes are recognized ratably over the period for which the pass is available for use. |
• | Resorts and vacations - Sales of hotel room nights and cruise vacations and rentals of vacation club properties are recognized as the services are provided to the guest. Sales of vacation club properties are recognized when title to the property transfers to the customer. |
• | Merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts, cruise ships and Disney Stores are recognized at the time of sale. Sales from our branded internet shopping sites and to wholesalers are recognized upon delivery. We estimate returns and customer incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. |
• | TV/SVOD distribution licensing - Fees charged for the right to use our television and motion picture productions are recognized as revenue when the content is available for use by the licensee. Contractual license fees may be for a fixed amount, based on performance in previous distribution windows (e.g., box office receipts) or based on underlying sales of the licensee. |
• | Theatrical distribution licensing - Fees charged for licensing of our motion pictures to theaters are recognized as revenue based on the contractual royalty rate applied to the theater’s underlying sales from exhibition of the film. |
• | Merchandise licensing - Fees charged for the use of our trade names and characters in connection with the sale of a licensee’s products are recognized as revenue as the products are sold by the licensee applying a contractual royalty rate to the licensee sales. For licenses with minimum guaranteed license fees, the excess of the minimum guaranteed |
• | Home entertainment - Sales of our motion pictures to retailers and distributors in physical formats (DVD and Blu-ray) are recognized as revenue on the later of the delivery date or the date that the product can be sold by retailers. We reduce home entertainment revenues for estimated future returns of merchandise and sales incentives based upon historical return experience, current economic trends and projections of consumer demand for our products. Sales of our motion pictures in electronic formats are recognized as revenue when the product is available for use by the consumer. |
• | Taxes - Taxes collected from customers and remitted to governmental authorities are excluded from revenue. |
• | Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue upon delivery of the product to the consumer. The related shipping expenses are recorded in cost of products upon delivery of the product to the customer. |
Quarter Ended December 29, 2018 | |||||||||||||||||||||||
Media Networks | Parks, Experiences & Consumer Products | Studio Entertainment | Direct-to-Consumer & International | Eliminations | Consolidated | ||||||||||||||||||
Affiliate fees | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Advertising | |||||||||||||||||||||||
Theme park admissions | |||||||||||||||||||||||
Resort and vacations | |||||||||||||||||||||||
Retail and wholesale sales of merchandise, food and beverage | — | — | — | — | |||||||||||||||||||
TV/SVOD distribution licensing | ( | ) | |||||||||||||||||||||
Theatrical distribution licensing | |||||||||||||||||||||||
Merchandise licensing | |||||||||||||||||||||||
Home entertainment | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Quarter Ended December 30, 2017(1) | |||||||||||||||||||||||
Media Networks | Parks, Experiences & Consumer Products | Studio Entertainment | Direct-to-Consumer & International | Eliminations | Consolidated | ||||||||||||||||||
Affiliate fees | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Advertising | |||||||||||||||||||||||
Theme park admissions | |||||||||||||||||||||||
Resort and vacations | |||||||||||||||||||||||
Retail and wholesale sales of merchandise, food and beverage | — | — | — | — | |||||||||||||||||||
TV/SVOD distribution licensing | ( | ) | |||||||||||||||||||||
Theatrical distribution licensing | |||||||||||||||||||||||
Merchandise licensing | |||||||||||||||||||||||
Home entertainment | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
(1) | The table presents our revenues by segment and major source under historical accounting. |
Quarter Ended December 29, 2018 | |||||||||||||||||||||||
Media Networks | Parks, Experiences & Consumer Products | Studio Entertainment | Direct-to-Consumer & International | Eliminations | Consolidated | ||||||||||||||||||
United States and Canada | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Europe | ( | ) | |||||||||||||||||||||
Asia Pacific | ( | ) | |||||||||||||||||||||
Latin America | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
December 29, 2018 | September 30, 2018 | ||||||
Contract assets | $ | $ | |||||
Accounts Receivable | |||||||
Current | |||||||
Non-current | |||||||
Allowance for doubtful accounts | ( | ) | ( | ) | |||
Deferred revenues | |||||||
Current | |||||||
Non-current | |||||||
4. | Acquisitions |
Media Networks | Parks and Resorts | Studio Entertainment | Consumer Products & Interactive Media | Parks, Experiences & Consumer Products | Direct-to-Consumer & International | Total | |||||||||||||||||||||
Balance at Sep. 29, 2018 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Segment recast (1) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Other, net | |||||||||||||||||||||||||||
Balance at Dec. 29, 2018 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
5. | Cash, Cash Equivalents, Restricted Cash and Borrowings |
December 29, 2018 | September 29, 2018 | |||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash included in: | ||||||||
Other current assets | ||||||||
Other assets | ||||||||
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ | $ | ||||||
September 29, 2018 | Borrowings | Payments | Other Activity | December 29, 2018 | |||||||||||||||
Commercial paper with original maturities less than three months(1) | $ | $ | $ | $ | $ | ||||||||||||||
Commercial paper with original maturities greater than three months | ( | ) | ( | ) | |||||||||||||||
U.S. and European medium-term notes | |||||||||||||||||||
Asia Theme Parks borrowings | |||||||||||||||||||
Foreign currency denominated debt and other(2) | |||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
(1) | Borrowings and reductions of borrowings are reported net. |
(2) | The other activity is due to market value adjustments for debt with qualifying hedges, partially offset by the impact of changes in foreign currency exchange rates. |
Committed Capacity | Capacity Used | Unused Capacity | |||||||||
Facility expiring March 2020 | $ | $ | $ | ||||||||
Facility expiring March 2021 | |||||||||||
Facility expiring March 2023 | |||||||||||
Total | $ | $ | $ | ||||||||
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Interest expense | $ | ( | ) | $ | ( | ) | |
Interest and investment income | |||||||
Net periodic pension and postretirement benefit costs (other than service costs) | |||||||
Interest expense, net | $ | ( | ) | $ | ( | ) | |
6. | International Theme Parks |
December 29, 2018 | September 29, 2018 | ||||||
Cash and cash equivalents | $ | $ | |||||
Other current assets | |||||||
Total current assets | |||||||
Parks, resorts and other property | |||||||
Other assets | |||||||
Total assets (1) | $ | $ | |||||
Current liabilities | $ | $ | |||||
Long-term borrowings | |||||||
Other long-term liabilities | |||||||
Total liabilities (1) | $ | $ | |||||
(1) |
December 29, 2018 | |||
Revenues | $ | ||
Costs and expenses | ( | ) | |
Equity in the loss of investees | ( | ) | |
7. | Income Taxes |
• | Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from |
• | The Company remeasured its U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes are realized (either |
• | A one-time tax is due on certain accumulated foreign earnings (Deemed Repatriation Tax), which is payable over eight years. The effective tax rate is generally |
• | The Company is eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions that commenced after September 27, 2017 and placed in service by the end of fiscal 2022. The immediate deduction phases out for assets placed in service in fiscal 2023 through fiscal 2027. |
• | Beginning in fiscal 2019: |
◦ | The domestic production activity deduction is eliminated. |
◦ | Certain foreign derived income will be taxed in the U.S. at an effective rate of approximately |
◦ | Certain foreign earnings will be taxed at a minimum effective rate of approximately |
8. | Pension and Other Benefit Programs |
Pension Plans | Postretirement Medical Plans | ||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||
December 29, 2018 | December 30, 2017 | December 29, 2018 | December 30, 2017 | ||||||||||||
Service costs | $ | $ | $ | $ | |||||||||||
Other costs (benefits): | |||||||||||||||
Interest costs | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of prior-year service costs | |||||||||||||||
Recognized net actuarial loss | |||||||||||||||
Total other costs (benefits) | ( | ) | ( | ) | |||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||
9. | Earnings Per Share |
Quarter Ended | |||||
December 29, 2018 | December 30, 2017 | ||||
Shares (in millions): | |||||
Weighted average number of common and common equivalent shares outstanding (basic) | |||||
Weighted average dilutive impact of Awards | |||||
Weighted average number of common and common equivalent shares outstanding (diluted) | |||||
Awards excluded from diluted earnings per share | |||||
10. | Equity |
Per Share | Total Paid | Payment Timing | Related to Fiscal Period | |||
$ | $ | Second quarter of Fiscal 2019 | Second Half of 2018 | |||
$ | $ | Fourth Quarter of Fiscal 2018 | First Half of 2018 | |||
$ | $ | Second Quarter of Fiscal 2018 | Second Half of 2017 | |||
$ | $ | Fourth Quarter of Fiscal 2017 | First Half of 2017 | |||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
AOCI, before tax | Investments | Cash Flow Hedges | |||||||||||||||||
First quarter of fiscal 2019 | |||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Quarter Ended December 29, 2018: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | |||||||||||||||||
Reclassifications to retained earnings | ( | ) | ( | ) | |||||||||||||||
Balance at December 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
First quarter of fiscal 2018 | |||||||||||||||||||
Balance at September 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Quarter Ended December 30, 2017: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of realized net (gains) losses to net income | |||||||||||||||||||
Balance at December 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
Tax on AOCI | Investments | Cash Flow Hedges | |||||||||||||||||
First quarter of fiscal 2019 | |||||||||||||||||||
Balance at September 29, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||
Quarter Ended December 29, 2018: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | |||||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | ( | ) | |||||||||||||||
Reclassifications to retained earnings | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Balance at December 29, 2018 | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
First quarter of fiscal 2018 | |||||||||||||||||||
Balance at September 30, 2017 | $ | ( | ) | $ | $ | $ | $ | ||||||||||||
Quarter Ended December 30, 2017: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | ( | ) | |||||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | ( | ) | ( | ) | |||||||||||||
Balance at December 30, 2017 | $ | ( | ) | $ | $ | $ | $ | ||||||||||||
Unrecognized Pension and Postretirement Medical Expense | Foreign Currency Translation and Other | AOCI | |||||||||||||||||
Market Value Adjustments | |||||||||||||||||||
AOCI, after tax | Investments | Cash Flow Hedges | |||||||||||||||||
First quarter of fiscal 2019 | |||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Quarter Ended December 29, 2018: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | ( | ) | |||||||||||||||
Reclassifications of realized net (gains) losses to net income | ( | ) | |||||||||||||||||
Reclassifications to retained earnings (1) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Balance at December 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
First quarter of fiscal 2018 | |||||||||||||||||||
Balance at September 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Quarter Ended December 30, 2017: | |||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ) | |||||||||||||||||
Reclassifications of realized net (gains) losses to net income | |||||||||||||||||||
Balance at December 30, 2017 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
(1) | On September 30, 2018, the Company adopted a FASB standard, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and elected to reclassify $ |
Gains/(losses) in net income: | Affected line item in the Condensed Consolidated Statements of Income: | Quarter Ended | ||||||||
December 29, 2018 | December 30, 2017 | |||||||||
Cash flow hedges | Primarily revenue | $ | $ | ( | ) | |||||
Estimated tax | Income taxes | ( | ) | |||||||
( | ) | |||||||||
Pension and postretirement medical expense | Costs and expenses | ( | ) | |||||||
Interest expense, net | ( | ) | ||||||||
Estimated tax | Income taxes | |||||||||
( | ) | ( | ) | |||||||
Total reclassifications for the period | $ | ( | ) | $ | ( | ) | ||||
11. | Equity-Based Compensation |
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Stock options | $ | $ | |||||
RSUs | |||||||
Total equity-based compensation expense (1) | $ | $ | |||||
Equity-based compensation expense capitalized during the period | $ | $ | |||||
(1) |
12. | Commitments and Contingencies |
13. | Fair Value Measurements |
Fair Value Measurement at December 29, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Investments | $ | $ | $ | $ | |||||||||||
Derivatives | |||||||||||||||
Foreign exchange | |||||||||||||||
Other | |||||||||||||||
Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest rate | ( | ) | ( | ) | |||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Other | ( | ) | ( | ) | |||||||||||
Total recorded at fair value | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Fair value of borrowings | $ | $ | $ | $ | |||||||||||
Fair Value Measurement at September 29, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Investments | $ | $ | $ | $ | |||||||||||
Derivatives | |||||||||||||||
Foreign exchange | |||||||||||||||
Other | |||||||||||||||
Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest rate | ( | ) | ( | ) | |||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Total recorded at fair value | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Fair value of borrowings | $ | $ | $ | $ | |||||||||||
14. | Derivative Instruments |
As of December 29, 2018 | |||||||||||||||
Current Assets | Other Assets | Other Current Liabilities | Other Long- Term Liabilities | ||||||||||||
Derivatives designated as hedges | |||||||||||||||
Foreign exchange | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Interest rate | ( | ) | |||||||||||||
Other | ( | ) | ( | ) | |||||||||||
Derivatives not designated as hedges | |||||||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Interest rate | ( | ) | |||||||||||||
Gross fair value of derivatives | ( | ) | ( | ) | |||||||||||
Counterparty netting | ( | ) | ( | ) | |||||||||||
Cash collateral (received)/paid | ( | ) | |||||||||||||
Net derivative positions | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
As of September 29, 2018 | |||||||||||||||
Current Assets | Other Assets | Other Current Liabilities | Other Long- Term Liabilities | ||||||||||||
Derivatives designated as hedges | |||||||||||||||
Foreign exchange | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Interest rate | ( | ) | |||||||||||||
Other | |||||||||||||||
Derivatives not designated as hedges | |||||||||||||||
Foreign exchange | ( | ) | ( | ) | |||||||||||
Interest rate | ( | ) | |||||||||||||
Gross fair value of derivatives | ( | ) | ( | ) | |||||||||||
Counterparty netting | ( | ) | ( | ) | |||||||||||
Cash collateral (received)/paid | |||||||||||||||
Net derivative positions | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Carrying Amount of Hedged Borrowings (1) | Fair Value Adjustments Included in Hedged Borrowings (1) | ||||||||||||||
December 29, 2018 | September 29, 2018 | December 29, 2018 | September 29, 2018 | ||||||||||||
Borrowings: | |||||||||||||||
Current | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Long-term | ( | ) | ( | ) | |||||||||||
$ | $ | $ | ( | ) | $ | ( | ) | ||||||||
(1) | Includes $ |
Quarter Ended | |||||||
December 29, 2018 | December 30, 2017 | ||||||
Gain (loss) on: | |||||||
Pay-floating swaps | $ | $ | ( | ) | |||
Borrowings hedged with pay-floating swaps | ( | ) | |||||
Benefit (expense) associated with interest accruals on pay-floating swaps | ( | ) | |||||
December 29, 2018 | |||
Gain/(loss) recognized in Other Comprehensive Income | $ | ||
Gain/(loss) reclassified from AOCI into the Statement of Income (1) | |||
(1) |
Costs and Expenses | Interest expense, net | Income Tax expense | |||||||||||||||||||||
Quarter Ended: | December 29, 2018 | December 30, 2017 | December 29, 2018 | December 30, 2017 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
Net gain (loss) on foreign currency denominated assets and liabilities | $ | ( | ) | $ | $ | $ | $ | $ | |||||||||||||||
Net gain (loss) on foreign exchange risk management contracts not designated as hedges | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Net gain (loss) | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||
15. | Restructuring and Impairment Charges and Other Income |
16. | New Accounting Pronouncements |
• | Revenues from Contracts with Customers - See Note 3 |
• | Intra-Entity Transfers of Assets Other Than Inventory - See Note 7 |
• | Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - See Note 8 |
• | Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - See Note 10 |
• | Recognition and Measurement of Financial Assets and Liabilities - See Note 10 |
• | Targeted Improvements to Accounting for Hedging Activities - The adoption of the new standard did not have a material impact on our consolidated financial statements |
• | Arrangements contain a lease |
• | The Company’s lease arrangements are operating or capital leases (financing) |
• | Initial direct costs should be capitalized |
• | Existing land easements are leases |
• | Recognizing new right-of-use assets and lease liabilities on our balance sheet for our operating leases |
• | Reclassifying a deferred gain of approximately $ |
17 | Condensed Consolidating Financial Information |
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
Revenues | $ | $ | $ | $ | $ | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Operating expenses | ( | ) | ( | ) | |||||||||||||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||||||||||
Depreciation and amortization | ( | ) | ( | ) | |||||||||||||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||||||||||
Restructuring and impairment charges | |||||||||||||||||||
Allocations to non-guarantor subsidiaries | ( | ) | |||||||||||||||||
Other income, net | ( | ) | ( | ) | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | |||||||||||||
Equity in the income of investees | |||||||||||||||||||
Income before taxes | ( | ) | ( | ) | |||||||||||||||
Income taxes | ( | ) | ( | ) | |||||||||||||||
Earnings from subsidiary entities | ( | ) | |||||||||||||||||
Consolidated net income | ( | ) | ( | ) | |||||||||||||||
Less: Net loss attributable to noncontrolling interests | |||||||||||||||||||
Net income excluding noncontrolling interests | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||
Comprehensive income excluding noncontrolling interests | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
Revenues | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Costs and expenses | |||||||||||||||||||
Operating expenses | ( | ) | ( | ) | |||||||||||||||
Selling, general, administrative and other | ( | ) | ( | ) | ( | ) | |||||||||||||
Depreciation and amortization | ( | ) | ( | ) | |||||||||||||||
Total costs and expenses | ( | ) | ( | ) | ( | ) | |||||||||||||
Restructuring and impairment charges | ( | ) | ( | ) | |||||||||||||||
Allocations to non-guarantor subsidiaries | ( | ) | |||||||||||||||||
Other income, net | ( | ) | |||||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||||||
Equity in the income of investees | |||||||||||||||||||
Income before taxes | ( | ) | |||||||||||||||||
Income taxes | ( | ) | |||||||||||||||||
Earnings from subsidiary entities | ( | ) | |||||||||||||||||
Consolidated net income | ( | ) | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||||||
Net income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Comprehensive income excluding noncontrolling interests | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Receivables, net | |||||||||||||||||||
Inventories | |||||||||||||||||||
Television costs and advances | |||||||||||||||||||
Other current assets | |||||||||||||||||||
Total current assets | |||||||||||||||||||
Film and television costs | |||||||||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||||||
Other investments | |||||||||||||||||||
Parks, resorts and other property, net | |||||||||||||||||||
Intangible assets, net | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Intercompany receivables | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and other accrued liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Current portion of borrowings | |||||||||||||||||||
Deferred revenues and other | |||||||||||||||||||
Total current liabilities | |||||||||||||||||||
Non-current liabilities | |||||||||||||||||||
Borrowings | $ | $ | $ | $ | $ | ||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Intercompany payables | ( | ) | |||||||||||||||||
Total non-current liabilities | ( | ) | |||||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||||
Total Disney Shareholders’ equity | ( | ) | ( | ) | |||||||||||||||
Noncontrolling interests | |||||||||||||||||||
Total equity | ( | ) | ( | ) | |||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Receivables, net | |||||||||||||||||||
Inventories | |||||||||||||||||||
Television costs and advances | |||||||||||||||||||
Other current assets | |||||||||||||||||||
Total current assets | |||||||||||||||||||
Film and television costs | |||||||||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||||||
Other investments | |||||||||||||||||||
Parks, resorts and other property, net | |||||||||||||||||||
Intangible assets, net | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Intercompany receivables | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and other accrued liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Current portion of borrowings | |||||||||||||||||||
Deferred revenues and other | |||||||||||||||||||
Total current liabilities | |||||||||||||||||||
Non-current liabilities | |||||||||||||||||||
Borrowings | $ | $ | $ | $ | $ | ||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Intercompany payables | ( | ) | |||||||||||||||||
Total non-current liabilities | ( | ) | |||||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||||
Total Disney Shareholders’ equity | ( | ) | |||||||||||||||||
Noncontrolling interests | |||||||||||||||||||
Total equity | ( | ) | |||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Cash provided by operations | $ | ( | ) | $ | $ | $ | $ | ||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | |||||||||||||||
Intercompany investing activities, net | ( | ) | |||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||
Cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Commercial paper, net | ( | ) | ( | ) | |||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||
Intercompany financing, net | ( | ) | ( | ) | |||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash used in financing activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Impact of exchange rates on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||||||||||||
Change in cash, cash equivalents and restricted cash | ( | ) | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | $ | $ | $ | ||||||||||||||
TWDC | Legacy Disney | Non-Guarantor Subsidiaries | Reclassifications & Eliminations | Total | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Cash provided by operations | $ | $ | $ | $ | $ | ||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Investments in parks, resorts and other property | ( | ) | ( | ) | |||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||
Cash used in investing activities | ( | ) | ( | ) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Commercial paper, net | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Reduction of borrowings | ( | ) | ( | ) | ( | ) | |||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||
Intercompany financing, net | ( | ) | |||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||
Cash used in financing activities | ( | ) | ( | ) | |||||||||||||||
Impact of exchange rates on cash, cash equivalents and restricted cash | |||||||||||||||||||
Change in cash, cash equivalents and restricted cash | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | $ | $ | $ | ||||||||||||||
Document and Entity Information Document |
Aug. 14, 2019 |
|---|---|
| Cover page. | |
| Document Type | 8-K |
| Document Period End Date | Aug. 14, 2019 |
| Entity Registrant Name | WALT DISNEY CO/ |
| Entity Incorporation, State or Country Code | DE |
| Entity File Number | 001-38842 |
| 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 |
| Entity Information, Former Legal or Registered Name | Not applicable |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, $0.01 par value |
| Trading Symbol | DIS |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0001744489 |
| Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Revenues | $ 15,303 | $ 15,351 | $ 59,434 | $ 55,137 | $ 55,632 |
| Selling, general, administrative and other | (2,152) | (2,087) | (8,860) | (8,176) | (8,754) |
| Depreciation and amortization | (732) | (742) | (3,011) | (2,782) | (2,527) |
| Total costs and expenses | (11,885) | (11,558) | (44,597) | (41,264) | (41,274) |
| Restructuring and impairment charges | 0 | (15) | (33) | (98) | (156) |
| Other income, net | 601 | 78 | 0 | ||
| Interest expense, net | (63) | (129) | (574) | (385) | (260) |
| Equity in the income (loss) of investees, net | 76 | 43 | (102) | 320 | 926 |
| Income before income taxes | 3,431 | 3,745 | 14,729 | 13,788 | 14,868 |
| Income taxes | (645) | 728 | (1,663) | (4,422) | (5,078) |
| Net income | 2,786 | 4,473 | 13,066 | 9,366 | 9,790 |
| Less: Net income attributable to noncontrolling interests | 2 | (50) | (468) | (386) | (399) |
| Net income attributable to The Walt Disney Company (Disney) | $ 2,788 | $ 4,423 | $ 12,598 | $ 8,980 | $ 9,391 |
| Earnings per share attributable to Disney: | |||||
| Diluted | $ 1.86 | $ 2.91 | $ 8.36 | $ 5.69 | $ 5.73 |
| Basic | $ 1.87 | $ 2.93 | $ 8.40 | $ 5.73 | $ 5.76 |
| Weighted average number of common and common equivalent shares outstanding: | |||||
| Diluted (shares) | 1,498 | 1,521 | 1,507 | 1,578 | 1,639 |
| Basic (shares) | 1,490 | 1,512 | 1,499 | 1,568 | 1,629 |
| Dividends Declared Per Share (usd per share) | $ 0.88 | $ 0.84 | $ 1.68 | $ 1.56 | $ 1.42 |
| Service | |||||
| Revenues | $ 12,866 | $ 12,984 | $ 50,869 | $ 46,843 | $ 47,130 |
| Cost of Goods and Services Sold | 7,564 | 7,324 | 27,528 | 25,320 | 24,653 |
| Product | |||||
| Revenues | 2,437 | 2,367 | 8,565 | 8,294 | 8,502 |
| Cost of Goods and Services Sold | $ 1,437 | $ 1,405 | $ 5,198 | $ 4,986 | $ 5,340 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Net income | $ 2,786 | $ 4,473 | $ 13,066 | $ 9,366 | $ 9,790 |
| Other comprehensive income/(loss), net of tax: | |||||
| Market value adjustments for investments | 0 | (1) | 7 | (18) | 13 |
| Market value adjustments for hedges | (9) | 18 | 207 | (37) | (359) |
| Pension and postretirement medical plan adjustments | 53 | 61 | 434 | 584 | (1,154) |
| Foreign currency translation and other | (21) | 87 | (289) | (103) | (156) |
| Other comprehensive income/(loss) | 23 | 165 | 359 | 426 | (1,656) |
| Comprehensive income | 2,809 | 4,638 | 13,425 | 9,792 | 8,134 |
| Net (income) loss attributable to noncontrolling interests, including redeemable noncontrolling interests | 2 | (50) | (468) | (386) | (399) |
| Other comprehensive loss attributable to noncontrolling interests | (2) | (41) | 72 | 25 | 98 |
| Comprehensive income attributable to Disney | $ 2,809 | $ 4,547 | $ 13,029 | $ 9,431 | $ 7,833 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Billions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Statement of Financial Position [Abstract] | |||
| Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
| Common stock, authorized | 4.6 | 4.6 | 4.6 |
| Common stock, issued | 2.9 | 2.9 | 2.9 |
| Treasury stock, shares | 1.4 | 1.4 | 1.4 |
Principles of Consolidation |
3 Months Ended |
|---|---|
Dec. 29, 2018 | |
| Principles of Consolidation | Principles of Consolidation These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We believe that we have included all normal recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the quarter ended December 29, 2018 are not necessarily indicative of the results that may be expected for the year ending September 28, 2019. These financial statements should be read in conjunction with the Company’s 2018 Annual Report on Form 10-K. The Company enters into relationships or investments with other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. The terms “Company,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates. Reclassifications Certain reclassifications have been made in fiscal 2018 financial statements and notes to conform to the fiscal 2019 presentation.
|
Description of the Business and Segment Information |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2018 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of the Business and Segment Information | Description of Business and Segment Information Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer in order to decide how to allocate resources and to assess performance. Effective in fiscal 2019, the Company started reporting its results in the following operating segments:
The Parks, Experiences & Consumer Products segment reflects the combination of the former Parks & Resorts and Consumer Products & Interactive Media segments. Certain businesses that were previously reported in Media Networks, Studio Entertainment and Consumer Products & Interactive Media are now reported in Direct-to-Consumer & International (DTCI). Fiscal 2018 segment operating results have been recast to align with the fiscal 2019 presentation. DESCRIPTION OF BUSINESS Media Networks
Parks, Experiences & Consumer Products
Studio Entertainment
Direct-to-Consumer & International
SEGMENT INFORMATION Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, other income, interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. Intersegment content transactions (e.g. feature films aired on the ABC Television Network) are presented “gross” (i.e. the segment producing the content reports revenue and profit from intersegment transactions in a manner similar to the reporting of third-party transactions, and the required eliminations are reported on a separate “Eliminations” line when presenting a summary of our segment results). Previously, these transactions were reported “net”, and the intersegment revenue was eliminated in the results of the segment producing the content. Fiscal 2018 intersegment content transactions have been recast to align with the fiscal 2019 presentation. Segment revenues and segment operating income are as follows:
Equity in the income/(loss) of investees is included in segment operating income as follows:
A reconciliation of segment operating income to income before income taxes is as follows:
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Description of the Business and Segment Information The Walt Disney Company, together with the subsidiaries through which businesses are conducted (the Company), is a diversified worldwide entertainment company with operations in the following business segments: Media Networks; Parks, Experiences & Consumer Products; Studio Entertainment; and Direct-to-Consumer & International. DESCRIPTION OF THE BUSINESS Media Networks Segment The Company operates cable programming businesses branded ESPN, Disney and Freeform, broadcast businesses, which include the ABC TV Network and eight owned television stations, and radio businesses. The ABC TV network has affiliated stations providing coverage to consumers throughout the U.S. The Company also produces original live-action and animated television programming, which may be sold in network, first-run syndication and other television markets worldwide, to subscription video-on-demand services (including content transactions with other Company segments) and in home entertainment formats (such as DVD, Blu-ray and electric home video license). The Company has interests in media businesses reported in the Media Networks segment that are accounted for under the equity method including A+E Television Networks LLC (A+E) and CTV Specialty Television, Inc. (CTV). Media Networks also programs certain of the Company’s branded internet sites and apps. Parks, Experiences & Consumer Products Segment The Company owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. The Walt Disney World Resort includes four theme parks (the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom); 18 resort hotels; vacation club properties; a retail, dining and entertainment complex (Disney Springs); a sports complex; conference centers; campgrounds; water parks; and other recreational facilities. The Disneyland Resort includes two theme parks (Disneyland and Disney California Adventure), three resort hotels and a retail, dining and entertainment complex (Downtown Disney). Internationally, the Company owns and operates Disneyland Paris, which includes two theme parks (Disneyland Park and Walt Disney Studios Park); seven themed resort hotels; two convention centers; a retail, dining and entertainment complex (Disney Village); a 27-hole golf facility; and a 50% interest in Villages Nature, a European eco-tourism resort. The Company manages and has a 47% ownership interest in Hong Kong Disneyland Resort, which includes one theme park and three themed resort hotels. The Company has a 43% ownership interest in Shanghai Disney Resort, which includes one theme park; two themed resort hotels; a retail, dining and entertainment complex (Disneytown); and an outdoor recreational area. The Company also has a 70% ownership interest in the management company of Shanghai Disney Resort. The Company earns royalties on revenues generated by the Tokyo Disney Resort, which includes two theme parks (Tokyo Disneyland and Tokyo DisneySea) and four Disney-branded hotels and is owned and operated by an unrelated Japanese corporation. The Company develops, manages and markets vacation club ownership interests through the Disney Vacation Club; operates the Disney Cruise Line; the Adventures by Disney guided group vacations business; and Aulani, a hotel and vacation club resort in Hawaii. The Company’s Walt Disney Imagineering unit designs and develops theme park concepts and attractions as well as resort properties. The Company licenses its trade names, characters, visual, literary and other intellectual properties to various manufacturers, game developers, publishers and retailers throughout the world. The Company also sells branded merchandise through retail, online and wholesale businesses, and develops and publishes books, magazines, comic books and games. As of the end of fiscal 2018, the Company had substantially exited the vertical games development business. Studio Entertainment Segment The Company produces and acquires live-action and animated motion pictures for worldwide distribution in the theatrical, home entertainment and television markets and to subscription video on demand services. The Company distributes these products through its own distribution and marketing companies in the U.S. and both directly and through independent companies and joint ventures in foreign markets. Our primary banners are Walt Disney Pictures, Pixar, Marvel, Lucasfilm and Touchstone. The Studio Entertainment segment also provides content to other Company segments. The Company also produces stage plays and musical recordings, licenses and produces live entertainment events and provides visual and audio effects and other post-production services. Direct-to-Consumer & International Segment The Company operates Disney and ESPN branded television networks and channels outside of the U.S. and operates the Company’s direct-to-consumer streaming services. In April 2018, the Company launched ESPN+, a direct-to-consumer streaming service providing multi-sports content. The Company expects to launch Disney+, which will offer a range of Disney, Pixar, Marvel and Lucasfilm content, in late 2019. The Company also operates Disney Movie Club, which sells DVD/Blu-rays directly to U.S. and Canadian consumers, and provides streaming technology services to third parties. The Company has interests in media businesses reported in the Direct-to-Consumer & International segment that are accounted for under the equity method including Hulu LLC (Hulu), Vice Group Holding, Inc. (Vice) and Seven TV. SEGMENT INFORMATION Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, other expense, interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions. The following segment 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. These allocations are agreed-upon amounts between the businesses and may differ from amounts that would be negotiated in arm’s length transactions. Intersegment content transactions (e.g. feature films aired on the ABC Television Network) are presented “gross” (i.e. the segment producing the content reports revenue and profit from intersegment transactions in a manner similar to the reporting of third-party transactions, and the required eliminations are reported on a separate “Eliminations” line when presenting a summary of our segment results). Other intersegment transactions are reported “Net” (i.e. revenue between segments is recorded as a reduction of costs) except that Studio Entertainment revenues and operating income include an allocation of Parks, Experiences & Consumer Products revenues, which is meant to reflect royalties on revenue generated by Parks, Experiences & Consumer Products on merchandise based on intellectual property from Studio Entertainment films.
During fiscal 2018, the Company recorded impairments of Vice and Villages Nature equity method investments. During fiscal 2016, the Company recognized its share of a net gain recorded by A+E, a joint venture owned 50% by the Company, in connection with A+E’s acquisition of an interest in Vice (Vice Gain). These items were recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statement of Income but were not included in segment operating income.
Intangible assets included in identifiable assets by segment are as follows:
(7) Long-lived assets are total assets less the following: current assets, long-term receivables, deferred taxes, financial investments and derivatives.
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Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of The Walt Disney Company and its majority-owned or controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The Company enters into relationships or investments with other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (collectively the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements. Reporting Period The Company’s fiscal year ends on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. When a fifty-three week year occurs, the Company reports the additional week in the fourth quarter. Fiscal 2018, 2017 and 2016 were fifty-two week years. Reclassifications Certain reclassifications have been made in the fiscal 2017 and fiscal 2016 financial statements and notes to conform to the fiscal 2018 presentation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates. Revenues and Costs from Services and Products The Company generates revenue from the sale of both services and tangible products and revenues and operating costs are classified under these two categories in the Consolidated Statements of Income. Certain costs related to both the sale of services and tangible products are not specifically allocated between the service or tangible product revenue streams but are instead attributed to the principal revenue stream. The cost of services and tangible products exclude depreciation and amortization. Significant service revenues include:
Significant operating costs related to the sale of services include:
Significant tangible product revenues include the sale of:
Significant operating costs related to the sale of tangible products include:
Revenue Recognition Television advertising revenues are recognized when commercials are aired. Affiliate fee revenue is recognized as services are provided based on per subscriber rates set out in agreements with Multi-channel Video Programming Distributors (MVPD) and the number of MVPD subscribers. Revenues from theme park ticket sales are recognized when the tickets are used. Revenues from annual pass sales are recognized ratably over the period for which the pass is available for use. Revenues from the theatrical distribution of motion pictures are recognized when motion pictures are exhibited. Revenues from home entertainment sales, net of anticipated returns and customer incentives, are recognized on the later of the delivery date or the date that the product can be sold by retailers. Revenues from the licensing of feature films and television programming are recorded when the content is available for telecast by the licensee and when certain other conditions are met. Revenues from the sale of electronic formats of feature films and television programming are recognized when the product is received by the consumer. Merchandise licensing advances and guarantee royalty payments are recognized based on the contractual royalty rate when the licensed product is sold by the licensee. Non-refundable advances and minimum guarantee royalty payments in excess of royalties earned are generally recognized as revenue at the end of the contract period. Revenues from our branded online and mobile operations are recognized as services are rendered. Advertising revenues at our internet operations or associated with the distribution of our video content online are recognized when advertisements are delivered online. Taxes collected from customers and remitted to governmental authorities are presented in the Consolidated Statements of Income on a net basis. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on our analysis of trends in overall receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and current economic trends. Advertising Expense Advertising costs are expensed as incurred. Advertising expense for fiscal years 2018, 2017 and 2016 was $2.8 billion, $2.6 billion and $2.9 billion, respectively. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. The Company’s restricted cash balances are primarily made up of cash posted as collateral for certain derivative instruments. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows.
Investments Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost. Debt securities not classified as held-to-maturity and marketable equity securities are considered “available-for-sale” and recorded at fair value with unrealized gains and losses included in accumulated other comprehensive income/(loss) (AOCI). All other equity securities are accounted for using either the cost method or the equity method. The Company regularly reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary. If the decline in fair value is determined to be other-than-temporary, the cost basis of the investment is written down to fair value. Translation Policy The U.S. dollar is the functional currency for the majority of our international operations. Significant businesses where the local currency is the functional currency include the Asia Theme Parks, Disneyland Paris and international locations of The Disney Stores. For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at average exchange rates in effect during each period, except for those expenses related to the non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of AOCI. Inventories Inventory primarily includes vacation timeshare units, merchandise, food, materials and supplies. Carrying amounts of vacation ownership units are recorded at the lower of cost or net realizable value. Carrying amounts of merchandise, food, materials and supplies inventories are generally determined on a moving average cost basis and are recorded at the lower of cost or net realizable value. Film and Television Costs Film and television costs include capitalizable production costs, production overhead, interest, development costs and acquired programming costs and are stated at the lower of cost, less accumulated amortization, or fair value. Acquired programming costs for the Company’s cable and broadcast television networks are stated at the lower of cost, less accumulated amortization, or net realizable value. Acquired television broadcast program licenses and rights are recorded when the license period begins and the program is available for use. Marketing, distribution and general and administrative costs are expensed as incurred. Film and television production, participation and residual costs are expensed over the applicable product life cycle based upon the ratio of the current period’s revenues to estimated remaining total revenues (Ultimate Revenues) for each production. For film productions, Ultimate Revenues include revenues from all sources that will be earned within ten years from the date of the initial theatrical release. For television series, Ultimate Revenues include revenues that will be earned within ten years from delivery of the first episode, or if still in production, five years from delivery of the most recent episode, if later. For acquired film libraries, remaining revenues include amounts to be earned for up to twenty years from the date of acquisition. Costs of film and television productions are subject to regular recoverability assessments, which compare the estimated fair values with the unamortized costs. The Company bases these fair value measurements on the Company’s assumptions about how market participants would price the assets at the balance sheet date, which may be different than the amounts ultimately realized in future periods. The amount by which the unamortized costs of film and television productions exceed their estimated fair values is written off. Film development costs for projects that have been abandoned are written off. Projects that have not been set for production within three years are also written off unless management has committed to a plan to proceed with the project and is actively working on and funding the project. The costs of television broadcast rights for acquired series, movies and other programs are expensed based on the number of times the program is expected to be aired or on a straight-line basis over the useful life, as appropriate. Rights costs for multi-year sports programming arrangements are amortized during the applicable seasons based on the estimated relative value of each year in the arrangement. The estimated value of each year is based on our projections of revenues over the contract period, which include advertising revenue and an allocation of affiliate revenue. If the annual contractual payments related to each season approximate each season’s estimated relative value, we expense the related contractual payments during the applicable season. Individual programs are written off when there are no plans to air or sublicense the program. The net realizable values of network television broadcast program licenses and rights are reviewed for recoverability using a daypart methodology. A daypart is defined as an aggregation of programs broadcast during a particular time of day or programs of a similar type. The Company’s dayparts are: primetime, daytime, late night, news and sports (includes broadcast and cable networks). The net realizable values of other cable programming assets are reviewed on an aggregated basis for each cable network. Internal-Use Software Costs The Company expenses costs incurred in the preliminary project stage of developing or acquiring internal use software, such as research and feasibility studies as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software development costs occurs only after the preliminary-project stage is complete, management authorizes the project and it is probable that the project will be completed and the software will be used for the function intended. As of September 29, 2018 and September 30, 2017, capitalized software costs, net of accumulated depreciation, totaled $659 million and $710 million, respectively. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software, ranging from 2-10 years. Software Product Development Costs Software product development costs incurred prior to reaching technological feasibility are expensed. We have determined that technological feasibility of our video game software is generally not established until substantially all product development is complete. Parks, Resorts and Other Property Parks, resorts and other property are carried at historical cost. Depreciation is computed on the straight-line method, generally over estimated useful lives as follows:
Goodwill, Other Intangible Assets and Long-Lived Assets The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis. Goodwill is allocated to various reporting units, which are an operating segment or one level below the operating segment. The Company compares the fair value of each reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit. To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate. We apply what we believe to be the most appropriate valuation methodology for each of our reporting units. We include in the projected cash flows an estimate of the revenue we believe the reporting unit would receive if the intellectual property developed by the reporting unit that is being used by other reporting units was licensed to an unrelated third party at its fair market value. In times of adverse economic conditions in the global economy, the Company’s long-term cash flow projections are subject to a greater degree of uncertainty than usual. If we had established different reporting units or utilized different valuation methodologies or assumptions, the impairment test results could differ, and we could be required to record impairment charges. The Company is required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized for the excess. Fair values of other indefinite-lived intangible assets are determined based on discounted cash flows or appraised values, as appropriate. The Company has determined that there are currently no legal, competitive, economic or other factors that materially limit the useful life of our FCC licenses and trademarks. Amortizable intangible assets are generally amortized on a straight-line basis over periods up to 40 years. The costs to periodically renew our intangible assets are expensed as incurred. The Company tests long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount may not be recoverable. Once a triggering event has occurred, the impairment test employed is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for use requires a comparison of cash flows expected to be generated over the useful life of an asset group to the carrying value of the asset group. An asset group is established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other assets and could include assets used across multiple businesses or segments. If the carrying value of an asset group exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the fair value of the group’s long-lived assets and the carrying value of the group’s long-lived assets. The impairment is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts, but only to the extent the carrying value of each asset is above its fair value. For assets held for sale, to the extent the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company tested its goodwill and other indefinite-lived intangible assets, long-lived assets and investments for impairment and recorded non-cash impairment charges of $210 million, $22 million and $7 million in fiscal years 2018, 2017 and 2016, respectively. The fiscal 2018 impairment charges related to equity investments and were recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statements of Income. The fiscal 2017 and 2016 impairment charges were recorded in “Restructuring and impairment charges” in the Consolidated Statements of Income. The Company expects its aggregate annual amortization expense for existing amortizable intangible assets for fiscal years 2019 through 2023 to be as follows:
Risk Management Contracts In the normal course of business, the Company employs a variety of financial instruments (derivatives) including interest rate and cross-currency swap agreements and forward and option contracts to manage its exposure to fluctuations in interest rates, foreign currency exchange rates and commodity prices. The Company formally documents all relationships between hedges and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company primarily enters into two types of derivatives: hedges of fair value exposure and hedges of cash flow exposure. Hedges of fair value exposure are entered into in order to hedge the fair value of a recognized asset, liability, or a firm commitment. Hedges of cash flow exposure are entered into in order to hedge a forecasted transaction (e.g. forecasted revenue) or the variability of cash flows to be paid or received, related to a recognized liability or asset (e.g. floating rate debt). The Company designates and assigns the derivatives as hedges of forecasted transactions, specific assets or specific liabilities. When hedged assets or liabilities are sold or extinguished or the forecasted transactions being hedged occur or are no longer expected to occur, the Company recognizes the gain or loss on the designated derivatives. The Company’s hedge positions are measured at fair value on the balance sheet. Realized gains and losses from hedges are classified in the income statement consistent with the accounting treatment of the items being hedged. The Company accrues the differential for interest rate swaps to be paid or received under the agreements as interest rates change as adjustments to interest expense over the lives of the swaps. Gains and losses on the termination of effective swap agreements, prior to their original maturity, are deferred and amortized to interest expense over the remaining term of the underlying hedged transactions. The Company enters into derivatives that are not designated as hedges and do not qualify for hedge accounting. These derivatives are intended to offset certain economic exposures of the Company and are carried at fair value with changes in value recorded in earnings. Cash flows from hedging activities are classified in the Consolidated Statements of Cash Flows under the same category as the cash flows from the related assets, liabilities or forecasted transactions (see Notes 8 and 16). Income Taxes Deferred income tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of available evidence, it is more likely than not that some amount of recorded deferred tax assets will not be realized, a valuation allowance is established for the amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized. A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Earnings Per Share The Company presents both basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing net income attributable to Disney by the weighted average number of common shares outstanding during the year. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the year, which is calculated using the treasury-stock method for equity-based awards (Awards). Common equivalent shares are excluded from the computation in periods for which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the calculation. A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows:
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| Revenue from Contract with Customer | Revenues On September 30, 2018, the Company adopted Financial Accounting Standards Board (FASB) guidance, which replaced the existing accounting standards for revenue recognition with a single comprehensive five-step model (“new revenue standard”). The core principle is to recognize revenue upon the transfer of control of goods or services to customers at an amount that reflects the consideration expected to be received. We adopted the new revenue standard using the modified retrospective method, therefore results for reporting periods beginning after September 30, 2018 are presented under the new revenue standard, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting. Upon adoption, we elected to apply the new revenue standard to all contracts and we recorded a net reduction to opening retained earnings of $116 million. The most significant changes to the Company’s revenue recognition policies resulting from the adoption of the new revenue standard are as follows:
The adoption of the new revenue standard resulted in certain reclassifications on the Condensed Consolidated Balance Sheet. The primary changes are the reclassification of sales returns reserves (previously reported as a reduction of receivables) to other accrued liabilities ($163 million at December 29, 2018) and the reclassification of refundable customer advances (previously reported as deferred revenues) to other accrued liabilities ($739 million at December 29, 2018). The cumulative effect of adoption at September 29, 2018 and the impact at December 29, 2018 (had we not applied the new revenue standard) on the Condensed Consolidated Balance Sheet is as follows:
The impact on the Condensed Consolidated Statement of Income for the quarter ended December 29, 2018, due to the adoption of the new revenue standard is as follows:
The most significant impacts were at the Media Networks and Parks, Experiences & Consumer Products segments, both of which reflected a change in the timing of revenue recognition on contracts with minimum guarantees. Summary of Significant Revenue Recognition Accounting Policies The Company generates revenue from the sale of both services and products. Revenue is recognized when control of the services or products is transferred to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for the services or products. The Company has three broad categories of service revenues: licenses of rights to use our intellectual property, sales to guests at our Parks and Experiences businesses, and advertising. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue standard defines two types of licenses of intellectual property (“IP”): IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters, visual and literary properties at the Parks, Experiences & Consumer Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows:
Affiliate contracts may include a minimum guaranteed license fee. For these contracts, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned.
TV/SVOD distribution contracts may contain more than one title and/or provide that certain titles are only available for use during defined periods of time during the contract term. In these instances, each title and/or period of availability is generally considered a separate performance obligation. For these contracts, license fees are allocated to each title and period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized when the content is made available for use by the licensee. For TV/SVOD licenses that include multiple titles subject to an aggregate minimum guaranteed license fee across all titles, the minimum guaranteed license fee is allocated to each title at contract inception and recognized as revenue when the title is available for use by the licensee. License fees earned in excess of the allocated minimum guarantee are deferred until the aggregate contractual minimum guaranteed license fee has been exceeded with the excess then recognized as earned. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension.
amount over actual royalties earned from licensee sales (shortfall) is recognized straight-line over the remaining license period once an expected shortfall is probable.
The following table presents our revenues by segment and major source:
The following table presents our revenues by segment and primary geographical markets:
The amount of revenue recognized for the three months ended December 29, 2018 from performance obligations satisfied (or partially satisfied) in previous periods is $378 million, which primarily relates to revenues based on theatrical and TV/SVOD distribution licensee sales in the current quarter on titles made available to the licensee in previous quarters. As of December 29, 2018, revenue expected to be recognized in the future for unsatisfied performance obligations is $13.3 billion, which primarily relates to content to be delivered in the future under existing agreements with television station affiliates and TV/SVOD licensees. Of this amount, we expect to recognize approximately $4.2 billion in the remainder of fiscal 2019, $3.6 billion in fiscal 2020, $2.3 billion in fiscal 2021, and $3.3 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 based on sales of the licensee. Payment terms vary by the type and location of our customers and the products or services offered. For certain products or services and customer types, we require payment before the products or services are provided to the customer; in other cases, after appropriate credit evaluations, payment is due in arrears. Advertising contracts, which are generally short term, are billed monthly with payments generally due within 30 days. Payments due under affiliate arrangements are calculated monthly and are generally due within 45 days of month end. Home entertainment terms generally include payment within 60 to 90 days of availability date to the customer. Licensing payment terms vary by contract but are generally collected in advance or over the license term. The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties (see note 12). These receivables are discounted to present value based on a discount rate reflective of a separate financing transaction at contract inception. Therefore, the related revenues are recognized at the discounted amount. When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears are recognized as accounts receivable. Deferred revenues are recognized as revenue as (or when) the Company performs under the contract. Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows:
Contract assets relate to certain multi-season TV/SVOD licensing contracts. Activity for the quarter ended December 29, 2018 related to contract assets and the allowance for doubtful accounts was not material. Deferred revenue primarily relates to nonrefundable consideration received in advance for (i) licensing contracts, theme park annual passes, theme park tickets and vacation packages and (ii) the deferral of advertising revenues due to ratings shortfalls. For the three months ended December 29, 2018, $1.6 billion of revenues primarily related to theme park admissions and vacation packages included in the deferred revenue balance at the beginning of the period were recognized. The decrease in deferred revenues due to the revenues recognized was partially offset by the receipt of additional prepaid parks admissions, non-refundable travel deposits and advances on certain licensing arrangements.
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | Acquisitions Twenty-First Century Fox On December 14, 2017, the Company and Twenty-First Century Fox, Inc. (“21CF”) announced a definitive agreement (the “Original Merger Agreement”) for the Company to acquire 21CF. On June 20, 2018, the Company, TWDC Holdco 613 Corp (“New Disney”), a direct wholly owned subsidiary of the Company, and 21CF entered into an Amended and Restated Agreement and Plan of Merger (“Amended Merger Agreement”) for New Disney to acquire 21CF. The Amended Merger Agreement amends and restates the Original Merger Agreement in its entirety. Prior to the acquisition, 21CF will transfer a portfolio of its news, sports and broadcast businesses, including the Fox News Channel, Fox Business Network, Fox Broadcasting Company, Fox Sports, Fox Television Stations Group, FS1, FS2, Fox Deportes, Big Ten Network and certain other assets and liabilities into a newly formed subsidiary (“New Fox”) (the “New Fox Separation”) and distribute all of the issued and outstanding common stock of New Fox to shareholders of 21CF (other than holders that are subsidiaries of 21CF) on a pro rata basis (the “New Fox Distribution”). Prior to the New Fox Distribution, New Fox will pay 21CF a dividend in the amount of $8.5 billion. As the New Fox Separation and the New Fox Distribution will be taxable to 21CF at the corporate level, the dividend is intended to fund the taxes resulting from the New Fox Separation and New Fox Distribution and certain other transactions contemplated by the Amended Merger Agreement (the “Transaction Tax”). On October 3, 2018, 21CF entered into an agreement to sell its existing 39% interest in Sky plc (“Sky”) to Comcast at a price of £17.28 per each Sky share for a total sales price of approximately £11.6 billion ($15.1 billion). 21CF will retain all assets and liabilities not transferred to New Fox, which will include the 21CF film and television studios, certain cable networks (including FX and Nat Geo), 21CF’s international television businesses and the proceeds from the sale of its interest in Sky. Following the New Fox Separation and the New Fox Distribution, WDC Merger Enterprises I, Inc., a wholly owned subsidiary of New Disney will be merged with and into the Company, with the Company continuing as the surviving corporation (the “Disney Merger”), and WDC Merger Enterprises II, Inc., a wholly owned subsidiary of New Disney, will be merged with and into 21CF, with 21CF continuing as the surviving corporation (the “21CF Merger and together with the Disney Merger, the “Mergers”). As a result of the Mergers, the Company and 21CF will become direct wholly owned subsidiaries of New Disney, which will be renamed “The Walt Disney Company” concurrently with the Mergers. Each share of Disney stock issued and outstanding immediately prior to the Disney Merger will be converted into one share of New Disney stock of the same class. The Boards of Directors of the Company and 21CF have approved the transaction. On July 27, 2018, the Amended Merger Agreement was adopted by the requisite vote of 21CF’s shareholders, and the stock issuance was approved by the requisite vote of the Company’s shareholders. The consummation of the transaction is subject to various conditions, including, among others, (i) the consummation of the New Fox Separation, (ii) the receipt of certain tax opinions with respect to the treatment of the transaction under U.S. and Australian tax laws, and (iii) the receipt of certain regulatory approvals and governmental consents. The closing of the acquisition is expected to occur in the first half of calendar year 2019. Pursuant to a consent decree with the DOJ, we are required to sell 21CF’s Regional Sports Networks (the “RSNs”) (the “RSN Divestiture”). Under the consent decree, the Company will have at least 90 days from the date of the acquisition to complete the RSN Divestiture, with the possibility that the DOJ can grant extensions of time up to another 90 days; and the DOJ must approve the purchaser(s) and terms and conditions of the RSN Divestiture. The decree is subject to the normal court approval process. On November 6, 2018, the European Commission approved the acquisition on the condition that the Company divest its interests in certain cable channels in the European Economic Area that are controlled by A+E, including History, H2, Crime & Investigation, Blaze and Lifetime (“the EEA Channels”). A+E is owned 50% by the Company, and the Company plans to comply by divesting its interests in the entities that operate the EEA Channels while retaining its 50% ownership of A +E apart from the A+E entities operating the EEA Channels. Upon consummation of the transaction, each issued and outstanding share of 21CF common stock (other than (i) treasury shares, (ii) shares held by 21CF subsidiaries and (iii) shares held by 21CF shareholders who have not voted in favor of the 21CF Merger and perfected and not withdrawn a demand for appraisal rights under Delaware law) will be exchanged for an amount (the “Per Share Value”), payable at the election of the holder thereof in either cash or shares of New Disney common stock. The Per Share Value is equal to fifty percent (50%) of the sum of (i) $38.00 plus (ii) the value of a number of shares of the Company’s common stock equal to an “exchange ratio” (determined based on the volume weighted average price of Disney common stock over the fifteen consecutive trading day period ending on (and including) the trading day that is three trading days prior to the date of the effective time of the 21CF Merger (“Average Company Stock Price”)). If the Average Company Stock Price is greater than $114.32, then the exchange ratio will be 0.3324. If the Average Company Stock Price is less than $93.53, then the exchange ratio will be 0.4063. If the Average Company Stock Price is greater than or equal to $93.53 but less than or equal to $114.32, then the exchange ratio will be an amount equal to $38.00 divided by the Average Company Stock Price. The merger consideration is subject to automatic proration and adjustment to ensure that the aggregate cash consideration (before giving effect to the adjustment for the Transaction Tax) is equal to $35.7 billion. The merger consideration may be subject to an adjustment based on the final estimate of the Transaction Tax. The merger consideration in the Amended Merger Agreement was set based on an estimate of $8.5 billion for the Transaction Tax and will be adjusted immediately prior to consummation of the transaction if the final estimate of the Transaction Tax at closing is more than $8.5 billion or less than $6.5 billion. Such adjustment could increase or decrease the merger consideration, depending on whether the final estimate is lower or higher, respectively, than $6.5 billion or $8.5 billion. Additionally, if the final estimate of the Transaction Tax is lower than $8.5 billion, the Company will make a cash payment to New Fox reflecting the difference between such amount and $8.5 billion, up to a maximum cash payment of $2.0 billion. As described in an 8-K filed by the Company on October 5, 2018, based on the estimated number of shares of 21CF common stock outstanding as of September 27, 2018 and assuming an Average Company Stock Price of $111.6013 (which was the volume weighted average price of the Company’s stock over the 15-trading day period ending on September 27, 2018), and assuming no adjustment for the Transaction Tax, New Disney would be required to issue approximately 319 million shares of New Disney common stock to 21CF shareholders. New Disney will record the merger consideration based upon the cash paid, which will be funded from New Disney borrowings, plus the value of New Disney common stock issued to 21CF shareholders, which will be determined by the number of shares issued and the Company’s stock price on the closing date. We anticipate that we will repay approximately half of the borrowings shortly after the transaction closes using cash we expect to acquire from 21CF. New Disney will assume approximately $19 billion of 21CF debt that had an estimated fair value of approximately $23 billion as of September 30, 2018. Under the terms of the Amended Merger Agreement, Disney will pay 21CF $2.5 billion if the Mergers are not consummated under certain circumstances relating to the failure to obtain approvals, or if there is a final, non-appealable order preventing the transaction, in each case, relating to antitrust laws, communications laws or foreign regulatory laws. If the Amended Merger Agreement is terminated under certain other circumstances relating to changes in board recommendations and/or alternative transactions, the Company or 21CF may be required to pay the other party approximately $1.5 billion. On October 5, 2018, the Company commenced an exchange offer for any and all outstanding notes (the “21CFA Notes”) issued by 21st Century Fox America, Inc. (“21CFA”), for up to $18.1 billion aggregate principal amount of new notes (the “New Disney Notes”) and cash. In conjunction with the offer to exchange (each an “Exchange Offer” and collectively, the “Exchange Offers”) the 21CFA Notes, New Disney, on behalf of 21CFA, was concurrently soliciting consents (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the 21CFA Notes to eliminate substantially all of the restrictive covenants in such indentures, release the guarantee provided by 21CF pursuant to such indentures and limit the reporting covenants under such indentures so that 21CFA is only required to comply with the reporting requirements under the Trust Indenture Act of 1939 (collectively, the “Proposed Amendments”). On October 22, 2018, the Company announced that the requisite number of consents had been received to adopt the Proposed Amendments with respect to all 21CFA Notes. Supplemental indentures effecting the Proposed Amendments were executed on October 22, 2018. Such supplemental indentures were valid and enforceable upon execution but will only become operative upon the settlement of the Exchange Offers and Consent Solicitations. The settlement of the Exchange Offers and Consent Solicitations is expected to occur on or around the closing date of the acquisition. If the acquisition is not consummated, or if the Exchange Offers and Consent Solicitations are otherwise terminated or withdrawn prior to settlement, the Proposed Amendments effected by the supplemental indentures will be deemed to be revoked retroactive to October 22, 2018. Goodwill The changes in the carrying amount of goodwill for the quarter ended December 29, 2018 are as follows:
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Acquisitions Twenty-First Century Fox On December 14, 2017, the Company and Twenty-First Century Fox, Inc. (“21CF”) announced a definitive agreement (the “Original Merger Agreement”) for the Company to acquire 21CF. On June 20, 2018, the Company, TWDC Holdco 613 Corp (“New Disney”), a direct wholly owned subsidiary of the Company, and 21CF entered into an Amended and Restated Agreement and Plan of Merger (“Amended Merger Agreement”) for New Disney to acquire 21CF. The Amended Merger Agreement amends the Original Merger Agreement. Prior to the acquisition, 21CF will transfer a portfolio of its news, sports and broadcast businesses, including the Fox News Channel, Fox Business Network, Fox Broadcasting Company, Fox Sports, Fox Television Stations Group, FS1, FS2, Fox Deportes, Big Ten Network and certain other assets and liabilities into a newly formed subsidiary (“New Fox”) (the “New Fox Separation”) and distribute all of the issued and outstanding common stock of New Fox to shareholders of 21CF (other than holders that are subsidiaries of 21CF) on a pro rata basis (the “New Fox Distribution”). Prior to the New Fox Distribution, New Fox will pay 21CF a dividend in the amount of $8.5 billion. As the New Fox Separation and the New Fox Distribution will be taxable to 21CF at the corporate level, the dividend is intended to fund the taxes resulting from the New Fox Separation and New Fox Distribution and certain other transactions contemplated by the Amended Merger Agreement (the “Transaction Tax”). On October 3, 2018, 21CF entered into an agreement to sell its existing 39% interest in Sky plc (“Sky”) to Comcast at a price of £17.28 per each Sky share for a total sales price of approximately £11.6 billion ($15.1 billion). 21CF will retain all assets and liabilities not transferred to New Fox, which will include the 21CF film and television studios, certain cable networks (including FX and Nat Geo), 21CF’s international television businesses and the proceeds from the sale of its interest in Sky. Following the New Fox Separation and the New Fox Distribution, WDC Merger Enterprises I, Inc., a wholly owned subsidiary of New Disney will be merged with and into the Company, with the Company continuing as the surviving corporation (the “Disney Merger”), and WDC Merger Enterprises II, Inc., a wholly owned subsidiary of New Disney, will be merged with and into 21CF, with 21CF continuing as the surviving corporation (the “21CF Merger and together with the Disney Merger, the “Mergers”). As a result of the Mergers, the Company and 21CF will become direct wholly owned subsidiaries of New Disney, which will be renamed “The Walt Disney Company” concurrently with the Mergers. Each share of Disney stock issued and outstanding immediately prior to the Disney Merger will be converted into one share of New Disney stock of the same class. The Boards of Directors of the Company and 21CF have approved the transaction. On July 27, 2018, the Amended Merger Agreement was adopted by the requisite vote of 21CF’s shareholders and the stock issuance was approved by the requisite vote of the Company’s shareholders. The consummation of the transaction is subject to various conditions, including, among others, (i) the consummation of the New Fox Separation, (ii) the receipt of certain tax opinions with respect to the treatment of the transaction under U.S. and Australian tax laws, and (iii) the receipt of certain regulatory approvals and governmental consents. The closing of the Acquisition is expected to occur in the first half of calendar year 2019. Pursuant to a consent decree with the DOJ, we are required to sell 21CF’s Regional Sports Networks (the “RSNs”) (the “RSN Divestiture”). Under the consent decree, the Company will have at least 90 days from the date of the acquisition to complete the RSN Divestiture, with the possibility that the DOJ can grant extensions of time up to another 90 days; and the DOJ must approve the purchaser(s) and terms and conditions of the RSN Divestiture. The decree is subject to the normal court approval process. On November 6, 2018, the European Commission approved the acquisition on the condition that the Company divest its interests in certain cable channels in the European Economic Area that are controlled by A+E, including History, H2, Crime & Investigation, Blaze and Lifetime(“the EEA Channels”). A+E is owned 50% by the Company, and the Company plans to comply by divesting its interests in the entities that operate the EEA Channels while retaining its 50% ownership of A +E apart from the A+E entities operating the EEA Channels. Upon consummation of the transaction, each issued and outstanding share of 21CF common stock (other than (i) treasury shares, (ii) shares held by 21CF subsidiaries and (iii) shares held by 21CF shareholders who have not voted in favor of the 21CF Merger and perfected and not withdrawn a demand for appraisal rights under Delaware law) will be exchanged for an amount (the “Per Share Value”), payable at the election of the holder thereof in either cash or shares of New Disney common stock. The Per Share Value is equal to fifty percent (50%) of the sum of (i) $38.00 plus (ii) the value of a number of shares of the Company’s common stock equal to an “exchange ratio” (determined based on the volume weighted average price of Disney common stock over the fifteen consecutive trading day period ending on (and including) the trading day that is three trading days prior to the date of the effective time of the 21CF Merger (“Average Company Stock Price”)). If the Average Company Stock Price is greater than $114.32, then the exchange ratio will be 0.3324. If the Average Company Stock Price is less than $93.53, then the exchange ratio will be 0.4063. If the Average Company Stock Price is greater than or equal to $93.53 but less than or equal to $114.32, then the exchange ratio will be an amount equal to $38.00 divided by the Average Company Stock Price. The merger consideration is subject to automatic proration and adjustment to ensure that the aggregate cash consideration (before giving effect to the adjustment for the Transaction Tax) is equal to $35.7 billion. The merger consideration may be subject to an adjustment based on the final estimate of the Transaction Tax. The merger consideration in the Amended Merger Agreement was set based on an estimate of $8.5 billion for the Transaction Tax and will be adjusted immediately prior to consummation of the transaction if the final estimate of the Transaction Tax at closing is more than $8.5 billion or less than $6.5 billion. Such adjustment could increase or decrease the merger consideration, depending on whether the final estimate is lower or higher, respectively, than $6.5 billion or $8.5 billion. Additionally, if the final estimate of the Transaction Tax is lower than $8.5 billion, the Company will make a cash payment to New Fox reflecting the difference between such amount and $8.5 billion, up to a maximum cash payment of $2.0 billion. As described in a Form 8-K filed by the Company on October 5, 2018, based on the estimated number of shares of 21CF common stock outstanding as of September 27, 2018 and assuming an Average Company Stock Price of $111.6013 (which was the volume weighted average price of the Company’s stock over the 15-trading day period ending on September 27, 2018), and assuming no adjustment for the Transaction Tax, New Disney would be required to issue approximately 319 million shares of New Disney common stock to 21CF shareholders. New Disney will record the merger consideration based upon the cash paid, which will be funded from New Disney borrowings, plus the value of New Disney common stock issued to 21CF shareholders, which will be determined by the number of shares issued and the Company’s stock price on the closing date. We anticipate that we will repay approximately half of the borrowings shortly after the transaction closes using cash we expect to acquire from 21CF. New Disney will assume approximately $19 billion of 21CF debt that had an estimated fair value of approximately $23 billion as of September 30, 2018. Under the terms of the Amended Merger Agreement, Disney will pay 21CF $2.5 billion if the Mergers are not consummated under certain circumstances relating to the failure to obtain approvals, or if there is a final, non-appealable order preventing the transaction, in each case, relating to antitrust laws, communications laws or foreign regulatory laws. If the Amended Merger Agreement is terminated under certain other circumstances relating to changes in board recommendations and/or alternative transactions, the Company or 21CF may be required to pay the other party approximately $1.5 billion. On October 5, 2018, the Company commenced an exchange offer for any and all outstanding notes (the “21CFA Notes”) issued by 21st Century Fox America, Inc. (“21CFA”), for up to $18.1 billion aggregate principal amount of new notes (the “New Disney Notes”) and cash. In conjunction with the offer to exchange (each an “Exchange Offer” and collectively, the “Exchange Offers”) the 21CFA Notes, New Disney, on behalf of 21CFA, was concurrently soliciting consents (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the 21CFA Notes to eliminate substantially all of the restrictive covenants in such indentures, release the guarantee provided by 21CF pursuant to such indentures and limit the reporting covenants under such indentures so that 21CFA is only required to comply with the reporting requirements under the Trust Indenture Act of 1939 (collectively, the “Proposed Amendments”). On October 22, 2018, the Company announced that the requisite number of consents had been received to adopt the Proposed Amendments with respect to all 21CFA Notes. Supplemental indentures effecting the Proposed Amendments were executed on October 22, 2018. Such supplemental indentures were valid and enforceable upon execution but will only become operative upon the settlement of the Exchange Offers and Consent Solicitations. The settlement of the Exchange Offers and Consent Solicitations is expected to occur on or around the closing date of the Acquisition. If the Acquisition is not consummated, or if the Exchange Offers and Consent Solicitations are otherwise terminated or withdrawn prior to settlement, the Proposed Amendments effected by the supplemental indentures will be deemed to be revoked retroactive to October 22, 2018. BAMTech On September 25, 2017, the Company acquired an additional 42% interest in BAMTech, a streaming technology and content delivery business, from an affiliate of Major League Baseball (MLB) for $1.6 billion (paid in January 2018). The acquisition increased our interest from 33% to 75%, and as a result, we began consolidating BAMTech during the fourth quarter of fiscal 2017. The acquisition supports the Company’s strategy to launch DTC video streaming services. The acquisition date fair value of BAMTech (purchase price) of $3.9 billion represents the sum of (i) the $1.6 billion payment for the 42% interest, (ii) the $1.2 billion estimated fair value of the Company’s original 33% interest, and (iii) the $1.1 billion estimated fair value of the 25% noncontrolling interest. Upon consolidation, the Company recognized a non-cash gain of $255 million ($162 million after tax) as a result of increasing the carrying value of the Company’s original 33% interest to $1.2 billion, the estimated fair value implied by the acquisition price of our additional 42% interest. The gain was recorded in “Other income, net” in the fiscal 2017 Consolidated Statement of Income. We have allocated $3.5 billion of the purchase price to goodwill (approximately half of which is deductible for tax purposes) with the remainder primarily allocated to identifiable intangible assets. Goodwill reflects the synergies expected from rationalization of the Company’s current digital distribution services, enhanced personalization of content and advertising from access to DTC user data, and the ability to leverage BAMTech’s platform expertise for the Company’s DTC services. Goodwill also includes technical knowhow associated with BAMTech’s assembled workforce. BAMTech’s noncontrolling interest holders, MLB and the National Hockey League (NHL), have the right to sell their interest to the Company in the future. MLB can generally sell its interest to the Company starting five years from and ending ten years after the September 25, 2017 acquisition date at the greater of fair value or a guaranteed floor value ($563 million accreting at 8% annually for eight years). The NHL can sell its interest to the Company in fiscal 2020 for $300 million or in fiscal 2021 for $350 million. Accordingly, these interests are recorded as “Redeemable noncontrolling interests” in the Company’s Consolidated Balance Sheet. In addition, ESPN’s noncontrolling interest holder has a 20% interest in BAMTech’s direct-to-consumer sports business. The Company has the right to purchase MLB’s interest in BAMTech starting five years from and ending ten years after the acquisition date at the greater of fair value or the guaranteed floor value. The Company has the right to acquire the NHL interest in fiscal years 2020 or 2021 for $500 million. The acquisition date fair value of the noncontrolling interests was estimated at $1.1 billion, which was calculated using an option pricing model and generally reflected the net present value of the expected future redemption amount. As a result of the MLB and NHL sale rights, the noncontrolling interests will generally not be allocated BAMTech losses. The Company will record the noncontrolling interests at the greater of (i) their acquisition date fair value adjusted for their share (if any) of earnings, losses, or dividends or (ii) an accreted value from the date of the acquisition to the earliest redemption date. The accretion of the MLB interest to the earliest redemption value (i.e. in five years after the acquisition date) will be recorded using an interest method. As of September 29, 2018, the redeemable noncontrolling interest subject to accretion would have had a redemption amount of $608 million if it were redeemed at that time. Adjustments to the carrying amount of redeemable noncontrolling interests increase or decrease income available to Company shareholders through an adjustment to “Net income attributable to noncontrolling interests” on the Consolidated Statement of Income. The revenue and costs of BAMTech included in the Company’s Consolidated Statement of Income for the year ended September 29, 2018 were approximately $0.3 billion and $0.7 billion, respectively. Vice Vice is a media company targeting a millennial audience through news and pop culture content and creative brand integration. During fiscal 2016, A+E acquired an 8% interest in Vice in exchange for a 49.9% interest in one of A+E’s cable channels, H2, which has been rebranded as Viceland and programmed with Vice content. As a result of this exchange, A+E recognized a net non-cash gain based on the estimated fair value of H2. The Company’s $332 million share of the Vice Gain was recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statement of Income in fiscal 2016. At September 29, 2018, A+E had a 20% interest in Vice. During fiscal 2016, the Company acquired a direct interest in Vice for $400 million of cash, and at September 29, 2018 owned an 11% interest. The Company accounts for its interest in Vice as an equity method investment. During fiscal 2018, the Company recorded a $157 million impairment of its interest in Vice. Hulu At the end of fiscal 2015, the Company had a 33% interest in Hulu, a joint venture owned one-third each by the Company, 21CF and Comcast Corporation. Warner Media LLC (WM) acquired a 10% interest from Hulu for $0.6 billion in August 2016, which diluted the Company’s ownership interest to 30%. In addition, WM has made $0.2 billion in subsequent capital contributions. For not more than 36 months from August 2016, WM has the right to sell its shares to Hulu and Hulu has the right to purchase the shares from WM under certain limited circumstances arising from regulatory review. The Company and 21CF have agreed to make a capital contribution for up to approximately $0.4 billion each if Hulu is required to repurchase WM’s shares. The August 2016 transaction resulted in a deemed sale by the Company of a portion of its interest in Hulu at a gain of approximately $175 million. The Company expects to recognize the gain if and when the put and call options expire. Following completion of the 21CF acquisition the Company will consolidate Hulu’s financial results and assume 21CF’s capital contribution obligations. The Company accounts for its interest in Hulu as an equity method investment. Goodwill The changes in the carrying amount of goodwill for the years ended September 29, 2018 and September 30, 2017 are as follows:
(2) Represents the reallocation of goodwill as a result of the Company recasting its segments as described in Note 1.
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| Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings | Cash, Cash Equivalents, Restricted Cash and Borrowings Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows.
Borrowings During the quarter ended December 29, 2018, the Company’s borrowing activity was as follows:
The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
The Company had a $6.0 billion bank facility expiring in March 2019. This facility was refinanced extending the maturity date to March 2020. All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard & Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The 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 December 29, 2018, the Company has $221 million of outstanding letters of credit, of which none were issued under this facility. The facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on December 29, 2018 by a significant margin. 21CF Credit Facility In June 2018, the Company received committed financing from a bank syndicate to fund the cash component of the pending acquisition of 21CF. Under the terms of the commitment, the bank syndicate has committed to provide and arrange a 364-day unsecured bridge term loan facility in an aggregate principal amount of $35.7 billion at the completion of the 21CF transaction. The interest rate on the facility can vary based on the Company’s debt rating. The interest rate would have been LIBOR plus 0.75% if the Company had drawn on this facility at December 29, 2018. Cruise Ship Credit Facilities In October 2016 and December 2017, the Company entered into credit facilities to finance three new cruise ships, which are expected to be delivered in 2021, 2022 and 2023. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. If utilized, the interest rates will be fixed at 3.48%, 3.72% and 3.74%, respectively, and the loans and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees. Interest expense, net Interest expense, interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 8) are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest):
Interest and investment income includes gains and losses on publicly and non-publicly traded investments, investment impairments and interest earned on cash and cash equivalents and certain receivables.
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Dispositions and Other Income/(Expense) |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dispositions and Other Income/(Expense) | Other Income, net Other income, net is as follows:
Gains from sales of real estate and property rights In fiscal 2018, the Company recorded gains of $560 million in connection with the sale of real estate and property rights in New York City. Settlement of litigation In fiscal 2018, the Company recorded $38 million in insurance recoveries in connection with the settlement of a litigation matter for which the Company recorded a charge of $177 million, net of committed insurance recoveries in fiscal 2017. Gain related to the acquisition of BAMTech In fiscal 2018, the Company recorded a $3 million adjustment to a fiscal 2017 non-cash net gain of $255 million recorded in connection with the acquisition of a controlling interest in BAMTech (see Note 3).
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Investments |
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| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Investments Investments consist of the following:
Investments, Equity Basis The Company’s significant equity investments primarily consist of media and parks and resorts investments and include A + E (50% ownership), CTV Specialty Television, Inc. (30% ownership), Hulu (30% ownership), Seven TV (20% ownership), Vice (21% effective ownership including A+E ownership) and Villages Nature (50% ownership). A summary of combined financial information for equity investments is as follows:
As of September 29, 2018, the book value of the Company’s equity method investments exceeded our share of the book value of the investees’ underlying net assets by approximately $0.5 billion, which represents amortizable intangible assets and goodwill arising from acquisitions. The Company enters into transactions in the ordinary course of business with our equity investees, primarily related to the licensing of television and film programming. Revenues from these transactions were $0.8 billion, $0.5 billion and $0.5 billion in fiscal 2018, 2017 and 2016, respectively. The Company defers a portion of its profits from transactions with investees. The profits are recognized as the investees expense the programming rights. The portion that is deferred reflects our ownership interest in the investee. Investments, Other As of September 29, 2018 and September 30, 2017, the Company held $38 million and $36 million, respectively, of securities classified as available-for-sale and $93 million and $79 million, respectively, of non-publicly traded cost-method investments. In fiscal 2018, 2017 and 2016, the Company had no significant realized gains, unrealized gains, losses or impairments on available-for-sale securities and non-publicly traded cost-method investments. Realized gains and losses on available-for-sale and non-publicly traded cost-method investments are reported in “Interest expense, net” in the Consolidated Statements of Income.
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International Theme Parks |
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| Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| International Theme Parks | International Theme Parks The Company has a 47% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort (the Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks). The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 29, 2018 and September 29, 2018:
The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 29, 2018:
Asia Theme Parks’ royalty and management fees of $33 million for the quarter ended December 29, 2018 are eliminated in consolidation but are considered in calculating earnings attributable to noncontrolling interests. International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statement of Cash Flows for the quarter ended December 29, 2018 were $135 million generated from operating activities, $230 million used in investing activities and $20 million generated from financing activities. Approximately half of cash flows generated from operating activities and used in investing activities were for the Asia Theme Parks. Hong Kong Disneyland Resort The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have a 53% and a 47% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have both provided loans to Hong Kong Disneyland Resort with outstanding balances of $144 million and $143 million respectively. 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 in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($269 million), which bears interest at a rate of three month HIBOR plus 1.25% and matures in December 2023. There is no outstanding balance under the line of credit at December 29, 2018. 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 $809 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 $160 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 December 29, 2018. These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 7.0 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 $199 million) line of credit bearing interest at 8%. There is no outstanding balance under the line of credit at December 29, 2018.
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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 (together, the Asia Theme Parks), which are both VIEs consolidated in the Company’s financial statements. See Note 2 for the Company’s policy on consolidating VIEs. Disneyland Paris was also a consolidated VIE until the Company acquired 100% ownership of Disneyland Paris in June 2017. Given our 100% ownership, the Company will continue to consolidate Disneyland Paris’ financial results. The Asia Theme Parks and Disneyland Paris are collectively referred to as the International Theme Parks. The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s consolidated balance sheets as of September 29, 2018 and September 30, 2017:
The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s consolidated statement of income for fiscal 2018:
Asia Theme Parks’ royalty and management fees of $178 million for fiscal 2018 are eliminated in consolidation but are considered in calculating earnings allocated to noncontrolling interests. International Theme Parks’ cash flows included in the Company’s fiscal 2018 consolidated statement of cash flows were $915 million generated from operating activities, $689 million used in investing activities and $72 million generated in financing activities. Approximately two-thirds of cash flows generated from operating activities and used in investing activities were for the Asia Theme Parks. Disneyland Paris During fiscal 2017, the Company acquired the outstanding 19% interest in Disneyland Paris for $250 million of cash and 1.36 million shares of the Company’s common shares, valued at $150 million. Hong Kong Disneyland Resort The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have a 53% and a 47% equity interest in Hong Kong Disneyland Resort, respectively. The Company and HKSAR have both provided loans to Hong Kong Disneyland Resort with outstanding balances of $143 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 in consolidation. The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $2.1 billion ($269 million), which bears interest at a rate of three month HIBOR plus 1.25% and matures in December 2023. There is no outstanding balance under the line of credit at September 29, 2018. Hong Kong Disneyland is undergoing a multi-year expansion estimated to cost HK $10.9 billion ($1.4 billion) that will add a number of new guest offerings, including two new themed areas by 2023. The Company and HKSAR have agreed to fund the expansion on an equal basis through equity contributions, which totaled $144 million in fiscal 2018. HKSAR has the right to receive additional shares over time to the extent Hong Kong Disneyland Resort exceeds certain return on asset performance targets. The amount of additional shares HKSAR can receive is capped on both an annual and cumulative basis and could decrease the Company’s equity interest by up to an additional 7 percentage points over a period no shorter than 14 years. Assuming HK $10.9 billion is contributed in the expansion, the impact to the Company’s equity interest would be limited to 4 percentage points. Shanghai Disney Resort Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort. The Company has provided Shanghai Disney Resort with loans totaling $802 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 $191 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 September 29, 2018. These balances are eliminated in consolidation. Shendi has provided Shanghai Disney Resort with loans totaling 7.0 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 $199 million) line of credit bearing interest at 8%. There is no outstanding balance under the line of credit at September 29, 2018.
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Earnings Per Share |
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| 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:
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Film and Television Costs and Advances |
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| Disclosure Film And Television Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Film and Television Costs and Advances | Film and Television Costs and Advances Film and television costs and advances are as follows:
Based on the Company’s total gross revenue estimates as of September 29, 2018, approximately 78% of unamortized film and television costs for released productions (excluding amounts allocated to acquired film and television libraries) are expected to be amortized during the next three years. By the end of fiscal 2022, we will have reached on a cumulative basis over 80% amortization of the September 29, 2018 balance of unamortized film and television costs. Approximately $1.0 billion of accrued participation and residual liabilities will be paid in fiscal year 2019. The Company expects to amortize, based on current estimates, approximately $1.7 billion in capitalized completed film and television production costs during fiscal 2019. At September 29, 2018, acquired film and television libraries have remaining unamortized costs of $160 million, which are generally being amortized straight-line over a weighted-average remaining period of approximately 13 years.
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Borrowings |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | Borrowings The Company’s borrowings at September 29, 2018 and September 30, 2017, including the impact of interest rate and cross-currency swaps, are summarized below:
21CF Credit Facility In June 2018, the Company received committed financing from a bank syndicate to fund the cash component of the pending acquisition of 21CF. Under the terms of the commitment, the bank syndicate has committed to provide and arrange a 364-day unsecured bridge term loan facility in an aggregate principal amount of $35.7 billion at the completion of the 21CF transaction. The interest rate on the facility can vary based on the Company’s debt rating. The interest rate would have been LIBOR plus 0.875% if the Company had drawn on this facility at September 29, 2018. Cruise Ship Credit Facilities In October 2016 and December 2017, the Company entered into credit facilities to finance three new cruise ships, which are expected to be delivered in 2021, 2022 and 2023. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. If utilized, the interest rates will be fixed at 3.48%, 3.72% and 3.74%, respectively, and the 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. Commercial Paper The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. 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 September 29, 2018, the Company has $220 million of outstanding letters of credit, of which none were issued under this facility. The facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants, or events of default and contain only one financial covenant relating to interest coverage, which the Company met on September 29, 2018 by a significant margin. Commercial paper activity is as follows:
(1) Borrowings and reductions of borrowings are reported net. Shelf Registration Statement The Company has a shelf registration statement in place, which allows the Company to issue various types of debt instruments, such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes, redeemable notes, global notes, and dual currency or other indexed notes. Issuances under the shelf registration require the filing of a prospectus supplement identifying the amount and terms of the securities to be issued. Our ability to issue debt is subject to market conditions and other factors impacting our borrowing capacity. U.S. Medium-Term Note Program At September 29, 2018, the total debt outstanding under the U.S. medium-term note program was $17.4 billion with maturities ranging from 1 to 75 years. The debt outstanding includes $15.4 billion of fixed rate notes, which have stated interest rates that range from 0.88% to 7.55% and $2.0 billion of floating rate notes that bear interest at U.S. LIBOR plus or minus a spread. At September 29, 2018, the effective rate on the floating rate notes was 2.67%. European Medium-Term Note Program The Company has a European medium-term note program, which allows the Company to issue various types of debt instruments such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes, redeemable notes and index linked or dual currency notes. Capacity under the program is $4.0 billion, subject to market conditions and other factors impacting our borrowing capacity. Capacity under the program replenishes as outstanding debt under the program is repaid. At September 29, 2018, the total debt outstanding under the program was $497 million. The debt has a stated interest rate of 2.13% and matures in September 2022. Foreign Currency Denominated Debt In October 2017, the Company issued Canadian $1.3 billion ($955 million) of fixed rate debt, which bears interest at 2.76% and matures in October 2024. The Company also entered into pay-floating interest rate and cross currency swaps that effectively convert the borrowing to variable rate U.S. dollar denominated borrowing indexed to LIBOR. In addition, the Company has short-term credit facilities of Indian rupee (INR) 10.8 billion ($149 million), which bear interest at rates determined at the time of drawdown and expire in 2019. At September 29, 2018, the Company had not drawn on these credit facilities. Capital Cities/ABC Debt In connection with the Capital Cities/ABC, Inc. acquisition in 1996, the Company assumed debt previously issued by Capital Cities/ABC, Inc. At September 29, 2018, the outstanding balance was $103 million, which includes unamortized fair value adjustments recorded in purchase accounting. The debt matures in 2021 and has a stated interest rate of 8.75%. BAMTech Acquisition Payable In September 2017, the Company acquired a 42% interest in BAMTech for $1.6 billion, which was paid in January 2018. Asia Theme Parks Borrowings HKSAR provided Hong Kong Disneyland Resort with loans totaling HK$1.1 billion ($143 million). The interest rate is three month HIBOR plus 2%, and the maturity date is September 2025 for the majority of the borrowings. Shendi has provided Shanghai Disney Resort with loans totaling 7.0 billion yuan (approximately $1.0 billion) bearing interest at rates that increase to 8% and maturing in 2036, with early repayment permitted. Shendi has also provided Shanghai Disney Resort with a 1.4 billion yuan (approximately $199 million) line of credit bearing interest at 8%. There is no outstanding balance under the line of credit at September 29, 2018. Total borrowings, excluding market value adjustments and debt issuance premiums, discounts and costs, have the following scheduled maturities:
The Company capitalizes interest on assets constructed for its parks and resorts and on certain film and television productions. In fiscal years 2018, 2017 and 2016, total interest capitalized was $125 million, $87 million and $139 million, respectively. Interest expense, net of capitalized interest, for fiscal years 2018, 2017 and 2016 was $682 million, $507 million and $354 million, respectively.
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Income Taxes |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes U.S. Tax Cuts and Jobs Act In December 2017, new federal income tax legislation, the “Tax Cuts and Jobs Act” (Tax Act), was signed into law. The most significant impacts on the Company are as follows:
Intra-Entity Transfers of Assets Other Than Inventory On September 30, 2018, the Company adopted a FASB standard that requires recognition of the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs instead of when the asset is ultimately sold to an outside party. For the quarter ended December 29, 2018, the Company recorded a $0.1 billion deferred tax asset with an offsetting increase to retained earnings. Unrecognized Tax Benefits During the quarter ended December 29, 2018, the Company increased its gross unrecognized tax benefits by $0.1 billion from $0.6 billion to $0.7 billion. In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to resolutions of open tax matters and we do not expect that the resolutions will have a material impact.
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Income Taxes U.S. Tax Cuts and Jobs Act On December 22, 2017, new federal income tax legislation, the “Tax Cuts and Jobs Act” (Tax Act), was signed into law. The most significant impacts on the Company are as follows:
Provision for Income Taxes and Deferred Tax Assets and Liabilities
(1) Includes foreign withholding taxes (2) Includes the Deferred Remeasurement
At September 29, 2018 and September 30, 2017, the valuation allowance primarily relates to $1.1 billion and $1.3 billion, respectively, of deferred tax assets for International Theme Park net operating losses primarily in France and Hong Kong, and to a lesser extent, China. The decrease in the valuation allowance is driven by changes in French tax law, which reduced future income tax rates. The noncontrolling interest share of the net operating losses were $0.2 billion and $0.2 billion at September 29, 2018 and September 30, 2017, respectively. The International Theme Park net operating losses have an indefinite carryforward period in France and Hong Kong and a five-year carryforward period in China. A reconciliation of the effective income tax rate to the federal rate is as follows:
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows:
The fiscal year-end 2018, 2017 and 2016 balances include $469 million, $444 million and $469 million, respectively, that if recognized, would reduce our income tax expense and effective tax rate. These amounts are net of the offsetting benefits from other tax jurisdictions. As of the end of fiscal 2018, 2017 and 2016, the Company had $181 million, $234 million and $221 million, respectively, in accrued interest and penalties related to unrecognized tax benefits. During fiscal years 2018, 2017 and 2016, the Company accrued additional interest and penalties of $47 million, $43 million and $22 million, respectively, and recorded reductions in accrued interest and penalties of $100 million, $30 million and $32 million, respectively, as a result of audit settlements and other prior-year adjustments. The Company’s policy is to report interest and penalties as a component of income tax expense. The Company is no longer subject to U.S. federal examination for years prior to 2016 and is no longer subject to examination in any of its major state or foreign tax jurisdictions for years prior to 2008. In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to the resolution of certain tax matters, which could include payments on those tax matters. These resolutions and payments could reduce our unrecognized tax benefits by $21 million. In fiscal years 2018, 2017 and 2016, income tax benefits attributable to equity-based compensation transactions exceeded the amounts recorded based on grant date fair value. In fiscal years 2018 and 2017, respectively, $52 million and $125 million of income tax benefits were credited to “Income taxes” in the Consolidated Statements of Income following the adoption of new accounting guidance and in fiscal year 2016, $207 million was credited to shareholders’ equity.
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Pension and Other Benefit Programs |
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Dec. 29, 2018 |
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension and Other Benefit Programs | Pension and Other Benefit Programs The components of net periodic benefit cost are as follows:
On September 30, 2018, the Company adopted a FASB standard on the presentation of the components of net periodic pension and postretirement benefit cost (“net periodic benefit cost”). This standard requires the Company to present the service cost component of net periodic benefit cost in the same line items on the statement of operations as other compensation costs of the related employees (i.e. “Costs and expense” in the Condensed Consolidated Statement of Income). All of the other components of net periodic benefit cost (“other costs / benefits”) are presented as a component of “Interest expense, net” in the Condensed Consolidated Statement of Income (see Note 5). The other costs / benefits in fiscal 2018 were not material and are reported in Costs and expenses. During the quarter ended December 29, 2018, the Company did not make material contributions to its pension and postretirement medical plans. The Company expects total pension and postretirement medical plan contributions in fiscal 2019 of approximately $600 million to $700 million. However, final funding amounts for fiscal 2019 will be assessed based on our January 1, 2019 funding actuarial valuation, which will be available in the fourth quarter of fiscal 2019.
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Pension and Other Benefit Programs The Company maintains pension and postretirement medical benefit plans covering certain of its employees not covered by union or industry-wide plans. The Company’s defined benefit pension plans cover employees hired prior to January 1, 2012. For employees hired after this date, the Company has a defined contribution plan. Benefits under these pension plans are generally based on years of service and/or compensation and generally require 3 years of vesting service. Employees generally hired after January 1, 1987 for certain of our media businesses and other employees generally hired after January 1, 1994 are not eligible for postretirement medical benefits. Defined Benefit Plans The Company measures the actuarial value of its benefit obligations and plan assets for its defined benefit pension and postretirement medical benefit plans at September 30 and adjusts for any plan contributions or significant events between September 30 and our fiscal year end. The following chart summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with the defined benefit pension and postretirement medical benefit plans:
The components of net periodic benefit cost are as follows:
In fiscal 2019, we expect pension and postretirement medical costs to decrease by $87 million to $243 million due to a decrease in the amount of deferred net actuarial losses that will be recognized in fiscal 2019 compared to fiscal 2018. Starting in fiscal 2019, the Company will be adopting new accounting guidance that requires the presentation of components of net periodic benefit costs, other than service cost, in an income statement line item outside of a subtotal of income from operations (see Note 18 for further details).
Assumed mortality is also a key assumption in determining benefit obligations. AOCI, before tax, as of September 29, 2018 consists of the following amounts that have not yet been recognized in net periodic benefit cost:
Amounts included in AOCI, before tax, as of September 29, 2018 that are expected to be recognized as components of net periodic benefit cost during fiscal 2019 are:
Plan Funded Status The projected benefit obligation, accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $1.1 billion, $1.0 billion and $3 million, respectively, as of September 29, 2018 and $8.5 billion, $7.7 billion and $6.4 billion, respectively, as of September 30, 2017. For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and aggregate fair value of plan assets were $12.0 billion and $10.1 billion, respectively, as of September 29, 2018 and $12.8 billion and $10.5 billion respectively, as of September 30, 2017. The Company’s total accumulated pension benefit obligations at September 29, 2018 and September 30, 2017 were $13.3 billion and $13.4 billion, respectively. Approximately 99% was vested as of both dates. The accumulated postretirement medical benefit obligations and fair value of plan assets for postretirement medical plans with accumulated postretirement medical benefit obligations in excess of plan assets were $1.6 billion and $0.7 billion, respectively, at September 29, 2018 and $1.7 billion and $0.7 billion, respectively, at September 30, 2017. Plan Assets A significant portion of the assets of the Company’s defined benefit plans are managed in a third-party master trust. The investment policy and allocation of the assets in the master trust were approved by the Company’s Investment and Administrative Committee, which has oversight responsibility for the Company’s retirement plans. The investment policy ranges for the major asset classes are as follows:
The primary investment objective for the assets within the master trust is the prudent and cost effective management of assets to satisfy benefit obligations to plan participants. Financial risks are managed through diversification of plan assets, selection of investment managers and through the investment guidelines incorporated in investment management agreements. Investments are monitored to assess whether returns are commensurate with risks taken. The long-term asset allocation policy for the master trust was established taking into consideration a variety of factors that include, but are not limited to, the average age of participants, the number of retirees, the duration of liabilities and the expected payout ratio. Liquidity needs of the master trust are generally managed using cash generated by investments or by liquidating securities. Assets are generally managed by external investment managers pursuant to investment management agreements that establish permitted securities and risk controls commensurate with the account’s investment strategy. Some agreements permit the use of derivative securities (futures, options, interest rate swaps, credit default swaps) that enable investment managers to enhance returns and manage exposures within their accounts. Fair Value Measurements of Plan Assets Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is generally classified in one of the following categories of the fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable Investments that are valued using the net asset value (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The following is a description of the valuation methodologies used for assets reported at fair value. The methodologies used at September 29, 2018 and September 30, 2017 are the same. Level 1 investments are valued based on reported market prices on the last trading day of the fiscal year. Investments in common and preferred stocks are valued based on an exchange-listed price or a broker’s quote in an active market. Investments in U.S. Treasury securities are valued based on a broker’s quote in an active market. Level 2 investments in government and federal agency bonds, corporate bonds and mortgage-backed securities (MBS) and asset-backed securities are valued using a broker’s quote in a non-active market or an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates. Derivative financial instruments are valued based on models that incorporate observable inputs for the underlying securities, such as interest rates or foreign currency exchange rates. The Company’s defined benefit plan assets are summarized by level in the following tables:
Uncalled Capital Commitments Alternative investments held by the master trust include interests in funds that have rights to make capital calls to the investors. In such cases, the master trust would be contractually obligated to make a cash contribution at the time of the capital call. At September 29, 2018, the total committed capital still uncalled and unpaid was $1.0 billion. Plan Contributions During fiscal 2018, the Company made contributions to its pension and postretirement medical plans totaling $380 million. At November 21, 2018, the Company expected to make approximately $250 million to $300 million of pension and postretirement medical plan contributions in fiscal 2019. Final minimum funding requirements for fiscal 2019 will be determined based on a January 1, 2019 funding actuarial valuation, which is expected to be received during the fourth quarter of fiscal 2019. Estimated Future Benefit Payments The following table presents estimated future benefit payments for the next ten fiscal years:
Assumptions Assumptions, such as discount rates, long-term rate of return on plan assets and the healthcare cost trend rate, have a significant effect on the amounts reported for net periodic benefit cost as well as the related benefit obligations. Discount Rate — The assumed discount rate for pension and postretirement medical plans reflects the market rates for high-quality corporate bonds currently available. The Company’s discount rate was determined by considering yield curves constructed of a large population of high-quality corporate bonds and reflects the matching of the plans’ liability cash flows to the yield curves. The Company measures service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. Long-term rate of return on plan assets — The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and alternative investments. When determining the long-term rate of return on plan assets, the Company considers long-term rates of return on the asset classes (both historical and forecasted) in which the Company expects the pension funds to be invested. The following long-term rates of return by asset class were considered in setting the long-term rate of return on plan assets assumption:
Healthcare cost trend rate — The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates for the postretirement medical benefit plans. The 2018 actuarial valuation assumed a 7.00% annual rate of increase in the per capita cost of covered healthcare claims with the rate decreasing in even increments over fourteen years until reaching 4.25%. Sensitivity — A one percentage point (ppt) change in the key assumptions would have the following effects on the projected benefit obligations for pension and postretirement medical plans as of September 29, 2018 and on cost for fiscal 2019:
Multiemployer Benefit Plans The Company participates in a number of multiemployer pension plans under union and industry-wide collective bargaining agreements that cover our union-represented employees and expenses its contributions to these plans as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans. For example:
The Company also participates in several multiemployer health and welfare plans that cover both active and retired employees. Health care benefits are provided to participants who meet certain eligibility requirements under the applicable collective bargaining unit. The following table sets forth our contributions to multiemployer pension and health and welfare benefit plans that were expensed during the fiscal years 2018, 2017 and 2016, respectively:
Defined Contribution Plans The Company has defined contribution retirement plans for domestic employees who began service after December 31, 2011 and are not eligible to participate in the defined benefit pension plans. In general, the Company contributes from 3% to 9% of an employee’s compensation depending on the employee’s age and years of service with the Company up to plan limits. The Company has savings and investment plans that allow eligible employees to contribute up to 50% of their salary through payroll deductions depending on the plan in which the employee participates. The Company matches 50% of the employee’s contribution up to plan limits. In fiscal years 2018, 2017 and 2016, the costs of these defined contribution plans were $162 million, $143 million and $131 million, respectively. The Company also has defined contribution retirement plans for employees in our international operations. The costs of these defined contribution plans were $21 million, $20 million and $19 million in fiscal years 2018, 2017 and 2016, respectively.
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Equity |
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| Equity | Equity The Company paid the following dividends in fiscal 2019 and 2018:
During the quarter ended December 29, 2018, the Company did not purchase any of its common stock to hold as treasury shares. As of December 29, 2018, the Company had remaining authorization in place to repurchase approximately 158 million shares of common stock. The repurchase program does not have an expiration date. As of September 29, 2018 and December 29, 2018 the Company had 100 million preferred series A shares authorized with a $0.01 par value, of which none are issued. As of September 29, 2018, the Company had 40 thousand preferred series B shares authorized with $0.01 par value, which were canceled during the quarter ended December 29, 2018. 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:
In addition, on September 30, 2018, the Company adopted a FASB standard, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings. Details about AOCI components reclassified to net income are as follows:
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Equity The Company paid the following dividends in fiscal 2018, 2017 and 2016:
The Company repurchased its common stock in fiscal 2018, 2017 and 2016 as follows:
On January 30, 2015, the Company’s Board of Directors increased the amount of shares that can be repurchased to 400 million shares as of that date. As of September 29, 2018, the Company had remaining authorization in place to repurchase 158 million additional shares. The repurchase program does not have an expiration date. In fiscal 2018 and 2017 there were 100 million preferred series A shares authorized with a $0.01 par value. In March 2018, the Company’s Board of Directors authorized 40 thousand preferred series B shares with $0.01 par value. There are no shares issued under the series A or series B preferred shares. The following table summarizes the changes in each component of AOCI including our proportional share of equity method investee amounts:
Details about AOCI components reclassified to net income are as follows:
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Equity-Based Compensation |
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-Based Compensation | Equity-Based Compensation Compensation expense related to stock options and restricted stock units (RSUs) is as follows:
Unrecognized compensation cost related to unvested stock options and RSUs was $209 million and $735 million, respectively, as of December 29, 2018. The weighted average grant date fair values of options granted during the quarter ended December 29, 2018 and December 30, 2017 were $28.72 and $28.01, respectively. During the quarter ended December 29, 2018, the Company made equity compensation grants consisting of 3.8 million stock options and 3.2 million RSUs.
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Equity-Based Compensation Under various plans, the Company may grant stock options and other equity-based awards to executive, management and creative personnel. The Company’s approach to long-term incentive compensation contemplates awards of stock options and restricted stock units (RSUs). Certain RSUs awarded to senior executives vest based upon the achievement of market or performance conditions (Performance RSUs). Stock options are generally granted at exercise prices equal to or exceeding the market price at the date of grant and become exercisable ratably over a four-year period from the grant date. The contractual terms for our outstanding stock option grants are 10 years. At the discretion of the Compensation Committee of the Company’s Board of Directors, options can occasionally extend up to 15 years after date of grant. RSUs generally vest ratably over four years and Performance RSUs generally fully vest after three years, subject to achieving market or performance conditions. Equity-based award grants generally provide continued vesting, in the event of termination, for employees that reach age 60 or greater, have at least ten years of service and have held the award for at least one year. Each share granted subject to a stock option award reduces the number of shares available under the Company’s stock incentive plans by one share while each share granted subject to a RSU award reduces the number of shares available by two shares. As of September 29, 2018, the maximum number of shares available for issuance under the Company’s stock incentive plans (assuming all the awards are in the form of stock options) was approximately 55 million shares and the number available for issuance assuming all awards are in the form of RSUs was approximately 28 million shares. The Company satisfies stock option exercises and vesting of RSUs with newly issued shares. Stock options and RSUs are generally forfeited by employees who terminate prior to vesting. Each year, generally during the first half of the year, the Company awards stock options and restricted stock units to a broad-based group of management and creative personnel. The fair value of options is estimated based on the binomial valuation model. The binomial valuation model takes into account variables such as volatility, dividend yield and the risk-free interest rate. The binomial valuation model also considers the expected exercise multiple (the multiple of exercise price to grant price at which exercises are expected to occur on average) and the termination rate (the probability of a vested option being canceled due to the termination of the option holder) in computing the value of the option. In fiscal years 2018, 2017 and 2016, the weighted average assumptions used in the option-valuation model were as follows:
Although the initial fair value of stock options is not adjusted after the grant date, changes in the Company’s assumptions may change the value of, and therefore the expense related to, future stock option grants. The assumptions that cause the greatest variation in fair value in the binomial valuation model are the expected volatility and expected exercise multiple. Increases or decreases in either the expected volatility or expected exercise multiple will cause the binomial option value to increase or decrease, respectively. The volatility assumption considers both historical and implied volatility and may be impacted by the Company’s performance as well as changes in economic and market conditions. Compensation expense for RSUs and stock options is recognized ratably over the service period of the award. Compensation expense for RSUs is based on the market price of the shares underlying the awards on the grant date. Compensation expense for Performance RSUs reflects the estimated probability that the market or performance conditions will be met. The impact of stock options and RSUs on income and cash flows for fiscal years 2018, 2017 and 2016, was as follows:
The following table summarizes information about stock option transactions (shares in millions):
The following tables summarize information about stock options vested and expected to vest at September 29, 2018 (shares in millions):
The following table summarizes information about RSU transactions (shares in millions):
(1) Includes 1.1 million Performance RSUs. (2) Includes 1.4 million Performance RSUs. The weighted average grant-date fair values of options granted during fiscal 2018, 2017 and 2016 were $28.01, $25.65 and $30.93, respectively. The total intrinsic value (market value on date of exercise less exercise price) of options exercised and RSUs vested during fiscal 2018, 2017 and 2016 totaled $585 million, $757 million and $981 million, respectively. The aggregate intrinsic values of stock options vested and expected to vest at September 29, 2018 were $684 million and $78 million, respectively. As of September 29, 2018, unrecognized compensation cost related to unvested stock options and RSUs was $122 million and $455 million, respectively. That cost is expected to be recognized over a weighted-average period of 1.6 years for stock options and 1.7 years for RSUs. Cash received from option exercises for fiscal 2018, 2017 and 2016 was $210 million, $276 million and $259 million, respectively. Tax benefits realized from tax deductions associated with option exercises and RSUs vesting for fiscal 2018, 2017 and 2016 was $159 million, $264 million and $342 million, respectively.
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Detail of Certain Balance Sheet Accounts |
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| Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Detail of Certain Balance Sheet Accounts | Detail of Certain Balance Sheet Accounts
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Commitments and Contingencies |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company, together with, in some instances, certain of its directors and officers, is a defendant in various legal actions involving copyright, breach of contract and various other claims incident to the conduct of its businesses. Management does not believe that the Company has incurred a probable material loss by reason of any of those actions. Contractual Guarantees The Company has guaranteed bond issuances by the Anaheim Public Authority that were used by the City of Anaheim to finance construction of infrastructure and a public parking facility adjacent to the Disneyland Resort. Revenues from sales, occupancy and property taxes from the Disneyland Resort and non-Disney hotels are used by the City of Anaheim to repay the bonds, which mature in 2037. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of December 29, 2018, the remaining debt service obligation guaranteed by the Company was $296 million. To the extent that tax revenues exceed the debt service payments subsequent to the Company funding a shortfall, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. Commitments The Company is committed to make a capital contribution of approximately $645 million to Hulu LLC in calendar year 2019. Long-Term Receivables and the Allowance for Credit Losses The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties. Allowances for credit losses are established against these receivables as necessary. The Company estimates the allowance for credit losses related to receivables from the sale of film and television programs based upon a number of factors, including historical experience and the financial condition of individual companies with which we do business. The balance of film and television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $0.9 billion as of December 29, 2018. The activity for the quarters ended December 29, 2018 and December 30, 2017 related to the allowance for credit losses was not material. The Company estimates the allowance for credit losses related to receivables from sales of its vacation club properties based primarily on historical collection experience. Estimates of uncollectible amounts also consider the economic environment and the age of receivables. The balance of mortgage receivables recorded in other non-current assets, net of a related allowance for credit losses of approximately 4%, was $0.7 billion as of December 29, 2018. The activity for the quarters ended December 29, 2018 and December 30, 2017 related to the allowance for credit losses was not material.
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Commitments and Contingencies Commitments The Company has various contractual commitments for broadcast rights for sports, feature films and other programming, totaling approximately $44.6 billion, including approximately $0.4 billion for available programming as of September 29, 2018, and approximately $42.5 billion related to sports programming rights, primarily for college football (including bowl games and the College Football Playoff) and basketball, NBA, NFL, MLB, UFC, US Open Tennis, Top Rank Boxing, the PGA Championship and various soccer rights. The Company has entered into operating leases for various real estate and equipment needs, including retail outlets and distribution centers for consumer products, broadcast equipment and office space for general and administrative purposes. Rental expense for operating leases during fiscal years 2018, 2017 and 2016, including common-area maintenance and contingent rentals, was $930 million, $868 million and $847 million, respectively. The Company also has contractual commitments for the construction of three new cruise ships, creative talent and employment agreements and unrecognized tax benefits. Creative talent and employment agreements include obligations to actors, producers, sports, television and radio personalities and executives. Contractual commitments for broadcast programming rights, future minimum lease payments under non-cancelable operating leases, cruise ships, creative talent and other commitments totaled $55.5 billion at September 29, 2018, payable as follows:
Certain contractual commitments, principally broadcast programming rights and operating leases, have payments that are variable based primarily on revenues and are not included in the table above. The Company has non-cancelable capital leases, primarily for land and broadcast equipment, which had gross carrying values of $371 million and $466 million at September 29, 2018 and September 30, 2017, respectively. Accumulated amortization related to these capital leases totaled $164 million and $233 million at September 29, 2018 and September 30, 2017, respectively. Future payments under these leases as of September 29, 2018 are as follows:
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 the above actions. Contractual Guarantees The Company has guaranteed bond issuances by the Anaheim Public Authority that were used by the City of Anaheim to finance construction of infrastructure and a public parking facility adjacent to the Disneyland Resort. Revenues from sales, occupancy and property taxes from the Disneyland Resort and non-Disney hotels are used by the City of Anaheim to repay the bonds, which mature in 2037. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of September 29, 2018, the remaining debt service obligation guaranteed by the Company was $296 million. To the extent that tax revenues exceed the debt service payments subsequent to the Company funding a shortfall, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for these bonds. The Company has guaranteed $113 million of Hulu’s $338 million term loan, which expires in August 2022. The Company is also committed to make a capital contribution of approximately $450 million to Hulu in calendar 2018. For the year ended September 29, 2018, the Company made contributions of $341 million against this commitment. Long-Term Receivables and the Allowance for Credit Losses The Company has accounts receivable with original maturities greater than one year related to the sale of television program rights and vacation ownership units. Allowances for credit losses are established against these receivables as necessary. The Company estimates the allowance for credit losses related to receivables from the sale of television programs based upon a number of factors, including historical experience and the financial condition of individual companies with which we do business. The balance of television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $1.0 billion as of September 29, 2018. Fiscal 2018 activity related to the allowance for credit losses was not material. The Company estimates the allowance for credit losses related to receivables from sales of its vacation ownership units based primarily on historical collection experience. Estimates of uncollectible amounts also consider the economic environment and the age of receivables. The balance of mortgage receivables recorded in other non-current assets, net of a related allowance for credit losses of approximately 4%, was $0.7 billion as of September 29, 2018. Fiscal 2018 activity related to the allowance for credit losses was not material.
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Fair Value Measurement |
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | 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:
The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, did not have a material impact on derivative fair value estimates. Level 2 borrowings, which include commercial paper, U.S. and European medium-term 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.
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Fair Value Measurement The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level. See Note 10 for definitions of fair value measures and the Levels within the fair value hierarchy.
The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, did not have a material impact on derivative fair value estimates. Level 2 borrowings, which include commercial paper and U.S. medium-term notes, are valued based on quoted prices for similar instruments in active markets. Level 3 borrowings include Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as historical market transactions and prevailing market interest rates. Level 3 borrowings at September 30, 2017 also include borrowings in connection with the acquisition of BAMTech, which were paid in January 2018. The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment. Goodwill and indefinite lived intangible assets must be evaluated at least annually. During fiscal 2018, the Company recorded impairment charges for two equity investments that had a fair value of $392 million and a carrying value of $602 million. The fair value reflected the estimated discounted future cash flows, which is a Level 3 valuation technique. The impairment of $210 million was recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statements of Income. During fiscal 2017, the Company recorded film production cost impairment charges of $115 million, which were reported in “Cost of services” in the Consolidated Statements of Income. At September 30, 2017, the aggregate carrying value of the films for which we prepared the fair value analyses was $143 million. The film impairment charges reflected the excess of the unamortized cost of the impaired films over their estimated fair value using estimated discounted future cash flows. Credit Concentrations The Company monitors its positions with, and the credit quality of, the financial institutions that are counterparties to its financial instruments on an ongoing basis and does not currently anticipate nonperformance by the counterparties. The Company does not expect that it would realize a material loss, based on the fair value of its derivative financial instruments as of September 29, 2018, in the event of nonperformance by any single derivative counterparty. The Company generally enters into derivative transactions only with counterparties that have a credit rating of A- or better and requires collateral in the event credit ratings fall below A- or aggregate exposures exceed limits as defined by contract. In addition, the Company limits the amount of investment credit exposure with any one institution. The Company does not have material cash and cash equivalent balances with financial institutions that have below investment grade credit ratings and maintains short-term liquidity needs in high quality money market funds. As of September 29, 2018, the Company did not have balances (excluding money market funds) with individual financial institutions that exceeded 10% of the Company’s total cash and cash equivalents. The Company’s trade receivables and financial investments do not represent a significant concentration of credit risk at September 29, 2018 due to the wide variety of customers and markets in which the Company’s products are sold, the dispersion of our customers across geographic areas and the diversification of the Company’s portfolio among financial institutions.
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Derivative Instruments |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments | Derivative Instruments The Company manages its exposure to various risks relating to its ongoing business operations according to a risk management policy. The primary risks managed with derivative instruments are interest rate risk and foreign exchange risk. The Company’s derivative positions measured at fair value are summarized in the following tables:
Interest Rate Risk Management The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows and on the market value of its borrowings. In accordance with its policy, the Company targets its fixed-rate debt as a percentage of its net debt between a minimum and maximum percentage. The Company primarily uses pay-floating and pay-fixed interest rate swaps to facilitate its interest rate risk management activities. The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable rate borrowings indexed to LIBOR. As of December 29, 2018 and September 29, 2018, the total notional amount of the Company’s pay-floating interest rate swaps was $7.5 billion and $7.6 billion, respectively. The following table summarizes fair value hedge adjustments to hedged borrowings at December 29, 2018 and September 29, 2018:
The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income:
The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in AOCI and recognized in interest expense as the interest payments occur. The Company did not have pay-fixed interest rate swaps that were designated as cash flow hedges of interest payments at December 29, 2018 or at September 29, 2018, and gains and losses related to pay-fixed swaps recognized in earnings for the quarter ended December 29, 2018 and December 30, 2017 were not material. To facilitate its interest rate risk management activities, the Company sold options in November 2016, October 2017 and April 2018 to enter into a future pay-floating interest rate swaps indexed to LIBOR for $2.0 billion in future borrowings. The fair values of these contracts as of December 29, 2018 or at September 29, 2018 were not material. The options are not designated as hedges and do not qualify for hedge accounting; accordingly, changes in their fair value are recorded in earnings. Gains and losses on the options for the quarters ended December 29, 2018 and December 30, 2017 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 December 29, 2018 and September 29, 2018, the notional amounts of the Company’s net foreign exchange cash flow hedges were $6.1 billion and $6.2 billion, respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months total $147 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter ended December 29, 2018:
Foreign exchange risk management contracts with respect to foreign currency denominated assets and liabilities are not designated as hedges and do not qualify for hedge accounting. The notional amounts of these foreign exchange contracts at December 29, 2018 and September 29, 2018 were $2.4 billion and $3.3 billion, respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter ended December 29, 2018 and December 30, 2017 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income:
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 December 29, 2018 and September 29, 2018 and related gains or losses recognized in earnings for the quarter ended December 29, 2018 and December 30, 2017 were not material. Risk Management – Other Derivatives Not Designated as Hedges The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The notional amount and fair value of these contracts at December 29, 2018 and September 29, 2018 were not material. The related gains or losses recognized in earnings for the quarter ended December 29, 2018 and December 30, 2017 were not material. Contingent Features and Cash Collateral The Company has master netting arrangements by counterparty with respect to certain derivative financial instrument contracts. The Company may be required to post collateral in the event that a net liability position with a counterparty exceeds limits defined by contract and that vary with the Company’s credit rating. In addition, these contracts may require a counterparty to post collateral to the Company in the event that a net receivable position with a counterparty exceeds limits defined by contract and that vary with the counterparty’s credit rating. If the Company’s or the counterparty’s credit ratings were to fall below investment grade, such counterparties or the Company would also have the right to terminate our derivative contracts, which could lead to a net payment to or from the Company for the aggregate net value by counterparty of our derivative contracts. The aggregate fair values of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty were $267 million and $299 million on December 29, 2018 and September 29, 2018, respectively.
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Derivative Instruments The Company manages its exposure to various risks relating to its ongoing business operations according to a risk management policy. The primary risks managed with derivative instruments are interest rate risk and foreign exchange risk. The Company’s derivative positions measured at fair value are summarized in the following tables:
Interest Rate Risk Management The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows and on the market value of its borrowings. In accordance with its policy, the Company targets its fixed-rate debt as a percentage of its net debt between a minimum and maximum percentage. The Company primarily uses pay-floating and pay-fixed interest rate swaps to facilitate its interest rate risk management activities. The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable rate borrowings indexed to LIBOR. As of September 29, 2018 and September 30, 2017, the total notional amount of the Company’s pay-floating interest rate swaps was $7.6 billion and $8.2 billion, respectively. The following table summarizes adjustments related to fair value hedges included in “Interest expense, net” in the Consolidated Statements of Income.
In addition, the Company realized net expense of $15 million during fiscal 2018 and net benefits of $35 million and $94 million for fiscal years 2017 and 2016, respectively, in “Interest expense, net” related to pay-floating interest rate swaps. The Company may designate pay-fixed interest rate swaps as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in AOCI and recognized in interest expense as the interest payments occur. The Company did not have pay-fixed interest rate swaps that were designated as cash flow hedges of interest payments at September 29, 2018 or at September 30, 2017, and gains and losses related to pay-fixed swaps recognized in earnings for fiscal years 2018, 2017 and 2016 were not material. To facilitate its interest rate risk management activities, the Company sold options in November 2016, October 2017 and April 2018 to enter into a future pay-floating interest rate swaps indexed to LIBOR for $2.0 billion in future borrowings. The fair values of these contracts were $81 million and $16 million at September 29, 2018 and September 30, 2017, respectively. The options are not designated as hedges and do not qualify for hedge accounting; accordingly, changes in their fair value are recorded in earnings. 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, Canadian dollar, Chinese yuan and British pound. 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 September 29, 2018 and September 30, 2017, the notional amounts of the Company’s net foreign exchange cash flow hedges were $6.2 billion and $6.3 billion, respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Gains and losses recognized related to ineffectiveness for fiscal years 2018, 2017 and 2016 were not material. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months totaled $92 million. 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 September 29, 2018 and September 30, 2017 were $3.3 billion and $3.6 billion, respectively. The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for fiscal years 2018, 2017 and 2016 by the corresponding line item in which they are recorded in the Consolidated Statements of Income:
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 September 29, 2018 and September 30, 2017 and related gains or losses recognized in earnings were not material for fiscal years 2018, 2017 and 2016. Risk Management – Other Derivatives Not Designated as Hedges The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The notional amount and fair value of these contracts at September 29, 2018 and September 30, 2017 were not material. The related gains or losses recognized in earnings were not material for fiscal years 2018, 2017 and 2016. 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 $299 million and $217 million at September 29, 2018 and September 30, 2017, respectively.
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Restructuring and Impairment Charges |
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Restructuring and Related Activities [Abstract] | ||
| Restructuring and Impairment Charges | Restructuring and Impairment Charges The Company recorded $33 million, $98 million and $156 million of restructuring and impairment charges in fiscal years 2018, 2017 and 2016, respectively. Charges in fiscal 2018 were due to severance costs. Charges in fiscal 2017 were due to severance costs and asset impairments. Charges in fiscal 2016 were due to asset impairments and severance and contract termination costs.
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| Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Impairment Charges and Other Income For the quarter ended December 30, 2017, the Company recorded $15 million of restructuring and impairment charges, primarily for severance costs, and a $53 million gain from the sale of property rights.
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New Accounting Pronouncements New Accounting Pronouncements |
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| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of New Accounting Pronouncements Not yet Adopted [Text Block] | New Accounting Pronouncements Accounting Pronouncements Adopted in Fiscal 2019
Leases In February 2016, the FASB issued a new lease accounting standard, which requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. The standard is effective at the beginning of the Company’s 2020 fiscal year. We expect to adopt the standard without restating prior periods. The new standard provides a number of practical expedients for transition upon adoption. The Company expects to elect the practical expedients that permit the Company not to reassess its prior conclusions concerning whether:
The Company is currently assessing the impact of the new standard on its financial statements. We believe the most significant effects of adoption will be:
As of September 29, 2018, the Company had an estimated $3.6 billion in undiscounted future minimum lease commitments.
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New Accounting Pronouncements Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the Financial Accounting Standards Board (FASB) issued guidance as a result of the Tax Act to permit the reclassification of certain tax effects from AOCI to retained earnings. Current accounting guidance requires that adjustments to deferred tax assets and liabilities for changes in enacted tax rates be recorded through income from continuing operations even if the deferred taxes were originally established through comprehensive income. The new guidance allows companies to make a one-time election to reclassify the tax effects resulting from the Tax Act on items in AOCI to retained earnings. The new guidance is effective beginning with the first quarter of the Company’s 2020 fiscal year (with early adoption permitted). The guidance should be applied either retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized or as a cumulative adjustment in the first period of adoption. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued guidance to improve certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. The Company will adopt the standard in the first quarter of fiscal 2019. The adoption will not have a material impact on our consolidated financial statements as our historical hedging ineffectiveness has been immaterial. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued guidance that requires presentation of the components of net periodic pension and postretirement benefit costs other than service costs, in an income statement line item outside of a subtotal of income from operations. The service cost component will continue to be presented in the same line items as other employee compensation costs. In addition, under the guidance only service costs are eligible for capitalization, for example, as part of a self-constructed fixed asset or a film production. The Company will adopt the standard in the first quarter of fiscal 2019. The adoption will not have a material impact on our consolidated financial statements. The guidance is required to be adopted retrospectively with respect to income statement presentation and prospectively for the capitalization requirement. See Note 10 for the amount of each component of net periodic pension and postretirement benefit costs we have reported historically. These amounts of net periodic pension and postretirement benefit costs are not necessarily indicative of amounts that may arise in future fiscal years. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued guidance that requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs instead of when the asset is ultimately sold to an outside party. The Company will adopt the standard in the first quarter of fiscal 2019. The adoption will not have a material impact on our consolidated financial statements. The guidance requires prospective adoption with a cumulative-effect adjustment to retained earnings at the beginning of fiscal 2019. Leases In February 2016, the FASB issued a new lease accounting standard, which requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. The Company is currently assessing the impact of the new guidance on its financial statements. The standard can be adopted either as of the effective date without restating prior periods or retrospectively by restating prior periods. The guidance is effective at the beginning of the Company’s 2020 fiscal year (with early adoption permitted). As of September 29, 2018, the Company had an estimated $3.6 billion in undiscounted future minimum lease commitments. Revenue from Contracts with Customers In May 2014, the FASB issued guidance that replaces the existing accounting standards for revenue recognition with a single comprehensive five-step model, eliminating industry-specific accounting rules. The core principle is to recognize revenue upon the transfer of control of goods or services to customers at an amount that reflects the consideration expected to be received. Since its issuance, the FASB has amended several aspects of the new guidance, including provisions that address revenue recognition associated with the licensing of intellectual property. The new guidance, including the amendments, is effective at the beginning of the Company’s 2019 fiscal year. We have reviewed our significant revenue streams and identified required changes to our revenue recognition policies. While not material, the more significant changes to the Company’s revenue recognition policies are in the following areas:
We have developed processes to capture the information necessary for the expanded disclosures required under the new guidance, and implemented updates needed to our internal controls to support our new revenue recognition policies and disclosure requirements. The guidance may be adopted either by restating fiscal 2017 and 2018 to reflect the impact of the new guidance (full retrospective method) or by recording the impact of adoption as an adjustment to retained earnings at the beginning of fiscal 2019 (modified retrospective method). The Company will adopt the standard in the first quarter of fiscal 2019 using the modified retrospective method. The adoption will not have a material impact on our consolidated financial statements. The Company’s equity method investees are considered private companies for purposes of applying the new guidance and are not required to adopt the new standard until fiscal years beginning after December 15, 2018. Our significant equity method investees have substantially completed their assessment of the impact of adopting the new standard on their financial statements. We currently do not expect any material impacts to the Company’s consolidated financial statements upon the investees’ adoption of the new guidance.
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Condensed Consolidating Financial Information Condensed Consolidating Financial Information(Notes) |
Mar. 20, 2019 |
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| Condensed Financial Information of Parent Company Only Disclosure | Condensed Consolidating Financial Information On March 20, 2019, the Company completed its acquisition of 21CF and the Mergers (as described in Note 3), and the Company (referred to herein as “Legacy Disney”) and 21CF became subsidiaries of New Disney (referred to herein as “TWDC”). Legacy Disney has outstanding public debt that has been fully and unconditionally guaranteed by TWDC. In addition, Legacy Disney has provided a full and unconditional guarantee of debt held by TWDC. As of March 20, 2019, Legacy Disney is a 100% owned subsidiary of TWDC. Set forth below are condensed consolidating financial statements presenting the results of operations, financial position and cash flows of TWDC, Legacy Disney and non-guarantor subsidiaries on a combined basis along with eliminations necessary to arrive at the reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions. TWDC was formed in June 2018, was a subsidiary of Legacy Disney until March 20, 2019, and did not have any balances or activities prior to fiscal 2019. SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended September 29, 2018 (in millions)
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended September 30, 2017 (in millions)
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended October 1, 2016 (in millions)
CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018 (in millions)
CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2017 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 29, 2018 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 30, 2017 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended October 1, 2016 (in millions)
Condensed Consolidating Financial Information On March 20, 2019, the Company completed its acquisition of 21CF and the Mergers (as described in Note 4), and the Company (referred to herein as “Legacy Disney”) and 21CF became subsidiaries of New Disney (referred to herein as “TWDC”). Legacy Disney has outstanding public debt that has been fully and unconditionally guaranteed by TWDC. In addition, Legacy Disney has provided a full and unconditional guarantee of debt held by TWDC. As of March 20, 2019, Legacy Disney is a 100% owned subsidiary of TWDC. Set forth below are condensed consolidating financial statements presenting the results of operations, financial position and cash flows of TWDC, Legacy Disney and non-guarantor subsidiaries on a combined basis along with eliminations necessary to arrive at the reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions. TWDC was formed in June 2018, was a subsidiary of Legacy Disney until March 20, 2019, and did not have any balances or activities prior to fiscal 2019. SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended December 29, 2018
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended December 30, 2017
CONDENSED CONSOLIDATING BALANCE SHEET As of December 29, 2018
CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Quarter Ended December 29, 2018
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Quarter Ended December 30, 2017
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QUARTERLY FINANCIAL SUMMARY |
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| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY FINANCIAL SUMMARY | QUARTERLY FINANCIAL SUMMARY (in millions, except per share data)
(5) Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests.
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Summary of Significant Accounting Policies (Policies) |
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of The Walt Disney Company and its majority-owned or controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The Company enters into relationships or investments with other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (collectively 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.
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| Reporting Period | Reporting Period The Company’s fiscal year ends on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. When a fifty-three week year occurs, the Company reports the additional week in the fourth quarter. Fiscal 2018, 2017 and 2016 were fifty-two week years.
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| Reclassifications | Reclassifications Certain reclassifications have been made in the fiscal 2017 and fiscal 2016 financial statements and notes to conform to the fiscal 2018 presentation.
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| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates.
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| Revenues and Costs from Services and Products | Revenues and Costs from Services and Products The Company generates revenue from the sale of both services and tangible products and revenues and operating costs are classified under these two categories in the Consolidated Statements of Income. Certain costs related to both the sale of services and tangible products are not specifically allocated between the service or tangible product revenue streams but are instead attributed to the principal revenue stream. The cost of services and tangible products exclude depreciation and amortization. Significant service revenues include:
Significant operating costs related to the sale of services include:
Significant tangible product revenues include the sale of:
Significant operating costs related to the sale of tangible products include:
• Retail occupancy costs
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| Revenue Recognition | Summary of Significant Revenue Recognition Accounting Policies The Company generates revenue from the sale of both services and products. Revenue is recognized when control of the services or products is transferred to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for the services or products. The Company has three broad categories of service revenues: licenses of rights to use our intellectual property, sales to guests at our Parks and Experiences businesses, and advertising. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue standard defines two types of licenses of intellectual property (“IP”): IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters, visual and literary properties at the Parks, Experiences & Consumer Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows:
Affiliate contracts may include a minimum guaranteed license fee. For these contracts, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned.
TV/SVOD distribution contracts may contain more than one title and/or provide that certain titles are only available for use during defined periods of time during the contract term. In these instances, each title and/or period of availability is generally considered a separate performance obligation. For these contracts, license fees are allocated to each title and period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized when the content is made available for use by the licensee. For TV/SVOD licenses that include multiple titles subject to an aggregate minimum guaranteed license fee across all titles, the minimum guaranteed license fee is allocated to each title at contract inception and recognized as revenue when the title is available for use by the licensee. License fees earned in excess of the allocated minimum guarantee are deferred until the aggregate contractual minimum guaranteed license fee has been exceeded with the excess then recognized as earned. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension.
amount over actual royalties earned from licensee sales (shortfall) is recognized straight-line over the remaining license period once an expected shortfall is probable.
• Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue upon delivery of the product to the consumer. The related shipping expenses are recorded in cost of products upon delivery of the product to the customer.
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Revenue Recognition Television advertising revenues are recognized when commercials are aired. Affiliate fee revenue is recognized as services are provided based on per subscriber rates set out in agreements with Multi-channel Video Programming Distributors (MVPD) and the number of MVPD subscribers. Revenues from theme park ticket sales are recognized when the tickets are used. Revenues from annual pass sales are recognized ratably over the period for which the pass is available for use. Revenues from the theatrical distribution of motion pictures are recognized when motion pictures are exhibited. Revenues from home entertainment sales, net of anticipated returns and customer incentives, are recognized on the later of the delivery date or the date that the product can be sold by retailers. Revenues from the licensing of feature films and television programming are recorded when the content is available for telecast by the licensee and when certain other conditions are met. Revenues from the sale of electronic formats of feature films and television programming are recognized when the product is received by the consumer. Merchandise licensing advances and guarantee royalty payments are recognized based on the contractual royalty rate when the licensed product is sold by the licensee. Non-refundable advances and minimum guarantee royalty payments in excess of royalties earned are generally recognized as revenue at the end of the contract period. Revenues from our branded online and mobile operations are recognized as services are rendered. Advertising revenues at our internet operations or associated with the distribution of our video content online are recognized when advertisements are delivered online. Taxes collected from customers and remitted to governmental authorities are presented in the Consolidated Statements of Income on a net basis.
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| Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on our analysis of trends in overall receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and current economic trends.
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| Advertising Expense | Advertising Expense Advertising costs are expensed as incurred. Advertising expense for fiscal years 2018, 2017 and 2016 was $2.8 billion, $2.6 billion and $2.9 billion, respectively.
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| Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. The Company’s restricted cash balances are primarily made up of cash posted as collateral for certain derivative instruments. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows.
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| Investments | Investments Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost. Debt securities not classified as held-to-maturity and marketable equity securities are considered “available-for-sale” and recorded at fair value with unrealized gains and losses included in accumulated other comprehensive income/(loss) (AOCI). All other equity securities are accounted for using either the cost method or the equity method. The Company regularly reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary. If the decline in fair value is determined to be other-than-temporary, the cost basis of the investment is written down to fair value.
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| Translation Policy | Translation Policy The U.S. dollar is the functional currency for the majority of our international operations. Significant businesses where the local currency is the functional currency include the Asia Theme Parks, Disneyland Paris and international locations of The Disney Stores. For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at average exchange rates in effect during each period, except for those expenses related to the non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of AOCI.
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| Inventories | Inventories Inventory primarily includes vacation timeshare units, merchandise, food, materials and supplies. Carrying amounts of vacation ownership units are recorded at the lower of cost or net realizable value. Carrying amounts of merchandise, food, materials and supplies inventories are generally determined on a moving average cost basis and are recorded at the lower of cost or net realizable value.
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| Film and Television Costs | Film and Television Costs Film and television costs include capitalizable production costs, production overhead, interest, development costs and acquired programming costs and are stated at the lower of cost, less accumulated amortization, or fair value. Acquired programming costs for the Company’s cable and broadcast television networks are stated at the lower of cost, less accumulated amortization, or net realizable value. Acquired television broadcast program licenses and rights are recorded when the license period begins and the program is available for use. Marketing, distribution and general and administrative costs are expensed as incurred. Film and television production, participation and residual costs are expensed over the applicable product life cycle based upon the ratio of the current period’s revenues to estimated remaining total revenues (Ultimate Revenues) for each production. For film productions, Ultimate Revenues include revenues from all sources that will be earned within ten years from the date of the initial theatrical release. For television series, Ultimate Revenues include revenues that will be earned within ten years from delivery of the first episode, or if still in production, five years from delivery of the most recent episode, if later. For acquired film libraries, remaining revenues include amounts to be earned for up to twenty years from the date of acquisition. Costs of film and television productions are subject to regular recoverability assessments, which compare the estimated fair values with the unamortized costs. The Company bases these fair value measurements on the Company’s assumptions about how market participants would price the assets at the balance sheet date, which may be different than the amounts ultimately realized in future periods. The amount by which the unamortized costs of film and television productions exceed their estimated fair values is written off. Film development costs for projects that have been abandoned are written off. Projects that have not been set for production within three years are also written off unless management has committed to a plan to proceed with the project and is actively working on and funding the project. The costs of television broadcast rights for acquired series, movies and other programs are expensed based on the number of times the program is expected to be aired or on a straight-line basis over the useful life, as appropriate. Rights costs for multi-year sports programming arrangements are amortized during the applicable seasons based on the estimated relative value of each year in the arrangement. The estimated value of each year is based on our projections of revenues over the contract period, which include advertising revenue and an allocation of affiliate revenue. If the annual contractual payments related to each season approximate each season’s estimated relative value, we expense the related contractual payments during the applicable season. Individual programs are written off when there are no plans to air or sublicense the program. The net realizable values of network television broadcast program licenses and rights are reviewed for recoverability using a daypart methodology. A daypart is defined as an aggregation of programs broadcast during a particular time of day or programs of a similar type. The Company’s dayparts are: primetime, daytime, late night, news and sports (includes broadcast and cable networks). The net realizable values of other cable programming assets are reviewed on an aggregated basis for each cable network.
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| Internal-Use Software Costs | Internal-Use Software Costs The Company expenses costs incurred in the preliminary project stage of developing or acquiring internal use software, such as research and feasibility studies as well as costs incurred in the post-implementation/operational stage, such as maintenance and training. Capitalization of software development costs occurs only after the preliminary-project stage is complete, management authorizes the project and it is probable that the project will be completed and the software will be used for the function intended. As of September 29, 2018 and September 30, 2017, capitalized software costs, net of accumulated depreciation, totaled $659 million and $710 million, respectively. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software, ranging from 2-10 years.
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| Software Product Development Costs | Software Product Development Costs Software product development costs incurred prior to reaching technological feasibility are expensed. We have determined that technological feasibility of our video game software is generally not established until substantially all product development is complete.
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| Parks, Resorts and Other Property | Parks, Resorts and Other Property Parks, resorts and other property are carried at historical cost. Depreciation is computed on the straight-line method, generally over estimated useful lives as follows:
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| Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis. Goodwill is allocated to various reporting units, which are an operating segment or one level below the operating segment. The Company compares the fair value of each reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit. To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate. We apply what we believe to be the most appropriate valuation methodology for each of our reporting units. We include in the projected cash flows an estimate of the revenue we believe the reporting unit would receive if the intellectual property developed by the reporting unit that is being used by other reporting units was licensed to an unrelated third party at its fair market value. In times of adverse economic conditions in the global economy, the Company’s long-term cash flow projections are subject to a greater degree of uncertainty than usual. If we had established different reporting units or utilized different valuation methodologies or assumptions, the impairment test results could differ, and we could be required to record impairment charges. The Company is required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized for the excess. Fair values of other indefinite-lived intangible assets are determined based on discounted cash flows or appraised values, as appropriate. The Company has determined that there are currently no legal, competitive, economic or other factors that materially limit the useful life of our FCC licenses and trademarks. Amortizable intangible assets are generally amortized on a straight-line basis over periods up to 40 years. The costs to periodically renew our intangible assets are expensed as incurred. The Company tests long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount may not be recoverable. Once a triggering event has occurred, the impairment test employed is based on whether the intent is to hold the asset for continued use or to hold the asset for sale. The impairment test for assets held for use requires a comparison of cash flows expected to be generated over the useful life of an asset group to the carrying value of the asset group. An asset group is established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other assets and could include assets used across multiple businesses or segments. If the carrying value of an asset group exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the fair value of the group’s long-lived assets and the carrying value of the group’s long-lived assets. The impairment is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts, but only to the extent the carrying value of each asset is above its fair value. For assets held for sale, to the extent the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company tested its goodwill and other indefinite-lived intangible assets, long-lived assets and investments for impairment and recorded non-cash impairment charges of $210 million, $22 million and $7 million in fiscal years 2018, 2017 and 2016, respectively. The fiscal 2018 impairment charges related to equity investments and were recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statements of Income. The fiscal 2017 and 2016 impairment charges were recorded in “Restructuring and impairment charges” in the Consolidated Statements of Income. The Company expects its aggregate annual amortization expense for existing amortizable intangible assets for fiscal years 2019 through 2023 to be as follows:
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| Risk Management Contracts | Risk Management Contracts In the normal course of business, the Company employs a variety of financial instruments (derivatives) including interest rate and cross-currency swap agreements and forward and option contracts to manage its exposure to fluctuations in interest rates, foreign currency exchange rates and commodity prices. The Company formally documents all relationships between hedges and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company primarily enters into two types of derivatives: hedges of fair value exposure and hedges of cash flow exposure. Hedges of fair value exposure are entered into in order to hedge the fair value of a recognized asset, liability, or a firm commitment. Hedges of cash flow exposure are entered into in order to hedge a forecasted transaction (e.g. forecasted revenue) or the variability of cash flows to be paid or received, related to a recognized liability or asset (e.g. floating rate debt). The Company designates and assigns the derivatives as hedges of forecasted transactions, specific assets or specific liabilities. When hedged assets or liabilities are sold or extinguished or the forecasted transactions being hedged occur or are no longer expected to occur, the Company recognizes the gain or loss on the designated derivatives. The Company’s hedge positions are measured at fair value on the balance sheet. Realized gains and losses from hedges are classified in the income statement consistent with the accounting treatment of the items being hedged. The Company accrues the differential for interest rate swaps to be paid or received under the agreements as interest rates change as adjustments to interest expense over the lives of the swaps. Gains and losses on the termination of effective swap agreements, prior to their original maturity, are deferred and amortized to interest expense over the remaining term of the underlying hedged transactions. The Company enters into derivatives that are not designated as hedges and do not qualify for hedge accounting. These derivatives are intended to offset certain economic exposures of the Company and are carried at fair value with changes in value recorded in earnings. Cash flows from hedging activities are classified in the Consolidated Statements of Cash Flows under the same category as the cash flows from the related assets, liabilities or forecasted transactions (see Notes 8 and 16).
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| Income Taxes | Income Taxes Deferred income tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of available evidence, it is more likely than not that some amount of recorded deferred tax assets will not be realized, a valuation allowance is established for the amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized. A tax position must meet a minimum probability threshold before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.
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| Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing net income attributable to Disney by the weighted average number of common shares outstanding during the year. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the year, which is calculated using the treasury-stock method for equity-based awards (Awards). Common equivalent shares are excluded from the computation in periods for which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the calculation. A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows:
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Summary of Significant Revenue Recognition Accounting Policies (Policies) |
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Dec. 29, 2018 |
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| Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition, Policy | Summary of Significant Revenue Recognition Accounting Policies The Company generates revenue from the sale of both services and products. Revenue is recognized when control of the services or products is transferred to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for the services or products. The Company has three broad categories of service revenues: licenses of rights to use our intellectual property, sales to guests at our Parks and Experiences businesses, and advertising. The Company’s primary product revenues include the sale of food, beverage and merchandise at our parks, resorts and retail stores and the sale of film and television productions in physical formats (DVD and Blu-ray). The new revenue standard defines two types of licenses of intellectual property (“IP”): IP that has “standalone functionality,” which is called functional IP, and all other IP, which is called symbolic IP. Revenue related to the license of functional IP is generally recognized upon delivery (availability) of the IP to the customer. The substantial majority of the Company’s film and television content distribution activities at the Media Networks, Studio Entertainment and DTCI segments is considered licensing of functional IP. Revenue related to the license of symbolic IP is generally recognized over the term of the license. The Company’s primary revenue stream derived from symbolic IP is the licensing of trade names, characters, visual and literary properties at the Parks, Experiences & Consumer Products segment. More detailed information about the revenue recognition policies for our key revenues is as follows:
Affiliate contracts may include a minimum guaranteed license fee. For these contracts, the guaranteed license fee is recognized ratably over the guaranteed period and any fees earned in excess of the guarantee are recognized as earned once the minimum guarantee has been exceeded. Affiliate agreements may also include a license to use the network programming for on demand viewing. As the fees charged under these contracts are generally based on a contractually specified per subscriber rate for the number of underlying subscribers of the affiliate, revenues are recognized as earned.
TV/SVOD distribution contracts may contain more than one title and/or provide that certain titles are only available for use during defined periods of time during the contract term. In these instances, each title and/or period of availability is generally considered a separate performance obligation. For these contracts, license fees are allocated to each title and period of availability at contract inception based on relative standalone selling price using management’s best estimate. Revenue is recognized when the content is made available for use by the licensee. For TV/SVOD licenses that include multiple titles subject to an aggregate minimum guaranteed license fee across all titles, the minimum guaranteed license fee is allocated to each title at contract inception and recognized as revenue when the title is available for use by the licensee. License fees earned in excess of the allocated minimum guarantee are deferred until the aggregate contractual minimum guaranteed license fee has been exceeded with the excess then recognized as earned. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension.
amount over actual royalties earned from licensee sales (shortfall) is recognized straight-line over the remaining license period once an expected shortfall is probable.
• Shipping and handling - Fees collected from customers for shipping and handling are recorded as revenue upon delivery of the product to the consumer. The related shipping expenses are recorded in cost of products upon delivery of the product to the customer.
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Revenue Recognition Television advertising revenues are recognized when commercials are aired. Affiliate fee revenue is recognized as services are provided based on per subscriber rates set out in agreements with Multi-channel Video Programming Distributors (MVPD) and the number of MVPD subscribers. Revenues from theme park ticket sales are recognized when the tickets are used. Revenues from annual pass sales are recognized ratably over the period for which the pass is available for use. Revenues from the theatrical distribution of motion pictures are recognized when motion pictures are exhibited. Revenues from home entertainment sales, net of anticipated returns and customer incentives, are recognized on the later of the delivery date or the date that the product can be sold by retailers. Revenues from the licensing of feature films and television programming are recorded when the content is available for telecast by the licensee and when certain other conditions are met. Revenues from the sale of electronic formats of feature films and television programming are recognized when the product is received by the consumer. Merchandise licensing advances and guarantee royalty payments are recognized based on the contractual royalty rate when the licensed product is sold by the licensee. Non-refundable advances and minimum guarantee royalty payments in excess of royalties earned are generally recognized as revenue at the end of the contract period. Revenues from our branded online and mobile operations are recognized as services are rendered. Advertising revenues at our internet operations or associated with the distribution of our video content online are recognized when advertisements are delivered online. Taxes collected from customers and remitted to governmental authorities are presented in the Consolidated Statements of Income on a net basis.
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Description of the Business and Segment Information (Tables) |
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Dec. 29, 2018 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity In Income of Investees By Segment | Equity in the income/(loss) of investees is included in segment operating income as follows:
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Equity in the income of investees included in segment operating income is as follows:
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| Financial Information by Operating Segments |
During fiscal 2018, the Company recorded impairments of Vice and Villages Nature equity method investments. During fiscal 2016, the Company recognized its share of a net gain recorded by A+E, a joint venture owned 50% by the Company, in connection with A+E’s acquisition of an interest in Vice (Vice Gain). These items were recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statement of Income but were not included in segment operating income.
Intangible assets included in identifiable assets by segment are as follows:
(7) Long-lived assets are total assets less the following: current assets, long-term receivables, deferred taxes, financial investments and derivatives.
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| Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment revenues and segment operating income are as follows:
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| Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | A reconciliation of segment operating income to income before income taxes is as follows:
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Summary of Significant Accounting Policies (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Cash, Cash Equivalents and Restricted Cash [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows.
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| Depreciation Computed on Straight-Line Method Over Estimated Useful Lives | Depreciation is computed on the straight-line method, generally over estimated useful lives as follows:
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| Expected Aggregate Annual Amortization Expense for Existing Amortizable Intangible Assets | The Company expects its aggregate annual amortization expense for existing amortizable intangible assets for fiscal years 2019 through 2023 to be as follows:
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| Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Number of Awards Excluded from Diluted Earnings Per Share Calculation | A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows:
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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:
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Revenues (Tables) |
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Effect of Adoption on the Condensed Consolidated Balance Sheet | The cumulative effect of adoption at September 29, 2018 and the impact at December 29, 2018 (had we not applied the new revenue standard) on the Condensed Consolidated Balance Sheet is as follows:
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| Financial Statement Impact Presented Under Previous Guidance | The impact on the Condensed Consolidated Statement of Income for the quarter ended December 29, 2018, due to the adoption of the new revenue standard is as follows:
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| Disaggregation of Revenue by Major Source | The following table presents our revenues by segment and major source:
(1) The table presents our revenues by segment and major source under historical accounting.
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| Disaggregation of Revenue by Geographical Markets | The following table presents our revenues by segment and primary geographical markets:
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| Contract with Customer, Asset and Liability | Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows:
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Acquisitions (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the quarter ended December 29, 2018 are as follows:
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The changes in the carrying amount of goodwill for the years ended September 29, 2018 and September 30, 2017 are as follows:
(1) Other, net primarily represents the allocation of BAMTech goodwill to segments based on the final purchase price allocation and also includes the impact of updates to our initial estimated fair value of intangible assets related to BAMTech.
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Cash, Cash Equivalents, Restricted Cash and Borrowings (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows.
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| Borrowing Activity | During the quarter ended December 29, 2018, the Company’s borrowing activity was as follows:
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The Company’s borrowings at September 29, 2018 and September 30, 2017, including the impact of interest rate and cross-currency swaps, are summarized below:
(5) Includes market value adjustments for debt with qualifying hedges, which reduce borrowings by $304 million and $73 million at September 29, 2018 and September 30, 2017, respectively.
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| Line of Credit Facilities | The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
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The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
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| Interest Expense, net | Interest expense, interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 8) are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest):
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Dispositions and Other Income/(Expense) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income, net | Other income, net is as follows:
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Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Investments consist of the following:
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| Combined Financial Information for Equity Investments | The Company’s significant equity investments primarily consist of media and parks and resorts investments and include A + E (50% ownership), CTV Specialty Television, Inc. (30% ownership), Hulu (30% ownership), Seven TV (20% ownership), Vice (21% effective ownership including A+E ownership) and Villages Nature (50% ownership). A summary of combined financial information for equity investments is as follows:
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International Theme Parks (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
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| Consolidating Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets as of December 29, 2018 and September 29, 2018:
(1) Total assets of the Asia Theme Parks were $8 billion at both December 29, 2018 and September 29, 2018 including parks, resorts and other property of $7 billion. Total liabilities of the Asia Theme Parks were $2 billion at both December 29, 2018 and September 29, 2018.
|
The following table summarizes the carrying amounts of the International Theme Parks’ assets and liabilities included in the Company’s consolidated balance sheets as of September 29, 2018 and September 30, 2017:
(1) The total assets of the Asia Theme Parks were $8 billion at both September 29, 2018 and September 30, 2017 including parks, resorts and other property of $7 billion. The total liabilities of the Asia Theme Parks were $2 billion at both September 29, 2018 and September 30, 2017.
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| Consolidating Income Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of Consolidating Financial Statements of International Theme Parks | The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 29, 2018:
|
The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s consolidated statement of income for fiscal 2018:
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Earnings Per Share (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
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| 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:
|
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:
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Film and Television Costs and Advances (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Film And Television Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Film and Television Costs and Advances | Film and television costs and advances are as follows:
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Borrowings (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings including Impact of Interest Rate Swaps Designated as Hedges | During the quarter ended December 29, 2018, the Company’s borrowing activity was as follows:
|
The Company’s borrowings at September 29, 2018 and September 30, 2017, including the impact of interest rate and cross-currency swaps, are summarized below:
(5) Includes market value adjustments for debt with qualifying hedges, which reduce borrowings by $304 million and $73 million at September 29, 2018 and September 30, 2017, respectively.
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| Schedule of Commercial Paper | The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
|
The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:
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| Commercial Paper Activity | Commercial paper activity is as follows:
(1) Borrowings and reductions of borrowings are reported net.
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| Total Borrowings Excluding Market Value Adjustments, Scheduled Maturities | Total borrowings, excluding market value adjustments and debt issuance premiums, discounts and costs, have the following scheduled maturities:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Before Income Taxes |
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| Income Tax Expense / (Benefit) |
(1) Includes foreign withholding taxes (2) Includes the Deferred Remeasurement
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| Deferred Tax Assets and Liabilities |
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| Reconciliation of Effective Income Tax Rate to Federal Rate | A reconciliation of the effective income tax rate to the federal rate is as follows:
(1) Reflects the impact from the Deferred Remeasurement, net of the Deemed Repatriation Tax
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| Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows:
|
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Pension and Other Benefit Programs (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Obligations, Assets, Funded Status and Balance Sheet Impacts Associated with Pension and Postretirement Medical Benefit Plans based upon Actuarial Valuations | The following chart summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with the defined benefit pension and postretirement medical benefit plans:
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| Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows:
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The components of net periodic benefit cost are as follows:
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| Key Assumptions |
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| Accumulated Other Comprehensive Loss, Before Tax, Not yet Recognized in Net Periodic Benefit Cost | AOCI, before tax, as of September 29, 2018 consists of the following amounts that have not yet been recognized in net periodic benefit cost:
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| Amounts included in Accumulated Other Comprehensive Loss, Before Tax, Expected to be Recognized as Components of Net Periodic Benefit Cost | Amounts included in AOCI, before tax, as of September 29, 2018 that are expected to be recognized as components of net periodic benefit cost during fiscal 2019 are:
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| Plan Assets Investment Policy Ranges for Major Asset Classes | The investment policy ranges for the major asset classes are as follows:
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| Defined Benefit Plan Assets Measured at Fair Value | The Company’s defined benefit plan assets are summarized by level in the following tables:
(1) Includes 2.8 million shares of Company common stock valued at $332 million (2% of total plan assets) and 2.9 million shares valued at $282 million (2% of total plan assets) at September 29, 2018 and September 30, 2017, respectively.
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| Estimated Future Benefit Payments | The following table presents estimated future benefit payments for the next ten fiscal years:
(1) Estimated future benefit payments are net of expected Medicare subsidy receipts of $80 million
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| Long Term Rates of Return by Asset Class | The following long-term rates of return by asset class were considered in setting the long-term rate of return on plan assets assumption:
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| One Percentage Point (ppt) Change on Projected Benefit Obligations | A one percentage point (ppt) change in the key assumptions would have the following effects on the projected benefit obligations for pension and postretirement medical plans as of September 29, 2018 and on cost for fiscal 2019:
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| Contribution into Multiemployer Pension Plans and Health and Welfare Plans | The following table sets forth our contributions to multiemployer pension and health and welfare benefit plans that were expensed during the fiscal years 2018, 2017 and 2016, respectively:
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Equity (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends Declared | The Company paid the following dividends in fiscal 2019 and 2018:
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The Company paid the following dividends in fiscal 2018, 2017 and 2016:
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| Repurchases of Common Stock | The Company repurchased its common stock in fiscal 2018, 2017 and 2016 as follows:
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| Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | 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:
In addition, on September 30, 2018, the Company adopted a FASB standard, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings.
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The following table summarizes the changes in each component of AOCI including our proportional share of equity method investee amounts:
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| Details of AOCI Reclassified to Net Income | Details about AOCI components reclassified to net income are as follows:
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Details about AOCI components reclassified to net income are as follows:
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Equity-Based Compensation (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Assumptions used in Option-Valuation Model | In fiscal years 2018, 2017 and 2016, the weighted average assumptions used in the option-valuation model were as follows:
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| Impact of Stock Options/Rights and Restricted Stock Units on Income | The impact of stock options and RSUs on income and cash flows for fiscal years 2018, 2017 and 2016, was as follows:
(2) The amount for fiscal 2018 and 2017 is not applicable as the Company adopted new accounting guidance in fiscal 2017.
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| Information about Stock Option Transactions | The following table summarizes information about stock option transactions (shares in millions):
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| Information about Stock Options Vested and Expected to Vest | The following tables summarize information about stock options vested and expected to vest at September 29, 2018 (shares in millions):
(1) Number of options expected to vest is total unvested options less estimated forfeitures.
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| Information about Restricted Stock Unit Transactions | The following table summarizes information about RSU transactions (shares in millions):
(1) Includes 1.1 million Performance RSUs. (2) Includes 1.4 million Performance RSUs.
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| Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Compensation expense related to stock options and restricted stock units (RSUs) is as follows:
(1) Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs.
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Detail of Certain Balance Sheet Accounts (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Receivables |
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| Other Current Assets |
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| Parks, Resorts and Other Property, at Cost |
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| Intangible Assets |
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| Other Non-current Assets |
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| Accounts Payable and Other Accrued Liabilities |
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| Other Long-term Liabilities |
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contractual Commitments for Broadcast Programming Rights, Future Minimum Lease Payments under Non-Cancelable Operating Leases, and Creative Talent and Other Commitments | Contractual commitments for broadcast programming rights, future minimum lease payments under non-cancelable operating leases, cruise ships, creative talent and other commitments totaled $55.5 billion at September 29, 2018, payable as follows:
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| Future Payments under Non-Cancelable Capital Leases | Future payments under these leases as of September 29, 2018 are as follows:
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Fair Value Measurement (Tables) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 |
Sep. 29, 2018 |
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| 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:
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The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level. See Note 10 for definitions of fair value measures and the Levels within the fair value hierarchy.
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Derivative Instruments (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
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| 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:
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The Company’s derivative positions measured at fair value are summarized in the following tables:
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| Adjustments Related to Fair Value Hedges Included in Net Interest Income/(Expense) in Consolidated Statements of Income | The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income:
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The following table summarizes adjustments related to fair value hedges included in “Interest expense, net” in the Consolidated Statements of Income.
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| Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates | The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter ended December 29, 2018 and December 30, 2017 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income:
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The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for fiscal years 2018, 2017 and 2016 by the corresponding line item in which they are recorded in the Consolidated Statements of Income:
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| Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter ended December 29, 2018:
(1) Primarily recorded in revenue
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| Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes fair value hedge adjustments to hedged borrowings at December 29, 2018 and September 29, 2018:
(1) Includes $40 million and $41 million of gains on terminated interest rate swaps as of December 29, 2018 and September 29, 2018, respectively.
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Condensed Consolidating Financial Information Condensed Consolidating Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 20, 2019 |
Sep. 29, 2018 |
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| Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidating Statements of Income | SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended December 29, 2018
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Quarter Ended December 30, 2017
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SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended September 29, 2018 (in millions)
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended September 30, 2017 (in millions)
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended October 1, 2016 (in millions)
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| Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018 (in millions)
CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2017 (in millions)
CONDENSED CONSOLIDATING BALANCE SHEET As of December 29, 2018
CONDENSED CONSOLIDATING BALANCE SHEET As of September 29, 2018
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| Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 29, 2018 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 30, 2017 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended October 1, 2016 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Quarter Ended December 29, 2018
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Quarter Ended December 30, 2017
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QUARTERLY FINANCIAL SUMMARY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Financial Summary | QUARTERLY FINANCIAL SUMMARY (in millions, except per share data)
(5) Segment operating results reflect earnings before the corporate and unallocated shared expenses, restructuring and impairment charges, other income, net, interest expense, net, income taxes and noncontrolling interests.
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Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported in the Consolidated Balance Sheet that sum to the Total Amount in the Statement of Cash Flow (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Oct. 01, 2016 |
Oct. 03, 2015 |
|---|---|---|---|---|---|---|
| Accounting Policies [Abstract] | ||||||
| Cash and cash equivalents | $ 4,455 | $ 4,150 | $ 4,017 | $ 4,610 | ||
| Restricted Cash and Investments, Current | 4 | 1 | 26 | 96 | ||
| Restricted Cash and Investments, Noncurrent | 4 | 4 | 21 | 54 | ||
| Cash and Cash Equivalents and Restricted Cash | $ 4,463 | $ 4,155 | $ 4,695 | $ 4,064 | $ 4,760 | $ 4,725 |
Summary of Significant Accounting Policies - Expected Aggregate Annual Amortization Expense for Existing Amortizable Intangible Assets (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Accounting Policies [Abstract] | |
| 2019 | $ 258 |
| 2020 | 233 |
| 2021 | 230 |
| 2022 | 228 |
| 2023 | $ 202 |
Summary of Significant Accounting Policies - Reconciliation of Weighted Average Number of Common and Common Equivalent Shares Outstanding and Number of Awards Excluded from Diluted Earnings Per Share (Detail) - shares shares in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Earnings Per Share [Abstract] | |||||
| Weighted average number of common and common equivalent shares outstanding (basic) | 1,490 | 1,512 | 1,499 | 1,568 | 1,629 |
| Weighted average dilutive impact of Awards | 8 | 9 | 8 | 10 | 10 |
| Weighted average number of common and common equivalent shares outstanding (diluted) | 1,498 | 1,521 | 1,507 | 1,578 | 1,639 |
| Awards excluded from diluted earnings per share | 11 | 16 | 12 | 10 | 6 |
Impact of Adoption on the Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
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| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Revenues | $ 15,303 | $ 14,307 | $ 15,228 | $ 14,548 | $ 15,351 | $ 12,779 | $ 14,238 | $ 13,336 | $ 14,784 | $ 59,434 | $ 55,137 | $ 55,632 |
| Cost and expenses | (11,885) | (11,558) | (44,597) | (41,264) | (41,274) | |||||||
| Income Taxes | 645 | (728) | 1,663 | 4,422 | 5,078 | |||||||
| Net income | 2,786 | $ 2,419 | $ 3,059 | $ 3,115 | $ 4,473 | $ 1,865 | $ 2,474 | $ 2,539 | $ 2,488 | $ 13,066 | $ 9,366 | $ 9,790 |
| Calculated under Revenue Guidance in Effect before Topic 606 | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Revenues | 15,109 | |||||||||||
| Cost and expenses | (11,806) | |||||||||||
| Income Taxes | (619) | |||||||||||
| Net income | 2,697 | |||||||||||
| Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Revenues | 194 | |||||||||||
| Cost and expenses | (79) | |||||||||||
| Income Taxes | (26) | |||||||||||
| Net income | $ 89 | |||||||||||
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 30, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|---|
| Contract with Customer, Asset, Gross | $ 146 | $ 89 | ||
| Accounts Receivable, Gross, Current | 9,543 | 8,553 | $ 8,268 | $ 7,611 |
| Accounts Receivable, Gross, Noncurrent | 1,561 | 1,640 | ||
| Allowance for Doubtful Accounts Receivable | (230) | (226) | ||
| Deferred Revenue and Credits, Current | 2,968 | 2,926 | ||
| Deferred Revenue and Credits, Noncurrent | $ 514 | $ 609 |
Dispositions and Other Income/(Expense) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Schedule of Other Income and Expense [Line Items] | |||
| Gains on Sales of Real Estate and Property Rights | $ 560 | $ 0 | $ 0 |
| Litigation Settlement | 38 | (177) | 0 |
| Gain from acquisition of BAMTech | 3 | 255 | 0 |
| Other income, net | $ 601 | $ 78 | $ 0 |
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 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Oct. 01, 2016 |
Oct. 03, 2015 |
|---|---|---|---|---|---|---|
| Accounting Policies [Abstract] | ||||||
| Cash and cash equivalents | $ 4,455 | $ 4,150 | ||||
| Restricted Cash and Investments, Current | 4 | 1 | $ 26 | $ 96 | ||
| Restricted Cash and Investments, Noncurrent | 4 | 4 | 21 | 54 | ||
| Cash and Cash Equivalents and Restricted Cash | $ 4,463 | $ 4,155 | $ 4,695 | $ 4,064 | $ 4,760 | $ 4,725 |
Dispositions and Other Income/(Expense) - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Schedule of Other Income and Expense [Line Items] | |||
| Gains on Sales of Real Estate and Property Rights | $ 560 | $ 0 | $ 0 |
| Litigation Settlement | 38 | (177) | 0 |
| Gain from acquisition of BAMTech | 3 | 255 | $ 0 |
| BAMTech, LLC | |||
| Schedule of Other Income and Expense [Line Items] | |||
| Gain from acquisition of BAMTech | 3 | 255 | |
| Litigation net of insurance | |||
| Schedule of Other Income and Expense [Line Items] | |||
| Litigation Settlement | $ 38 | $ 177 | |
Cash, Cash Equivalents, Restricted Cash and Borrowings Interest Expense, net (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Interest expense | $ (163) | $ (146) | $ (682) | $ (507) | $ (354) |
| Interest and investment income | 75 | 17 | |||
| Interest expense, net | (63) | (129) | |||
| Net periodic pension and postretirement benefit costs other than service costs | 25 | 0 | |||
| Interest expense, net | $ (63) | $ (129) | $ (574) | $ (385) | $ (260) |
Investments (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Investments [Abstract] | |||
| Investments, equity basis | $ 2,768 | $ 3,087 | |
| Other Investments | $ 2,970 | 131 | 115 |
| Investments | $ 2,970 | $ 2,899 | $ 3,202 |
Investments Combined Financial Information for Equity Investments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Results of Operations: | |||
| Revenues | $ 9,085 | $ 8,122 | $ 7,416 |
| Net Income | (152) | 857 | 1,855 |
| Balance Sheet | |||
| Current assets | 4,542 | 4,623 | 4,801 |
| Non-current assets | 9,998 | 10,047 | 8,906 |
| Equity Method Investment, Summarized Financial Information, Assets, Total | 14,540 | 14,670 | 13,707 |
| Current liabilities | 3,197 | 2,852 | 2,018 |
| Non-current liabilities | 4,840 | 5,056 | 4,531 |
| Equity Method Investment, Summarized Financial Information, Noncontrolling Interest | 1,362 | 1,123 | 583 |
| Shareholders' equity | 5,141 | 5,639 | 6,575 |
| Equity Method Investment, Summarized Financial Information, Liabilities and Equity, Total | $ 14,540 | $ 14,670 | $ 13,707 |
International Theme Parks Impact of Consolidating Balance Sheets of International Theme Parks (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|---|---|---|---|---|
| Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||||
| Cash and cash equivalents | $ 4,455 | $ 4,150 | $ 4,017 | $ 4,610 |
| Other current assets | 778 | 635 | 588 | |
| Total current assets | 17,537 | 16,825 | 15,889 | |
| Parks, resorts and other property | 29,797 | 29,540 | 28,406 | |
| Other assets | 3,424 | 3,365 | 2,390 | |
| Total assets | 99,941 | 98,598 | 95,789 | |
| Current liabilities | 17,619 | 17,860 | 19,595 | |
| Borrowings | 17,176 | 17,084 | 19,119 | |
| International Theme Parks | ||||
| Schedule of Condensed Consolidating Balance Sheets [Line Items] | ||||
| Cash and cash equivalents | 737 | 834 | 843 | |
| Other current assets | 364 | 400 | ||
| Other current assets | 400 | 376 | ||
| Total current assets | 1,101 | 1,234 | 1,219 | |
| Parks, resorts and other property | 8,947 | 8,973 | 9,403 | |
| Other assets | 103 | 111 | ||
| Other assets | 107 | 103 | ||
| Total assets | 10,155 | 10,310 | 10,733 | |
| Current liabilities | 769 | 921 | 1,163 | |
| Borrowings | 1,121 | 1,106 | 1,145 | |
| Other long-term liabilities | 348 | 382 | 371 | |
| Total Liabilities | $ 2,238 | $ 2,409 | $ 2,679 |
International Theme Parks Impact of Consolidating Balance Sheets of International Theme Parks - Asia International Theme Parks (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Schedule of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
| Total assets | $ 99,941 | $ 98,598 | $ 95,789 |
| Parks, resorts and other property | 29,797 | 29,540 | 28,406 |
| Asia International Theme Parks | |||
| Schedule of Condensed Consolidating Balance Sheets - Asia International Theme Parks [Line Items] | |||
| Total assets | 8,000 | 8,000 | 8,000 |
| Parks, resorts and other property | 7,000 | 7,000 | 7,000 |
| Total liabilities | $ 2,000 | $ 2,000 | $ 2,000 |
International Theme Parks Impact of Consolidating Income Statements of International Theme Parks (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||||||||||
| Revenues | $ 15,303 | $ 14,307 | $ 15,228 | $ 14,548 | $ 15,351 | $ 12,779 | $ 14,238 | $ 13,336 | $ 14,784 | $ 59,434 | $ 55,137 | $ 55,632 |
| Cost and expenses | (11,885) | (11,558) | (44,597) | (41,264) | (41,274) | |||||||
| Equity in the income (loss) of investees, net | 76 | $ 43 | (102) | $ 320 | $ 926 | |||||||
| International Theme Parks | ||||||||||||
| Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||||||||||
| Revenues | 910 | 3,834 | ||||||||||
| Cost and expenses | (891) | (3,649) | ||||||||||
| Equity in the income (loss) of investees, net | $ (12) | $ (76) | ||||||||||
Film and Television Costs and Advances (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Theatrical film costs | |||
| Released, less amortization | $ 1,911 | $ 1,658 | |
| Completed, not released | 397 | 0 | |
| In-process | 2,974 | 3,200 | |
| In development or pre-production | 173 | 306 | |
| Theatrical Film Costs, Total | 5,455 | 5,164 | |
| Television costs | |||
| Released, less amortization | 1,301 | 1,152 | |
| Completed, not released | 462 | 472 | |
| In-process | 420 | 364 | |
| In development or pre-production | 2 | 53 | |
| Television Costs, Total | 2,185 | 2,041 | |
| Television programming rights and advances | 1,562 | 1,554 | |
| Film and Television Costs and Advances, Total | 9,202 | 8,759 | |
| Less current portion | $ 824 | 1,314 | 1,278 |
| Non-current portion | $ 8,177 | $ 7,888 | $ 7,481 |
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 | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Shares (in millions): | |||||
| Weighted average number of common and common equivalent shares outstanding (basic) | 1,490 | 1,512 | 1,499 | 1,568 | 1,629 |
| Weighted average dilutive impact of Awards | 8 | 9 | 8 | 10 | 10 |
| Weighted average number of common and common equivalent shares outstanding (diluted) | 1,498 | 1,521 | 1,507 | 1,578 | 1,639 |
| Awards excluded from diluted earnings per share | 11 | 16 | 12 | 10 | 6 |
Film and Television Costs and Advances - Additional Information (Detail) $ in Millions |
12 Months Ended |
|---|---|
|
Sep. 29, 2018
USD ($)
| |
| Disclosure Film And Television Costs [Abstract] | |
| Percentage of unamortized film and television costs for released productions expected to be amortized during the next three years | 78.00% |
| The period required to reach an amortization level of 84 percent for unamortized film costs that is expected to be amortize within three years from the date of the balance sheet | By the end of fiscal 2022, we will have reached on a cumulative basis over 80% amortization of the September 29, 2018 balance of unamortized film and television costs. |
| Accrued participation and residual liabilities to be paid in fiscal year 2019 | $ 1,000 |
| Expected amortization of capitalized film and television production costs during fiscal 2019 | 1,700 |
| Unamortized Acquired Film And Television Libraries | $ 160 |
| Weighted Average Remaining Amortization Period | 13 years |
Borrowings Bank facilities to support commercial paper borrowings (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
|---|---|---|
| Line of Credit Facility [Line Items] | ||
| Line of Credit Facility, Committed Capacity | $ 12,250 | $ 12,250 |
| Line of Credit Facility, Capacity Used | 0 | 0 |
| Line of Credit Facility, Unused Capacity | 12,250 | 12,250 |
| Existing Line of Credit 3 | ||
| Line of Credit Facility [Line Items] | ||
| Line of Credit Facility, Committed Capacity | 6,000 | 6,000 |
| Line of Credit Facility, Capacity Used | 0 | 0 |
| Line of Credit Facility, Unused Capacity | 6,000 | 6,000 |
| Existing Line Of Credit 1 | ||
| Line of Credit Facility [Line Items] | ||
| Line of Credit Facility, Committed Capacity | 2,250 | 2,250 |
| Line of Credit Facility, Capacity Used | 0 | 0 |
| Line of Credit Facility, Unused Capacity | 2,250 | 2,250 |
| Existing Line of Credit 2 | ||
| Line of Credit Facility [Line Items] | ||
| Line of Credit Facility, Committed Capacity | 4,000 | 4,000 |
| Line of Credit Facility, Capacity Used | 0 | 0 |
| Line of Credit Facility, Unused Capacity | $ 4,000 | $ 4,000 |
Borrowings Commercial Paper Activity (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|
| Commercial Paper Rollforward [Line Items] | |||
| Beginning Balance | $ 1,005 | $ 2,772 | $ 1,521 |
| Additions | 8,079 | 6,736 | |
| Payments | 9,847 | 5,489 | |
| Other Activity | 93 | 1 | 4 |
| Ending Balance | 1,005 | 2,772 | |
| Commercial Paper with original maturities less that three months | |||
| Commercial Paper Rollforward [Line Items] | |||
| Beginning Balance | 50 | 1,151 | 777 |
| Additions | 0 | 372 | |
| Payments | 1,099 | 0 | |
| Other Activity | 1 | (2) | 2 |
| Ending Balance | 50 | 1,151 | |
| commercial paper with original maturities greater than three months | |||
| Commercial Paper Rollforward [Line Items] | |||
| Beginning Balance | 955 | 1,621 | 744 |
| Additions | 8,079 | 6,364 | |
| Payments | 8,748 | 5,489 | |
| Other Activity | $ (4) | 3 | 2 |
| Ending Balance | $ 955 | $ 1,621 | |
Borrowings Total Borrowings Excluding Market Value Adjustments, Scheduled Maturities (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Long Term Debt Maturities Repayments Of Principal [Line Items] | |
| 2019 | $ 3,802 |
| 2020 | 3,000 |
| 2021 | 2,106 |
| 2022 | 1,910 |
| 2023 | 1,036 |
| Thereafter | 9,445 |
| Total borrowings | 21,299 |
| Before Asia Theme Parks Consolidation | |
| Long Term Debt Maturities Repayments Of Principal [Line Items] | |
| 2019 | 3,763 |
| 2020 | 3,000 |
| 2021 | 2,106 |
| 2022 | 1,900 |
| 2023 | 1,000 |
| Thereafter | 8,385 |
| Total borrowings | 20,154 |
| Asia Theme Parks and Adjustments | |
| Long Term Debt Maturities Repayments Of Principal [Line Items] | |
| 2019 | 39 |
| 2020 | 0 |
| 2021 | 0 |
| 2022 | 10 |
| 2023 | 36 |
| Thereafter | 1,060 |
| Total borrowings | $ 1,145 |
Income Before Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Income Before Income Taxes | |||||
| Domestic (including U.S. exports) | $ 12,914 | $ 12,611 | $ 14,018 | ||
| Foreign subsidiaries | 1,815 | 1,177 | 850 | ||
| Income before income taxes | $ 3,431 | $ 3,745 | $ 14,729 | $ 13,788 | $ 14,868 |
Income Tax Expense / (Benefit) (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Current | |||||
| Federal | $ 2,240 | $ 3,229 | $ 3,146 | ||
| State | 362 | 360 | 154 | ||
| Foreign | 642 | 489 | 533 | ||
| Current Income Tax Expense (Benefit), Total | 3,244 | 4,078 | 3,833 | ||
| Deferred | |||||
| Federal | (1,577) | 370 | 1,172 | ||
| State | (20) | 5 | 100 | ||
| Foreign | 16 | (31) | (27) | ||
| Deferred Income Tax Expense (Benefit), Total | (1,581) | 344 | 1,245 | ||
| Income taxes | $ 645 | $ (728) | $ 1,663 | $ 4,422 | $ 5,078 |
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 30, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|---|
| Deferred tax assets | ||||
| Noncontrolling interest net operating losses | $ (1,437) | $ (1,705) | ||
| Accrued liabilities | (1,214) | (2,422) | ||
| Other | (328) | (386) | ||
| Total deferred tax assets | (2,979) | (4,513) | ||
| Deferred tax liabilities | ||||
| Depreciable, amortizable and other property | 3,678 | 5,692 | ||
| Investment in Foreign Entities | 351 | 518 | ||
| Licensing revenues | 265 | 476 | ||
| Investment in U.S. Entities | 189 | 292 | ||
| Other | 88 | 130 | ||
| Deferred Tax Liabilities, Gross | $ 3,177 | $ 3,075 | 4,571 | 7,108 |
| Deferred Tax Liabilities before valuation allowance | 1,592 | 2,595 | ||
| Valuation allowance | 1,383 | 1,716 | ||
| Total deferred tax liabilities | $ 2,975 | $ 4,311 |
Income Taxes - Reconciliation of Effective Income Tax Rate to Federal Rate (Detail) |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Jan. 01, 2018 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Income Tax Disclosure [Abstract] | |||||
| Federal income tax rate | 35.00% | 21.00% | 24.50% | 35.00% | 35.00% |
| State taxes, net of federal benefit | 1.90% | 1.70% | 1.80% | ||
| Domestic production activity deduction | (1.40%) | (2.10%) | (1.60%) | ||
| Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate | (1.10%) | (1.60%) | (1.10%) | ||
| Tax Act | (11.50%) | 0.00% | 0.00% | ||
| Other, including tax reserves and related interest | (1.10%) | (0.90%) | 0.10% | ||
| Effective Income Tax Rate, Continuing Operations, Total | 11.30% | 32.10% | 34.20% | ||
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Balance at the beginning of the year | $ 832 | $ 844 | $ 912 |
| Increases for current year tax positions | 64 | 61 | 71 |
| Increases for prior year tax positions | 48 | 13 | 142 |
| Decreases in prior year tax positions | (135) | (55) | (158) |
| Settlements with taxing authorities | (161) | (31) | (123) |
| Balance at the end of the year | $ 648 | $ 832 | $ 844 |
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
|---|---|---|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Hedged Liability, Fair Value Hedge | $ 8,089 | $ 8,010 |
| Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (186) | (304) |
| Current Portion of Borrowings | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Hedged Liability, Fair Value Hedge | 1,590 | 1,585 |
| Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (9) | (14) |
| Borrowings | ||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
| Hedged Liability, Fair Value Hedge | 6,499 | 6,425 |
| Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (177) | $ (290) |
Derivative Instruments Carrying Amount and Cumulative Basis Adjustment for Fair Value Hedges - Terminated Interest Rate Swaps (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
|---|---|---|
| Interest rate | Derivatives designated as hedges | Fair Value Hedging | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 40 | $ 41 |
Derivative Instruments Effect of Foreign Currency Cash Flow Hedges on AOCI (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Dec. 29, 2018
USD ($)
| |
| Foreign Currency Fair Value Hedge Derivative [Line Items] | |
| Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 50 |
| Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 37 |
Pension and Other Benefit Programs - Accumulated Other Comprehensive Loss, Before Tax, not yet Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Prior service cost | $ (52) | |
| Net actuarial loss | (4,220) | |
| Total amounts included in AOCI | (4,272) | |
| Prepaid / (accrued) pension cost | 1,622 | |
| Net balance sheet liability | (2,650) | |
| Pension Plans | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Prior service cost | (52) | |
| Net actuarial loss | (4,184) | |
| Total amounts included in AOCI | (4,236) | |
| Prepaid / (accrued) pension cost | 2,464 | |
| Net balance sheet liability | (1,772) | $ (2,207) |
| Postretirement Medical Plans | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Prior service cost | 0 | |
| Net actuarial loss | (36) | |
| Total amounts included in AOCI | (36) | |
| Prepaid / (accrued) pension cost | (842) | |
| Net balance sheet liability | $ (878) | $ (1,050) |
Pension and Other Benefit Programs - Amounts included in Accumulated Other Comprehensive Loss, Before Tax, Expected to Be Recognized as Components of Net Periodic Benefit Cost (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income [Line Items] | |
| Prior service cost | $ (12) |
| Net actuarial loss | (260) |
| Total | (272) |
| Pension Plans | |
| Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income [Line Items] | |
| Prior service cost | (12) |
| Net actuarial loss | (260) |
| Total | (272) |
| Postretirement Medical Plans | |
| Summary of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income [Line Items] | |
| Prior service cost | 0 |
| Net actuarial loss | 0 |
| Total | $ 0 |
Pension and Other Benefit Programs - Defined Benefit Plan Assets Measured at Fair Value (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|
| Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ||
| Asset allocation ranges | 100.00% | 100.00% |
| United States Mid Large Cap | Shares Held In The Walt Disney Company | ||
| Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ||
| Large cap domestic equities, shares of company common stock | 2.8 | 2.9 |
| Large cap domestic equities, value of company common stock | $ 332 | $ 282 |
| Asset allocation ranges | 2.00% | 2.00% |
Pension and Other Benefit Programs - Estimated Future Benefit Payments (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Pension Plans | |
| Defined Benefit Plan Disclosure [Line Items] | |
| 2019 | $ 534 |
| 2020 | 544 |
| 2021 | 579 |
| 2022 | 618 |
| 2023 | 656 |
| 2024 - 2028 | 3,827 |
| Postretirement Medical Plans | |
| Defined Benefit Plan Disclosure [Line Items] | |
| 2019 | 51 |
| 2020 | 54 |
| 2021 | 58 |
| 2022 | 63 |
| 2023 | 68 |
| 2024 - 2028 | $ 404 |
Pension and Other Benefit Programs - Estimated Future Benefit Payments (Parenthetical) (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Postretirement Medical Plans | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Expected Medicare subsidy receipts | $ 80 |
Pension and Other Benefit Programs - Long-Term Rate of Return on Plan Assets (Detail) |
12 Months Ended |
|---|---|
Sep. 29, 2018 | |
| Minimum | Equity Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 7.00% |
| Minimum | Debt Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 3.00% |
| Minimum | Alternative Investments | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 7.00% |
| Maximum | Equity Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 11.00% |
| Maximum | Debt Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 5.00% |
| Maximum | Alternative Investments | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Long term rate of return on assets | 12.00% |
Pension and Other Benefit Programs - Contribution into Multiemployer Pension Plans and Health and Welfare Plans (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Multiemployer Plans [Line Items] | |||
| Contribution | $ 316 | $ 287 | $ 293 |
| Multi-employer Pension Plans | |||
| Multiemployer Plans [Line Items] | |||
| Contribution | 144 | 127 | 126 |
| Multiemployer Health and Welfare Plans | |||
| Multiemployer Plans [Line Items] | |||
| Contribution | $ 172 | $ 160 | $ 167 |
Equity Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Billions |
3 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Mar. 31, 2018 |
Sep. 30, 2017 |
Apr. 01, 2017 |
Oct. 01, 2016 |
Apr. 02, 2016 |
|
| Dividends, Common Stock [Abstract] | |||||||
| Dividends paid, per share | $ 0.88 | $ 0.84 | $ 0.84 | $ 0.78 | $ 0.78 | $ 0.71 | $ 0.71 |
| Dividends paid | $ 1.3 | $ 1.2 | $ 1.3 | $ 1.2 | $ 1.2 | $ 1.1 | $ 1.2 |
Equity Common Stock Repurchases (Details) - USD ($) shares in Millions, $ in Billions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Common Stock Repurchases [Abstract] | |||
| Common stock repurchases (in shares) | 35 | 89 | 74 |
| Common stock repurchases | $ 3.6 | $ 9.4 | $ 7.5 |
Equity - Additional Information (Detail) - $ / shares shares in Thousands |
Dec. 29, 2018 |
Sep. 29, 2018 |
Mar. 31, 2018 |
Sep. 30, 2017 |
Jan. 30, 2015 |
|---|---|---|---|---|---|
| Class of Stock [Line Items] | |||||
| Total shares authorized for repurchase | 400,000 | ||||
| Remaining shares authorized for repurchase | 158,000 | 158,000 | |||
| Treasury stock, shares | 1,400,000 | 1,400,000 | 1,400,000 | ||
| Common stock, authorized | 4,600,000 | 4,600,000 | 4,600,000 | ||
| Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
| Series A Preferred Stock | |||||
| Class of Stock [Line Items] | |||||
| Preferred Stock, Shares Authorized | 100,000 | 100,000 | 100,000 | ||
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||
| Preferred Stock, Shares Issued | 0 | 0 | 0 | ||
| Series B Preferred Stock | |||||
| Class of Stock [Line Items] | |||||
| Preferred Stock, Shares Authorized | 40 | 40 | |||
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
| Preferred Stock, Shares Issued | 0 | 0 |
Equity-Based Compensation - Weighted Average Assumptions used in Option-Valuation Model (Detail) - OptionPlan |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
| Risk-free interest rate | 2.40% | 2.60% | 2.30% |
| Expected volatility | 23.00% | 22.00% | 26.00% |
| Dividend yield | 1.57% | 1.58% | 1.32% |
| Termination rate | 4.80% | 4.00% | 4.00% |
| Exercise multiple | 1.75 | 1.62 | 1.62 |
Equity-Based Compensation - Impact of Stock Options/Rights and Restricted Stock Units on Income and Cash Flows (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
| Stock option/rights compensation expense | $ 19 | $ 23 | $ 87 | $ 90 | $ 93 |
| RSU compensation expense | 73 | 71 | 306 | 274 | 293 |
| Total equity-based compensation expense | 92 | 94 | 393 | 364 | 386 |
| Tax impact | (99) | (123) | (131) | ||
| Reduction in net income | 294 | 241 | 255 | ||
| Equity-based compensation expense capitalized during the period | $ 16 | $ 19 | $ 70 | $ 78 | 78 |
| Tax benefit reported in cash flow from financing activities | $ 208 | ||||
Equity-Based Compensation - Information about Stock Option Transactions (Detail) shares in Millions |
12 Months Ended |
|---|---|
|
Sep. 29, 2018
$ / shares
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
| Outstanding at beginning of year | shares | 24 |
| Awards forfeited | shares | (1) |
| Awards granted | shares | 4 |
| Awards exercised | shares | (3) |
| Outstanding at end of year | shares | 24 |
| Exercisable at end of year | shares | 14 |
| Weighted Average Exercise Price | |
| Outstanding at beginning of year | $ / shares | $ 76.68 |
| Awards forfeited | $ / shares | 107.69 |
| Awards granted | $ / shares | 111.48 |
| Awards exercised | $ / shares | 58.09 |
| Outstanding at end of year | $ / shares | 84.14 |
| Exercisable at end of year | $ / shares | $ 69.06 |
Equity-Based Compensation - Information about Restricted Stock Unit Transactions (Detail) shares in Millions |
12 Months Ended |
|---|---|
|
Sep. 29, 2018
$ / shares
shares
| |
| Units | |
| Unvested at beginning of year | shares | 9 |
| Granted | shares | 5 |
| Vested | shares | (4) |
| Forfeited | shares | (1) |
| Unvested at end of year | shares | 9 |
| Weighted Average Grant-Date Fair Value | |
| Unvested at beginning of year | $ / shares | $ 101.17 |
| Granted | $ / shares | 109.05 |
| Vested | $ / shares | 113.21 |
| Forfeited | $ / shares | 107.23 |
| Unvested at end of year | $ / shares | $ 108.74 |
Detail of Certain Balance Sheet Accounts - Current Receivables (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 30, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|---|
| Current receivables | ||||
| Accounts receivable | $ 9,543 | $ 8,553 | $ 8,268 | $ 7,611 |
| Other | 1,258 | 1,209 | ||
| Allowance for doubtful accounts | (192) | (187) | ||
| Current receivables, Net | $ 10,123 | $ 9,334 | $ 8,633 |
Detail of Certain Balance Sheet Accounts - Other Current Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Other current assets | |||
| Prepaid expenses | $ 476 | $ 445 | |
| Other | 159 | 143 | |
| Other current assets | $ 778 | $ 635 | $ 588 |
Detail of Certain Balance Sheet Accounts - Parks, Resorts and Other Property, at Cost (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Parks, resorts and other property, at cost | |||
| Attractions, buildings and improvements | $ 28,995 | $ 28,644 | |
| Furniture, fixtures and equipment | 19,400 | 18,908 | |
| Land improvements | 5,911 | 5,593 | |
| Leasehold improvements | 932 | 898 | |
| Parks, resorts and other property, at cost | $ 55,385 | 55,238 | 54,043 |
| Accumulated depreciation | (31,069) | (30,764) | (29,037) |
| Projects in progress | 4,336 | 3,942 | 2,145 |
| Land | 1,145 | 1,124 | 1,255 |
| Parks, resorts and other property | $ 29,797 | $ 29,540 | $ 28,406 |
Detail of Certain Balance Sheet Accounts - Intangible Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Intangible assets | |||
| Character/franchise intangibles and copyrights | $ 5,829 | $ 5,829 | |
| Other amortizable intangible assets | 1,213 | 1,154 | |
| Accumulated amortization | (2,070) | (1,828) | |
| Net amortizable intangible assets | 4,972 | 5,155 | |
| FCC licenses | 602 | 602 | |
| Trademarks | 1,218 | 1,218 | |
| Other indefinite lived intangible assets | 20 | 20 | |
| Intangible assets | $ 6,747 | $ 6,812 | $ 6,995 |
Detail of Certain Balance Sheet Accounts - Other Non-Current Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Other non-current assets | |||
| Receivables | $ 1,928 | $ 1,688 | |
| Prepaid expenses | 919 | 233 | |
| Other | 518 | 469 | |
| Other non-current assets, net | $ 3,424 | $ 3,365 | $ 2,390 |
Detail of Certain Balance Sheet Accounts - Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 30, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|---|
| Accounts payable and other accrued liabilities | ||||
| Accounts payable | $ 6,503 | $ 6,305 | ||
| Payroll and employee benefits | 2,189 | 1,819 | ||
| Other | 787 | 731 | ||
| Accounts payable and other accrued liabilities | $ 10,696 | $ 10,518 | $ 9,479 | $ 8,855 |
Detail of Certain Balance Sheet Accounts - Other Long-Term Liabilities (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
Sep. 30, 2017 |
|---|---|---|---|
| Other long-term liabilities | |||
| Pension and postretirement medical plan liabilities | $ 2,712 | $ 3,281 | |
| Other | 3,878 | 3,162 | |
| Other long-term liabilities | $ 6,452 | $ 6,590 | $ 6,443 |
Commitments and Contingencies - Contractual Commitments for Broadcast Programming Rights, Future Minimum Lease Payments Under Non-Cancelable Operating Leases, Cruise Ships, Creative Talent and Other Commitments (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Commitments and Contingencies [Line Items] | |
| 2019 | $ 9,814 |
| 2020 | 9,315 |
| 2021 | 8,315 |
| 2022 | 6,793 |
| 2023 | 5,525 |
| Thereafter | 15,729 |
| Commitments | 55,491 |
| Operating Leases, 2019 | 681 |
| Operating Leases, 2020 | 571 |
| Operating Leases, 2021 | 470 |
| Operating Leases, 2022 | 381 |
| Operating Leases, 2023 | 261 |
| Operating Leases, Thereafter | 1,220 |
| Operating Leases | 3,584 |
| Broadcast programming | |
| Commitments and Contingencies [Line Items] | |
| 2019 | 7,340 |
| 2020 | 7,475 |
| 2021 | 7,277 |
| 2022 | 5,317 |
| 2023 | 4,363 |
| Thereafter | 12,841 |
| Commitments | 44,613 |
| Other Commitments | |
| Commitments and Contingencies [Line Items] | |
| 2019 | 1,793 |
| 2020 | 1,269 |
| 2021 | 568 |
| 2022 | 1,095 |
| 2023 | 901 |
| Thereafter | 1,668 |
| Commitments | $ 7,294 |
Commitments and Contingencies - Future Payments under Non-Cancelable Capital Leases (Detail) $ in Millions |
Sep. 29, 2018
USD ($)
|
|---|---|
| Commitments and Contingencies Disclosure [Abstract] | |
| 2019 | $ 24 |
| 2020 | 21 |
| 2021 | 19 |
| 2022 | 18 |
| 2023 | 16 |
| Thereafter | 442 |
| Total minimum obligations | 540 |
| Less amount representing interest | (386) |
| Present value of net minimum obligations | 154 |
| Less current portion | (12) |
| Long-term portion | $ 142 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Equity Method Investment, Other than Temporary Impairment | $ 210 | $ 0 | $ 0 |
| Level 3 | Film Production | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Carrying value of the asset prior to impairment | 143 | ||
| Impairment charges | $ 115 | ||
| Fair Value, Measurements, Nonrecurring | Level 3 | Equity Method Investments | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Equity Method Investments, Fair Value | 392 | ||
| Carrying value of the asset prior to impairment | 602 | ||
| Equity Method Investment, Other than Temporary Impairment | $ 210 | ||
Derivative Instruments - Adjustments Related to Fair Value Hedges included in Net Interest Expense in Consolidated Statements of Income (Detail) - Interest rate - Interest expense, net - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Derivative Instruments, Gain (Loss) [Line Items] | |||||
| Gain (loss) on interest rate swaps | $ 117 | $ (64) | $ (230) | $ (211) | $ 18 |
| Gain (loss) on hedged borrowings | $ (117) | $ 64 | $ 230 | $ 211 | $ (18) |
Restructuring and Impairment Charges - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Restructuring and Related Activities [Abstract] | |||||
| Restructuring and impairment charges | $ 0 | $ 15 | $ 33 | $ 98 | $ 156 |
New Accounting Pronouncements New Accounting Pronouncements - Additional Details (Details) - USD ($) $ in Millions |
Dec. 29, 2018 |
Sep. 29, 2018 |
|---|---|---|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Operating Leases, Future Minimum Payments Due | $ 3,584 | |
| Accounting Standards Update 2016-02 | ||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Operating Leases, Future Minimum Payments Due | $ 3,600 | |
| New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 350 |
Condensed Consolidating Financial Information Condensed Consolidating Financial Information - Additional Details (Details) |
Mar. 20, 2019 |
|---|---|
| Legacy Disney | |
| Condensed Financial Statements, Captions [Line Items] | |
| Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Quarterly Financial Summary (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Sep. 29, 2018 |
Sep. 30, 2017 |
Oct. 01, 2016 |
|
| Quarterly Financial Information [Line Items] | ||||||||||||
| Revenues | $ 15,303 | $ 14,307 | $ 15,228 | $ 14,548 | $ 15,351 | $ 12,779 | $ 14,238 | $ 13,336 | $ 14,784 | $ 59,434 | $ 55,137 | $ 55,632 |
| Segment operating income | 3,655 | 3,277 | 4,189 | 4,237 | 3,986 | 2,812 | 4,011 | 3,996 | 3,956 | 15,689 | 14,775 | 15,721 |
| Net income | 2,786 | 2,419 | 3,059 | 3,115 | 4,473 | 1,865 | 2,474 | 2,539 | 2,488 | 13,066 | 9,366 | 9,790 |
| Net income attributable to Disney | $ 2,788 | $ 2,322 | $ 2,916 | $ 2,937 | $ 4,423 | $ 1,747 | $ 2,366 | $ 2,388 | $ 2,479 | $ 12,598 | $ 8,980 | $ 9,391 |
| Diluted | $ 1.86 | $ 1.55 | $ 1.95 | $ 1.95 | $ 2.91 | $ 1.13 | $ 1.51 | $ 1.50 | $ 1.55 | $ 8.36 | $ 5.69 | $ 5.73 |
| Basic | $ 1.87 | $ 1.56 | $ 1.96 | $ 1.95 | $ 2.93 | $ 1.14 | $ 1.51 | $ 1.51 | $ 1.56 | $ 8.40 | $ 5.73 | $ 5.76 |