Borrowings

12 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

The Company’s borrowings, including the impact of interest rate and cross-currency swaps, are summarized as follows:

					September 28, 2024
	Sep. 28, 2024		Sep. 30, 2023		Stated Interest Rate(1)	Pay Floating Interest rate and Cross- Currency Swaps(2)			Effective Interest Rate(3)	Swap Maturities
Commercial paper	$	3,040	$	1,476	—		$	—	5.47%
U.S. dollar denominated notes(4)	40,496		43,504		4.06%		10,125		4.71%	2025-2031
Foreign currency denominated debt	1,886		1,872		2.91%		1,887		4.80%	2025-2027
Other(5)	(899)		(1,729)				—
	44,523		45,123				12,012
Asia Theme Parks borrowings	1,292		1,308		7.93%		—		5.75%
Total borrowings	45,815		46,431				12,012
Less current portion	6,845		4,330				—
Total long-term borrowings	$	38,970	$	42,101			$	12,012

(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 28, 2024; 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 28, 2024.

(3)The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs.

(4)Includes net debt issuance discounts, costs and purchase accounting adjustments totaling a net premium of $1.6 billion and $1.8 billion at September 28, 2024 and September 30, 2023, respectively.

(5)Includes market value adjustments for debt with qualifying hedges, which reduces borrowings by $0.9 billion and $1.8 billion at September 28, 2024 and September 30, 2023, respectively.

Bank Facilities and Commercial Paper

At September 28, 2024, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows:

	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring February 2025	$	5,250	$	—	$	5,250
Facility expiring March 2027	4,000		—		4,000
Facility expiring March 2029	3,000		—		3,000
Total	$	12,250	$	—	$	12,250

These facilities allow for borrowings at rates based on the Secured Overnight Financing Rate (SOFR), and at other variable rates for non-U.S. dollar denominated borrowings plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Ratings and S&P Global Ratings ranging from 0.655% to 1.225%. The bank facilities contain only one financial covenant, relating to interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On September 28, 2024, the Company met this covenant by a significant margin. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2027, which if utilized, reduces available borrowings under this facility. As of September 28, 2024, the Company has $1.6 billion of outstanding letters of credit, of which none were issued under this facility.

Commercial paper activity is as follows:

	Commercial paper with original maturities less than three months, net(1)		Commercial paper with original maturities greater than three months		Total
Balance at Oct. 1, 2022	$	50	$	1,612	$	1,662
Additions	238		3,603		3,841
Payments	—		(4,032)		(4,032)
Other Activity	1		4		5
Balance at Sep. 30, 2023	$	289	$	1,187	$	1,476
Additions	431		4,305		4,736
Payments	—		(3,204)		(3,204)
Other Activity	7		25		32
Balance at Sep. 28, 2024	$	727	$	2,313	$	3,040

(1)Borrowings and reductions of borrowings are reported net.

U.S. Dollar Denominated Notes

At September 28, 2024, the Company had $40.5 billion of fixed rate U.S. dollar denominated notes with maturities ranging from 1 to 72 years and stated interest rates that range from 1.75% to 8.50%.

Foreign Currency Denominated Debt

At September 28, 2024, the Company had fixed rate senior notes of Canadian $1.3 billion ($0.9 billion), which had a stated interest rate of 2.76% and was paid in October 2024, and Canadian $1.3 billion ($1.0 billion), which had a stated interest rate of 3.06% and matures in March 2027. The Company has entered into pay-floating interest rate and cross-currency swaps that effectively convert the borrowings to a variable-rate U.S. dollar denominated borrowings indexed to SOFR.

Cruise Ship Credit Facilities

At September 28, 2024, the Company had two credit facilities to finance, at its option, a significant portion of the contract price of two new cruise ships. With the delivery of the Disney Treasure, which occurred in October 2024, the Company borrowed $1.1 billion under one credit facility with a fixed interest rate of 3.80% in November 2024 that will be payable semi-annually over 12 years. The remaining credit facility for $1.1 billion may be utilized to finance a significant portion of the contract price of the Disney Destiny, which is currently scheduled to be delivered in fiscal 2026. If utilized, the loan will have a fixed interest rate of 3.74% and will be payable semi-annually over 12 years. Early repayment of both facilities is permitted subject to cancellation fees.

Asia Theme Parks Borrowings

HKSAR provided Hong Kong Disneyland Resort with loans totaling HK $0.5 billion ($68 million). The interest rate is three month HIBOR plus 2% and the maturity date is September 2025.

Shendi has provided Shanghai Disney Resort with loans totaling 8.6 billion yuan (approximately $1.2 billion) bearing interest at 8% and is scheduled to mature in 2036 with earlier payments required based on available cash flows. In addition, early repayment is permitted. Shendi has also provided Shanghai Disney Resort with a 2.6 billion yuan (approximately $0.4 billion) line of credit bearing interest at 8%. As of September 28, 2024, the line of credit does not have a balance outstanding.

Maturities

The following table provides total borrowings, excluding market value adjustments and debt issuance premiums, discounts and costs, by scheduled maturity date as of September 28, 2024. The table also provides the estimated interest payments on these borrowings as of September 28, 2024 although actual future payments will differ for floating-rate borrowings:

	Borrowings
Fiscal Year:	Before Asia Theme Parks Consolidation		Asia  Theme Parks		Total Borrowings		Interest		Total Borrowings and Interest
2025	$	6,688	$	128	$	6,816	$	1,586	$	8,402
2026	4,578		—		4,578		1,502		6,080
2027	2,926		—		2,926		1,344		4,270
2028	1,599		—		1,599		1,253		2,852
2029	2,195		—		2,195		1,210		3,405
Thereafter	25,823		1,164		26,987		15,944		42,931
	$	43,809	$	1,292	$	45,101	$	22,839	$	67,940

Interest

The Company capitalizes interest on assets constructed for its parks and resorts and on certain film and television productions. In fiscal 2024, 2023 and 2022, total interest capitalized was $386 million, $365 million and $261 million, respectively.

Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 10) are reported net in the Consolidated Statements of Income and consist of the following:

	2024		2023		2022
Interest expense	$	(2,070)	$	(1,973)	$	(1,549)
Interest and investment income	406		424		90
Net periodic pension and postretirement benefit costs (other than service costs)	404		340		62
Interest expense, net	$	(1,260)	$	(1,209)	$	(1,397)