1-11605
|
|
95-4545390
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
|
|
|
500 South Buena Vista Street
|
|
|
Burbank, California
|
|
91521
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Emerging growth company
|
¨
|
¨
|
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))
|
23 -
|
|
99.1 -
|
- Part I, Item 1. Business
- Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- Part II, Item 8. Financial Statements and Supplementary Data
|
101 -
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended September 29, 2018 formatted in Extensible Business Reporting Language (XBRL): (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
|
|
•
|
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; and
|
•
|
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”).
|
•
|
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; and
|
•
|
Depreciation and amortization.
|
(1)
|
Nielsen Media Research estimates are as of September 2018 and capture traditional MVPD and certain digital over-the-top MVPD subscriber counts.
|
(2)
|
Because Nielsen Media Research does not measure these channels, estimated subscriber counts are according to SNL Kagan as of December 2017.
|
•
|
ESPN.com - which delivers sports news, information and video on internet-connected devices, with thirteen editions in three languages globally. In the U.S., ESPN.com also features live video streams of ESPN channels to authenticated MVPD subscribers. Non-subscribers have limited access to certain content.
|
•
|
ESPN App - which delivers scores, news, highlights, short form video, podcasts and live audio, with thirteen editions in three languages globally. In the U.S., the ESPN App also features live video streams of ESPN’s linear channels and
|
•
|
ESPN+ - which is a multi-sports subscription offering available through ESPN.com and the ESPN App
|
•
|
ESPN Radio – which distributes talk and play-by-play programming and is one of the largest sports radio networks in the U.S. ESPN Radio network programming is carried on approximately 400 terrestrial stations including four ESPN owned stations in New York, Los Angeles, Chicago and Dallas, and on satellite and internet radio.
|
•
|
ESPN The Magazine – which is a monthly sports magazine.
|
•
|
ESPN owns and operates the following events: ESPYs (annual awards show); X Games (winter and summer action sports competitions); and a portfolio of collegiate sporting events including: bowl games, basketball games, softball games and post-season award shows.
|
TV Station
|
|
Market
|
|
Television Market
Ranking
(1)
|
WABC
|
|
New York, NY
|
|
1
|
KABC
|
|
Los Angeles, CA
|
|
2
|
WLS
|
|
Chicago, IL
|
|
3
|
WPVI
|
|
Philadelphia, PA
|
|
4
|
KTRK
|
|
Houston, TX
|
|
7
|
KGO
|
|
San Francisco, CA
|
|
8
|
WTVD
|
|
Raleigh-Durham, NC
|
|
25
|
KFSN
|
|
Fresno, CA
|
|
54
|
(1)
|
Based on Nielsen Media Research, U.S. Television Household Estimates, January 1, 2018
|
•
|
A&E – which offers entertainment programming including original reality and scripted series.
|
•
|
HISTORY – which offers original series and event-driven specials.
|
•
|
Lifetime and Lifetime Real Women – which are cable channels devoted to female-focused programming.
|
•
|
Lifetime Movie Network (LMN) – which is a movie channel.
|
•
|
FYI – which offers contemporary lifestyle programming.
|
(1)
|
Nielsen Media Research estimates are as of September 2018 and capture traditional MVPD and certain certain digital over-the-top MVPD subscriber counts.
|
•
|
Licensing of television and radio stations.
Each of the television and radio stations we own must be licensed by the FCC. These licenses are granted for periods of up to eight years, and we must obtain renewal of licenses as they expire in order to continue operating the stations. We (and the acquiring entity in the case of a divestiture) must also obtain FCC approval whenever we seek to have a license transferred in connection with the acquisition or divestiture of a station. The FCC may decline to renew or approve the transfer of a license in certain circumstances and may delay renewals while permitting a licensee to continue operating. Although we have received such renewals and approvals in the past or have been permitted to continue operations when renewal is delayed, there can be no assurance that this will be the case in the future.
|
•
|
Television and radio station ownership limits.
The FCC imposes limitations on the number of television stations and radio stations we can own in a specific market, on the combined number of television and radio stations we can own in
|
▪
|
FCC regulations may restrict our ability to own more than one television station in a market, depending on the size and nature of the market. We do not own more than one television station in any market.
|
▪
|
Federal statutes permit our television stations in the aggregate to reach a maximum of 39% of the national audience. Pursuant to the most recent decision by the FCC as to how to calculate compliance with this limit, our eight stations reach approximately 21% of the national audience.
|
▪
|
FCC regulations in some cases impose restrictions on our ability to acquire additional radio or television stations in the markets in which we own radio stations.We do not believe any such limitations are material to our current operating plans.
|
•
|
Dual networks.
FCC rules currently prohibit any of the four major broadcast television networks — ABC, CBS, Fox and NBC — from being under common ownership or control.
|
•
|
Regulation of programming.
The FCC regulates broadcast programming by, among other things, banning “indecent” programming, regulating political advertising and imposing commercial time limits during children’s programming. Penalties for broadcasting indecent programming can range up to nearly $400 thousand per indecent utterance or image per station.
|
•
|
Cable and satellite carriage of broadcast television stations.
With respect to cable systems operating within a television station’s Designated Market Area, FCC rules require that every three years each television station elect either “must carry” status, pursuant to which cable operators generally must carry a local television station in the station’s market, or “retransmission consent” status, pursuant to which the cable operator must negotiate with the television station to obtain the consent of the television station prior to carrying its signal. Under the Satellite Home Viewer Improvement Act and its successors, including most recently the STELA Reauthorization Act (STELAR), which also requires the “must carry” or “retransmission consent” election, satellite carriers are permitted to retransmit a local television station’s signal into its local market with the consent of the local television station. The ABC owned television stations have historically elected retransmission consent. Portions of these satellite laws are set to expire on December 31, 2019.
|
•
|
Cable and satellite carriage of programming.
The Communications Act and FCC rules regulate some aspects of negotiations regarding cable and satellite retransmission consent, and some cable and satellite companies have sought regulation of additional aspects of the carriage of programming on cable and satellite systems. New legislation, court action or regulation in this area could have an impact on the Company’s operations.
|
•
|
Parks & Experiences:
|
◦
|
Theme parks and resorts, which include: Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; and 47% and 43% interests in Hong Kong Disneyland Resort and Shanghai Disney Resort, respectively, all of which are consolidated in our results. Additionally, the Company licenses our intellectual property to a third party to operate Tokyo Disney Resort
|
◦
|
Disney Cruise Line, Disney Vacation Club (DVC), Aulani, a Disney Resort & Spa in Hawaii, and Adventures by Disney
|
•
|
Consumer Products:
|
◦
|
Licensing of our trade names, characters, visual, literary and other intellectual properties (collectively “IP”) 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
|
•
|
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 IP 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, royalties from Tokyo Disney Resort, and charging tuition at English language learning centers in China (Disney English)
|
•
|
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
|
•
|
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, fees from licensing our IP for use in live entertainment productions, sales and licensing musical recordings and post-production services.
|
•
|
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
|
•
|
Disney and ESPN branded international television networks and channels (“International Channels”)
|
•
|
Direct-to-consumer (DTC) services:
|
◦
|
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 75% by the Company since September 25, 2017), which provides streaming technology services
|
▪
|
In addition, the segment has investments in entities that operate international television networks and digital media, which are accounted for under the equity method of accounting
|
•
|
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 technology services
|
•
|
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
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
vs. 2017 |
|
2017
vs. 2016 |
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
50,869
|
|
|
$
|
46,843
|
|
|
$
|
47,130
|
|
|
9
|
%
|
|
(1
|
)%
|
Products
|
8,565
|
|
|
8,294
|
|
|
8,502
|
|
|
3
|
%
|
|
(2
|
)%
|
|||
Total revenues
|
59,434
|
|
|
55,137
|
|
|
55,632
|
|
|
8
|
%
|
|
(1
|
)%
|
|||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of services (exclusive of depreciation and amortization)
|
(27,528
|
)
|
|
(25,320
|
)
|
|
(24,653
|
)
|
|
(9
|
)%
|
|
(3
|
)%
|
|||
Cost of products (exclusive of depreciation and amortization)
|
(5,198
|
)
|
|
(4,986
|
)
|
|
(5,340
|
)
|
|
(4
|
)%
|
|
7
|
%
|
|||
Selling, general, administrative and other
|
(8,860
|
)
|
|
(8,176
|
)
|
|
(8,754
|
)
|
|
(8
|
)%
|
|
7
|
%
|
|||
Depreciation and amortization
|
(3,011
|
)
|
|
(2,782
|
)
|
|
(2,527
|
)
|
|
(8
|
)%
|
|
(10
|
)%
|
|||
Total costs and expenses
|
(44,597
|
)
|
|
(41,264
|
)
|
|
(41,274
|
)
|
|
(8
|
)%
|
|
—
|
%
|
|||
Restructuring and impairment charges
|
(33
|
)
|
|
(98
|
)
|
|
(156
|
)
|
|
66
|
%
|
|
37
|
%
|
|||
Other income, net
|
601
|
|
|
78
|
|
|
—
|
|
|
>100
|
%
|
|
nm
|
|
|||
Interest expense, net
|
(574
|
)
|
|
(385
|
)
|
|
(260
|
)
|
|
(49
|
)%
|
|
(48
|
)%
|
|||
Equity in the income (loss) of investees, net
|
(102
|
)
|
|
320
|
|
|
926
|
|
|
nm
|
|
|
(65
|
)%
|
|||
Income before income taxes
|
14,729
|
|
|
13,788
|
|
|
14,868
|
|
|
7
|
%
|
|
(7
|
)%
|
|||
Income taxes
|
(1,663
|
)
|
|
(4,422
|
)
|
|
(5,078
|
)
|
|
62
|
%
|
|
13
|
%
|
|||
Net income
|
13,066
|
|
|
9,366
|
|
|
9,790
|
|
|
40
|
%
|
|
(4
|
)%
|
|||
Less: Net income attributable to noncontrolling interests
|
(468
|
)
|
|
(386
|
)
|
|
(399
|
)
|
|
(21
|
)%
|
|
3
|
%
|
|||
Net income attributable to The Walt Disney Company (Disney)
|
$
|
12,598
|
|
|
$
|
8,980
|
|
|
$
|
9,391
|
|
|
40
|
%
|
|
(4
|
)%
|
Earnings per share attributable to Disney:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted
|
$
|
8.36
|
|
|
$
|
5.69
|
|
|
$
|
5.73
|
|
|
47
|
%
|
|
(1
|
)%
|
Basic
|
$
|
8.40
|
|
|
$
|
5.73
|
|
|
$
|
5.76
|
|
|
47
|
%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
1,507
|
|
|
1,578
|
|
|
1,639
|
|
|
|
|
|
|||||
Basic
|
1,499
|
|
|
1,568
|
|
|
1,629
|
|
|
|
|
|
•
|
Consolidated Results and Non-Segment Items
|
•
|
Business Segment Results —
2018 vs. 2017
|
•
|
Business Segment Results —
2017 vs. 2016
|
•
|
Corporate and Unallocated Shared Expenses
|
•
|
Impact of U.S. Federal Income Tax Reform
|
•
|
Significant Developments
|
•
|
Liquidity and Capital Resources
|
•
|
Contractual Obligations, Commitments and Off Balance Sheet Arrangements
|
•
|
Critical Accounting Policies and Estimates
|
•
|
Forward-Looking Statements
|
(in millions)
|
|
2018
|
|
2017
|
|
% Change
Better/(Worse)
|
||||||
Gains on sales of real estate and property rights
|
|
$
|
560
|
|
|
$
|
—
|
|
|
nm
|
|
|
Settlement of litigation
|
|
38
|
|
|
(177
|
)
|
|
nm
|
|
|
||
Gain related to the acquisition of BAMTech
|
|
3
|
|
|
255
|
|
|
(99
|
)%
|
|
||
Other income, net
|
|
$
|
601
|
|
|
$
|
78
|
|
|
>100
|
%
|
|
(in millions)
|
|
2018
|
|
2017
|
|
% Change
Better/(Worse)
|
||||||
Interest expense
|
|
$
|
(682
|
)
|
|
$
|
(507
|
)
|
|
(35
|
)%
|
|
Interest and investment income
|
|
108
|
|
|
122
|
|
|
(11
|
)%
|
|
||
Interest expense, net
|
|
$
|
(574
|
)
|
|
$
|
(385
|
)
|
|
(49
|
)%
|
|
|
2018
|
|
2017
|
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
11.3
|
%
|
|
32.1
|
%
|
|
20.8
|
|
ppt
|
•
|
A net benefit of $1.7 billion, which reflected a $2.1 billion benefit from remeasuring our deferred tax balances to the new statutory rate (Deferred Remeasurement), partially offset by a charge of $0.4 billion for a one-time tax on certain accumulated foreign earnings (Deemed Repatriation Tax). This benefit had an impact of approximately 11.5 percentage points on the effective income tax rate.
|
•
|
A reduction in the Company’s fiscal 2018 U.S. statutory federal income tax rate to 24.5% from 35.0% in the prior year. Net of state tax and other related effects, the reduction in the statutory rate had an impact of approximately 8.2 percentage points on the effective income tax rate.
|
(in millions)
|
|
2017
|
|
2016
|
|
% Change
Better/(Worse)
|
||||||
Interest expense
|
|
$
|
(507
|
)
|
|
$
|
(354
|
)
|
|
(43
|
)%
|
|
Interest and investment income
|
|
122
|
|
|
94
|
|
|
30
|
%
|
|
||
Interest expense, net
|
|
$
|
(385
|
)
|
|
$
|
(260
|
)
|
|
(48
|
)%
|
|
|
2017
|
|
2016
|
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
32.1
|
%
|
|
34.2
|
%
|
|
2.1
|
|
ppt
|
•
|
A benefit of $1.7 billion from the Tax Act Deferred Remeasurement, net of the Deemed Repatriation Tax
|
•
|
A benefit of $601 million comprising $560 million in gains from the sales of real estate and property rights, $38 million from insurance recoveries in connection with the settlement of a fiscal 2017 litigation matter and $3 million from an adjustment related to a non-cash gain recognized in fiscal 2017 for the acquisition of a controlling interest in BAMTech
|
•
|
Impairments of $210 million for Vice and Villages Nature equity investments
|
•
|
Restructuring and impairment charges of $33 million
|
•
|
A non-cash net gain of $255 million in connection with the acquisition of a controlling interest in BAMTech
|
•
|
A charge, net of committed insurance recoveries, of $177 million in connection with the settlement of litigation
|
•
|
Restructuring and impairment charges of $98 million
|
•
|
A benefit of $332 million for the Vice Gain
|
•
|
Restructuring and impairment charges of $156 million
|
•
|
A charge of $129 million related to our Infinity game business
|
(in millions, except per share data)
|
Pre-Tax Income/(Loss)
|
|
Tax Benefit/(Expense)
(1)
|
|
After-Tax Income/(Loss)
|
|
EPS Favorable/(Adverse)
(2)
|
||||||||
Year Ended September 29, 2018:
|
|
|
|
|
|
|
|
||||||||
Net benefit from the Tax Act
|
$
|
—
|
|
|
$
|
1,701
|
|
|
$
|
1,701
|
|
|
$
|
1.11
|
|
Gain from sale of real estate, property rights and other
|
601
|
|
|
(158
|
)
|
|
443
|
|
|
0.30
|
|
||||
Impairment of equity investments
|
(210
|
)
|
|
49
|
|
|
(161
|
)
|
|
(0.11
|
)
|
||||
Restructuring and impairment charges
|
(33
|
)
|
|
7
|
|
|
(26
|
)
|
|
(0.02
|
)
|
||||
Total
|
$
|
358
|
|
|
$
|
1,599
|
|
|
$
|
1,957
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended September 30, 2017:
|
|
|
|
|
|
|
|
||||||||
Settlement of litigation
|
$
|
(177
|
)
|
|
$
|
65
|
|
|
$
|
(112
|
)
|
|
$
|
(0.07
|
)
|
Restructuring and impairment charges
|
(98
|
)
|
|
31
|
|
|
(67
|
)
|
|
(0.04
|
)
|
||||
Gain related to the acquisition of BAMTech
|
255
|
|
|
(93
|
)
|
|
162
|
|
|
0.10
|
|
||||
Total
|
$
|
(20
|
)
|
|
$
|
3
|
|
|
$
|
(17
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
||||||||
Year Ended October 1, 2016:
|
|
|
|
|
|
|
|
||||||||
Vice Gain
|
$
|
332
|
|
|
$
|
(122
|
)
|
|
$
|
210
|
|
|
$
|
0.13
|
|
Restructuring and impairment charges
|
(156
|
)
|
|
43
|
|
|
(113
|
)
|
|
(0.07
|
)
|
||||
Infinity Charge
(3)
|
(129
|
)
|
|
47
|
|
|
(82
|
)
|
|
(0.05
|
)
|
||||
Total
|
$
|
47
|
|
|
$
|
(32
|
)
|
|
$
|
15
|
|
|
$
|
0.01
|
|
(1)
|
Tax benefit/expense adjustments are determined using the tax rate applicable to the individual item affecting comparability.
|
(2)
|
EPS is net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding.
|
(3)
|
Recorded in “Cost of products” in the Consolidated Statements of Income. See Note 1 to the Consolidated Financial Statements.
|
•
|
Disney and ESPN-branded international cable networks and investments in Hulu and Vice were previously reported in Media Networks and are now reported in DTCI
|
•
|
Addressable ad sales and related operating costs were previously reported in Media Networks and are now reported in DTCI
|
•
|
The legacy Parks and Resorts and Consumer Products & Interactive Media segments were combined into the Parks, Experiences & Consumer Products segment
|
•
|
Certain minor direct-to-consumer businesses that were previously reported in the Studio Entertainment, Consumer Products & Interactive Media and Media Networks segments are now reported in DTCI
|
•
|
Certain costs previously included in Corporate and unallocated shared expenses are now reported in DTCI
|
|
|
Year Ended September 29, 2018
|
||||||||||||||
(unaudited; in millions)
|
|
As Originally Reported
|
|
Business Transfers to DTCI
(1)
|
|
Intersegment Content Transactions
|
|
As Recast
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
24,500
|
|
|
$
|
(3,049
|
)
|
|
$
|
471
|
|
|
$
|
21,922
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
20,296
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
4,651
|
|
|
(246
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
24,947
|
|
|
(246
|
)
|
|
—
|
|
|
24,701
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
9,987
|
|
|
(119
|
)
|
|
197
|
|
|
10,065
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
3,414
|
|
|
—
|
|
|
3,414
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
(668
|
)
|
|
(668
|
)
|
||||
|
|
$
|
59,434
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
59,434
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment operating income/(loss):
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
6,625
|
|
|
$
|
711
|
|
|
$
|
2
|
|
|
$
|
7,338
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
4,469
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
1,632
|
|
|
(6
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
6,101
|
|
|
(6
|
)
|
|
—
|
|
|
6,095
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
2,980
|
|
|
16
|
|
|
8
|
|
|
3,004
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
(738
|
)
|
|
—
|
|
|
(738
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||
|
|
$
|
15,706
|
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
15,689
|
|
|
|
Year Ended September 30, 2017
|
||||||||||||||
(unaudited; in millions)
|
|
As Originally Reported
|
|
Business Transfers to DTCI
|
|
Intersegment Content Transactions
|
|
As Recast
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
23,510
|
|
|
$
|
(2,665
|
)
|
|
$
|
454
|
|
|
$
|
21,299
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
18,415
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
4,833
|
|
|
(224
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
23,248
|
|
|
(224
|
)
|
|
—
|
|
|
23,024
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
8,379
|
|
|
(186
|
)
|
|
159
|
|
|
8,352
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
3,075
|
|
|
—
|
|
|
3,075
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
(613
|
)
|
|
(613
|
)
|
||||
|
|
$
|
55,137
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,137
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment operating income/(loss):
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
6,902
|
|
|
$
|
292
|
|
|
$
|
2
|
|
|
$
|
7,196
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
3,774
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
1,744
|
|
|
(31
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
5,518
|
|
|
(31
|
)
|
|
—
|
|
|
5,487
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
2,355
|
|
|
23
|
|
|
(15
|
)
|
|
2,363
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
(284
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||
|
|
$
|
14,775
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,775
|
|
|
|
Year Ended October 1, 2016
|
||||||||||||||
(unaudited; in millions)
|
|
As Originally Reported
|
|
Business Transfers to DTCI
|
|
Intersegment Content Transactions
|
|
As Recast
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
23,689
|
|
|
$
|
(2,820
|
)
|
|
$
|
457
|
|
|
$
|
21,326
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
16,974
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
5,528
|
|
|
(244
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
22,502
|
|
|
(244
|
)
|
|
—
|
|
|
22,258
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
9,441
|
|
|
(242
|
)
|
|
170
|
|
|
9,369
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
3,306
|
|
|
—
|
|
|
3,306
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
(627
|
)
|
|
(627
|
)
|
||||
|
|
$
|
55,632
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,632
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment operating income/(loss):
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
|
$
|
7,755
|
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
7,804
|
|
|
|
|
|
|
|
|
|
|
||||||||
Parks & Resorts
|
|
3,298
|
|
|
—
|
|
|
|
|
|
||||||
Consumer Products & Interactive Media
|
|
1,965
|
|
|
(65
|
)
|
|
|
|
|
||||||
Parks, Experiences & Consumer Products
|
|
5,263
|
|
|
(65
|
)
|
|
—
|
|
|
5,198
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Studio Entertainment
|
|
2,703
|
|
|
54
|
|
|
10
|
|
|
2,767
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Direct-to-Consumer & International
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||
|
|
$
|
15,721
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,721
|
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2016
|
|
2018
vs. 2017 |
|
2017
vs. 2016 |
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
21,922
|
|
|
$
|
21,299
|
|
|
$
|
21,326
|
|
|
3
|
%
|
|
—
|
%
|
Parks, Experiences & Consumer Products
|
24,701
|
|
|
23,024
|
|
|
22,258
|
|
|
7
|
%
|
|
3
|
%
|
|||
Studio Entertainment
|
10,065
|
|
|
8,352
|
|
|
9,369
|
|
|
21
|
%
|
|
(11
|
)%
|
|||
Direct-to-Consumer & International
|
3,414
|
|
|
3,075
|
|
|
3,306
|
|
|
11
|
%
|
|
(7
|
)%
|
|||
Eliminations
|
(668
|
)
|
|
(613
|
)
|
|
(627
|
)
|
|
(9
|
)%
|
|
2
|
%
|
|||
|
$
|
59,434
|
|
|
$
|
55,137
|
|
|
$
|
55,632
|
|
|
8
|
%
|
|
(1
|
)%
|
Segment operating income/(loss):
|
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
7,338
|
|
|
$
|
7,196
|
|
|
$
|
7,804
|
|
|
2
|
%
|
|
(8
|
)%
|
Parks, Experiences & Consumer Products
|
6,095
|
|
|
5,487
|
|
|
5,198
|
|
|
11
|
%
|
|
6
|
%
|
|||
Studio Entertainment
|
3,004
|
|
|
2,363
|
|
|
2,767
|
|
|
27
|
%
|
|
(15
|
)%
|
|||
Direct-to-Consumer & International
|
(738
|
)
|
|
(284
|
)
|
|
(38
|
)
|
|
>(100) %
|
|
|
>(100) %
|
|
|||
Eliminations
|
(10
|
)
|
|
13
|
|
|
(10
|
)
|
|
nm
|
|
|
nm
|
|
|||
|
$
|
15,689
|
|
|
$
|
14,775
|
|
|
$
|
15,721
|
|
|
6
|
%
|
|
(6
|
)%
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2016
|
|
2018
vs. 2017 |
|
2017
vs. 2016 |
||||||||
Income before income taxes
|
$
|
14,729
|
|
|
$
|
13,788
|
|
|
$
|
14,868
|
|
|
7
|
%
|
|
(7
|
)%
|
Add/(subtract):
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate and unallocated shared expenses
|
744
|
|
|
582
|
|
|
640
|
|
|
(28
|
)%
|
|
9
|
%
|
|||
Restructuring and impairment charges
|
33
|
|
|
98
|
|
|
156
|
|
|
66
|
%
|
|
37
|
%
|
|||
Other income, net
|
(601
|
)
|
|
(78
|
)
|
|
—
|
|
|
>100
|
%
|
|
nm
|
|
|||
Interest expense, net
|
574
|
|
|
385
|
|
|
260
|
|
|
(49
|
)%
|
|
(48
|
)%
|
|||
Impairment of equity investments
|
210
|
|
|
—
|
|
|
—
|
|
|
nm
|
|
|
nm
|
|
|||
Vice Gain
|
—
|
|
|
—
|
|
|
(332
|
)
|
|
nm
|
|
|
nm
|
|
|||
Infinity Charge
|
—
|
|
|
—
|
|
|
129
|
|
|
nm
|
|
|
nm
|
|
|||
Segment operating income
|
$
|
15,689
|
|
|
$
|
14,775
|
|
|
$
|
15,721
|
|
|
6
|
%
|
|
(6
|
)%
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
11,907
|
|
|
$
|
11,324
|
|
|
5
|
%
|
|
Advertising
|
6,586
|
|
|
6,938
|
|
|
(5
|
)%
|
|
||
TV/SVOD distribution and other
|
3,429
|
|
|
3,037
|
|
|
13
|
%
|
|
||
Total revenues
|
21,922
|
|
|
21,299
|
|
|
3
|
%
|
|
||
Operating expenses
|
(13,197
|
)
|
|
(12,754
|
)
|
|
(3
|
)%
|
|
||
Selling, general, administrative and other
|
(1,899
|
)
|
|
(1,909
|
)
|
|
1
|
%
|
|
||
Depreciation and amortization
|
(199
|
)
|
|
(206
|
)
|
|
3
|
%
|
|
||
Equity in the income of investees
|
711
|
|
|
766
|
|
|
(7
|
)%
|
|
||
Operating Income
|
$
|
7,338
|
|
|
$
|
7,196
|
|
|
2
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
14,610
|
|
|
$
|
14,416
|
|
|
1
|
%
|
|
Broadcasting
|
7,312
|
|
|
6,883
|
|
|
6
|
%
|
|
||
|
$
|
21,922
|
|
|
$
|
21,299
|
|
|
3
|
%
|
|
Supplemental operating income detail
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
5,230
|
|
|
$
|
5,174
|
|
|
1
|
%
|
|
Broadcasting
|
1,397
|
|
|
1,256
|
|
|
11
|
%
|
|
||
Equity in the income of investees
|
711
|
|
|
766
|
|
|
(7
|
)%
|
|
||
|
$
|
7,338
|
|
|
$
|
7,196
|
|
|
2
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theme park admissions
|
$
|
7,183
|
|
|
$
|
6,504
|
|
|
10
|
%
|
|
Parks & Experiences merchandise, food and beverage
|
5,674
|
|
|
5,154
|
|
|
10
|
%
|
|
||
Resorts and vacations
|
5,938
|
|
|
5,378
|
|
|
10
|
%
|
|
||
Merchandise licensing and retail
|
4,249
|
|
|
4,494
|
|
|
(5
|
)%
|
|
||
Parks licensing and other
|
1,657
|
|
|
1,494
|
|
|
11
|
%
|
|
||
Total revenues
|
24,701
|
|
|
23,024
|
|
|
7
|
%
|
|
||
Operating expenses
|
(13,326
|
)
|
|
(12,455
|
)
|
|
(7
|
)%
|
|
||
Selling, general, administrative and other
|
(2,930
|
)
|
|
(2,896
|
)
|
|
(1
|
)%
|
|
||
Depreciation and amortization
|
(2,327
|
)
|
|
(2,161
|
)
|
|
(8
|
)%
|
|
||
Equity in the loss of investees
|
(23
|
)
|
|
(25
|
)
|
|
8
|
%
|
|
||
Operating Income
|
$
|
6,095
|
|
|
$
|
5,487
|
|
|
11
|
%
|
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Fiscal Year 2018
|
|
Fiscal Year 2017
|
|
Fiscal Year 2018
|
|
Fiscal Year 2017
|
|
Fiscal Year 2018
|
|
Fiscal Year 2017
|
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/ (decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
4
|
%
|
|
2
|
%
|
|
4
|
%
|
|
47
|
%
|
|
4
|
%
|
|
13
|
%
|
||||||
Per Capita Guest Spending
|
6
|
%
|
|
2
|
%
|
|
5
|
%
|
|
(1
|
)%
|
|
6
|
%
|
|
(1
|
)%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
88
|
%
|
|
88
|
%
|
|
84
|
%
|
|
80
|
%
|
|
87
|
%
|
|
86
|
%
|
||||||
Available Room Nights
(in thousands)
|
10,045
|
|
|
10,205
|
|
|
3,179
|
|
|
3,022
|
|
|
13,224
|
|
|
13,227
|
|
||||||
Per Room Guest Spending
|
|
$345
|
|
|
|
$317
|
|
|
|
$297
|
|
|
|
$289
|
|
|
|
$334
|
|
|
|
$311
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate as well as guest spending on food, beverage and merchandise at the hotels. Resort statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal 2017 average foreign exchange rate.
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
Parks & Experiences
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
16,161
|
|
|
$
|
14,812
|
|
|
9
|
%
|
|
International
|
4,135
|
|
|
3,603
|
|
|
15
|
%
|
|
||
Consumer Products
|
4,405
|
|
|
4,609
|
|
|
(4
|
)%
|
|
||
|
$
|
24,701
|
|
|
$
|
23,024
|
|
|
7
|
%
|
|
Supplemental operating income detail
|
|
|
|
|
|
|
|||||
Parks & Experiences
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
4,013
|
|
|
$
|
3,464
|
|
|
16
|
%
|
|
International
|
456
|
|
|
310
|
|
|
47
|
%
|
|
||
Consumer Products
|
1,626
|
|
|
1,713
|
|
|
(5
|
)%
|
|
||
|
$
|
6,095
|
|
|
$
|
5,487
|
|
|
11
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
4,303
|
|
|
$
|
2,903
|
|
|
48
|
%
|
|
Home entertainment
|
1,647
|
|
|
1,677
|
|
|
(2
|
)%
|
|
||
TV/SVOD distribution and other
|
4,115
|
|
|
3,772
|
|
|
9
|
%
|
|
||
Total revenues
|
10,065
|
|
|
8,352
|
|
|
21
|
%
|
|
||
Operating expenses
|
(4,449
|
)
|
|
(3,718
|
)
|
|
(20
|
)%
|
|
||
Selling, general, administrative and other
|
(2,493
|
)
|
|
(2,156
|
)
|
|
(16
|
)%
|
|
||
Depreciation and amortization
|
(119
|
)
|
|
(115
|
)
|
|
(3
|
)%
|
|
||
Operating Income
|
$
|
3,004
|
|
|
$
|
2,363
|
|
|
27
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
1,372
|
|
|
$
|
1,335
|
|
|
3
|
%
|
|
Advertising
|
1,311
|
|
|
1,293
|
|
|
1
|
%
|
|
||
Subscription fees and other
|
731
|
|
|
447
|
|
|
64
|
%
|
|
||
Total revenues
|
3,414
|
|
|
3,075
|
|
|
11
|
%
|
|
||
Operating expenses
|
(2,384
|
)
|
|
(1,983
|
)
|
|
(20
|
)%
|
|
||
Selling, general, administrative and other
|
(1,003
|
)
|
|
(861
|
)
|
|
(16
|
)%
|
|
||
Depreciation and amortization
|
(185
|
)
|
|
(94
|
)
|
|
(97
|
)%
|
|
||
Equity in the loss of investees
|
(580
|
)
|
|
(421
|
)
|
|
(38
|
)%
|
|
||
Operating Loss
|
$
|
(738
|
)
|
|
$
|
(284
|
)
|
|
>(100
|
)%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
International Channels
|
$
|
1,920
|
|
|
$
|
1,853
|
|
|
4
|
%
|
|
DTC businesses and other
|
1,494
|
|
|
1,222
|
|
|
22
|
%
|
|
||
|
$
|
3,414
|
|
|
$
|
3,075
|
|
|
11
|
%
|
|
Supplemental operating income/(loss) detail
|
|
|
|
|
|
|
|||||
International Channels
|
$
|
311
|
|
|
$
|
233
|
|
|
33
|
%
|
|
DTC businesses and other
|
(469
|
)
|
|
(96
|
)
|
|
>(100) %
|
|
|||
Equity in the loss of investees
|
(580
|
)
|
|
(421
|
)
|
|
(38
|
)%
|
|
||
|
$
|
(738
|
)
|
|
$
|
(284
|
)
|
|
>(100) %
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 29, 2018
|
|
September 30, 2017
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Studio Entertainment:
|
|
|
|
|
|
|
|||||
Content transactions with Media Networks
|
$
|
(169
|
)
|
|
$
|
(137
|
)
|
|
(23
|
)%
|
|
Content transactions with DTCI
|
(28
|
)
|
|
(22
|
)
|
|
(27
|
)%
|
|
||
Media Networks:
|
|
|
|
|
|
|
|||||
Content transactions with DTCI
|
(471
|
)
|
|
(454
|
)
|
|
(4
|
)%
|
|
||
Total
|
$
|
(668
|
)
|
|
$
|
(613
|
)
|
|
(9
|
)%
|
|
|
|
|
|
|
|
|
|||||
Operating Income
|
|
|
|
|
|
|
|||||
Studio Entertainment:
|
|
|
|
|
|
|
|||||
Content transactions with Media Networks
|
$
|
(8
|
)
|
|
$
|
15
|
|
|
nm
|
|
|
Media Networks:
|
|
|
|
|
|
|
|||||
Content transactions with DTCI
|
(2
|
)
|
|
(2
|
)
|
|
—
|
%
|
|
||
Total
|
$
|
(10
|
)
|
|
$
|
13
|
|
|
nm
|
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
11,324
|
|
|
$
|
10,960
|
|
|
3
|
%
|
|
Advertising
|
6,938
|
|
|
7,202
|
|
|
(4
|
)%
|
|
||
TV/SVOD distribution and other
|
3,037
|
|
|
3,164
|
|
|
(4
|
)%
|
|
||
Total revenues
|
21,299
|
|
|
21,326
|
|
|
—
|
%
|
|
||
Operating expenses
|
(12,754
|
)
|
|
(12,127
|
)
|
|
(5
|
)%
|
|
||
Selling, general, administrative and other
|
(1,909
|
)
|
|
(1,955
|
)
|
|
2
|
%
|
|
||
Depreciation and amortization
|
(206
|
)
|
|
(219
|
)
|
|
6
|
%
|
|
||
Equity in the income of investees
|
766
|
|
|
779
|
|
|
(2
|
)%
|
|
||
Operating Income
|
$
|
7,196
|
|
|
$
|
7,804
|
|
|
(8
|
)%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
14,416
|
|
|
$
|
14,409
|
|
|
—
|
%
|
|
Broadcasting
|
6,883
|
|
|
6,917
|
|
|
—
|
%
|
|
||
|
$
|
21,299
|
|
|
$
|
21,326
|
|
|
—
|
%
|
|
Supplemental operating income detail
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
5,174
|
|
|
$
|
5,760
|
|
|
(10
|
)%
|
|
Broadcasting
|
1,256
|
|
|
1,265
|
|
|
(1
|
)%
|
|
||
Equity in the income of investees
|
766
|
|
|
779
|
|
|
(2
|
)%
|
|
||
|
$
|
7,196
|
|
|
$
|
7,804
|
|
|
(8
|
)%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theme park admissions
|
$
|
6,504
|
|
|
$
|
5,900
|
|
|
10
|
%
|
|
Parks & Experiences merchandise, food and beverage
|
5,154
|
|
|
4,690
|
|
|
10
|
%
|
|
||
Resorts and vacations
|
5,378
|
|
|
5,088
|
|
|
6
|
%
|
|
||
Merchandise licensing and retail
|
4,494
|
|
|
5,214
|
|
|
(14
|
)%
|
|
||
Parks licensing and other
|
1,494
|
|
|
1,366
|
|
|
9
|
%
|
|
||
Total revenues
|
23,024
|
|
|
22,258
|
|
|
3
|
%
|
|
||
Operating expenses
|
(12,455
|
)
|
|
(12,176
|
)
|
|
(2
|
)%
|
|
||
Selling, general, administrative and other
|
(2,896
|
)
|
|
(2,992
|
)
|
|
3
|
%
|
|
||
Depreciation and amortization
|
(2,161
|
)
|
|
(1,889
|
)
|
|
(14
|
)%
|
|
||
Equity in the loss of investees
|
(25
|
)
|
|
(3
|
)
|
|
>(100
|
)%
|
|
||
Operating Income
|
$
|
5,487
|
|
|
$
|
5,198
|
|
|
6
|
%
|
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Fiscal Year 2017
|
|
Fiscal Year 2016
|
|
Fiscal Year 2017
|
|
Fiscal Year 2016
|
|
Fiscal Year 2017
|
|
Fiscal Year 2016
|
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/ (decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
2
|
%
|
|
(1
|
)%
|
|
47
|
%
|
|
5
|
%
|
|
13
|
%
|
|
1
|
%
|
||||||
Per Capita Guest Spending
|
2
|
%
|
|
7
|
%
|
|
(1
|
)%
|
|
6
|
%
|
|
(1
|
)%
|
|
7
|
%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
88
|
%
|
|
89
|
%
|
|
80
|
%
|
|
78
|
%
|
|
86
|
%
|
|
87
|
%
|
||||||
Available Room Nights
(in thousands) |
10,205
|
|
|
10,382
|
|
|
3,022
|
|
|
2,600
|
|
|
13,227
|
|
|
12,982
|
|
||||||
Per Room Guest Spending
|
|
$317
|
|
|
|
$305
|
|
|
|
$292
|
|
|
|
$278
|
|
|
|
$312
|
|
|
|
$301
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate as well as guest spending on food, beverage and merchandise at the hotels. Resort statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal 2016 average foreign exchange rate.
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
Parks & Experiences
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
14,812
|
|
|
$
|
14,235
|
|
|
4
|
%
|
|
International
|
3,603
|
|
|
2,732
|
|
|
32
|
%
|
|
||
Consumer Products
|
4,609
|
|
|
5,291
|
|
|
(13
|
)%
|
|
||
|
$
|
23,024
|
|
|
$
|
22,258
|
|
|
3
|
%
|
|
Supplemental operating income detail
|
|
|
|
|
|
|
|||||
Parks & Experiences
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
3,464
|
|
|
$
|
3,362
|
|
|
3
|
%
|
|
International
|
310
|
|
|
(61
|
)
|
|
nm
|
|
|
||
Consumer Products
|
1,713
|
|
|
1,897
|
|
|
(10
|
)%
|
|
||
|
$
|
5,487
|
|
|
$
|
5,198
|
|
|
6
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
2,903
|
|
|
$
|
3,672
|
|
|
(21
|
)%
|
|
Home entertainment
|
1,677
|
|
|
1,980
|
|
|
(15
|
)%
|
|
||
TV/SVOD distribution and other
|
3,772
|
|
|
3,717
|
|
|
1
|
%
|
|
||
Total revenues
|
8,352
|
|
|
9,369
|
|
|
(11
|
)%
|
|
||
Operating expenses
|
(3,718
|
)
|
|
(3,972
|
)
|
|
6
|
%
|
|
||
Selling, general, administrative and other
|
(2,156
|
)
|
|
(2,510
|
)
|
|
14
|
%
|
|
||
Depreciation and amortization
|
(115
|
)
|
|
(120
|
)
|
|
4
|
%
|
|
||
Operating Income
|
$
|
2,363
|
|
|
$
|
2,767
|
|
|
(15
|
)%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
1,335
|
|
|
$
|
1,299
|
|
|
3
|
%
|
|
Advertising
|
1,293
|
|
|
1,441
|
|
|
(10
|
)%
|
|
||
Subscription fees and other
|
447
|
|
|
566
|
|
|
(21
|
)%
|
|
||
Total revenues
|
3,075
|
|
|
3,306
|
|
|
(7
|
)%
|
|
||
Operating expenses
|
(1,983
|
)
|
|
(2,195
|
)
|
|
10
|
%
|
|
||
Selling, general, administrative and other
|
(861
|
)
|
|
(882
|
)
|
|
2
|
%
|
|
||
Depreciation and amortization
|
(94
|
)
|
|
(85
|
)
|
|
(11
|
)%
|
|
||
Equity in the loss of investees
|
(421
|
)
|
|
(182
|
)
|
|
>(100
|
)%
|
|
||
Operating Loss
|
$
|
(284
|
)
|
|
$
|
(38
|
)
|
|
>(100
|
)%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Supplemental revenue detail
|
|
|
|
|
|
|
|||||
International Channels
|
$
|
1,853
|
|
|
$
|
1,894
|
|
|
(2
|
)%
|
|
Other
|
1,222
|
|
|
1,412
|
|
|
(13
|
)%
|
|
||
|
$
|
3,075
|
|
|
$
|
3,306
|
|
|
(7
|
)%
|
|
Supplemental operating income/(loss) detail
|
|
|
|
|
|
|
|||||
International Channels
|
$
|
233
|
|
|
$
|
234
|
|
|
—
|
%
|
|
Other
|
(96
|
)
|
|
(90
|
)
|
|
(7
|
)%
|
|
||
Equity in the income/(loss) of investees
|
(421
|
)
|
|
(182
|
)
|
|
>(100) %
|
|
|||
|
$
|
(284
|
)
|
|
$
|
(38
|
)
|
|
>(100) %
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(unaudited; in millions)
|
September 30, 2017
|
|
October 1, 2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Studio Entertainment:
|
|
|
|
|
|
|
|||||
Content transactions with Media Networks
|
$
|
(137
|
)
|
|
$
|
(159
|
)
|
|
14
|
%
|
|
Content transactions with DTCI
|
(22
|
)
|
|
(11
|
)
|
|
(100
|
)%
|
|
||
Media Networks:
|
|
|
|
|
|
|
|||||
Content transactions with DTCI
|
(454
|
)
|
|
(457
|
)
|
|
1
|
%
|
|
||
Total
|
$
|
(613
|
)
|
|
$
|
(627
|
)
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|||||
Operating Income
|
|
|
|
|
|
|
|||||
Studio Entertainment:
|
|
|
|
|
|
|
|||||
Content transactions with Media Networks
|
$
|
15
|
|
|
$
|
(10
|
)
|
|
nm
|
|
|
Media Networks:
|
|
|
|
|
|
|
|||||
Content transactions with DTCI
|
(2
|
)
|
|
—
|
|
|
nm
|
|
|
||
Total
|
$
|
13
|
|
|
$
|
(10
|
)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
% Change
Better/(Worse) |
|
||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
|
2018
vs. 2017 |
|
2017
vs. 2016 |
|
||||||||
Corporate and unallocated shared expenses
|
|
$
|
(744
|
)
|
|
$
|
(582
|
)
|
|
$
|
(640
|
)
|
|
(28
|
)%
|
|
9
|
%
|
|
•
|
The Company’s federal statutory income tax rate was reduced from 35.0% to 24.5% for fiscal 2018 and to 21.0% for following years.
|
•
|
For the year ended September 29, 2018, the Company recognized a net benefit of $1.7 billion, which reflected a $2.1 billion benefit from the Deferred Remeasurement, partially offset by a charge of $0.4 billion for the Deemed Repatriation Tax.
|
•
|
Generally, there will no longer be a U.S. federal income tax cost on the repatriation of foreign earnings.
|
•
|
The Company will generally be eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions 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 elimination of the domestic production activities deduction.
|
•
|
The taxation of certain foreign derived income in the U.S. at an effective rate of approximately 13% (which increases to approximately 16% in 2025) rather than the general statutory rate of 21%.
|
•
|
A minimum effective tax on certain foreign earnings of approximately 13%.
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash provided by operations
|
|
$
|
14,295
|
|
|
$
|
12,343
|
|
|
$
|
13,136
|
|
Cash used in investing activities
|
|
(5,336
|
)
|
|
(4,111
|
)
|
|
(5,758
|
)
|
|||
Cash used in financing activities
|
|
(8,843
|
)
|
|
(8,959
|
)
|
|
(7,220
|
)
|
|||
Impact of exchange rates on cash, cash equivalents and restricted cash
|
|
(25
|
)
|
|
31
|
|
|
(123
|
)
|
|||
Change in cash, cash equivalents and restricted cash
|
|
$
|
91
|
|
|
$
|
(696
|
)
|
|
$
|
35
|
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Media Networks
|
|
|
|
|
|
|
||||||
Cable Networks
|
|
$
|
111
|
|
|
$
|
122
|
|
|
$
|
129
|
|
Broadcasting
|
|
88
|
|
|
84
|
|
|
88
|
|
|||
Total Media Networks
|
|
199
|
|
|
206
|
|
|
217
|
|
|||
Parks, Experiences & Consumer Products
|
|
|
|
|
|
|
||||||
Domestic
|
|
1,449
|
|
|
1,371
|
|
|
1,314
|
|
|||
International
|
|
768
|
|
|
679
|
|
|
468
|
|
|||
Total Parks, Experiences & Consumer Products
|
|
2,217
|
|
|
2,050
|
|
|
1,782
|
|
|||
Studio Entertainment
|
|
55
|
|
|
50
|
|
|
46
|
|
|||
Direct-to-Consumer & International
|
|
106
|
|
|
74
|
|
|
61
|
|
|||
Corporate
|
|
181
|
|
|
206
|
|
|
214
|
|
|||
Total depreciation expense
|
|
$
|
2,758
|
|
|
$
|
2,586
|
|
|
$
|
2,320
|
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Media Networks
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Parks, Experiences & Consumer Products
|
|
110
|
|
|
111
|
|
|
107
|
|
|||
Studio Entertainment
|
|
64
|
|
|
65
|
|
|
74
|
|
|||
Direct-to-Consumer & International
|
|
79
|
|
|
20
|
|
|
24
|
|
|||
Total amortization of intangible assets
|
|
$
|
253
|
|
|
$
|
196
|
|
|
$
|
207
|
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balances:
|
|
|
|
|
|
|
||||||
Production and programming assets
|
|
$
|
8,759
|
|
|
$
|
7,547
|
|
|
$
|
7,353
|
|
Programming liabilities
|
|
(1,106
|
)
|
|
(1,063
|
)
|
|
(989
|
)
|
|||
|
|
7,653
|
|
|
6,484
|
|
|
6,364
|
|
|||
Spending:
|
|
|
|
|
|
|
||||||
Television program licenses and rights
|
|
7,770
|
|
|
7,406
|
|
|
6,585
|
|
|||
Film and television production
|
|
5,590
|
|
|
5,319
|
|
|
4,632
|
|
|||
|
|
13,360
|
|
|
12,725
|
|
|
11,217
|
|
|||
Amortization:
|
|
|
|
|
|
|
||||||
Television program licenses and rights
|
|
(7,966
|
)
|
|
(7,595
|
)
|
|
(6,678
|
)
|
|||
Film and television production
|
|
(4,871
|
)
|
|
(4,055
|
)
|
|
(4,438
|
)
|
|||
|
|
(12,837
|
)
|
|
(11,650
|
)
|
|
(11,116
|
)
|
|||
Change in film and television production and
programming costs
|
|
523
|
|
|
1,075
|
|
|
101
|
|
|||
Other non-cash activity
|
|
(152
|
)
|
|
94
|
|
|
19
|
|
|||
Ending balances:
|
|
|
|
|
|
|
||||||
Production and programming assets
|
|
9,202
|
|
|
8,759
|
|
|
7,547
|
|
|||
Programming liabilities
|
|
(1,178
|
)
|
|
(1,106
|
)
|
|
(1,063
|
)
|
|||
|
|
$
|
8,024
|
|
|
$
|
7,653
|
|
|
$
|
6,484
|
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Media Networks
|
|
|
|
|
|
|
||||||
Cable Networks
|
|
$
|
96
|
|
|
$
|
64
|
|
|
$
|
81
|
|
Broadcasting
|
|
107
|
|
|
67
|
|
|
73
|
|
|||
Parks, Experiences & Consumer Products
|
|
|
|
|
|
|
||||||
Domestic
|
|
3,223
|
|
|
2,392
|
|
|
2,215
|
|
|||
International
|
|
677
|
|
|
827
|
|
|
2,053
|
|
|||
Studio Entertainment
|
|
96
|
|
|
85
|
|
|
86
|
|
|||
Direct-to-Consumer & International
|
|
107
|
|
|
30
|
|
|
65
|
|
|||
Corporate
|
|
159
|
|
|
158
|
|
|
200
|
|
|||
|
|
$
|
4,465
|
|
|
$
|
3,623
|
|
|
$
|
4,773
|
|
(in millions)
|
|
September 30, 2017
|
|
Borrowings
|
|
Payments
|
|
Other
Activity
|
|
September 29, 2018
|
||||||||||
Commercial paper with original maturities less than three months, net
(1)
|
|
$
|
1,151
|
|
|
$
|
—
|
|
|
$
|
(1,099
|
)
|
|
$
|
(2
|
)
|
|
$
|
50
|
|
Commercial paper with original maturities greater than three months
|
|
1,621
|
|
|
8,079
|
|
|
(8,748
|
)
|
|
3
|
|
|
955
|
|
|||||
U.S. and European medium-term notes
|
|
19,721
|
|
|
—
|
|
|
(1,800
|
)
|
|
21
|
|
|
17,942
|
|
|||||
Asia Theme Parks borrowings
|
|
1,145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,145
|
|
|||||
BAMTech acquisition payable
|
|
1,581
|
|
|
—
|
|
|
(1,581
|
)
|
|
—
|
|
|
—
|
|
|||||
Foreign currency denominated debt and other
(2)
|
|
72
|
|
|
1,056
|
|
|
(71
|
)
|
|
(275
|
)
|
|
782
|
|
|||||
Total
|
|
$
|
25,291
|
|
|
$
|
9,135
|
|
|
$
|
(13,299
|
)
|
|
$
|
(253
|
)
|
|
$
|
20,874
|
|
(1)
|
Borrowings and reductions of borrowings are reported net.
|
(2)
|
The other activity is due to market value adjustments for debt with qualifying hedges.
|
|
|
Payments Due by Period
|
||||||||||||||||||
(in millions)
|
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
4-5
Years
|
|
More than
5 Years
|
||||||||||
Borrowings (Note 8)
(1)
|
|
$
|
28,240
|
|
|
$
|
4,412
|
|
|
$
|
6,095
|
|
|
$
|
3,803
|
|
|
$
|
13,930
|
|
Operating lease commitments (Note 14)
|
|
3,584
|
|
|
681
|
|
|
1,041
|
|
|
642
|
|
|
1,220
|
|
|||||
Capital lease obligations (Note 14)
|
|
540
|
|
|
24
|
|
|
40
|
|
|
34
|
|
|
442
|
|
|||||
Sports programming commitments (Note 14)
|
|
42,536
|
|
|
6,835
|
|
|
14,216
|
|
|
9,291
|
|
|
12,194
|
|
|||||
Broadcast programming commitments (Note 14)
|
|
2,077
|
|
|
505
|
|
|
536
|
|
|
389
|
|
|
647
|
|
|||||
Total sports and other broadcast programming commitments
|
|
44,613
|
|
|
7,340
|
|
|
14,752
|
|
|
9,680
|
|
|
12,841
|
|
|||||
Other
(2)
|
|
7,294
|
|
|
1,793
|
|
|
1,837
|
|
|
1,996
|
|
|
1,668
|
|
|||||
Total contractual obligations
(3)
|
|
$
|
84,271
|
|
|
$
|
14,250
|
|
|
$
|
23,765
|
|
|
$
|
16,155
|
|
|
$
|
30,101
|
|
(1)
|
Excludes market value adjustments, which reduce recorded borrowings by
$304 million
. Includes interest payments based on contractual terms for fixed rate debt and on current interest rates for variable rate debt. In 2023, the Company has the ability to call a debt instrument prior to its scheduled maturity, which if exercised by the Company would reduce future interest payments by $1.0 billion.
|
(2)
|
Other commitments primarily comprise contracts 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.
|
(3)
|
Contractual commitments include the following:
|
Liabilities recorded on the balance sheet
|
$
|
21,991
|
|
Commitments not recorded on the balance sheet
|
62,280
|
|
|
|
$
|
84,271
|
|
|
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
|
$
|
50,869
|
|
|
$
|
46,843
|
|
|
$
|
47,130
|
|
Products
|
8,565
|
|
|
8,294
|
|
|
8,502
|
|
|||
Total revenues
|
59,434
|
|
|
55,137
|
|
|
55,632
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization)
|
(27,528
|
)
|
|
(25,320
|
)
|
|
(24,653
|
)
|
|||
Cost of products (exclusive of depreciation and amortization)
|
(5,198
|
)
|
|
(4,986
|
)
|
|
(5,340
|
)
|
|||
Selling, general, administrative and other
|
(8,860
|
)
|
|
(8,176
|
)
|
|
(8,754
|
)
|
|||
Depreciation and amortization
|
(3,011
|
)
|
|
(2,782
|
)
|
|
(2,527
|
)
|
|||
Total costs and expenses
|
(44,597
|
)
|
|
(41,264
|
)
|
|
(41,274
|
)
|
|||
Restructuring and impairment charges
|
(33
|
)
|
|
(98
|
)
|
|
(156
|
)
|
|||
Other income, net
|
601
|
|
|
78
|
|
|
—
|
|
|||
Interest expense, net
|
(574
|
)
|
|
(385
|
)
|
|
(260
|
)
|
|||
Equity in the income (loss) of investees, net
|
(102
|
)
|
|
320
|
|
|
926
|
|
|||
Income before income taxes
|
14,729
|
|
|
13,788
|
|
|
14,868
|
|
|||
Income taxes
|
(1,663
|
)
|
|
(4,422
|
)
|
|
(5,078
|
)
|
|||
Net income
|
13,066
|
|
|
9,366
|
|
|
9,790
|
|
|||
Less: Net income attributable to noncontrolling interests
|
(468
|
)
|
|
(386
|
)
|
|
(399
|
)
|
|||
Net income attributable to The Walt Disney Company (Disney)
|
$
|
12,598
|
|
|
$
|
8,980
|
|
|
$
|
9,391
|
|
|
|
|
|
|
|
||||||
Earnings per share attributable to Disney:
|
|
|
|
|
|
||||||
Diluted
|
$
|
8.36
|
|
|
$
|
5.69
|
|
|
$
|
5.73
|
|
Basic
|
$
|
8.40
|
|
|
$
|
5.73
|
|
|
$
|
5.76
|
|
|
|
|
|
|
|
||||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
|
|
||||||
Diluted
|
1,507
|
|
|
1,578
|
|
|
1,639
|
|
|||
Basic
|
1,499
|
|
|
1,568
|
|
|
1,629
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share
|
$
|
1.68
|
|
|
$
|
1.56
|
|
|
$
|
1.42
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income
|
$
|
13,066
|
|
|
$
|
9,366
|
|
|
$
|
9,790
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Market value adjustments for investments
|
7
|
|
|
(18
|
)
|
|
13
|
|
|||
Market value adjustments for hedges
|
207
|
|
|
(37
|
)
|
|
(359
|
)
|
|||
Pension and postretirement medical plan adjustments
|
434
|
|
|
584
|
|
|
(1,154
|
)
|
|||
Foreign currency translation and other
|
(289
|
)
|
|
(103
|
)
|
|
(156
|
)
|
|||
Other comprehensive income/(loss)
|
359
|
|
|
426
|
|
|
(1,656
|
)
|
|||
Comprehensive income
|
13,425
|
|
|
9,792
|
|
|
8,134
|
|
|||
Net income attributable to noncontrolling interests,
including redeemable noncontrolling interests
|
(468
|
)
|
|
(386
|
)
|
|
(399
|
)
|
|||
Other comprehensive loss attributable to noncontrolling interests
|
72
|
|
|
25
|
|
|
98
|
|
|||
Comprehensive income attributable to Disney
|
$
|
13,029
|
|
|
$
|
9,431
|
|
|
$
|
7,833
|
|
|
September 29, 2018
|
|
September 30, 2017
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,150
|
|
|
$
|
4,017
|
|
Receivables
|
9,334
|
|
|
8,633
|
|
||
Inventories
|
1,392
|
|
|
1,373
|
|
||
Television costs and advances
|
1,314
|
|
|
1,278
|
|
||
Other current assets
|
635
|
|
|
588
|
|
||
Total current assets
|
16,825
|
|
|
15,889
|
|
||
Film and television costs
|
7,888
|
|
|
7,481
|
|
||
Investments
|
2,899
|
|
|
3,202
|
|
||
Parks, resorts and other property
|
|
|
|
||||
Attractions, buildings and equipment
|
55,238
|
|
|
54,043
|
|
||
Accumulated depreciation
|
(30,764
|
)
|
|
(29,037
|
)
|
||
|
24,474
|
|
|
25,006
|
|
||
Projects in progress
|
3,942
|
|
|
2,145
|
|
||
Land
|
1,124
|
|
|
1,255
|
|
||
|
29,540
|
|
|
28,406
|
|
||
Intangible assets, net
|
6,812
|
|
|
6,995
|
|
||
Goodwill
|
31,269
|
|
|
31,426
|
|
||
Other assets
|
3,365
|
|
|
2,390
|
|
||
Total assets
|
$
|
98,598
|
|
|
$
|
95,789
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
$
|
9,479
|
|
|
$
|
8,855
|
|
Current portion of borrowings
|
3,790
|
|
|
6,172
|
|
||
Deferred revenue and other
|
4,591
|
|
|
4,568
|
|
||
Total current liabilities
|
17,860
|
|
|
19,595
|
|
||
Borrowings
|
17,084
|
|
|
19,119
|
|
||
Deferred income taxes
|
3,109
|
|
|
4,480
|
|
||
Other long-term liabilities
|
6,590
|
|
|
6,443
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
1,123
|
|
|
1,148
|
|
||
Equity
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, Authorized – 4.6 billion shares,
Issued – 2.9 billion shares |
36,779
|
|
|
36,248
|
|
||
Retained earnings
|
82,679
|
|
|
72,606
|
|
||
Accumulated other comprehensive loss
|
(3,097
|
)
|
|
(3,528
|
)
|
||
|
116,361
|
|
|
105,326
|
|
||
Treasury stock, at cost, 1.4 billion shares
|
(67,588
|
)
|
|
(64,011
|
)
|
||
Total Disney Shareholders’ equity
|
48,773
|
|
|
41,315
|
|
||
Noncontrolling interests
|
4,059
|
|
|
3,689
|
|
||
Total equity
|
52,832
|
|
|
45,004
|
|
||
Total liabilities and equity
|
$
|
98,598
|
|
|
$
|
95,789
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Net income
|
$
|
13,066
|
|
|
$
|
9,366
|
|
|
$
|
9,790
|
|
Depreciation and amortization
|
3,011
|
|
|
2,782
|
|
|
2,527
|
|
|||
Gains on acquisitions and dispositions
|
(560
|
)
|
|
(289
|
)
|
|
(26
|
)
|
|||
Deferred income taxes
|
(1,573
|
)
|
|
334
|
|
|
1,214
|
|
|||
Equity in the (income) loss of investees
|
102
|
|
|
(320
|
)
|
|
(926
|
)
|
|||
Cash distributions received from equity investees
|
775
|
|
|
788
|
|
|
799
|
|
|||
Net change in film and television costs and advances
|
(523
|
)
|
|
(1,075
|
)
|
|
(101
|
)
|
|||
Equity-based compensation
|
393
|
|
|
364
|
|
|
393
|
|
|||
Other
|
441
|
|
|
503
|
|
|
674
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(720
|
)
|
|
107
|
|
|
(393
|
)
|
|||
Inventories
|
(17
|
)
|
|
(5
|
)
|
|
186
|
|
|||
Other assets
|
(927
|
)
|
|
(52
|
)
|
|
(443
|
)
|
|||
Accounts payable and other accrued liabilities
|
235
|
|
|
(368
|
)
|
|
40
|
|
|||
Income taxes
|
592
|
|
|
208
|
|
|
(598
|
)
|
|||
Cash provided by operations
|
14,295
|
|
|
12,343
|
|
|
13,136
|
|
|||
|
|
|
|
|
|
||||||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Investments in parks, resorts and other property
|
(4,465
|
)
|
|
(3,623
|
)
|
|
(4,773
|
)
|
|||
Acquisitions
|
(1,581
|
)
|
|
(417
|
)
|
|
(850
|
)
|
|||
Other
|
710
|
|
|
(71
|
)
|
|
(135
|
)
|
|||
Cash used in investing activities
|
(5,336
|
)
|
|
(4,111
|
)
|
|
(5,758
|
)
|
|||
|
|
|
|
|
|
||||||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Commercial paper borrowings/(payments), net
|
(1,768
|
)
|
|
1,247
|
|
|
(920
|
)
|
|||
Borrowings
|
1,056
|
|
|
4,820
|
|
|
6,065
|
|
|||
Reduction of borrowings
|
(1,871
|
)
|
|
(2,364
|
)
|
|
(2,205
|
)
|
|||
Dividends
|
(2,515
|
)
|
|
(2,445
|
)
|
|
(2,313
|
)
|
|||
Repurchases of common stock
|
(3,577
|
)
|
|
(9,368
|
)
|
|
(7,499
|
)
|
|||
Proceeds from exercise of stock options
|
210
|
|
|
276
|
|
|
259
|
|
|||
Contributions from noncontrolling interest holders
|
399
|
|
|
17
|
|
|
—
|
|
|||
Other
|
(777
|
)
|
|
(1,142
|
)
|
|
(607
|
)
|
|||
Cash used in financing activities
|
(8,843
|
)
|
|
(8,959
|
)
|
|
(7,220
|
)
|
|||
|
|
|
|
|
|
||||||
Impact of exchange rates on cash, cash equivalents and restricted cash
|
(25
|
)
|
|
31
|
|
|
(123
|
)
|
|||
|
|
|
|
|
|
||||||
Change in cash, cash equivalents and restricted cash
|
91
|
|
|
(696
|
)
|
|
35
|
|
|||
Cash, cash equivalents and restricted cash, beginning of year
|
4,064
|
|
|
4,760
|
|
|
4,725
|
|
|||
Cash, cash equivalents and restricted cash, end of year
|
$
|
4,155
|
|
|
$
|
4,064
|
|
|
$
|
4,760
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
631
|
|
|
$
|
466
|
|
|
$
|
395
|
|
Income taxes paid
|
$
|
2,503
|
|
|
$
|
3,801
|
|
|
$
|
4,133
|
|
|
|
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
|
|
1,661
|
|
|
$
|
35,122
|
|
|
$
|
59,028
|
|
|
$
|
(2,421
|
)
|
|
$
|
(47,204
|
)
|
|
$
|
44,525
|
|
|
$
|
4,130
|
|
|
$
|
48,655
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
9,391
|
|
|
(1,558
|
)
|
|
—
|
|
|
7,833
|
|
|
301
|
|
|
8,134
|
|
|||||||
Equity compensation activity
|
|
10
|
|
|
726
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
—
|
|
|
726
|
|
|||||||
Common stock repurchases
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,499
|
)
|
|
(7,499
|
)
|
|
—
|
|
|
(7,499
|
)
|
|||||||
Dividends
|
|
—
|
|
|
15
|
|
|
(2,328
|
)
|
|
—
|
|
|
—
|
|
|
(2,313
|
)
|
|
—
|
|
|
(2,313
|
)
|
|||||||
Distributions and other
|
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(373
|
)
|
|
(380
|
)
|
|||||||
Balance at October 1, 2016
|
|
1,597
|
|
|
$
|
35,859
|
|
|
$
|
66,088
|
|
|
$
|
(3,979
|
)
|
|
$
|
(54,703
|
)
|
|
$
|
43,265
|
|
|
$
|
4,058
|
|
|
$
|
47,323
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
8,980
|
|
|
451
|
|
|
—
|
|
|
9,431
|
|
|
361
|
|
|
9,792
|
|
|||||||
Equity compensation activity
|
|
8
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
|
—
|
|
|
529
|
|
|||||||
Common stock repurchases
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,368
|
)
|
|
(9,368
|
)
|
|
—
|
|
|
(9,368
|
)
|
|||||||
Dividends
|
|
—
|
|
|
13
|
|
|
(2,458
|
)
|
|
—
|
|
|
—
|
|
|
(2,445
|
)
|
|
—
|
|
|
(2,445
|
)
|
|||||||
Contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|||||||
Distributions and other
|
|
1
|
|
|
(153
|
)
|
|
(4
|
)
|
|
—
|
|
|
60
|
|
|
(97
|
)
|
|
(747
|
)
|
|
(844
|
)
|
|||||||
Balance at September 30, 2017
|
|
1,517
|
|
|
$
|
36,248
|
|
|
$
|
72,606
|
|
|
$
|
(3,528
|
)
|
|
$
|
(64,011
|
)
|
|
$
|
41,315
|
|
|
$
|
3,689
|
|
|
$
|
45,004
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
12,598
|
|
|
431
|
|
|
—
|
|
|
13,029
|
|
|
425
|
|
|
13,454
|
|
|||||||
Equity compensation activity
|
|
6
|
|
|
518
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
518
|
|
|
—
|
|
|
518
|
|
|||||||
Common stock repurchases
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,577
|
)
|
|
(3,577
|
)
|
|
—
|
|
|
(3,577
|
)
|
|||||||
Dividends
|
|
—
|
|
|
14
|
|
|
(2,529
|
)
|
|
—
|
|
|
—
|
|
|
(2,515
|
)
|
|
—
|
|
|
(2,515
|
)
|
|||||||
Contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
488
|
|
|
488
|
|
|||||||
Distributions and other
|
|
—
|
|
|
(1
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(543
|
)
|
|
(540
|
)
|
|||||||
Balance at September 29, 2018
|
|
1,488
|
|
|
$
|
36,779
|
|
|
$
|
82,679
|
|
|
$
|
(3,097
|
)
|
|
$
|
(67,588
|
)
|
|
$
|
48,773
|
|
|
$
|
4,059
|
|
|
$
|
52,832
|
|
1
|
Description of the Business and Segment Information
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
||||||
Media Networks
|
$
|
21,922
|
|
|
$
|
21,299
|
|
|
$
|
21,326
|
|
Parks, Experiences & Consumer Products
|
|
|
|
|
|
||||||
Third parties
|
25,257
|
|
|
23,516
|
|
|
22,998
|
|
|||
Intersegment
|
(556
|
)
|
|
(492
|
)
|
|
(740
|
)
|
|||
|
24,701
|
|
|
23,024
|
|
|
22,258
|
|
|||
Studio Entertainment
|
|
|
|
|
|
||||||
Third parties
|
9,509
|
|
|
7,860
|
|
|
8,629
|
|
|||
Intersegment
|
556
|
|
|
492
|
|
|
740
|
|
|||
|
10,065
|
|
|
8,352
|
|
|
9,369
|
|
|||
Direct-to-Consumer & International
|
3,414
|
|
|
3,075
|
|
|
3,306
|
|
|||
Eliminations
(1)
|
(668
|
)
|
|
(613
|
)
|
|
(627
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||
Total consolidated revenues
|
$
|
59,434
|
|
|
$
|
55,137
|
|
|
$
|
55,632
|
|
Segment operating income
|
|
|
|
|
|
||||||
Media Networks
|
$
|
7,338
|
|
|
$
|
7,196
|
|
|
$
|
7,804
|
|
Parks, Experiences & Consumer Products
|
6,095
|
|
|
5,487
|
|
|
5,198
|
|
|||
Studio Entertainment
|
3,004
|
|
|
2,363
|
|
|
2,767
|
|
|||
Direct-to-Consumer & International
|
(738
|
)
|
|
(284
|
)
|
|
(38
|
)
|
|||
Eliminations
(1)
|
(10
|
)
|
|
13
|
|
|
(10
|
)
|
|||
Total segment operating income
(2)
|
$
|
15,689
|
|
|
$
|
14,775
|
|
|
$
|
15,721
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Reconciliation of segment operating income to income before income taxes
|
|
|
|
|
|
||||||
Segment operating income
|
$
|
15,689
|
|
|
$
|
14,775
|
|
|
$
|
15,721
|
|
Corporate and unallocated shared expenses
|
(744
|
)
|
|
(582
|
)
|
|
(640
|
)
|
|||
Restructuring and impairment charges
|
(33
|
)
|
|
(98
|
)
|
|
(156
|
)
|
|||
Other income, net
|
601
|
|
|
78
|
|
|
—
|
|
|||
Interest expense, net
|
(574
|
)
|
|
(385
|
)
|
|
(260
|
)
|
|||
Vice Gain
(2)
|
—
|
|
|
—
|
|
|
332
|
|
|||
Infinity Charge
(3)
|
—
|
|
|
—
|
|
|
(129
|
)
|
|||
Impairment of equity investments
(2)
|
(210
|
)
|
|
—
|
|
|
—
|
|
|||
Income before income taxes
|
$
|
14,729
|
|
|
$
|
13,788
|
|
|
$
|
14,868
|
|
Capital expenditures
|
|
|
|
|
|
||||||
Media Networks
|
|
|
|
|
|
||||||
Cable Networks
|
$
|
96
|
|
|
$
|
64
|
|
|
$
|
81
|
|
Broadcasting
|
107
|
|
|
67
|
|
|
73
|
|
|||
Parks, Experiences & Consumer Products
|
|
|
|
|
|
||||||
Domestic
|
3,223
|
|
|
2,392
|
|
|
2,215
|
|
|||
International
|
677
|
|
|
827
|
|
|
2,053
|
|
|||
Studio Entertainment
|
96
|
|
|
85
|
|
|
86
|
|
|||
Direct-to-Consumer & International
|
107
|
|
|
30
|
|
|
65
|
|
|||
Corporate
|
159
|
|
|
158
|
|
|
200
|
|
|||
Total capital expenditures
|
$
|
4,465
|
|
|
$
|
3,623
|
|
|
$
|
4,773
|
|
Depreciation expense
|
|
|
|
|
|
||||||
Media Networks
|
$
|
199
|
|
|
$
|
206
|
|
|
$
|
217
|
|
Parks, Experiences & Consumer Products
|
|
|
|
|
|
||||||
Domestic
|
1,449
|
|
|
1,371
|
|
|
1,314
|
|
|||
International
|
768
|
|
|
679
|
|
|
468
|
|
|||
Studio Entertainment
|
55
|
|
|
50
|
|
|
46
|
|
|||
Direct-to-Consumer & International
|
106
|
|
|
74
|
|
|
61
|
|
|||
Corporate
|
181
|
|
|
206
|
|
|
214
|
|
|||
Total depreciation expense
|
$
|
2,758
|
|
|
$
|
2,586
|
|
|
$
|
2,320
|
|
Amortization of intangible assets
|
|
|
|
|
|
||||||
Media Networks
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Parks, Experiences & Consumer Products
|
110
|
|
|
111
|
|
|
107
|
|
|||
Studio Entertainment
|
64
|
|
|
65
|
|
|
74
|
|
|||
Direct-to-Consumer & International
|
79
|
|
|
20
|
|
|
24
|
|
|||
Total amortization of intangible assets
|
$
|
253
|
|
|
$
|
196
|
|
|
$
|
207
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Identifiable assets
(4)
|
|
|
|
|
|
||||||
Media Networks
|
$
|
14,216
|
|
|
$
|
13,660
|
|
|
|
||
Parks, Experiences & Consumer Products
|
34,684
|
|
|
33,755
|
|
|
|
||||
Studio Entertainment
|
10,197
|
|
|
9,672
|
|
|
|
||||
Direct-to-Consumer & International
|
3,558
|
|
|
4,083
|
|
|
|
||||
Corporate
(5)
|
4,977
|
|
|
3,475
|
|
|
|
||||
Eliminations
|
(303
|
)
|
|
(282
|
)
|
|
|
||||
Goodwill
(6)
|
31,269
|
|
|
31,426
|
|
|
|
||||
Total consolidated assets
|
$
|
98,598
|
|
|
$
|
95,789
|
|
|
|
||
Supplemental revenue data
|
|
|
|
|
|
||||||
Affiliate fees
|
$
|
13,279
|
|
|
$
|
12,659
|
|
|
$
|
12,259
|
|
Advertising
|
7,904
|
|
|
8,237
|
|
|
8,649
|
|
|||
Retail merchandise, food and beverage
|
6,923
|
|
|
6,433
|
|
|
6,116
|
|
|||
Theme park admissions
|
7,183
|
|
|
6,502
|
|
|
5,900
|
|
|||
Revenues
|
|
|
|
|
|
||||||
United States and Canada
|
$
|
45,038
|
|
|
$
|
41,881
|
|
|
$
|
42,616
|
|
Europe
|
7,026
|
|
|
6,541
|
|
|
6,714
|
|
|||
Asia Pacific
|
5,531
|
|
|
5,075
|
|
|
4,582
|
|
|||
Latin America and Other
|
1,839
|
|
|
1,640
|
|
|
1,720
|
|
|||
|
$
|
59,434
|
|
|
$
|
55,137
|
|
|
$
|
55,632
|
|
Segment operating income
|
|
|
|
|
|
||||||
United States and Canada
|
$
|
11,396
|
|
|
$
|
10,962
|
|
|
$
|
12,139
|
|
Europe
|
1,922
|
|
|
1,812
|
|
|
1,815
|
|
|||
Asia Pacific
|
1,869
|
|
|
1,626
|
|
|
1,324
|
|
|||
Latin America and Other
|
502
|
|
|
375
|
|
|
443
|
|
|||
|
$
|
15,689
|
|
|
$
|
14,775
|
|
|
$
|
15,721
|
|
Long-lived assets
(7)
|
|
|
|
|
|
||||
United States and Canada
|
$
|
65,245
|
|
|
$
|
61,215
|
|
|
|
Europe
|
6,275
|
|
|
8,208
|
|
|
|
||
Asia Pacific
|
7,775
|
|
|
8,196
|
|
|
|
||
Latin America and Other
|
131
|
|
|
155
|
|
|
|
||
|
$
|
79,426
|
|
|
$
|
77,774
|
|
|
|
(1)
|
Intersegment content transaction are as follows:
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
||||||
Studio Entertainment:
|
|
|
|
|
|
||||||
Content transactions with Media Networks
|
$
|
(169
|
)
|
|
$
|
(137
|
)
|
|
$
|
(159
|
)
|
Content transactions with Direct-to-Consumer & International
|
(28
|
)
|
|
(22
|
)
|
|
(11
|
)
|
|||
Media Networks:
|
|
|
|
|
|
||||||
Content transactions with Direct-to-Consumer & International
|
(471
|
)
|
|
(454
|
)
|
|
(457
|
)
|
|||
Total
|
$
|
(668
|
)
|
|
$
|
(613
|
)
|
|
$
|
(627
|
)
|
|
|
|
|
|
|
||||||
Operating Income
|
|
|
|
|
|
||||||
Studio Entertainment:
|
|
|
|
|
|
||||||
Content transactions with Media Networks
|
$
|
(8
|
)
|
|
$
|
15
|
|
|
$
|
(10
|
)
|
Media Networks:
|
|
|
|
|
|
||||||
Content transactions with Direct-to-Consumer & International
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|||
Total
|
$
|
(10
|
)
|
|
$
|
13
|
|
|
$
|
(10
|
)
|
(2)
|
Equity in the income of investees included in segment operating income is as follows:
|
|
2018
|
|
2017
|
|
2016
|
||||||
Media Networks
|
$
|
711
|
|
|
$
|
766
|
|
|
$
|
779
|
|
Parks, Experiences and Consumer Products
|
(23
|
)
|
|
(25
|
)
|
|
(3
|
)
|
|||
Direct-to-Consumer & International
|
(580
|
)
|
|
(421
|
)
|
|
(182
|
)
|
|||
Equity in the income of investees included in segment operating income
|
108
|
|
|
320
|
|
|
594
|
|
|||
Impairment of equity investments:
|
|
|
|
|
|
||||||
Vice
|
(157
|
)
|
|
—
|
|
|
—
|
|
|||
Villages Nature
|
(53
|
)
|
|
—
|
|
|
—
|
|
|||
Vice Gain
|
—
|
|
|
—
|
|
|
332
|
|
|||
Equity in the income (loss) of investees, net
|
$
|
(102
|
)
|
|
$
|
320
|
|
|
$
|
926
|
|
(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
|
$
|
2,430
|
|
|
$
|
2,505
|
|
Parks, Experiences & Consumer Products
|
1
|
|
|
70
|
|
||
Studio Entertainment
|
1
|
|
|
1
|
|
||
Direct-to-Consumer & International
|
320
|
|
|
493
|
|
||
Corporate
|
16
|
|
|
18
|
|
||
|
$
|
2,768
|
|
|
$
|
3,087
|
|
|
2018
|
|
2017
|
||||
Media Networks
|
$
|
1,546
|
|
|
$
|
1,547
|
|
Parks, Experiences & Consumer Products
|
3,167
|
|
|
3,277
|
|
||
Studio Entertainment
|
1,479
|
|
|
1,543
|
|
||
Direct-to-Consumer & International
|
490
|
|
|
498
|
|
||
Corporate
|
130
|
|
|
130
|
|
||
|
$
|
6,812
|
|
|
$
|
6,995
|
|
(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
|
|
$
|
4,150
|
|
|
$
|
4,017
|
|
|
$
|
4,610
|
|
Restricted cash included in:
|
|
|
|
|
|
|
||||||
Other current assets
|
|
1
|
|
|
26
|
|
|
96
|
|
|||
Other assets
|
|
4
|
|
|
21
|
|
|
54
|
|
|||
Total cash, cash equivalents and restricted cash in the statement of cash flows
|
|
$
|
4,155
|
|
|
$
|
4,064
|
|
|
$
|
4,760
|
|
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
|
$
|
258
|
|
2020
|
233
|
|
|
2021
|
230
|
|
|
2022
|
228
|
|
|
2023
|
202
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Weighted average number of common and common equivalent shares outstanding (basic)
|
1,499
|
|
|
1,568
|
|
|
1,629
|
|
Weighted average dilutive impact of Awards
|
8
|
|
|
10
|
|
|
10
|
|
Weighted average number of common and common equivalent shares outstanding (diluted)
|
1,507
|
|
|
1,578
|
|
|
1,639
|
|
Awards excluded from diluted earnings per share
|
12
|
|
|
10
|
|
|
6
|
|
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
|
$
|
16,345
|
|
|
$
|
291
|
|
|
$
|
6,830
|
|
|
$
|
4,344
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,810
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,600
|
|
|
3,600
|
|
||||||||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other, net
|
(20
|
)
|
|
—
|
|
|
(13
|
)
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||||
Balance at Sept. 30, 2017
|
$
|
16,325
|
|
|
$
|
291
|
|
|
$
|
6,817
|
|
|
$
|
4,393
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,600
|
|
|
$
|
31,426
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other, net
(1)
|
3,063
|
|
|
—
|
|
|
347
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
(3,600
|
)
|
|
(157
|
)
|
||||||||
Balance at Sept. 29, 2018
|
$
|
19,388
|
|
|
$
|
291
|
|
|
$
|
7,164
|
|
|
$
|
4,426
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,269
|
|
Segment recast
(2)
|
(3,399
|
)
|
|
(291
|
)
|
|
(70
|
)
|
|
(4,426
|
)
|
|
4,487
|
|
|
3,699
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at Sept. 30, 2018
|
$
|
15,989
|
|
|
$
|
—
|
|
|
$
|
7,094
|
|
|
$
|
—
|
|
|
$
|
4,487
|
|
|
$
|
3,699
|
|
|
$
|
—
|
|
|
$
|
31,269
|
|
(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
|
$
|
560
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Settlement of litigation
|
38
|
|
|
(177
|
)
|
|
—
|
|
|||
Gain related to the acquisition of BAMTech
|
3
|
|
|
255
|
|
|
—
|
|
|||
Other income, net
|
$
|
601
|
|
|
$
|
78
|
|
|
$
|
—
|
|
5
|
Investments
|
|
September 29,
2018 |
|
September 30,
2017 |
||||
Investments, equity basis
|
$
|
2,768
|
|
|
$
|
3,087
|
|
Investments, other
|
131
|
|
|
115
|
|
||
|
$
|
2,899
|
|
|
$
|
3,202
|
|
Results of Operations:
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|||||||
Revenues
|
$
|
9,085
|
|
|
$
|
8,122
|
|
|
$
|
7,416
|
|
Net income
|
(152
|
)
|
|
857
|
|
|
1,855
|
|
Balance Sheet
|
September 29,
2018 |
|
September 30,
2017 |
|
October 1,
2016 |
||||||
|
|
|
|
|
|||||||
Current assets
|
$
|
4,542
|
|
|
$
|
4,623
|
|
|
$
|
4,801
|
|
Non-current assets
|
9,998
|
|
|
10,047
|
|
|
8,906
|
|
|||
|
$
|
14,540
|
|
|
$
|
14,670
|
|
|
$
|
13,707
|
|
Current liabilities
|
$
|
3,197
|
|
|
$
|
2,852
|
|
|
$
|
2,018
|
|
Non-current liabilities
|
4,840
|
|
|
5,056
|
|
|
4,531
|
|
|||
Redeemable preferred stock
|
1,362
|
|
|
1,123
|
|
|
583
|
|
|||
Shareholders’ equity
|
5,141
|
|
|
5,639
|
|
|
6,575
|
|
|||
|
$
|
14,540
|
|
|
$
|
14,670
|
|
|
$
|
13,707
|
|
6
|
International Theme Parks
|
|
2018
|
|
2017
|
||||
Cash and cash equivalents
|
$
|
834
|
|
|
$
|
843
|
|
Other current assets
|
400
|
|
|
376
|
|
||
Total current assets
|
1,234
|
|
|
1,219
|
|
||
Parks, resorts and other property
|
8,973
|
|
|
9,403
|
|
||
Other assets
|
103
|
|
|
111
|
|
||
Total assets
(1)
|
$
|
10,310
|
|
|
$
|
10,733
|
|
|
|
|
|
||||
Current liabilities
|
$
|
921
|
|
|
$
|
1,163
|
|
Borrowings - long-term
|
1,106
|
|
|
1,145
|
|
||
Other long-term liabilities
|
382
|
|
|
371
|
|
||
Total liabilities
(1)
|
$
|
2,409
|
|
|
$
|
2,679
|
|
(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
.
|
Revenues
|
$
|
3,834
|
|
Costs and expenses
|
(3,649
|
)
|
|
Equity in the loss of investees
|
(76
|
)
|
7
|
Film and Television Costs and Advances
|
|
September 29, 2018
|
|
September 30, 2017
|
||||
Theatrical film costs
|
|
|
|
||||
Released, less amortization
|
$
|
1,911
|
|
|
$
|
1,658
|
|
Completed, not released
|
397
|
|
|
—
|
|
||
In-process
|
2,974
|
|
|
3,200
|
|
||
In development or pre-production
|
173
|
|
|
306
|
|
||
|
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
|
|
||
|
2,185
|
|
|
2,041
|
|
||
Television programming rights and advances
|
1,562
|
|
|
1,554
|
|
||
|
9,202
|
|
|
8,759
|
|
||
Less current portion
|
1,314
|
|
|
1,278
|
|
||
Non-current portion
|
$
|
7,888
|
|
|
$
|
7,481
|
|
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
|
|
$
|
1,005
|
|
|
$
|
2,772
|
|
|
—
|
|
|
$
|
—
|
|
|
2.24
|
%
|
|
|
U.S. and European medium-term notes
(4)
|
|
17,942
|
|
|
19,721
|
|
|
2.91
|
%
|
|
6,600
|
|
|
3.27
|
%
|
|
2019-2027
|
|||
Foreign currency denominated debt
|
|
955
|
|
|
13
|
|
|
2.76
|
%
|
|
955
|
|
|
2.92
|
%
|
|
2025
|
|||
Capital Cities/ABC debt
|
|
103
|
|
|
105
|
|
|
8.75
|
%
|
|
—
|
|
|
5.99
|
%
|
|
|
|||
BAMTech acquisition payable
|
|
—
|
|
|
1,581
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
|
|||
Other
(5)
|
|
(276
|
)
|
|
(46
|
)
|
|
|
|
—
|
|
|
|
|
|
|||||
|
|
19,729
|
|
|
24,146
|
|
|
2.79
|
%
|
|
7,555
|
|
|
3.22
|
%
|
|
|
|||
Asia Theme Parks borrowings
|
|
1,145
|
|
|
1,145
|
|
|
1.33
|
%
|
|
—
|
|
|
5.17
|
%
|
|
|
|||
Total borrowings
|
|
20,874
|
|
|
25,291
|
|
|
2.71
|
%
|
|
7,555
|
|
|
3.32
|
%
|
|
|
|||
Less current portion
|
|
3,790
|
|
|
6,172
|
|
|
1.85
|
%
|
|
1,600
|
|
|
2.94
|
%
|
|
|
|||
Total long-term borrowings
|
|
$
|
17,084
|
|
|
$
|
19,119
|
|
|
|
|
$
|
5,955
|
|
|
|
|
|
(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
$121 million
and
$138 million
at
September 29, 2018
and
September 30, 2017
, respectively.
|
(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.
|
|
Committed
Capacity
|
|
Capacity
Used
|
|
Unused
Capacity
|
||||||
Facility expiring March 2019
|
$
|
6,000
|
|
|
$
|
—
|
|
|
$
|
6,000
|
|
Facility expiring March 2021
|
2,250
|
|
|
—
|
|
|
2,250
|
|
|||
Facility expiring March 2023
|
4,000
|
|
|
—
|
|
|
4,000
|
|
|||
Total
|
$
|
12,250
|
|
|
$
|
—
|
|
|
$
|
12,250
|
|
|
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
|
$
|
777
|
|
|
$
|
744
|
|
|
$
|
1,521
|
|
Additions
|
372
|
|
|
6,364
|
|
|
6,736
|
|
|||
Payments
|
—
|
|
|
(5,489
|
)
|
|
(5,489
|
)
|
|||
Other Activity
|
2
|
|
|
2
|
|
|
4
|
|
|||
Balance at Sept. 30, 2017
|
$
|
1,151
|
|
|
$
|
1,621
|
|
|
$
|
2,772
|
|
Additions
|
—
|
|
|
8,079
|
|
|
8,079
|
|
|||
Payments
|
(1,099
|
)
|
|
(8,748
|
)
|
|
(9,847
|
)
|
|||
Other Activity
|
(2
|
)
|
|
3
|
|
|
1
|
|
|||
Balance at Sept. 29, 2018
|
$
|
50
|
|
|
$
|
955
|
|
|
$
|
1,005
|
|
|
Before
Asia
Theme Parks
Consolidation
|
|
Asia
Theme Parks
|
|
Total
|
||||||
2019
|
$
|
3,763
|
|
|
$
|
39
|
|
|
$
|
3,802
|
|
2020
|
3,000
|
|
|
—
|
|
|
3,000
|
|
|||
2021
|
2,106
|
|
|
—
|
|
|
2,106
|
|
|||
2022
|
1,900
|
|
|
10
|
|
|
1,910
|
|
|||
2023
|
1,000
|
|
|
36
|
|
|
1,036
|
|
|||
Thereafter
|
8,385
|
|
|
1,060
|
|
|
9,445
|
|
|||
|
$
|
20,154
|
|
|
$
|
1,145
|
|
|
$
|
21,299
|
|
9
|
Income Taxes
|
•
|
Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from
35.0%
to
21.0%
. Because of our fiscal year end, the Company’s fiscal 2018 statutory federal tax rate is
24.5%
, which is applicable to each quarter of the fiscal year, and will be
21.0%
thereafter.
|
•
|
The Company remeasured its U.S. federal deferred tax assets and liabilities at the rate that the Company expects to be in effect when those deferred taxes will be realized (either
24.5%
for 2018 or
21.0%
thereafter). The Company recognized a benefit of approximately
$2.1 billion
in fiscal 2018 from the deferred tax remeasurement (Deferred Remeasurement).
|
•
|
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
15.5%
on the portion of the earnings held in cash and cash equivalents and
8%
on the remainder. The Company recognized a charge for the Deemed Repatriation Tax of approximately
$0.4 billion
in fiscal 2018. Generally there will no longer be a U.S. federal income tax cost arising from the repatriation of foreign earnings.
|
•
|
The Company will generally be eligible to claim an immediate deduction for investments in qualified fixed assets acquired and film and television productions 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
13%
(which increases to approximately
16%
in 2025) rather than the general statutory rate of
21%
. This will be effective for the Company in fiscal 2019.
|
◦
|
Certain foreign earnings will be taxed at a minimum effective rate of approximately
13%
, which increases to approximately
16%
in 2025. This will be effective for the Company in fiscal 2019.
|
Income Before Income Taxes
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|||||||
Domestic (including U.S. exports)
|
$
|
12,914
|
|
|
$
|
12,611
|
|
|
$
|
14,018
|
|
Foreign subsidiaries
|
1,815
|
|
|
1,177
|
|
|
850
|
|
|||
|
$
|
14,729
|
|
|
$
|
13,788
|
|
|
$
|
14,868
|
|
Income Tax Expense/(Benefit)
|
|
|
|
|
|
||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
2,240
|
|
|
$
|
3,229
|
|
|
$
|
3,146
|
|
State
|
362
|
|
|
360
|
|
|
154
|
|
|||
Foreign
(1)
|
642
|
|
|
489
|
|
|
533
|
|
|||
|
3,244
|
|
|
4,078
|
|
|
3,833
|
|
|||
Deferred
|
|
|
|
|
|
||||||
Federal
(2)
|
(1,577
|
)
|
|
370
|
|
|
1,172
|
|
|||
State
|
(20
|
)
|
|
5
|
|
|
100
|
|
|||
Foreign
|
16
|
|
|
(31
|
)
|
|
(27
|
)
|
|||
|
(1,581
|
)
|
|
344
|
|
|
1,245
|
|
|||
|
$
|
1,663
|
|
|
$
|
4,422
|
|
|
$
|
5,078
|
|
Components of Deferred Tax Assets and Liabilities
|
September 29, 2018
|
|
September 30, 2017
|
||||
|
|
|
|||||
Deferred tax assets
|
|
|
|
||||
Net operating losses and tax credit carryforwards
|
$
|
(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
|
|
||
Total deferred tax liabilities
|
4,571
|
|
|
7,108
|
|
||
Net deferred tax liability before valuation allowance
|
1,592
|
|
|
2,595
|
|
||
Valuation allowance
|
1,383
|
|
|
1,716
|
|
||
Net deferred tax liability
|
$
|
2,975
|
|
|
$
|
4,311
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Federal income tax rate
|
24.5
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of federal benefit
|
1.9
|
|
|
1.7
|
|
|
1.8
|
|
Domestic production activity deduction
|
(1.4
|
)
|
|
(2.1
|
)
|
|
(1.6
|
)
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(1.1
|
)
|
|
(1.6
|
)
|
|
(1.1
|
)
|
Tax Act
(1)
|
(11.5
|
)
|
|
—
|
|
|
—
|
|
Other, including tax reserves and related interest
|
(1.1
|
)
|
|
(0.9
|
)
|
|
0.1
|
|
|
11.3
|
%
|
|
32.1
|
%
|
|
34.2
|
%
|
(1)
|
Reflects the impact from the Deferred Remeasurement, net of the Deemed Repatriation Tax
|
|
2018
|
|
2017
|
|
2016
|
||||||
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
|
|
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
|
$
|
(14,532
|
)
|
|
$
|
(14,480
|
)
|
|
$
|
(1,746
|
)
|
|
$
|
(1,759
|
)
|
Service cost
|
(350
|
)
|
|
(368
|
)
|
|
(10
|
)
|
|
(11
|
)
|
||||
Interest cost
|
(489
|
)
|
|
(447
|
)
|
|
(60
|
)
|
|
(56
|
)
|
||||
Actuarial gain
|
416
|
|
|
343
|
|
|
166
|
|
|
42
|
|
||||
Plan amendments and other
|
(12
|
)
|
|
(22
|
)
|
|
(10
|
)
|
|
(9
|
)
|
||||
Benefits paid
|
467
|
|
|
442
|
|
|
51
|
|
|
47
|
|
||||
Ending obligations
|
$
|
(14,500
|
)
|
|
$
|
(14,532
|
)
|
|
$
|
(1,609
|
)
|
|
$
|
(1,746
|
)
|
Fair value of plans’ assets
|
|
|
|
|
|
|
|
||||||||
Beginning fair value
|
$
|
12,325
|
|
|
$
|
10,401
|
|
|
$
|
696
|
|
|
$
|
614
|
|
Actual return on plan assets
|
579
|
|
|
1,056
|
|
|
34
|
|
|
61
|
|
||||
Contributions
|
335
|
|
|
1,348
|
|
|
45
|
|
|
61
|
|
||||
Benefits paid
|
(467
|
)
|
|
(442
|
)
|
|
(51
|
)
|
|
(47
|
)
|
||||
Expenses and other
|
(44
|
)
|
|
(38
|
)
|
|
7
|
|
|
7
|
|
||||
Ending fair value
|
$
|
12,728
|
|
|
$
|
12,325
|
|
|
$
|
731
|
|
|
$
|
696
|
|
|
|
|
|
|
|
|
|
||||||||
Underfunded status of the plans
|
$
|
(1,772
|
)
|
|
$
|
(2,207
|
)
|
|
$
|
(878
|
)
|
|
$
|
(1,050
|
)
|
Amounts recognized in the balance sheet
|
|
|
|
|
|
|
|
||||||||
Non-current assets
|
$
|
113
|
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(51
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
||||
Non-current liabilities
|
(1,834
|
)
|
|
(2,231
|
)
|
|
(878
|
)
|
|
(1,050
|
)
|
||||
|
$
|
(1,772
|
)
|
|
$
|
(2,207
|
)
|
|
$
|
(878
|
)
|
|
$
|
(1,050
|
)
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Service cost
|
$
|
350
|
|
|
$
|
368
|
|
|
$
|
318
|
|
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
11
|
|
Interest cost
|
489
|
|
|
447
|
|
|
458
|
|
|
60
|
|
|
56
|
|
|
61
|
|
||||||
Expected return on plan assets
|
(901
|
)
|
|
(874
|
)
|
|
(747
|
)
|
|
(53
|
)
|
|
(49
|
)
|
|
(45
|
)
|
||||||
Amortization of prior year service costs
|
13
|
|
|
12
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Recognized net actuarial loss
|
348
|
|
|
405
|
|
|
242
|
|
|
14
|
|
|
17
|
|
|
8
|
|
||||||
Net periodic benefit cost
|
$
|
299
|
|
|
$
|
358
|
|
|
$
|
285
|
|
|
$
|
31
|
|
|
$
|
35
|
|
|
$
|
34
|
|
|
Pension Plans
|
|
Postretirement
Medical Plans
|
|
Total
|
||||||
Prior service cost
|
$
|
(52
|
)
|
|
$
|
—
|
|
|
$
|
(52
|
)
|
Net actuarial loss
|
(4,184
|
)
|
|
(36
|
)
|
|
(4,220
|
)
|
|||
Total amounts included in AOCI
|
(4,236
|
)
|
|
(36
|
)
|
|
(4,272
|
)
|
|||
Prepaid / (accrued) pension cost
|
2,464
|
|
|
(842
|
)
|
|
1,622
|
|
|||
Net balance sheet liability
|
$
|
(1,772
|
)
|
|
$
|
(878
|
)
|
|
$
|
(2,650
|
)
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
|
Total
|
||||||
Prior service cost
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
Net actuarial loss
|
(260
|
)
|
|
—
|
|
|
(260
|
)
|
|||
Total
|
$
|
(272
|
)
|
|
$
|
—
|
|
|
$
|
(272
|
)
|
Asset Class
|
|
Minimum
|
|
Maximum
|
||
|
|
|
|
|
||
Equity investments
|
|
30
|
%
|
|
60
|
%
|
Fixed income investments
|
|
20
|
%
|
|
40
|
%
|
Alternative investments
|
|
10
|
%
|
|
30
|
%
|
Cash & money market funds
|
|
0
|
%
|
|
10
|
%
|
|
|
As of September 29, 2018
|
|||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Total
|
|
Plan Asset Mix
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash
|
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
—
|
%
|
Common and preferred stocks
(1)
|
|
3,023
|
|
|
—
|
|
|
3,023
|
|
|
22
|
%
|
|||
Mutual funds
|
|
800
|
|
|
|
|
|
800
|
|
|
6
|
%
|
|||
Government and federal agency bonds, notes and MBS
|
|
2,019
|
|
|
488
|
|
|
2,507
|
|
|
19
|
%
|
|||
Corporate bonds
|
|
—
|
|
|
573
|
|
|
573
|
|
|
4
|
%
|
|||
Other mortgage- and asset-backed securities
|
|
—
|
|
|
86
|
|
|
86
|
|
|
1
|
%
|
|||
Derivatives and other, net
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
%
|
|||
Total investments in the fair value hierarchy
|
|
$
|
5,902
|
|
|
$
|
1,146
|
|
|
$
|
7,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Assets valued at NAV as a practical expedient:
|
|
|
|
|
|
|
|
|
|||||||
Common collective funds
|
|
|
|
|
|
2,778
|
|
|
21
|
%
|
|||||
Alternative investments
|
|
|
|
|
|
2,363
|
|
|
18
|
%
|
|||||
Money market funds and other
|
|
|
|
|
|
1,270
|
|
|
9
|
%
|
|||||
Total investments at fair value
|
|
|
|
|
|
$
|
13,459
|
|
|
100
|
%
|
|
|
As of September 30, 2017
|
|||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Total
|
|
Plan Asset Mix
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
88
|
|
|
1
|
%
|
Common and preferred stocks
(1)
|
|
2,974
|
|
|
—
|
|
|
2,974
|
|
|
23
|
%
|
|||
Mutual funds
|
|
771
|
|
|
—
|
|
|
771
|
|
|
6
|
%
|
|||
Government and federal agency bonds, notes and MBS
|
|
1,870
|
|
|
548
|
|
|
2,418
|
|
|
19
|
%
|
|||
Corporate bonds
|
|
—
|
|
|
579
|
|
|
579
|
|
|
4
|
%
|
|||
Other mortgage- and asset-backed securities
|
|
—
|
|
|
99
|
|
|
99
|
|
|
1
|
%
|
|||
Derivatives and other, net
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
%
|
|||
Total investments in the fair value hierarchy
|
|
$
|
5,703
|
|
|
$
|
1,240
|
|
|
$
|
6,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Assets valued at NAV as a practical expedient:
|
|
|
|
|
|
|
|
|
|||||||
Common collective funds
|
|
|
|
|
|
2,727
|
|
|
21
|
%
|
|||||
Alternative investments
|
|
|
|
|
|
2,201
|
|
|
17
|
%
|
|||||
Money market funds and other
|
|
|
|
|
|
1,150
|
|
|
9
|
%
|
|||||
Total investments at fair value
|
|
|
|
|
|
$
|
13,021
|
|
|
100
|
%
|
(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.
|
|
Pension
Plans
|
|
Postretirement
Medical Plans
(1)
|
||||
2019
|
$
|
534
|
|
|
$
|
51
|
|
2020
|
544
|
|
|
54
|
|
||
2021
|
579
|
|
|
58
|
|
||
2022
|
618
|
|
|
63
|
|
||
2023
|
656
|
|
|
68
|
|
||
2024 – 2028
|
3,827
|
|
|
404
|
|
(1)
|
Estimated future benefit payments are net of expected Medicare subsidy receipts of
$80 million
.
|
Equity Securities
|
7
|
%
|
to
|
11
|
%
|
Debt Securities
|
3
|
%
|
to
|
5
|
%
|
Alternative Investments
|
7
|
%
|
to
|
12
|
%
|
|
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
|
$
|
241
|
|
|
$
|
2,680
|
|
|
$
|
135
|
|
|
$
|
(23
|
)
|
|
$
|
(213
|
)
|
1 ppt increase
|
(229
|
)
|
|
(2,275
|
)
|
|
(135
|
)
|
|
30
|
|
|
283
|
|
•
|
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
|
$
|
144
|
|
|
$
|
127
|
|
|
$
|
126
|
|
Health & welfare plans
|
172
|
|
|
160
|
|
|
167
|
|
|||
Total contributions
|
$
|
316
|
|
|
$
|
287
|
|
|
$
|
293
|
|
11
|
Equity
|
Per Share
|
|
Total Paid
|
|
Payment Timing
|
|
Related to Fiscal Period
|
$0.84
|
|
$1.2 billion
|
|
Fourth Quarter of Fiscal 2018
|
|
First Half 2018
|
$0.84
|
|
$1.3 billion
|
|
Second Quarter of Fiscal 2018
|
|
Second Half 2017
|
$0.78
|
|
$1.2 billion
|
|
Fourth Quarter of Fiscal 2017
|
|
First Half 2017
|
$0.78
|
|
$1.2 billion
|
|
Second Quarter of Fiscal 2017
|
|
Second Half 2016
|
$0.71
|
|
$1.1 billion
|
|
Fourth Quarter of Fiscal 2016
|
|
First Half 2016
|
$0.71
|
|
$1.2 billion
|
|
Second Quarter of Fiscal 2016
|
|
Second Half 2015
|
Fiscal year
|
|
Shares acquired
|
|
Total paid
|
2018
|
|
35 million
|
|
$3.6 billion
|
2017
|
|
89 million
|
|
$9.4 billion
|
2016
|
|
74 million
|
|
$7.5 billion
|
|
|
|
|
|
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
|
$
|
21
|
|
|
$
|
523
|
|
|
$
|
(4,002
|
)
|
|
$
|
(431
|
)
|
|
$
|
(3,889
|
)
|
Unrealized gains (losses) arising during the period
|
23
|
|
|
(297
|
)
|
|
(2,122
|
)
|
|
(90
|
)
|
|
(2,486
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
(264
|
)
|
|
265
|
|
|
—
|
|
|
1
|
|
|||||
Balance at October 1, 2016
|
$
|
44
|
|
|
$
|
(38
|
)
|
|
$
|
(5,859
|
)
|
|
$
|
(521
|
)
|
|
$
|
(6,374
|
)
|
Unrealized gains (losses) arising during the period
|
(2
|
)
|
|
124
|
|
|
521
|
|
|
(2
|
)
|
|
641
|
|
|||||
Reclassifications of net (gains) losses to net income
|
(27
|
)
|
|
(194
|
)
|
|
432
|
|
|
—
|
|
|
211
|
|
|||||
Balance at September 30, 2017
|
$
|
15
|
|
|
$
|
(108
|
)
|
|
$
|
(4,906
|
)
|
|
$
|
(523
|
)
|
|
$
|
(5,522
|
)
|
Unrealized gains (losses) arising during the period
|
9
|
|
|
250
|
|
|
203
|
|
|
(204
|
)
|
|
258
|
|
|||||
Reclassifications of net (gains) losses to net income
|
—
|
|
|
35
|
|
|
380
|
|
|
—
|
|
|
415
|
|
|||||
Balance at September 29, 2018
|
$
|
24
|
|
|
$
|
177
|
|
|
$
|
(4,323
|
)
|
|
$
|
(727
|
)
|
|
$
|
(4,849
|
)
|
|
|
|
|
|
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
|
$
|
(8
|
)
|
|
$
|
(189
|
)
|
|
$
|
1,505
|
|
|
$
|
160
|
|
|
$
|
1,468
|
|
Unrealized gains (losses) arising during the period
|
(10
|
)
|
|
104
|
|
|
801
|
|
|
32
|
|
|
927
|
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
98
|
|
|
(98
|
)
|
|
—
|
|
|
—
|
|
|||||
Balance at October 1, 2016
|
$
|
(18
|
)
|
|
$
|
13
|
|
|
$
|
2,208
|
|
|
$
|
192
|
|
|
$
|
2,395
|
|
Unrealized gains (losses) arising during the period
|
1
|
|
|
(39
|
)
|
|
(209
|
)
|
|
(76
|
)
|
|
(323
|
)
|
|||||
Reclassifications of net (gains) losses to net income
|
10
|
|
|
72
|
|
|
(160
|
)
|
|
—
|
|
|
(78
|
)
|
|||||
Balance at September 30, 2017
|
$
|
(7
|
)
|
|
$
|
46
|
|
|
$
|
1,839
|
|
|
$
|
116
|
|
|
$
|
1,994
|
|
Unrealized gains (losses) arising during the period
|
(2
|
)
|
|
(66
|
)
|
|
(47
|
)
|
|
(13
|
)
|
|
(128
|
)
|
|||||
Reclassifications of net (gains) losses to net income
|
—
|
|
|
(12
|
)
|
|
(102
|
)
|
|
—
|
|
|
(114
|
)
|
|||||
Balance at September 29, 2018
|
$
|
(9
|
)
|
|
$
|
(32
|
)
|
|
$
|
1,690
|
|
|
$
|
103
|
|
|
$
|
1,752
|
|
|
|
|
|
|
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
|
$
|
13
|
|
|
$
|
334
|
|
|
$
|
(2,497
|
)
|
|
$
|
(271
|
)
|
|
$
|
(2,421
|
)
|
Unrealized gains (losses) arising during the period
|
13
|
|
|
(193
|
)
|
|
(1,321
|
)
|
|
(58
|
)
|
|
(1,559
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
(166
|
)
|
|
167
|
|
|
—
|
|
|
1
|
|
|||||
Balance at October 1, 2016
|
$
|
26
|
|
|
$
|
(25
|
)
|
|
$
|
(3,651
|
)
|
|
$
|
(329
|
)
|
|
$
|
(3,979
|
)
|
Unrealized gains (losses) arising during the period
|
(1
|
)
|
|
85
|
|
|
312
|
|
|
(78
|
)
|
|
318
|
|
|||||
Reclassifications of net (gains) losses to net income
|
(17
|
)
|
|
(122
|
)
|
|
272
|
|
|
—
|
|
|
133
|
|
|||||
Balance at September 30, 2017
|
$
|
8
|
|
|
$
|
(62
|
)
|
|
$
|
(3,067
|
)
|
|
$
|
(407
|
)
|
|
$
|
(3,528
|
)
|
Unrealized gains (losses) arising during the period
|
7
|
|
|
184
|
|
|
156
|
|
|
(217
|
)
|
|
130
|
|
|||||
Reclassifications of net (gains) losses to net income
|
—
|
|
|
23
|
|
|
278
|
|
|
—
|
|
|
301
|
|
|||||
Balance at September 29, 2018
|
$
|
15
|
|
|
$
|
145
|
|
|
$
|
(2,633
|
)
|
|
$
|
(624
|
)
|
|
$
|
(3,097
|
)
|
Gains/(losses) in net income:
|
|
Affected line item in the Consolidated Statements of Income:
|
|
2018
|
|
2017
|
|
2016
|
||||||
Investments, net
|
|
Interest expense, net
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
Estimated tax
|
|
Income taxes
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|||
|
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Cash flow hedges
|
|
Primarily revenue
|
|
(35
|
)
|
|
194
|
|
|
264
|
|
|||
Estimated tax
|
|
Income taxes
|
|
12
|
|
|
(72
|
)
|
|
(98
|
)
|
|||
|
|
|
|
(23
|
)
|
|
122
|
|
|
166
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Pension and postretirement medical expense
|
|
Cost and expenses
|
|
(380
|
)
|
|
(432
|
)
|
|
(265
|
)
|
|||
Estimated tax
|
|
Income taxes
|
|
102
|
|
|
160
|
|
|
98
|
|
|||
|
|
|
|
(278
|
)
|
|
(272
|
)
|
|
(167
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications for the period
|
|
|
|
$
|
(301
|
)
|
|
$
|
(133
|
)
|
|
$
|
(1
|
)
|
12
|
Equity-Based Compensation
|
|
2018
|
|
2017
|
|
2016
|
|||
Risk-free interest rate
|
2.4
|
%
|
|
2.6
|
%
|
|
2.3
|
%
|
Expected volatility
|
23
|
%
|
|
22
|
%
|
|
26
|
%
|
Dividend yield
|
1.57
|
%
|
|
1.58
|
%
|
|
1.32
|
%
|
Termination rate
|
4.8
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
Exercise multiple
|
1.75
|
|
|
1.62
|
|
|
1.62
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Stock option
|
$
|
87
|
|
|
$
|
90
|
|
|
$
|
93
|
|
RSUs
|
306
|
|
|
274
|
|
|
293
|
|
|||
Total equity-based compensation expense
(1)
|
393
|
|
|
364
|
|
|
386
|
|
|||
Tax impact
|
(99
|
)
|
|
(123
|
)
|
|
(131
|
)
|
|||
Reduction in net income
|
$
|
294
|
|
|
$
|
241
|
|
|
$
|
255
|
|
Equity-based compensation expense capitalized during the period
|
$
|
70
|
|
|
$
|
78
|
|
|
$
|
78
|
|
Tax benefit reported in cash flow from financing activities
(2)
|
n/a
|
|
|
n/a
|
|
|
$
|
208
|
|
(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
|
24
|
|
|
$
|
76.68
|
|
Awards forfeited
|
(1
|
)
|
|
107.69
|
|
|
Awards granted
|
4
|
|
|
111.48
|
|
|
Awards exercised
|
(3
|
)
|
|
58.09
|
|
|
Outstanding at end of year
|
24
|
|
|
$
|
84.14
|
|
Exercisable at end of year
|
14
|
|
|
$
|
69.06
|
|
|
|
|
|
|
|
|
Vested
|
|||||||||||
|
Range of Exercise Prices
|
|
Number of
Options
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Years of
Contractual
Life
|
|||||||||||
|
|
$
|
—
|
|
—
|
$
|
45
|
|
|
|
3
|
|
|
$
|
38.13
|
|
|
2.8
|
|
|
$
|
46
|
|
—
|
$
|
60
|
|
|
|
3
|
|
|
50.75
|
|
|
4.2
|
|
|
|
$
|
61
|
|
—
|
$
|
90
|
|
|
|
3
|
|
|
72.94
|
|
|
5.2
|
|
|
|
$
|
91
|
|
—
|
$
|
115
|
|
|
|
5
|
|
|
101.92
|
|
|
7.0
|
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected to Vest
|
|||||||||||
|
Range of Exercise Prices
|
|
Number of
Options
(1)
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Years of
Contractual
Life
|
|||||||||||
|
|
$
|
90
|
|
—
|
$
|
105
|
|
|
|
1
|
|
|
$
|
93.09
|
|
|
6.5
|
|
|
$
|
106
|
|
—
|
$
|
110
|
|
|
|
3
|
|
|
105.24
|
|
|
8.3
|
|
|
|
$
|
111
|
|
—
|
$
|
115
|
|
|
|
5
|
|
|
112.05
|
|
|
8.6
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
(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
|
9
|
|
|
$
|
101.17
|
|
Granted
(1)
|
5
|
|
|
109.05
|
|
|
Vested
|
(4
|
)
|
|
113.21
|
|
|
Forfeited
|
(1
|
)
|
|
107.23
|
|
|
Unvested at end of year
(2)
|
9
|
|
|
$
|
108.74
|
|
13
|
Detail of Certain Balance Sheet Accounts
|
Current receivables
|
|
September 29,
2018 |
|
September 30,
2017 |
||||
|
|
|
|
|||||
Accounts receivable
|
|
$
|
8,268
|
|
|
$
|
7,611
|
|
Other
|
|
1,258
|
|
|
1,209
|
|
||
Allowance for doubtful accounts
|
|
(192
|
)
|
|
(187
|
)
|
||
|
|
$
|
9,334
|
|
|
$
|
8,633
|
|
Other current assets
|
|
|
|
|
||||
Prepaid expenses
|
|
$
|
476
|
|
|
$
|
445
|
|
Other
|
|
159
|
|
|
143
|
|
||
|
|
$
|
635
|
|
|
$
|
588
|
|
Parks, resorts and other property
|
|
|
|
|
||||
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
|
|
||
|
|
55,238
|
|
|
54,043
|
|
||
Accumulated depreciation
|
|
(30,764
|
)
|
|
(29,037
|
)
|
||
Projects in progress
|
|
3,942
|
|
|
2,145
|
|
||
Land
|
|
1,124
|
|
|
1,255
|
|
||
|
|
$
|
29,540
|
|
|
$
|
28,406
|
|
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
|
|
||
|
|
$
|
6,812
|
|
|
$
|
6,995
|
|
Other non-current assets
|
|
September 29,
2018 |
|
September 30,
2017 |
||||
|
|
|
|
|||||
Receivables
|
|
$
|
1,928
|
|
|
$
|
1,688
|
|
Prepaid expenses
|
|
919
|
|
|
233
|
|
||
Other
|
|
518
|
|
|
469
|
|
||
|
|
$
|
3,365
|
|
|
$
|
2,390
|
|
Other long-term liabilities
|
|
|
|
|
||||
Pension and postretirement medical plan liabilities
|
|
$
|
2,712
|
|
|
$
|
3,281
|
|
Other
|
|
3,878
|
|
|
3,162
|
|
||
|
|
$
|
6,590
|
|
|
$
|
6,443
|
|
14
|
Commitments and Contingencies
|
|
Broadcast
Programming
|
|
Operating
Leases
|
|
Other
|
|
Total
|
||||||||
2019
|
$
|
7,340
|
|
|
$
|
681
|
|
|
$
|
1,793
|
|
|
$
|
9,814
|
|
2020
|
7,475
|
|
|
571
|
|
|
1,269
|
|
|
9,315
|
|
||||
2021
|
7,277
|
|
|
470
|
|
|
568
|
|
|
8,315
|
|
||||
2022
|
5,317
|
|
|
381
|
|
|
1,095
|
|
|
6,793
|
|
||||
2023
|
4,363
|
|
|
261
|
|
|
901
|
|
|
5,525
|
|
||||
Thereafter
|
12,841
|
|
|
1,220
|
|
|
1,668
|
|
|
15,729
|
|
||||
|
$
|
44,613
|
|
|
$
|
3,584
|
|
|
$
|
7,294
|
|
|
$
|
55,491
|
|
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
|
|
15
|
Fair Value Measurement
|
|
|
Fair Value Measurement at September 29, 2018
|
||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
||||||||||
Investments
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38
|
|
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange
|
|
—
|
|
|
469
|
|
|
—
|
|
|
469
|
|
||||
Other
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
(410
|
)
|
|
—
|
|
|
(410
|
)
|
||||
Foreign exchange
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
(274
|
)
|
||||
Total recorded at fair value
|
|
$
|
38
|
|
|
$
|
(200
|
)
|
|
$
|
—
|
|
|
$
|
(162
|
)
|
Fair value of borrowings
|
|
$
|
—
|
|
|
$
|
19,826
|
|
|
$
|
1,171
|
|
|
$
|
20,997
|
|
|
|
Fair Value Measurement at September 30, 2017
|
||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investments
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Foreign exchange
|
|
—
|
|
|
403
|
|
|
—
|
|
|
403
|
|
||||
Other
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
(122
|
)
|
||||
Foreign exchange
|
|
—
|
|
|
(427
|
)
|
|
—
|
|
|
(427
|
)
|
||||
Total recorded at fair value
|
|
$
|
36
|
|
|
$
|
(128
|
)
|
|
$
|
—
|
|
|
$
|
(92
|
)
|
Fair value of borrowings
|
|
$
|
—
|
|
|
$
|
23,110
|
|
|
$
|
2,764
|
|
|
$
|
25,874
|
|
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
|
$
|
166
|
|
|
$
|
169
|
|
|
$
|
(80
|
)
|
|
$
|
(39
|
)
|
Interest rate
|
—
|
|
|
—
|
|
|
(329
|
)
|
|
—
|
|
||||
Other
|
13
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
38
|
|
|
96
|
|
|
(95
|
)
|
|
(60
|
)
|
||||
Interest Rate
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
||||
Gross fair value of derivatives
|
217
|
|
|
267
|
|
|
(504
|
)
|
|
(180
|
)
|
||||
Counterparty netting
|
(158
|
)
|
|
(227
|
)
|
|
254
|
|
|
131
|
|
||||
Cash collateral (received)/paid
|
—
|
|
|
—
|
|
|
135
|
|
|
5
|
|
||||
Net derivative positions
|
$
|
59
|
|
|
$
|
40
|
|
|
$
|
(115
|
)
|
|
$
|
(44
|
)
|
|
As of September 30, 2017
|
||||||||||||||
|
Current
Assets
|
|
Other Assets
|
|
Other
Current
Liabilities
|
|
Other Long-
Term
Liabilities
|
||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
$
|
175
|
|
|
$
|
190
|
|
|
$
|
(192
|
)
|
|
$
|
(170
|
)
|
Interest rate
|
—
|
|
|
10
|
|
|
(106
|
)
|
|
—
|
|
||||
Other
|
6
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
38
|
|
|
—
|
|
|
(46
|
)
|
|
(19
|
)
|
||||
Interest Rate
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
||||
Gross fair value of derivatives
|
219
|
|
|
202
|
|
|
(344
|
)
|
|
(205
|
)
|
||||
Counterparty netting
|
(142
|
)
|
|
(190
|
)
|
|
188
|
|
|
144
|
|
||||
Cash collateral (received)/paid
|
(20
|
)
|
|
(7
|
)
|
|
19
|
|
|
—
|
|
||||
Net derivative positions
|
$
|
57
|
|
|
$
|
5
|
|
|
$
|
(137
|
)
|
|
$
|
(61
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Gain (loss) on interest rate swaps
|
$
|
(230
|
)
|
|
$
|
(211
|
)
|
|
$
|
18
|
|
Gain (loss) on hedged borrowings
|
230
|
|
|
211
|
|
|
(18
|
)
|
|
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
|
$
|
(146
|
)
|
|
$
|
105
|
|
|
$
|
2
|
|
|
$
|
39
|
|
|
$
|
(13
|
)
|
|
$
|
(2
|
)
|
|
$
|
29
|
|
|
$
|
3
|
|
|
$
|
49
|
|
Net gains (losses) on foreign exchange risk management contracts not designated as hedges
|
104
|
|
|
(120
|
)
|
|
(65
|
)
|
|
(46
|
)
|
|
11
|
|
|
—
|
|
|
(19
|
)
|
|
24
|
|
|
(24
|
)
|
|||||||||
Net gains (losses)
|
$
|
(42
|
)
|
|
$
|
(15
|
)
|
|
$
|
(63
|
)
|
|
$
|
(7
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
10
|
|
|
$
|
27
|
|
|
$
|
25
|
|
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.
|
(unaudited)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
15,351
|
|
|
$
|
14,548
|
|
|
$
|
15,228
|
|
|
$
|
14,307
|
|
|
Segment operating income
(5)
|
|
3,986
|
|
|
4,237
|
|
|
4,189
|
|
|
3,277
|
|
|
||||
Net income
|
|
4,473
|
|
|
3,115
|
|
|
3,059
|
|
|
2,419
|
|
|
||||
Net income attributable to Disney
|
|
4,423
|
|
|
2,937
|
|
|
2,916
|
|
|
2,322
|
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
2.91
|
|
(1)
|
$
|
1.95
|
|
(2)
|
$
|
1.95
|
|
(3)
|
$
|
1.55
|
|
(4)
|
Basic
|
|
2.93
|
|
|
1.95
|
|
|
1.96
|
|
|
1.56
|
|
|
||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
14,784
|
|
|
$
|
13,336
|
|
|
$
|
14,238
|
|
|
$
|
12,779
|
|
|
Segment operating income
(5)
|
|
3,956
|
|
|
3,996
|
|
|
4,011
|
|
|
2,812
|
|
|
||||
Net income
|
|
2,488
|
|
|
2,539
|
|
|
2,474
|
|
|
1,865
|
|
|
||||
Net income attributable to Disney
|
|
2,479
|
|
|
2,388
|
|
|
2,366
|
|
|
1,747
|
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
1.55
|
|
|
$
|
1.50
|
|
|
$
|
1.51
|
|
(3)
|
$
|
1.13
|
|
(4)
|
Basic
|
|
1.56
|
|
|
1.51
|
|
|
1.51
|
|
|
1.14
|
|
|
(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
$1.00
on diluted earnings per share, and a gain from the sale of property rights, which had a favorable impact of
$0.03
on diluted earnings per share. These favorable impacts were partially offset by restructuring and impairment charges, which had an adverse impact of
$0.01
on diluted earnings per share.
|
(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
$0.09
on diluted earnings per share, and proceeds from legal insurance recoveries, which had a favorable impact of
$0.02
on diluted earnings per share. These favorable impacts were partially offset by restructuring and impairment charges, which had an adverse impact of
$0.01
per diluted earnings per share.
|
(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
$0.07
on diluted earnings per share. Results for the third quarter of fiscal 2017 included a charge, net of committed insurance recoveries, incurred in connection with the settlement of litigation, which had an adverse impact of
$0.07
on diluted earnings per share.
|
(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
$0.25
on diluted earnings per share, partially offset by equity investment impairments, which had an adverse impact of
$0.11
per diluted earnings per share, and the impact of updating prior-period Tax Act estimate, which had an adverse impact of
$0.06
per diluted earnings per share. Results for the fourth quarter of fiscal 2017 included a non-cash net gain in connection with the acquisition of a controlling interest in BAMTech, which had a favorable impact of
$0.10
per diluted earnings per share, partially offset by restructuring and impairment charges, which had an adverse impact of
$0.04
per diluted earnings per share.
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(5)
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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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