XML 31 R19.htm IDEA: XBRL DOCUMENT v3.19.1
Equity
 6 Months Ended
Mar. 30, 2019
Equity [Abstract]  
Equity Equity
The Company paid the following dividends in fiscal 2019 and 2018:
Per Share
 
Total Paid
 
Payment Timing
 
Related to Fiscal Period
$0.88
$1.3 billion
Second quarter of Fiscal 2019
Second Half of 2018
$0.84
$1.2 billion
Fourth Quarter of Fiscal 2018
First Half of 2018
$0.84
$1.3 billion
Second Quarter of Fiscal 2018
Second Half of 2017

As a result of our acquisition of 21CF, the TWDC became the parent entity of both 21CF and TWDC Enterprises 18 Corp. (formerly known as The Walt Disney Company and referred to herein as “Legacy Disney”). TWDC issued 307 million shares of common stock to acquire 21CF (see Note 4), and all the outstanding shares of Legacy Disney (other than treasury shares, shares held by subsidiaries of Legacy Disney and shares held on behalf of third parties) were converted on a one-for-one basis into new publicly traded shares of TWDC.
On March 20, 2019, Legacy Disney terminated its share repurchase program and 1.4 billion treasury shares were canceled, which resulted in a decrease to common stock and retained earnings of $17.6 billion and $49.1 billion, respectively. The cost of treasury shares canceled was allocated to common stock based on the ratio of treasury shares to total shares outstanding, with the excess allocated to retained earnings. At March 30, 2019, TWDC held 19 million treasury shares.
TWDC’s authorized share capital consists of 4.6 billion common shares at $0.01 par value and 100 million preferred shares at $0.01 par value, both of which represent the same authorized capital structure in effect prior to the completion of the 21CF acquisition and as of September 29, 2018. As of September 29, 2018, Legacy Disney had 40 thousand preferred series B shares authorized with $0.01 par value, which were eliminated during the first quarter of fiscal 2019.
The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts:
 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
AOCI, before tax
Investments
 
Cash Flow Hedges
 
Second quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at December 29, 2018
$
—

 
$
166

 
$
(4,254
)
 
$
(743
)
 
$
(4,831
)
Quarter Ended March 30, 2019:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
(5
)
 
(82
)
 
19

 
15

 
(53
)
Reclassifications of realized net (gains) losses to net income
—

 
(22
)
 
72

 
—

 
50

Balance at March 30, 2019
$
(5
)
 
$
62

 
$
(4,163
)
 
$
(728
)
 
$
(4,834
)
 
 
 
 
 
 
 
 
 
 
Second quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at December 30, 2017
$
14

 
$
(69
)
 
$
(4,810
)
 
$
(461
)
 
$
(5,326
)
Quarter Ended March 31, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
10

 
(165
)
 
24

 
103

 
(28
)
Reclassifications of realized net (gains) losses to net income
—

 
37

 
96

 
—

 
133

Balance at March 31, 2018
$
24

 
$
(197
)
 
$
(4,690
)
 
$
(358
)
 
$
(5,221
)
 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
24

 
$
177

 
$
(4,323
)
 
$
(727
)
 
$
(4,849
)
Six Months Ended March 30, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(5
)
 
(55
)
 
19

 
(1
)
 
(42
)
Reclassifications of net (gains) losses to net income
—

 
(61
)
 
141

 
—

 
80

Reclassifications to retained earnings
(24
)
 
1

 
—

 
—

 
(23
)
Balance at March 30, 2019
$
(5
)
 
$
62

 
$
(4,163
)
 
$
(728
)
 
$
(4,834
)
 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
15

 
$
(108
)
 
$
(4,906
)
 
$
(523
)
 
$
(5,522
)
Six Months Ended March 31, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
9

 
(146
)
 
24

 
165

 
52

Reclassifications of net (gains) losses to net income
—

 
57

 
192

 
—

 
249

Balance at March 31, 2018
$
24

 
$
(197
)
 
$
(4,690
)
 
$
(358
)
 
$
(5,221
)
 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
Tax on AOCI
Investments
 
Cash Flow Hedges
 
Second quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at December 29, 2018
$
—

 
$
(38
)
 
$
1,007

 
$
80

 
$
1,049

Quarter Ended March 30, 2019:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
1

 
19

 
(6
)
 
(3
)
 
11

Reclassifications of realized net (gains) losses to net income
—

 
5

 
(17
)
 
—

 
(12
)
Balance at March 30, 2019
$
1

 
$
(14
)
 
$
984

 
$
77

 
$
1,048

 
 
 
 
 
 
 
 
 
 
Second quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at December 30, 2017
$
(7
)
 
$
25

 
$
1,804

 
$
100

 
$
1,922

Quarter Ended March 31, 2018:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
(3
)
 
25

 
(3
)
 
(33
)
 
(14
)
Reclassifications of realized net (gains) losses to net income
—

 
(9
)
 
(23
)
 
—

 
(32
)
Balance at March 31, 2018
$
(10
)
 
$
41

 
$
1,778

 
$
67

 
$
1,876

 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
(9
)
 
$
(32
)
 
$
1,690

 
$
103

 
$
1,752

Six Months Ended March 30, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
1

 
13

 
(6
)
 
(10
)
 
(2
)
Reclassifications of net (gains) losses to net income
—

 
14

 
(33
)
 
—

 
(19
)
Reclassifications to retained earnings (1)
9

 
(9
)
 
(667
)
 
(16
)
 
(683
)
Balance at March 30, 2019
$
1

 
$
(14
)
 
$
984

 
$
77

 
$
1,048

 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
(7
)
 
$
46

 
$
1,839

 
$
116

 
$
1,994

Six Months Ended March 31, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(3
)
 
12

 
(3
)
 
(49
)
 
(43
)
Reclassifications of net (gains) losses to net income
—

 
(17
)
 
(58
)
 
—

 
(75
)
Balance at March 31, 2018
$
(10
)
 
$
41

 
$
1,778

 
$
67

 
$
1,876

 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
AOCI, after tax
Investments
 
Cash Flow Hedges
 
Second quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at December 29, 2018
$
—

 
$
128

 
$
(3,247
)
 
$
(663
)
 
$
(3,782
)
Quarter Ended March 30, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(4
)
 
(63
)
 
13

 
12

 
(42
)
Reclassifications of realized net (gains) losses to net income
—

 
(17
)
 
55

 
—

 
38

Balance at March 30, 2019
$
(4
)
 
$
48

 
$
(3,179
)
 
$
(651
)
 
$
(3,786
)
 
 
 
 
 
 
 
 
 
 
Second quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at December 30, 2017
$
7

 
$
(44
)
 
$
(3,006
)
 
$
(361
)
 
$
(3,404
)
Quarter Ended March 31, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
7

 
(140
)
 
21

 
70

 
(42
)
Reclassifications of realized net (gains) losses to net income
—

 
28

 
73

 
—

 
101

Balance at March 31, 2018
$
14

 
$
(156
)
 
$
(2,912
)
 
$
(291
)
 
$
(3,345
)
 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
15

 
$
145

 
$
(2,633
)
 
$
(624
)
 
$
(3,097
)
Six Months Ended March 30, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(4
)
 
(42
)
 
13

 
(11
)
 
(44
)
Reclassifications of net (gains) losses to net income
—

 
(47
)
 
108

 
—

 
61

Reclassifications to retained earnings (1)
(15
)
 
(8
)
 
(667
)
 
(16
)
 
(706
)
Balance at March 30, 2019
$
(4
)
 
$
48

 
$
(3,179
)
 
$
(651
)
 
$
(3,786
)
 
 
 
 
 
 
 
 
 
 
First and second quarter of fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
8

 
$
(62
)
 
$
(3,067
)
 
$
(407
)
 
$
(3,528
)
Six Months Ended March 31, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
6

 
(134
)
 
21

 
116

 
9

Reclassifications of net (gains) losses to net income
—

 
40

 
134

 
—

 
174

Balance at March 31, 2018
$
14

 
$
(156
)
 
$
(2,912
)
 
$
(291
)
 
$
(3,345
)
(1) 
At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings.
In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings.
Details about AOCI components reclassified to net income are as follows:
Gains/(losses) in net income:
 
Affected line item in the
  Condensed Consolidated
  Statements of Income:
 
Quarter Ended
 
Six Months Ended
 
 
March 30,
2019
 
March 31,
2018
 
March 30,
2019
 
March 31,
2018
Cash flow hedges
 
Primarily revenue
 
$
22

 
$
(37
)
 
$
61

 
$
(57
)
Estimated tax
 
Income taxes
 
(5
)
 
9

 
(14
)
 
17

 
 
 
 
17

 
(28
)
 
47

 
(40
)
 
 
 
 
 
 
 
 
 
 
 
Pension and postretirement
  medical expense
 
Costs and expenses
 
—

 
(96
)
 
—

 
(192
)
 
 
Interest expense, net
 
(72
)
 
—

 
(141
)
 
—

Estimated tax
 
Income taxes
 
17

 
23

 
33

 
58

 
 
 
 
(55
)
 
(73
)
 
(108
)
 
(134
)
 
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
 
 
$
(38
)
 
$
(101
)
 
$
(61
)
 
$
(174
)