Condensed Consolidating Financial Information (Tables)

6 Months Ended

Mar. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Statements of Income

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Quarter Ended March 30, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—		$	—		$	14,896		$	26		$	14,922
Costs and expenses
Operating expenses	—			—			(8,376		)	—			(8,376		)
Selling, general, administrative and other	—			(218		)	(2,109		)	—			(2,327		)
Depreciation and amortization	—			(1		)	(827		)	—			(828		)
Total costs and expenses	—			(219		)	(11,312		)	—			(11,531		)
Restructuring and impairment charges	—			—			(662		)	—			(662		)
Allocations to non-guarantor subsidiaries	—			203			(203		)	—			—
Other income, net	—			19			4,970			(26		)	4,963
Interest expense, net	(109		)	(112		)	78			—			(143		)
Equity in the income (loss) of investees, net	—			—			(312		)	—			(312		)
Income from continuing operations before income taxes	(109		)	(109		)	7,455			—			7,237
Income taxes from continuing operations	25			25			(1,697		)	—			(1,647		)
Earnings from subsidiary entities	317			5,982			—			(6,299		)	—
Net income from continuing operations	233			5,898			5,758			(6,299		)	5,590
Income (loss) from discontinued operations	21			—			21			(21		)	21
Consolidated net income	254			5,898			5,779			(6,320		)	5,611
Less: Net income attributable to noncontrolling interests	—			—			(159		)	—			(159		)
Net income excluding noncontrolling interests	$	254		$	5,898		$	5,620		$	(6,320	)	$	5,452
Comprehensive income excluding noncontrolling interests	$	254		$	5,895		$	5,634		$	(6,335	)	$	5,448

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Quarter Ended March 31, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—	$	—		$	14,586		$	(38	)	$	14,548
Costs and expenses
Operating expenses	—		—			(7,541		)	—			(7,541		)
Selling, general, administrative and other	—		(158		)	(2,081		)	—			(2,239		)
Depreciation and amortization	—		—			(731		)	—			(731		)
Total costs and expenses	—		(158		)	(10,353		)	—			(10,511		)
Restructuring and impairment charges	—		1			(14		)	—			(13		)
Allocations to non-guarantor subsidiaries	—		147			(147		)	—			—
Other income, net	—		(108		)	111			38			41
Interest expense, net	—		(173		)	30			—			(143		)
Equity in the income (loss) of investees, net	—		—			6			—			6
Income before taxes	—		(291		)	4,219			—			3,928
Income taxes	—		70			(883		)	—			(813		)
Earnings from subsidiary entities	—		3,158			—			(3,158		)	—
Consolidated net income	—		2,937			3,336			(3,158		)	3,115
Less: Net income attributable to noncontrolling interests	—		—			(178		)	—			(178		)
Net income excluding noncontrolling interests	$	—	$	2,937		$	3,158		$	(3,158	)	$	2,937
Comprehensive income excluding noncontrolling interests	$	—	$	2,996		$	3,250		$	(3,250	)	$	2,996

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months Ended March 30, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—		$	—		$	30,144		$	81		$	30,225
Costs and expenses
Operating expenses	—			—			(17,377		)	—			(17,377		)
Selling, general, administrative and other	—			(359		)	(4,120		)	—			(4,479		)
Depreciation and amortization	—			(1		)	(1,559		)	—			(1,560		)
Total costs and expenses	—			(360		)	(23,056		)	—			(23,416		)
Restructuring and impairment charges	—			—			(662		)	—			(662		)
Allocations to non-guarantor subsidiaries	—			330			(330		)	—			—
Other income, net	—			95			4,949			(81		)	4,963
Interest expense, net	(175		)	(236		)	205			—			(206		)
Equity in the income (loss) of investees, net	—			—			(236		)	—			(236		)
Income from continuing operations before income taxes	(175		)	(171		)	11,014			—			10,668
Income taxes from continuing operations	38			37			(2,367		)	—			(2,292		)
Earnings from subsidiary entities	317			8,886			—			(9,203		)	—
Net income from continuing operations	180			8,752			8,647			(9,203		)	8,376
Income (loss) from discontinued operations	21			—			21			(21		)	21
Consolidated net income	201			8,752			8,668			(9,224		)	8,397
Less: Net income attributable to noncontrolling interests	—			—			(157		)	—			(157		)
Net income excluding noncontrolling interests	$	201		$	8,752		$	8,511		$	(9,224	)	$	8,240
Comprehensive income excluding noncontrolling interests	$	200		$	8,770		$	8,486		$	(9,199	)	$	8,257

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months Ended March 31, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—	$	—		$	29,953		$	(54	)	$	29,899
Costs and expenses
Operating expenses	—		—			(16,270		)	—			(16,270		)
Selling, general, administrative and other	—		(285		)	(4,041		)	—			(4,326		)
Depreciation and amortization	—		—			(1,473		)	—			(1,473		)
Total costs and expenses	—		(285		)	(21,784		)	—			(22,069		)
Restructuring and impairment charges	—		—			(28		)	—			(28		)
Allocations to non-guarantor subsidiaries	—		266			(266		)	—			—
Other income, net	—		(127		)	167			54			94
Interest expense, net	—		(314		)	42			—			(272		)
Equity in the income (loss) of investees, net	—		—			49			—			49
Income before taxes	—		(460		)	8,133			—			7,673
Income taxes	—		35			(120		)	—			(85		)
Earnings from subsidiary entities	—		7,785			—			(7,785		)	—
Consolidated net income	—		7,360			8,013			(7,785		)	7,588
Less: Net income attributable to noncontrolling interests	—		—			(228		)	—			(228		)
Net income excluding noncontrolling interests	$	—	$	7,360		$	7,785		$	(7,785	)	$	7,360
Comprehensive income excluding noncontrolling interests	$	—	$	7,543		$	7,929		$	(7,929	)	$	7,543

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

As of March 30, 2019

(unaudited; in millions)

	TWDC		Legacy Disney		Non-Guarantor Subsidiaries		Reclassifications & Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	4,133	$	3	$	5,972	$	—		$	10,108
Receivables, net	231		—		14,362		—			14,593
Inventories	—		4		1,441		—			1,445
Television costs and advances	—		—		5,408		—			5,408
Other current assets	—		96		1,161		—			1,257
Assets held for sale	—		—		1,466		—			1,466
Total current assets	4,364		103		29,810		—			34,277
Film and television costs	—		—		24,353		—			24,353
Investments in subsidiaries	125,651		158,701		—		(284,352		)	—
Other investments	—		—		4,080		—			4,080
Parks, resorts and other property, net	—		11		31,006		—			31,017
Intangible assets, net	—		—		26,985		—			26,985
Goodwill	—		—		75,057		—			75,057
Noncurrent assets held for sale	—		—		13,182		—			13,182
Intercompany receivables	4,226		—		139,527		(143,753		)	—
Other assets	110		736		5,176		(631		)	5,391
Total assets	$	134,351	$	159,551	$	349,176	$	(428,736	)	$	214,342
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities	$	169	$	292	$	20,042	$	—		$	20,503
Current portion of borrowings	16,396		2,506		256		—			19,158
Deferred revenues and other	—		26		4,255		—			4,281
Liabilities held for sale	—		—		434		—			434
Total current liabilities	16,565		2,824		24,987		—			44,376
Non-current liabilities
Borrowings	$	20,353	$	14,880	$	2,570	$	—		$	37,803
Deferred income taxes	—		—		11,839		(631		)	11,208
Noncurrent liabilities held for sale	—		—		2,659		—			2,659
Other long-term liabilities	751		2,863		9,240		—			12,854
Intercompany payables	6,744		132,342		4,667		(143,753		)	—
Total non-current liabilities	27,848		150,085		30,975		(144,384		)	64,524
Redeemable noncontrolling interests	—		—		1,103		—			1,103
Total Disney Shareholders’ equity	89,938		6,642		277,710		(284,352		)	89,938
Noncontrolling interests	—		—		14,401		—			14,401
Total equity	89,938		6,642		292,111		(284,352		)	104,339
Total liabilities and equity	$	134,351	$	159,551	$	349,176	$	(428,736	)	$	214,342

CONDENSED CONSOLIDATING BALANCE SHEETS

As of September 29, 2018

(unaudited; in millions)

	TWDC		Legacy Disney		Non-Guarantor Subsidiaries		Reclassifications & Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	—	$	1,367	$	2,783	$	—		$	4,150
Receivables, net	—		155		9,179		—			9,334
Inventories	—		4		1,388		—			1,392
Television costs and advances	—		—		1,314		—			1,314
Other current assets	—		152		483		—			635
Total current assets	—		1,678		15,147		—			16,825
Film and television costs	—		—		7,888		—			7,888
Investments in subsidiaries	—		149,586		—		(149,586		)	—
Other investments	—		—		2,899		—			2,899
Parks, resorts and other property, net	—		12		29,528		—			29,540
Intangible assets, net	—		—		6,812		—			6,812
Goodwill	—		—		31,269		—			31,269
Intercompany receivables	—		—		79,499		(79,499		)	—
Other assets	—		911		3,178		(724		)	3,365
Total assets	$	—	$	152,187	$	176,220	$	(229,809	)	$	98,598
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities	$	—	$	688	$	8,791	$	—		$	9,479
Current portion of borrowings	—		3,751		39		—			3,790
Deferred revenues and other	—		115		4,476		—			4,591
Total current liabilities	—		4,554		13,306		—			17,860
Non-current liabilities
Borrowings	$	—	$	15,676	$	1,408	$	—		$	17,084
Deferred income taxes	—		—		3,833		(724		)	3,109
Other long-term liabilities	—		3,685		2,905		—			6,590
Intercompany payables	—		79,499		—		(79,499		)	—
Total non-current liabilities	—		98,860		8,146		(80,223		)	26,783
Redeemable noncontrolling interests	—		—		1,123		—			1,123
Total Disney Shareholders’ equity	—		48,773		149,586		(149,586		)	48,773
Noncontrolling interests	—		—		4,059		—			4,059
Total equity	—		48,773		153,645		(149,586		)	52,832
Total liabilities and equity	$	—	$	152,187	$	176,220	$	(229,809	)	$	98,598

Condensed Consolidating Statements of Cash Flow

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Six Months Ended March 30, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
OPERATING ACTIVITIES
Cash provided by operations	$	534		$	(763	)	$	6,403		$	(160	)	$	6,014
INVESTING ACTIVITIES
Investments in parks, resorts and other property	—			—			(2,390		)	—			(2,390		)
Acquisitions	(35,702		)	—			25,801			—			(9,901		)
Intercompany investing activities, net	22,900			—			—			(22,900		)	—
Other	—			—			(392		)	—			(392		)
Cash used in investing activities	(12,802		)	—			23,019			(22,900		)	(12,683		)
FINANCING ACTIVITIES
Commercial paper, net	1,387			(1,009		)	(2		)	—			376
Borrowings	31,100			—			45			—			31,145
Reduction of borrowings	(16,100		)	(1,250		)	(48		)	—			(17,398		)
Dividends	—			(1,310		)	—			—			(1,310		)
Repurchases of common stock	—			—			—			—			—
Proceeds from exercise of stock options	—			83			—			—			83
Intercompany financing and other, net	14			3,134			(26,208		)	23,060			—
Other	—			(241		)	41			—			(200		)
Cash used in financing activities	16,401			(593		)	(26,172		)	23,060			12,696
Discontinued operations	—			—			(35		)	—			(35		)
Impact of exchange rates on cash, cash equivalents and restricted cash	—			—			75			—			75
Change in cash, cash equivalents and restricted cash	4,133			(1,356		)	3,290			—			6,067
Cash, cash equivalents and restricted cash, beginning of year	—			1,367			2,788			—			4,155
Cash, cash equivalents and restricted cash, end of period	$	4,133		$	11		$	6,078		$	—		$	10,222

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Six Months Ended March 31, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
OPERATING ACTIVITIES
Cash provided by operations	$	—	$	507		$	6,282		$	(26	)	$	6,763
INVESTING ACTIVITIES
Investments in parks, resorts and other property	—		(17		)	(2,027		)	—			(2,044		)
Acquisitions	—		—			(1,581		)	—			(1,581		)
Intercompany investing activities, net	—		(1,581		)	—			1,581			—
Other	—		—			(180		)	—			(180		)
Cash used in investing activities	—		(1,598		)	(3,788		)	1,581			(3,805		)
FINANCING ACTIVITIES
Commercial paper, net	—		1,372			—			—			1,372
Borrowings	—		997			51			—			1,048
Reduction of borrowings	—		(1,300		)	(50		)	—			(1,350		)
Dividends	—		(1,266		)	(26		)	26			(1,266		)
Repurchases of common stock	—		(2,608		)	—			—			(2,608		)
Intercompany financing and other, net	—		4,297			(2,716		)	(1,581		)	—
Proceeds from exercise of stock options	—		91			—			—			91
Other	—		(159		)	(10		)	—			(169		)
Cash used in financing activities	—		1,424			(2,751		)	(1,555		)	(2,882		)
Impact of exchange rates on cash, cash equivalents and restricted cash	—		—			55			—			55
Change in cash, cash equivalents and restricted cash	—		333			(202		)	—			131
Cash, cash equivalents and restricted cash, beginning of year	—		693			3,371			—			4,064
Cash, cash equivalents and restricted cash, end of period	$	—	$	1,026		$	3,169		$	—		$	4,195