Condensed Consolidating Financial Information (Tables)

9 Months Ended

Jun. 29, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Statements of Income

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Quarter Ended June 29, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—		$	—		$	20,176		$	69		$	20,245
Costs and expenses
Operating expenses	—			—			(12,819		)	—			(12,819		)
Selling, general, administrative and other	—			(133		)	(3,229		)	—			(3,362		)
Depreciation and amortization	—			—			(1,304		)	—			(1,304		)
Total costs and expenses	—			(133		)	(17,352		)	—			(17,485		)
Restructuring and impairment charges	—			—			(207		)	—			(207		)
Allocations to non-guarantor subsidiaries	—			120			(120		)	—			—
Other income/(expense), net	43			7			(104		)	(69		)	(123		)
Interest income/(expense), net	(172		)	(299		)	60			—			(411		)
Equity in the income (loss) of investees, net	—			—			(1		)	—			(1		)
Income from continuing operations before income taxes	(129		)	(305		)	2,452			—			2,018
Income taxes from continuing operations	25			59			(479		)	—			(395		)
Earnings from subsidiary entities	1,505			2,654			—			(4,159		)	—
Net income from continuing operations	1,401			2,408			1,973			(4,159		)	1,623
Income (loss) from discontinued operations	359			—			359			(359		)	359
Net income	1,760			2,408			2,332			(4,518		)	1,982
Less: Net income from continuing operations attributable to noncontrolling interests	—			—			(186		)	—			(186		)
Less: Net income from discontinued operations attributable to noncontrolling interests	—			—			(36		)	—			(36		)
Net income excluding noncontrolling interests	$	1,760		$	2,408		$	2,110		$	(4,518	)	$	1,760
Comprehensive income excluding noncontrolling interests	$	1,825		$	2,422		$	2,138		$	(4,560	)	$	1,825

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Quarter Ended June 30, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—	$	—		$	15,271		$	(42	)	$	15,229
Costs and expenses
Operating expenses	—		—			(8,348		)	—			(8,348		)
Selling, general, administrative and other	—		(160		)	(2,053		)	—			(2,213		)
Depreciation and amortization	—		(1		)	(743		)	—			(744		)
Total costs and expenses	—		(161		)	(11,144		)	—			(11,305		)
Restructuring and impairment charges	—					—			—			—
Allocations to non-guarantor subsidiaries	—		150			(150		)	—			—
Other income/(expense), net	—		113			(155		)	42			—
Interest income/(expense), net	—		(179		)	36			—			(143		)
Equity in the income (loss) of investees, net	—		—			73			—			73
Income before taxes	—		(77		)	3,931			—			3,854
Income taxes	—		13			(808		)	—			(795		)
Earnings from subsidiary entities	—		2,980			—			(2,980		)	—
Net income	—		2,916			3,123			(2,980		)	3,059
Less: Net income attributable to noncontrolling interests	—		—			(143		)	—			(143		)
Net income excluding noncontrolling interests	$	—	$	2,916		$	2,980		$	(2,980	)	$	2,916
Comprehensive income excluding noncontrolling interests	$	—	$	2,999		$	2,756		$	(2,756	)	$	2,999

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months Ended June 29, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—		$	—		$	50,320		$	150		$	50,470
Costs and expenses
Operating expenses	—			—			(30,196		)	—			(30,196		)
Selling, general, administrative and other	—			(492		)	(7,352		)	—			(7,844		)
Depreciation and amortization	—			(1		)	(2,863		)	—			(2,864		)
Total costs and expenses	—			(493		)	(40,411		)	—			(40,904		)
Restructuring and impairment charges	—			—			(869		)	—			(869		)
Allocations to non-guarantor subsidiaries	—			450			(450		)	—			—
Other income/(expense), net	43			102			4,845			(150		)	4,840
Interest income/(expense), net	(346		)	(535		)	264			—			(617		)
Equity in the income (loss) of investees, net	—			—			(234		)	—			(234		)
Income from continuing operations before income taxes	(303		)	(476		)	13,465			—			12,686
Income taxes from continuing operations	63			96			(2,846		)	—			(2,687		)
Earnings from subsidiary entities	1,821			11,487			—			(13,308		)	—
Net income from continuing operations	1,581			11,107			10,619			(13,308		)	9,999
Income (loss) from discontinued operations	380			—			380			(380		)	380
Net income	1,961			11,107			10,999			(13,688		)	10,379
Less: Net income from continuing operations attributable to noncontrolling interests	—			—			(343		)	—			(343		)
Less: Net income from discontinued operations attributable to noncontrolling interests	—			—			(36		)	—			(36		)
Net income excluding noncontrolling interests	$	1,961		$	11,107		$	10,620		$	(13,688	)	$	10,000
Comprehensive income excluding noncontrolling interests	$	2,026		$	11,138		$	10,623		$	(13,705	)	$	10,082

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months Ended June 30, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
Revenues	$	—	$	—		$	45,224		$	(96	)	$	45,128
Costs and expenses
Operating expenses	—		—			(24,618		)	—			(24,618		)
Selling, general, administrative and other	—		(445		)	(6,094		)	—			(6,539		)
Depreciation and amortization	—		(1		)	(2,216		)	—			(2,217		)
Total costs and expenses	—		(446		)	(32,928		)	—			(33,374		)
Restructuring and impairment charges	—		—			(28		)	—			(28		)
Allocations to non-guarantor subsidiaries	—		416			(416		)	—			—
Other income/(expense), net	—		(14		)	12			96			94
Interest income/(expense), net	—		(493		)	78			—			(415		)
Equity in the income (loss) of investees, net	—		—			122			—			122
Income before taxes	—		(537		)	12,064			—			11,527
Income taxes	—		47			(927		)	—			(880		)
Earnings from subsidiary entities	—		10,766			—			(10,766		)	—
Net income	—		10,276			11,137			(10,766		)	10,647
Less: Net income attributable to noncontrolling interests	—		—			(371		)	—			(371		)
Net income excluding noncontrolling interests	$	—	$	10,276		$	10,766		$	(10,766	)	$	10,276
Comprehensive income excluding noncontrolling interests	$	—	$	10,542		$	10,683		$	(10,683	)	$	10,542

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 29, 2019

(unaudited; in millions)

	TWDC		Legacy Disney		Non-Guarantor Subsidiaries		Reclassifications & Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	752	$	—	$	5,976	$	—		$	6,728
Receivables, net	434		—		15,240		(1		)	15,673
Inventories	—		4		1,512		—			1,516
Television costs and advances	—		—		4,526		—			4,526
Other current assets	99		8		928		—			1,035
Assets held for sale	—		—		1,892		—			1,892
Total current assets	1,285		12		30,074		(1		)	31,370
Film and television costs	—		—		22,552		—			22,552
Investments in subsidiaries	127,471		279,884		—		(407,355		)	—
Other investments	—		—		3,872		—			3,872
Parks, resorts and other property, net	—		10		31,382		—			31,392
Intangible assets, net	—		—		25,114		—			25,114
Goodwill	—		—		77,801		—			77,801
Noncurrent assets held for sale	—		—		12,591		—			12,591
Intercompany receivables	4,001		—		134,412		(138,413		)	—
Other assets	311		501		4,479		(508		)	4,783
Total assets	$	133,068	$	280,407	$	342,277	$	(546,277	)	$	209,475
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities	$	1,905	$	267	$	15,476	$	(1	)	$	17,647
Current portion of borrowings	19,014		2,757		152		—			21,923
Deferred revenues and other	16		37		4,880		(203		)	4,730
Liabilities held for sale	—		—		293		—			293
Total current liabilities	20,935		3,061		20,801		(204		)	44,593
Non-current liabilities
Borrowings	$	20,319	$	13,770	$	2,222	$	—		$	36,311
Deferred income taxes	—		—		10,709		(305		)	10,404
Noncurrent liabilities held for sale	—		—		2,353		—			2,353
Other long-term liabilities	860		2,175		7,526		—			10,561
Intercompany payables	482		133,930		4,001		(138,413		)	—
Total non-current liabilities	21,661		149,875		26,811		(138,718		)	59,629
Redeemable noncontrolling interests	—		—		8,897		—			8,897
Total Disney Shareholders’ equity	90,472		127,471		279,884		(407,355		)	90,472
Noncontrolling interests	—		—		5,884		—			5,884
Total equity	90,472		127,471		285,768		(407,355		)	96,356
Total liabilities and equity	$	133,068	$	280,407	$	342,277	$	(546,277	)	$	209,475

CONDENSED CONSOLIDATING BALANCE SHEET

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	—		149,880		—		(149,880		)	—
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	—		—		79,793		(79,793		)	—
Other assets	—		911		3,178		(724		)	3,365
Total assets	$	—	$	152,481	$	176,514	$	(230,397	)	$	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	—		79,793		—		(79,793		)	—
Total non-current liabilities	—		99,154		8,146		(80,517		)	26,783
Redeemable noncontrolling interests	—		—		1,123		—			1,123
Total Disney Shareholders’ equity	—		48,773		149,880		(149,880		)	48,773
Noncontrolling interests	—		—		4,059		—			4,059
Total equity	—		48,773		153,939		(149,880		)	52,832
Total liabilities and equity	$	—	$	152,481	$	176,514	$	(230,397	)	$	98,598

Condensed Consolidating Statements of Cash Flow

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended June 29, 2019

(unaudited; in millions)

	TWDC			Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
OPERATING ACTIVITIES
Cash provided by operations	$	133		$	(1,170	)	$	5,463		$	(160	)	$	4,266
INVESTING ACTIVITIES
Investments in parks, resorts and other property	—			—			(3,567		)	—			(3,567		)
Acquisitions	(35,702		)	—			25,801			—			(9,901		)
Intercompany investing activities, net	16,400			(11		)	(1,014		)	(15,375		)	—
Other	—			—			(317		)	—			(317		)
Cash used in investing activities	(19,302		)	(11		)	20,903			(15,375		)	(13,785		)
FINANCING ACTIVITIES
Commercial paper, net	3,983			(1,010		)	—			—			2,973
Borrowings	31,100			—			248			—			31,348
Reduction of borrowings	(16,100		)	(2,250		)	(689		)	—			(19,039		)
Dividends	—			(1,310		)	—			—			(1,310		)
Repurchases of common stock	—			—			—			—			—
Proceeds from exercise of stock options	194			84			—			—			278
Intercompany financing, net	805			4,552			(20,892		)	15,535			—
Contributions from / sales of noncontrolling interest	—			—			544			—			544
Acquisition of noncontrolling and redeemable noncontrolling interests	—			—			(1,430		)	—			(1,430		)
Other	(61		)	(252		)	(518		)	—			(831		)
Cash used in financing activities	19,921			(186		)	(22,737		)	15,535			12,533
Discontinued operations	—			—			141			—			141
Impact of exchange rates on cash, cash equivalents and restricted cash	—			—			47			—			47
Change in cash, cash equivalents and restricted cash	752			(1,367		)	3,817			—			3,202
Cash, cash equivalents and restricted cash, beginning of year	—			1,367			2,788			—			4,155
Cash, cash equivalents and restricted cash, end of period	$	752		$	—		$	6,605		$	—		$	7,357

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended June 30, 2018

(unaudited; in millions)

	TWDC		Legacy Disney			Non-Guarantor Subsidiaries			Reclassifications & Eliminations			Total
OPERATING ACTIVITIES
Cash provided by operations	$	—	$	250		$	10,298		$	(106	)	$	10,442
INVESTING ACTIVITIES
Investments in parks, resorts and other property	—		(2		)	(3,262		)	—			(3,264		)
Acquisitions	—		—			(1,581		)	—			(1,581		)
Intercompany investing activities, net	—		(1,601		)	—			1,601			—
Other	—		—			(298		)	—			(298		)
Cash used in investing activities	—		(1,603		)	(5,141		)	1,601			(5,143		)
FINANCING ACTIVITIES
Commercial paper, net	—		453			—			—			453
Borrowings	—		997			59			—			1,056
Reduction of borrowings	—		(1,300		)	(56		)	—			(1,356		)
Dividends	—		(1,266		)	(106		)	106			(1,266		)
Repurchases of common stock	—		(3,577		)	—			—			(3,577		)
Intercompany financing, net	—		6,116			(4,515		)	(1,601		)	—
Proceeds from exercise of stock options	—		129			—			—			129
Contributions from / sales of noncontrolling interest	—		—			363			—			363
Other	—		(221		)	(562		)	—			(783		)
Cash used in financing activities	—		1,331			(4,817		)	(1,495		)	(4,981		)
Impact of exchange rates on cash, cash equivalents and restricted cash	—		—			(51		)	—			(51		)
Change in cash, cash equivalents and restricted cash	—		(22		)	289			—			267
Cash, cash equivalents and restricted cash, beginning of year	—		693			3,371			—			4,064
Cash, cash equivalents and restricted cash, end of period	$	—	$	671		$	3,660		$	—		$	4,331