Restructuring and Impairment Charges

12 Months Ended

Sep. 28, 2019

Restructuring and Related Activities [Abstract]

The Company has begun implementing a restructuring and integration plan as a part of its initiative to realize cost synergies from the acquisition of TFCF. During fiscal 2019, we recorded charges of $1.2 billion, including $0.9 billion of severance and related costs in connection with the plan and $0.3 billion of equity based compensation costs, primarily for TFCF awards that were accelerated to vest upon the closing of the TFCF acquisition. These charges are recorded in “Restructuring and impairment charges” in the Consolidated Statements of Income. Although our plans are not yet finalized, we anticipate that the total severance and related costs could be on the order of $1.5 billion. The Company may incur other restructuring costs, such as contract termination costs, but we currently expect these will not be material. We currently expect to substantially complete the restructuring plan by the end of fiscal 2021. For fiscal 2018 and 2017, restructuring and impairment charges were not material.

The following table summarizes the changes in restructuring reserves related to the TFCF integration plan for fiscal 2019:



	One-time Termination Benefits			Contract Termination			Total
Beginning Balance:	$	—		$	—		$	—
Additions:
Media Networks	57			33			90
Parks, Experiences and Products	8			3			11
Studio Entertainment	123			74			197
Direct-to-Consumer & International	349			77			426
Corporate	133			49			182
Total Additions	670			236			906
Payments	(193		)	(37		)	(230		)
Ending Balance:	$	477		$	199		$	676