New Accounting Pronouncements New Accounting Pronouncements

12 Months Ended

Sep. 28, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

New Accounting Pronouncements

Accounting Pronouncements Adopted in Fiscal 2019

• Revenues from Contracts with Customers - See Note 3

• Intra-Entity Transfers of Assets Other Than Inventory - See Note 10

• Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - See Note 11

• Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - See Note 12

• Recognition and Measurement of Financial Assets and Liabilities - See Note 12

• Targeted Improvements to Accounting for Hedging Activities - The adoption of the new guidance did not have a material impact on our consolidated financial statements

Leases

In February 2016, the FASB issued new lease accounting guidance, which requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. The guidance is effective at the beginning of the Company’s 2020 fiscal year. We are adopting the guidance without restating prior periods and by applying practical expedients in the guidance that allow us to not reassess prior conclusions concerning whether:

• Arrangements contain a lease

• The Company’s lease arrangements are operating or capital leases (financing)

• Initial direct costs should be capitalized

• Existing land easements are leases

The Company estimates the adoption of the new guidance will result in the recognition of right-of-use assets and lease liabilities for our operating leases of approximately $4 billion. Additionally, the Company will reclassify a deferred gain of approximately $350 million related to a prior sale-leaseback transaction to retained earnings upon adoption.

Improvements to Accounting for Costs of Films and License Agreements for Program Materials

In March 2019, the FASB updated guidance for the accounting for film and television content costs. The new guidance impacts the capitalization, amortization and impairment of these costs as follows:

• Eliminates the limitation on capitalization of production costs for episodic content, aligning the capitalization model with film content;

• Requires production costs that are being amortized based on estimated usage to be reviewed and updated each reporting period, with any changes in estimated usage applied prospectively; and

• Requires produced and acquired programming costs to be tested for impairment using the lowest level of identifiable cash flows based on the predominant monetization strategy for the content (i.e., monetized individually or in a group)

We currently do not expect the new guidance will have a material impact on our financial statements. The guidance is effective at the beginning of the Company’s 2021 fiscal year (with early adoption permitted) and requires prospective adoption. The Company plans to adopt the new guidance in fiscal 2020.