Cash, Cash Equivalents, Restricted Cash and Borrowings

3 Months Ended

Dec. 28, 2019

Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings

Cash, Cash Equivalents, Restricted Cash and Borrowings

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheet to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows.


	December 28, 2019		September 28, 2019
Cash and cash equivalents	$	6,833	$	5,418
Restricted cash included in:
Other current assets	1		26
Other assets	40		11

Total cash, cash equivalents and restricted cash in the statement of cash flows	$	6,874	$	5,455

Borrowings

During the quarter ended December 28, 2019, the Company’s borrowing activity was as follows:


	September 28, 2019		Borrowings		Payments		Other Activity		December 28, 2019
Commercial paper with original maturities less than three months⁽¹⁾	$	1,934	$	—	$	(1,145)	$	30	$	819
Commercial paper with original maturities greater than three months	3,408		2,935		(618)		(10)		5,715
U.S. dollar denominated notes	39,424		—		(8)		(36)		39,380


Asia Theme Parks borrowings	1,114		—		—		32		1,146
Foreign currency denominated debt and other⁽²⁾	1,106		51		(38)		(104)		1,015
	$	46,986	$	2,986	$	(1,809)	$	(88)	$	48,075

⁽¹⁾Borrowings and reductions of borrowings are reported net.

⁽²⁾The other activity is due to market value adjustments for debt with qualifying hedges, partially offset by the impact of changes in foreign currency exchange rates.

The Company has bank facilities with a syndicate of lenders to support commercial paper borrowings as follows:


	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring March 2020	$	6,000	$	—	$	6,000
Facility expiring March 2021	2,250		—		2,250
Facility expiring March 2023	4,000		—		4,000
Total	$	12,250	$	—	$	12,250

All of the above bank facilities allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, subject to a cap and floor that vary with the Company’s debt rating assigned by Moody’s Investors Service and Standard & Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants, or events of default

and contain only one financial covenant relating to interest coverage, which the Company met on December 28, 2019 by a significant margin. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2023, which if utilized, reduces available borrowings under this facility. As of December 28, 2019, the Company has $1.1 billion of outstanding letters of credit, of which none were issued under this facility.

Cruise Ship Credit Facilities

The Company has credit facilities to finance three new cruise ships, which are expected to be delivered in 2021, 2022 and 2023. The financings may be used for up to 80% of the contract price of the cruise ships. Under the agreements, $1.0 billion in financing is available beginning in April 2021, $1.1 billion is available beginning in May 2022 and $1.1 billion is available beginning in April 2023. If utilized, the interest rates will be fixed at 3.48%, 3.72% and 3.74%, respectively, and the loans and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees.

Interest expense, net

Interest expense, interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following (net of capitalized interest):


	Quarter Ended
	December 28, 2019		December 29, 2018
Interest expense	$	(362)	$	(163)
Interest and investment income	76		75
Net periodic pension and postretirement benefit costs (other than service costs)	3		25
Interest expense, net	$	(283)	$	(63)

Interest and investment income includes gains and losses on publicly and non-publicly traded investments, investment impairments and interest earned on cash and cash equivalents and certain receivables.