XML 24 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Revenues
 6 Months Ended
Apr. 03, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer RevenuesThe Company has revenue recognition policies for its various operating segments that are appropriate to the circumstances of each business.
The following table presents our revenues by segment and major source:
Quarter Ended April 3, 2021Quarter Ended March 28, 2020
Disney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidatedDisney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidated
Affiliate fees$4,594$— $4,594 $4,529 $— $4,529 
Advertising2,5821 2,583 2,788 1 2,789 
Subscription fees3,000— 3,000 1,796 — 1,796 
Theme park admissions—597 597 — 1,554 1,554 
Resort and vacations—514 514 — 1,377 1,377 
Retail and wholesale sales of merchandise, food and beverage—911    911    —    1,584 1,584 
TV/SVOD distribution licensing1,624— 1,624 1,665 —    1,665    
Theatrical distribution licensing109— 109 603 — 603 
Merchandise licensing5791 796 8 708 716 
Home entertainment219— 219 489 — 489 
Other307359 666 487 436 923 
$12,440$3,173 $15,613 $12,365 $5,660 $18,025 
x
Six Months Ended April 3, 2021Six Months Ended March 28, 2020
Disney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidatedDisney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidated
Affiliate fees$8,996$— $8,996 $8,969 $— $8,969 
Advertising6,3452 6,347 6,184 3 6,187 
Subscription fees5,546— 5,546 3,122 — 3,122 
Theme park admissions—1,146 1,146 — 3,621 3,621 
Resort and vacations—946 946 — 3,008 3,008 
Retail and wholesale sales of merchandise, food and beverage—2,074    2,074    —    3,897 3,897 
TV/SVOD distribution licensing2,793— 2,793 3,234 —    3,234    
Theatrical distribution licensing140— 140 2,011 — 2,011 
Merchandise licensing101,881 1,891 16 1,756 1,772 
Home entertainment519— 519 1,085 — 1,085 
Other752712 1,464 1,041 955 1,996 
$25,101$6,761 $31,862 $25,662 $13,240 $38,902 
The following table presents our revenues by segment and primary geographical markets:
Quarter Ended April 3, 2021Quarter Ended March 28, 2020
Disney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidatedDisney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidated
Americas$10,293 $2,414 $12,707 $9,962 $4,681 $14,643 
Europe1,219    267    1,486    1,338    546    1,884    
Asia Pacific928 492 1,420 1,065 433 1,498 
Total revenues$12,440 $3,173 $15,613 $12,365 $5,660 $18,025 

Six Months Ended April 3, 2021Six Months Ended March 28, 2020
Disney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidatedDisney
Media and Entertainment
Distribution		Disney Parks, Experiences and ProductsConsolidated
Americas$20,584 $4,870 $25,454 $20,379 $10,559 $30,938 
Europe2,512    754    3,266    2,901    1,479    4,380    
Asia Pacific2,005 1,137 3,142 2,382 1,202 3,584 
Total revenues$25,101 $6,761 $31,862 $25,662 $13,240 $38,902 
Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on TV/SVOD and theatrical distribution licensee sales on titles made available to the licensee in previous reporting periods. For the quarter ended April 3, 2021, $0.4 billion was recognized related to performance obligations satisfied as of January 2, 2021. For the six months ended April 3, 2021, $0.7 billion was recognized related to performance obligations satisfied as of October 3, 2020. For the quarter ended March 28, 2020, $0.7 billion was recognized related to performance obligations satisfied as of December 28, 2019. For the six months ended March 28, 2020, $0.8 billion was recognized related to performance obligations satisfied as of September 28, 2019.
As of April 3, 2021, revenue for unsatisfied performance obligations expected to be recognized in the future is $15 billion, which primarily relates to content to be delivered in the future under existing agreements with television station affiliates and TV/SVOD licensees. Of this amount, we expect to recognize approximately $4 billion in the remainder of fiscal 2021, $5 billion in fiscal 2022, $3 billion in fiscal 2023 and $3 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee.
When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears is recognized as accounts receivable. Deferred revenues are recognized as (or when) the Company performs under the contract. Contract assets, accounts receivable and deferred revenues from contracts with customers are as follows:
April 3,
2021		October 3,
2020
Contract assets$134 $70 
Accounts receivable
Current11,087   11,340   
Non-current1,643 1,789 
Allowance for credit losses(271)(460)
Deferred revenues
Current3,995 3,688 
Non-current582 513 
Contract assets primarily relate to certain multi-season TV/SVOD licensing contracts. Activity for the current and prior-year quarters related to contract assets was not material. The allowance for credit losses decreased from $460 million at October 3, 2020 to $271 million at April 3, 2021 primarily due to the adoption of new accounting guidance on the measurement of credit losses (see Note 16).
For the quarter and six months ended April 3, 2021, the Company recognized revenues of $0.6 billion and $2.1 billion, respectively, primarily related to licensing and publishing advances and content sales included in the deferred revenue balance at October 3, 2020. For the quarter and six months ended March 28, 2020, the Company recognized revenues of $0.8 billion and $2.9 billion, respectively, primarily related to theme park admissions, vacation packages and licensing advances included in the deferred revenue balance at September 28, 2019.
We evaluate our allowance for credit losses and estimate collectability of current and non-current accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, including COVID-19, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods.
The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights and vacation club properties. These receivables are discounted to present value at contract inception and the related revenues are recognized at the discounted amount.
The balance of film and television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $1.1 billion as of April 3, 2021. The activity in the allowance for credit losses for the quarter and six-month period ended April 3, 2021 was not material.
The balance of mortgage receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $0.7 billion as of April 3, 2021. The activity in the allowance for credit losses for the quarter and six-month period ended April 3, 2021 was not material.