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Income Taxes (Tables)

12 Months Ended

Oct. 02, 2021


Income (Loss) Before Income Taxes	2021		2020		2019

Domestic (including U.S. exports)	$	5,241	$	4,706	$	12,389
Foreign subsidiaries(1)	(2,680)		(6,449)		1,534
Total income (loss) from continuing operations	2,561		(1,743)		13,923
Income (loss) from discontinued operations	(38)		(42)		726
	$	2,523	$	(1,785)	$	14,649

(1) Includes goodwill and intangible asset impairment in fiscal 2020.

Income Tax Expense (Benefit)


Income Tax Expense (Benefit)
Current	2021		2020		2019
Federal	$	594	$	95	$	14
State	129		148		112
Foreign(1)	554		731		824
	1,277		974		950
Deferred
Federal	(526)		279		1,829
State	(220)		(29)		259
Foreign	(506)		(525)		(12)
	(1,252)		(275)		2,076
Income tax expense from continuing operations	25		699		3,026
Income tax expense from discontinued operations	(9)		(10)		39
	$	16	$	689	$	3,065

(1)Includes foreign withholding taxes.

Schedule of Deferred Tax Assets and Liabilities


Components of Deferred Tax (Assets) and Liabilities	October 2, 2021		October 3, 2020

Deferred tax assets
Net operating losses and tax credit carryforwards(1)	$	(3,944)	$	(3,137)
Accrued liabilities	(2,544)		(2,952)
Lease liabilities	(764)		(825)
Licensing revenues	(202)		—
Other	(725)		(652)
Total deferred tax assets	(8,179)		(7,566)
Deferred tax liabilities
Depreciable, amortizable and other property	7,916		8,256
Investment in U.S. entities	2,775		2,514
Right-of-use assets	697		740
Licensing revenues	—		189
Investment in foreign entities	392		266

Other	164		150
Total deferred tax liabilities	11,944		12,115
Net deferred tax liability before valuation allowance	3,765		4,549
Valuation allowance	2,795		2,410
Net deferred tax liability	$	6,560	$	6,959

(1)Balances as of October 2, 2021 and October 3, 2020 include approximately $1.6 billion and $1.4 billion, respectively, of International Theme Park net operating losses and approximately $1.0 billion and $0.7 billion, respectively of foreign tax credits in the U.S. The International Theme Park net operating losses are primarily in France and, to a lesser extent, Hong Kong and China. Losses in France and Hong Kong have an indefinite carryforward period and losses in China have a five-year carryforward period. China theme park net operating losses of $0.1 billion may expire between fiscal 2022 and fiscal 2027. Foreign tax credits in the U.S. have a ten-year carryforward period. Foreign tax credits of $1.0 billion may expire beginning fiscal 2028.

Summary of Valuation Allowance

The following table details the change in valuation allowance for fiscal 2021, 2020 and 2019 (in billions):


	Balance at Beginning of Period		Charges to Tax Expense(1)		Changes Due to TFCF Acquisition		Balance at End of Period
Year ended October 2, 2021	$	2.4	$	0.4	$	—	$	2.8
Year ended October 3, 2020	1.9		0.6		(0.1)		2.4
Year ended September 28, 2019	1.4		(0.1)		0.6		1.9

(1) Charges to tax expense in fiscal 2021 and fiscal 2020 are primarily due to International Theme Parks net operating losses.

Reconciliation of Effective Income Tax Rate to Federal Rate


	2021		2020(1)		2019
Federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.9		4.3		1.9
Tax rate differential on foreign income	12.0		(16.5)		0.3
Foreign derived intangible income	(6.4)		—		(1.1)

Excess tax benefits from equity awards	(5.3)		3.7		(0.3)
Legislative changes	(12.2)		4.4		(0.3)
Income tax audits and reserves	(4.8)		(6.1)		(0.6)
Goodwill impairment	—		(41.1)		—
Valuation allowance	2.6		(14.6)		0.1
Other	(7.8)		4.8		0.7
	1.0	%	(40.1	%)	21.7	%

(1)In fiscal 2020, the Company had a pre-tax loss. Positive amounts reflect tax benefits, whereas negative amounts reflect tax expense.

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows:


	2021		2020		2019
Balance at the beginning of the year	$	2,740	$	2,952	$	648
Increases due to acquisitions	—		34		2,728
Increases for current year tax positions	51		26		84
Increases for prior year tax positions	556		134		143
Decreases in prior year tax positions	(174)		(99)		(61)
Settlements with taxing authorities	(532)		(307)		(590)
Balance at the end of the year	$	2,641	$	2,740	$	2,952