Cash, Cash Equivalents, Restricted Cash and Borrowings

3 Months Ended

Jan. 01, 2022

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 Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows.

	January 1, 2022		October 2, 2021
Cash and cash equivalents	$	14,444	$	15,959
Restricted cash included in:
Other current assets	3		3
Other assets	41		41
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	14,488	$	16,003

Borrowings

During the quarter ended January 1, 2022, the Company’s borrowing activity was as follows: 

	October 2, 2021		Borrowings		Payments		Other Activity		January 1, 2022
Commercial paper with original maturities greater than three months	$	1,992	$	200	$	(324)	$	2	$	1,870
U.S. dollar denominated notes(1)	49,090		—		—		(34)		49,056
Asia Theme Parks borrowings(2)	1,331		33		—		27		1,391
Foreign currency denominated debt and other(3)	1,993		—		—		(178)		1,815
	$	54,406	$	233	$	(324)	$	(183)	$	54,132

(1)The other activity is primarily due to the amortization of purchase price adjustments on debt assumed in the TFCF acquisition and debt issuance fees.

(2)The other activity is driven by the impact of changes in foreign currency exchange rates.

(3)The other activity is due to market value adjustments for debt with qualifying hedges.

At January 1, 2022, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows:

	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring March 2022	$	5,250	$	—	$	5,250
Facility expiring March 2023	4,000		—		4,000
Facility expiring March 2025	3,000		—		3,000
Total	$	12,250	$	—	$	12,250

The facilities expiring in March 2023 and March 2025 allow for borrowings at LIBOR-based rates plus a spread depending on the credit default swap spread applicable to the Company’s debt, or a fixed spread in the case of the facility expiring in March 2022, subject to a cap and floor that vary with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR can range from 0.18% to 1.63%. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The bank facilities contain only one financial covenant, which is interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On January 1, 2022 the financial covenant was met 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 January 1, 2022, the Company has $1.4 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 up to 80% of the contract price of three new cruise ships, which are scheduled to be delivered in 2022, 2024 and 2025. Under the facilities, $1.0 billion in financing is available as of October 2021, $1.1 billion is available beginning in August 2023 and $1.1 billion is available beginning in August 2024. Each tranche of financing may be utilized for a period of 18 months from the initial availability date. If utilized, the interest rates will be fixed at 3.48%, 3.80% and 3.74%, respectively, and the loan 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 (net of amounts capitalized), 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:

	Quarter Ended
	January 1, 2022		January 2, 2021
Interest expense	$	(361)	$	(404)
Interest and investment income	34		113
Net periodic pension and postretirement benefit costs (other than service costs)	16		(33)
Interest expense, net	$	(311)	$	(324)

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