false2023Q1WALT DISNEY CO/0001744489--09-30—140.010.014.64.61.81.819190.60.6These facilities allow for borrowings at SOFR-based rates plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s ranging from 0.755% to 1.225%.0.7551.2252023-03-312027-03-312025-03-312025-09-302028-12-312036-12-312036-12-31400017444892022-10-022022-12-3100017444892023-02-01xbrli:shares0001744489us-gaap:ServiceMember2022-10-022022-12-31iso4217:USD0001744489us-gaap:ServiceMember2021-10-032022-01-010001744489us-gaap:ProductMember2022-10-022022-12-310001744489us-gaap:ProductMember2021-10-032022-01-0100017444892021-10-032022-01-01iso4217:USDxbrli:shares00017444892022-12-3100017444892022-10-0100017444892021-10-0200017444892022-01-010001744489us-gaap:CommonStockMember2022-10-010001744489us-gaap:RetainedEarningsMember2022-10-010001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-010001744489us-gaap:TreasuryStockMember2022-10-010001744489us-gaap:ParentMember2022-10-010001744489us-gaap:NoncontrollingInterestMember2022-10-010001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2022-10-010001744489us-gaap:RetainedEarningsMember2022-10-022022-12-310001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-022022-12-310001744489us-gaap:ParentMember2022-10-022022-12-310001744489us-gaap:NoncontrollingInterestMember2022-10-022022-12-310001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2022-10-022022-12-310001744489us-gaap:CommonStockMember2022-10-022022-12-310001744489us-gaap:CommonStockMember2022-12-310001744489us-gaap:RetainedEarningsMember2022-12-310001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001744489us-gaap:TreasuryStockMember2022-12-310001744489us-gaap:ParentMember2022-12-310001744489us-gaap:NoncontrollingInterestMember2022-12-310001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2022-12-310001744489us-gaap:CommonStockMember2021-10-020001744489us-gaap:RetainedEarningsMember2021-10-020001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-020001744489us-gaap:TreasuryStockMember2021-10-020001744489us-gaap:ParentMember2021-10-020001744489us-gaap:NoncontrollingInterestMember2021-10-020001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2021-10-020001744489us-gaap:RetainedEarningsMember2021-10-032022-01-010001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-032022-01-010001744489us-gaap:ParentMember2021-10-032022-01-010001744489us-gaap:NoncontrollingInterestMember2021-10-032022-01-010001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2021-10-032022-01-010001744489us-gaap:CommonStockMember2021-10-032022-01-010001744489us-gaap:CommonStockMember2022-01-010001744489us-gaap:RetainedEarningsMember2022-01-010001744489us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-010001744489us-gaap:TreasuryStockMember2022-01-010001744489us-gaap:ParentMember2022-01-010001744489us-gaap:NoncontrollingInterestMember2022-01-010001744489dis:TotalexcludingredeemablenoncontrollinginterestMember2022-01-010001744489dis:HuluLLCMember2022-12-31xbrli:pure0001744489dis:HuluLLCMemberdis:EquityInterestHeldbyNBCUniversalMember2022-12-310001744489dis:HuluLLCMemberdis:EquityInterestHeldbyNBCUniversalMember2019-05-130001744489dis:MLBMemberdis:BAMTechLLCMember2022-10-010001744489dis:MLBMemberdis:BAMTechLLCMember2022-11-300001744489dis:MLBMemberdis:BAMTechLLCMember2022-11-302022-11-300001744489dis:DisneyMediaAndEntertainmentDistributionMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMember2021-10-032022-01-010001744489dis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489dis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489dis:TotalSegmentsMember2022-10-022022-12-310001744489dis:TotalSegmentsMember2021-10-032022-01-010001744489dis:TFCFandHuluMember2022-10-022022-12-310001744489dis:TFCFandHuluMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMember2022-10-010001744489dis:DisneyParksExperiencesAndProductsMember2022-10-010001744489dis:DisneyMediaAndEntertainmentDistributionMember2022-12-310001744489dis:DisneyParksExperiencesAndProductsMember2022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:AffiliatefeesMember2022-10-022022-12-310001744489dis:AffiliatefeesMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:AffiliatefeesMember2021-10-032022-01-010001744489dis:AffiliatefeesMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:SubscriptionFeesMember2022-10-022022-12-310001744489dis:SubscriptionFeesMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:SubscriptionFeesMember2021-10-032022-01-010001744489dis:SubscriptionFeesMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:AdvertisingMember2022-10-022022-12-310001744489us-gaap:AdvertisingMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489us-gaap:AdvertisingMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:AdvertisingMember2021-10-032022-01-010001744489us-gaap:AdvertisingMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489us-gaap:AdvertisingMember2021-10-032022-01-010001744489dis:DisneyParksExperiencesAndProductsMemberus-gaap:AdmissionMember2022-10-022022-12-310001744489us-gaap:AdmissionMember2022-10-022022-12-310001744489dis:DisneyParksExperiencesAndProductsMemberus-gaap:AdmissionMember2021-10-032022-01-010001744489us-gaap:AdmissionMember2021-10-032022-01-010001744489dis:DisneyParksExperiencesAndProductsMemberdis:ResortandvacationsMember2022-10-022022-12-310001744489dis:ResortandvacationsMember2022-10-022022-12-310001744489dis:DisneyParksExperiencesAndProductsMemberdis:ResortandvacationsMember2021-10-032022-01-010001744489dis:ResortandvacationsMember2021-10-032022-01-010001744489dis:RetailandwholesalesalesofmerchandisefoodandbeverageMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489dis:RetailandwholesalesalesofmerchandisefoodandbeverageMember2022-10-022022-12-310001744489dis:RetailandwholesalesalesofmerchandisefoodandbeverageMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489dis:RetailandwholesalesalesofmerchandisefoodandbeverageMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:LicenseMember2022-10-022022-12-310001744489us-gaap:LicenseMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489us-gaap:LicenseMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:LicenseMember2021-10-032022-01-010001744489us-gaap:LicenseMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489us-gaap:LicenseMember2021-10-032022-01-010001744489dis:TVSVODdistributionlicensingMemberdis:DisneyMediaAndEntertainmentDistributionMember2022-10-022022-12-310001744489dis:TVSVODdistributionlicensingMember2022-10-022022-12-310001744489dis:TVSVODdistributionlicensingMemberdis:DisneyMediaAndEntertainmentDistributionMember2021-10-032022-01-010001744489dis:TVSVODdistributionlicensingMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:TheatricaldistributionlicensingMember2022-10-022022-12-310001744489dis:TheatricaldistributionlicensingMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:TheatricaldistributionlicensingMember2021-10-032022-01-010001744489dis:TheatricaldistributionlicensingMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:EntertainmentMember2022-10-022022-12-310001744489us-gaap:EntertainmentMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberus-gaap:EntertainmentMember2021-10-032022-01-010001744489us-gaap:EntertainmentMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:OtherRevenueMember2022-10-022022-12-310001744489dis:OtherRevenueMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489dis:OtherRevenueMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMemberdis:OtherRevenueMember2021-10-032022-01-010001744489dis:OtherRevenueMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489dis:OtherRevenueMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMembersrt:AmericasMember2022-10-022022-12-310001744489srt:AmericasMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489srt:AmericasMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMembersrt:AmericasMember2021-10-032022-01-010001744489srt:AmericasMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489srt:AmericasMember2021-10-032022-01-010001744489srt:EuropeMemberdis:DisneyMediaAndEntertainmentDistributionMember2022-10-022022-12-310001744489srt:EuropeMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489srt:EuropeMember2022-10-022022-12-310001744489srt:EuropeMemberdis:DisneyMediaAndEntertainmentDistributionMember2021-10-032022-01-010001744489srt:EuropeMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489srt:EuropeMember2021-10-032022-01-010001744489dis:DisneyMediaAndEntertainmentDistributionMembersrt:AsiaPacificMember2022-10-022022-12-310001744489srt:AsiaPacificMemberdis:DisneyParksExperiencesAndProductsMember2022-10-022022-12-310001744489srt:AsiaPacificMember2022-10-022022-12-310001744489dis:DisneyMediaAndEntertainmentDistributionMembersrt:AsiaPacificMember2021-10-032022-01-010001744489srt:AsiaPacificMemberdis:DisneyParksExperiencesAndProductsMember2021-10-032022-01-010001744489srt:AsiaPacificMember2021-10-032022-01-010001744489dis:ScenarioUnsatisfiedPerformanceObligationRecognizedInFiscal2023Member2022-12-310001744489dis:ScenarioUnsatisfiedPerformanceObligationRecognizedInFiscal2024Member2022-12-310001744489dis:ScenarioUnsatisfiedPerformanceObligationRecognizedInFiscal2025Member2022-12-310001744489dis:ScenarioUnsatisfiedperformanceobligationrecognizedthereafterMember2022-12-310001744489dis:ProgrammingRightsMember2022-12-310001744489us-gaap:MortgageReceivablesMember2022-12-310001744489dis:ProgrammingRightsMember2022-10-010001744489us-gaap:MortgageReceivablesMember2022-10-010001744489dis:DraftKingsMember2022-10-022022-12-310001744489dis:DraftKingsMember2021-10-032022-01-010001744489dis:CommercialPaperWithOriginalMaturitiesLessThanThreeMonthsMember2022-10-010001744489dis:CommercialPaperWithOriginalMaturitiesLessThanThreeMonthsMember2022-10-022022-12-310001744489dis:CommercialPaperWithOriginalMaturitiesLessThanThreeMonthsMember2022-12-310001744489dis:CommercialpaperwithoriginalmaturitiesgreaterthanthreemonthsMember2022-10-010001744489dis:CommercialpaperwithoriginalmaturitiesgreaterthanthreemonthsMember2022-10-022022-12-310001744489dis:CommercialpaperwithoriginalmaturitiesgreaterthanthreemonthsMember2022-12-310001744489us-gaap:MediumTermNotesMember2022-10-010001744489us-gaap:MediumTermNotesMember2022-10-022022-12-310001744489us-gaap:MediumTermNotesMember2022-12-310001744489dis:InternationalThemeParksMember2022-10-010001744489dis:InternationalThemeParksMember2022-10-022022-12-310001744489dis:InternationalThemeParksMember2022-12-310001744489dis:OtherForeignCurrencyDenominatedDebtMember2022-10-010001744489dis:OtherForeignCurrencyDenominatedDebtMember2022-10-022022-12-310001744489dis:OtherForeignCurrencyDenominatedDebtMember2022-12-310001744489dis:ExistingLineofCredit3Member2022-12-310001744489dis:ExistingLineOfCredit2Member2022-12-310001744489dis:ExistingLineofCredit1Member2022-12-310001744489us-gaap:LetterOfCreditMember2022-12-310001744489dis:CreditFacilityAvailableBeginningAugust2023Memberdis:DisneyCruiseLineMember2022-12-310001744489dis:CreditFacilityAvailableBeginningAugust2024Memberdis:DisneyCruiseLineMember2022-12-310001744489srt:MinimumMember2022-10-022022-12-310001744489srt:MaximumMember2022-10-022022-12-310001744489dis:ExistingLineofCredit3Member2022-10-022022-12-310001744489dis:ExistingLineofCredit1Member2022-10-022022-12-310001744489dis:ExistingLineOfCredit2Member2022-10-022022-12-310001744489dis:HongKongDisneylandMember2022-12-310001744489dis:ShanghaiDisneyResortMember2022-12-310001744489dis:BalanceSheetMember2022-10-022022-12-310001744489dis:AsiaInternationalThemeParksMember2022-12-310001744489dis:AsiaInternationalThemeParksMember2022-10-010001744489dis:IncomeStatementMember2022-10-022022-12-310001744489dis:InternationalThemeParksMember2022-10-022022-12-310001744489dis:AsiaInternationalThemeParksMember2022-10-022022-12-310001744489us-gaap:LoansMemberdis:HongKongDisneylandMember2022-10-022022-12-310001744489us-gaap:LoansMemberdis:HongKongDisneylandMemberdis:HIBORMember2022-10-022022-12-310001744489dis:HongKongDisneylandMemberus-gaap:LineOfCreditMember2022-10-022022-11-29iso4217:HKD0001744489dis:HongKongDisneylandMemberus-gaap:LineOfCreditMemberdis:HIBORMember2022-10-022022-12-310001744489dis:HongKongDisneylandMemberus-gaap:LineOfCreditMember2022-11-302022-11-300001744489dis:HongKongDisneylandMemberus-gaap:LineOfCreditMember2022-10-022022-12-310001744489dis:ShanghaiDisneyResortManagementCompanyMember2022-12-310001744489us-gaap:LoansMemberdis:ShanghaiDisneyResortMember2022-10-022022-12-310001744489us-gaap:LoansMemberdis:ShanghaiDisneyResortMembersrt:MaximumMember2022-12-310001744489dis:ShanghaiDisneyResortMemberus-gaap:LineOfCreditMember2022-10-022022-12-31iso4217:CNY0001744489dis:ShanghaiDisneyResortMemberus-gaap:LineOfCreditMember2022-12-310001744489us-gaap:LoansMemberdis:ShanghaiDisneyResortMemberdis:ShanghaiDisneyResortManagementCompanyMember2022-10-022022-12-310001744489dis:ShanghaiDisneyResortMemberus-gaap:LineOfCreditMemberdis:ShanghaiDisneyResortManagementCompanyMember2022-10-022022-12-310001744489dis:MonetizedIndividuallyMember2022-10-022022-12-310001744489dis:MonetizedIndividuallyMember2021-10-032022-01-010001744489dis:MonetizedAsAGroupMember2022-10-022022-12-310001744489dis:MonetizedAsAGroupMember2021-10-032022-01-010001744489us-gaap:PensionPlansDefinedBenefitMember2022-10-022022-12-310001744489us-gaap:PensionPlansDefinedBenefitMember2021-10-032022-01-010001744489us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-10-022022-12-310001744489us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-10-032022-01-010001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2022-10-010001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-010001744489us-gaap:AccumulatedTranslationAdjustmentMember2022-10-010001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2022-10-022022-12-310001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-022022-12-310001744489us-gaap:AccumulatedTranslationAdjustmentMember2022-10-022022-12-310001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2022-12-310001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001744489us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2021-10-020001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-020001744489us-gaap:AccumulatedTranslationAdjustmentMember2021-10-020001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2021-10-032022-01-010001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-032022-01-010001744489us-gaap:AccumulatedTranslationAdjustmentMember2021-10-032022-01-010001744489dis:AccumulatedNetGainLossFromMarketValueAdjustmentsMember2022-01-010001744489us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-010001744489us-gaap:AccumulatedTranslationAdjustmentMember2022-01-010001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-10-022022-12-310001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-10-032022-01-010001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-022022-12-310001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-032022-01-010001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2022-10-022022-12-310001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-10-032022-01-010001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-10-022022-12-310001744489us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-10-032022-01-010001744489us-gaap:EmployeeStockOptionMember2022-12-310001744489us-gaap:RestrictedStockUnitsRSUMember2022-12-310001744489us-gaap:EmployeeStockOptionMember2022-10-022022-12-310001744489us-gaap:RestrictedStockUnitsRSUMember2022-10-022022-12-310001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-10-010001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001744489us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:OtherCurrentAssetsMember2022-12-310001744489us-gaap:OtherAssetsMember2022-12-310001744489us-gaap:AccruedLiabilitiesMember2022-12-310001744489us-gaap:OtherLiabilitiesMember2022-12-310001744489us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-010001744489us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-10-010001744489us-gaap:OtherCurrentAssetsMember2022-10-010001744489us-gaap:OtherAssetsMember2022-10-010001744489us-gaap:AccruedLiabilitiesMember2022-10-010001744489us-gaap:OtherLiabilitiesMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-10-010001744489dis:CurrentPortionofBorrowingsMember2022-12-310001744489dis:CurrentPortionofBorrowingsMember2022-10-010001744489us-gaap:BorrowingsMember2022-12-310001744489us-gaap:BorrowingsMember2022-10-010001744489us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2022-10-022022-12-310001744489us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-10-032022-01-010001744489us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-12-31iso4217:CAD0001744489us-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-10-010001744489us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001744489us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-10-010001744489us-gaap:CostOfSalesMember2022-10-022022-12-310001744489us-gaap:CostOfSalesMember2021-10-032022-01-010001744489us-gaap:InterestExpenseMember2022-10-022022-12-310001744489us-gaap:InterestExpenseMember2021-10-032022-01-010001744489dis:IncomeTaxesMember2022-10-022022-12-310001744489dis:IncomeTaxesMember2021-10-032022-01-010001744489us-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310001744489us-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-10-010001744489dis:RussiaBusinessMember2022-10-022022-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2022
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
Commission File Number 001-38842
dis-20221231_g1.jpg
Delaware 83-0940635
State or Other Jurisdiction of I.R.S. Employer Identification
Incorporation or Organization
500 South Buena Vista Street
Burbank, California 91521
Address of Principal Executive Offices and Zip Code
(818) 560-1000
Registrant’s Telephone Number, Including Area Code
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueDISNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒Accelerated filer☐
Non-accelerated filer
☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒
There were 1,826,807,227 shares of common stock outstanding as of February 1, 2023.


Cautionary Note on Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may include statements concerning, among other things, financial results, business plans (including statements regarding new services and products and future expenditures, costs and investments), future liabilities, impairments and amortization, competition, and the impact of COVID-19 on our businesses and results of operations. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “would,” “should,” “expects,” “plans,” “could,” “intends,” “target,” “projects,” “believes,” “estimates,” “anticipates,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These statements reflect our current views with respect to future events and are based on assumptions as of the date of this report. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements.
Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations), our execution of our business plans (including the content we create and IP we invest in, our pricing decisions, our cost structure and our management and other personnel decisions) or other business decisions, as well as from developments beyond the Company’s control, including:
•further deterioration in domestic and global economic conditions;
•deterioration in or pressures from competitive conditions, including competition to create or acquire content and competition for talent;
•consumer preferences and acceptance of our content, offerings, pricing model and price increases and the market for advertising sales on our direct-to-consumer services and linear networks;
•health concerns and their impact on our businesses and productions;
•international, regulatory, legal, political, or military developments;
•technological developments;
•labor markets and activities;
•adverse weather conditions or natural disasters; and
•availability of content;
each such risk includes the current and future impacts of, and may be amplified by, COVID-19 and related mitigation efforts.
Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable):
•our operations, business plans or profitability;
•demand for our products and services;
•the performance of the Company’s content;
•our ability to create or obtain desirable content at or under the value we assign the content;
•the advertising market for programming;
•income tax expense; and
•performance of some or all Company businesses either directly or through their impact on those who distribute our products.
Additional factors include those described in our 2022 Annual Report on Form 10-K, including under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” in our subsequent quarterly reports on Form 10-Q, including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and in our subsequent filings with the Securities and Exchange Commission.
A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. You should not place undue reliance on the forward-looking statements. Unless required by federal securities laws, we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made.
2

PART I. FINANCIAL INFORMATION
Item 1: Financial Statements
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)
 Quarter Ended
 December 31,
2022		January 1,
2022
Revenues:
Services$20,997 $19,542 
Products2,515 2,277 
Total revenues23,512 21,819 
Costs and expenses:
Cost of services (exclusive of depreciation and amortization)
(14,781)(13,161)
Cost of products (exclusive of depreciation and amortization)
(1,605)(1,406)
Selling, general, administrative and other(3,827)(3,787)
Depreciation and amortization(1,306)(1,269)
Total costs and expenses(21,519)(19,623)
Restructuring and impairment charges(69)— 
Other expense, net(42)(436)
Interest expense, net(300)(311)
Equity in the income of investees191 239 
Income from continuing operations before income taxes1,773 1,688 
Income taxes on continuing operations(412)(488)
Net income from continuing operations1,361 1,200 
Loss from discontinued operations, net of income tax benefit of $0 and $14, respectively— (48)   
Net income1,361 1,152 
Net income from continuing operations attributable to noncontrolling interests
(82)(48)
Net income attributable to Disney$1,279    $1,104 
Earnings (loss) per share attributable to Disney(1):
Diluted
Continuing operations$0.70 $0.63 
Discontinued operations— (0.03)
$0.70 $0.60 
Basic
Continuing operations$0.70 $0.63 
Discontinued operations— (0.03)
$0.70 $0.61 
Weighted average number of common and common equivalent shares outstanding:
Diluted1,827 1,828 
Basic1,825 1,819 
(1)Total may not equal the sum of the column due to rounding.
See Notes to Condensed Consolidated Financial Statements
3

THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited; in millions)
 
 Quarter Ended
 December 31,
2022		January 1,
2022
Net income$1,361 $1,152 
Other comprehensive income (loss), net of tax:
Market value adjustments for hedges(542)50 
Pension and postretirement medical plan adjustments
1 155    
Foreign currency translation and other
227 (22)
Other comprehensive income (loss)(314)183 
Comprehensive income1,047 1,335 
Net income from continuing operations attributable to noncontrolling interests
(82)(48)
Other comprehensive loss attributable to noncontrolling interests(45)(19)
Comprehensive income attributable to Disney$920    $1,268 
See Notes to Condensed Consolidated Financial Statements




4

THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; in millions, except per share data)
December 31,
2022		October 1,
2022
ASSETS
Current assets
Cash and cash equivalents$8,470 $11,615 
Receivables, net13,993 12,652 
Inventories1,830 1,742 
Content advances1,300 1,890 
Other current assets1,319 1,199 
Total current assets26,912 29,098 
Produced and licensed content costs36,266 35,777 
Investments3,169 3,218 
Parks, resorts and other property
Attractions, buildings and equipment68,253    66,998    
Accumulated depreciation(40,641)(39,356)
27,612 27,642 
Projects in progress5,430 4,814 
Land1,158 1,140 
34,200 33,596 
Intangible assets, net14,347 14,837 
Goodwill77,867 77,897 
Other assets9,363 9,208 
Total assets$202,124 $203,631 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities$18,149 $20,213 
Current portion of borrowings3,249 3,070 
Deferred revenue and other5,672 5,790 
Total current liabilities27,070 29,073 
Borrowings45,128 45,299 
Deferred income taxes8,236 8,363 
Other long-term liabilities12,812 12,518 
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests8,743 9,499 
Equity
Preferred stock
— — 
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.8 billion shares
56,579 56,398 
Retained earnings44,955 43,636 
Accumulated other comprehensive loss(4,478)(4,119)
Treasury stock, at cost, 19 million shares
(907)(907)
Total Disney Shareholders’ equity96,149 95,008 
Noncontrolling interests3,986 3,871 
Total equity100,135 98,879 
Total liabilities and equity$202,124 $203,631 
See Notes to Condensed Consolidated Financial Statements
5

THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
 Quarter Ended
December 31,
2022		January 1,
2022
OPERATING ACTIVITIES
Net income from continuing operations$1,361 $1,200 
Depreciation and amortization1,306    1,269 
Net loss on investments and disposition of businesses68 436 
Deferred income taxes(15)   726 
Equity in the income of investees(191)(239)
Cash distributions received from equity investees176 223    
Net change in produced and licensed content costs and advances558 507 
Equity-based compensation270 196 
Pension and postretirement medical benefit cost amortization1 155 
Other, net(232)(7)
Changes in operating assets and liabilities:
Receivables(1,423)(1,401)
Inventories(88)(14)
Other assets(443)(115)
Accounts payable and other liabilities(2,378)(2,579)
Income taxes56 (566)
Cash used in operations - continuing operations(974)(209)
INVESTING ACTIVITIES
Investments in parks, resorts and other property(1,181)(981)
Other, net(111)(6)
Cash used in investing activities - continuing operations(1,292)(987)
FINANCING ACTIVITIES
Commercial paper borrowings (payments), net799 (124)
Borrowings67 33 
Reduction of borrowings(1,000)— 
Sale of noncontrolling interest178 — 
Acquisition of redeemable noncontrolling interest(900)— 
Other, net(187)(189)
Cash used in financing activities - continuing operations(1,043)(280)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash provided by operations - discontinued operations— 8 
Cash used in financing activities - discontinued operations— (12)
Cash used in discontinued operations— (4)
Impact of exchange rates on cash, cash equivalents and restricted cash164 (35)
Change in cash, cash equivalents and restricted cash(3,145)(1,515)
Cash, cash equivalents and restricted cash, beginning of period11,661 16,003 
Cash, cash equivalents and restricted cash, end of period$8,516 $14,488 
See Notes to Condensed Consolidated Financial Statements
6

THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(unaudited; in millions)


 Quarter Ended
Equity Attributable to Disney
 SharesCommon Stock
Retained Earnings
Accumulated
Other
Comprehensive
Income
(Loss)		Treasury Stock
Total Disney Equity
Non-controlling
 Interests(1)
Total
Equity
Balance at October 1, 20221,824 $56,398 $43,636 $(4,119)$(907)$95,008 $3,871 $98,879 
Comprehensive income (loss)— — 1,279 (359)— 920 (16)904 
Equity compensation activity2 180 — — — 180 — 180 
Contributions— — — — — — 178 178 
Distributions and other— 1 40 — — 41 (47)(6)
Balance at December 31, 20221,826 $56,579 $44,955 $(4,478)$(907)$96,149 $3,986 $100,135 
Balance at October 2, 20211,818 $55,471 $40,429 $(6,440)$(907)$88,553 $4,458 $93,011 
Comprehensive income (loss)— — 1,104    164— 1,268 (4)1,264 
Equity compensation activity3 29 — — — 29 — 29 
Contributions— — — — — — 29 29 
Distributions and other— — 14 — — 14 (37)(23)
Balance at January 1, 20221,821 $55,500 $41,547 $(6,276)$(907)$89,864 $4,446 $94,310 
(1)Excludes redeemable noncontrolling interests.
See Notes to Condensed Consolidated Financial Statements


7

THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)
 
1.Principles of Consolidation
These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We believe that we have included all normal recurring adjustments necessary for a fair statement of the results for the interim period. Operating results for the quarter ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.
The terms “Company,” “Disney,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company, The Walt Disney Company, as well as the subsidiaries through which its various businesses are actually conducted.
These financial statements should be read in conjunction with the Company’s 2022 Annual Report on Form 10-K.
Variable Interest Entities
The Company enters into relationships with or makes investments in other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements.
Redeemable Noncontrolling Interests
The Company consolidates the results of Hulu LLC (Hulu), a direct-to-consumer (DTC) streaming service provider, which is owned 67% by the Company and 33% by NBC Universal (NBCU). In May 2019, the Company entered into a put/call agreement with NBCU that provided the Company with full operational control of Hulu. Under the agreement, beginning in January 2024, NBCU has the option to require the Company to purchase NBCU’s interest in Hulu and the Company has the option to require NBCU to sell its interest in Hulu to the Company, in either case at a redemption value based on NBCU’s equity ownership percentage of the greater of Hulu’s then equity fair value or a guaranteed floor value of $27.5 billion.
NBCU’s interest will generally not be allocated its portion of Hulu’s losses, if any, as the redeemable noncontrolling interest is required to be carried at a minimum value. The minimum value is equal to the fair value as of the May 2019 agreement date accreted to the January 2024 estimated redemption value. At December 31, 2022, NBCU’s interest in Hulu is recorded in the Company’s financial statements at $8.7 billion, which is reported as “Redeemable noncontrolling interest” in the Condensed Consolidated Balance Sheets.
We are accreting NBCU’s interest in Hulu to its guaranteed floor value. In determining the redemption value, our estimate of Hulu’s equity fair value in January 2024 requires management to make significant judgments. If our estimate of the future fair value of Hulu’s equity increased above the guaranteed floor value, we would change our rate of accretion, which would generally increase the amount recorded in “Net income from continuing operations attributable to noncontrolling interests” and thus reduce “Net income attributable to Disney” in the Condensed Consolidated Statements of Income.
At October 1, 2022, Major League Baseball (MLB) held a 15% redeemable noncontrolling interest in BAMTech LLC (BAMTech), which was recorded in the Company’s financial statements at $828 million. In November 2022, the Company purchased MLB’s redeemable noncontrolling interest for $900 million, resulting in $72 million recorded as an increase in “Net income from continuing operations attributable to noncontrolling interests” in the Condensed Consolidated Statements of Income.
8
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates.
Reclassifications
Certain reclassifications have been made in the fiscal 2022 financial statements and notes to conform to the fiscal 2023 presentation.
2.Segment Information
The Company’s operations are conducted in the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) segments. Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer to allocate resources and assess performance.
Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and acquisition accounting amortization of TFCF Corporation (TFCF) and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition in fiscal 2019 (TFCF and Hulu acquisition amortization). Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions.
Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption.
Segment revenues and segment operating income (loss) are as follows:
 Quarter Ended
 December 31,
2022		January 1,
2022
Revenues:
Disney Media and Entertainment Distribution$14,776 $14,585 
Disney Parks, Experiences and Products8,736 7,234 
Total segment revenues$23,512 $21,819 
Segment operating income (loss):
Disney Media and Entertainment Distribution$(10) $808 
Disney Parks, Experiences and Products3,053 2,450 
Total segment operating income(1)
$3,043 $3,258 
(1) Equity in the income of investees is included in segment operating income as follows:
 Quarter Ended
 December 31,
2022		January 1,
2022
Disney Media and Entertainment Distribution$196   $245   
Disney Parks, Experiences and Products(2)(3) 
Equity in the income of investees included in segment operating income194 242 
Amortization of TFCF intangible assets related to equity investees(3)(3)
Equity in the income of investees, net$191 $239 
9
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)

A reconciliation of segment operating income to income from continuing operations before income taxes is as follows:
 Quarter Ended
 December 31,
2022		January 1,
2022
Segment operating income$3,043 $3,258   
Corporate and unallocated shared expenses(280)  (228)
Restructuring and impairment charges(69)— 
Other expense, net(1)
(42)(436)
Interest expense, net(300)(311)
TFCF and Hulu acquisition amortization(2)
(579)(595)
Income from continuing operations before income taxes$1,773 $1,688 
(1)See Note 4 for a discussion of amounts in other expense, net.
(2)For the quarter ended December 31, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $417 million, $159 million and $3 million, respectively. For the quarter ended January 1, 2022 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $435 million, $157 million, and $3 million, respectively.
Goodwill
The changes in the carrying amount of goodwill are as follows:
DMEDDPEPTotal
Balance at October 1, 2022$72,347 $5,550 $77,897 
Currency translation adjustments and other, net(30)— (30)
Balance at December 31, 2022$72,317 $5,550 $77,867 
3.Revenues
The following table presents our revenues by segment and major source:
Quarter Ended December 31, 2022Quarter Ended January 1, 2022
DMEDDPEPTotalDMEDDPEPTotal
Affiliate fees$4,242$— $4,242 $4,371 $— $4,371 
Subscription fees4,240— 4,240 3,598 — 3,598 
Advertising3,4421 3,443 3,868 1 3,869 
Theme park admissions—2,641 2,641 — 2,152 2,152 
Resort and vacations—1,980 1,980 — 1,445 1,445 
Retail and wholesale sales of merchandise, food and beverage—2,382    2,382    —    2,089 2,089 
Merchandise licensing—1,143 1,143 — 1,119 1,119 
TV/SVOD distribution licensing979— 979 1,396 —    1,396    
Theatrical distribution licensing1,140— 1,140 529 — 529 
Home entertainment135— 135 294 — 294 
Other598589 1,187 529 428 957 
$14,776$8,736 $23,512 $14,585 $7,234 $21,819 
    
The following table presents our revenues by segment and primary geographical markets:
Quarter Ended December 31, 2022Quarter Ended January 1, 2022
DMEDDPEPTotalDMEDDPEPTotal
Americas$12,018 $6,953 $18,971 $11,830 $5,711 $17,541 
Europe1,574    1,066    2,640    1,538    865    2,403    
Asia Pacific1,184 717 1,901 1,217 658 1,875 
Total revenues$14,776 $8,736 $23,512 $14,585 $7,234 $21,819 
10
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)

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 licenses for titles made available to the licensee in previous reporting periods. For the quarter ended December 31, 2022, $0.3 billion was recognized related to performance obligations satisfied as of October 1, 2022. For the quarter ended January 1, 2022, $0.4 billion was recognized related to performance obligations satisfied as of October 2, 2021.
As of December 31, 2022, revenue for unsatisfied performance obligations expected to be recognized in the future is $15 billion, primarily for content and other IP to be made available in the future under existing agreements with merchandise and co-branding licensees and sponsors, television station affiliates, sports sublicensees, advertisers, and DTC wholesalers. Of this amount, we expect to recognize approximately $4 billion in the remainder of fiscal 2023, $4 billion in fiscal 2024, $3 billion in fiscal 2025 and $4 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. The Company’s contract assets and activity for the current and prior-year periods were not material.
Accounts receivable and deferred revenues from contracts with customers are as follows:
December 31,
2022		October 1,
2022
Accounts receivable
Current$12,222   $10,886   
Non-current1,193 1,226 
Allowance for credit losses(166)(179)
Deferred revenues
Current5,392 5,531 
Non-current908 927 
For the quarter ended December 31, 2022, the Company recognized revenue of $3.4 billion that was included in the October 1, 2022 deferred revenue balance. For the quarter ended January 1, 2022, the Company recognized revenue of $1.9 billion that was included in the October 2, 2021 deferred revenue balance. Amounts deferred generally relate to theme park admissions and vacation packages, DTC subscriptions and advances related to merchandise and TV/SVOD licenses.
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, 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 (TV/SVOD licensing) 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 TV/SVOD licensing receivables recorded in other non-current assets was $0.6 billion at both December 31, 2022 and October 1, 2022. The balance of vacation club receivables recorded in other non-current assets was $0.6 billion at both December 31, 2022 and October 1, 2022. The allowance for credit losses and activity for the period ended December 31, 2022 was not material.
11
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)

4.Other Expense, net
Other expense, net is as follows:
 Quarter Ended
 December 31,
2022		January 1,
2022
DraftKings loss$(70)$(432)
Other, net28 (4)
Other expense, net$(42)$(436)
In the current quarter, the Company recognized a $70 million non-cash loss to adjust its investment in DraftKings, Inc. (DraftKings) to fair value (DraftKings loss). In the prior-year quarter, the Company recorded a $432 million DraftKings loss.
5.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.
December 31,
2022		October 1,
2022
Cash and cash equivalents$8,470 $11,615 
Restricted cash included in:
Other current assets3    3    
Other assets43 43 
Total cash, cash equivalents and restricted cash in the statement of cash flows$8,516 $11,661 
Borrowings
During the quarter ended December 31, 2022, the Company’s borrowing activity was as follows: 
October 1,
2022		BorrowingsPaymentsOther
Activity		December 31,
2022
Commercial paper with original maturities less than three months$50 $362 $— $1 $413 
Commercial paper with original maturities greater than three months1,612 1,151 (714)10 2,059 
U.S. dollar denominated notes45,091 — (1,000)(33)44,058 
Asia Theme Parks borrowings1,425    66    —    58    1,549    
Foreign currency denominated debt and other(1)
191 1 — 106 298 
$48,369 $1,580 $(1,714)$142 $48,377 
(1)The other activity is primarily due to market value adjustments for debt with qualifying hedges.
12
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)

At December 31, 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 2023$5,250 $— $5,250 
Facility expiring March 20253,000 — 3,000 
Facility expiring March 20274,000 — 4,000 
Total$12,250 $— $12,250 
These facilities allow for borrowings at SOFR-based rates plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s ranging from 0.755% to 1.225%. The bank facilities contain only one financial covenant, relating to 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 December 31, 2022, the Company met this covenant by a significant margin. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2027, which if utilized, reduces available borrowings under this facility. As of December 31, 2022, the Company has $2.0 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 a significant portion of the contract price of two new cruise ships, which are scheduled to be delivered in fiscal 2025 and fiscal 2026. Under the facilities, $1.1 billion is available beginning in August 2023 and $1.1 billion is available beginning in August 2024. Each tranche of financing may be utilized within a period of 18 months from the initial availability date. If utilized, the interest rates will be fixed at 3.80% and 3.74%, respectively, and the loan and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees.
Interest expense, net
Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following:
Quarter Ended
December 31,
2022		January 1,
2022
Interest expense$(465)$(361)
Interest and investment income79    34    
Net periodic pension and postretirement benefit costs (other than service costs)86 16 
Interest expense, net$(300)$(311)
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.
6.International Theme Parks
The Company has a 48% ownership interest in the operations of Hong Kong Disneyland Resort and a 43% ownership interest in the operations of Shanghai Disney Resort. The Asia Theme Parks together with Disneyland Paris are collectively referred to as the International Theme Parks.
13
THE WALT DISNEY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited; tabular dollars in millions, except for per share data)

The following table summarizes the carrying amounts of the Asia Theme Parks’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets:
 December 31,
2022		October 1, 2022
Cash and cash equivalents$301 $280 
Other current assets179 137 
Total current assets480 417 
Parks, resorts and other property6,462    6,356    
Other assets161 161 
Total assets$7,103 $6,934 
Current liabilities$514 $468 
Long-term borrowings1,549 1,426 
Other long-term liabilities410 395 
Total liabilities$2,473 $2,289 
The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the quarter ended December 31, 2022:
Revenues$996 
Costs and expenses(991)   
Equity in the loss of investees(2)
Asia Theme Parks’ royalty and management fees of $24 million for the quarter ended December 31, 2022 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests.
International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statements of Cash Flows for the quarter ended December 31, 2022 were $195 million provided by operating activities, $292 million used in investing activities and $66 million provided by financing activities.
Hong Kong Disneyland Resort
The Government of the Hong Kong Special Administrative Region (HKSAR) and the Company have a 52% and a 48% equity interest in Hong Kong Disneyland Resort, respectively.
The Company and HKSAR have provided loans to Hong Kong Disneyland Resort with outstanding balances of $155 million and $104 million, respectively. The interest rate on both loans is three month HIBOR plus 2%, and the maturity date is September 2025. The Company’s loan is eliminated in consolidation.
The Company has provided Hong Kong Disneyland Resort with a revolving credit facility of HK $