XML 24 R11.htm IDEA: XBRL DOCUMENT v3.23.2
Revenues
 9 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer Revenues
The following table presents our revenues by segment and major source:
Quarter Ended July 1, 2023Quarter Ended July 2, 2022
DMEDDPEPTotalDMEDDPEPContent License Early TerminationTotal
Affiliate fees$4,234$— $4,234 $4,337 $— $— $4,337 
Subscription fees4,537— 4,537 3,889 — — 3,889 
Advertising3,0421 3,043 3,534 1 — 3,535 
Theme park admissions—2,731 2,731 — 2,312 — 2,312 
Resort and vacations—1,990 1,990 — 1,805 — 1,805 
Retail and wholesale sales of merchandise, food and beverage—2,226    2,226    —    1,896 — 1,896 
Merchandise licensing—876 876 — 916 — 916 
TV/SVOD distribution licensing646— 646 1,119 —    —    1,119    
Theatrical distribution licensing838— 838 620 — — 620 
Home entertainment209— 209 149 — — 149 
Other498502 1,000 462 464 — 926 
$14,004$8,326 $22,330 $14,110 $7,394 $— $21,504 
Nine Months Ended July 1, 2023Nine Months Ended July 2, 2022
DMEDDPEPTotalDMEDDPEPContent License Early TerminationTotal
Affiliate fees$12,870$— $12,870 $13,310 $— $— $13,310 
Subscription fees13,382— 13,382 11,374 — — 11,374 
Advertising9,0473 9,050 10,425 3 — 10,428 
Theme park admissions—7,8007,800 — 6,437 — 6,437 
Resort and vacations—5,9195,919 — 4,701 — 4,701 
Retail and wholesale sales of merchandise, food and beverage—6,7506,750 —    5,801 — 5,801 
Merchandise licensing—2,7912,791 — 2,928 — 2,928 
TV/SVOD distribution licensing2,658—2,658 3,639 —    (1,023)   2,616 
Theatrical distribution licensing2,745—2,745 1,373 — — 1,373 
Home entertainment492—492 673 — — 673 
Other1,6251,5753,200 1,521 1,410 — 2,931 
$42,819$24,838$67,657 $42,315 $21,280 $(1,023)$62,572 
    
The following table presents our revenues by segment and primary geographical markets:
Quarter Ended July 1, 2023Quarter Ended July 2, 2022
DMEDDPEPTotalDMEDDPEPTotal
Americas$11,466 $6,299 $17,765 $11,444 $6,130 $17,574 
Europe1,352    984    2,336    1,230    897    2,127    
Asia Pacific1,186 1,043 2,229 1,436 367 1,803 
Total revenues$14,004 $8,326 $22,330 $14,110 $7,394 $21,504 
Content License Early Termination— 
$21,504 
Nine Months Ended July 1, 2023Nine Months Ended July 2, 2022
DMEDDPEPTotalDMEDDPEPTotal
Americas$35,009 $19,357 $54,366 $34,465 $17,400 $51,865 
Europe4,373    2,794    7,167    4,111    2,389    6,500    
Asia Pacific3,437 2,687 6,124 3,739 1,491 5,230 
Total revenues$42,819 $24,838 $67,657 $42,315 $21,280 $63,595 
Content License Early Termination(1,023)
$62,572 
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 July 1, 2023, $0.3 billion was recognized related to performance obligations satisfied as of April 1, 2023. For the nine months ended July 1, 2023, $0.7 billion was recognized related to performance obligations satisfied as of October 1, 2022. For the quarter ended July 2, 2022, $0.3 billion was recognized related to performance obligations satisfied as of April 2, 2022. For the nine months ended July 2, 2022, $0.9 billion was recognized related to performance obligations satisfied as of October 2, 2021.
As of July 1, 2023, revenue for unsatisfied performance obligations expected to be recognized in the future is $16 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, DTC wholesalers, sports sublicensees, and advertisers. Of this amount, we expect to recognize approximately $2 billion in the remainder of fiscal 2023, $6 billion in fiscal 2024, $4 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:
July 1,
2023		October 1,
2022
Accounts receivable
Current$11,445   $10,886   
Non-current1,126 1,226 
Allowance for credit losses(165)(179)
Deferred revenues
Current5,871 5,531 
Non-current834 927 
For the quarter and nine months ended July 1, 2023, the Company recognized revenue of $0.5 billion and $4.7 billion, respectively, that was included in the October 1, 2022 deferred revenue balance. For the quarter and nine months ended July 2, 2022, the Company recognized revenue of $0.4 billion and $3.2 billion, respectively, 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 $0.5 billion at July 1, 2023 and $0.6 billion at October 1, 2022. The balance of vacation club receivables recorded in other non-current assets was $0.6 billion at both July 1, 2023 and October 1, 2022. The allowance for credit losses and activity for the period ended July 1, 2023 was not material.