Produced and Acquired/Licensed Content Costs and Advances

9 Months Ended

Jul. 01, 2023

Produced and Acquired/Licensed Content Costs and Advances Disclosure

Produced and Acquired/Licensed Content Costs and Advances

The Company classifies its capitalized produced and acquired/licensed content costs as long-term assets and classifies advances for live programming rights made prior to the live event as short-term assets. For purposes of amortization and impairment, the capitalized content costs are classified based on their predominant monetization strategy as follows:

•Individual - lifetime value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g. theatrical revenues or sales to third-party television programmers)

•Group - lifetime value is predominantly derived from third-party revenues that are attributable only to a bundle of titles (e.g. subscription revenue for a DTC service or affiliate fees for a cable television network)

Total capitalized produced and licensed content by predominant monetization strategy is as follows:


	As of July 1, 2023						As of October 1, 2022
	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total		Predominantly Monetized Individually		Predominantly Monetized as a Group		Total
Produced content
Released, less amortization	$	5,437	$	13,282	$	18,719	$	4,639	$	12,688	$	17,327
Completed, not released	36		963		999		214		2,019		2,233
In-process	3,201		7,560		10,761		5,041		6,793		11,834
In development or pre-production	409		199		608		372		254		626
	$	9,083	$	22,004	31,087		$	10,266	$	21,754	32,020






Licensed content - Television programming rights and advances					5,889						5,647
Total produced and licensed content					$	36,976					$	37,667

Current portion					$	2,369					$	1,890
Non-current portion					$	34,607					$	35,777

Amortization of produced and licensed content is as follows:


	Quarter Ended				Nine Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Produced content
Predominantly monetized individually	$	954	$	878	$	3,117	$	2,749
Predominantly monetized as a group	1,998		1,674		6,110		4,795
	2,952		2,552		9,227		7,544
Licensed programming rights and advances	3,136		3,258		10,871		10,908
Total produced and licensed content costs(1)	$	6,088	$	5,810	$	20,098	$	18,452

(1)Primarily included in “Costs of services” in the Condensed Consolidated Statements of Operations. Amounts exclude impairment charges of $2.0 billion for produced content and $257 million for licensed programming rights recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statements of Operations in the quarter and nine months ended July 1, 2023 (see Note 16).