Leases

12 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, cruise terminals, retail outlets and distribution centers for consumer products. The Company also has finance leases, primarily for broadcast equipment and land.

Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of September 30, 2023, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 29 years. The weighted-average incremental borrowing rate is 3.6% and 6.5%, for our operating leases and finance leases, respectively. At September 30, 2023 total estimated future lease payments for non-cancelable lease agreements that have not commenced of approximately $0.5 billion are excluded from the measurement of the right-of-use asset and lease liability.

The Company’s operating and finance right-of-use assets and lease liabilities are as follows:

	September 30, 2023		October 1, 2022
Right-of-use assets(1)
Operating leases	$	4,211	$	3,966
Finance leases	291		303
Total right-of-use assets	4,502		4,269
Short-term lease liabilities(2)
Operating leases	740		614
Finance leases	37		37
	777		651
Long-term lease liabilities(3)
Operating leases	3,258		3,020
Finance leases	206		219
	3,464		3,239
Total lease liabilities	$	4,241	$	3,890

(1)Included in “Other assets” in the Consolidated Balance Sheet.

(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.

(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.

The components of lease costs are as follows:

	2023		2022		2021
Finance lease cost
Amortization of right-of-use assets	$	39	$	39	$	42
Interest on lease liabilities	15		15		20
Operating lease cost	820		796		853
Variable fees and other(1)	444		363		414
Total lease cost	$	1,318	$	1,213	$	1,329

(1)Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.

Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:

	2023		2022		2021
Operating cash flows for operating leases	$	714	$	736	$	925
Operating cash flows for finance leases	15		15		20
Financing cash flows for finance leases	41		48		25
Total	$	770	$	799	$	970

Future minimum lease payments, as of September 30, 2023, are as follows:

	Operating		Financing
Fiscal Year:
2024	$	824	$	47
2025	792		44
2026	504		38
2027	384		33
2028	318		29
Thereafter	2,265		350
Total undiscounted future lease payments	5,087		541
Less: Imputed interest	(1,089)		(298)
Total reported lease liability	$	3,998	$	243

Leases

Leases

The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, cruise terminals, retail outlets and distribution centers for consumer products. The Company also has finance leases, primarily for broadcast equipment and land.

Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of September 30, 2023, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 29 years. The weighted-average incremental borrowing rate is 3.6% and 6.5%, for our operating leases and finance leases, respectively. At September 30, 2023 total estimated future lease payments for non-cancelable lease agreements that have not commenced of approximately $0.5 billion are excluded from the measurement of the right-of-use asset and lease liability.

The Company’s operating and finance right-of-use assets and lease liabilities are as follows:

	September 30, 2023		October 1, 2022
Right-of-use assets(1)
Operating leases	$	4,211	$	3,966
Finance leases	291		303
Total right-of-use assets	4,502		4,269
Short-term lease liabilities(2)
Operating leases	740		614
Finance leases	37		37
	777		651
Long-term lease liabilities(3)
Operating leases	3,258		3,020
Finance leases	206		219
	3,464		3,239
Total lease liabilities	$	4,241	$	3,890

(1)Included in “Other assets” in the Consolidated Balance Sheet.

(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.

(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.

The components of lease costs are as follows:

	2023		2022		2021
Finance lease cost
Amortization of right-of-use assets	$	39	$	39	$	42
Interest on lease liabilities	15		15		20
Operating lease cost	820		796		853
Variable fees and other(1)	444		363		414
Total lease cost	$	1,318	$	1,213	$	1,329

(1)Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.

Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:

	2023		2022		2021
Operating cash flows for operating leases	$	714	$	736	$	925
Operating cash flows for finance leases	15		15		20
Financing cash flows for finance leases	41		48		25
Total	$	770	$	799	$	970

Future minimum lease payments, as of September 30, 2023, are as follows:

	Operating		Financing
Fiscal Year:
2024	$	824	$	47
2025	792		44
2026	504		38
2027	384		33
2028	318		29
Thereafter	2,265		350
Total undiscounted future lease payments	5,087		541
Less: Imputed interest	(1,089)		(298)
Total reported lease liability	$	3,998	$	243