Cash, Cash Equivalents, Restricted Cash and Borrowings

9 Months Ended

Jun. 29, 2024

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.

	June 29, 2024		September 30, 2023
Cash and cash equivalents	$	5,954	$	14,182
Restricted cash included in other assets	95		53
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	6,049	$	14,235

Borrowings

During the nine months ended June 29, 2024, the Company’s borrowing activity was as follows: 

	September 30, 2023		Borrowings		Payments		Other Activity		June 29, 2024
Commercial paper with original maturities less than three months(1)	$	289	$	25	$	—	$	—	$	314
Commercial paper with original maturities greater than three months	1,187		3,717		(2,365)		6		2,545
U.S. dollar denominated notes	43,504		—		(584)		(106)		42,814
Asia Theme Parks borrowings	1,308		—		(13)		52		1,347
Foreign currency denominated debt and other(2)	143		132		(132)		421		564
	$	46,431	$	3,874	$	(3,094)	$	373	$	47,584

(1)Borrowings and reductions of borrowings are reported net.

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

At June 29, 2024, 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 February 2025	$	5,250	$	—	$	5,250
Facility expiring March 2027	4,000		—		4,000
Facility expiring March 2029	3,000		—		3,000
Total	$	12,250	$	—	$	12,250

These facilities allow for borrowings at rates based on the Secured Overnight Financing Rate (SOFR) and at other variable rates for non-U.S. dollar denominated borrowings, 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 0.655% 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 June 29, 2024, 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 June 29, 2024, the Company has $1.7 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 became available in August 2023 and $1.1 billion became available 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 Operations and consist of the following:

	Quarter Ended				Nine Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Interest expense	$	(509)	$	(503)	$	(1,538)	$	(1,472)
Interest and investment income	68		111		337		288
Net periodic pension and postretirement benefit costs (other than service costs)	99		87		302		257
Interest expense, net	$	(342)	$	(305)	$	(899)	$	(927)

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.