Leases

12 Months Ended

Sep. 28, 2024

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 28, 2024, 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 35 years. The weighted-average incremental borrowing rate is 4.0% and 6.7%, for our operating leases and finance leases, respectively. At September 28, 2024, total estimated future lease payments for non-cancelable lease agreements that have not commenced are not material.

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

	September 28, 2024		September 30, 2023
Right-of-use assets(1)
Operating leases	$	3,376	$	4,211
Finance leases	246		291
Total right-of-use assets	3,622		4,502
Short-term lease liabilities(2)
Operating leases	744		740
Finance leases	30		37
	774		777
Long-term lease liabilities(3)
Operating leases	2,768		3,258
Finance leases	160		206
	2,928		3,464
Total lease liabilities	$	3,702	$	4,241

(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:

	2024		2023		2022
Finance lease cost
Amortization of right-of-use assets	$	36	$	39	$	39
Interest on lease liabilities	13		15		15
Operating lease cost	926		820		796
Variable fees and other(1)	555		444		363
Total lease cost	$	1,530	$	1,318	$	1,213

(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:

	2024		2023		2022
Operating cash flows for operating leases	$	876	$	714	$	736
Operating cash flows for finance leases	13		15		15
Financing cash flows for finance leases	44		41		48
Total	$	933	$	770	$	799

Future minimum lease payments, as of September 28, 2024, are as follows:

	Operating		Financing
Fiscal Year:
2025	$	863	$	43
2026	602		31
2027	472		26
2028	400		22
2029	349		12
Thereafter	1,978		336
Total undiscounted future lease payments	4,664		470
Less: Imputed interest	(1,152)		(280)
Total reported lease liability	$	3,512	$	190

Lessor Arrangements

The Company leases certain of its land and buildings to third parties, primarily at its parks and experiences businesses. Lessee payments include fixed amounts for the rental of the property although the vast majority of the payments are variable based on a percentage of lessee sales. Revenues recognized on these leases for fiscal 2024, 2023 and 2022 were $0.6 billion, $0.5 billion and $0.4 billion, respectively.

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 28, 2024, 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 35 years. The weighted-average incremental borrowing rate is 4.0% and 6.7%, for our operating leases and finance leases, respectively. At September 28, 2024, total estimated future lease payments for non-cancelable lease agreements that have not commenced are not material.

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

	September 28, 2024		September 30, 2023
Right-of-use assets(1)
Operating leases	$	3,376	$	4,211
Finance leases	246		291
Total right-of-use assets	3,622		4,502
Short-term lease liabilities(2)
Operating leases	744		740
Finance leases	30		37
	774		777
Long-term lease liabilities(3)
Operating leases	2,768		3,258
Finance leases	160		206
	2,928		3,464
Total lease liabilities	$	3,702	$	4,241

(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:

	2024		2023		2022
Finance lease cost
Amortization of right-of-use assets	$	36	$	39	$	39
Interest on lease liabilities	13		15		15
Operating lease cost	926		820		796
Variable fees and other(1)	555		444		363
Total lease cost	$	1,530	$	1,318	$	1,213

(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:

	2024		2023		2022
Operating cash flows for operating leases	$	876	$	714	$	736
Operating cash flows for finance leases	13		15		15
Financing cash flows for finance leases	44		41		48
Total	$	933	$	770	$	799

Future minimum lease payments, as of September 28, 2024, are as follows:

	Operating		Financing
Fiscal Year:
2025	$	863	$	43
2026	602		31
2027	472		26
2028	400		22
2029	349		12
Thereafter	1,978		336
Total undiscounted future lease payments	4,664		470
Less: Imputed interest	(1,152)		(280)
Total reported lease liability	$	3,512	$	190

Lessor Arrangements

The Company leases certain of its land and buildings to third parties, primarily at its parks and experiences businesses. Lessee payments include fixed amounts for the rental of the property although the vast majority of the payments are variable based on a percentage of lessee sales. Revenues recognized on these leases for fiscal 2024, 2023 and 2022 were $0.6 billion, $0.5 billion and $0.4 billion, respectively.