Leases

12 Months Ended

Sep. 27, 2025

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 27, 2025 and September 28, 2024, our operating leases had a weighted-average remaining lease term of approximately 11 years and 10 years, respectively, and our finance leases had a weighted-average remaining lease term of approximately 39 years and 35 years, respectively. As of September 27, 2025 and September 28, 2024, the weighted-average incremental borrowing rate for our operating leases was 4.1% and 4.0%, respectively, and for our finance leases was 6.8% and 6.7%, respectively. At both September 27, 2025 and September 28, 2024, total estimated future lease payments for non-cancelable lease agreements that have not commenced were not material.

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


	September 27, 2025		September 28, 2024
Right-of-use assets(1)
Operating leases	$	3,170	$	3,376
Finance leases	221		246
Total right-of-use assets	$	3,391	$	3,622

Short-term lease liabilities(2)
Operating leases	$	525	$	744
Finance leases	21		30
	546		774
Long-term lease liabilities(3)
Operating leases	2,710		2,768
Finance leases	141		160
	2,851		2,928
Total lease liabilities	$	3,397	$	3,702

(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:


	2025		2024		2023
Finance lease cost
Amortization of right-of-use assets	$	23	$	36	$	39
Interest on lease liabilities	25		13		15
Operating lease cost	773		926		820
Variable fees and other(1)	527		555		444
Total lease cost	$	1,348	$	1,530	$	1,318

(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:


	2025		2024		2023
Operating cash flows for operating leases	$	903	$	876	$	714
Operating cash flows for finance leases	25		13		15
Financing cash flows for finance leases	46		44		41
Total	$	974	$	933	$	770

Non-cash additions to right-of-use assets for fiscal 2025, 2024 and 2023 were $0.4 billion, $0.3 billion and $1.0 billion, respectively.

Future minimum lease payments, as of September 27, 2025, are as follows:


	Operating		Financing
Fiscal Year:
2026	$	661	$	30
2027	555		25
2028	478		22
2029	428		12
2030	377		15
Thereafter	1,759		321
Total undiscounted future lease payments	4,258		425
Less: Imputed interest	(1,023)		(263)
Total reported lease liability	$	3,235	$	162

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 2025, 2024 and 2023 were $0.6 billion, $0.6 billion and $0.5 billion, respectively.

Leases