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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Walt Disney Co | NYSE:DIS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.88 | 1.70% | 112.36 | 112.87 | 110.56 | 111.56 | 6,865,037 | 00:11:11 |
For the Fiscal Year Ended October 1, 2016
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Commission File Number 1-11605
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Incorporated in Delaware
500 South Buena Vista Street, Burbank, California 91521
(818) 560-1000
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I.R.S. Employer Identification No.
95-4545390
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Title of Each Class
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Name of Each Exchange
on Which Registered
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Common Stock, $.01 par value
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New York Stock Exchange
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer (do not check if smaller reporting company)
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o
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Smaller reporting company
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o
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Page
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PART I
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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PART II
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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PART III
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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PART IV
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ITEM 15.
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•
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fees charged to cable, satellite, and telecommunications service providers (Multi-channel Video Programming Distributors “MVPD”), broadband service providers (digital MVPDs) and television stations affiliated with our domestic broadcast television network for the right to deliver our programs to their customers/subscribers (“affiliate fees”);
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•
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the sale to advertisers of time in programs for commercial announcements (“ad sales”); and
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•
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the sale to television networks and distributors for the right to use our television programming (“program sales”).
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Estimated
Subscribers
(in millions)
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ESPN - Domestic
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ESPN
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90
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ESPN2
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89
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ESPNU
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71
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ESPNEWS
(2)
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70
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SEC Network
(2)
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62
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Disney Channels - Domestic
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Disney Channel
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93
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Disney Junior
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74
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Disney XD
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78
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Freeform
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91
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International Channels
(3)
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ESPN channels
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141
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Disney Channel
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205
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Disney Junior
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140
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Disney XD
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127
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(1)
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Nielsen Media Research estimates are as of September 2016 and only capture traditional MVPD subscriber counts and do not include digital MVPD subscribers.
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(2)
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Because Nielsen Media Research does not measure these networks, estimated subscriber counts are according to SNL Kagan as of December 2015.
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(3)
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Because Nielsen Media Research and SNL Kagan do not measure these networks, estimated subscriber counts are based on internal management reports as of September 2016.
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•
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ESPN.com – which delivers comprehensive sports news, information and video on internet-connected devices
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•
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WatchESPN – which delivers live streams of most of ESPN’s domestic networks on internet-connected devices to authenticated MVPD subscribers. Non-subscribers have limited access to certain content on select Watch platforms
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•
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ESPN3, SEC Network + and ACC Network Extra – which are ESPN’s live multi-screen sports networks that deliver exclusive sports events and are accessible on WatchESPN
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•
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ESPN Events – which owns and operates a portfolio of collegiate sporting events including bowl games, basketball games and post-season award shows
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•
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ESPN Radio – which distributes talk and play by play programming and is one of the largest sports radio networks in the U.S. ESPN Radio network programming is carried on more than 500 terrestrial stations including four ESPN owned stations in New York, Los Angeles, Chicago and Dallas and on satellite and internet radio
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•
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ESPN The Magazine – which is a bi-weekly sports magazine
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TV Station
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Market
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Television Market
Ranking
(1)
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WABC
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New York, NY
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1
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KABC
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Los Angeles, CA
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2
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WLS
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Chicago, IL
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3
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WPVI
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Philadelphia, PA
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4
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KGO
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San Francisco, CA
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6
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KTRK
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Houston, TX
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10
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WTVD
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Raleigh-Durham, NC
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25
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KFSN
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Fresno, CA
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54
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(1)
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Based on Nielsen Media Research, U.S. Television Household Estimates, January 1, 2016
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•
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A&E – which offers entertainment programming including original reality and scripted series
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•
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HISTORY – which offers original series and event-driven specials
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•
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Lifetime – which is devoted to female-focused programming
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•
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Lifetime Movie Network (LMN) – which is a 24-hour movie channel
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•
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FYI – which offers contemporary lifestyle programming
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•
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Lifetime Real Women – which is a 24-hour cable network with programming focusing on women
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(1)
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Nielsen Media Research estimates are as of September 2016 and only capture traditional MVPD subscriber counts and do not include digital MVPD subscribers.
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•
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Licensing of television and radio stations.
Each of the television and radio stations we own must be licensed by the FCC. These licenses are granted for periods of up to eight years, and we must obtain renewal of licenses as they expire in order to continue operating the stations. We (and the acquiring entity in the case of a divestiture) must also obtain FCC approval whenever we seek to have a license transferred in connection with the acquisition or divestiture of a station. The FCC may decline to renew or approve the transfer of a license in certain circumstances and may delay renewals while permitting a licensee to continue operating. Although we have received such renewals and approvals in the past or have been permitted to continue operations when renewal is delayed, there can be no assurance that this will be the case in the future.
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Television and radio station ownership limits.
The FCC imposes limitations on the number of television stations and radio stations we can own in a specific market, on the combined number of television and radio stations we can own in a single market and on the aggregate percentage of the national audience that can be reached by television stations we own. Currently:
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▪
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FCC regulations may restrict our ability to own more than one television station in a market, depending on the size and nature of the market. We do not own more than one television station in any market.
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▪
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Federal statutes permit our television stations in the aggregate to reach a maximum of 39% of the national audience The FCC recently changed how it treats UHF television stations for purposes of determining compliance with the 39% cap and pursuant to the FCC’s revised rules, our eight stations reach approximately 23% of the national audience.
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▪
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FCC regulations in some cases impose restrictions on our ability to acquire additional radio or television stations in the markets in which we own radio stations, but we do not believe any such limitations are material to our current operating plans.
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Dual networks.
FCC rules currently prohibit any of the four major broadcast television networks — ABC, CBS, Fox and NBC — from being under common ownership or control.
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•
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Regulation of programming.
The FCC regulates broadcast programming by, among other things, banning “indecent” programming, regulating political advertising and imposing commercial time limits during children’s programming. Penalties for broadcasting indecent programming can range up to $350,000 per indecent utterance or image per station.
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•
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Cable and satellite carriage of broadcast television stations.
With respect to cable systems operating within a television station’s Designated Market Area, FCC rules require that every three years each television station elect either “must carry” status, pursuant to which cable operators generally must carry a local television station in the station’s market, or “retransmission consent” status, pursuant to which the cable operator must negotiate with the television station to obtain the consent of the television station prior to carrying its signal. Under the Satellite Home Viewer Improvement Act and its successors, including most recently the STELA Reauthorization Act (STELAR), which also requires the “must carry” or “retransmission consent” election, satellite carriers are permitted to retransmit a local television station’s signal into its local market with the consent of the local television station. The ABC owned television stations have historically elected retransmission consent. Portions of these satellite laws are set to expire on December 31, 2019.
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•
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Cable and satellite carriage of programming.
The Communications Act and FCC rules regulate some aspects of negotiations regarding cable and satellite retransmission consent, and some cable and satellite companies have sought regulation of additional aspects of the carriage of programming on cable and satellite systems. New legislation, court action or regulation in this area could have an impact on the Company’s operations.
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•
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licensing characters and content from our film, television and other properties to third parties for use on consumer merchandise, published materials and in multi-platform games;
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selling merchandise through our retail stores, internet shopping sites and wholesale business;
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sales of games through app distributors and online and through consumers’ in-game purchases;
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wholesale sales of self-published children’s books and magazines and comic books;
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charging tuition at English language learning centers in China; and
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advertising through the distribution of online video content.
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Our broadcast and cable networks, stations and online offerings compete for viewers with other broadcast, cable and satellite services as well as with home entertainment products, new sources of broadband and mobile delivered content and internet usage.
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Our broadcast and cable networks and stations compete for the sale of advertising time with other broadcast, cable and satellite services, and internet and mobile delivered content, as well as with newspapers, magazines, billboards and radio stations.
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•
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Our cable networks compete for carriage of their programming with other programming providers.
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Our studio operations, broadcast and cable networks compete to obtain creative and performing talent, sports and other programming, story properties, advertiser support and market share with other studio operations, broadcast and cable networks and new sources of broadband delivered content.
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•
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Our theme parks and resorts compete for guests with all other forms of entertainment, lodging, tourism and recreation activities.
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•
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Our studio operations compete for customers with all other forms of entertainment.
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Our Consumer Products & Interactive Media segment competes with other licensors, publishers and retailers of character, brand and celebrity names.
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Our interactive media operations compete with other licensors and publishers of console, online and mobile games and other types of home entertainment.
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U.S. FCC regulation of our television and radio networks, our national programming networks, and our owned television stations. See Item 1 — Business — Media Networks, Federal Regulation.
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Federal, state and foreign privacy and data protection laws and regulations.
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•
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Regulation of the safety of consumer products and theme park operations.
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Environmental protection regulations.
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Imposition by foreign countries of trade restrictions, restrictions on the manner in which content is currently licensed and distributed, ownership restrictions, currency exchange controls or motion picture or television content requirements or quotas.
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•
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Domestic and international wage laws, tax laws or currency controls.
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Revenues in our Media Networks segment are subject to seasonal advertising patterns and changes in viewership levels. In general, advertising revenues are somewhat higher during the fall and somewhat lower during the summer months. Affiliate fees are typically collected ratably throughout the year.
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•
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Revenues in our Parks and Resorts segment fluctuate with changes in theme park attendance and resort occupancy resulting from the seasonal nature of vacation travel and leisure activities. Peak attendance and resort occupancy generally occur during the summer months when school vacations occur and during early-winter and spring-holiday periods.
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•
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Revenues in our Studio Entertainment segment fluctuate due to the timing and performance of releases in the theatrical, home entertainment and television markets. Release dates are determined by several factors, including competition and the timing of vacation and holiday periods.
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•
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Revenues in our Consumer Products & Interactive Media segments are influenced by seasonal consumer purchasing behavior, which generally results in higher revenues during the Company’s first fiscal quarter, and by the timing and performance of theatrical and game releases and cable programming broadcasts.
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ITEM 1B.
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Unresolved Staff Comments
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ITEM 2.
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Properties
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Location
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Property /
Approximate Size
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Use
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Business Segment
(1)
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Burbank, CA & surrounding cities
(2)
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Land (201 acres) & Buildings (4,725,000 ft
2
)
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Owned Office/Production/Warehouse (includes 255,000 ft
2
sublet to third-party tenants)
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Corp/Studio/Media/
CPIM/P&R
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Burbank, CA & surrounding cities
(2)
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Buildings (1,556,000 ft
2
)
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Leased Office/Warehouse
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Corp/Studio/Media/CPIM/P&R
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Los Angeles, CA
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Land (22 acres) & Buildings (600,000 ft
2
)
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Owned Office/Production/Technical
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Media/Studio
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Los Angeles, CA
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Buildings (519,000 ft
2
)
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Leased Office/Production/Technical/Theater
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Media/Studio
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New York, NY
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Land (5 acres) & Buildings (1,418,000 ft
2
)
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Owned Office/Production/Technical
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Media/Corp
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New York, NY
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Buildings (250,000 ft
2
)
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Leased Office/Production/Theater/Warehouse (includes 14,000 ft
2
sublet to third-party tenants)
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Corp/Studio/Media/CPIM
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Bristol, CT
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Land (117 acres) & Buildings (1,174,000 ft
2
)
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Owned Office/Production/Technical
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Media
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Bristol, CT
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Buildings (512,000 ft
2
)
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Leased Office/Warehouse/Technical
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Media
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Emeryville, CA
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Land (20 acres) & Buildings (430,000 ft
2
)
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Owned Office/Production/Technical
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Studio
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Emeryville, CA
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Buildings (88,000 ft
2
)
|
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Leased Office/Storage
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Studio
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San Francisco, CA
|
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Buildings (741,000 ft
2
)
|
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Leased Office/Production/Technical/Theater (includes 64,000 ft
2
sublet to third-party tenants)
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Corp/Studio/Media/
CPIM/P&R
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USA & Canada
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Land and Buildings (Multiple sites and sizes)
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Owned and Leased Office/ Production/Transmitter/Theaters/Warehouse
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Corp/Studio/Media/
CPIM/P&R
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Hammersmith, England
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|
Building (279,500 ft
2
)
|
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Leased Office
|
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Corp/Studio/Media/
CPIM/P&R
|
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Europe, Asia, Australia & Latin America
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Buildings (Multiple sites and sizes)
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Leased Office/Warehouse/Retail
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Corp/Studio/Media/
CPIM/P&R
|
(1)
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Corp – Corporate, CPIM – Consumer Products & Interactive Media, P&R – Parks and Resorts
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(2)
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Surrounding cities include Glendale, CA, North Hollywood, CA and Sun Valley, CA
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Name
|
|
Age
|
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Title
|
|
Executive
Officer Since
|
Robert A. Iger
|
|
65
|
|
Chairman and Chief Executive Officer
(1)
|
|
2000
|
Alan N. Braverman
|
|
68
|
|
Senior Executive Vice President, General Counsel and Secretary
|
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2003
|
Kevin A. Mayer
|
|
54
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|
Senior Executive Vice President and Chief Strategy Officer
(2)
|
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2005
|
Christine M. McCarthy
|
|
61
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|
Senior Executive Vice President and Chief Financial Officer
(3)
|
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2005
|
M. Jayne Parker
|
|
55
|
|
Executive Vice President and Chief Human Resources Officer
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2009
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(1)
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Mr. Iger was appointed Chairman of the Board and Chief Executive Officer effective March 13, 2012. He was President and Chief Executive Officer from October 2, 2005 through that date.
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(2)
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Mr. Mayer was appointed Senior Executive Vice President and Chief Strategy Officer effective June 30, 2015. He was previously Executive Vice President, Corporate Strategy and Business Development of the Company from 2005 to 2015.
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(3)
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Ms. McCarthy was appointed Senior Executive Vice President and Chief Financial Officer effective June 30, 2015. She was previously Executive Vice President, Corporate Real Estate, Alliances and Treasurer of the Company from 2000 to 2015.
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Period
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Total Number
of Shares
Purchased
(1)
|
|
Weighted
Average Price
Paid per Share
|
|
Total Number
of Shares
Purchased
as Part of
Publicly
Announced
Plans or
Programs
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under the
Plans or
Programs
(2)
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July 3, 2016 – July 31, 2016
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4,864,650
|
|
|
$
|
98.59
|
|
|
4,840,000
|
|
|
293 million
|
August 1, 2016 – August 31, 2016
|
|
6,654,889
|
|
|
96.24
|
|
|
6,423,739
|
|
|
287 million
|
|
September 1, 2016 – October 1, 2016
|
|
5,336,204
|
|
|
93.44
|
|
|
5,305,000
|
|
|
282 million
|
|
Total
|
|
16,855,743
|
|
|
96.03
|
|
|
16,568,739
|
|
|
282 million
|
(1)
|
287,004 shares were purchased on the open market to provide shares to participants in the Walt Disney Investment Plan (WDIP). These purchases were not made pursuant to a publicly announced repurchase plan or program.
|
(2)
|
Under a share repurchase program implemented effective June 10, 1998, the Company is authorized to repurchase shares of its common stock. On January 30, 2015, the Company’s Board of Directors increased the repurchase authorization to a total of 400 million shares as of that date. The repurchase program does not have an expiration date.
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2016
(1)
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2015
(2)
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2014
(3)
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2013
(4)
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2012
(5)
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||||||||||
Statements of income
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
55,632
|
|
|
$
|
52,465
|
|
|
$
|
48,813
|
|
|
$
|
45,041
|
|
|
$
|
42,278
|
|
Net income
|
9,790
|
|
|
8,852
|
|
|
8,004
|
|
|
6,636
|
|
|
6,173
|
|
|||||
Net income attributable to Disney
|
9,391
|
|
|
8,382
|
|
|
7,501
|
|
|
6,136
|
|
|
5,682
|
|
|||||
Per common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings attributable to Disney
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
$
|
5.73
|
|
|
$
|
4.90
|
|
|
$
|
4.26
|
|
|
$
|
3.38
|
|
|
$
|
3.13
|
|
Basic
|
5.76
|
|
|
4.95
|
|
|
4.31
|
|
|
3.42
|
|
|
3.17
|
|
|||||
Dividends
(6)
|
1.42
|
|
|
1.81
|
|
|
0.86
|
|
|
0.75
|
|
|
0.60
|
|
|||||
Balance sheets
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
92,033
|
|
|
$
|
88,182
|
|
|
$
|
84,141
|
|
|
$
|
81,197
|
|
|
$
|
74,863
|
|
Long-term obligations
|
24,189
|
|
|
19,142
|
|
|
18,573
|
|
|
17,293
|
|
|
17,841
|
|
|||||
Disney shareholders’ equity
|
43,265
|
|
|
44,525
|
|
|
44,958
|
|
|
45,429
|
|
|
39,759
|
|
|||||
Statements of cash flows
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided (used) by:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
13,213
|
|
|
$
|
10,909
|
|
|
$
|
9,780
|
|
|
$
|
9,452
|
|
|
$
|
7,966
|
|
Investing activities
|
(5,758
|
)
|
|
(4,245
|
)
|
|
(3,345
|
)
|
|
(4,676
|
)
|
|
(4,759
|
)
|
|||||
Financing activities
|
(6,991
|
)
|
|
(5,514
|
)
|
|
(6,710
|
)
|
|
(4,214
|
)
|
|
(2,985
|
)
|
(1)
|
The fiscal 2016 results include the Company’s share of a net gain recognized by A+E in connection with an acquisition of an interest in Vice ($0.13 per diluted share) (see Note 3 to the Consolidated Financial Statements), restructuring and impairment charges ($0.07 per diluted share) and a charge in connection with the discontinuation of our Infinity console game business ($0.05 per diluted share). These items collectively resulted in a net benefit of $0.01 per diluted share.
|
(2)
|
The fiscal 2015 results include the write-off of a deferred tax asset as a result of the Disneyland Paris recapitalization ($0.23 per diluted share) (see Note 6 to the Consolidated Financial Statements) and restructuring and impairment charges ($0.02 per diluted share), which collectively resulted in a net adverse impact of $0.25 per diluted share.
|
(3)
|
The fiscal 2014 results include a loss resulting from the foreign currency translation of net monetary assets denominated in Venezuelan currency ($0.05 per diluted share) (see Note 4 to the Consolidated Financial Statements), restructuring and impairment charges ($0.05 per diluted share), a gain on the sale of property ($0.03 per diluted share) and a portion of a settlement of an affiliate contract dispute ($0.01 per diluted share). These items collectively resulted in a net adverse impact of $0.06 per diluted share.
|
(4)
|
During fiscal 2013, the Company completed a $4.1 billion cash and stock acquisition of Lucasfilm Ltd. LLC. In addition, results for the year include a charge related to the Celador litigation ($0.11 per diluted share), restructuring and impairment charges ($0.07 per diluted share), a charge related to an equity redemption by Hulu ($0.02 per diluted share), favorable tax adjustments related to an increase in the amount of prior-year foreign earnings considered to be indefinitely reinvested outside of the United States and favorable tax adjustments related to pre-tax earnings of prior years ($0.12 per diluted share) and gains in connection with the sale of our equity interest in ESPN STAR Sports and certain businesses ($0.08 per diluted share). These items collectively resulted in a net adverse impact of $0.01 per diluted share.
|
(5)
|
The fiscal 2012 results include a non-cash gain in connection with the acquisition of a controlling interest in UTV ($0.06 per diluted share), a recovery of a previously written-off receivable from Lehman Brothers ($0.03 per diluted share), restructuring and impairment charges ($0.03 per diluted share) and costs related to refinancing Disneyland Paris debt (rounded to $0.00 per diluted share). These items collectively resulted in a net benefit of $0.06 per diluted share.
|
(6)
|
In fiscal 2015, the Company began paying dividends on a semiannual basis. Accordingly, fiscal 2015 includes dividend payments related to fiscal 2014 and the first half of fiscal 2015 (see Note 11 to the Consolidated Financial Statements).
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
vs. 2015 |
|
2015
vs. 2014 |
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
47,130
|
|
|
$
|
43,894
|
|
|
$
|
40,246
|
|
|
7
|
%
|
|
9
|
%
|
|
Products
|
8,502
|
|
|
8,571
|
|
|
8,567
|
|
|
(1
|
)%
|
|
—
|
%
|
|
|||
Total revenues
|
55,632
|
|
|
52,465
|
|
|
48,813
|
|
|
6
|
%
|
|
7
|
%
|
|
|||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of services (exclusive of depreciation and amortization)
|
(24,653
|
)
|
|
(23,191
|
)
|
|
(21,356
|
)
|
|
(6
|
)%
|
|
(9
|
)%
|
|
|||
Cost of products (exclusive of depreciation and amortization)
|
(5,340
|
)
|
|
(5,173
|
)
|
|
(5,064
|
)
|
|
(3
|
)%
|
|
(2
|
)%
|
|
|||
Selling, general, administrative and other
|
(8,754
|
)
|
|
(8,523
|
)
|
|
(8,565
|
)
|
|
(3
|
)%
|
|
—
|
%
|
|
|||
Depreciation and amortization
|
(2,527
|
)
|
|
(2,354
|
)
|
|
(2,288
|
)
|
|
(7
|
)%
|
|
(3
|
)%
|
|
|||
Total costs and expenses
|
(41,274
|
)
|
|
(39,241
|
)
|
|
(37,273
|
)
|
|
(5
|
)%
|
|
(5
|
)%
|
|
|||
Restructuring and impairment charges
|
(156
|
)
|
|
(53
|
)
|
|
(140
|
)
|
|
>(100)%
|
|
62
|
%
|
|
||||
Other expense, net
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
nm
|
|
|
100
|
%
|
|
|||
Interest income/(expense), net
|
(260
|
)
|
|
(117
|
)
|
|
23
|
|
|
>(100)%
|
|
nm
|
|
|
||||
Equity in the income of investees
|
926
|
|
|
814
|
|
|
854
|
|
|
14
|
%
|
|
(5
|
)%
|
|
|||
Income before income taxes
|
14,868
|
|
|
13,868
|
|
|
12,246
|
|
|
7
|
%
|
|
13
|
%
|
|
|||
Income taxes
|
(5,078
|
)
|
|
(5,016
|
)
|
|
(4,242
|
)
|
|
(1
|
)%
|
|
(18
|
)%
|
|
|||
Net income
|
9,790
|
|
|
8,852
|
|
|
8,004
|
|
|
11
|
%
|
|
11
|
%
|
|
|||
Less: Net income attributable to noncontrolling interests
|
(399
|
)
|
|
(470
|
)
|
|
(503
|
)
|
|
15
|
%
|
|
7
|
%
|
|
|||
Net income attributable to The Walt Disney Company (Disney)
|
$
|
9,391
|
|
|
$
|
8,382
|
|
|
$
|
7,501
|
|
|
12
|
%
|
|
12
|
%
|
|
Earnings per share attributable to Disney:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted
|
$
|
5.73
|
|
|
$
|
4.90
|
|
|
$
|
4.26
|
|
|
17
|
%
|
|
15
|
%
|
|
Basic
|
$
|
5.76
|
|
|
$
|
4.95
|
|
|
$
|
4.31
|
|
|
16
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
1,639
|
|
|
1,709
|
|
|
1,759
|
|
|
|
|
|
|
|||||
Basic
|
1,629
|
|
|
1,694
|
|
|
1,740
|
|
|
|
|
|
|
•
|
Consolidated Results and Non-Segment Items
|
•
|
Business Segment Results —
2016 vs. 2015
|
•
|
Business Segment Results —
2015 vs. 2014
|
•
|
Corporate and Unallocated Shared Expenses
|
•
|
Pension and Postretirement Medical Benefit Costs
|
•
|
Liquidity and Capital Resources
|
•
|
Contractual Obligations, Commitments and Off Balance Sheet Arrangements
|
•
|
Critical Accounting Policies and Estimates
|
•
|
Forward-Looking Statements
|
(in millions)
|
|
2016
|
|
2015
|
|
% Change
Better/(Worse)
|
||||||
Interest expense
|
|
$
|
(354
|
)
|
|
$
|
(265
|
)
|
|
(34
|
)%
|
|
Interest and investment income
|
|
94
|
|
|
148
|
|
|
(36
|
)%
|
|
||
Interest income/(expense), net
|
|
$
|
(260
|
)
|
|
$
|
(117
|
)
|
|
>(100
|
)%
|
|
|
2016
|
|
2015
|
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
34.2
|
%
|
|
36.2
|
%
|
|
2.0
|
|
ppt
|
(in millions)
|
2015
|
|
2014
|
||||
Venezuelan foreign currency translation loss
|
$
|
—
|
|
|
$
|
(143
|
)
|
Gain on sale of property and other
|
—
|
|
|
112
|
|
||
Other expense, net
|
$
|
—
|
|
|
$
|
(31
|
)
|
(in millions)
|
|
2015
|
|
2014
|
|
% Change
Better/(Worse)
|
||||||
Interest expense
|
|
$
|
(265
|
)
|
|
$
|
(294
|
)
|
|
10
|
%
|
|
Interest and investment income
|
|
148
|
|
|
317
|
|
|
(53
|
)%
|
|
||
Interest income/(expense), net
|
|
$
|
(117
|
)
|
|
$
|
23
|
|
|
nm
|
|
|
|
2015
|
|
2014
|
|
Change
Better/(Worse)
|
||||
Effective income tax rate
|
36.2
|
%
|
|
34.6
|
%
|
|
(1.6
|
)
|
ppt
|
•
|
The $332 million Vice Gain
|
•
|
Restructuring and impairment charges totaling $156 million
|
•
|
The $129 million Infinity Charge
|
•
|
The $399 million Disneyland Paris Tax Asset Write-off
|
•
|
Restructuring and impairment charges totaling $53 million
|
•
|
A Venezuelan foreign currency translation loss of $143 million
|
•
|
Restructuring and impairment charges totaling $140 million
|
•
|
A $77 million gain on the sale of a property
|
•
|
Income of $29 million representing a portion of a settlement of an affiliate contract dispute
|
(in millions, except per share data)
|
Pre-Tax Income/(Loss)
|
|
Tax Benefit/(Expense)
(1)
|
|
After-Tax Income/(Loss)
|
|
EPS Favorable/(Adverse)
(2)
|
||||||||
Year Ended October 1, 2016:
|
|
|
|
|
|
|
|
||||||||
Vice Gain
|
$
|
332
|
|
|
$
|
(122
|
)
|
|
$
|
210
|
|
|
$
|
0.13
|
|
Restructuring and impairment charges
|
(156
|
)
|
|
43
|
|
|
(113
|
)
|
|
(0.07
|
)
|
||||
Infinity Charge
(3)
|
(129
|
)
|
|
47
|
|
|
(82
|
)
|
|
(0.05
|
)
|
||||
Total
|
$
|
47
|
|
|
$
|
(32
|
)
|
|
$
|
15
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended October 3, 2015:
|
|
|
|
|
|
|
|
||||||||
Disneyland Paris Tax Asset Write-off
|
$
|
—
|
|
|
$
|
(399
|
)
|
|
$
|
(399
|
)
|
|
$
|
(0.23
|
)
|
Restructuring and impairment charges
|
(53
|
)
|
|
20
|
|
|
(33
|
)
|
|
(0.02
|
)
|
||||
Total
|
$
|
(53
|
)
|
|
$
|
(379
|
)
|
|
$
|
(432
|
)
|
|
$
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
||||||||
Year Ended September 27, 2014:
|
|
|
|
|
|
|
|
||||||||
Venezuela foreign currency translation loss
(4)
|
$
|
(143
|
)
|
|
$
|
53
|
|
|
$
|
(90
|
)
|
|
$
|
(0.05
|
)
|
Restructuring and impairment charges
|
(140
|
)
|
|
48
|
|
|
(92
|
)
|
|
(0.05
|
)
|
||||
Gain on sale of property
|
77
|
|
|
(28
|
)
|
|
49
|
|
|
0.03
|
|
||||
Settlement income and other
|
35
|
|
|
(13
|
)
|
|
22
|
|
|
0.01
|
|
||||
Total
|
$
|
(171
|
)
|
|
$
|
60
|
|
|
$
|
(111
|
)
|
|
$
|
(0.06
|
)
|
(1)
|
Tax benefit/expense adjustments are determined using the tax rate applicable to the individual item affecting comparability.
|
(2)
|
EPS is net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding.
|
(3)
|
Recorded in “Cost of products” in the Consolidated Statements of Income. See Note 1 to the Consolidated Financial Statements.
|
(4)
|
Recorded in “Other expense, net” in the Consolidated Statements of Income. See Note 4 to the Consolidated Financial Statements.
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
|
||||||||||
(in millions)
|
2016
|
|
2015
|
|
2014
|
|
2016
vs. 2015 |
|
2015
vs. 2014 |
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
23,689
|
|
|
$
|
23,264
|
|
|
$
|
21,152
|
|
|
2
|
%
|
|
10
|
%
|
|
Parks and Resorts
|
16,974
|
|
|
16,162
|
|
|
15,099
|
|
|
5
|
%
|
|
7
|
%
|
|
|||
Studio Entertainment
|
9,441
|
|
|
7,366
|
|
|
7,278
|
|
|
28
|
%
|
|
1
|
%
|
|
|||
Consumer Products & Interactive Media
|
5,528
|
|
|
5,673
|
|
|
5,284
|
|
|
(3
|
)%
|
|
7
|
%
|
|
|||
|
$
|
55,632
|
|
|
$
|
52,465
|
|
|
$
|
48,813
|
|
|
6
|
%
|
|
7
|
%
|
|
Segment operating income:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Media Networks
|
$
|
7,755
|
|
|
$
|
7,793
|
|
|
$
|
7,321
|
|
|
—
|
%
|
|
6
|
%
|
|
Parks and Resorts
|
3,298
|
|
|
3,031
|
|
|
2,663
|
|
|
9
|
%
|
|
14
|
%
|
|
|||
Studio Entertainment
|
2,703
|
|
|
1,973
|
|
|
1,549
|
|
|
37
|
%
|
|
27
|
%
|
|
|||
Consumer Products & Interactive Media
|
1,965
|
|
|
1,884
|
|
|
1,472
|
|
|
4
|
%
|
|
28
|
%
|
|
|||
|
$
|
15,721
|
|
|
$
|
14,681
|
|
|
$
|
13,005
|
|
|
7
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
% Change
Better/(Worse)
|
|
||||||||||
(in millions)
|
2016
|
|
2015
|
|
2014
|
|
2016
vs. 2015 |
|
2015
vs. 2014 |
|
||||||||
Segment operating income
|
$
|
15,721
|
|
|
$
|
14,681
|
|
|
$
|
13,005
|
|
|
7
|
%
|
|
13
|
%
|
|
Corporate and unallocated shared expenses
|
(640
|
)
|
|
(643
|
)
|
|
(611
|
)
|
|
—
|
%
|
|
(5
|
)%
|
|
|||
Restructuring and impairment charges
|
(156
|
)
|
|
(53
|
)
|
|
(140
|
)
|
|
>(100
|
)%
|
|
62
|
%
|
|
|||
Other expense, net
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
nm
|
|
|
100
|
%
|
|
|||
Interest income/(expense), net
|
(260
|
)
|
|
(117
|
)
|
|
23
|
|
|
>(100
|
)%
|
|
nm
|
|
|
|||
Vice Gain
(1)
|
332
|
|
|
—
|
|
|
—
|
|
|
nm
|
|
|
nm
|
|
|
|||
Infinity Charge
(2)
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
nm
|
|
|
nm
|
|
|
|||
Income before income taxes
|
$
|
14,868
|
|
|
$
|
13,868
|
|
|
$
|
12,246
|
|
|
7
|
%
|
|
13
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
12,259
|
|
|
$
|
12,029
|
|
|
2
|
%
|
|
Advertising
|
8,509
|
|
|
8,361
|
|
|
2
|
%
|
|
||
TV/SVOD distribution and other
|
2,921
|
|
|
2,874
|
|
|
2
|
%
|
|
||
Total revenues
|
23,689
|
|
|
23,264
|
|
|
2
|
%
|
|
||
Operating expenses
|
(13,571
|
)
|
|
(13,150
|
)
|
|
(3
|
)%
|
|
||
Selling, general, administrative and other
|
(2,705
|
)
|
|
(2,869
|
)
|
|
6
|
%
|
|
||
Depreciation and amortization
|
(255
|
)
|
|
(266
|
)
|
|
4
|
%
|
|
||
Equity in the income of investees
|
597
|
|
|
814
|
|
|
(27
|
)%
|
|
||
Operating Income
|
$
|
7,755
|
|
|
$
|
7,793
|
|
|
—
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
16,632
|
|
|
$
|
16,581
|
|
|
—
|
%
|
|
Broadcasting
|
7,057
|
|
|
6,683
|
|
|
6
|
%
|
|
||
|
$
|
23,689
|
|
|
$
|
23,264
|
|
|
2
|
%
|
|
Segment operating income
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
6,748
|
|
|
$
|
6,787
|
|
|
(1
|
)%
|
|
Broadcasting
|
1,007
|
|
|
1,006
|
|
|
—
|
%
|
|
||
|
$
|
7,755
|
|
|
$
|
7,793
|
|
|
—
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Segment operating income
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
5,965
|
|
|
$
|
5,891
|
|
|
1
|
%
|
|
Broadcasting
|
1,193
|
|
|
1,088
|
|
|
10
|
%
|
|
||
Equity in the income of investees
|
597
|
|
|
814
|
|
|
(27
|
)%
|
|
||
|
$
|
7,755
|
|
|
$
|
7,793
|
|
|
—
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
14,242
|
|
|
$
|
13,611
|
|
|
5
|
%
|
|
International
|
2,732
|
|
|
2,551
|
|
|
7
|
%
|
|
||
Total revenues
|
16,974
|
|
|
16,162
|
|
|
5
|
%
|
|
||
Operating expenses
|
(10,039
|
)
|
|
(9,730
|
)
|
|
(3
|
)%
|
|
||
Selling, general, administrative and other
|
(1,913
|
)
|
|
(1,884
|
)
|
|
(2
|
)%
|
|
||
Depreciation and amortization
|
(1,721
|
)
|
|
(1,517
|
)
|
|
(13
|
)%
|
|
||
Equity in the loss of investees
|
(3
|
)
|
|
—
|
|
|
nm
|
|
|
||
Operating Income
|
$
|
3,298
|
|
|
$
|
3,031
|
|
|
9
|
%
|
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Fiscal Year 2016
|
|
Fiscal Year 2015
|
|
Fiscal Year 2016
|
|
Fiscal Year 2015
|
|
Fiscal Year 2016
|
|
Fiscal Year 2015
|
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/ (decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
(1
|
)%
|
|
7
|
%
|
|
5
|
%
|
|
—
|
%
|
|
1
|
%
|
|
5
|
%
|
||||||
Per Capita Guest Spending
|
7
|
%
|
|
4
|
%
|
|
5
|
%
|
|
5
|
%
|
|
7
|
%
|
|
4
|
%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
89
|
%
|
|
87
|
%
|
|
78
|
%
|
|
79
|
%
|
|
87
|
%
|
|
86
|
%
|
||||||
Available Room Nights
(in thousands)
|
10,382
|
|
|
10,644
|
|
|
2,600
|
|
|
2,473
|
|
|
12,982
|
|
|
13,117
|
|
||||||
Per Room Guest Spending
|
|
$305
|
|
|
|
$295
|
|
|
|
$285
|
|
|
|
$295
|
|
|
|
$302
|
|
|
|
$295
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate as well as guest spending on food, beverage and merchandise at the hotels. Hotel statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal 2015 average foreign exchange rate. The euro to U.S. dollar weighted average foreign currency exchange rate was $1.11 and $1.15 for fiscal years
2016
and
2015
, respectively.
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
3,672
|
|
|
$
|
2,321
|
|
|
58
|
%
|
|
Home entertainment
|
2,108
|
|
|
1,799
|
|
|
17
|
%
|
|
||
TV/SVOD distribution and other
|
3,661
|
|
|
3,246
|
|
|
13
|
%
|
|
||
Total revenues
|
9,441
|
|
|
7,366
|
|
|
28
|
%
|
|
||
Operating expenses
|
(3,991
|
)
|
|
(3,050
|
)
|
|
(31
|
)%
|
|
||
Selling, general, administrative and other
|
(2,622
|
)
|
|
(2,204
|
)
|
|
(19
|
)%
|
|
||
Depreciation and amortization
|
(125
|
)
|
|
(139
|
)
|
|
10
|
%
|
|
||
Operating Income
|
$
|
2,703
|
|
|
$
|
1,973
|
|
|
37
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 1, 2016
|
|
October 3, 2015
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Licensing, publishing and games
|
$
|
3,819
|
|
|
$
|
3,850
|
|
|
(1
|
)%
|
|
Retail and other
|
1,709
|
|
|
1,823
|
|
|
(6
|
)%
|
|
||
Total revenues
|
5,528
|
|
|
5,673
|
|
|
(3
|
)%
|
|
||
Operating expenses
|
(2,263
|
)
|
|
(2,434
|
)
|
|
7
|
%
|
|
||
Selling, general, administrative and other
|
(1,125
|
)
|
|
(1,172
|
)
|
|
4
|
%
|
|
||
Depreciation and amortization
|
(175
|
)
|
|
(183
|
)
|
|
4
|
%
|
|
||
Operating Income
|
$
|
1,965
|
|
|
$
|
1,884
|
|
|
4
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 3, 2015
|
|
September 27, 2014
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Affiliate fees
|
$
|
12,029
|
|
|
$
|
10,632
|
|
|
13
|
%
|
|
Advertising
|
8,361
|
|
|
8,031
|
|
|
4
|
%
|
|
||
TV/SVOD distribution and other
|
2,874
|
|
|
2,489
|
|
|
15
|
%
|
|
||
Total revenues
|
23,264
|
|
|
21,152
|
|
|
10
|
%
|
|
||
Operating expenses
|
(13,150
|
)
|
|
(11,794
|
)
|
|
(11
|
)%
|
|
||
Selling, general, administrative and other
|
(2,869
|
)
|
|
(2,643
|
)
|
|
(9
|
)%
|
|
||
Depreciation and amortization
|
(266
|
)
|
|
(250
|
)
|
|
(6
|
)%
|
|
||
Equity in the income of investees
|
814
|
|
|
856
|
|
|
(5
|
)%
|
|
||
Operating Income
|
$
|
7,793
|
|
|
$
|
7,321
|
|
|
6
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 3, 2015
|
|
September 27, 2014
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
16,581
|
|
|
$
|
15,110
|
|
|
10
|
%
|
|
Broadcasting
|
6,683
|
|
|
6,042
|
|
|
11
|
%
|
|
||
|
$
|
23,264
|
|
|
$
|
21,152
|
|
|
10
|
%
|
|
Segment operating income
|
|
|
|
|
|
|
|||||
Cable Networks
|
$
|
6,787
|
|
|
$
|
6,467
|
|
|
5
|
%
|
|
Broadcasting
|
1,006
|
|
|
854
|
|
|
18
|
%
|
|
||
|
$
|
7,793
|
|
|
$
|
7,321
|
|
|
6
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 3, 2015
|
|
September 27, 2014
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Domestic
|
$
|
13,611
|
|
|
$
|
12,329
|
|
|
10
|
%
|
|
International
|
2,551
|
|
|
2,770
|
|
|
(8
|
)%
|
|
||
Total revenues
|
16,162
|
|
|
15,099
|
|
|
7
|
%
|
|
||
Operating expenses
|
(9,730
|
)
|
|
(9,106
|
)
|
|
(7
|
)%
|
|
||
Selling, general, administrative and other
|
(1,884
|
)
|
|
(1,856
|
)
|
|
(2
|
)%
|
|
||
Depreciation and amortization
|
(1,517
|
)
|
|
(1,472
|
)
|
|
(3
|
)%
|
|
||
Equity in the loss of investees
|
—
|
|
|
(2
|
)
|
|
100
|
%
|
|
||
Operating Income
|
$
|
3,031
|
|
|
$
|
2,663
|
|
|
14
|
%
|
|
|
Domestic
|
|
International
(2)
|
|
Total
|
||||||||||||||||||
|
Fiscal Year 2015
|
|
Fiscal Year 2014
|
|
Fiscal Year 2015
|
|
Fiscal Year 2014
|
|
Fiscal Year 2015
|
|
Fiscal Year 2014
|
||||||||||||
Parks
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase/ (decrease)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attendance
|
7
|
%
|
|
3
|
%
|
|
—
|
%
|
|
(3
|
)%
|
|
5
|
%
|
|
1
|
%
|
||||||
Per Capita Guest Spending
|
4
|
%
|
|
7
|
%
|
|
5
|
%
|
|
7
|
%
|
|
4
|
%
|
|
7
|
%
|
||||||
Hotels
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Occupancy
|
87
|
%
|
|
83
|
%
|
|
79
|
%
|
|
78
|
%
|
|
86
|
%
|
|
82
|
%
|
||||||
Available Room Nights
(in thousands) |
10,644
|
|
|
10,470
|
|
|
2,473
|
|
|
2,466
|
|
|
13,117
|
|
|
12,936
|
|
||||||
Per Room Guest Spending
|
|
$295
|
|
|
|
$280
|
|
|
|
$335
|
|
|
|
$328
|
|
|
|
$302
|
|
|
|
$289
|
|
(1)
|
Per room guest spending consists of the average daily hotel room rate as well as guest spending on food, beverage and merchandise at the hotels. Hotel statistics include rentals of Disney Vacation Club units.
|
(2)
|
Per capita guest spending growth rate is stated on a constant currency basis. Per room guest spending is stated at the fiscal 2014 average foreign currency exchange rate. The euro to U.S. dollar weighted average foreign currency exchange rate was $1.15 and $1.36 for fiscal years 2015 and 2014, respectively.
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 3, 2015
|
|
September 27, 2014
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Theatrical distribution
|
$
|
2,321
|
|
|
$
|
2,431
|
|
|
(5
|
)%
|
|
Home entertainment
|
1,799
|
|
|
2,094
|
|
|
(14
|
)%
|
|
||
TV/SVOD distribution and other
|
3,246
|
|
|
2,753
|
|
|
18
|
%
|
|
||
Total revenues
|
7,366
|
|
|
7,278
|
|
|
1
|
%
|
|
||
Operating expenses
|
(3,050
|
)
|
|
(3,137
|
)
|
|
3
|
%
|
|
||
Selling, general, administrative and other
|
(2,204
|
)
|
|
(2,456
|
)
|
|
10
|
%
|
|
||
Depreciation and amortization
|
(139
|
)
|
|
(136
|
)
|
|
(2
|
)%
|
|
||
Operating Income
|
$
|
1,973
|
|
|
$
|
1,549
|
|
|
27
|
%
|
|
|
Year Ended
|
|
% Change
Better /
(Worse)
|
||||||||
(in millions)
|
October 3, 2015
|
|
September 27, 2014
|
|
|||||||
Revenues
|
|
|
|
|
|
|
|||||
Licensing, publishing and games
|
$
|
3,850
|
|
|
$
|
3,594
|
|
|
7
|
%
|
|
Retail and other
|
1,823
|
|
|
1,690
|
|
|
8
|
%
|
|
||
Total revenues
|
5,673
|
|
|
5,284
|
|
|
7
|
%
|
|
||
Operating expenses
|
(2,434
|
)
|
|
(2,383
|
)
|
|
(2
|
)%
|
|
||
Selling, general, administrative and other
|
(1,172
|
)
|
|
(1,238
|
)
|
|
5
|
%
|
|
||
Depreciation and amortization
|
(183
|
)
|
|
(191
|
)
|
|
4
|
%
|
|
||
Operating Income
|
$
|
1,884
|
|
|
$
|
1,472
|
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
% Change
Better/(Worse) |
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
2016
vs. 2015 |
|
2015
vs. 2014 |
|
||||||||
Corporate and unallocated shared expenses
|
|
$
|
(640
|
)
|
|
$
|
(643
|
)
|
|
$
|
(611
|
)
|
|
—
|
%
|
|
(5
|
)%
|
|
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash provided by operations
|
|
$
|
13,213
|
|
|
$
|
10,909
|
|
|
$
|
9,780
|
|
Cash used in investing activities
|
|
(5,758
|
)
|
|
(4,245
|
)
|
|
(3,345
|
)
|
|||
Cash used in financing activities
|
|
(6,991
|
)
|
|
(5,514
|
)
|
|
(6,710
|
)
|
|||
Impact of exchange rates on cash and cash equivalents
|
|
(123
|
)
|
|
(302
|
)
|
|
(235
|
)
|
|||
Change in cash and cash equivalents
|
|
$
|
341
|
|
|
$
|
848
|
|
|
$
|
(510
|
)
|
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Media Networks
|
|
|
|
|
|
|
||||||
Cable Networks
|
|
$
|
147
|
|
|
$
|
150
|
|
|
$
|
145
|
|
Broadcasting
|
|
90
|
|
|
95
|
|
|
93
|
|
|||
Total Media Networks
|
|
237
|
|
|
245
|
|
|
238
|
|
|||
Parks and Resorts
|
|
|
|
|
|
|
||||||
Domestic
|
|
1,273
|
|
|
1,169
|
|
|
1,117
|
|
|||
International
|
|
445
|
|
|
345
|
|
|
353
|
|
|||
Total Parks and Resorts
|
|
1,718
|
|
|
1,514
|
|
|
1,470
|
|
|||
Studio Entertainment
|
|
51
|
|
|
55
|
|
|
48
|
|
|||
Consumer Products & Interactive Media
|
|
63
|
|
|
69
|
|
|
69
|
|
|||
Corporate
|
|
251
|
|
|
249
|
|
|
239
|
|
|||
Total depreciation expense
|
|
$
|
2,320
|
|
|
$
|
2,132
|
|
|
$
|
2,064
|
|
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Media Networks
|
|
$
|
18
|
|
|
$
|
21
|
|
|
$
|
12
|
|
Parks and Resorts
|
|
3
|
|
|
3
|
|
|
2
|
|
|||
Studio Entertainment
|
|
74
|
|
|
84
|
|
|
88
|
|
|||
Consumer Products & Interactive Media
|
|
112
|
|
|
114
|
|
|
122
|
|
|||
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total amortization of intangible assets
|
|
$
|
207
|
|
|
$
|
222
|
|
|
$
|
224
|
|
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balances:
|
|
|
|
|
|
|
||||||
Production and programming assets
|
|
$
|
7,353
|
|
|
$
|
6,386
|
|
|
$
|
5,417
|
|
Programming liabilities
|
|
(989
|
)
|
|
(875
|
)
|
|
(928
|
)
|
|||
|
|
6,364
|
|
|
5,511
|
|
|
4,489
|
|
|||
Spending:
|
|
|
|
|
|
|
||||||
Television program licenses and rights
|
|
6,585
|
|
|
6,335
|
|
|
6,241
|
|
|||
Film and television production
|
|
4,632
|
|
|
4,701
|
|
|
4,221
|
|
|||
|
|
11,217
|
|
|
11,036
|
|
|
10,462
|
|
|||
Amortization:
|
|
|
|
|
|
|
||||||
Television program licenses and rights
|
|
(6,678
|
)
|
|
(6,482
|
)
|
|
(5,678
|
)
|
|||
Film and television production
|
|
(4,438
|
)
|
|
(3,632
|
)
|
|
(3,820
|
)
|
|||
|
|
(11,116
|
)
|
|
(10,114
|
)
|
|
(9,498
|
)
|
|||
Change in film and television production and
programming costs
|
|
101
|
|
|
922
|
|
|
964
|
|
|||
Other non-cash activity
|
|
19
|
|
|
(69
|
)
|
|
58
|
|
|||
Ending balances:
|
|
|
|
|
|
|
||||||
Production and programming assets
|
|
7,547
|
|
|
7,353
|
|
|
6,386
|
|
|||
Programming liabilities
|
|
(1,063
|
)
|
|
(989
|
)
|
|
(875
|
)
|
|||
|
|
$
|
6,484
|
|
|
$
|
6,364
|
|
|
$
|
5,511
|
|
(in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Media Networks
|
|
|
|
|
|
|
||||||
Cable Networks
|
|
$
|
86
|
|
|
$
|
127
|
|
|
$
|
172
|
|
Broadcasting
|
|
80
|
|
|
71
|
|
|
88
|
|
|||
Parks and Resorts
|
|
|
|
|
|
|
||||||
Domestic
|
|
2,180
|
|
|
1,457
|
|
|
1,184
|
|
|||
International
|
|
2,035
|
|
|
2,147
|
|
|
1,504
|
|
|||
Studio Entertainment
|
|
86
|
|
|
107
|
|
|
63
|
|
|||
Consumer Products & Interactive Media
|
|
53
|
|
|
87
|
|
|
48
|
|
|||
Corporate
|
|
253
|
|
|
269
|
|
|
252
|
|
|||
|
|
$
|
4,773
|
|
|
$
|
4,265
|
|
|
$
|
3,311
|
|
•
|
Higher common stock repurchases of $1.4 billion (
$7.5 billion
in the fiscal
2016
compared to
$6.1 billion
in fiscal
2015
)
|
•
|
Lower contributions from non-controlling interest holders (zero in fiscal
2016
compared to
$1.0 billion
in fiscal
2015
)
|
•
|
Lower dividend payments of $0.8 billion as a result of moving from an annual dividend to a semi-annual dividend. In fiscal 2015, we paid our full year fiscal year 2014 dividend and the first half of the fiscal 2015 dividend. In the current year, we paid the dividend for the second half of fiscal 2015 and the first half of fiscal 2016.
|
•
|
Higher net borrowings of
$0.2 billion
(
$2.9 billion
in fiscal
2016
compared to
$2.7 billion
in fiscal
2015
)
|
•
|
Higher net borrowings of $2.1 billion (
$2.7 billion
in fiscal
2015
compared to $0.6 billion in fiscal
2014
)
|
•
|
Higher contributions from non-controlling interest holders (
$1.0 billion
in fiscal 2015 compared to
$0.6 billion
in fiscal
2014
)
|
(in millions)
|
|
October 3, 2015
|
|
Borrowings
|
|
Payments
|
|
Other
Activity
|
|
October 1, 2016
|
||||||||||
Commercial paper with original maturities less than three months, net
(1)
|
|
$
|
2,330
|
|
|
$
|
—
|
|
|
$
|
(1,559
|
)
|
|
$
|
6
|
|
|
$
|
777
|
|
Commercial paper with original maturities greater than three months
|
|
100
|
|
|
4,794
|
|
|
(4,155
|
)
|
|
5
|
|
|
744
|
|
|||||
U.S. medium-term notes
|
|
13,873
|
|
|
4,948
|
|
|
(2,000
|
)
|
|
6
|
|
|
16,827
|
|
|||||
International Theme Parks borrowings
(2)
|
|
319
|
|
|
896
|
|
|
—
|
|
|
(128
|
)
|
|
1,087
|
|
|||||
Foreign currency denominated debt and other obligations
(3)
|
|
714
|
|
|
221
|
|
|
(205
|
)
|
|
5
|
|
|
735
|
|
|||||
Total
|
|
$
|
17,336
|
|
|
$
|
10,859
|
|
|
$
|
(7,919
|
)
|
|
$
|
(106
|
)
|
|
$
|
20,170
|
|
(1)
|
Borrowings and reductions of borrowings are reported net.
|
(2)
|
The other activity is primarily the conversion of Hong Kong Disneyland Resort debt into equity and the impact of changes in foreign currency exchange rates. See Note 6 to the Consolidated Financial Statements for further discussion of this transaction.
|
(3)
|
The other activity is primarily market value adjustments for debt with qualifying hedges.
|
|
|
Payments Due by Period
|
||||||||||||||||||
(in millions)
|
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
4-5
Years
|
|
More than
5 Years
|
||||||||||
Borrowings (Note 8)
(1)
|
|
$
|
26,985
|
|
|
$
|
4,176
|
|
|
$
|
5,484
|
|
|
$
|
3,781
|
|
|
$
|
13,544
|
|
Operating lease commitments (Note 14)
|
|
3,106
|
|
|
477
|
|
|
705
|
|
|
505
|
|
|
1,419
|
|
|||||
Capital lease obligations (Note 14)
|
|
601
|
|
|
35
|
|
|
41
|
|
|
30
|
|
|
495
|
|
|||||
Sports programming commitments (Note 14)
|
|
48,693
|
|
|
5,761
|
|
|
11,697
|
|
|
12,296
|
|
|
18,939
|
|
|||||
Broadcast programming commitments (Note 14)
|
|
2,317
|
|
|
358
|
|
|
539
|
|
|
434
|
|
|
986
|
|
|||||
Total sports and other broadcast programming commitments
|
|
51,010
|
|
|
6,119
|
|
|
12,236
|
|
|
12,730
|
|
|
19,925
|
|
|||||
Other
(2)
|
|
6,647
|
|
|
1,880
|
|
|
1,508
|
|
|
692
|
|
|
2,567
|
|
|||||
Total contractual obligations
(3)
|
|
$
|
88,349
|
|
|
$
|
12,687
|
|
|
$
|
19,974
|
|
|
$
|
17,738
|
|
|
$
|
37,950
|
|
(1)
|
Amounts exclude market value adjustments totaling
$146 million
, which are recorded in the balance sheet. Amounts include interest payments based on contractual terms for fixed rate debt and on current interest rates for variable rate debt. In 2023, the Company has the ability to call a debt instrument prior to its scheduled maturity, which if exercised by the Company would reduce future interest payments by $1.1 billion.
|
(2)
|
Other commitments primarily comprise contractual commitments for the construction of two new cruise ships, creative talent and employment agreements and unrecognized tax benefits. Creative talent and employment agreements include obligations to actors, producers, sports, television and radio personalities and executives.
|
(3)
|
Contractual commitments include the following:
|
Liabilities recorded on the balance sheet
|
$
|
20,807
|
|
Commitments not recorded on the balance sheet
|
67,542
|
|
|
|
$
|
88,349
|
|
Fiscal Year 2016
|
|
Interest Rate
Sensitive
Financial
Instruments
|
|
Currency
Sensitive
Financial
Instruments
|
|
Equity
Sensitive
Financial
Instruments
|
|
Commodity Sensitive Financial Instruments
|
|
Combined
Portfolio
|
||||||||||
Year end fiscal 2016 VAR
|
|
$
|
74
|
|
|
$
|
60
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
113
|
|
Average VAR
|
|
$
|
69
|
|
|
$
|
65
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
99
|
|
Highest VAR
|
|
$
|
76
|
|
|
$
|
73
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
113
|
|
Lowest VAR
|
|
$
|
52
|
|
|
$
|
60
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
88
|
|
Year end fiscal 2015 VAR
|
|
$
|
65
|
|
|
$
|
64
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
109
|
|
(1)
|
Financial Statements and Schedules
|
(2)
|
Exhibits
|
|
|
Exhibit
|
|
Location
|
|
3.1
|
|
|
Restated Certificate of Incorporation of the Company
|
|
Filed herewith
|
3.2
|
|
|
Bylaws of the Company
|
|
Exhibit 3.2 to the Current Report on Form 8-K of the Company filed June 29, 2016
|
4.1
|
|
|
Five-Year Credit Agreement dated as of March 14, 2014
|
|
Exhibit 10.12 to the Current Report on Form 8-K of the Company, filed March 20, 2014
|
4.2
|
|
|
Five-Year Credit Agreement dated as of March 11, 2016
|
|
Exhibit 10.2 to the Current Report on Form 8-K of the Company filed March 14, 2016
|
4.3
|
|
|
364 Day Credit Agreement dated as of March 11, 2016
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed March 14, 2016
|
4.4
|
|
|
Senior Debt Securities Indenture, dated as of September 24, 2001, between the Company and Wells Fargo Bank, N.A., as Trustee
|
|
Exhibit 4.1 to the Current Report on Form 8-K of the Company, filed September 24, 2001
|
4.5
|
|
|
Other long-term borrowing instruments are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Company undertakes to furnish copies of such instruments to the Commission upon request
|
|
|
10.1
|
|
|
Amended and Restated Employment Agreement, dated as of October 6, 2011, between the Company and Robert A. Iger
|
|
Exhibit 10.1 to the Form 10-K of the Company for the fiscal year ended October 1, 2011
|
10.2
|
|
|
Amendment dated July 1, 2013 to Amended and Restated Employment Agreement, dated as of October 6, 2011, between the Company and Robert A. Iger
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed July 1, 2013
|
10.3
|
|
|
Amendment dated October 2, 2014 to Amended and Restated Employment Agreement, dated as of October 6, 2011, between the Company and Robert A. Iger
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed October 3, 2014
|
10.4
|
|
|
Employment Agreement dated as of February 4, 2015 between the Company and Thomas O. Staggs
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed February 5, 2015
|
10.5
|
|
|
Employment Agreement, dated as of September 27, 2013 between the Company and Alan N. Braverman
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed October 2, 2013
|
10.6
|
|
|
Amendment dated February 4, 2015 to the Employment Agreement dated as of September 27, 2013 between the Company and Alan N. Braverman
|
|
Exhibit 10.2 to the Current Report on Form 8-K of the Company filed February 5, 2015
|
10.7
|
|
|
Employment Agreement dated as of July 1, 2015 between the Company and Kevin A. Mayer
|
|
Exhibit 10.2 to the Current Report on Form 8-K of the Company filed June 30, 2015
|
10.8
|
|
|
Employment Agreement dated November 16, 2012 and effective as of September 1, 2012 between the Company and Jayne Parker
|
|
Exhibit 10.1 to the Form 10-K of the Company for the fiscal year ended September 29, 2012
|
10.9
|
|
|
Employment Agreement dated as of July 1, 2015 between the Company and Christine M. McCarthy
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed June 30, 2015
|
10.10
|
|
|
Voluntary Non-Qualified Deferred Compensation Plan
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed December 23, 2014
|
10.11
|
|
|
Description of Directors Compensation
|
|
Exhibit 10.1 to the Form 10-Q of the Company for the quarter ended July 2, 2016
|
10.12
|
|
|
Form of Indemnification Agreement for certain officers and directors
|
|
Annex C to the Proxy Statement for the 1987 annual meeting of DEI
|
|
|
Exhibit
|
|
Location
|
|
10.13
|
|
|
1995 Stock Option Plan for Non-Employee Directors
|
|
Exhibit 20 to the Form S-8 Registration Statement (No. 33-57811) of DEI, dated Feb. 23, 1995
|
10.14
|
|
|
Amended and Restated 2002 Executive Performance Plan
|
|
Annex A to the Proxy Statement for the 2013 Annual Meeting of the Registrant
|
10.15
|
|
|
Management Incentive Bonus Program
|
|
The portions of the tables labeled “Performance based Bonus” in the sections of the Proxy Statement for the 2016 annual meeting of the Company titled “2015 Total Direct Compensation” and “Compensation Process” and the section of the Proxy Statement titled “Performance Goals”
|
10.16
|
|
|
Amended and Restated 1997 Non-Employee Directors Stock and Deferred Compensation Plan
|
|
Annex II to the Proxy Statement for the 2003 annual meeting of the Company
|
10.17
|
|
|
Amended and Restated The Walt Disney Company/Pixar 2004 Equity Incentive Plan
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed December 1, 2006
|
10.18
|
|
|
Amended and Restated 2011 Stock Incentive Plan
|
|
Exhibit 10.1 to the Form 8-K of the Company filed March 16, 2012
|
10.19
|
|
|
Disney Key Employees Retirement Savings Plan
|
|
Exhibit 10.1 to the Form 10-Q of the Company for the quarter ended July 2, 2011
|
10.20
|
|
|
Amendments dated April 30, 2015 to the Amended and Restated The Walt Disney Productions and Associated Companies Key Employees Deferred Compensation and Retirement Plan, Amended and Restated Benefit Equalization Plan of ABC, Inc. and Disney Key Employees Retirement Savings Plan
|
|
Exhibit 10.3 to the Form 10-Q of the Company for the quarter ended March 28, 2015
|
10.21
|
|
|
Group Personal Excess Liability Insurance Plan
|
|
Exhibit 10(x) to the Form 10-K of the Company for the period ended September 30, 1997
|
10.22
|
|
|
Amended and Restated Severance Pay Plan
|
|
Exhibit 10.4 to the Form 10-Q of the Company for the quarter ended December 27, 2008
|
10.23
|
|
|
Form of Restricted Stock Unit Award Agreement (Time-Based Vesting)
|
|
Exhibit 10(aa) to the Form 10-K of the Company for the period ended September 30, 2004
|
10.24
|
|
|
Form of Performance-Based Stock Unit Award Agreement (Section 162(m) Vesting Requirement)
|
|
Exhibit 10.2 to the Form 10-Q of the Company for the quarter ended April 2, 2011
|
10.25
|
|
|
Form of Performance-Based Stock Unit Award Agreement (Three-Year Vesting subject to Total Shareholder Return/EPS Growth Tests/
Section 162(m) Vesting Requirement)
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company filed January 11, 2013
|
10.26
|
|
|
Form of Non-Qualified Stock Option Award Agreement
|
|
Exhibit 10.4 to the Form 10-Q of the Company for the quarter ended April 2, 2011
|
10.27
|
|
|
Disney Savings and Investment Plan as Amended and Restated Effective January 1, 2010
|
|
Exhibit 10.1 to the Form 10-Q of the Company for the quarter ended July 3, 2010
|
10.28
|
|
|
First Amendment dated December 13, 2011 to the Disney Savings and Investment Plan as amended and restated effective January 1, 2010
|
|
Exhibit 10.1 to the Form 10-Q of the Company for the quarter ended December 31, 2011
|
10.29
|
|
|
Second Amendment dated December 3, 2012 to the Disney Savings and Investment Plan
|
|
Exhibit 10.2 to the Form 10-Q of the Company for the quarter ended December 29, 2012
|
10.30
|
|
|
Third Amendment dated December 18, 2014 to the Disney Savings and Investment Plan
|
|
Exhibit 10.4 to the Form 10-Q of the Company for the quarter ended March 28, 2015
|
10.31
|
|
|
Fourth Amendment dated April 30, 2015 to the Disney Savings and Investment Plan
|
|
Exhibit 10.5 to the Form 10-Q of the Company for the quarter ended March 28, 2015
|
|
|
Exhibit
|
|
Location
|
|
12.1
|
|
|
Ratio of earnings to fixed charges
|
|
Filed herewith
|
21
|
|
|
Subsidiaries of the Company
|
|
Filed herewith
|
23
|
|
|
Consent of PricewaterhouseCoopers LLP
|
|
Filed herewith
|
31(a)
|
|
|
Rule 13a-14(a) Certification of Chief Executive Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
31(b)
|
|
|
Rule 13a-14(a) Certification of Chief Financial Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
32(a)
|
|
|
Section 1350 Certification of Chief Executive Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Furnished herewith
|
32(b)
|
|
|
Section 1350 Certification of Chief Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Furnished herewith
|
101
|
|
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended October 1, 2016 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Equity and (vi) related notes
|
|
Filed herewith
|
|
|
*
|
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.
|
|
|
|
|
|
THE WALT DISNEY COMPANY
|
|
|
|
|
|
(Registrant)
|
Date:
|
November 23, 2016
|
|
By:
|
|
/s/ ROBERT A. IGER
|
|
|
|
|
|
(Robert A. Iger,
|
|
|
|
|
|
Chairman and Chief Executive Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
Principal Executive Officer
|
|
|
|
|
/s/ ROBERT A. IGER
|
|
Chairman and Chief Executive Officer
|
|
November 23, 2016
|
(Robert A. Iger)
|
|
|
|
|
|
|
|
||
Principal Financial and Accounting Officers
|
|
|
|
|
/s/ CHRISTINE M. MCCARTHY
|
|
Senior Executive Vice President
and Chief Financial Officer
|
|
November 23, 2016
|
(Christine M. McCarthy)
|
|
|
|
|
|
|
|
||
/s/ BRENT A. WOODFORD
|
|
Executive Vice President-Controllership, Financial Planning and Tax
|
|
November 23, 2016
|
(Brent A. Woodford)
|
|
|
|
|
|
|
|
||
Directors
|
|
|
|
|
/s/ SUSAN E. ARNOLD
|
|
Director
|
|
November 23, 2016
|
(Susan E. Arnold)
|
|
|
|
|
|
|
|
||
/s/ JOHN S. CHEN
|
|
Director
|
|
November 23, 2016
|
(John S. Chen)
|
|
|
|
|
|
|
|
||
/s/ JACK DORSEY
|
|
Director
|
|
November 23, 2016
|
(Jack Dorsey)
|
|
|
|
|
|
|
|
||
/s/ ROBERT A. IGER
|
|
Chairman of the Board and Director
|
|
November 23, 2016
|
(Robert A. Iger)
|
|
|
|
|
|
|
|
||
/s/ MARIA ELENA LAGOMASINO
|
|
Director
|
|
November 23, 2016
|
(Maria Elena Lagomasino)
|
|
|
|
|
|
|
|
||
/s/ FRED H. LANGHAMMER
|
|
Director
|
|
November 23, 2016
|
(Fred H. Langhammer)
|
|
|
|
|
|
|
|
||
/s/ AYLWIN B. LEWIS
|
|
Director
|
|
November 23, 2016
|
(Aylwin B. Lewis)
|
|
|
|
|
|
|
|
||
/s/ ROBERT W. MATSCHULLAT
|
|
Director
|
|
November 23, 2016
|
(Robert W. Matschullat)
|
|
|
|
|
|
|
|
||
/s/ MARK G. PARKER
|
|
Director
|
|
November 23, 2016
|
(Mark G. Parker)
|
|
|
|
|
|
|
|
|
|
/s/ SHERYL SANDBERG
|
|
Director
|
|
November 23, 2016
|
(Sheryl Sandberg)
|
|
|
|
|
|
|
|
||
/s/ ORIN C. SMITH
|
|
Director
|
|
November 23, 2016
|
(Orin C. Smith)
|
|
|
|
|
|
Page
|
Management’s Report on Internal Control Over Financial Reporting
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Financial Statements of The Walt Disney Company and Subsidiaries
|
|
Consolidated Statements of Income for the Years Ended October 1, 2016, October 3, 2015 and September 27, 2014
|
|
Consolidated Statements of Comprehensive Income for the Years Ended October 1, 2016, October 3, 2015 and September 27, 2014
|
|
Consolidated Balance Sheets as of October 1, 2016 and October 3, 2015
|
|
Consolidated Statements of Cash Flows for the Years Ended October 1, 2016, October 3, 2015 and September 27, 2014
|
|
Consolidated Statements of Shareholders’ Equity for the Years Ended October 1, 2016, October 3, 2015 and September 27, 2014
|
|
Notes to Consolidated Financial Statements
|
|
Quarterly Financial Summary (unaudited)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Services
|
$
|
47,130
|
|
|
$
|
43,894
|
|
|
$
|
40,246
|
|
Products
|
8,502
|
|
|
8,571
|
|
|
8,567
|
|
|||
Total revenues
|
55,632
|
|
|
52,465
|
|
|
48,813
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization)
|
(24,653
|
)
|
|
(23,191
|
)
|
|
(21,356
|
)
|
|||
Cost of products (exclusive of depreciation and amortization)
|
(5,340
|
)
|
|
(5,173
|
)
|
|
(5,064
|
)
|
|||
Selling, general, administrative and other
|
(8,754
|
)
|
|
(8,523
|
)
|
|
(8,565
|
)
|
|||
Depreciation and amortization
|
(2,527
|
)
|
|
(2,354
|
)
|
|
(2,288
|
)
|
|||
Total costs and expenses
|
(41,274
|
)
|
|
(39,241
|
)
|
|
(37,273
|
)
|
|||
Restructuring and impairment charges
|
(156
|
)
|
|
(53
|
)
|
|
(140
|
)
|
|||
Other expense, net
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||
Interest income/(expense), net
|
(260
|
)
|
|
(117
|
)
|
|
23
|
|
|||
Equity in the income of investees
|
926
|
|
|
814
|
|
|
854
|
|
|||
Income before income taxes
|
14,868
|
|
|
13,868
|
|
|
12,246
|
|
|||
Income taxes
|
(5,078
|
)
|
|
(5,016
|
)
|
|
(4,242
|
)
|
|||
Net income
|
9,790
|
|
|
8,852
|
|
|
8,004
|
|
|||
Less: Net income attributable to noncontrolling interests
|
(399
|
)
|
|
(470
|
)
|
|
(503
|
)
|
|||
Net income attributable to The Walt Disney Company (Disney)
|
$
|
9,391
|
|
|
$
|
8,382
|
|
|
$
|
7,501
|
|
|
|
|
|
|
|
||||||
Earnings per share attributable to Disney:
|
|
|
|
|
|
||||||
Diluted
|
$
|
5.73
|
|
|
$
|
4.90
|
|
|
$
|
4.26
|
|
Basic
|
$
|
5.76
|
|
|
$
|
4.95
|
|
|
$
|
4.31
|
|
|
|
|
|
|
|
||||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
|
|
||||||
Diluted
|
1,639
|
|
|
1,709
|
|
|
1,759
|
|
|||
Basic
|
1,629
|
|
|
1,694
|
|
|
1,740
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share
|
$
|
1.42
|
|
|
$
|
1.81
|
|
|
$
|
0.86
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net Income
|
$
|
9,790
|
|
|
$
|
8,852
|
|
|
$
|
8,004
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Market value adjustments for investments
|
13
|
|
|
(87
|
)
|
|
5
|
|
|||
Market value adjustments for hedges
|
(359
|
)
|
|
130
|
|
|
121
|
|
|||
Pension and postretirement medical plan adjustments
|
(1,154
|
)
|
|
(301
|
)
|
|
(925
|
)
|
|||
Foreign currency translation and other
|
(156
|
)
|
|
(272
|
)
|
|
(18
|
)
|
|||
Other comprehensive income/(loss)
|
(1,656
|
)
|
|
(530
|
)
|
|
(817
|
)
|
|||
Comprehensive income
|
8,134
|
|
|
8,322
|
|
|
7,187
|
|
|||
Less: Net income attributable to noncontrolling interests
|
(399
|
)
|
|
(470
|
)
|
|
(503
|
)
|
|||
Less: Other comprehensive (income)/loss attributable to noncontrolling interests
|
98
|
|
|
77
|
|
|
36
|
|
|||
Comprehensive income attributable to Disney
|
$
|
7,833
|
|
|
$
|
7,929
|
|
|
$
|
6,720
|
|
|
October 1, 2016
|
|
October 3, 2015
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,610
|
|
|
$
|
4,269
|
|
Receivables
|
9,065
|
|
|
8,019
|
|
||
Inventories
|
1,390
|
|
|
1,571
|
|
||
Television costs and advances
|
1,208
|
|
|
1,170
|
|
||
Deferred income taxes
|
—
|
|
|
767
|
|
||
Other current assets
|
693
|
|
|
962
|
|
||
Total current assets
|
16,966
|
|
|
16,758
|
|
||
Film and television costs
|
6,339
|
|
|
6,183
|
|
||
Investments
|
4,280
|
|
|
2,643
|
|
||
Parks, resorts and other property
|
|
|
|
||||
Attractions, buildings and equipment
|
50,270
|
|
|
42,745
|
|
||
Accumulated depreciation
|
(26,849
|
)
|
|
(24,844
|
)
|
||
|
23,421
|
|
|
17,901
|
|
||
Projects in progress
|
2,684
|
|
|
6,028
|
|
||
Land
|
1,244
|
|
|
1,250
|
|
||
|
27,349
|
|
|
25,179
|
|
||
Intangible assets, net
|
6,949
|
|
|
7,172
|
|
||
Goodwill
|
27,810
|
|
|
27,826
|
|
||
Other assets
|
2,340
|
|
|
2,421
|
|
||
Total assets
|
$
|
92,033
|
|
|
$
|
88,182
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
$
|
9,130
|
|
|
$
|
7,844
|
|
Current portion of borrowings
|
3,687
|
|
|
4,563
|
|
||
Unearned royalties and other advances
|
4,025
|
|
|
3,927
|
|
||
Total current liabilities
|
16,842
|
|
|
16,334
|
|
||
Borrowings
|
16,483
|
|
|
12,773
|
|
||
Deferred income taxes
|
3,679
|
|
|
4,051
|
|
||
Other long-term liabilities
|
7,706
|
|
|
6,369
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Preferred stock, $.01 par value
Authorized – 100 million shares, Issued – none
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, Authorized – 4.6 billion shares, Issued – 2.9 billion shares at October 1, 2016 and 2.8 billion shares at October 3, 2015
|
35,859
|
|
|
35,122
|
|
||
Retained earnings
|
66,088
|
|
|
59,028
|
|
||
Accumulated other comprehensive loss
|
(3,979
|
)
|
|
(2,421
|
)
|
||
|
97,968
|
|
|
91,729
|
|
||
Treasury stock, at cost, 1.3 billion shares at October 1, 2016 and 1.2 billion shares at October 3, 2015
|
(54,703
|
)
|
|
(47,204
|
)
|
||
Total Disney Shareholders’ equity
|
43,265
|
|
|
44,525
|
|
||
Noncontrolling interests
|
4,058
|
|
|
4,130
|
|
||
Total equity
|
47,323
|
|
|
48,655
|
|
||
Total liabilities and equity
|
$
|
92,033
|
|
|
$
|
88,182
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Net income
|
$
|
9,790
|
|
|
$
|
8,852
|
|
|
$
|
8,004
|
|
Depreciation and amortization
|
2,527
|
|
|
2,354
|
|
|
2,288
|
|
|||
Gains on sales of investments and dispositions
|
(26
|
)
|
|
(91
|
)
|
|
(299
|
)
|
|||
Deferred income taxes
|
1,214
|
|
|
(102
|
)
|
|
517
|
|
|||
Equity in the income of investees
|
(926
|
)
|
|
(814
|
)
|
|
(854
|
)
|
|||
Cash distributions received from equity investees
|
799
|
|
|
752
|
|
|
718
|
|
|||
Net change in film and television costs and advances
|
(101
|
)
|
|
(922
|
)
|
|
(964
|
)
|
|||
Equity-based compensation
|
393
|
|
|
410
|
|
|
408
|
|
|||
Other
|
445
|
|
|
341
|
|
|
234
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(393
|
)
|
|
(211
|
)
|
|
(480
|
)
|
|||
Inventories
|
186
|
|
|
1
|
|
|
(81
|
)
|
|||
Other assets
|
(137
|
)
|
|
34
|
|
|
(151
|
)
|
|||
Accounts payable and other accrued liabilities
|
40
|
|
|
(49
|
)
|
|
536
|
|
|||
Income taxes
|
(598
|
)
|
|
354
|
|
|
(96
|
)
|
|||
Cash provided by operations
|
13,213
|
|
|
10,909
|
|
|
9,780
|
|
|||
|
|
|
|
|
|
||||||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Investments in parks, resorts and other property
|
(4,773
|
)
|
|
(4,265
|
)
|
|
(3,311
|
)
|
|||
Sales of investments/proceeds from dispositions
|
45
|
|
|
166
|
|
|
395
|
|
|||
Acquisitions
|
(850
|
)
|
|
—
|
|
|
(402
|
)
|
|||
Other
|
(180
|
)
|
|
(146
|
)
|
|
(27
|
)
|
|||
Cash used in investing activities
|
(5,758
|
)
|
|
(4,245
|
)
|
|
(3,345
|
)
|
|||
|
|
|
|
|
|
||||||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Commercial paper borrowings/(repayments), net
|
(920
|
)
|
|
2,376
|
|
|
50
|
|
|||
Borrowings
|
6,065
|
|
|
2,550
|
|
|
2,231
|
|
|||
Reduction of borrowings
|
(2,205
|
)
|
|
(2,221
|
)
|
|
(1,648
|
)
|
|||
Dividends
|
(2,313
|
)
|
|
(3,063
|
)
|
|
(1,508
|
)
|
|||
Repurchases of common stock
|
(7,499
|
)
|
|
(6,095
|
)
|
|
(6,527
|
)
|
|||
Proceeds from exercise of stock options
|
259
|
|
|
329
|
|
|
404
|
|
|||
Contributions from noncontrolling interest holders
|
—
|
|
|
1,012
|
|
|
608
|
|
|||
Other
|
(378
|
)
|
|
(402
|
)
|
|
(320
|
)
|
|||
Cash used in financing activities
|
(6,991
|
)
|
|
(5,514
|
)
|
|
(6,710
|
)
|
|||
|
|
|
|
|
|
||||||
Impact of exchange rates on cash and cash equivalents
|
(123
|
)
|
|
(302
|
)
|
|
(235
|
)
|
|||
|
|
|
|
|
|
||||||
Change in cash and cash equivalents
|
341
|
|
|
848
|
|
|
(510
|
)
|
|||
Cash and cash equivalents, beginning of year
|
4,269
|
|
|
3,421
|
|
|
3,931
|
|
|||
Cash and cash equivalents, end of year
|
$
|
4,610
|
|
|
$
|
4,269
|
|
|
$
|
3,421
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
395
|
|
|
$
|
314
|
|
|
$
|
310
|
|
Income taxes paid
|
$
|
4,133
|
|
|
$
|
4,396
|
|
|
$
|
3,483
|
|
|
|
Equity Attributable to Disney
|
|
|
|
|
|||||||||||||||||||||||||
|
|
Shares
|
|
Common
Stock
|
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Treasury
Stock
|
|
Total
Disney
Equity
|
|
Non-controlling
Interests
|
|
Total Equity
|
|||||||||||||||||
Balance at September 28, 2013
|
|
1,773
|
|
|
$
|
33,440
|
|
|
$
|
47,758
|
|
|
$
|
(1,187
|
)
|
|
$
|
(34,582
|
)
|
|
$
|
45,429
|
|
|
$
|
2,721
|
|
|
$
|
48,150
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
7,501
|
|
|
(781
|
)
|
|
—
|
|
|
6,720
|
|
|
467
|
|
|
7,187
|
|
|||||||
Equity compensation activity
|
|
18
|
|
|
844
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
844
|
|
|
—
|
|
|
844
|
|
|||||||
Common stock repurchases
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,527
|
)
|
|
(6,527
|
)
|
|
—
|
|
|
(6,527
|
)
|
|||||||
Dividends
|
|
—
|
|
|
17
|
|
|
(1,525
|
)
|
|
—
|
|
|
—
|
|
|
(1,508
|
)
|
|
—
|
|
|
(1,508
|
)
|
|||||||
Contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
608
|
|
|
608
|
|
|||||||
Distributions and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(576
|
)
|
|
(576
|
)
|
|||||||
Balance at September 27, 2014
|
|
1,707
|
|
|
$
|
34,301
|
|
|
$
|
53,734
|
|
|
$
|
(1,968
|
)
|
|
$
|
(41,109
|
)
|
|
$
|
44,958
|
|
|
$
|
3,220
|
|
|
$
|
48,178
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
8,382
|
|
|
(453
|
)
|
|
—
|
|
|
7,929
|
|
|
393
|
|
|
8,322
|
|
|||||||
Equity compensation activity
|
|
14
|
|
|
828
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
828
|
|
|
—
|
|
|
828
|
|
|||||||
Common stock repurchases
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,095
|
)
|
|
(6,095
|
)
|
|
—
|
|
|
(6,095
|
)
|
|||||||
Dividends
|
|
—
|
|
|
24
|
|
|
(3,087
|
)
|
|
—
|
|
|
—
|
|
|
(3,063
|
)
|
|
—
|
|
|
(3,063
|
)
|
|||||||
Contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|
1,012
|
|
|||||||
Distributions and other
|
|
—
|
|
|
(31
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
(495
|
)
|
|
(527
|
)
|
|||||||
Balance at October 3, 2015
|
|
1,661
|
|
|
$
|
35,122
|
|
|
$
|
59,028
|
|
|
$
|
(2,421
|
)
|
|
$
|
(47,204
|
)
|
|
$
|
44,525
|
|
|
$
|
4,130
|
|
|
$
|
48,655
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
9,391
|
|
|
(1,558
|
)
|
|
—
|
|
|
7,833
|
|
|
301
|
|
|
8,134
|
|
|||||||
Equity compensation activity
|
|
10
|
|
|
726
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
—
|
|
|
726
|
|
|||||||
Common stock repurchases
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,499
|
)
|
|
(7,499
|
)
|
|
—
|
|
|
(7,499
|
)
|
|||||||
Dividends
|
|
—
|
|
|
15
|
|
|
(2,328
|
)
|
|
—
|
|
|
—
|
|
|
(2,313
|
)
|
|
—
|
|
|
(2,313
|
)
|
|||||||
Distributions and other
|
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(373
|
)
|
|
(380
|
)
|
|||||||
Balance at October 1, 2016
|
|
1,597
|
|
|
$
|
35,859
|
|
|
$
|
66,088
|
|
|
$
|
(3,979
|
)
|
|
$
|
(54,703
|
)
|
|
$
|
43,265
|
|
|
$
|
4,058
|
|
|
$
|
47,323
|
|
1
|
Description of the Business and Segment Information
|
|
2016
|
|
2015
|
|
2014
|
||||||
Media Networks
|
|
|
|
|
|
||||||
Cable Networks
|
$
|
783
|
|
|
$
|
896
|
|
|
$
|
895
|
|
Broadcasting
|
(186
|
)
|
|
(82
|
)
|
|
(39
|
)
|
|||
Parks and Resorts
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Equity in the income of investees included in segment operating income
|
$
|
594
|
|
|
$
|
814
|
|
|
$
|
854
|
|
Vice Gain
|
332
|
|
|
—
|
|
|
—
|
|
|||
Total equity in the income of investees
|
$
|
926
|
|
|
$
|
814
|
|
|
$
|
854
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues
|
|
|
|
|
|
||||||
Media Networks
|
$
|
23,689
|
|
|
$
|
23,264
|
|
|
$
|
21,152
|
|
Parks and Resorts
|
16,974
|
|
|
16,162
|
|
|
15,099
|
|
|||
Studio Entertainment
|
|
|
|
|
|
||||||
Third parties
|
8,701
|
|
|
6,838
|
|
|
6,988
|
|
|||
Intersegment
|
740
|
|
|
528
|
|
|
290
|
|
|||
|
9,441
|
|
|
7,366
|
|
|
7,278
|
|
|||
Consumer Products & Interactive Media
|
|
|
|
|
|
||||||
Third parties
|
6,268
|
|
|
6,201
|
|
|
5,574
|
|
|||
Intersegment
|
(740
|
)
|
|
(528
|
)
|
|
(290
|
)
|
|||
|
5,528
|
|
|
5,673
|
|
|
5,284
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Total consolidated revenues
|
$
|
55,632
|
|
|
$
|
52,465
|
|
|
$
|
48,813
|
|
Segment operating income
|
|
|
|
|
|
||||||
Media Networks
|
$
|
7,755
|
|
|
$
|
7,793
|
|
|
$
|
7,321
|
|
Parks and Resorts
|
3,298
|
|
|
3,031
|
|
|
2,663
|
|
|||
Studio Entertainment
|
2,703
|
|
|
1,973
|
|
|
1,549
|
|
|||
Consumer Products & Interactive Media
|
1,965
|
|
|
1,884
|
|
|
1,472
|
|
|||
Total segment operating income
|
$
|
15,721
|
|
|
$
|
14,681
|
|
|
$
|
13,005
|
|
Reconciliation of segment operating income to
income before income taxes
|
|
|
|
|
|
||||||
Segment operating income
|
$
|
15,721
|
|
|
$
|
14,681
|
|
|
$
|
13,005
|
|
Corporate and unallocated shared expenses
|
(640
|
)
|
|
(643
|
)
|
|
(611
|
)
|
|||
Restructuring and impairment charges
|
(156
|
)
|
|
(53
|
)
|
|
(140
|
)
|
|||
Other expense, net
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||
Interest income/(expense), net
|
(260
|
)
|
|
(117
|
)
|
|
23
|
|
|||
Vice Gain
|
332
|
|
|
—
|
|
|
—
|
|
|||
Infinity Charge
(1)
|
(129
|
)
|
|
—
|
|
|
—
|
|
|||
Income before income taxes
|
$
|
14,868
|
|
|
$
|
13,868
|
|
|
$
|
12,246
|
|
Capital expenditures
|
|
|
|
|
|
||||||
Media Networks
|
|
|
|
|
|
||||||
Cable Networks
|
$
|
86
|
|
|
$
|
127
|
|
|
$
|
172
|
|
Broadcasting
|
80
|
|
|
71
|
|
|
88
|
|
|||
Parks and Resorts
|
|
|
|
|
|
||||||
Domestic
|
2,180
|
|
|
1,457
|
|
|
1,184
|
|
|||
International
|
2,035
|
|
|
2,147
|
|
|
1,504
|
|
|||
Studio Entertainment
|
86
|
|
|
107
|
|
|
63
|
|
|||
Consumer Products & Interactive Media
|
53
|
|
|
87
|
|
|
48
|
|
|||
Corporate
|
253
|
|
|
269
|
|
|
252
|
|
|||
Total capital expenditures
|
$
|
4,773
|
|
|
$
|
4,265
|
|
|
$
|
3,311
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Depreciation expense
|
|
|
|
|
|
||||||
Media Networks
|
$
|
237
|
|
|
$
|
245
|
|
|
$
|
238
|
|
Parks and Resorts
|
|
|
|
|
|
||||||
Domestic
|
1,273
|
|
|
1,169
|
|
|
1,117
|
|
|||
International
|
445
|
|
|
345
|
|
|
353
|
|
|||
Studio Entertainment
|
51
|
|
|
55
|
|
|
48
|
|
|||
Consumer Products & Interactive Media
|
63
|
|
|
69
|
|
|
69
|
|
|||
Corporate
|
251
|
|
|
249
|
|
|
239
|
|
|||
Total depreciation expense
|
$
|
2,320
|
|
|
$
|
2,132
|
|
|
$
|
2,064
|
|
Amortization of intangible assets
|
|
|
|
|
|
||||||
Media Networks
|
$
|
18
|
|
|
$
|
21
|
|
|
$
|
12
|
|
Parks and Resorts
|
3
|
|
|
3
|
|
|
2
|
|
|||
Studio Entertainment
|
74
|
|
|
84
|
|
|
88
|
|
|||
Consumer Products & Interactive Media
|
112
|
|
|
114
|
|
|
122
|
|
|||
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total amortization of intangible assets
|
$
|
207
|
|
|
$
|
222
|
|
|
$
|
224
|
|
Identifiable assets
(2)
|
|
|
|
|
|
||||||
Media Networks
|
$
|
32,706
|
|
|
$
|
30,638
|
|
|
|
||
Parks and Resorts
|
28,275
|
|
|
25,510
|
|
|
|
||||
Studio Entertainment
|
15,359
|
|
|
15,334
|
|
|
|
||||
Consumer Products & Interactive Media
|
9,332
|
|
|
9,678
|
|
|
|
||||
Corporate
(3)
|
6,361
|
|
|
7,022
|
|
|
|
||||
Total consolidated assets
|
$
|
92,033
|
|
|
$
|
88,182
|
|
|
|
||
Supplemental revenue data
|
|
|
|
|
|
||||||
Affiliate fees
|
$
|
12,259
|
|
|
$
|
12,029
|
|
|
$
|
10,632
|
|
Advertising
|
8,649
|
|
|
8,499
|
|
|
8,094
|
|
|||
Retail merchandise, food and beverage
|
6,116
|
|
|
5,986
|
|
|
5,598
|
|
|||
Theme park admissions
|
5,900
|
|
|
5,483
|
|
|
5,114
|
|
|||
Revenues
|
|
|
|
|
|
||||||
United States and Canada
|
$
|
42,616
|
|
|
$
|
40,320
|
|
|
$
|
36,769
|
|
Europe
|
6,714
|
|
|
6,507
|
|
|
6,505
|
|
|||
Asia Pacific
|
4,582
|
|
|
3,958
|
|
|
3,930
|
|
|||
Latin America and Other
|
1,720
|
|
|
1,680
|
|
|
1,609
|
|
|||
|
$
|
55,632
|
|
|
$
|
52,465
|
|
|
$
|
48,813
|
|
Segment operating income
|
|
|
|
|
|
||||||
United States and Canada
|
$
|
12,139
|
|
|
$
|
10,820
|
|
|
$
|
9,594
|
|
Europe
|
1,815
|
|
|
1,964
|
|
|
1,581
|
|
|||
Asia Pacific
|
1,324
|
|
|
1,365
|
|
|
1,342
|
|
|||
Latin America and Other
|
443
|
|
|
532
|
|
|
488
|
|
|||
|
$
|
15,721
|
|
|
$
|
14,681
|
|
|
$
|
13,005
|
|
|
2016
|
|
2015
|
||||
Long-lived assets
(4)
|
|
|
|
||||
United States and Canada
|
$
|
56,388
|
|
|
$
|
53,976
|
|
Europe
|
8,125
|
|
|
8,254
|
|
||
Asia Pacific
|
8,228
|
|
|
6,817
|
|
||
Latin America and Other
|
210
|
|
|
182
|
|
||
|
$
|
72,951
|
|
|
$
|
69,229
|
|
(1)
|
In fiscal 2016, the Company discontinued its Infinity console game business, which is reported in the Consumer Products & Interactive Media segment, and recorded a charge primarily to write down inventory. The charge also included severance and other asset impairments. The charge was reported in “Cost of products” in the Consolidated Statement of Income.
|
(2)
|
Identifiable assets include amounts associated with equity method investments, goodwill and intangible assets. Equity method investments by segment are as follows:
|
|
2016
|
|
2015
|
||||
Media Networks
|
$
|
4,032
|
|
|
$
|
2,454
|
|
Parks and Resorts
|
22
|
|
|
9
|
|
||
Studio Entertainment
|
3
|
|
|
2
|
|
||
Consumer Products & Interactive Media
|
—
|
|
|
1
|
|
||
Corporate
|
25
|
|
|
17
|
|
||
|
$
|
4,082
|
|
|
$
|
2,483
|
|
|
2016
|
|
2015
|
||||
Media Networks
|
$
|
18,153
|
|
|
$
|
18,186
|
|
Parks and Resorts
|
373
|
|
|
376
|
|
||
Studio Entertainment
|
8,450
|
|
|
8,538
|
|
||
Consumer Products & Interactive Media
|
7,653
|
|
|
7,768
|
|
||
Corporate
|
130
|
|
|
130
|
|
||
|
$
|
34,759
|
|
|
$
|
34,998
|
|
(3)
|
Primarily fixed assets, cash and cash equivalents, deferred tax assets and investments.
|
(4)
|
Long-lived assets are total assets less the following: current assets, long-term receivables, deferred taxes, financial investments and derivatives.
|
2
|
Summary of Significant Accounting Policies
|
•
|
Affiliate fees
|
•
|
Advertising revenues
|
•
|
Revenue from the licensing and distribution of film and television properties
|
•
|
Admissions to our theme parks, charges for room nights at hotels and sales of cruise vacation packages
|
•
|
Licensing of intellectual property for use on consumer merchandise, published materials and in multi-platform games
|
•
|
Amortization of programming, production, participations and residuals costs
|
•
|
Distribution costs
|
•
|
Operating labor
|
•
|
Facilities and infrastructure costs
|
•
|
The sale of food, beverage and merchandise at our retail locations
|
•
|
The sale of DVDs, Blu-ray discs and video game discs and accessories
|
•
|
The sale of books, comic books and magazines
|
•
|
Costs of goods sold
|
•
|
Amortization of programming, production, participations and residuals costs
|
•
|
Distribution costs
|
•
|
Operating labor
|
•
|
Retail occupancy costs
|
•
|
Game development costs
|
Attractions
|
|
25 – 40 years
|
Buildings and improvements
|
|
20 – 40 years
|
Leasehold improvements
|
|
Life of lease or asset life if less
|
Land improvements
|
|
20 – 40 years
|
Furniture, fixtures and equipment
|
|
3 – 25 years
|
2017
|
$
|
192
|
|
2018
|
191
|
|
|
2019
|
186
|
|
|
2020
|
180
|
|
|
2021
|
175
|
|
|
2016
|
|
2015
|
|
2014
|
|||
Weighted average number of common and common equivalent shares outstanding (basic)
|
1,629
|
|
|
1,694
|
|
|
1,740
|
|
Weighted average dilutive impact of Awards
|
10
|
|
|
15
|
|
|
19
|
|
Weighted average number of common and common equivalent shares outstanding (diluted)
|
1,639
|
|
|
1,709
|
|
|
1,759
|
|
Awards excluded from diluted earnings per share
|
6
|
|
|
3
|
|
|
6
|
|
3
|
Acquisitions
|
|
Media
Networks
|
|
Parks and
Resorts
|
|
Studio
Entertainment
|
|
Consumer
Products & Interactive Media
|
|
Total
|
||||||||||
Balance at Sept. 27, 2014
|
$
|
16,378
|
|
|
$
|
291
|
|
|
$
|
6,856
|
|
|
$
|
4,356
|
|
|
$
|
27,881
|
|
Acquisitions
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|||||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||
Other, net
|
(27
|
)
|
|
—
|
|
|
(22
|
)
|
|
(10
|
)
|
|
(59
|
)
|
|||||
Balance at Oct. 3, 2015
|
$
|
16,354
|
|
|
$
|
291
|
|
|
$
|
6,836
|
|
|
$
|
4,345
|
|
|
$
|
27,826
|
|
Acquisitions
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other, net
|
(10
|
)
|
|
—
|
|
|
(7
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|||||
Balance at Oct. 1, 2016
|
$
|
16,345
|
|
|
$
|
291
|
|
|
$
|
6,830
|
|
|
$
|
4,344
|
|
|
$
|
27,810
|
|
4
|
Dispositions and Other Expense, net
|
|
2016
|
|
2015
|
|
2014
|
||||||
Venezuelan foreign currency translation loss
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(143
|
)
|
Gain on sale of property and other
|
—
|
|
|
—
|
|
|
112
|
|
|||
Other expense, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(31
|
)
|
5
|
Investments
|
|
October 1,
2016 |
|
October 3,
2015 |
||||
Investments, equity basis
|
$
|
4,082
|
|
|
$
|
2,483
|
|
Investments, other
|
198
|
|
|
160
|
|
||
|
$
|
4,280
|
|
|
$
|
2,643
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Results of Operations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
7,416
|
|
|
$
|
6,561
|
|
|
$
|
6,573
|
|
Net income
|
$
|
1,855
|
|
|
$
|
1,912
|
|
|
$
|
2,003
|
|
|
October 1,
2016 |
|
October 3,
2015 |
|
September 27,
2014 |
||||||
Balance Sheet
|
|
|
|
|
|
||||||
Current assets
|
$
|
4,801
|
|
|
$
|
3,676
|
|
|
$
|
2,640
|
|
Non-current assets
|
8,906
|
|
|
6,429
|
|
|
6,294
|
|
|||
|
$
|
13,707
|
|
|
$
|
10,105
|
|
|
$
|
8,934
|
|
Current liabilities
|
$
|
2,018
|
|
|
$
|
1,614
|
|
|
$
|
1,504
|
|
Non-current liabilities
|
4,531
|
|
|
4,128
|
|
|
3,298
|
|
|||
Shareholders’ equity
|
7,158
|
|
|
4,363
|
|
|
4,132
|
|
|||
|
$
|
13,707
|
|
|
$
|
10,105
|
|
|
$
|
8,934
|
|
6
|
International Theme Park Investments
|
|
International Theme Parks
|
||||||
|
October 1, 2016
|
|
October 3, 2015
|
||||
Cash and cash equivalents
|
$
|
1,008
|
|
|
$
|
781
|
|
Other current assets
|
331
|
|
|
252
|
|
||
Total current assets
|
1,339
|
|
|
1,033
|
|
||
Parks, resorts and other property
|
9,270
|
|
|
7,748
|
|
||
Other assets
|
88
|
|
|
62
|
|
||
Total assets
|
$
|
10,697
|
|
|
$
|
8,843
|
|
|
|
|
|
||||
Current liabilities
|
$
|
1,499
|
|
|
$
|
1,027
|
|
Borrowings - long-term
|
1,087
|
|
|
319
|
|
||
Other long-term liabilities
|
256
|
|
|
195
|
|
||
Total liabilities
|
$
|
2,842
|
|
|
$
|
1,541
|
|
|
October 1, 2016
|
||
Revenues
|
$
|
2,455
|
|
Costs and expenses
|
(2,754
|
)
|
•
|
In February 2015, Disneyland Paris completed a
€0.4 billion
equity rights offering at
€1.00
per share of which the Company funded
€0.2 billion
. The Company purchased shares that were unsubscribed by other Disneyland Paris shareholders, which increased the Company’s effective ownership by approximately
four
percentage points.
|
•
|
In February 2015, the Company converted
€0.6 billion
of its loans to Disneyland Paris into equity at a conversion price of
€1.25
per share. The conversion increased the Company’s effective ownership by an additional
23
percentage points. In addition, Disneyland Paris repaid
€0.3 billion
that was outstanding under then existing lines of credit from the Company. These lines of credit were replaced by a new
€0.4 billion
line of credit from the Company bearing interest at EURIBOR plus
2%
and maturing in
2023
.
|
•
|
In September 2015, the Company completed a mandatory tender offer to the other Disneyland Paris shareholders and acquired
€0.1 billion
in shares at
€1.25
per share, which increased the Company’s effective ownership by an additional
eight
percentage points.
|
•
|
In November 2015, to offset the dilution caused by the loan conversion, Disneyland Paris shareholders purchased
€0.05 billion
in shares from the Company at
€1.25
per share, which decreased the Company’s effective ownership by
four
percentage points, resulting in an
81%
effective ownership interest in Disneyland Paris.
|
7
|
Film and Television Costs and Advances
|
|
October 1, 2016
|
|
October 3, 2015
|
||||
Theatrical film costs
|
|
|
|
||||
Released, less amortization
|
$
|
1,677
|
|
|
$
|
1,445
|
|
Completed, not released
|
—
|
|
|
—
|
|
||
In-process
|
2,179
|
|
|
2,499
|
|
||
In development or pre-production
|
336
|
|
|
304
|
|
||
|
4,192
|
|
|
4,248
|
|
||
Television costs
|
|
|
|
||||
Released, less amortization
|
1,015
|
|
|
895
|
|
||
Completed, not released
|
365
|
|
|
395
|
|
||
In-process
|
417
|
|
|
352
|
|
||
In development or pre-production
|
13
|
|
|
10
|
|
||
|
1,810
|
|
|
1,652
|
|
||
Television programming rights and advances
|
1,545
|
|
|
1,453
|
|
||
|
7,547
|
|
|
7,353
|
|
||
Less current portion
|
1,208
|
|
|
1,170
|
|
||
Non-current portion
|
$
|
6,339
|
|
|
$
|
6,183
|
|
8
|
Borrowings
|
|
|
|
|
|
|
2016
|
||||||||||||||
|
|
2016
|
|
2015
|
|
Stated
Interest
Rate
(1)
|
|
Pay Floating Interest rate and Cross-
Currency Swaps
(2)
|
|
Effective
Interest
Rate
(3)
|
|
Swap
Maturities
|
||||||||
Commercial paper
|
|
$
|
1,521
|
|
|
$
|
2,430
|
|
|
—
|
|
|
$
|
—
|
|
|
0.54
|
%
|
|
|
U.S. medium-term notes
(4)
|
|
16,827
|
|
|
13,873
|
|
|
2.80
|
%
|
|
8,275
|
|
|
2.58
|
%
|
|
2017-2026
|
|||
Foreign currency denominated debt
|
|
448
|
|
|
447
|
|
|
4.88
|
%
|
|
249
|
|
|
4.83
|
%
|
|
2017
|
|||
Capital Cities/ABC debt
|
|
107
|
|
|
108
|
|
|
8.75
|
%
|
|
—
|
|
|
6.01
|
%
|
|
|
|||
Other
(5)
|
|
180
|
|
|
159
|
|
|
|
|
—
|
|
|
|
|
|
|||||
|
|
19,083
|
|
|
17,017
|
|
|
2.66
|
%
|
|
8,524
|
|
|
2.49
|
%
|
|
|
|||
International Theme Parks borrowings
|
|
1,087
|
|
|
319
|
|
|
1.92
|
%
|
|
—
|
|
|
4.30
|
%
|
|
|
|||
Total borrowings
|
|
20,170
|
|
|
17,336
|
|
|
2.62
|
%
|
|
8,524
|
|
|
2.59
|
%
|
|
|
|||
Less current portion
|
|
3,687
|
|
|
4,563
|
|
|
1.24
|
%
|
|
1,500
|
|
|
1.47
|
%
|
|
|
|||
Total long-term borrowings
|
|
$
|
16,483
|
|
|
$
|
12,773
|
|
|
|
|
$
|
7,024
|
|
|
|
|
|
(1)
|
The stated interest rate represents the weighted-average coupon rate for each category of borrowings. For floating rate borrowings, interest rates are the rates in effect at
October 1, 2016
; these rates are not necessarily an indication of future interest rates.
|
(2)
|
Amounts represent notional values of interest rate and cross-currency swaps outstanding as of
October 1, 2016
.
|
(3)
|
The effective interest rate includes the impact of existing and terminated interest rate and cross-currency swaps, purchase accounting adjustments and debt issuance premiums, discounts and costs.
|
(4)
|
Includes net debt issuance premiums, discounts and costs totaling
$132 million
and
$88 million
at
October 1, 2016
and
October 3, 2015
, respectively.
|
(5)
|
Includes market value adjustments for debt with qualifying hedges totaling
$146 million
and
$131 million
at
October 1, 2016
and
October 3, 2015
, respectively.
|
|
Committed
Capacity
|
|
Capacity
Used
|
|
Unused
Capacity
|
||||||
Facility expiring March 2017
|
$
|
1,500
|
|
|
$
|
—
|
|
|
$
|
1,500
|
|
Facility expiring March 2019
|
2,250
|
|
|
—
|
|
|
2,250
|
|
|||
Facility expiring March 2021
|
2,250
|
|
|
—
|
|
|
2,250
|
|
|||
Total
|
$
|
6,000
|
|
|
$
|
—
|
|
|
$
|
6,000
|
|
|
Commercial paper with original maturities less than three months, net
(1)
|
|
Commercial paper with original maturities greater than three months
|
|
Total
|
||||||
Balance at Sept 27, 2014
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
50
|
|
Additions
|
2,277
|
|
|
3,019
|
|
|
5,296
|
|
|||
Payments
|
—
|
|
|
(2,920
|
)
|
|
(2,920
|
)
|
|||
Other Activity
|
3
|
|
|
1
|
|
|
4
|
|
|||
Balance at Oct 3, 2015
|
$
|
2,330
|
|
|
$
|
100
|
|
|
$
|
2,430
|
|
Additions
|
—
|
|
|
4,794
|
|
|
4,794
|
|
|||
Payments
|
(1,559
|
)
|
|
(4,155
|
)
|
|
(5,714
|
)
|
|||
Other Activity
|
6
|
|
|
5
|
|
|
11
|
|
|||
Balance at Oct 1, 2016
|
$
|
777
|
|
|
$
|
744
|
|
|
$
|
1,521
|
|
|
Before
International
Theme Parks
Consolidation
|
|
International
Theme Parks
|
|
Total
|
||||||
2017
|
$
|
3,686
|
|
|
$
|
—
|
|
|
$
|
3,686
|
|
2018
|
1,804
|
|
|
11
|
|
|
1,815
|
|
|||
2019
|
2,759
|
|
|
—
|
|
|
2,759
|
|
|||
2020
|
896
|
|
|
—
|
|
|
896
|
|
|||
2021
|
2,100
|
|
|
17
|
|
|
2,117
|
|
|||
Thereafter
|
7,824
|
|
|
1,059
|
|
|
8,883
|
|
|||
|
$
|
19,069
|
|
|
$
|
1,087
|
|
|
$
|
20,156
|
|
9
|
Income Taxes
|
|
2016
|
|
2015
|
|
2014
|
||||||
Income Before Income Taxes
|
|
|
|
|
|
||||||
Domestic (including U.S. exports)
|
$
|
14,018
|
|
|
$
|
12,825
|
|
|
$
|
11,376
|
|
Foreign subsidiaries
|
850
|
|
|
1,043
|
|
|
870
|
|
|||
|
$
|
14,868
|
|
|
$
|
13,868
|
|
|
$
|
12,246
|
|
Income Tax Expense/(Benefit)
|
|
|
|
|
|
||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
3,146
|
|
|
$
|
4,182
|
|
|
$
|
2,932
|
|
State
|
154
|
|
|
333
|
|
|
206
|
|
|||
Foreign
(1)
|
533
|
|
|
525
|
|
|
600
|
|
|||
|
3,833
|
|
|
5,040
|
|
|
3,738
|
|
|||
Deferred
|
|
|
|
|
|
||||||
Federal
|
1,172
|
|
|
82
|
|
|
409
|
|
|||
State
|
100
|
|
|
(52
|
)
|
|
81
|
|
|||
Foreign
|
(27
|
)
|
|
(54
|
)
|
|
14
|
|
|||
|
1,245
|
|
|
(24
|
)
|
|
504
|
|
|||
|
$
|
5,078
|
|
|
$
|
5,016
|
|
|
$
|
4,242
|
|
|
October 1, 2016
|
|
October 3, 2015
|
||||
Components of Deferred Tax Assets and Liabilities
|
|
|
|
||||
Deferred tax assets
|
|
|
|
||||
Accrued liabilities
|
$
|
(2,385
|
)
|
|
$
|
(2,244
|
)
|
Net operating losses and tax credit carryforwards
|
(1,567
|
)
|
|
(1,396
|
)
|
||
Other
|
(917
|
)
|
|
(945
|
)
|
||
Total deferred tax assets
|
(4,869
|
)
|
|
(4,585
|
)
|
||
Deferred tax liabilities
|
|
|
|
||||
Depreciable, amortizable and other property
|
5,682
|
|
|
5,260
|
|
||
Foreign subsidiaries
|
348
|
|
|
583
|
|
||
Licensing revenues
|
480
|
|
|
396
|
|
||
Other
|
295
|
|
|
297
|
|
||
Total deferred tax liabilities
|
6,805
|
|
|
6,536
|
|
||
Net deferred tax liability before valuation allowance
|
1,936
|
|
|
1,951
|
|
||
Valuation allowance
|
1,602
|
|
|
1,288
|
|
||
Net deferred tax liability
|
$
|
3,538
|
|
|
$
|
3,239
|
|
|
2016
|
|
2015
|
|
2014
|
|||
Federal income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of federal benefit
|
1.8
|
|
|
1.9
|
|
|
2.0
|
|
Domestic production activity deduction
|
(1.6
|
)
|
|
(1.9
|
)
|
|
(2.1
|
)
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(1.1
|
)
|
|
(1.5
|
)
|
|
(0.7
|
)
|
Disneyland Paris recapitalization
|
—
|
|
|
2.9
|
|
|
—
|
|
Other, including tax reserves and related interest
|
0.1
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
34.2
|
%
|
|
36.2
|
%
|
|
34.6
|
%
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at the beginning of the year
|
$
|
912
|
|
|
$
|
803
|
|
|
$
|
1,120
|
|
Increases for current year tax positions
|
71
|
|
|
98
|
|
|
51
|
|
|||
Increases for prior year tax positions
|
142
|
|
|
280
|
|
|
133
|
|
|||
Decreases in prior year tax positions
|
(158
|
)
|
|
(193
|
)
|
|
(487
|
)
|
|||
Settlements with taxing authorities
|
(123
|
)
|
|
(76
|
)
|
|
(14
|
)
|
|||
Balance at the end of the year
|
$
|
844
|
|
|
$
|
912
|
|
|
$
|
803
|
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
||||||||||||
|
October 1, 2016
|
|
October 3, 2015
|
|
October 1, 2016
|
|
October 3,
2015 |
||||||||
Projected benefit obligations
|
|
|
|
|
|
|
|
||||||||
Beginning obligations
|
$
|
(12,379
|
)
|
|
$
|
(12,190
|
)
|
|
$
|
(1,590
|
)
|
|
$
|
(1,567
|
)
|
Service cost
|
(318
|
)
|
|
(332
|
)
|
|
(11
|
)
|
|
(14
|
)
|
||||
Interest cost
|
(458
|
)
|
|
(521
|
)
|
|
(61
|
)
|
|
(68
|
)
|
||||
Actuarial gain / (loss)
|
(1,769
|
)
|
|
(176
|
)
|
|
(142
|
)
|
|
33
|
|
||||
Plan amendments and other
|
8
|
|
|
28
|
|
|
(9
|
)
|
|
(9
|
)
|
||||
Benefits paid
(1)
|
436
|
|
|
812
|
|
|
54
|
|
|
35
|
|
||||
Ending obligations
|
$
|
(14,480
|
)
|
|
$
|
(12,379
|
)
|
|
$
|
(1,759
|
)
|
|
$
|
(1,590
|
)
|
Fair value of plans’ assets
|
|
|
|
|
|
|
|
||||||||
Beginning fair value
|
$
|
9,415
|
|
|
$
|
9,765
|
|
|
$
|
568
|
|
|
$
|
538
|
|
Actual return on plan assets
|
624
|
|
|
163
|
|
|
34
|
|
|
9
|
|
||||
Contributions
|
839
|
|
|
337
|
|
|
61
|
|
|
48
|
|
||||
Benefits paid
(1)
|
(436
|
)
|
|
(812
|
)
|
|
(54
|
)
|
|
(35
|
)
|
||||
Expenses and other
|
(41
|
)
|
|
(38
|
)
|
|
5
|
|
|
8
|
|
||||
Ending fair value
|
$
|
10,401
|
|
|
$
|
9,415
|
|
|
$
|
614
|
|
|
$
|
568
|
|
|
|
|
|
|
|
|
|
||||||||
Underfunded status of the plans
|
$
|
(4,079
|
)
|
|
$
|
(2,964
|
)
|
|
$
|
(1,145
|
)
|
|
$
|
(1,022
|
)
|
Amounts recognized in the balance sheet
|
|
|
|
|
|
|
|
||||||||
Non-current assets
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(40
|
)
|
|
(36
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Non-current liabilities
|
(4,039
|
)
|
|
(2,931
|
)
|
|
(1,145
|
)
|
|
(1,009
|
)
|
||||
|
$
|
(4,079
|
)
|
|
$
|
(2,964
|
)
|
|
$
|
(1,145
|
)
|
|
$
|
(1,022
|
)
|
(1)
|
Fiscal 2015 pension plans include
$340 million
of payments under a plan offered for a limited time to certain former employees who had vested benefits in our qualified defined benefit pension plans. These employees elected to receive an immediate lump-sum distribution in lieu of benefits they would have received following their retirement.
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Service cost
|
$
|
318
|
|
|
$
|
332
|
|
|
$
|
277
|
|
|
$
|
11
|
|
|
$
|
14
|
|
|
$
|
10
|
|
Interest cost
|
458
|
|
|
521
|
|
|
488
|
|
|
61
|
|
|
68
|
|
|
65
|
|
||||||
Expected return on plan assets
|
(747
|
)
|
|
(711
|
)
|
|
(645
|
)
|
|
(45
|
)
|
|
(39
|
)
|
|
(36
|
)
|
||||||
Amortization of prior year service costs
|
14
|
|
|
16
|
|
|
14
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||||
Recognized net actuarial loss / (gain)
|
242
|
|
|
247
|
|
|
145
|
|
|
8
|
|
|
10
|
|
|
(7
|
)
|
||||||
Net periodic benefit cost
|
$
|
285
|
|
|
$
|
405
|
|
|
$
|
279
|
|
|
$
|
34
|
|
|
$
|
52
|
|
|
$
|
30
|
|
|
Pension Plans
|
|
Postretirement
Medical Plans
|
|
Total
|
||||||
Prior service cost
|
$
|
(56
|
)
|
|
$
|
—
|
|
|
$
|
(56
|
)
|
Net actuarial loss
|
(5,470
|
)
|
|
(263
|
)
|
|
(5,733
|
)
|
|||
Total amounts included in AOCI
|
(5,526
|
)
|
|
(263
|
)
|
|
(5,789
|
)
|
|||
Prepaid / (accrued) pension cost
|
1,447
|
|
|
(882
|
)
|
|
565
|
|
|||
Net balance sheet liability
|
$
|
(4,079
|
)
|
|
$
|
(1,145
|
)
|
|
$
|
(5,224
|
)
|
|
Pension Plans
|
|
Postretirement Medical Plans
|
|
Total
|
||||||
Prior service cost
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
(11
|
)
|
Net actuarial loss
|
(403
|
)
|
|
(16
|
)
|
|
(419
|
)
|
|||
Total
|
$
|
(414
|
)
|
|
$
|
(16
|
)
|
|
$
|
(430
|
)
|
Asset Class
|
|
Minimum
|
|
Maximum
|
||
|
|
|
|
|
||
Equity investments
|
|
30
|
%
|
|
60
|
%
|
Fixed income investments
|
|
20
|
%
|
|
40
|
%
|
Alternative investments
|
|
10
|
%
|
|
30
|
%
|
Cash & money market funds
|
|
0
|
%
|
|
10
|
%
|
|
|
As of October 1, 2016
|
|||||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Plan Asset Mix
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash & money market funds
|
|
$
|
116
|
|
|
$
|
916
|
|
|
$
|
—
|
|
|
$
|
1,032
|
|
|
9
|
%
|
Common and preferred stocks
(1)
|
|
2,238
|
|
|
945
|
|
|
—
|
|
|
3,183
|
|
|
29
|
%
|
||||
Mutual funds
|
|
636
|
|
|
232
|
|
|
—
|
|
|
868
|
|
|
8
|
%
|
||||
Common collective funds
|
|
13
|
|
|
558
|
|
|
—
|
|
|
571
|
|
|
5
|
%
|
||||
Government and federal agency bonds, notes and MBS
|
|
2,114
|
|
|
458
|
|
|
—
|
|
|
2,572
|
|
|
24
|
%
|
||||
Corporate bonds
|
|
—
|
|
|
577
|
|
|
—
|
|
|
577
|
|
|
5
|
%
|
||||
Mortgage- and asset-backed securities
|
|
—
|
|
|
86
|
|
|
—
|
|
|
86
|
|
|
1
|
%
|
||||
Alternative investments
|
|
84
|
|
|
975
|
|
|
1,067
|
|
|
2,126
|
|
|
19
|
%
|
||||
Derivatives and other, net
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Total
|
|
$
|
5,200
|
|
|
$
|
4,748
|
|
|
$
|
1,067
|
|
|
$
|
11,015
|
|
|
100
|
%
|
|
|
As of October 3, 2015
|
|||||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Plan Asset Mix
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash & money market funds
|
|
$
|
56
|
|
|
$
|
1,036
|
|
|
$
|
—
|
|
|
$
|
1,092
|
|
|
11
|
%
|
Common and preferred stocks
(1)
|
|
2,000
|
|
|
883
|
|
|
—
|
|
|
2,883
|
|
|
29
|
%
|
||||
Mutual funds
|
|
476
|
|
|
215
|
|
|
—
|
|
|
691
|
|
|
7
|
%
|
||||
Common collective funds
|
|
13
|
|
|
476
|
|
|
—
|
|
|
489
|
|
|
5
|
%
|
||||
Government and federal agency bonds, notes and MBS
|
|
1,090
|
|
|
483
|
|
|
—
|
|
|
1,573
|
|
|
16
|
%
|
||||
Corporate bonds
|
|
—
|
|
|
671
|
|
|
—
|
|
|
671
|
|
|
7
|
%
|
||||
Mortgage- and asset-backed securities
|
|
—
|
|
|
137
|
|
|
—
|
|
|
137
|
|
|
1
|
%
|
||||
Alternative investments
|
|
80
|
|
|
952
|
|
|
1,200
|
|
|
2,232
|
|
|
22
|
%
|
||||
Derivatives and other, net
|
|
212
|
|
|
3
|
|
|
—
|
|
|
215
|
|
|
2
|
%
|
||||
Total
|
|
$
|
3,927
|
|
|
$
|
4,856
|
|
|
$
|
1,200
|
|
|
$
|
9,983
|
|
|
100
|
%
|
(1)
|
Includes
2.8 million
shares of Company common stock valued at
$264 million
(
2%
of total plan assets) and
2.8 million
shares valued at
$290 million
(
3%
of total plan assets) at
October 1, 2016
and
October 3, 2015
, respectively.
|
|
|
Year Ended
|
||||||
|
|
October 1, 2016
|
|
October 3, 2015
|
||||
Balance, beginning of year
|
|
$
|
1,200
|
|
|
$
|
1,266
|
|
Additions
|
|
174
|
|
|
168
|
|
||
Distributions
|
|
(300
|
)
|
|
(332
|
)
|
||
Gain / (Loss)
|
|
(7
|
)
|
|
98
|
|
||
Balance, end of year
|
|
$
|
1,067
|
|
|
$
|
1,200
|
|
|
Pension
Plans
|
|
Postretirement
Medical Plans
(1)
|
||||
2017
|
$
|
470
|
|
|
$
|
45
|
|
2018
|
469
|
|
|
49
|
|
||
2019
|
502
|
|
|
53
|
|
||
2020
|
535
|
|
|
57
|
|
||
2021
|
567
|
|
|
62
|
|
||
2022 – 2026
|
3,374
|
|
|
378
|
|
(1)
|
Estimated future benefit payments are net of expected Medicare subsidy receipts of
$72 million
.
|
Equity Securities
|
7
|
%
|
to
|
11
|
%
|
Debt Securities
|
3
|
%
|
to
|
5
|
%
|
Alternative Investments
|
8
|
%
|
to
|
12
|
%
|
|
Discount Rate
|
|
Expected
Long-Term
Rate of Return
On Assets
|
|
Assumed Healthcare
Cost Trend Rate
|
||||||||||||||
Increase/(decrease)
|
Benefit
Expense
|
|
Projected Benefit Obligations
|
|
Benefit
Expense
|
|
Net Periodic Postretirement Medical Cost
|
|
Projected Benefit Obligations
|
||||||||||
1 ppt decrease
|
$
|
271
|
|
|
$
|
2,853
|
|
|
$
|
123
|
|
|
$
|
(25
|
)
|
|
$
|
(233
|
)
|
1 ppt increase
|
(235
|
)
|
|
(2,401
|
)
|
|
(123
|
)
|
|
41
|
|
|
287
|
|
•
|
Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
|
•
|
If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers.
|
•
|
If the Company chooses to stop participating in these multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Pension plans
|
$
|
126
|
|
|
$
|
128
|
|
|
$
|
115
|
|
Health & welfare plans
|
167
|
|
|
173
|
|
|
158
|
|
|||
Total contributions
|
$
|
293
|
|
|
$
|
301
|
|
|
$
|
273
|
|
Per Share
|
|
Total Paid
|
|
Payment Timing
|
|
Related to Fiscal Period
|
$0.71
|
|
$1.1 billion
|
|
Fourth Quarter of Fiscal 2016
|
|
First Half 2016
|
$0.71
|
|
$1.2 billion
|
|
Second Quarter of Fiscal 2016
|
|
Second Half 2015
|
$0.66
|
|
$1.1 billion
|
|
Fourth Quarter of Fiscal 2015
|
|
First Half 2015
|
$1.15
|
|
$1.9 billion
|
|
Second Quarter of Fiscal 2015
|
|
2014
|
$0.86
|
|
$1.5 billion
|
|
Second Quarter of Fiscal 2014
|
|
2013
|
Fiscal year
|
|
Shares acquired
|
|
Total paid
|
2016
|
|
74 million
|
|
$7.5 billion
|
2015
|
|
60 million
|
|
$6.1 billion
|
2014
|
|
84 million
|
|
$6.5 billion
|
|
Market Value Adjustments
|
|
Unrecognized
Pension and
Postretirement
Medical
Expense
|
|
Foreign
Currency
Translation
and Other
|
|
AOCI
|
||||||||||||
|
Investments
|
|
Cash Flow
Hedges
|
|
|||||||||||||||
Balance at Sept. 28, 2013
|
$
|
95
|
|
|
$
|
83
|
|
|
$
|
(1,271
|
)
|
|
$
|
(94
|
)
|
|
$
|
(1,187
|
)
|
Unrealized gains (losses) arising during the period
|
109
|
|
|
169
|
|
|
(1,022
|
)
|
|
18
|
|
|
(726
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
(104
|
)
|
|
(48
|
)
|
|
97
|
|
|
—
|
|
|
(55
|
)
|
|||||
Balance at Sept. 27, 2014
|
100
|
|
|
204
|
|
|
(2,196
|
)
|
|
(76
|
)
|
|
(1,968
|
)
|
|||||
Unrealized gains (losses) arising during the period
|
(37
|
)
|
|
421
|
|
|
(474
|
)
|
|
(195
|
)
|
|
(285
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
(50
|
)
|
|
(291
|
)
|
|
173
|
|
|
—
|
|
|
(168
|
)
|
|||||
Balance at Oct. 3, 2015
|
13
|
|
|
334
|
|
|
(2,497
|
)
|
|
(271
|
)
|
|
(2,421
|
)
|
|||||
Unrealized gains (losses) arising during the period
|
13
|
|
|
(193
|
)
|
|
(1,321
|
)
|
|
(58
|
)
|
|
(1,559
|
)
|
|||||
Reclassifications of realized net (gains) losses to net income
|
—
|
|
|
(166
|
)
|
|
167
|
|
|
—
|
|
|
1
|
|
|||||
Balance at Oct. 1, 2016
|
$
|
26
|
|
|
$
|
(25
|
)
|
|
$
|
(3,651
|
)
|
|
$
|
(329
|
)
|
|
$
|
(3,979
|
)
|
Gains/(losses) in net income:
|
|
Affected line item in the Consolidated Statements of Income:
|
|
2016
|
|
2015
|
|
2014
|
||||||
Investments, net
|
|
Interest income/(expense), net
|
|
$
|
—
|
|
|
$
|
79
|
|
|
$
|
165
|
|
Estimated tax
|
|
Income taxes
|
|
—
|
|
|
(29
|
)
|
|
(61
|
)
|
|||
|
|
|
|
—
|
|
|
50
|
|
|
104
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Cash flow hedges
|
|
Primarily revenue
|
|
264
|
|
|
462
|
|
|
76
|
|
|||
Estimated tax
|
|
Income taxes
|
|
(98
|
)
|
|
(171
|
)
|
|
(28
|
)
|
|||
|
|
|
|
166
|
|
|
291
|
|
|
48
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Pension and postretirement medical expense
|
|
Cost and expenses
|
|
(265
|
)
|
|
(274
|
)
|
|
(154
|
)
|
|||
Estimated tax
|
|
Income taxes
|
|
98
|
|
|
101
|
|
|
57
|
|
|||
|
|
|
|
(167
|
)
|
|
(173
|
)
|
|
(97
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications for the period
|
|
|
|
$
|
(1
|
)
|
|
$
|
168
|
|
|
$
|
55
|
|
|
2016
|
|
2015
|
|
2014
|
|||
Risk-free interest rate
|
2.3
|
%
|
|
2.1
|
%
|
|
3.0
|
%
|
Expected volatility
|
26
|
%
|
|
24
|
%
|
|
25
|
%
|
Dividend yield
|
1.32
|
%
|
|
1.37
|
%
|
|
1.37
|
%
|
Termination rate
|
4.0
|
%
|
|
3.2
|
%
|
|
3.2
|
%
|
Exercise multiple
|
1.62
|
|
|
1.48
|
|
|
1.48
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Stock option/rights compensation expense
(1)
|
$
|
93
|
|
|
$
|
102
|
|
|
$
|
102
|
|
RSU compensation expense
|
293
|
|
|
309
|
|
|
312
|
|
|||
Total equity-based compensation expense
(2)
|
386
|
|
|
411
|
|
|
414
|
|
|||
Tax impact
|
(131
|
)
|
|
(134
|
)
|
|
(139
|
)
|
|||
Reduction in net income
|
$
|
255
|
|
|
$
|
277
|
|
|
$
|
275
|
|
Equity-based compensation expense capitalized during the period
|
$
|
78
|
|
|
$
|
57
|
|
|
$
|
49
|
|
Tax benefit reported in cash flow from financing activities
|
$
|
208
|
|
|
$
|
313
|
|
|
$
|
255
|
|
(1)
|
Includes stock appreciation rights.
|
(2)
|
Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs.
|
|
2016
|
|||||
|
Shares
|
|
Weighted
Average
Exercise Price
|
|||
Outstanding at beginning of year
|
29
|
|
|
$
|
54.93
|
|
Awards forfeited
|
(1
|
)
|
|
91.27
|
|
|
Awards granted
|
4
|
|
|
112.69
|
|
|
Awards exercised
|
(7
|
)
|
|
39.13
|
|
|
Awards expired/canceled
|
—
|
|
|
—
|
|
|
Outstanding at end of year
|
25
|
|
|
66.91
|
|
|
Exercisable at end of year
|
14
|
|
|
$
|
49.65
|
|
|
|
Vested
|
|||||||
Range of Exercise Prices
|
|
Number of
Options
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Years of
Contractual
Life
|
|||
$ 0 — $ 35
|
|
2
|
|
|
$
|
30.44
|
|
|
3.2
|
$ 36 — $ 45
|
|
6
|
|
|
39.10
|
|
|
4.9
|
|
$ 46 — $ 90
|
|
5
|
|
|
58.20
|
|
|
6.6
|
|
$ 91 — $ 115
|
|
1
|
|
|
92.40
|
|
|
8.2
|
|
|
|
14
|
|
|
|
|
|
|
|
Expected to Vest
|
|||||||
Range of Exercise Prices
|
|
Number of
Options
(1)
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Years of
Contractual
Life
|
|||
$ 0 — $ 55
|
|
2
|
|
|
$
|
50.97
|
|
|
6.3
|
$ 56 — $ 75
|
|
3
|
|
|
72.50
|
|
|
7.2
|
|
$ 76 — $ 95
|
|
3
|
|
|
92.09
|
|
|
8.2
|
|
$ 96 — $ 115
|
|
3
|
|
|
113.06
|
|
|
9.2
|
|
|
|
11
|
|
|
|
|
|
(1)
|
Number of options expected to vest is total unvested options less estimated forfeitures.
|
|
2016
|
|||||
|
Units
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||
Unvested at beginning of year
|
12
|
|
|
$
|
68.71
|
|
Granted
(1)
|
4
|
|
|
112.49
|
|
|
Vested
|
(5
|
)
|
|
58.51
|
|
|
Forfeited
|
(1
|
)
|
|
88.77
|
|
|
Unvested at end of year
(2)
|
10
|
|
|
$
|
88.84
|
|
|
|
October 1,
2016 |
|
October 3,
2015 |
||||
Current receivables
|
|
|
|
|
||||
Accounts receivable
|
|
$
|
8,458
|
|
|
$
|
7,613
|
|
Other
|
|
760
|
|
|
563
|
|
||
Allowance for doubtful accounts
|
|
(153
|
)
|
|
(157
|
)
|
||
|
|
$
|
9,065
|
|
|
$
|
8,019
|
|
Other current assets
|
|
|
|
|
||||
Prepaid expenses
|
|
$
|
449
|
|
|
$
|
469
|
|
Other
|
|
244
|
|
|
493
|
|
||
|
|
$
|
693
|
|
|
$
|
962
|
|
Parks, resorts and other property
|
|
|
|
|
||||
Attractions, buildings and improvements
|
|
$
|
27,930
|
|
|
$
|
21,556
|
|
Leasehold improvements
|
|
830
|
|
|
769
|
|
||
Furniture, fixtures and equipment
|
|
16,912
|
|
|
16,068
|
|
||
Land improvements
|
|
4,598
|
|
|
4,352
|
|
||
|
|
50,270
|
|
|
42,745
|
|
||
Accumulated depreciation
|
|
(26,849
|
)
|
|
(24,844
|
)
|
||
Projects in progress
|
|
2,684
|
|
|
6,028
|
|
||
Land
|
|
1,244
|
|
|
1,250
|
|
||
|
|
$
|
27,349
|
|
|
$
|
25,179
|
|
Intangible assets
|
|
|
|
|
||||
Character/franchise intangibles and copyrights
|
|
$
|
5,829
|
|
|
$
|
5,830
|
|
Other amortizable intangible assets
|
|
893
|
|
|
901
|
|
||
Accumulated amortization
|
|
(1,635
|
)
|
|
(1,426
|
)
|
||
Net amortizable intangible assets
|
|
5,087
|
|
|
5,305
|
|
||
FCC licenses
|
|
624
|
|
|
629
|
|
||
Trademarks
|
|
1,218
|
|
|
1,218
|
|
||
Other indefinite lived intangible assets
|
|
20
|
|
|
20
|
|
||
|
|
$
|
6,949
|
|
|
$
|
7,172
|
|
Other long-term liabilities
|
|
|
|
|
||||
Pension and postretirement medical plan liabilities
|
|
$
|
5,184
|
|
|
$
|
3,940
|
|
Other
|
|
2,522
|
|
|
2,429
|
|
||
|
|
$
|
7,706
|
|
|
$
|
6,369
|
|
|
Broadcast
Programming
|
|
Operating
Leases
|
|
Other
|
|
Total
|
||||||||
2017
|
$
|
6,119
|
|
|
$
|
477
|
|
|
$
|
1,880
|
|
|
$
|
8,476
|
|
2018
|
6,015
|
|
|
376
|
|
|
1,006
|
|
|
7,397
|
|
||||
2019
|
6,221
|
|
|
329
|
|
|
502
|
|
|
7,052
|
|
||||
2020
|
6,416
|
|
|
278
|
|
|
486
|
|
|
7,180
|
|
||||
2021
|
6,314
|
|
|
227
|
|
|
206
|
|
|
6,747
|
|
||||
Thereafter
|
19,925
|
|
|
1,419
|
|
|
2,567
|
|
|
23,911
|
|
||||
|
$
|
51,010
|
|
|
$
|
3,106
|
|
|
$
|
6,647
|
|
|
$
|
60,763
|
|
2017
|
$
|
35
|
|
2018
|
24
|
|
|
2019
|
17
|
|
|
2020
|
15
|
|
|
2021
|
15
|
|
|
Thereafter
|
495
|
|
|
Total minimum obligations
|
601
|
|
|
Less amount representing interest
|
(407
|
)
|
|
Present value of net minimum obligations
|
194
|
|
|
Less current portion
|
(20
|
)
|
|
Long-term portion
|
$
|
174
|
|
|
|
Fair Value Measurement at October 1, 2016
|
||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
||||||||||
Investments
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
85
|
|
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
||||
Foreign exchange
|
|
—
|
|
|
596
|
|
|
—
|
|
|
596
|
|
||||
Other
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Foreign exchange
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
|
(510
|
)
|
||||
Other
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Total recorded at fair value
|
|
$
|
85
|
|
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
292
|
|
Fair value of borrowings
|
|
$
|
—
|
|
|
$
|
19,500
|
|
|
$
|
1,579
|
|
|
$
|
21,079
|
|
|
|
Fair Value Measurement at October 3, 2015
|
||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investments
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
||||
Foreign exchange
|
|
—
|
|
|
910
|
|
|
—
|
|
|
910
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
(178
|
)
|
||||
Other
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
||||
Other
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
(96
|
)
|
||||
Total recorded at fair value
|
|
$
|
36
|
|
|
$
|
795
|
|
|
$
|
(96
|
)
|
|
$
|
735
|
|
Fair value of borrowings
|
|
$
|
—
|
|
|
$
|
17,036
|
|
|
$
|
752
|
|
|
$
|
17,788
|
|
|
As of October 1, 2016
|
||||||||||||||
|
Current
Assets
|
|
Other Assets
|
|
Other
Accrued
Liabilities
|
|
Other Long-
Term
Liabilities
|
||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
$
|
278
|
|
|
$
|
191
|
|
|
$
|
(209
|
)
|
|
$
|
(163
|
)
|
Interest rate
|
—
|
|
|
132
|
|
|
(13
|
)
|
|
—
|
|
||||
Other
|
3
|
|
|
3
|
|
|
(4
|
)
|
|
—
|
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
125
|
|
|
2
|
|
|
(133
|
)
|
|
(5
|
)
|
||||
Gross fair value of derivatives
|
406
|
|
|
328
|
|
|
(359
|
)
|
|
(168
|
)
|
||||
Counterparty netting
|
(241
|
)
|
|
(199
|
)
|
|
316
|
|
|
124
|
|
||||
Cash collateral (received)/paid
|
(77
|
)
|
|
(44
|
)
|
|
7
|
|
|
—
|
|
||||
Net derivative positions
|
$
|
88
|
|
|
$
|
85
|
|
|
$
|
(36
|
)
|
|
$
|
(44
|
)
|
|
As of October 3, 2015
|
||||||||||||||
|
Current
Assets
|
|
Other Assets
|
|
Other
Accrued
Liabilities
|
|
Other Long-
Term
Liabilities
|
||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
$
|
406
|
|
|
$
|
271
|
|
|
$
|
(54
|
)
|
|
$
|
(17
|
)
|
Interest rate
|
—
|
|
|
101
|
|
|
—
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(3
|
)
|
||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
146
|
|
|
87
|
|
|
(102
|
)
|
|
(5
|
)
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
||||
Gross fair value of derivatives
|
552
|
|
|
459
|
|
|
(174
|
)
|
|
(42
|
)
|
||||
Counterparty netting
|
(136
|
)
|
|
(56
|
)
|
|
169
|
|
|
23
|
|
||||
Cash collateral received
|
(238
|
)
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
||||
Net derivative positions
|
$
|
178
|
|
|
$
|
212
|
|
|
$
|
(5
|
)
|
|
$
|
(19
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Gain (loss) on interest rate swaps
|
$
|
18
|
|
|
$
|
60
|
|
|
$
|
(38
|
)
|
Gain (loss) on hedged borrowings
|
(18
|
)
|
|
(60
|
)
|
|
38
|
|
|
Costs and Expenses
|
|
Interest Income/
(Expense), net
|
|
Income Tax Expense
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
Net gains (losses) on foreign currency denominated assets and liabilities
|
$
|
2
|
|
|
$
|
(574
|
)
|
|
$
|
(269
|
)
|
|
$
|
(2
|
)
|
|
$
|
42
|
|
|
$
|
24
|
|
|
$
|
49
|
|
|
$
|
40
|
|
|
$
|
34
|
|
Net gains (losses) on foreign exchange risk management contracts not designated as hedges
|
(65
|
)
|
|
558
|
|
|
216
|
|
|
—
|
|
|
(43
|
)
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Net gains (losses)
|
$
|
(63
|
)
|
|
$
|
(16
|
)
|
|
$
|
(53
|
)
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
40
|
|
|
$
|
34
|
|
•
|
Prospectively for the recognition of excess tax benefits and deficiencies in the tax provision
|
•
|
Retrospectively or prospectively for the classification of excess tax benefits and deficiencies in the statement of cash flows
|
•
|
Retrospectively for the classification of cash paid for shares withheld to satisfy employee taxes in the statement of cash flows
|
(unaudited)
|
|
Q1
(1)
|
|
Q2
(2)
|
|
Q3
(3)
|
|
Q4
(4)
|
||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
15,244
|
|
|
$
|
12,969
|
|
|
$
|
14,277
|
|
|
$
|
13,142
|
|
Segment operating income
(5)
|
|
4,267
|
|
|
3,822
|
|
|
4,456
|
|
|
3,176
|
|
||||
Net income
|
|
2,910
|
|
|
2,276
|
|
|
2,712
|
|
|
1,892
|
|
||||
Net income attributable to Disney
|
|
2,880
|
|
|
2,143
|
|
|
2,597
|
|
|
1,771
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
1.73
|
|
|
$
|
1.30
|
|
|
$
|
1.59
|
|
|
$
|
1.10
|
|
Basic
|
|
1.74
|
|
|
1.31
|
|
|
1.60
|
|
|
1.10
|
|
||||
2015
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
13,391
|
|
|
$
|
12,461
|
|
|
$
|
13,101
|
|
|
$
|
13,512
|
|
Segment operating income
(5)
|
|
3,545
|
|
|
3,482
|
|
|
4,120
|
|
|
3,534
|
|
||||
Net income
|
|
2,244
|
|
|
2,228
|
|
|
2,639
|
|
|
1,741
|
|
||||
Net income attributable to Disney
|
|
2,182
|
|
|
2,108
|
|
|
2,483
|
|
|
1,609
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
1.27
|
|
|
$
|
1.23
|
|
|
$
|
1.45
|
|
|
$
|
0.95
|
|
Basic
|
|
1.28
|
|
|
1.24
|
|
|
1.46
|
|
|
0.96
|
|
(1)
|
Results for the first quarter of fiscal 2016 included the Vice Gain, which had a favorable impact of
$0.13
on earnings per diluted share, partially offset by restructuring and impairment charges (
$0.03
per diluted share). These items resulted in a net positive benefit of
$0.10
on diluted earnings per share.
|
(2)
|
Results for the second quarter of fiscal 2016 included an adverse impact of
$0.06
on diluted earnings per share due to the Infinity Charge.
|
(3)
|
Results for the third quarter of fiscal 2016 included restructuring and impairment charges, which had an adverse impact of
$0.03
on diluted earnings per share.
|
(4)
|
Results for the fourth quarter of fiscal 2016 included a favorable adjustment to the Infinity Charge taken in the second quarter (
$0.01
per diluted share), partially offset by restructuring and impairment charges (
$0.01
per diluted share). Results for the fourth quarter of fiscal 2015 included a non-cash charge in connection with the write-off of a deferred tax asset as a result of the Disneyland Paris recapitalization (
$0.24
per diluted share) and restructuring and impairment charges (
$0.02
per diluted share), which collectively resulted in a net adverse impact of
$0.25
per diluted share.
|
(5)
|
Segment operating results reflect earnings before the Infinity Charge, corporate and unallocated shared expenses, restructuring and impairment charges, other expense, interest income/(expense), income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees except for the Vice Gain.
|
1 Year Walt Disney Chart |
1 Month Walt Disney Chart |
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