Walt Disney Co., balance sheet: debt

US$ in millions

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Short-term finance lease liabilities	37)	37)	41)	37)	5)	12)
Current portion of borrowings	4,330)	3,070)	5,866)	5,711)	8,857)	3,790)
Borrowings, excluding current portion	42,101)	45,299)	48,540)	52,917)	38,129)	17,084)
Long-term finance lease liabilities	206)	219)	246)	271)	146)	142)
Total borrowings and finance lease liabilities (carrying amount)	46,674)	48,625)	54,693)	58,936)	47,137)	21,028)

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Debt item	Description	The company
Total borrowings and finance lease liabilities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Walt Disney Co. total debt decreased from 2021 to 2022 and from 2022 to 2023.

	Sep 30, 2023
Selected Financial Data (US$ in millions)
Borrowings	41,456)
Finance lease liabilities	243)
Total borrowings and finance lease liabilities (fair value)	41,699)
Financial Ratio
Debt, fair value to carrying amount ratio	0.89

Effective interest rate on borrowings and finance leases: 4.96%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.95%	46,431)	2,298)
6.50%	37)	2)
6.50%	206)	13)
Total	46,674)	2,314)
4.96%

¹ US$ in millions

² Weighted-average interest rate = 100 × 2,314 ÷ 46,674 = 4.96%

Walt Disney Co., interest costs incurred

US$ in millions

12 months ended:	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Interest expense, net of capitalized interest	1,973)	1,549)	1,546)	1,647)	1,246)	682)
Interest capitalized	365)	261)	187)	157)	222)	125)
Interest costs incurred	2,338)	1,810)	1,733)	1,804)	1,468)	807)

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Debt item	Description	The company
Interest expense, net of capitalized interest	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Walt Disney Co. interest expense, net of capitalized interest increased from 2021 to 2022 and from 2022 to 2023.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Walt Disney Co. interest capitalized increased from 2021 to 2022 and from 2022 to 2023.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Walt Disney Co. interest costs incurred increased from 2021 to 2022 and from 2022 to 2023.

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Selected Financial Data (US$ in millions)
Net income (loss) attributable to The Walt Disney Company (Disney)	2,354)	3,145)	1,995)	(2,864)	11,054)	12,598)
Add: Net income attributable to noncontrolling interest	1,036)	360)	512)	390)	530)	468)
Less: Income (loss) from discontinued operations, net of income tax	—)	(48)	(29)	(32)	671)	—)
Add: Income tax expense	1,379)	1,732)	25)	699)	3,031)	1,663)
Add: Interest expense	1,973)	1,549)	1,546)	1,647)	1,246)	682)
Earnings before interest and tax (EBIT)	6,742)	6,834)	4,107)	(96)	15,190)	15,411)

Interest costs incurred	2,338)	1,810)	1,733)	1,804)	1,468)	807)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	3.42	4.41	2.66	-0.06	12.19	22.60
Adjusted interest coverage ratio (with capitalized interest)²	2.88	3.78	2.37	-0.05	10.35	19.10

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,742 ÷ 1,973 = 3.42

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,742 ÷ 2,338 = 2.88

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Walt Disney Co. adjusted interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Walt Disney Co. (NYSE:DIS)

Analysis of Debt