Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Walt Disney Co., balance sheet: goodwill and intangible assets

US$ in millions

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Character/franchise intangibles, copyrights and trademarks	10,572)	10,572)	10,572)	10,572)	10,577)	5,829)
MVPD agreements	8,056)	8,058)	8,089)	8,098)	9,900)	—)
Other amortizable intangible assets	4,016)	4,045)	4,303)	4,309)	4,291)	1,213)
Gross amortizable intangible assets	22,644)	22,675)	22,964)	22,979)	24,768)	7,042)
Accumulated amortization	(11,375)	(9,630)	(7,641)	(5,598)	(3,393)	(2,070)
Net amortizable intangible assets	11,269)	13,045)	15,323)	17,381)	21,375)	4,972)
Indefinite lived intangible assets	1,792)	1,792)	1,792)	1,792)	1,840)	1,840)
Intangible assets	13,061)	14,837)	17,115)	19,173)	23,215)	6,812)
Goodwill	77,067)	77,897)	78,071)	77,689)	80,293)	31,269)
Goodwill and other intangible assets	90,128)	92,734)	95,186)	96,862)	103,508)	38,081)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

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Item	Description	The company
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Walt Disney Co. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Walt Disney Co. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Walt Disney Co. goodwill and other intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Walt Disney Co., adjustments to financial statements

US$ in millions

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Adjustment to Total Assets
Total assets (as reported)	205,579)	203,631)	203,609)	201,549)	193,984)	98,598)
Less: Goodwill	77,067)	77,897)	78,071)	77,689)	80,293)	31,269)
Total assets (adjusted)	128,512)	125,734)	125,538)	123,860)	113,691)	67,329)
Adjustment to Total Disney Shareholder’s Equity
Total Disney Shareholder’s equity (as reported)	99,277)	95,008)	88,553)	83,583)	88,877)	48,773)
Less: Goodwill	77,067)	77,897)	78,071)	77,689)	80,293)	31,269)
Total Disney Shareholder’s equity (adjusted)	22,210)	17,111)	10,482)	5,894)	8,584)	17,504)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

Walt Disney Co., Financial Data: Reported vs. Adjusted

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Walt Disney Co., adjusted financial ratios

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Total Asset Turnover
Reported total asset turnover	0.43	0.41	0.33	0.32	0.36	0.60
Adjusted total asset turnover	0.69	0.66	0.54	0.53	0.61	0.88
Financial Leverage
Reported financial leverage	2.07	2.14	2.30	2.41	2.18	2.02
Adjusted financial leverage	5.79	7.35	11.98	21.01	13.24	3.85
Return on Equity (ROE)
Reported ROE	2.37%	3.31%	2.25%	-3.43%	12.44%	25.83%
Adjusted ROE	10.60%	18.38%	19.03%	-48.59%	128.77%	71.97%
Return on Assets (ROA)
Reported ROA	1.15%	1.54%	0.98%	-1.42%	5.70%	12.78%
Adjusted ROA	1.83%	2.50%	1.59%	-2.31%	9.72%	18.71%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Walt Disney Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Walt Disney Co. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Walt Disney Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Walt Disney Co. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Walt Disney Co., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	88,898)	82,722)	67,418)	65,388)	69,570)	59,434)
Total assets	205,579)	203,631)	203,609)	201,549)	193,984)	98,598)
Activity Ratio
Total asset turnover¹	0.43	0.41	0.33	0.32	0.36	0.60
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	88,898)	82,722)	67,418)	65,388)	69,570)	59,434)
Adjusted total assets	128,512)	125,734)	125,538)	123,860)	113,691)	67,329)
Activity Ratio
Adjusted total asset turnover²	0.69	0.66	0.54	0.53	0.61	0.88

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 88,898 ÷ 205,579 = 0.43

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 88,898 ÷ 128,512 = 0.69

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Walt Disney Co. adjusted total asset turnover ratio improved 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
As Reported
Selected Financial Data (US$ in millions)
Total assets	205,579)	203,631)	203,609)	201,549)	193,984)	98,598)
Total Disney Shareholder’s equity	99,277)	95,008)	88,553)	83,583)	88,877)	48,773)
Solvency Ratio
Financial leverage¹	2.07	2.14	2.30	2.41	2.18	2.02
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	128,512)	125,734)	125,538)	123,860)	113,691)	67,329)
Adjusted total Disney Shareholder’s equity	22,210)	17,111)	10,482)	5,894)	8,584)	17,504)
Solvency Ratio
Adjusted financial leverage²	5.79	7.35	11.98	21.01	13.24	3.85

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Disney Shareholder’s equity
= 205,579 ÷ 99,277 = 2.07

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Disney Shareholder’s equity
= 128,512 ÷ 22,210 = 5.79

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Walt Disney Co. adjusted financial leverage ratio decreased 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
As Reported
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)
Total Disney Shareholder’s equity	99,277)	95,008)	88,553)	83,583)	88,877)	48,773)
Profitability Ratio
ROE¹	2.37%	3.31%	2.25%	-3.43%	12.44%	25.83%
Adjusted for Goodwill
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)
Adjusted total Disney Shareholder’s equity	22,210)	17,111)	10,482)	5,894)	8,584)	17,504)
Profitability Ratio
Adjusted ROE²	10.60%	18.38%	19.03%	-48.59%	128.77%	71.97%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total Disney Shareholder’s equity
= 100 × 2,354 ÷ 99,277 = 2.37%

² Adjusted ROE = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Adjusted total Disney Shareholder’s equity
= 100 × 2,354 ÷ 22,210 = 10.60%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Walt Disney Co. adjusted ROE deteriorated 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
As Reported
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)
Total assets	205,579)	203,631)	203,609)	201,549)	193,984)	98,598)
Profitability Ratio
ROA¹	1.15%	1.54%	0.98%	-1.42%	5.70%	12.78%
Adjusted for Goodwill
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)
Adjusted total assets	128,512)	125,734)	125,538)	123,860)	113,691)	67,329)
Profitability Ratio
Adjusted ROA²	1.83%	2.50%	1.59%	-2.31%	9.72%	18.71%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total assets
= 100 × 2,354 ÷ 205,579 = 1.15%

² Adjusted ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Adjusted total assets
= 100 × 2,354 ÷ 128,512 = 1.83%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Walt Disney Co. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Walt Disney Co. (NYSE:DIS)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Walt Disney Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Walt Disney Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)