Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Walt Disney Co., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Federal	1,475)	436)	594)	95)	14)	2,240)
State	402)	282)	129)	148)	112)	362)
Foreign	867)	846)	554)	731)	824)	642)
Current	2,744)	1,564)	1,277)	974)	950)	3,244)
Federal	(1,180)	407)	(526)	279)	1,829)	(1,577)
State	4)	26)	(220)	(29)	259)	(20)
Foreign	(189)	(265)	(506)	(525)	(7)	16)
Deferred	(1,365)	168)	(1,252)	(275)	2,081)	(1,581)
Income tax expense from continuing operations	1,379)	1,732)	25)	699)	3,031)	1,663)

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).

Download chart

Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Walt Disney Co. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Walt Disney Co. deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Income tax expense from continuing operations	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Walt Disney Co. income tax expense from continuing operations increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Walt Disney Co., effective income tax rate (EITR) reconciliation

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	24.50%
State taxes, net of federal benefit	5.80%	3.10%	1.90%	4.30%	1.90%	1.90%
Tax rate differential on foreign income	0.10%	4.30%	12.00%	-16.50%	0.30%	0.00%
Foreign derived intangible income	-4.30%	-3.40%	-6.40%	0.00%	-1.10%	0.00%
Tax impact of equity awards	2.10%	0.00%	-5.30%	3.70%	-0.30%	0.00%
Legislative changes	0.00%	1.70%	-12.20%	4.40%	-0.30%	-11.50%
Income tax audits and reserves	1.30%	2.70%	-4.80%	-6.10%	-0.60%	0.00%
Goodwill impairment	3.50%	0.00%	0.00%	-41.10%	0.00%	0.00%
Valuation allowance	-1.80%	4.50%	2.60%	-14.60%	0.10%	0.40%
Domestic production activity deduction	0.00%	0.00%	0.00%	0.00%	0.00%	-1.40%
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate	0.00%	0.00%	0.00%	0.00%	0.00%	-1.10%
Other	1.20%	-1.10%	-7.80%	4.80%	0.70%	-1.50%
Effective income tax rate	28.90%	32.80%	1.00%	-40.10%	21.70%	11.30%

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).

Download chart

Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Walt Disney Co. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Walt Disney Co., components of deferred tax assets and liabilities

US$ in millions

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Net operating losses and tax credit carryforwards	3,841)	3,527)	3,944)	3,137)	2,181)	1,437)
Accrued liabilities	1,335)	1,570)	2,544)	2,952)	2,575)	1,214)
Lease liabilities	852)	748)	764)	825)	23)	—)
Licensing revenues	115)	124)	202)	—)	—)	—)
Other	623)	819)	725)	652)	540)	328)
Deferred tax assets before valuation allowance	6,766)	6,788)	8,179)	7,566)	5,319)	2,979)
Valuation allowance	(3,187)	(2,859)	(2,795)	(2,410)	(1,975)	(1,383)
Deferred tax assets	3,579)	3,929)	5,384)	5,156)	3,344)	1,596)
Depreciable, amortizable and other property	(7,581)	(8,575)	(7,916)	(8,574)	(7,647)	(3,678)
Investment in U.S. entities	(1,271)	(1,798)	(2,775)	(1,956)	(2,258)	(189)
Right-of-use lease assets	(751)	(676)	(697)	(740)	—)	—)
Licensing revenues	—)	—)	—)	(189)	(573)	(265)
Investment in foreign entities	(482)	(543)	(392)	(266)	(146)	(351)
Other	(81)	(64)	(164)	(390)	(212)	(88)
Deferred tax liabilities	(10,166)	(11,656)	(11,944)	(12,115)	(10,836)	(4,571)
Net deferred tax asset (liability)	(6,587)	(7,727)	(6,560)	(6,959)	(7,492)	(2,975)

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).

Download chart

Item	Description	The company
Deferred tax assets before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Walt Disney Co. deferred tax assets before valuation allowance decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Walt Disney Co. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Walt Disney Co. net deferred tax asset (liability) decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Walt Disney Co., deferred tax assets and liabilities, classification

US$ in millions

		Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
	Deferred tax assets	671)	636)	686)	329)	410)	134)
	Deferred tax liabilities	7,258)	8,363)	7,246)	7,288)	7,902)	3,109)

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).

Download chart

Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Walt Disney Co. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Walt Disney Co. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

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: Noncurrent deferred tax assets, net	671)	636)	686)	329)	410)	134)
Total assets (adjusted)	204,908)	202,995)	202,923)	201,220)	193,574)	98,464)
Adjustment to Total Liabilities
Total liabilities (as reported)	92,567)	95,253)	101,385)	104,037)	91,132)	44,643)
Less: Noncurrent deferred tax liabilities, net	7,258)	8,363)	7,246)	7,288)	7,902)	3,109)
Total liabilities (adjusted)	85,309)	86,890)	94,139)	96,749)	83,230)	41,534)
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: Net deferred tax assets (liabilities)	(6,587)	(7,727)	(6,560)	(6,959)	(7,492)	(2,975)
Total Disney Shareholder’s equity (adjusted)	105,864)	102,735)	95,113)	90,542)	96,369)	51,748)
Adjustment to Net Income (loss) Attributable To The Walt Disney Company (Disney)
Net income (loss) attributable to The Walt Disney Company (Disney) (as reported)	2,354)	3,145)	1,995)	(2,864)	11,054)	12,598)
Add: Deferred income tax expense (benefit)	(1,365)	168)	(1,252)	(275)	2,081)	(1,581)
Net income (loss) attributable to The Walt Disney Company (Disney) (adjusted)	989)	3,313)	743)	(3,139)	13,135)	11,017)

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

Download chart

Walt Disney Co., adjusted financial ratios

	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018
Net Profit Margin
Reported net profit margin	2.65%	3.80%	2.96%	-4.38%	15.89%	21.20%
Adjusted net profit margin	1.11%	4.00%	1.10%	-4.80%	18.88%	18.54%
Total Asset Turnover
Reported total asset turnover	0.43	0.41	0.33	0.32	0.36	0.60
Adjusted total asset turnover	0.43	0.41	0.33	0.32	0.36	0.60
Financial Leverage
Reported financial leverage	2.07	2.14	2.30	2.41	2.18	2.02
Adjusted financial leverage	1.94	1.98	2.13	2.22	2.01	1.90
Return on Equity (ROE)
Reported ROE	2.37%	3.31%	2.25%	-3.43%	12.44%	25.83%
Adjusted ROE	0.93%	3.22%	0.78%	-3.47%	13.63%	21.29%
Return on Assets (ROA)
Reported ROA	1.15%	1.54%	0.98%	-1.42%	5.70%	12.78%
Adjusted ROA	0.48%	1.63%	0.37%	-1.56%	6.79%	11.19%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Walt Disney Co. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
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 adjusted net income divided by adjusted shareholders’ equity.	Walt Disney Co. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted 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

Download chart

	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)
Revenues	88,898)	82,722)	67,418)	65,388)	69,570)	59,434)
Profitability Ratio
Net profit margin¹	2.65%	3.80%	2.96%	-4.38%	15.89%	21.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to The Walt Disney Company (Disney)	989)	3,313)	743)	(3,139)	13,135)	11,017)
Revenues	88,898)	82,722)	67,418)	65,388)	69,570)	59,434)
Profitability Ratio
Adjusted net profit margin²	1.11%	4.00%	1.10%	-4.80%	18.88%	18.54%

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 Net profit margin = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Revenues
= 100 × 2,354 ÷ 88,898 = 2.65%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to The Walt Disney Company (Disney) ÷ Revenues
= 100 × 989 ÷ 88,898 = 1.11%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Walt Disney Co. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	88,898)	82,722)	67,418)	65,388)	69,570)	59,434)
Adjusted total assets	204,908)	202,995)	202,923)	201,220)	193,574)	98,464)
Activity Ratio
Adjusted total asset turnover²	0.43	0.41	0.33	0.32	0.36	0.60

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 ÷ 204,908 = 0.43

Download chart

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	204,908)	202,995)	202,923)	201,220)	193,574)	98,464)
Adjusted total Disney Shareholder’s equity	105,864)	102,735)	95,113)	90,542)	96,369)	51,748)
Solvency Ratio
Adjusted financial leverage²	1.94	1.98	2.13	2.22	2.01	1.90

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
= 204,908 ÷ 105,864 = 1.94

Download chart

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to The Walt Disney Company (Disney)	989)	3,313)	743)	(3,139)	13,135)	11,017)
Adjusted total Disney Shareholder’s equity	105,864)	102,735)	95,113)	90,542)	96,369)	51,748)
Profitability Ratio
Adjusted ROE²	0.93%	3.22%	0.78%	-3.47%	13.63%	21.29%

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 × Adjusted net income (loss) attributable to The Walt Disney Company (Disney) ÷ Adjusted total Disney Shareholder’s equity
= 100 × 989 ÷ 105,864 = 0.93%

Download chart

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

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to The Walt Disney Company (Disney)	989)	3,313)	743)	(3,139)	13,135)	11,017)
Adjusted total assets	204,908)	202,995)	202,923)	201,220)	193,574)	98,464)
Profitability Ratio
Adjusted ROA²	0.48%	1.63%	0.37%	-1.56%	6.79%	11.19%

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 × Adjusted net income (loss) attributable to The Walt Disney Company (Disney) ÷ Adjusted total assets
= 100 × 989 ÷ 204,908 = 0.48%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)