Walt Disney Co., balance sheet: debt

US$ in millions

	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Short-term finance lease liabilities	30)	37)	37)	41)	37)	5)
Current portion of borrowings	6,845)	4,330)	3,070)	5,866)	5,711)	8,857)
Borrowings, excluding current portion	38,970)	42,101)	45,299)	48,540)	52,917)	38,129)
Long-term finance lease liabilities	160)	206)	219)	246)	271)	146)
Total borrowings and finance lease liabilities (carrying amount)	46,005)	46,674)	48,625)	54,693)	58,936)	47,137)

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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 2022 to 2023 and from 2023 to 2024.

	Sep 28, 2024
Selected Financial Data (US$ in millions)
Borrowings	43,709)
Finance lease liabilities	190)
Total borrowings and finance lease liabilities (fair value)	43,899)
Financial Ratio
Debt, fair value to carrying amount ratio	0.95

Effective interest rate on borrowings and finance leases: 4.80%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.47%	3,040)	166)
4.71%	40,496)	1,907)
4.80%	1,886)	91)
5.75%	1,292)	74)
6.70%	190)	13)
Total	46,904)	2,251)
4.80%

¹ US$ in millions

² Weighted-average interest rate = 100 × 2,251 ÷ 46,904 = 4.80%

Walt Disney Co., interest costs incurred

US$ in millions

12 months ended:	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Interest expense, net of capitalized interest	2,070)	1,973)	1,549)	1,546)	1,647)	1,246)
Interest capitalized	386)	365)	261)	187)	157)	222)
Interest costs incurred	2,456)	2,338)	1,810)	1,733)	1,804)	1,468)

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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 2022 to 2023 and from 2023 to 2024.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Walt Disney Co. interest capitalized increased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to The Walt Disney Company (Disney)	4,972)	2,354)	3,145)	1,995)	(2,864)	11,054)
Add: Net income attributable to noncontrolling interest	801)	1,036)	360)	512)	390)	530)
Less: Income (loss) from discontinued operations, net of income tax	—)	—)	(48)	(29)	(32)	671)
Add: Income tax expense	1,796)	1,379)	1,732)	25)	699)	3,031)
Add: Interest expense	2,070)	1,973)	1,549)	1,546)	1,647)	1,246)
Earnings before interest and tax (EBIT)	9,639)	6,742)	6,834)	4,107)	(96)	15,190)

Interest costs incurred	2,456)	2,338)	1,810)	1,733)	1,804)	1,468)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	4.66	3.42	4.41	2.66	-0.06	12.19
Adjusted interest coverage ratio (with capitalized interest)²	3.92	2.88	3.78	2.37	-0.05	10.35

2024 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 9,639 ÷ 2,070 = 4.66

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 9,639 ÷ 2,456 = 3.92

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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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Walt Disney Co. (NYSE:DIS)

Analysis of Debt