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What changed in Walt Disney Company (The)'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Walt Disney Company (The)'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+441 added−459 removedSource: 10-K (2025-11-13) vs 10-K (2024-11-14)

Top changes in Walt Disney Company (The)'s 2025 10-K

441 paragraphs added · 459 removed · 362 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

112 edited+26 added−28 removed54 unchanged
Biggest changeEXPERIENCES The lines of business within Experiences along with their significant business activities include the following: • Parks & Experiences: ◦ Domestic: ▪ Theme parks and resorts: • Walt Disney World Resort in Florida • Disneyland Resort in California ▪ Experiences: • Disney Cruise Line • Disney Vacation Club • National Geographic Expeditions (owned 73% by the Company) and Adventures by Disney • Aulani, a Disney Resort & Spa in Hawaii ◦ International: ▪ Theme parks and resorts: • Disneyland Paris • Hong Kong Disneyland Resort (48% ownership interest and consolidated in our financial results) • Shanghai Disney Resort (43% ownership interest and consolidated in our financial results) • In addition, the Company licenses its IP to a third party that owns and operates Tokyo Disney Resort • Consumer Products: ◦ Licensing of our trade names, characters, visual, literary and other IP to various manufacturers, game developers, publishers and retailers throughout the world, for use on merchandise, published materials and games ◦ Sale of branded merchandise through online, retail and wholesale businesses, and development and publishing of books, comic books and magazines (except National Geographic magazine, which is reported in Entertainment) 9 TABLE OF CONTENTS The significant revenues of Experiences are as follows: • Theme park admissions - Sales of tickets for admission to our theme parks and for premium access to certain attractions (e.g.
Biggest changeEXPERIENCES The lines of business within Experiences along with their significant business activities include the following: • Parks & Experiences: ◦ Domestic: ▪ Theme parks and resorts: • Walt Disney World Resort in Florida • Disneyland Resort in California ▪ Experiences: • Disney Cruise Line • Disney Vacation Club, including Aulani, a Disney Resort & Spa in Hawaii • National Geographic Expeditions (owned 73% by the Company) and Adventures by Disney ◦ International: ▪ Theme parks and resorts: • Disneyland Paris • Hong Kong Disneyland Resort (48% ownership interest and consolidated in our financial results) • Shanghai Disney Resort (43% ownership interest and consolidated in our financial results) • In addition, the Company licenses its IP to a third party that owns and operates Tokyo Disney Resort • Consumer Products: ◦ Licensing of our trade names, characters, visual, literary and other IP to various manufacturers, game developers, publishers and retailers throughout the world, for use on merchandise, published materials and games ◦ Sale of branded merchandise through online, retail and wholesale businesses, and development and publishing of books, comic books and magazines (except National Geographic magazine, which is reported in Entertainment) The revenues of Experiences are as follows: • Theme park admissions - Sales of tickets for admission to our theme parks and for premium access to certain attractions • Resorts and vacations - Sales of room nights at hotels, sales of cruise and other vacations and sales and rentals of vacation club properties • Parks & Experiences merchandise, food and beverage - Sales of merchandise, food and beverages at our theme parks and resorts and cruise ships • Merchandise licensing and retail: ◦ Merchandise licensing - Royalties from licensing our IP for use on consumer goods ◦ Retail - Sales of merchandise through internet shopping sites, at The Disney Store and to wholesalers • Parks licensing and other - Revenues from sponsorships and co-branding opportunities, real estate rent and sales and royalties earned on Tokyo Disney Resort revenues The expenses of Experiences are as follows: • Operating expenses, consisting of operating labor, infrastructure costs, costs of goods sold and distribution costs and other operating expenses.
Tokyo Disney Resort Tokyo Disney Resort is located on 494 acres of land, six miles east of downtown Tokyo, Japan. The Company earns royalties on revenues generated by the Tokyo Disney Resort, which is owned and operated by Oriental Land Co., Ltd. (OLC), a third-party Japanese corporation.
Tokyo Disney Resort Tokyo Disney Resort is located six miles east of downtown Tokyo, Japan, on 494 acres of land. The Company earns royalties on revenues generated by the Tokyo Disney Resort, which is owned and operated by Oriental Land Co., Ltd. (OLC), a third-party Japanese corporation.
Original content is generally produced under the following banners: Disney Branded Television; FX Productions; Lucasfilm; Marvel; National Geographic Studios; Pixar; Searchlight Pictures; Twentieth Century Studios; 20th Television; and Walt Disney Pictures. Original content is also commissioned and produced by various third-party studios. Program development is carried out in collaboration with writers, producers and creative teams.
Original content is generally produced under the following banners: Disney Branded Television; FX Productions; Lucasfilm; Marvel; National Geographic Studios; Pixar; Searchlight Pictures; Twentieth Century Studios; 20th Television; and Walt Disney Pictures. Original content is also commissioned from and produced by various third-party studios. Program development is carried out in collaboration with writers, producers and creative teams.
The resort is located on Lantau Island on 310 acres and is in close proximity to the Hong Kong International Airport and the Hong Kong-Zhuhai-Macau Bridge. Hong Kong Disneyland Resort includes one theme park and three themed resort hotels. A separate Hong Kong subsidiary of the Company is responsible for managing Hong Kong Disneyland Resort.
The resort is located on Lantau Island on 310 acres of land and is in close proximity to the Hong Kong International Airport and the Hong Kong-Zhuhai-Macau Bridge. Hong Kong Disneyland Resort includes one theme park and three themed resort hotels. A separate Hong Kong subsidiary of the Company is responsible for managing Hong Kong Disneyland Resort.
Major properties licensed by the Company include: Mickey and Friends, Star Wars, Spider-Man, Disney Princess, Lilo & Stitch, Frozen, Avengers, Winnie the Pooh and Toy Story. Retail The Company sells Disney-, Marvel-, Pixar- and Lucasfilm-branded products through Disney Store branded internet sites and Disney Store branded retail locations.
Major properties licensed by the Company include: Mickey and Friends, Lilo & Stitch, Star Wars, Spider-Man, Disney Princess, Frozen, Avengers, Winnie the Pooh and Toy Story. Retail The Company sells Disney-, Marvel-, Pixar- and Star Wars-branded products through Disney Store internet sites and retail locations.
Some of our key programs and initiatives to attract, develop and retain our diverse workforce include: • Health, financial, family resources, well-being and other benefits: Disney’s benefit offerings are designed to meet the varied and evolving needs of our diverse employees and their families.
Some of our key programs and initiatives to attract, develop and retain our workforce include: • Health, financial, family resources, well-being and other benefits: Disney’s benefit offerings are designed to meet the varied and evolving needs of our employees and their families.
ABC Network produces a variety of unscripted series, primetime specials, news and daytime programming. Disney Channels Branded television channels include: Disney Channel; Disney Junior; and Disney XD (collectively Disney Channels).
ABC Network produces a variety of unscripted programming, primetime specials, news and daytime programming. Disney Channels Branded television channels include: Disney Channel; Disney Junior; and Disney XD (collectively Disney Channels).
It also includes a stadium, as well as two venues designed for cheerleading, dance competitions and other indoor sports. Other recreational amenities and activities available at the Walt Disney World Resort include three championship golf courses, miniature golf courses, full-service spas, tennis, sailing, swimming, horseback riding and a number of other sports and leisure time activities.
It also includes a stadium and two venues designed for cheerleading, dance competitions and other indoor sports. Other recreational amenities and activities available at the Walt Disney World Resort include three championship golf courses, miniature golf courses, full-service spas, tennis, sailing, swimming, horseback riding and a number of other sports and leisure time activities.
The Communications Act generally restricts foreign individuals or entities from collectively owning more than 25% of the voting or equity interest in a U.S. entity that controls a broadcast television license. FCC approval is required to exceed the 25% threshold. • Regulation of programming .
The Communications Act generally restricts foreign individuals or entities from collectively owning more than 25% of the voting or equity interest in a U.S. entity that controls a broadcast television licensee. FCC approval is required to exceed the 25% threshold. • Regulation of programming .
The areas are home to approximately 150 venues including the World of Disney retail store, which includes approximately 38,000 square feet of retail space. Most of the Disney Springs facilities are operated by third parties that pay rent to the Company. Ten independently-operated hotels with approximately 7,000 rooms are situated on property leased from the Company.
The areas are home to approximately 150 venues including the World of Disney retail store, which includes approximately 38,000 square feet of retail space. Most of the offerings at Disney Springs are operated by third parties that pay rent to the Company. Ten independently-operated hotels with approximately 7,000 rooms are situated on property leased from the Company.
International Content Regulation The laws and regulations in many international jurisdictions in which we operate, including in the EU and Canada, require our linear networks or our DTC streaming services to include a certain amount of programming produced in specific jurisdictions or languages or require us to invest specified amounts of our revenues in local content or to acquire content produced by local independent production companies.
International Content Regulation The laws and regulations in many international jurisdictions in which we operate require our linear networks or our DTC streaming services to include a certain amount of programming produced in specific jurisdictions or languages or require us to invest specified amounts of our revenues in local content or to acquire content produced by local independent production companies.
The park features more than 300 species of live mammals, birds, reptiles and amphibians and 3,000 varieties of vegetation. DinoLand USA will be rethemed and in 2027, is planned to open as Tropical Americas, which will feature themed attractions, restaurants, merchandise shops and entertainment experiences.
Each area contains themed attractions, restaurants, merchandise shops and entertainment experiences. The park features more than 300 species of live mammals, birds, reptiles and amphibians and 3,000 varieties of vegetation. DinoLand USA will be rethemed and in 2027, is planned to open as Tropical Americas, which will feature themed attractions, restaurants, merchandise shops and entertainment experiences.
ESPN Wide World of Sports Complex is a 230 acre center that hosts professional caliber training and competitions, festival and tournament events and interactive sports activities. The complex, which welcomes both amateur and professional athletes, accommodates multiple sporting events, including baseball, basketball, football, soccer, softball, tennis and track and field.
The ESPN Wide World of Sports Complex is an approximately 230 acre center that hosts professional-caliber training and competitions, festival and tournament events and interactive sports activities. The complex, which welcomes both amateur and professional athletes, accommodates multiple sporting events, including baseball, basketball, football, soccer, softball, tennis and track and field.
Consolidation and other market conditions in the cable, satellite and telecommunication distribution industry, including subscriber levels, and other factors may adversely affect the Company’s ability to obtain and maintain contractual terms for the distribution of its various programming services that are as favorable as those currently in place.
Consolidation and other market conditions in the cable, satellite and telecommunication distribution industry, including changes in subscriber levels, the prevalence of streaming services and other factors may adversely affect the Company’s ability to obtain and maintain contractual terms for the distribution of its various programming services that are as favorable as those currently in place.
The stations we own are as follows: TV Station Market Television Market Ranking (1) WABC New York, NY 1 KABC Los Angeles, CA 2 WLS Chicago, IL 3 WPVI Philadelphia, PA 4 KTRK Houston, TX 6 KGO San Francisco, CA 10 WTVD Raleigh-Durham, NC 22 KFSN Fresno, CA 52 (1) Based on Nielsen Media Research, U.S.
The stations we own are as follows: TV Station Market Television Market Ranking (1) WABC New York, NY 1 KABC Los Angeles, CA 2 WLS Chicago, IL 3 WPVI Philadelphia, PA 5 KTRK Houston, TX 6 KGO San Francisco, CA 10 WTVD Raleigh-Durham, NC 22 KFSN Fresno, CA 55 (1) Based on Nielsen Media Research, U.S.
The resort also includes two water parks: Disney’s Blizzard Beach and Disney’s Typhoon Lagoon. Disneyland Resort The Disneyland Resort is located in Anaheim, California on approximately 550 acres of land. The Disneyland Resort includes two theme parks (Disneyland and Disney California Adventure), three resort hotels and a retail, dining and entertainment complex (Downtown Disney).
The resort also includes two water parks: Disney’s Blizzard Beach and Disney’s Typhoon Lagoon. 10 TABLE OF CONTENTS Disneyland Resort The Disneyland Resort is located in Anaheim, California on approximately 550 acres of land. The resort includes two theme parks (Disneyland and Disney California Adventure), three hotels and a retail, dining and entertainment complex (Downtown Disney).
New legislation, court action or regulation in this area could have an impact on the Company’s operations. The foregoing is a brief summary of certain provisions of the Communications Act, other legislation and specific FCC rules and policies.
New legislation, court action or regulation in this area could have an impact on the Company’s operations. 15 TABLE OF CONTENTS The foregoing is a brief summary of certain provisions of the Communications Act, other legislation and specific FCC rules and policies.
Family Family channels include Disney Channel and Disney Junior, which air a variety of animated and live action original series and movies targeted to kids ages 2 to 14. As of September 2024, the estimated number of unique subscribers for our family channels, based on internal management reports, was approximately 200 million.
Family Family channels include Disney Channel and Disney Junior, which air a variety of animated and live action original series and movies targeted to kids ages 2 to 14. As of September 2025, the estimated number of unique subscribers for our family channels, based on internal management reports, was approximately 130 million.
AVAILABLE INFORMATION Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports are available without charge on our website, www.disney.com/investors, as soon as reasonably practicable after they are filed electronically with the U.S. Securities and Exchange Commission (SEC).
AVAILABLE INFORMATION Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports are available without charge on our website, www.disney.com/investors, as soon as reasonably practicable after they are filed electronically with the U.S.
A number of the Disney Village facilities are operated by third parties that pay rent to the Company. Val d’Europe is a planned community near Disneyland Paris that is being developed in phases. Val d’Europe currently includes a regional train station, hotels and a town center consisting of a shopping center as well as office, commercial and residential space.
Several of the offerings at Disney Village are operated by third parties that pay rent to the Company. Val d’Europe is a planned community near Disneyland Paris that is being developed in phases. Val d’Europe currently includes a regional train station, hotels and a town center consisting of a shopping center as well as office, commercial and residential space.
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. 15 TABLE OF CONTENTS • Station ownership limits .
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. • Station ownership limits .
Shanghai Disneyland — Shanghai Disneyland consists of eight themed areas: Adventure Isle, Fantasyland, Gardens of Imagination, Mickey Avenue, Tomorrowland, Toy Story Land, Treasure Cove and Zootopia, which opened in December 2023. These areas feature themed attractions, shows, restaurants, merchandise shops and entertainment experiences. Hotels and Other Facilities — Shanghai Disneyland Resort includes two themed hotels with approximately 1,200 rooms.
Shanghai Disneyland — Shanghai Disneyland consists of eight themed areas: Adventure Isle, Fantasyland, Gardens of Imagination, Mickey Avenue, Tomorrowland, Toy Story Land, Treasure Cove and Zootopia. These areas feature themed attractions, shows, restaurants, merchandise shops and entertainment experiences. Hotels and Other Facilities — Shanghai Disneyland Resort includes two themed hotels with approximately 1,200 rooms.
To support these objectives, the Company’s human resources programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay, benefit and perquisite programs; enhance the Company’s culture through efforts aimed at making the workplace more engaging and inclusive; acquire talent and facilitate internal talent mobility to create a high-performing, diverse workforce; engage employees as brand ambassadors of the Company’s content, products and experiences; and evolve and invest in technology, tools and resources to enable employees at work.
The Company’s human resources programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay, benefit and perquisite programs; enhance the Company’s culture through efforts aimed at making the workplace more engaging and inclusive; acquire talent and facilitate internal talent mobility to create a high-performing workforce; engage employees as brand ambassadors of the Company and evolve and invest in technology, tools and resources to enable employees at work.
The licensing, retail and wholesale businesses are influenced by seasonal consumer purchasing behavior, which generally results in higher revenues during the Company’s first and fourth fiscal quarter, and by the timing and performance of theatrical and game releases and cable programming broadcasts.
The licensing, retail and wholesale businesses are influenced by seasonal consumer purchasing behavior, which generally results in higher revenues during the Company’s first and fourth fiscal quarter, and by the timing and performance of theatrical and game releases and direct-to-consumer programming.
With respect to the sale of advertising time, we compete with other television networks, independent television stations, MVPDs and other advertising media such as digital content, newspapers, magazines, radio and billboards. The Sports television networks compete with other networks for carriage by MVPDs.
With respect to the sale of advertising time, we compete with other television networks, independent television stations, MVPDs and other advertising media such as online search, marketplaces, social media and other digital content, newspapers, magazines, radio and billboards. The Sports television networks compete with other networks for carriage by MVPDs.
Primetime programming includes scripted series, reality programming and a variety of movies and specials. ESPN programs the sports daypart on ABC Network, which is branded ESPN on ABC. ABC Network distributes programming to approximately 245 local affiliated television stations and to our eight owned television stations, which collectively reach almost 100% of U.S. television households.
Primetime programming includes scripted and unscripted programming, movies and specials. ESPN programs the sports daypart on ABC Network, which is branded ESPN on ABC. ABC Network distributes programming to approximately 245 local affiliated television stations and to our eight owned television stations, which collectively reach almost 100% of U.S. television households.
We are also subject to privacy legal and regulatory requirements in many jurisdictions outside the United States, including the General Data Protection Regulation in the European Union and similar comprehensive data privacy legislation in 16 TABLE OF CONTENTS the UK.
We are also subject to privacy legal and regulatory requirements in many jurisdictions outside the United States, including the General Data Protection Regulation in the European Union and similar comprehensive data privacy legislation in the UK.
Advertising revenues at Linear Networks and Direct-to-Consumer are subject to seasonal advertising patterns and changes in viewership levels. In general, domestic advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months. Affiliate revenues vary with the subscriber levels of MVPDs.
Advertising revenues at Linear Networks and Direct-to-Consumer are subject to seasonal and cyclical advertising patterns and changes in viewership levels. In general, domestic advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months. Affiliate and subscription revenues vary with the subscriber levels of MVPDs and our streaming services.
Hotels, Vacation Club Units and Other Resort Facilities — As of September 28, 2024, the Company owned and operated three resort hotels and vacation club properties at the Disneyland Resort, with approximately 2,400 rooms and 180 vacation club units. Resort facilities included 180,000 square feet of conference meeting space.
Hotels, Vacation Club Units and Other Resort Facilities — As of September 27, 2025, the Company owned and operated three resort hotels and vacation club properties at the Disneyland Resort, with approximately 2,400 rooms and 180 vacation club units. Resort facilities included approximately 170,000 square feet of conference meeting space.
Tokyo DisneySea — Tokyo DisneySea is divided into eight “ports of call,” including American Waterfront, Arabian Coast, Lost River Delta, Mediterranean Harbor, Mermaid Lagoon, Mysterious Island, Port Discovery and Fantasy Springs, which opened in June 2024.
Tokyo DisneySea — Tokyo DisneySea is divided into eight “ports of call,” including American Waterfront, Arabian Coast, Lost River Delta, Mediterranean Harbor, Mermaid Lagoon, Mysterious Island, Port Discovery and Fantasy Springs.
Consumer Products Licensing The Company’s merchandise licensing operations cover a diverse range of product categories, the most significant of which are: toys, apparel, games, home décor and furnishings, accessories, health and beauty, food, footwear, stationery and consumer electronics.
Consumer Products Licensing The Company’s merchandise licensing operations cover a diverse range of product categories, including: toys, apparel, games, home décor and furnishings, accessories, health and beauty, food, stationery, footwear and consumer electronics.
Disneytown is an 11-acre outdoor complex of retail, dining, and entertainment venues located adjacent to Shanghai Disneyland. Most Disneytown facilities are operated by third parties that pay rent to Shanghai Disney Resort. The Company is currently constructing a third themed hotel, which will have approximately 400 rooms.
Disneytown is an 11-acre outdoor complex of retail, dining, and entertainment venues located adjacent to Shanghai Disneyland. Most of the offerings at Disneytown are operated by third parties that pay rent to Shanghai Disney Resort. A third themed hotel, which will have approximately 400 rooms, is currently under construction.
General Entertainment General Entertainment channels include FX, National Geographic and Star branded channels, which air a variety of scripted, reality and documentary programming. As of September 2024, the estimated number of unique subscribers for our general entertainment channels, based on internal management reports, was approximately 240 million.
General Entertainment General Entertainment channels include FX and National Geographic, which air a variety of scripted, reality and documentary programming. As of September 2025, the estimated number of unique subscribers for our general entertainment channels, based on internal management reports, was approximately 145 million.
With respect to the sale of advertising time, we compete with other television networks, independent television stations, MVPDs, other DTC streaming services and other advertising media such as digital content, newspapers, magazines, radio and billboards. Our television stations primarily compete for audiences and advertisers in local market areas. Linear Networks compete with other networks for carriage by MVPDs.
With respect to the sale of advertising time, we compete with other television networks, independent television stations, MVPDs, other DTC streaming services and other advertising media such as online search, marketplaces, social media and other digital content, newspapers, magazines, radio and billboards. Our television stations primarily compete for audiences and advertisers in local market areas.
The library of content includes approximately 5,200 live-action film titles, 450 animated film titles and episodic series (series with four or more seasons include approximately: 75 dramas; 55 comedies; 40 non-scripted series; 15 animated series; and 10 live-action series). In addition, the library includes approximately 130 series and 80 films that were produced for initial distribution on our DTC platforms.
The library of content includes approximately 5,300 live-action film titles, 460 animated film titles and episodic series (series with four or more seasons include approximately: 80 dramas; 55 comedies; 40 non-scripted series; 15 animated series; and 10 live-action series). In addition, the library includes approximately 150 series and 100 films that were produced for initial distribution on our DTC platforms.
National Geographic Channels air programming in genres such as travel, adventure, wildlife, documentary, science and history. 3 TABLE OF CONTENTS The number of subscribers (in millions) for the significant domestic branded channels are as follows: Subscribers (1) Disney Channel 66 Freeform 55 FX 67 National Geographic 66 (1) Based on Nielsen Media Research estimates as of September 2024.
National Geographic Channels air programming in genres such as travel, adventure, wildlife, documentary, science and history. 3 TABLE OF CONTENTS The number of subscribers (in millions) for the significant domestic branded channels are as follows: Subscribers (1) Disney Channel 61 Freeform 51 FX 62 National Geographic 61 (1) Based on Nielsen Media Research estimates as of September 2025.
Rights include the National Football League (NFL), college football (including bowl games and the College Football Playoff) and basketball, the National Basketball Association (NBA), mixed martial arts, Major League Baseball (MLB), the National Hockey League (NHL), soccer, Top Rank Boxing, Formula 1, US Open Tennis, the Wimbledon Championships, the Masters golf tournament, the Professional Golfers’ Association (PGA) Championship and the Women’s National Basketball Association (WNBA).
Rights include the National Football League (NFL), college football (including bowl games and the College Football Playoff) and basketball, the National Basketball Association (NBA), mixed martial arts (through the end of calendar 2025), Major League Baseball (MLB), the National Hockey League (NHL), soccer, US Open Tennis, Formula 1 (through the end of calendar 2025), the Wimbledon Championships, the Masters golf tournament, the Women’s National Basketball Association (WNBA) and the Professional Golfers’ Association (PGA) Championship.
Television Household Estimates, January 1, 2024 International Linear Networks International Linear Networks use content from the Company’s various studios, including library titles, as well as content acquired from third parties. The Company operates approximately 265 general entertainment and family channels outside the U.S. in approximately 40 languages and 175 countries/territories.
Television Household Estimates, January 1, 2025 International Linear Networks International Linear Networks use content from the Company’s various studios, including library titles, as well as content acquired from third parties. The Company operates approximately 180 general entertainment and family channels outside the U.S. in approximately 30 languages and 170 countries/territories.
Cumulatively through September 28, 2024, the Company has released approximately 1,100 full-length live-action films and 100 full-length animated films. In the domestic and most major international markets, we generally distribute and market our films directly. In certain international markets our films are distributed by independent companies. In some territories, certain films may be exclusively distributed on our DTC streaming services.
Cumulatively through fiscal year 2025, the Company has released approximately 1,100 full-length live-action films and 100 full-length animated films. Domestically and in most major international markets, we distribute and market our films directly. In certain international markets our films are distributed by independent companies. In some territories, certain films may be exclusively distributed on our DTC streaming services.
See Note 2 of the Consolidated Financial Statements for information on Hulu ownership. • Content Sales/Licensing ◦ Theatrical distribution ◦ Sale/licensing of film and episodic content to television and video-on-demand (TV/VOD) services ◦ Home entertainment distribution: electronic home video licenses, video-on-demand rentals and sales of DVD/Blu-ray discs ◦ Intersegment allocation of revenues from the Experiences segment, which is meant to reflect royalties on consumer products merchandise licensing revenues generated on intellectual property (IP) created by the Entertainment segment ◦ Staging and licensing of live entertainment events on Broadway and around the world (Stage Plays) ◦ Music distribution ◦ Post-production services by Industrial Light & Magic and Skywalker Sound Entertainment also includes the following activities that are reported with Content Sales/Licensing: • National Geographic magazine and online business (owned 73% by the Company) • A 30% ownership interest in Tata Play Limited, which operates a direct-to-home satellite distribution platform in India The significant revenues of Entertainment are as follows: • Subscription fees - Fees charged to customers/subscribers for our DTC streaming services • Advertising - Sales of advertising time/space • Affiliate fees - Fees charged to multi-channel video programming distributors (i.e. cable, satellite, telecommunications and digital OTT service providers) (MVPDs) for the right to deliver our programming to their customers.
Subscribers to both Hulu and one of the ESPN DTC plans have access to certain sports content through Hulu. • Content Sales/Licensing ◦ Theatrical distribution ◦ Sale/licensing of film and episodic content to television and video-on-demand (TV/VOD) services ◦ Home entertainment distribution: electronic home video licenses, video-on-demand rentals and licensing of physical (DVD/Blu-ray discs) distribution rights ◦ Intersegment allocation of revenues from the Experiences segment, which is meant to reflect royalties on consumer products merchandise licensing revenues generated on intellectual property (IP) created by the Entertainment segment ◦ Staging and licensing of live entertainment events on Broadway and around the world (Stage Plays) ◦ Music distribution ◦ Post-production services by Industrial Light & Magic and Skywalker Sound Theatrical, TV/VOD and home entertainment distribution revenues are collectively referred to as “content sales.” Entertainment also includes the following activities that are reported with Content Sales/Licensing: • National Geographic magazine and online business (owned 73% by the Company) • A 30% ownership interest in Tata Play Limited, which operates a direct-to-home satellite distribution platform in India The revenues of Entertainment are as follows: • Subscription fees - Fees charged to customers/subscribers for our DTC streaming services, including fees charged to multi-channel video programming distributors (i.e. cable, satellite and telecommunications providers and vMVPDs) (MVPDs) and other distributors • Advertising - Sales of advertising time/space • Affiliate fees - Fees charged to MVPDs for the right to deliver our programming to their customers.
The resort includes two theme parks (Tokyo Disneyland and Tokyo DisneySea); six Disney-branded hotels; six other hotels (operated by third parties other than OLC); a retail, dining and entertainment complex (Ikspiari); and Bon Voyage, a Disney-themed merchandise location. Tokyo Disneyland — Tokyo Disneyland consists of seven themed areas: Adventureland, Critter Country, Fantasyland, Tomorrowland, Toontown, Westernland and World Bazaar.
The resort includes two theme parks (Tokyo Disneyland and Tokyo DisneySea); hotels; a retail, dining and entertainment complex (Ikspiari); and Bon Voyage, a Disney-themed merchandise location. Tokyo Disneyland — Tokyo Disneyland consists of seven themed areas: Adventureland, Critter Country, Fantasyland, Tomorrowland, Toontown, Westernland and World Bazaar.
The Company is entitled to receive royalties and management fees based on the operating performance of Hong Kong Disneyland Resort. Hong Kong Disneyland — Hong Kong Disneyland consists of eight themed areas: Adventureland, Fantasyland, Grizzly Gulch, Main Street USA, Mystic Point, Tomorrowland, Toy Story Land and World of Frozen. These areas feature themed attractions, restaurants, merchandise shops and entertainment experiences.
The Company is entitled to receive royalties and management fees based on the revenues and operating performance, respectively, of Hong Kong Disneyland Resort. Hong Kong Disneyland — Hong Kong Disneyland consists of eight themed areas: Adventureland, Fantasyland, Grizzly Gulch, Main Street USA, Mystic Point, Tomorrowland, Toy Story Land and World of Frozen.
During fiscal 2025, we expect to release approximately 15 films. 5 TABLE OF CONTENTS The Company incurs significant marketing and advertising costs before and throughout the theatrical release of a film in an effort to generate public awareness of the film, to increase the public’s intent to view the film and to help generate consumer interest in the subsequent home entertainment and other ancillary markets.
The Company incurs significant marketing and advertising costs before and throughout the theatrical release of a film in an effort to generate public awareness of the film, to increase the public’s intent to view the film and to help generate consumer interest in the subsequent home entertainment and other ancillary markets.
The significant revenues of Sports are as follows: • Affiliate fees • Advertising • Subscription fees • Other revenue - Fees from the following activities: pay-per-view events on ESPN+, sub-licensing of sports rights, programming ESPN on ABC and licensing the ESPN brand 7 TABLE OF CONTENTS The significant expenses of Sports are as follows: • Operating expenses, consisting primarily of programming and production costs, technology support costs, operating labor and distribution costs.
The revenues of Sports are as follows: • Affiliate and subscription fees • Advertising • Other revenue - Fees from the following activities: pay-per-view events on the ESPN DTC services, sub-licensing of sports rights, programming ESPN on ABC and licensing the ESPN brand The expenses of Sports are as follows: • Operating expenses, consisting of programming and production costs and other operating expenses.
Hotels, Vacation Club Properties and Other Resort Facilities — As of September 28, 2024, the Company owned and operated 18 resort hotels and vacation club properties at the Walt Disney World Resort, with approximately 23,000 rooms and 10 TABLE OF CONTENTS 3,600 vacation club units.
Hotels, Vacation Club Properties and Other Resort Facilities — As of September 27, 2025, the Company owned and operated 18 resort hotels and vacation club properties at the Walt Disney World Resort, with approximately 23,000 rooms and 3,900 vacation club units.
Disney’s Animal Kingdom — Disney’s Animal Kingdom consists of a 145-foot tall Tree of Life centerpiece surrounded by five themed areas: Africa, Asia, DinoLand USA, Discovery Island and Pandora - The World of Avatar. Each themed area contains attractions, restaurants, merchandise shops and entertainment experiences.
The areas provide behind-the-scenes glimpses of Hollywood-style action through various themed attractions, restaurants, merchandise shops and entertainment experiences. Disney’s Animal Kingdom — Disney’s Animal Kingdom consists of a 145-foot tall Tree of Life centerpiece surrounded by five themed areas: Africa, Asia, DinoLand USA, Discovery Island and Pandora - The World of Avatar.
The licensing and retail business competes with other licensors, retailers and publishers of character, brand and celebrity names, as well as other licensors, publishers and developers of game software, online video content, websites, other types of home entertainment and retailers of toys and kids merchandise.
The licensing and retail business competes with other licensors, retailers and publishers of character, brand and celebrity names, as well as other licensors, publishers and developers of game software, online video content, websites, other types of home entertainment and retailers of toys and kids merchandise. All of the Parks & Experiences businesses are operated on a year-round basis.
The lines of business within Entertainment along with their significant business activities include the following: • Linear Networks ◦ Domestic: ABC Television Network (ABC Network); Disney, Freeform, FX and National Geographic (owned 73% by the Company) branded television channels; and eight owned ABC television stations ◦ International: Disney, FX, National Geographic (owned 73% by the Company) and Star branded general entertainment television channels outside of the U.S. ◦ A 50% equity investment in A+E Television Networks (A+E), which operates cable channels including A&E, HISTORY and Lifetime • Direct-to-Consumer ◦ Disney+: a global direct-to-consumer (DTC) service that primarily offers general entertainment and family programming ◦ Disney+ Hotstar: a DTC service primarily in India that offers general entertainment, family and sports programming. ◦ Hulu: a U.S.
The lines of business within Entertainment along with their significant business activities include the following: • Linear Networks ◦ Domestic: ABC Television Network (ABC Network); Disney, Freeform, FX and National Geographic (owned 73% by the Company) branded television channels; and eight owned ABC television stations ◦ International: Disney, FX and National Geographic (owned 73% by the Company) branded television channels ◦ A 50% equity investment in A+E Global Media (formerly A+E Television Networks) (A+E), which develops and distributes content globally • Direct-to-Consumer ◦ Disney+: a global direct-to-consumer (DTC) service that primarily offers general entertainment and family programming.
Advertising revenues generated from sports programming are also impacted by the timing of sports seasons and events, which timing may vary throughout the year or may take place periodically (e.g. biannually, quadrennially). Affiliate revenues vary with the subscriber levels of MVPDs.
Advertising revenues are subject to changes in viewership levels and the demand for sports programming. Advertising revenues generated from sports programming are also impacted by the timing of sports seasons and events, which timing may vary throughout the year or may take place periodically (e.g. biannually, quadrennially).
The Company’s contractual agreements with MVPDs are renewed or renegotiated from time to time in the ordinary course of business.
Linear Networks compete with other networks for carriage by MVPDs. The Company’s contractual agreements with MVPDs are renewed or renegotiated from time to time in the ordinary course of business.
Estimates include traditional MVPD and the majority of digital OTT subscriber counts. Domestic Television Stations The Company owns eight television stations, six of which are located in the top ten television household markets in the U.S. Our television stations collectively reach approximately 20% of U.S. television households.
Domestic Television Stations The Company owns eight television stations, six of which are located in the top ten television household markets in the U.S. Our television stations collectively reach approximately 20% of U.S. television households.
At September 28, 2024, the Company operates approximately 40 stores in Japan, 20 stores in North America, two stores in Europe and one store in China. The Company creates, distributes and publishes a variety of products in multiple countries and languages based on the Company’s branded franchises.
At fiscal year end 2025, the Company operated approximately 40 stores in Japan, 20 stores in North America, two stores in Europe and one store in China. The Company creates, distributes and publishes a variety of products, primarily children’s books and comic books, in multiple countries and languages based on the Company’s branded franchises.
Content Sales/Licensing businesses compete with all forms of entertainment and a significant number of companies that produce and/or distribute film and episodic content, distribute products in the home entertainment market, provide pay TV/VOD services, and produce music and live theater.
Content Sales/Licensing businesses compete with all forms of entertainment and a significant number of companies that produce and/or distribute film and episodic content, distribute products in the home entertainment market, provide pay TV/VOD services, and produce music and live theater. 6 TABLE OF CONTENTS The operating results of Content Sales/Licensing fluctuate due to the timing and performance of releases in the theatrical, home entertainment and television markets.
The number of subscribers (in millions) for the significant domestic branded channels are as follows: Subscribers ESPN (1) 66 ESPN2 (1) 66 ESPNU (1) 47 ESPNEWS (2) 40 SEC Network (2) 45 ACC Network (2) 44 (1) Based on Nielsen Media Research estimates as of September 2024. Estimates include traditional MVPD and the majority of digital OTT subscriber counts.
The number of subscribers (in millions) for the significant domestic branded channels are as follows: Subscribers ESPN (1) 61 ESPN2 (1) 61 ESPNU (1) 42 ESPNEWS (2) 38 SEC Network (2) 42 ACC Network (2) 41 (1) Based on Nielsen Media Research estimates as of September 2025. Estimates include traditional MVPD and vMPVD subscriber counts.
These benefit offerings for eligible employees include: ◦ Healthcare options aimed at improving quality of care while limiting out-of-pocket costs ◦ Retirement and savings programs that help employees adapt to changing needs and unexpected events and drive financial security in the present and the future ◦ Family care resources, such as childcare and senior care programs, long-term care coverage and a family building benefit ◦ Paid time-off programs, including vacation and sick and family care leave ◦ Free mental health and well-being resources ◦ Global well-being programs, including in-person offerings through campus health clubs and virtual and onsite events and activities focused on physical, emotional, financial and social well-being ◦ Two Centers for Living Well in the Orlando area that offer convenient, on-demand access to board-certified physicians and counselors 14 TABLE OF CONTENTS • Diversity, Equity & Inclusion (DEI): Our DEI objectives are to build and sustain teams that reflect the life experiences of our audiences, while employing and supporting a diverse array of voices in our creative and production teams.
These benefit offerings for eligible employees include: ◦ Healthcare options aimed at improving quality of care while limiting out-of-pocket costs ◦ Retirement and savings programs that help employees adapt to changing needs and unexpected events and drive financial security in the present and the future ◦ Family care resources, such as childcare and senior care programs, long-term care coverage and a family building benefit ◦ Paid time-off programs, including vacation and sick and family care leave ◦ Free mental health and well-being resources ◦ Global well-being programs, including in-person offerings through campus health clubs and virtual and onsite events and activities focused on physical, emotional, financial and social well-being ◦ Two Centers for Living Well in the Orlando area that offer convenient, on-demand access to board-certified physicians and counselors • Talent Development and Education: We invest in creating opportunities to help employees grow and build their careers through training, professional development and educational programs. ◦ Our professional development programs are designed to support the career aspirations of our employees.
The Company employed approximately 233,000 people as of September 28, 2024, of which approximately 171,000 were employed in the U.S. and approximately 62,000 were employed outside the U.S. Our global workforce comprises approximately 76% full time and 16% part time employees, with another 8% being seasonal employees.
The Company employed approximately 231,000 people as of fiscal year end 2025, of which approximately 172,000 were employed in the U.S. and approximately 59,000 were employed outside the U.S. Our global workforce comprises approximately 76% full-time and 16% part-time employees, with another 8% being seasonal employees.
These laws and regulations increase our costs and impact our ability to operate our DTC streaming services and linear networks and distribute our films and programming in these markets.
These laws and regulations increase our costs and impact the way we operate our DTC streaming services and linear networks and the distribution of our films and programming in these markets.
The Walt Disney World Resort is marketed through a variety of international, national and local advertising and promotional activities. A number of attractions and restaurants in each of the theme parks are sponsored or operated by other companies under multi-year agreements.
The Walt Disney World Resort is marketed through a variety of international, national and local advertising and promotional activities. A number of attractions and restaurants in the theme parks are sponsored or operated by other companies under multi-year agreements. Magic Kingdom — The Magic Kingdom consists of six themed areas: Adventureland, Fantasyland, Frontierland, Liberty Square, Main Street USA and Tomorrowland.
Aulani, a Disney Resort & Spa Aulani, a Disney Resort & Spa is a family resort on a 21 acre oceanfront property on Oahu, Hawaii featuring approximately 350 hotel rooms, an 18,000-square-foot spa and 12,000 square feet of conference meeting space. The resort also has approximately 480 vacation club units.
Aulani, a Disney Resort & Spa is a family resort on a 21 acre oceanfront property on Oahu, Hawaii featuring approximately 480 vacation club units, 350 hotel rooms, an 18,000-square-foot spa and 12,000 square feet of conference meeting space. DVC had a total of approximately 4,700 (two-bedroom equivalent) vacation club units as of fiscal year end 2025.
We are providing the address to our website solely for the information of investors. We do not intend our website address to be an active link or to otherwise incorporate the contents of the website into this report.
Therefore, we encourage investors, the media, and others interested in Disney to review the information we post on our Investor Relations website. We are providing the address to our website solely for the information of investors. We do not intend our website address to be an active link or to otherwise incorporate the contents of the website into this report.
We distribute through e-tailers such as Apple and Amazon, and MVPDs, such as Comcast and DirecTV, for electronic distribution. We have licensed the rights for physical distribution to third parties who generally sell to retailers, such as Walmart and Amazon. Physical distribution of film content in the home entertainment window generally starts within three months after the theatrical release.
We have licensed the rights for physical distribution to third parties who generally sell to retailers, such as Walmart and Amazon. 5 TABLE OF CONTENTS Electronic formats of film content in the home entertainment window are typically available approximately two months after the theatrical release and physical distribution generally starts within three to four months after the theatrical release.
Content Sales/Licensing and Other The majority of Content Sales/Licensing revenue is derived from TV/VOD, theatrical and home entertainment distribution. In addition, revenue is generated from music distribution, stage plays and post-production services through Industrial Light & Magic and Skywalker Sound. The Company also publishes National Geographic magazine, which is reported with Content Sales/Licensing.
In addition, revenue is generated from music distribution, stage plays and post-production services through Industrial Light & Magic and Skywalker Sound. The Company also publishes National Geographic magazine, which is reported with Content Sales/Licensing. Theatrical Distribution The Company licenses full-length live-action and animated films to theaters globally.
Linear Networks also generates revenues from fees charged to television stations affiliated with ABC Network. • Theatrical distribution - Rentals from licensing our films to theaters • TV/VOD distribution - Licensing fees for the right to use our film and episodic content 2 TABLE OF CONTENTS • Home entertainment distribution - Electronic sales and rentals of film and episodic content through distributors and royalties from the licensing of physical distribution rights • Other revenue - Revenues from licensing our music, ticket sales from stage play performances, fees from licensing our IP for use in stage plays, sales of post-production services and the allocation of consumer products merchandise licensing revenues The significant expenses of Entertainment are as follows: • Operating expenses, consisting primarily of programming and production costs, technology support costs, operating labor and distribution costs.
Linear Networks also generates revenues from fees charged to television stations affiliated with ABC Network. • Theatrical distribution - Rentals from licensing our films to theaters 2 TABLE OF CONTENTS • TV/VOD and home entertainment distribution ◦ Licensing fees for the right to use our film and episodic content ◦ Electronic sales and rentals of film and episodic content through distributors ◦ Fees from the licensing of physical distribution rights • Other revenue - Revenues from licensing our music, ticket sales from stage play performances, fees from licensing our IP for use in stage plays, sales of post-production services and the allocation of consumer products merchandise licensing revenues The expenses of Entertainment are as follows: • Operating expenses, consisting of the following: ◦ Programming and production costs, which include: ▪ Amortization of capitalized production costs ▪ Amortization of the costs of licensed programming rights ▪ Subscriber-based fees for programming our Hulu Live TV service, including fees paid by Hulu to ESPN and the Entertainment linear networks business for the right to air their linear networks on Hulu Live TV ▪ Production costs related to live programming (primarily news) ▪ Participations and residual expenses ▪ Fees paid to ESPN to program certain sports content on ABC Network and Disney+ ◦ Other operating expenses, which include technology support costs and distribution costs • Selling, general and administrative costs, including marketing costs • Depreciation and amortization Linear Networks The majority of Linear Networks revenue is derived from affiliate fees and advertising.
Magic Kingdom — The Magic Kingdom consists of six themed areas: Adventureland, Fantasyland, Frontierland, Liberty Square, Main Street USA and Tomorrowland. Each area provides a unique guest experience featuring themed attractions, restaurants, merchandise shops and entertainment experiences. EPCOT — EPCOT consists of four major themed areas: World Showcase, World Celebration, World Nature and World Discovery.
Each area provides a unique guest experience featuring themed attractions, restaurants, merchandise shops and entertainment experiences. EPCOT — EPCOT consists of four major themed areas: World Showcase, World Celebration, World Nature and World Discovery. All areas feature themed attractions, restaurants, merchandise shops and entertainment experiences.
The Company supports employees who make monetary donations to eligible nonprofits with a generous U.S. matching gifts program.
We also support communities in which we operate and the contributions of our employees. The Company supports employees who make monetary donations to eligible nonprofits with a generous U.S. matching gifts program.
We also license, acquire or produce local content for use in various countries/territories. 6 TABLE OF CONTENTS Competition and Seasonality Linear Networks and Direct-to-Consumer compete for viewers’ attention and audience share primarily with other television networks, independent television stations and other media, such as other DTC streaming services, social media and video games.
Competition and Seasonality Linear Networks and Direct-to-Consumer compete for viewers’ attention and audience share primarily with other television networks, independent television stations and other media, such as other DTC streaming services, social media and video games.
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.
FCC regulations that affect linear channels include the following: • Licensing of television stations . Each of the television 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.
Downtown Disney is a themed 15-acre retail, dining and entertainment complex with approximately 30 venues. Most of the Downtown Disney facilities are operated by third parties that pay rent to the Company.
Downtown Disney is an approximately 15-acre themed retail, dining and entertainment complex with approximately 40 venues including the World of Disney retail store, which includes approximately 25,000 square feet of retail space. Most of the offerings at Downtown Disney are operated by third parties that pay rent to the Company.
Many cruise vacations include a visit to Disney’s Castaway Cay, a 1,000-acre private Bahamian island, or Disney Lookout Cay at Lighthouse Point, which opened in June 2024 on approximately 600 acres of land on the island of Eleuthera.
Many cruises include a visit to Disney Castaway Cay, a 1,000-acre private Bahamian island, and/or Disney Lookout Cay at Lighthouse Point, which is located on approximately 600 acres of land on the island of Eleuthera. In fiscal 2026, Disney Cruise Line will add two new ships, the Disney Destiny and the Disney Adventure.
Peak attendance and resort occupancy generally occur during the summer months when school vacations occur and during early winter and spring holiday periods. In addition, theme park and resort revenues may be higher during significant celebrations such as theme park or character anniversaries and lower in the periods following such celebrations.
In addition, theme park and resort revenues may be higher during significant celebrations such as theme park or character anniversaries and lower in the periods following such celebrations.
HUMAN CAPITAL The Company’s key human capital management objectives are to attract, retain and develop the highest quality talent.
HUMAN CAPITAL The Company seeks to attract, retain and develop the highest quality talent.
The Live TV service is available with either of Hulu’s SVOD services and includes live linear streams of various cable and broadcast networks. In addition, Hulu offers subscriptions to premium services such as Max, Cinemax, Starz and Paramount+ with Showtime, which can be added to the Hulu service.
Hulu offers SVOD services with or without advertising in addition to the Hulu Live TV service. The Live TV service is available with either of Hulu’s SVOD services and includes live linear streams of various cable and broadcast networks.
STAR INDIA TRANSACTION The Company and Reliance Industries Limited (RIL) plan to close a transaction on or about November 14, 2024, which will form a joint venture that combines our Star-branded and other general entertainment and sports television channels and direct-to-consumer Disney+ Hotstar service in India (Star India) and certain media and entertainment businesses controlled by RIL (the Star India Transaction) (see Note 4 of the Consolidated Financial Statements for additional information).
INDIA JOINT VENTURE On November 14, 2024, the Company and Reliance Industries Limited (RIL) formed a joint venture (the India joint venture) that combined the Company’s Star-branded and other general entertainment and sports television channels and Disney+ Hotstar direct-to-consumer service in India (Star India) with certain media and entertainment businesses controlled by 13 TABLE OF CONTENTS RIL (the Star India Transaction).
Walt Disney Studios Park is undergoing a multi-year expansion that will include a new themed area based on Frozen , which is planned to open in 2026 and coincide with the renaming of Walt Disney Studios Park to Disney Adventure World. 11 TABLE OF CONTENTS Hotels and Other Facilities — Disneyland Paris operates seven resort hotels, with approximately 5,750 rooms and 250,000 square feet of conference meeting space.
Walt Disney Studios Park is undergoing a multi-year expansion that will include a new themed area based on Frozen , which is planned to open in 2026 and coincide with the renaming of Walt Disney Studios Park to Disney Adventure World.
We also use our Investor Relations website as a means of disclosing material non-public information. We may also use our Investor Relations website for the purpose of complying with our disclosure obligations under Regulation FD. Therefore, we encourage investors, the media, and others interested in Disney to review the information we post on our Investor Relations website.
Securities and Exchange Commission (SEC). 16 TABLE OF CONTENTS We also use our Investor Relations website as a means of disclosing material non-public information. We may also use our Investor Relations website for the purpose of complying with our disclosure obligations under Regulation FD.
Infrastructure costs include technology support costs, repairs and maintenance, utilities and fuel, property taxes, retail occupancy costs, insurance and transportation • Selling, general and administrative costs, including marketing costs • Depreciation and amortization Significant capital investments: • In recent years, the majority of the Company’s capital spend has been at our parks and experiences business, which is principally for theme park and resort expansion, new attractions, cruise ships, capital improvements and systems infrastructure.
Other operating expenses include costs for such items as supplies, commissions and entertainment offerings. • Selling, general and administrative costs, including marketing costs • Depreciation and amortization 9 TABLE OF CONTENTS Capital investments: • In recent years, the majority of the Company’s capital spend has been at our parks and experiences business, principally for theme park and resort expansion, new attractions, cruise ships, capital improvements and systems infrastructure.
The sixth Disney-branded hotel, Tokyo DisneySea Fantasy Springs Hotel, opened in June 2024. 12 TABLE OF CONTENTS Disney Vacation Club (DVC) DVC offers ownership interests in 17 resort properties located at the Walt Disney World Resort; Disneyland Resort; Aulani; Vero Beach, Florida; and Hilton Head Island, South Carolina.
The Company will earn royalties on revenues generated by OLC. 12 TABLE OF CONTENTS Disney Vacation Club (DVC) DVC offers ownership interests in 17 resort properties located at the Walt Disney World Resort; Disneyland Resort; Aulani, a Disney Resort & Spa in Hawaii; Vero Beach, Florida; and Hilton Head Island, South Carolina.
Consolidation and other market conditions in the cable, satellite and telecommunication distribution industry and other factors may adversely affect the Company’s ability to obtain and maintain contractual terms for the distribution of its various programming services that are as favorable as those currently in place.
Consolidation and other market conditions in the cable, satellite and telecommunication distribution industry and other factors may adversely affect the Company’s ability to obtain and maintain contractual terms for the distribution of its various programming services that are as favorable as those currently in place. 8 TABLE OF CONTENTS We also compete with other media and entertainment companies and video-on-demand services for sports rights, creative and performing talent and other programming, advertiser support and production facilities that are essential to the success of our Sports businesses.
Disneyland Paris Disneyland Paris is located approximately 20 miles east of Paris, France in Marne-la-Vallée, on approximately 5,200 acres. The land is being developed pursuant to a master agreement with French governmental authorities.
Disneyland Paris Disneyland Paris is located approximately 20 miles east of Paris, France in Marne-la-Vallée on a 5,200-acre site that is being developed by Disneyland Paris pursuant to a master agreement with French governmental authorities. To date, approximately two-thirds of the site has been developed including properties owned and operated by third parties and a planned community (Val d’Europe).
Programming and production costs include amortization of licensed sports rights and production costs related to live sports and other sports-related programming. • Selling, general and administrative costs, including marketing costs • Depreciation and amortization Domestic ESPN Branded television channels include seven 24-hour domestic television sports channels: • ESPN and ESPN2 - both dedicated to professional and college sports as well as sports news and original programming • ESPNU - dedicated to college sports • ESPNEWS - re-airs select ESPN studio shows and airs a variety of other programming • SEC Network - dedicated to Southeastern Conference college athletics • ACC Network - dedicated to Atlantic Coast Conference college athletics • ESPN Deportes - airs professional and college sports as well as studio shows in Spanish ESPN programs ESPN on ABC and recognizes the direct revenues and costs for this programming and receives a fee from the ABC Network, which is eliminated in consolidation.
Other operating expenses include technology support costs and distribution costs. • Selling, general and administrative costs, including marketing costs • Depreciation and amortization Domestic ESPN Branded television channels include the following 24-hour domestic television sports channels: • ESPN and ESPN2 - both dedicated to professional and college sports as well as sports news and original programming • ESPNU - dedicated to college sports • ESPNEWS - re-airs select ESPN studio shows and airs a variety of other programming • SEC Network - dedicated to Southeastern Conference college athletics • ACC Network - dedicated to Atlantic Coast Conference college athletics • ESPN Deportes - airs professional and college sports as well as studio shows in Spanish ESPN offers a U.S. subscription-based DTC service with two plans: ESPN Select and ESPN Unlimited, which started in August 2025.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFor example: • Our programming and production operations compete to obtain creative, performing, production and business talent, sports and other programming, story properties, advertiser support, production facilities and market share with traditional and new media platforms, including other video-on-demand services and sources of broadband delivered content, studio operators and television networks. • Our television networks and stations and DTC offerings compete for the sale of advertising time with traditional and new media platforms, including other television and video-on-demand services and various forms of internet and mobile delivered content, which offer advertising delivery technologies that are more targeted than can be achieved through traditional means, as well as with newspapers, magazines, billboards and radio stations. • Our television networks compete for carriage of their programming with other programming providers. • Our theme parks and resorts and experiences compete for guests with all other forms of entertainment, lodging, tourism and recreation activities and compete for technology, creative, performing and business talent, including with other theme park and resort operators. • Our content sales/licensing operations compete for customers with all other forms of entertainment. • Our consumer products business competes with other licensors and creators of IP. • Our DTC streaming services compete for customers with an increasing number of competitors’ DTC offerings, all other forms of media and all other forms of entertainment, as well as for technology, creative, performing and business talent and for content.
Biggest changeFor example: • Our programming and production operations compete to obtain creative, performing, production and business talent, sports and other programming, story properties, advertiser support, production facilities and market share with traditional and new media platforms, including other video-on-demand services and sources of broadband delivered content, studio operators and television networks. • Our linear networks and DTC streaming services compete for viewers and subscribers with an increasing number of competitors, including other DTC and linear offerings, all other forms of media and all other forms of entertainment, as well as for technology, creative, performing and business talent and for content. • Our linear networks, television stations and DTC services compete for the sale of advertising time with traditional and new media platforms, including other television and video-on-demand services and various forms of internet and mobile delivered platforms and content, which offer advertising delivery technologies that are more targeted than can be achieved through traditional means, as well as with other forms of advertising. • Our linear networks compete for carriage of their programming with other programming providers. • Our theme parks, resorts and experiences compete for guests with other theme parks and resorts, all other forms of entertainment, lodging, tourism and recreation activities and compete for technology, creative, performing and business talent, including with other theme park and resort operators. • Our content sales/licensing operations, including theatrical releases, compete for customers with all other forms of entertainment. • Our consumer products business competes with other licensors and creators of IP.
Moreover, we must often make substantial investments in content production and acquisition, acquisition of sports and programming rights, theme park attractions, cruise ships or hotels and other facilities or customer facing platforms before we know the extent to which these products will earn consumer acceptance, and the market, economic or social conditions are sometimes significantly different from the ones we anticipated at the time of the investment decisions.
Moreover, we must often make substantial investments in content production and acquisition, acquisition of sports and other programming rights, theme park attractions, cruise ships or hotels and other facilities or customer facing platforms before we know the extent to which these products will earn consumer acceptance, and the market, economic or social conditions are sometimes significantly different from the ones we anticipated at the time of the investment decisions.
Various factors have impacted, and may continue to impact, the price of our common stock, including, among others, changes in management; variations in our operating results; variations between our actual results and expectations of securities analysts; changes in our estimates, guidance or business plans; changes in financial estimates and recommendations by securities analysts; the activities, operating results or stock price of our competitors or other industry participants in the industries in which we operate; the announcement or completion of significant transactions by us or a competitor; events affecting the stock market generally; and the economic and political conditions in the U.S. and internationally, as well as other factors described in this Item 1A.
Various factors have impacted, and may continue to impact, the price of our common stock, including, among others, changes in management; variations in our operating results; variations between our actual results and expectations of securities analysts; changes in our estimates, guidance or business plans; changes in financial estimates and recommendations by securities analysts; the activities, operating results or stock price of our competitors or other industry participants in the industries in which we operate; the announcement or completion of significant transactions by us or a competitor; events affecting the stock market generally; and the economic, trade and political conditions in the U.S. and internationally, as well as other factors described in this Item 1A.
We have experienced flat subscriber growth or net losses of subscribers in periods. Our content does not always successfully attract and retain subscribers in the quantities that we expect. Our content is subject to cost pressures and may cost more than we expect. We may not successfully manage our costs to meet our profitability goals.
We have experienced flat subscriber growth or net losses of subscribers in periods. Our content does not always successfully attract and retain subscribers in the quantities that we expect. Our content is subject to cost pressures and may cost more than we expect. We may not successfully manage our costs to meet our goals.
For example, the terms of recent renewals of carriage agreements have included fewer of our linear networks or the opportunity to offer multiple genre-specific bundle options of fewer than all our linear networks while providing for certain of our DTC streaming services to be made available to the distributor’s subscribers.
For example, the terms of certain renewals of carriage agreements have included fewer of our linear networks or the opportunity to offer multiple genre-specific bundle options of fewer than all our linear networks while providing for certain of our DTC streaming services to be made available to the distributor’s subscribers.
We face an increasingly challenging cybersecurity environment with expanding and evolving threats from a variety of potential bad actors. While we employ various tools in an effort to protect our data and systems, certain of our defenses remain subject to human error.
We face an increasingly challenging cybersecurity environment with expanding and evolving threats from a variety of potential bad actors. While we employ various tools in an effort to protect our data and systems, certain aspects of our defenses remain subject to human error.
We adjust our business strategies from time to time in connection with changes in senior management and in our efforts to respond to changes in technology, consumer purchasing and consumption patterns, acceptance of our entertainment offerings, the market for advertising, macroeconomic conditions and other changes in the business environment.
We adjust our business strategies and plans from time to time in connection with changes in senior management and in our efforts to respond to changes in technology, consumer purchasing and consumption patterns, acceptance of our entertainment offerings, the market for advertising, macroeconomic conditions and other changes in the business environment.
See Item 1 — Privacy and Data Protection Regulation. • Regulation of the safety and supply chain of consumer products and theme park operations, including regulation regarding the sourcing, importation and the sale of goods. • Land planning, use and development regulations applicable to our theme parks operations. • Environmental protection regulations. • U.S. and international anti-corruption laws, sanction programs, trade restrictions, anti-money laundering laws or currency controls. • Restrictions on the manner in which content is currently licensed and distributed, ownership restrictions or film or television content requirements, investment obligations or quotas.
See Item 1 — Privacy and Data Protection Regulation. • Regulation of the safety and supply chain of consumer products and theme park operations, including regulation regarding the sourcing, importation and the sale of goods. • Land planning, use and development regulations applicable to our theme parks operations. • Environmental protection and sustainability regulations. • U.S. and international anti-corruption laws, sanction programs, trade restrictions, tariffs, anti-money laundering laws or currency controls. • Restrictions on the manner in which content is currently licensed and distributed, ownership restrictions or film or television content requirements, investment obligations or quotas.
Technological developments, including developments in generative AI tools that can be used to create competing low-cost content, and changes in market structure, including consolidation of suppliers of resources and distribution channels, increase competition in these areas.
Technological developments, including developments in generative AI tools that can be used to create competing low-cost content and products, and changes in market structure, including consolidation of suppliers of resources and distribution channels, increase competition in these areas.
We maintain information necessary to conduct our business, including confidential and proprietary information as well as personal information regarding our customers and employees, in digital form. We also use computer and cloud-based systems to deliver our products and services and operate our businesses.
We maintain information necessary to conduct our businesses, including confidential and proprietary information as well as personal information regarding our customers and employees, in digital form. We also use computer and cloud-based systems to deliver our products and services and operate our businesses.
The media entertainment and technology businesses in which we participate increasingly depend on our ability to successfully adapt to new technologies including shifting patterns of content consumption and how entertainment products are generated.
The media entertainment and technology businesses in which we participate increasingly depend on our ability to successfully adapt to new technologies, including shifting patterns of content consumption and how entertainment products and services are generated.
The operation and profitability of our businesses and demand for and consumption of our products and services, particularly our parks and experiences businesses, are highly dependent on the general environment for travel and tourism, including in the specific regions in which our parks and experiences businesses operate.
The operation of, and demand for and consumption of our products and services, particularly our parks and experiences businesses, are highly dependent on the general environment for travel and tourism, including in the specific regions in which our parks and experiences businesses operate.
RISKS RELATED TO INTELLECTUAL PROPERTY, CYBERSECURITY AND REGULATORY REQUIREMENTS The success of our businesses is highly dependent on the existence and maintenance of intellectual property rights in the entertainment products and services we create.
RISKS RELATED TO INTELLECTUAL PROPERTY, LITIGATION, CYBERSECURITY AND REGULATORY REQUIREMENTS The success of our businesses is highly dependent on the existence and maintenance of intellectual property rights in the entertainment products and services we create.
As a result, our portfolio of acquired programming rights, such as sporting events, and the distributors of our programming and the portfolio of programming rights our distributors acquire have changed and will continue to change over time.
Further, as a result, our portfolio of acquired programming rights, such as sporting events, and the distributors of our programming and the portfolio of programming rights our distributors acquire have changed and will continue to change over time.
Increased competition raises the cost of programming, including for sports and other products, and diverts consumers from our products and services or to other products and services or other forms of entertainment and experiences.
Increased competition raises the cost of programming, including for sports and other products, and diverts consumers from our offerings to other products and services or other forms of entertainment and experiences.
In addition to the factors affecting specific business operations identified in connection with the description of these operations and the financial results of these operations elsewhere in our filings with the SEC, the most significant factors affecting our business include the following: RISKS RELATED TO OUR BUSINESSES AND INDUSTRY Declines in U.S., global and regional economic conditions adversely affect the profitability of our businesses.
In addition to the factors affecting specific business operations identified in connection with the description of these operations and the financial results of these operations elsewhere in our filings with the SEC, the most significant factors affecting our business include the following: RISKS RELATED TO OUR BUSINESSES AND INDUSTRY Declines in U.S., global and regional economic conditions adversely affect our results of operations and financial condition.
With approximately 233,000 employees, the success of our businesses is substantially affected by our ability to attract and retain a workforce with the necessary skills for our varied businesses, including executing successfully on succession planning for the talent at all levels necessary to advance the Company’s key objectives and strategies.
With approximately 231,000 employees, the success of our businesses is substantially affected by our ability to attract and retain a workforce with the necessary skills for our varied businesses, including executing successfully on succession planning for the talent at all levels necessary to advance the Company’s key objectives and strategies.
Although we hedge exposure to fluctuations in certain foreign currencies, any such hedging activity may not substantially offset the negative financial impact of exchange rate fluctuations and is not expected to offset all such negative financial impact, particularly in periods of sustained U.S. dollar strength relative to multiple foreign currencies.
Although we hedge exposure to fluctuations in certain foreign currencies, any such hedging activity may not substantially offset the negative financial impact of exchange rate fluctuations and is not expected to offset all such negative financial impact, particularly in periods of sustained U.S. dollar strength or weakness relative to multiple foreign currencies.
In addition, licensing revenues fluctuate with the timing and performance of our theatrical releases and cable programming broadcasts. • Revenues from television networks and stations are subject to seasonal advertising patterns and changes in viewership levels, including related to certain sporting events.
In addition, licensing revenues fluctuate with the timing and performance of our theatrical releases and cable programming broadcasts. • Revenues from television networks and stations are subject to seasonal and other cyclical advertising patterns and changes in viewership levels, including related to certain sporting events.
Competition also reduces, or limits growth in, prices for our products and services, including advertising rates and subscription fees at our linear networks and DTC offerings, parks and resorts admissions and room rates and prices for consumer products from which we derive license revenues.
Competition also reduces, or limits growth in, prices for our products and services, including advertising rates and subscription fees at our linear networks and DTC offerings, parks and resorts admissions and room rates and prices for consumer products from which we derive licensing revenues.
Successful challenges to our rights in IP typically result in increased costs for obtaining rights or the loss of the opportunity to earn revenue from or utilize the IP that is the subject of challenged rights. From time to time, third parties allege that the Company is infringing certain third-party IP rights.
Successful challenges to our rights in IP typically result in increased costs for obtaining rights or the loss of the opportunity to earn revenue from or utilize the IP that is the subject of challenged rights. Routinely, third parties allege that the Company is infringing certain third-party IP rights.
The terms of some copyrights for IP related to some of our products and services have expired, including the copyright term for the short film Steamboat Willie (1928) and early versions of characters depicted in this film, and other copyrights will expire in the future.
The terms of some copyrights for IP related to some of our products and services have expired, and other copyrights will expire in the future. For example, the copyright term for the short film Steamboat Willie (1928) and early versions of characters depicted in this film have expired.
Our systems and users and those of third parties with whom we engage are continually attacked, sometimes successfully, and there can be no assurance that future incidents will not have material adverse effects on our operations or financial results. 25 TABLE OF CONTENTS Regulations applicable to our businesses impact the profitability of our businesses.
Our systems and users and those of third parties with whom we engage are continually attacked, sometimes successfully, and there can be no assurance that future incidents will not have material adverse effects on our operations or financial results. Regulations applicable to our businesses impact the profitability of our businesses.
Moreover, enforcement of laws in some international jurisdictions can be inconsistent and unpredictable, which can affect both our ability to enforce our rights and to undertake activities that we believe are beneficial to our business.
Moreover, enforcement of laws in some international jurisdictions can be inconsistent and unpredictable, which can affect both our ability to enforce our rights and to undertake activities that we believe are beneficial to our businesses.
For example, in the United States and countries that look to the United States copyright term when shorter than their own, the copyright term for early works and the specific early versions of characters depicted in those works expires at the end of the 95th calendar year after the date the copyright was originally 24 TABLE OF CONTENTS secured in the United States.
In the United States and countries that look to the United States 23 TABLE OF CONTENTS copyright term when shorter than their own, the copyright term for early works and the specific early versions of characters depicted in those works expires at the end of the 95th calendar year after the date the copyright was originally secured in the United States.
These differences can affect our ability to react to changes in our business, and our rights or ability to enforce rights are sometimes different than would be expected under U.S. law.
These differences can affect our ability to react to changes in our businesses, and our rights or ability to enforce rights are sometimes different than would be expected under U.S. law.
For example, new domestic and international laws and regulations relating to environmental, social and governance matters, including environmental sustainability, climate change, human rights and human capital management, have been adopted or are under consideration, some of which include specific, target-driven disclosure requirements or obligations.
Domestic and international laws and regulations relating to environmental, social and governance matters, including environmental sustainability, climate change, human rights and human capital management, have been adopted or are under consideration, some of which include specific, target-driven disclosure requirements or obligations.
Alternatively, if a court were to find the choice of forum provision contained in the Company’s amended and restated bylaws to be inapplicable or unenforceable in an action, the Company may incur additional costs associated with resolving such action in other jurisdictions.
Alternatively, if a court were to find the choice of forum provision contained in the Company’s amended and restated bylaws to be inapplicable or unenforceable in an action, the Company may incur additional costs associated with resolving such action in 26 TABLE OF CONTENTS other jurisdictions.
Each of our businesses, including our broadcast networks and television stations, is subject to a variety of U.S. and international regulations, which impact the operations and profitability of our businesses. Some of these regulations include: • U.S. FCC regulation of our television and radio networks, our national programming networks and our owned television stations.
Each of our businesses, including our broadcast networks and television stations, is subject to a variety of U.S. and international regulations, which impact the operations and profitability of our businesses. Some of these regulations include: • U.S. Federal Communications Commission (FCC) regulation of our television and radio networks, our national programming networks and our owned television stations.
Fluctuations in foreign currency exchange rates against the U.S. dollar impact our revenues and the profitability of our businesses, including by impacting the cost in U.S. dollars of providing our goods and services, our revenues in U.S. dollars generated by our international businesses and the international demand for our domestic products and services.
Fluctuations in foreign currency exchange rates against the U.S. dollar impact our results of operations, including by impacting the cost in U.S. dollars of providing our goods and services, our revenues in U.S. dollars generated by our international businesses and the international demand for our domestic products and services.
In general, domestic general entertainment linear networks advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months, 23 TABLE OF CONTENTS and sports advertising revenues are impacted by the timing of sports seasons and events, which varies throughout the year and/or take place periodically. • Revenues from content sales/licensing fluctuate due to the timing of content releases across various distribution markets.
In general, domestic general entertainment linear networks advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months, domestic advertising revenues are typically higher during election cycles and sports advertising revenues are impacted by the timing of sports seasons and events, which varies throughout the year and/or take place periodically. • Revenues from content sales/licensing fluctuate due to the timing of content releases across various distribution markets.
There can be 21 TABLE OF CONTENTS no assurance that revenues from programming based on these rights will exceed the cost of the rights plus the other costs of producing and distributing the programming. We face risks related to environmental, social and governance matters and any related reporting obligations.
There can be no assurance that revenues from programming based on these rights will exceed the cost of the rights plus the other costs of producing and distributing the programming. We face risks related to environmental, social and governance matters and related reporting obligations.
New technologies affect the demand for our products, the manner in which our products are distributed to consumers, the ways we charge for and receive revenue for our entertainment products and the stability of those revenue streams, the sources and nature of competing content offerings, the time and manner in which consumers acquire and view some of our entertainment products and the options available to advertisers for reaching their desired audiences.
New technologies affect the demand for our products and services, the manner in which our entertainment offerings are distributed to consumers, the ways we charge for and receive revenue for our entertainment products and services and the stability of those revenue streams, the sources and nature of competing entertainment offerings, the time and manner in which consumers acquire and view some of our entertainment offerings and the options available to 17 TABLE OF CONTENTS advertisers for reaching their desired audiences.
Our response has increased our compliance costs, including from increased investment in technology and appropriate expertise and required the implementation of new reporting processes, entailing additional compliance risk. In addition, we have undertaken or announced a number of related actions and goals, which will require changes to operations and ongoing investment.
Responding to these laws and regulations has increased our compliance costs, including from increased investment in technology and appropriate expertise and has required the implementation of new reporting processes, entailing additional compliance risk. In addition, we have undertaken or announced a number of related actions and goals, which will require changes to operations and ongoing investment.
Rules governing new technological developments, such as developments in artificial intelligence (AI), including generative AI and large language model tools, remain unsettled, and these developments may affect aspects of our existing business model, including revenue streams for the use of our IP, how we create our entertainment products and the competition we face.
Regulations governing new technological developments, such as developments in artificial intelligence (AI), including generative AI and large language model tools, remain unsettled, and these developments may affect aspects of our existing business models, including revenue streams for the use of our IP, how we create our entertainment offerings and the competition we face.
Further, our profitability is substantially affected by labor costs, including wages and our health, welfare and retirement benefits, including the costs of medical benefits for current employees and the costs of postretirement medical benefits for some current employees and retirees. We may experience significant increases in these costs as a result of macroeconomic, regulatory, competitive and other factors.
Further, our results of operations are substantially affected by labor costs, including wages and our health, welfare and retirement benefits, including the costs of medical benefits for current employees and the costs of postretirement medical benefits for some current employees and retirees. We may experience significant increases in these costs as a result of macroeconomic, regulatory, competitive and other factors.
Even if inflationary pressures moderate, we expect certain costs, such as for labor, to remain elevated.
Even when inflationary pressures moderate, we expect certain costs, such as for labor, to remain elevated.
The ultimate success of these investments is uncertain, some of these and future investments may ultimately result in returns that are negative or lower than anticipated, and these investments may impact the resources available to, and the profitability of, our other businesses.
The ultimate success of these investments is uncertain, some of these and future investments may ultimately result in returns that are negative or lower than anticipated, and these investments may negatively impact the resources available to our other businesses and ultimately, our results of operations.
These events and others, such as fluctuations in travel and energy costs, supply chain disruptions and malware and other cyber-related attacks or intrusions or other widespread computing, telecommunications or payment processing failures, from time to time have disrupted, and may in the future disrupt, our ability to provide our products and services or in certain instances may affect our ability to obtain insurance coverage with respect to some of these events.
These events and others, such as fluctuations in travel and energy costs, supply chain disruptions and malware and other cyber-related attacks or intrusions or other widespread computing, telecommunications or payment processing failures, from time to time disrupt our ability to provide our products and services, raise the cost of providing our products and services and in certain instances affect our ability to obtain insurance coverage with respect to some of these events.
The current or continued strength in the value of the U.S. dollar adversely impacts the U.S. dollar value of revenue we receive and expect to receive from other markets and contributes to reduced international demand for our domestic products and services, including international travel to our domestic parks and resorts.
An increase or sustained strength in the value of the U.S. dollar adversely impacts the U.S. dollar value of revenue we receive and expect to receive from other markets and contributes to reduced international demand for our domestic products and services, including international travel to our domestic parks and resorts.
Even if these contracts are renewed, the cost of obtaining certain programming rights has increased and may continue to increase (or increase at faster rates than our historical experience) and programming distributors, facing pressures resulting from increased subscription fees and alternative distribution channels, demand terms (including with respect to the pricing for, and the nature and amount of, programming distributed) that reduce our revenue from distribution of programs or increase revenue at slower rates than our historical experience.
Even if these contracts are renewed, the cost of obtaining certain programming rights has increased and may continue to increase (or increase at faster rates than our historical experience) and programming distributors demand terms (including with respect to the pricing for, and the nature and amount of, programming distributed) that reduce our revenue from distribution of programs or increase revenue at slower rates than our historical experience.
Even if our strategies are effective in the long term, our new offerings will generally not be profitable in the short term, results of our new offerings are unlikely to be even quarter over quarter and we may not expand into new markets as or when anticipated.
Even if our strategies are effective in the long term, our new offerings generally negatively impact results of operations in the short term, results of our new offerings are unlikely to be even quarter over quarter and we may not expand into new markets as or when anticipated.
The success of our businesses depends on our ability to consistently produce compelling creative content, which may be distributed, among other ways, through DTC platforms, broadcast, cable, theaters and used in theme park attractions, hotels and other resort facilities and travel experiences and consumer products.
The success of our businesses depends on our ability to consistently produce compelling creative content, which may be distributed, among other ways, through DTC services, linear networks and theaters and used in theme park attractions, hotels and other resort facilities and travel experiences and consumer products.
Accordingly, we may not achieve our forecasted outcomes. 20 TABLE OF CONTENTS Increased competitive pressures impact our revenues, increase our costs and impact the profitability of our businesses. We face substantial competition in each of our businesses from alternative providers of the products and services we offer and from other forms of entertainment, lodging, tourism and recreational activities.
Accordingly, we may not achieve our forecasted outcomes. Increased competitive pressures impact our revenues, increase our costs and impact our results of operations. We face substantial competition in each of our businesses from alternative providers of the products and services we offer and from other forms of entertainment, lodging, tourism and recreational activities.
The highly competitive environment in which we operate puts pricing pressure on our DTC offerings and may require us to lower our prices or not take price increases to attract or retain customers or lead to higher churn rates. These and other risks may impact the profitability and success of our DTC streaming services.
The highly competitive environment in which we operate puts pricing pressure on our DTC offerings and may require us to lower our prices or not increase our prices to attract or retain customers or lead to higher churn rates. These and other risks may impact the success of our DTC streaming services and our results of operations.
Changes in technology, in consumer consumption patterns and in how entertainment products are created affect demand for our entertainment products, the revenue we can generate from these products and the cost of producing or distributing these products.
Changes in technology, in consumer consumption patterns and in how entertainment products and services are created affect demand for, the revenue we can generate from and the cost of producing or distributing our entertainment offerings and our results of operations.
A decrease in the value of the U.S. dollar often increases the cost of labor, goods and services in, or originating from, non-U.S. markets.
A decrease or sustained weakness in the value of the U.S. dollar often increases the cost of labor, goods and services in, or originating from, as applicable, non-U.S. markets.
A wide variety of factors could influence the success of those third parties and if negative factors significantly impacted a sufficient number of those third parties or materially impacted a supplier of a significant product or service, the profitability of one or more of our businesses could be adversely affected.
A wide variety of factors could influence the success of those third parties and if negative factors significantly impacted a sufficient number of those third parties or materially impacted a supplier of a significant product or service, our results of operations could be adversely affected.
Despite our efforts, the risk of a potentially material incident as a result of unauthorized access, modification, exfiltration, destruction or denial of access with respect to data or systems and other cybersecurity attacks cannot be eliminated, and from time to time our systems have been compromised and may in the future be compromised.
Despite our efforts, the risk of a potentially material incident as a result of unauthorized access, modification, exfiltration, destruction or denial of access with respect to data or systems and other cybersecurity attacks cannot be eliminated, and from time to time our systems and third-party systems have been compromised in this manner, and are subject to the risk of future compromise.
The adverse impact on our businesses of actual or perceived declines in economic conditions or a failure of conditions to improve as anticipated will depend, in part, on their severity and duration and our ability to mitigate these impacts on our businesses is limited. Fluctuations in foreign currency exchange rates impact our revenues and the profitability of our businesses.
The adverse impact on our businesses of actual or perceived declines in economic conditions or a failure of conditions to improve as anticipated depends, in part, on their severity and duration, and our ability to mitigate these impacts on our businesses is limited. Fluctuations in foreign currency exchange rates impact our results of operations, including our revenues and costs.
The legal landscape for some new technologies, including some AI tools, remains uncertain, and development of the law in this area could impact our ability to protect against infringing uses.
The legal landscape for some new technologies, including some AI tools, remains uncertain, and development of the law or other regulatory frameworks in this area could impact our ability to protect against unauthorized uses.
A decline in economic conditions or a failure of conditions to improve as anticipated could impact implementation or success of our business plans, such as our plans to increase investment in our Experiences segment, the realignment of our cost structure and plans for our DTC ad-supported services, enhancements, pricing structure and price increases.
A decline in economic conditions or a failure of conditions to improve as anticipated could impact implementation or success of our business plans, such as our investment plans for our Experiences segment, plans for our DTC ad-supported services, enhancements, product offerings, pricing structure and price increases and plans for strategic investments.
An incident or other event that affected our property directly, including a security incident, earthquake or hurricane, would have a direct impact on our ability to provide goods and services and could result in closure of impacted operations or have an extended effect of discouraging consumers from attending our facilities.
An incident or other event that affected our property directly, including a security incident, earthquake or hurricane, would have a direct impact on our ability to provide products and services and could result in closure of impacted operations or have an extended effect of discouraging consumers from attending our facilities. Moreover, we incur costs to protect against such incidents.
For example, notwithstanding our continuing efforts to rationalize costs, the cost of executing on our DTC strategy may continue to grow or be reduced more slowly than anticipated, which may impact our distribution strategy across businesses/distribution platforms, the types of content we distribute through various businesses/distribution platforms, the timing and sequencing of content windows and ultimately, the profitability of our DTC products and other businesses/distribution platforms.
For example, the cost of executing on our DTC strategy may continue to grow or be reduced more slowly than anticipated, which may impact our distribution strategy across businesses/distribution platforms, the types of content we distribute through various businesses/distribution platforms, the timing and sequencing of content windows and ultimately, the financial results of our DTC services and other businesses/distribution platforms.
Government regulation, including revised foreign content and ownership regulations as well as government-imposed content restrictions, impacts the implementation of our DTC business plans.
Government regulations, including revised foreign content and ownership regulations as well as government-imposed content restrictions, impact the implementation of our DTC business plans and increase our costs.
This includes, among other types, competition for human resources, content and other resources we require in operating our business.
This includes, among other types, competition for personnel, content and other resources we require in operating our businesses.
Our operations are impacted by our ability to attract and retain employees and costs of employee wages and health, welfare and retirement benefits, including postretirement medical benefits for some employees and retirees, may reduce our profitability.
Our operations are impacted by our ability to attract and retain employees and costs of employee wages and health, welfare and retirement benefits, including postretirement medical benefits for some employees and retirees, may negatively impact our results of operations and financial condition.
Further, preferences of some consumers are affected by their perceptions of our position on matters of public interest, including regarding environmental and social issues.
Further, preferences of some consumers are affected by their perceptions of our position on matters of public interest, including regarding environmental and social issues, and such perceptions sometimes lead to consumer boycotts.
Potential credit ratings actions, increases in interest rates, or volatility in the U.S. and global financial markets could impede access to, or increase the cost of, financing our operations and investments.
Potential credit ratings actions, increases in interest rates, volatility in the U.S. and global financial markets or periods of elevated indebtedness could impede access to, or increase the cost of, financing our operations and investments and have the effect of decreasing of business flexibility.
Further, economic or political conditions in certain countries outside the U.S. also have reduced, and could continue to reduce, our ability to hedge exposure to currency fluctuations in those countries or our ability to repatriate revenue from those countries.
Further, economic or political conditions in certain countries outside the U.S. also limit, our ability to hedge exposure to currency fluctuations in those countries or our ability to repatriate revenue from those countries.
A variety of uncontrollable events disrupt our businesses, reduce demand for or consumption of our products and services, impair our ability to provide our products and services or increase the cost or reduce the profitability of providing our products and services.
A variety of uncontrollable events disrupt our businesses, reduce demand for or consumption of our products and services, impair our ability to provide our products and services or increase the cost of providing our products and services, adversely impacting our results of operations and financial condition.
In order to respond to the impact of new technologies on our businesses, we regularly consider, and from time to time implement new initiatives and changes to our business models, including by developing, investing in and acquiring DTC products, reorganizing our media and entertainment businesses to advance our DTC strategies and developing new media offerings.
In order to respond to the impact of new technologies on our businesses, we regularly consider, and from time to time implement, new initiatives and changes to our business models, including by developing and investing in DTC streaming services and content offerings and new media offerings.
We face risks related to changes in our business strategy, which have affected and may continue to affect our cost structure, the profitability of our businesses and/or the value of our assets.
We face risks related to changes in our business strategies and plans, which have affected and may continue to affect our cost structure, the value of our assets and/or our results of operations.
In addition, we derive affiliate fees and royalties from the distribution of our programming, sales of our licensed goods and services by third parties, and the management of businesses operated under brands licensed from the Company, and we are therefore dependent on the successes of those third parties for that portion of our revenue.
In addition, we derive affiliate fees and royalties from the distribution of our programming, sales of our licensed products and services by third parties, and the management of businesses operated under brands licensed from the Company and advertising revenues from the purchase of advertising on our various platforms, including DTC services and linear networks, and we are therefore dependent on the successes of those third parties for that portion of our revenue.
Competition for the acquisition of resources can further increase the cost of producing our products and services; change the composition of our offerings, including sports; deprive us of talent needed for our entertainment and experiences businesses, including the talent necessary to produce high quality creative material; increase employee turnover and staffing instability; or increase our labor costs.
Competition for the acquisition of resources sometimes further increases the cost of producing our products and services; changes the composition of our offerings, including sports; deprives us of talent needed for our entertainment and experiences businesses, which talent is necessary to produce high quality creative material; increases employee turnover and staffing instability; and increases our labor costs.
For example, labor costs in our parks and resorts have increased, and we expect will continue to increase, as a result of collective bargaining agreements and wage laws and regulations where we operate.
For example, labor costs in our parks and resorts have increased, and we expect will continue to increase, as a result of collective bargaining agreements and wage laws and regulations where we operate. Further, the cost of providing medical insurance and other medical benefits for our employees have increased, and we expect will continue to increase.
Declines in economic conditions, such as recessions, other less severe slowdowns in economic activity and/or inflationary conditions in the U.S. and other regions of the world in which we do business typically adversely affect demand for our products and services and/or costs to operate our businesses, reducing our revenue and earnings.
Declines in U.S., global and regional economic conditions, such as recessions, other less severe slowdowns in economic activity and/or inflationary conditions typically adversely affect demand for our products and services and/or costs to operate our businesses, reducing our revenue and earnings.
There can be no assurance that we will succeed in attracting and retaining the human resources necessary for the success of our businesses or in limiting cost increases from wages and other employee benefits, which could reduce the profitability of our businesses.
There can be no assurance that we will succeed in attracting and retaining the human resources necessary for the success of our businesses or in limiting cost increases from wages and other employee benefits, negatively impacting our results of operations and financial condition.
The operation of our businesses and the environment for travel and tourism, as well as demand for and consumption of our other entertainment products, is subject to significant adverse impact in the U.S., globally or in specific regions as a result of a variety of factors beyond our control, including: health concerns; adverse weather conditions arising from short-term weather patterns or long-term climate change, including longer and more regular excessive heat conditions, catastrophic events or natural disasters (such as excessive heat or rain, hurricanes, typhoons, floods, droughts, tsunamis and earthquakes); international, political or military developments, including trade and other international disputes and social unrest; macroeconomic conditions, including a decline in economic activity, inflation and foreign exchange rates; and terrorist attacks.
The operation of our businesses, the environment for travel and tourism, the demand for and consumption of our other products and services and ultimately our results of operations and financial condition are subject to adverse impacts from a variety of factors beyond our control in the U.S., globally or in specific geographic regions around the world where we operate, including: health concerns; adverse weather conditions arising from short-term weather patterns or long-term climate change, including longer and more regular excessive heat conditions, catastrophic events or natural disasters (such as excessive heat or rain, hurricanes, wildfires, typhoons, floods, droughts, tsunamis and earthquakes); international, political or military developments, including tariffs and other trade and international disputes and social unrest; legal and 18 TABLE OF CONTENTS regulatory developments; macroeconomic conditions, including a decline in economic activity, inflation and foreign exchange rates; and terrorist attacks.
We face risks related to the renewal of long-term programming or distribution contracts on sufficiently favorable terms. We enter into long-term contracts for both the acquisition and the distribution of media programming and products, including contracts for the acquisition of programming rights for sporting events and other programs, and contracts for the distribution of our programming to content distributors.
We enter into long-term contracts for both the acquisition and the distribution of media programming and products, including contracts for the acquisition of programming rights for sporting events and other programs, and contracts for the distribution of our programming to content distributors.
As of September 28, 2024, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively; S&P Global Ratings’ long- and short-term debt ratings for the Company were A- and A-2 (Positive), respectively; and Fitch Ratings’ long- and short-term debt ratings for the Company were A- and F2 (Stable), respectively.
As of September 27, 2025, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively; and S&P Global Ratings’ long- and short-term debt ratings for the Company were A and A-1 (Stable), respectively.
Inadequate laws or weak enforcement mechanisms to protect entertainment industry IP in one country can adversely affect the results of the Company’s operations worldwide, despite the Company’s efforts to protect its IP rights. Distribution innovations have increased opportunities to access content in unauthorized ways. Additionally, negative economic conditions coupled with a shift in government priorities could lead to less enforcement.
Inadequate laws or weak enforcement mechanisms to protect entertainment industry IP in one country can adversely affect the results of the Company’s operations worldwide, despite the Company’s efforts to protect its IP rights. Distribution innovations have increased opportunities to access content in unauthorized ways.
Generally, revenues from, and profitability of, each of our businesses are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not align with constantly evolving consumer preferences and tastes or achieve sufficient consumer acceptance.
Generally, our results of operations and financial condition are adversely impacted when our entertainment offerings and products and services, as well as our methods to make our offerings and products and services available to consumers, do not align with constantly evolving and often conflicting consumer preferences and tastes or achieve sufficient consumer acceptance.
There can be no assurance that our DTC offerings, new media offerings and other efforts will successfully respond to technological changes. In addition, declines in certain traditional forms of distribution impacts the cost of content allocable to our DTC offerings, negatively impacting the profitability of our DTC offerings.
There can be no assurance that our DTC offerings, new media offerings and other efforts will successfully respond to technological changes. In addition, declines in certain traditional forms of distribution impact the cost of content allocable to our DTC offerings. As part of our DTC strategy, we forgo revenue from certain traditional sources.
As a general matter, resolution of labor disputes and negotiation of new collective bargaining agreements, including as a result of rate increases and other changes to employee benefits, has in the past increased our costs and may increase our costs in the future.
As a general matter, resolution of labor disputes and negotiation of new collective bargaining agreements, including as a result of rate increases and other changes to employee benefits, has in the past increased our costs and may increase our costs in the future. 22 TABLE OF CONTENTS The seasonality of certain of our businesses and timing of certain of our product offerings could exacerbate negative impacts on our operations.
These developments require us to devote substantial resources to protecting our IP against unlicensed use and present the risk of increased losses of revenue as a result of unlicensed distribution of our content and other commercial misuses of our IP.
Additionally, negative economic conditions or a shift in government priorities or policies could lead to less enforcement. These developments require us to devote substantial resources to protecting our IP against unlicensed use and present the risk of increased losses of revenue as a result of unlicensed distribution of our content and other commercial misuses of our IP.
Further, volatility in the price of our common stock may negatively impact one or more of our businesses, including by increasing stock awards for our employees who participate in our stock incentive programs or limiting our financing options for acquisitions and other business expansion. 26 TABLE OF CONTENTS GENERAL RISKS The Company’s amended and restated bylaws provide to the fullest extent permitted by law that the Court of Chancery of the State of Delaware will be the exclusive forum for certain legal actions between the Company and its stockholders, which could increase costs to bring a claim, discourage claims or limit the ability of the Company’s stockholders to bring a claim in a judicial forum viewed by the stockholders as more favorable for disputes with the Company or the Company’s directors, officers or other employees.
GENERAL RISKS The Company’s amended and restated bylaws provide to the fullest extent permitted by law that the Court of Chancery of the State of Delaware will be the exclusive forum for certain legal actions between the Company and its stockholders, which could increase costs to bring a claim, discourage claims or limit the ability of the Company’s stockholders to bring a claim in a judicial forum viewed by the stockholders as more favorable for disputes with the Company or the Company’s directors, officers or other employees.
As copyrights expire, we expect that revenues generated from such IP will be negatively impacted to some extent. The unauthorized use of our IP may increase the cost of protecting rights in our IP or reduce our revenues.
As copyrights expire, we expect that revenues generated from such IP will be negatively impacted to some extent. The unauthorized use of our IP typically increases our costs, including in connection with our efforts to protect rights in our IP, and may reduce our revenues.
In addition, ongoing and future developments in international political, trade and security policy may lead to new regulations limiting international trade and investment and disrupting our operations outside the U.S., including our international theme parks and resorts operations in France, mainland China and Hong Kong.
In addition, ongoing and future developments in international political, trade and security policy may lead to new regulations that increase the cost of providing our products and services, negatively impact demand for our products and services and limit international trade and investment, 25 TABLE OF CONTENTS disrupting our operations in and outside the U.S., including our international theme parks and resorts operations in France, mainland China and Hong Kong.
New laws and regulations, as well as changes in any of these current laws and regulations or regulator activities (or, if applicable, private litigation to enforce such laws and regulations) in any of these areas, or others, may require us to incur additional compliance costs, may restrict our ability to execute on our business strategies as planned or offer products and services in ways that are profitable, and create an increasingly unpredictable regulatory landscape.
Laws and regulations in any of these and other areas and changes in judicial and agency interpretation or regulatory priorities, actions or initiatives (or, if applicable, private litigation to enforce such laws and regulations), as well as an increasingly unpredictable regulatory landscape, require us to incur additional costs and may limit our ability to implement our business strategies as planned or offer products and services in ways that are profitable, or at all.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeRegular assessments, such as penetration tests, security audits and table-top exercises, are conducted to identify vulnerabilities and promote incident response and risk mitigation. We also provide privacy and information security trainings for our employees on a recurring basis.
Biggest changeTo address emerging threats, we employ automated monitoring, vulnerability scans and patch management processes, network monitoring and defenses, antivirus/antimalware protections and network segmentations. Regular assessments, such as penetration tests, security audits and table-top exercises, are conducted to identify vulnerabilities and promote incident response and risk mitigation.
ITEM 1C. Cybersecurity Risk Management and Strategy We have implemented processes for assessing, identifying and managing material risks from cybersecurity threats as part of our overall risk management program. Our cybersecurity program is informed by the National Institute of Standards and Technology Cybersecurity Framework as well as other globally recognized standards.
ITEM 1C. Cybersecurity Risk Management and Strategy We have implemented processes for assessing, identifying and managing material risks from cybersecurity threats as part of our overall risk management program. Our cybersecurity program is informed by the National Institute of Standards and Technology Cybersecurity Framework and other applicable globally recognized standards.
In certain instances, events are escalated to the Cybersecurity Incident Disclosure Subcommittee, which is a subcommittee of the Company’s Risk Management Committee (RMC) (discussed further below) and is responsible for, among other things, the accurate and timely disclosure of 27 TABLE OF CONTENTS material cybersecurity incidents under the federal securities laws, including making the materiality determination and approving related securities disclosures.
In certain instances, events are escalated to the Cybersecurity Incident Disclosure Subcommittee, which is a subcommittee of the Company’s Risk Management Committee (RMC) (discussed further below) and is responsible for, among other things, the accurate and timely disclosure of material cybersecurity incidents under the federal securities laws, including making the materiality determination and approving related securities disclosures.
The IRP delegates to an internal incident response team the initial assessment, investigation and remediation of the event and includes, among other procedures, guidelines for escalation to senior management and engagement with law enforcement.
The CIRP delegates to an internal incident response team the initial assessment, investigation and remediation of the event and includes, among other procedures, guidelines for escalation to senior management and engagement with law enforcement.
In fiscal 2024, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
In fiscal 2025, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
The Chair of the Audit Committee reports on its discussion, including concerning cybersecurity matters, to the full Board. In addition, from time to time, senior management briefs the Audit Committee, the Audit Committee Chair and the Board on cybersecurity matters potentially of interest, including cybersecurity events, regulatory disclosures and regulatory trends.
The Chair of the Audit Committee reports on its discussion, including concerning cybersecurity matters, to the full Board. In 27 TABLE OF CONTENTS addition, from time to time, senior management briefs the Audit Committee, the Audit Committee Chair and the Board on cybersecurity matters potentially of interest, including cybersecurity events, regulatory disclosures and regulatory trends.
Further, as part of our cybersecurity risk management processes, we maintain an incident response plan (IRP) that establishes a set of procedures for reporting and handling cybersecurity events.
Further, as part of our cybersecurity risk management processes, we maintain a cybersecurity incident response plan (CIRP) that establishes a set of procedures for reporting and handling cybersecurity events.
Day-to-day management of our information security strategy and operations is currently the responsibility of our CISO, who reports into our Chief Financial Officer.
Day-to-day management of our information security strategy and operations is currently the responsibility of our CISO, who reports to our Chief Information and Data Officer and our Chief Security Officer, both of whom report to our Chief Financial Officer.
We use a layered defense model, incorporating a wide range of technologies and practices in an effort to prevent, detect and mitigate threats. These measures include intrusion detection and prevention systems, multi-factor authentication, encryption and endpoint protection tools. We also implement threat detection and response solutions. To address emerging threats, we employ automated monitoring, vulnerability scans and patch management processes.
We use a layered defense model, incorporating a wide range of technologies and practices in an effort to prevent, detect and mitigate threats. These measures include intrusion detection and prevention systems, multi-factor authentication, account management and access controls, encryption and endpoint protection tools. We also implement threat detection and response solutions.
From time to time, we engage assessors, consultants and other third parties to assist with assessing, identifying and managing cybersecurity risks, including assisting us to conduct some of the foregoing assessments.
We also provide privacy and information security trainings for our employees on a recurring basis. From time to time, we engage auditors, assessors, consultants and other third parties to assist with assessing, identifying and managing cybersecurity risks, including assisting us to conduct some of the foregoing assessments.
Our cybersecurity risk management processes also are informed by intelligence received from recognized cybersecurity industry experts and other third-party sources, and as appropriate we engage outside counsel to advise on regulatory compliance and other cybersecurity risk management efforts. In addition, we have processes designed to oversee and identify cybersecurity risks associated with our use of third-party service providers.
Our cybersecurity risk management processes also are informed by intelligence received from law enforcement and other governmental agencies, private sector intelligence networks, recognized cybersecurity and intelligence firms and other third-party sources, and as appropriate we engage outside counsel to advise on regulatory compliance and other cybersecurity risk management efforts.
That experience is supplemented by the collective experience and expertise of our dedicated internal teams of cybersecurity personnel.
Our CISO has approximately 15 years of experience working in information security positions, including having served as CISO for publicly traded companies. That experience is supplemented by the collective experience and expertise of our dedicated internal teams of cybersecurity personnel.
Removed
Prior to joining the Company, our CISO held senior leadership roles in various other organizations, including as CISO for a publicly traded, global retailer and as a consultant advising organizations on information security strategy, and as a Special Agent with the U.S. Secret Service focusing on electronic crimes.
Added
In addition, we have processes designed to oversee and identify cybersecurity risks associated with our use of third-party service providers.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. Properties Our parks and resorts locations and other properties of the Company and its subsidiaries are described in Item 1 under the caption Experiences .
Biggest changeITEM 2. Properties Our parks and resorts locations and other properties of the Company and its subsidiaries are described in Item 1 under the caption Experiences . Film and television library properties and television stations owned by the Company are described in Item 1 under the caption Entertainment .
Location Property / Approximate Size Use Business Segment Burbank, CA & surrounding cities (1) Land (201 acres) & Buildings (4,733,000 ft 2 ) Owned Office/Production/Warehouse (includes 240,000 ft 2 leased to third-party tenants) Corporate/Entertainment/Experiences Burbank, CA & surrounding cities (1) Buildings (1,760,000 ft 2 ) Leased Office/Warehouse Corporate/Entertainment/Experiences Los Angeles, CA Land (22 acres) & Buildings (599,000 ft 2 ) Owned Office/Production/Technical Warehouse Corporate/Entertainment Los Angeles, CA Buildings (2,434,000 ft 2 ) Leased Office/Production/Technical/Theater Corporate/Entertainment/Experiences New York, NY Buildings (1,104,000 ft 2 ) Owned Office Corporate/Entertainment/Sports New York, NY Buildings (2,202,000 ft 2 ) Leased Office/Production/Theater/Warehouse (includes 696,000 ft 2 leased to third-party tenants) Corporate/Entertainment/Experiences/Sports Bristol, CT Land (117 acres) & Buildings (1,078,000 ft 2 ) Owned Office/Production/Technical Sports Bristol, CT Buildings (273,000 ft 2 ) Leased Office/Warehouse/Technical Sports Emeryville, CA Land (20 acres) & Buildings (430,000 ft 2 ) Owned Office/Production/Technical Entertainment Emeryville, CA Buildings (94,000 ft 2 ) Leased Office/Storage Entertainment San Francisco, CA Buildings (536,000 ft 2 ) Leased Office/Production/Technical/Theater (includes 47,000 ft 2 leased to third-party tenants) Corporate/Entertainment USA & Canada Land and Buildings (Multiple sites and sizes) Owned and Leased Office/ Production/Transmitter/Theaters/Warehouse Corporate/Entertainment/Experiences Europe, Asia, Australia & Latin America Buildings (Multiple sites and sizes) Leased Office/Warehouse/Retail/Residential Entertainment/Experiences (1) Surrounding cities include Glendale, CA, North Hollywood, CA and Sun Valley, CA
Location Property / Approximate Size Use Business Segment Burbank, CA & surrounding cities (1) Land (182 acres) & Buildings (4,733,000 ft 2 ) Owned Office/Production/Warehouse (includes 240,000 ft 2 leased to third-party tenants) Corporate/Entertainment/Experiences Burbank, CA & surrounding cities (1) Buildings (1,729,000 ft 2 ) Leased Office/Warehouse Corporate/Entertainment/Experiences Los Angeles, CA Land (22 acres) & Buildings (634,000 ft 2 ) Owned Office/Production/Technical Warehouse Corporate/Entertainment Los Angeles, CA Buildings (1,787,000 ft 2 ) Leased Office/Production/Technical/Theater Corporate/Entertainment/Experiences New York, NY Buildings (1,052,000 ft 2 ) Owned Office Corporate/Entertainment/Sports New York, NY Buildings (1,083,000 ft 2 ) Leased Office/Production/Theater/Warehouse (includes 676,000 ft 2 leased to third-party tenants) Corporate/Entertainment/Experiences/Sports Bristol, CT Land (117 acres) & Buildings (1,078,000 ft 2 ) Owned Office/Production/Technical Sports Bristol, CT Buildings (273,000 ft 2 ) Leased Office/Warehouse/Technical Sports Emeryville, CA Land (20 acres) & Buildings (430,000 ft 2 ) Owned Office/Production/Technical Entertainment Emeryville, CA Buildings (94,000 ft 2 ) Leased Office/Storage Entertainment San Francisco, CA Buildings (539,000 ft 2 ) Leased Office/Production/Technical/Theater (includes 44,000 ft 2 leased to third-party tenants) Corporate/Entertainment USA & Canada Land and Buildings (Multiple sites and sizes) Owned and Leased Office/ Production/Transmitter/Theaters/Warehouse Corporate/Entertainment/Experiences Europe, Asia, Australia & Latin America Buildings (Multiple sites and sizes) Leased Office/Warehouse/Retail/Residential Entertainment/Experiences (1) Surrounding cities include Glendale, CA, North Hollywood, CA and Sun Valley, CA 28 TABLE OF CONTENTS
In addition to the properties noted above, the table below provides a brief description of other significant properties and the related business segment.
The Company and its subsidiaries own and lease properties throughout the world. In addition to the properties noted above, the table below provides a brief description of other significant properties and the related business segment.
Removed
Film and television library properties and television stations owned by the Company are described in Item 1 under the caption Entertainment . 28 TABLE OF CONTENTS The Company and its subsidiaries own and lease properties throughout the world.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeColeman served as Senior Vice President, Human Resources for Disney General Entertainment from April 2017, Vice President, Human Resources for the Company from May 2016 and Vice President, Human Resources, Disney Consumer Products from May 2010. (5) Ms. Schake was appointed Senior Executive Vice President and Chief Communications Officer effective June 29, 2022.
Biggest changeShe was previously Senior Vice President, Human Resources at Disney General Entertainment and ESPN from August 2021. Ms. Coleman served as Senior Vice President, Human Resources for Disney General Entertainment from April 2017, 29 TABLE OF CONTENTS Vice President, Human Resources for the Company from May 2016 and Vice President, Human Resources, Disney Consumer Products from May 2010. (5) Ms.
Each of the executive officers has been employed by the Company in the position or positions indicated in the list and pertinent notes below. 29 TABLE OF CONTENTS The executive officers of the Company are: Name Age Title Executive Officer Since Robert A. Iger 73 Chief Executive Officer (1) 2022 Hugh F.
Each of the executive officers has been employed by the Company in the position or positions indicated in the list and pertinent notes below. The executive officers of the Company are: Name Age Title Executive Officer Since Robert A. Iger 74 Chief Executive Officer (1) 2022 Hugh F.
Gutierrez was appointed Senior Executive Vice President and General Counsel effective February 1, 2022, appointed Senior Executive Vice President, General Counsel and Chief Compliance Officer effective March 27, 2023 and appointed Senior Executive Vice President, Chief Legal and Compliance Officer effective December 21, 2023.
Gutierrez was appointed Senior Executive Vice President and General Counsel effective February 1, 2022, appointed Senior Executive Vice President, General Counsel and Chief Compliance Officer effective March 27, 2023, appointed Senior Executive Vice President, Chief Legal and Compliance Officer effective December 21, 2023 and appointed Senior Executive Vice President, Chief Legal and Global Affairs Officer effective November 4, 2025.
He was previously Spotify’s General Counsel - Vice President, Business & Legal Affairs from April 2016 to November 2019. (4) Ms. Coleman was appointed Senior Executive Vice President and Chief Human Resources Officer effective April 8, 2023. She was previously Senior Vice President, Human Resources at Disney General Entertainment and ESPN from August 2021. Ms.
He was previously Spotify’s General Counsel - Vice President, Business & Legal Affairs from April 2016 to November 2019. (4) Ms. Coleman was appointed Senior Executive Vice President and Chief Human Resources Officer effective April 8, 2023 and appointed Senior Executive Vice President and Chief People Officer effective September 27, 2025.
Johnston 63 Senior Executive Vice President and Chief Financial Officer (2) 2023 Horacio E. Gutierrez 59 Senior Executive Vice President, Chief Legal and Compliance Officer (3) 2022 Sonia L. Coleman 52 Senior Executive Vice President and Chief Human Resources Officer (4) 2023 Kristina K. Schake 54 Senior Executive Vice President and Chief Communications Officer (5) 2022 (1) Mr.
Johnston 64 Senior Executive Vice President and Chief Financial Officer (2) 2023 Horacio E. Gutierrez 60 Senior Executive Vice President, Chief Legal and Global Affairs Officer (3) 2022 Sonia L. Coleman 53 Senior Executive Vice President and Chief People Officer (4) 2023 Kristina K. Schake 55 Senior Executive Vice President and Chief Communications Officer (5) 2022 (1) Mr.
Previously, she served as Executive Vice President, Global Communications from April 2022. Prior to joining the Company, she was appointed by the President of the United States as Counselor for Strategic Communications to the Secretary of the U.S. Department of Health and Human Services, leading a nationwide public education campaign from March 2021 to December 2021.
Schake was appointed Senior Executive Vice President and Chief Communications Officer effective June 29, 2022. Previously, she served as Executive Vice President, Global Communications from April 2022. Prior to joining the Company, she was appointed by the President of the United States as Counselor for Strategic Communications to the Secretary of the U.S.
Added
Department of Health and Human Services, leading a nationwide public education campaign from March 2021 to December 2021.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table provides information about Company purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act during the quarter ended September 28, 2024: Period Total Number of Shares Purchased Average Price Paid per Share (1) 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) June 30, 2024 – July 31, 2024 2,732,000 $ 94.70 2,732,000 374 million August 1, 2024 – August 31, 2024 1,536,500 89.18 1,536,500 372 million September 1, 2024 – September 28, 2024 742,500 91.23 742,500 372 million Total 5,011,000 92.49 5,011,000 372 million (1) Amounts exclude the one percent excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.
Biggest changeThe following table provides information about Company purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act during the quarter ended September 27, 2025: Period Total Number of Shares Purchased Average Price Paid per Share (1) 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) June 29, 2025 – July 31, 2025 1,654,000 $ 121.20 1,654,000 346 million August 1, 2025 – August 31, 2025 3,956,000 116.03 3,956,000 342 million September 1, 2025 – September 27, 2025 2,896,715 116.04 2,896,715 339 million Total 8,506,715 117.04 8,506,715 339 million (1) Amounts exclude the one percent excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.
ITEM 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is listed on the New York Stock Exchange under the ticker symbol “DIS”. See Note 11 of the Consolidated Financial Statements for a summary of the Company’s dividends in fiscal 2024.
ITEM 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is listed on the New York Stock Exchange under the ticker symbol “DIS”. See Note 11 of the Consolidated Financial Statements for a summary of the Company’s dividends in fiscal 2025.
As of September 28, 2024, the approximate number of common shareholders of record was 734,000.
As of September 27, 2025, the approximate number of common shareholders of record was 697,000.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

114 edited+32 added−48 removed55 unchanged
Biggest changeCertain Items Impacting Results in the Year Results for fiscal 2024 were impacted by the following: • Restructuring and impairment charges of $3,595 million • TFCF and Hulu acquisition amortization of $1,677 million • Other expense of $65 million related to a legal ruling • Income Tax Reserve Adjustments of $418 million Results for fiscal 2023 were impacted by the following: • Restructuring and impairment charges of $3,892 million • TFCF and Hulu acquisition amortization of $1,998 million • Other income, net of $96 million, primarily due to the DraftKings gain ($169 million), partially offset by a charge related to a legal ruling ($101 million) 34 TABLE OF CONTENTS A summary of the impact of these items on EPS is as follows: ($ in millions, except per share data) Pre-Tax Income (Loss) Tax Benefit (Expense) (1) After-Tax Income (Loss) EPS Favorable (Adverse) (2) Year Ended September 28, 2024: Restructuring and impairment charges $ (3,595) $ 293 $ (3,302) $ (1.78) TFCF and Hulu acquisition amortization (3) (1,677) 391 (1,286) (0.68) Other expense (65) 11 (54) (0.03) Income Tax Reserve Adjustments — 418 418 0.23 Total $ (5,337) $ 1,113 $ (4,224) $ (2.26) Year Ended September 30, 2023: Restructuring and impairment charges (4) $ (3,836) $ 717 $ (3,119) $ (1.69) TFCF and Hulu acquisition amortization (3) (1,998) 465 (1,533) (0.82) Other income, net 96 (13) 83 0.05 Total $ (5,738) $ 1,169 $ (4,569) $ (2.46) (1) Tax benefit (expense) is determined using the tax rate applicable to the individual item.
Biggest changeCertain Items Impacting Results in the Year Results for fiscal 2025 were impacted by the following: • Hulu Transaction Impacts consisting of a $3,277 million benefit in “Income taxes” and a $462 million charge in “Net income attributable to noncontrolling interests” • TFCF and Hulu acquisition amortization of $1,576 million • Favorable resolution of a prior-year tax matter of $1,016 million • Restructuring and impairment charges of $819 million ($748 million after tax) and a non-cash tax expense of $244 million related to the Star India Transaction 34 TABLE OF CONTENTS Results for fiscal 2024 were impacted by the following: • Restructuring and impairment charges of $3,595 million • TFCF and Hulu acquisition amortization of $1,677 million • Other expense of $65 million related to a legal ruling • Favorable adjustments related to prior year tax matters of $418 million A summary of the impact of these items on EPS is as follows: ($ in millions, except per share data) Pre-Tax Income (Loss) Tax Benefit (Expense) (1) After-Tax Income (Loss) EPS Favorable (Adverse) (2) Year Ended September 27, 2025: Hulu Transaction Impacts $ — $ 3,277 $ 3,277 $ 1.55 Resolution of a prior-year tax matter — 1,016 1,016 0.56 TFCF and Hulu acquisition amortization (3) (1,576) 366 (1,210) (0.64) Restructuring and impairment charges (819) (173) (992) (0.55) Total $ (2,395) $ 4,486 $ 2,091 $ 0.92 Year Ended September 28, 2024: Restructuring and impairment charges $ (3,595) $ 293 $ (3,302) $ (1.78) TFCF and Hulu acquisition amortization (3) (1,677) 391 (1,286) (0.68) Other expense (65) 11 (54) (0.03) Favorable adjustments related to prior-year tax matters — 418 418 0.23 Total $ (5,337) $ 1,113 $ (4,224) $ (2.26) (1) Tax benefit (expense) is determined using the tax rate applicable to the individual item.
Entertainment The Entertainment segment generates revenue from film, episodic and other content that is produced and distributed across three significant lines of business: • Linear Networks, which primarily generates revenue from affiliate fees and advertising • Direct-to-Consumer, which primarily generates revenue from subscription fees and advertising • Content Sales/Licensing, which primarily generates revenue from the sale of film and episodic content in the TV/VOD and home entertainment markets, distribution of films in the theatrical market, licensing of our music rights, sales of tickets to stage play performances and licensing of our IP for use in stage plays.
Entertainment The Entertainment segment generates revenue from film, episodic and other content that is produced and distributed across three lines of business: • Linear Networks, which primarily generates revenue from affiliate fees and advertising • Direct-to-Consumer, which primarily generates revenue from subscription fees and advertising • Content Sales/Licensing, which primarily generates revenue from the distribution of films in the theatrical market, sale of film and episodic content in the TV/VOD and home entertainment markets, licensing of our music rights, sales of tickets to stage play performances and licensing of our IP for use in stage plays.
Subscribers include those who receive an entitlement to a service through wholesale arrangements, including those for which the service is available to each subscriber of an existing content distribution tier. When we aggregate the total number of paid subscribers across our DTC streaming services, we refer to them as paid subscriptions.
Subscribers include those who receive an entitlement to a service through wholesale arrangements, including those for which the service is available to each subscriber of an existing content distribution tier. When we aggregate the total number of paid subscribers across our Entertainment DTC streaming services, we refer to them as paid subscriptions.
Experiences The Experiences segment primarily generates revenue from the sale of admissions to theme parks, the sale of food, beverage and merchandise at our theme parks and resorts, charges for room nights at hotels, sales of cruise vacations, sales and rentals of vacation club properties, royalties from licensing our IP for use on consumer goods and the sale of branded merchandise.
Experiences The Experiences segment primarily generates revenue from the sale of tickets for admissions to theme parks, the sale of food, beverage and merchandise at our theme parks and resorts, charges for room nights at hotels, sales of cruise vacations, sales and rentals of vacation club properties, royalties from licensing our IP for use on consumer goods and the sale of branded merchandise.
(2) The other activity is primarily due to the amortization of purchase accounting adjustments and debt issuance fees. (3) See Note 6 to the Consolidated Financial Statements for information regarding commitments to fund the Asia Theme Parks. (4) The other activity is due to market value adjustments for debt with qualifying hedges.
(2) The other activity is primarily due to the amortization of purchase accounting adjustments and debt issuance fees. (3) See Note 6 to the Consolidated Financial Statements for information regarding commitments to fund the Asia Theme Parks. (4) The other activity is attributable to market value adjustments for debt with qualifying hedges.
Capital expenditures at Experiences are principally for theme park and resort expansion, new attractions, cruise ships, capital improvements and systems infrastructure. The increase in capital expenditures in fiscal 2024 compared to fiscal 2023 was due to higher spending on cruise ship fleet expansion, theme park and resort expansion and new attractions.
Capital expenditures at Experiences are principally for theme park and resort expansion, new attractions, cruise ships, capital improvements and systems infrastructure. The increase in capital expenditures in fiscal 2025 compared to fiscal 2024 was due to higher spending on cruise ship fleet expansion, theme park and resort expansion and new attractions.
It is possible, however, that future results of operations for any particular quarterly or annual period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to legal proceedings or our assumptions regarding other contingent matters. See Note 14 to the Consolidated Financial Statements for more information on litigation exposure.
It is possible, however, that future results of operations for any particular quarterly or annual period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to legal proceedings or our 54 TABLE OF CONTENTS assumptions regarding other contingent matters. See Note 14 to the Consolidated Financial Statements for more information on litigation exposure.
The tax benefits ultimately realized by the Company may differ from those recognized in our future financial statements based on a number of factors, including the Company’s decision to 54 TABLE OF CONTENTS settle rather than litigate a matter, relevant legal precedent related to similar matters and the Company’s success in supporting its filing positions with taxing authorities.
The tax benefits ultimately realized by the Company may differ from those recognized in our future financial statements based on a number of factors, including the Company’s decision to settle rather than litigate a matter, relevant legal precedent related to similar matters and the Company’s success in supporting its filing positions with taxing authorities.
Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. 53 TABLE OF CONTENTS The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions and changes in projected future cash flows. The quantitative assessment compares the fair value of an indefinite-lived intangible asset to its carrying amount.
Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions and changes in projected future cash flows. The quantitative assessment compares the fair value of an indefinite-lived intangible asset to its carrying amount.
The Company may use cash balances, operating cash flows, 50 TABLE OF CONTENTS commercial paper borrowings up to the amount of its unused $12.25 billion bank facilities and incremental term debt issuances to retire or refinance other borrowings before or as they come due.
The Company may use cash balances, operating cash flows, commercial paper borrowings up to the amount of its unused $12.25 billion bank facilities and incremental term debt issuances to retire or refinance other borrowings before or as they come due.
If the annual contractual payments related to each season approximate each season’s estimated relative value, we expense the related contractual payments during the applicable season. If estimated relative values by year were to change significantly, amortization of our sports rights costs may be accelerated or slowed.
If the annual contractual payments related to each season approximate each season’s estimated 52 TABLE OF CONTENTS relative value, we expense the related contractual payments during the applicable season. If estimated relative values by year were to change significantly, amortization of our sports rights costs may be accelerated or slowed.
A one percentage point change in the long-term asset return assumption would impact fiscal 2025 annual expense by approximately $168 million. Goodwill, Other Intangible Assets, Long-Lived Assets and Investments The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis.
A one percentage point change in the long-term asset return assumption would impact fiscal 2026 annual expense by approximately $177 million. Goodwill, Other Intangible Assets, Long-Lived Assets and Investments The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis.
See Note 8 to the Consolidated Financial Statements for a summary of the Company’s borrowing activities in fiscal 2024 and information regarding the Company’s bank facilities.
See Note 8 to the Consolidated Financial Statements for a summary of the Company’s borrowing activities in fiscal 2025 and information regarding the Company’s bank facilities.
On November 26, 2019, $14.0 billion of the outstanding exchange notes were exchanged for new senior notes of TWDC registered under the Securities Act, issued pursuant to the TWDC Indenture and guaranteed by Legacy Disney.
On November 55 TABLE OF CONTENTS 26, 2019, $14.0 billion of the outstanding exchange notes were exchanged for new senior notes of TWDC registered under the Securities Act, issued pursuant to the TWDC Indenture and guaranteed by Legacy Disney.
The Company’s bank facilities contain only one financial covenant, relating to interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On September 28, 2024, the Company met this covenant by a significant margin.
The Company’s bank facilities contain only one financial covenant, relating to interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs. On September 27, 2025, the Company met this covenant by a significant margin.
As discussed in Note 4 to the Consolidated Financial Statements, the Company recorded $1.5 billion of non-cash impairment charges related to the Star India Transaction in fiscal 2024 to reflect Star India at its estimated fair value less costs to sell. The Company has investments in equity securities.
As discussed in Note 4 to the Consolidated Financial Statements, the Company recorded non-cash impairment charges of $0.1 billion and $1.5 billion related to the Star India Transaction in fiscal 2025 and 2024, respectively, to reflect Star India at its estimated fair value less costs to sell. The Company has investments in equity securities.
Capital expenditures at Corporate primarily reflect investments in facilities, information technology infrastructure and equipment. The decrease in fiscal 2024 compared to fiscal 2023 was due to lower spending on facilities. The Company currently expects its fiscal 2025 capital expenditures to total approximately $8 billion compared to fiscal 2024 capital expenditures of $5 billion.
Capital expenditures at Corporate primarily reflect investments in facilities, information technology infrastructure and equipment. The decrease in fiscal 2025 compared to fiscal 2024 was due to lower spending on facilities. The Company currently expects its fiscal 2026 capital expenditures to total approximately $9 billion compared to fiscal 2025 capital expenditures of $8 billion.
It includes the following sections: • Consolidated Results and Non-Segment Items • Business Segment Results • Corporate and Unallocated Shared Expenses • Liquidity and Capital Resources • Developments and Trends • Critical Accounting Policies and Estimates • DTC Product Descriptions, Key Definitions and Supplemental Information • Supplemental Guarantor Financial Information In Item 7, we discuss fiscal 2024 and 2023 results and comparisons of fiscal 2024 results to fiscal 2023 results.
It includes the following sections: • Consolidated Results and Non-Segment Items • Business Segment Results • Corporate and Unallocated Shared Expenses • Liquidity and Capital Resources • Trends and Uncertainties • Critical Accounting Policies and Estimates • Entertainment DTC Product Descriptions and Key Definitions • Supplemental Guarantor Financial Information In Item 7, we discuss fiscal 2025 and 2024 results and comparisons of fiscal 2025 results to fiscal 2024 results.
Discussions of fiscal 2022 results and comparisons of fiscal 2023 results to fiscal 2022 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023.
Discussions of fiscal 2023 results and comparisons of fiscal 2024 results to fiscal 2023 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024.
Revenue includes subscription fees, advertising (excluding revenue earned from selling advertising spots to other Company businesses), premium and feature add-on revenue and extra member add-on revenue but excludes Pay-Per-View revenue. Advertising revenue generated by content on one DTC streaming service that is accessed through another DTC streaming service by subscribers to both streaming services is allocated between both streaming services.
Revenue includes subscription fees, advertising (excluding revenue earned from selling advertising spots to other Company businesses), premium and feature add-on revenue and extra member add-on revenue. Advertising revenue generated by content on one DTC streaming service that is accessed through another DTC streaming service by subscribers to both streaming services is allocated between both streaming services.
Subscribers to multi-product offerings in the U.S. are counted as a paid subscriber for each of the Company's services included in the multi-product offering and subscribers to Hulu Live TV + SVOD are counted as one paid subscriber for each of the Hulu Live TV + SVOD, Disney+ and ESPN+ services.
Subscribers to bundled offerings in the U.S. are counted as a paid subscriber for each of the Company's services included in the bundled offering and subscribers to Hulu Live TV + SVOD are counted as one paid subscriber for each of the Hulu Live TV + SVOD and Disney+ services.
The Company tested its indefinite-lived intangible assets, long-lived assets and investments for impairment and recorded non-cash impairment charges of $0.7 billion and $2.3 billion in fiscal 2024 and 2023, respectively. The fiscal 2024 charges related to impairments of retail assets, content assets, and equity investments.
The Company tested its indefinite-lived intangible assets, long-lived assets and investments for impairment and recorded non-cash impairment charges of $0.8 billion and $0.7 billion in fiscal 2025 and 2024, respectively. The fiscal 2025 charges related to impairments of equity investments and content assets. The fiscal 2024 charges related to impairments of retail assets, content assets and equity investments.
Discount rates are determined based on the inherent risks of the underlying operations. Significant judgments and assumptions in the discounted cash flow model used to determine fair value relate to future revenues and certain operating expenses, operating margins, terminal growth rates and discount rates. We believe our estimates are consistent with how a marketplace participant would value our businesses.
Significant judgments and assumptions in the discounted cash flow model used to determine fair value relate to future revenues and certain operating expenses, operating margins, terminal growth rates and discount rates. We believe our estimates are consistent with how a marketplace participant would value our businesses.
Programming and production costs include the following: • Amortization of capitalized production costs and licensed programming rights • Subscriber-based fees for programming the Hulu Live service, including fees paid by Hulu to the Sports segment and other Entertainment segment businesses for the right to air their linear networks on Hulu Live • Production costs related to live programming (primarily news) • Participations and residual expenses • Fees paid to the Sports segment to program ESPN on ABC and certain sports content on Disney+ Amortization of capitalized production costs and licensed programming rights is generally allocated across Entertainment’s businesses based on the estimated relative value of the distribution windows.
Operating expenses at the Entertainment segment consist of the following: • Programming and production costs, which include: • Amortization of capitalized production costs and the costs of licensed programming rights • Subscriber-based fees for programming the Hulu Live TV service, including fees paid by Hulu to ESPN and the Entertainment linear networks business for the right to air their linear networks on Hulu Live TV • Production costs related to live programming (primarily news) • Participations and residual expenses 35 TABLE OF CONTENTS • Fees paid to ESPN to program certain sports content on ABC Network and Disney+ • Other operating expenses, which include technology support costs and distribution costs Amortization of capitalized production costs and costs of licensed programming rights is generally allocated across Entertainment’s businesses based on the estimated relative value of the distribution windows.
A one percentage point decrease in the assumed discount rate would increase total benefit expense for fiscal 2025 by approximately $0.2 billion and would increase the projected benefit obligation at September 28, 2024 by approximately $2.4 billion.
A one percentage point decrease in the assumed discount rate would increase total benefit expense for fiscal 2026 by approximately $0.1 billion and would increase the projected benefit obligation at September 27, 2025 by approximately $2.1 billion.
International Disney+ (excluding Disney+ Hotstar) International Disney+ (excluding Disney+ Hotstar) includes the Disney+ service outside the U.S. and Canada. Average Monthly Revenue Per Paid Subscriber Hulu and ESPN+ average monthly revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period.
International Disney+ International Disney+ includes the Disney+ service outside the U.S. and Canada. Average Monthly Revenue Per Paid Subscriber for Entertainment DTC services Hulu average monthly revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period.
Allowance for Credit Losses We evaluate our allowance for credit losses and estimate collectability of accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions.
See Note 18 to the Consolidated Financial Statements for additional information. Allowance for Credit Losses We evaluate our allowance for credit losses and estimate collectability of accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions, and reasonable and supportable forecasts of future economic conditions.
Production costs include spend on content internally produced at our studios such as live-action and animated films, episodic series, specials, shorts and theatrical stage plays. Production costs also include original content commissioned from third-party studios. Programming costs include content rights licensed from third parties for use on the Company’s sports and general entertainment networks and DTC streaming services.
Production costs include spend on content internally produced at our studios such as live-action and animated films and 48 TABLE OF CONTENTS episodic series. Production costs also include original content commissioned from third-party studios. Programming costs include content rights licensed from third parties for use on the Company’s sports and general entertainment networks and DTC streaming services.
We decreased our discount rate to 5.06% at the end of fiscal 2024 from 5.94% at the end of fiscal 2023 to reflect market interest rate conditions at our fiscal 2024 year-end measurement date.
We increased our discount rate to 5.45% at the end of fiscal 2025 from 5.06% at the end of fiscal 2024 to reflect market interest rate conditions at our fiscal 2025 year-end measurement date.
Production costs that are classified as individual are amortized based upon the ratio of the current period’s revenues to the estimated remaining total revenues (Ultimate Revenues). 51 TABLE OF CONTENTS With respect to produced films intended for theatrical release, the most sensitive factor affecting our estimate of Ultimate Revenues is theatrical performance.
See Note 2 to the Consolidated Financial Statements for further discussion. Production costs that are classified as individual are amortized based upon the ratio of the current period’s revenues to the estimated remaining total revenues (Ultimate Revenues). With respect to produced films intended for theatrical release, the most sensitive factor affecting our estimate of Ultimate Revenues is theatrical performance.
Revenues - Merchandise licensing and retail Lower merchandise licensing and retail revenue was due to decreases of 1% from an unfavorable Foreign Exchange Impact and 1% from retail, partially offset by an increase of 1% from merchandise licensing. Lower retail revenue was due to a decrease in online sales.
Revenues - Merchandise licensing and retail Higher merchandise licensing and retail revenue was due to an increase of 3% from merchandise licensing, partially offset by a decrease of 1% from an unfavorable Foreign Exchange Impact.
Produced and Acquired/Licensed Content Costs We amortize and test for impairment capitalized film and television production costs based on whether the content is predominantly monetized individually or as a group. See Note 2 to the Consolidated Financial Statements for further discussion.
For a summary of our significant accounting policies, including the accounting policies discussed below, see Note 2 to the Consolidated Financial Statements. Produced and Acquired/Licensed Content Costs We amortize and test for impairment capitalized film and television production costs based on whether the content is predominantly monetized individually or as a group.
The projected increase in capital expenditures is primarily due to higher spending at Experiences, attributable to continued investment in cruise ship fleet expansion and new guest offerings at our theme parks. Other Investing Activities Cash used in other investing activities was $1.5 billion in fiscal 2024 reflecting an investment in Epic Games, Inc.
The projected increase in capital expenditures is primarily due to higher spending at Experiences, attributable to theme park and resort expansion and new attractions, partially offset by lower spending on cruise ship fleet expansion. Other Investing Activities Cash used in other investing activities was $1.5 billion in fiscal 2024 reflecting an investment in Epic Games, Inc.
Accordingly, the Obligor Group’s cash flow and ability to service its debt, including the public debt, are dependent upon the earnings of the Company’s subsidiaries and the distribution of those earnings to the Obligor Group, whether by dividends, loans or otherwise.
Accordingly, the Obligor Group’s cash flow and ability to service its debt, including the public debt, are dependent upon the earnings of the Company’s subsidiaries and the distribution of those earnings to the Obligor Group, whether by dividends, loans or otherwise. Holders of the guaranteed registered debt securities have a direct claim only against the Obligor Group.
Holders of the guaranteed registered debt securities have a direct claim only against the Obligor Group. 56 TABLE OF CONTENTS Set forth below are summarized financial information for the Obligor Group on a combined basis after elimination of (i) intercompany transactions and balances between TWDC and Legacy Disney and (ii) equity in the earnings from and investments in any subsidiary that is a non-Guarantor.
Set forth below are summarized financial information for the Obligor Group on a combined basis after elimination of (i) intercompany transactions and balances between TWDC and Legacy Disney and (ii) equity in the earnings from and investments in any subsidiary that is a non-Guarantor.
As of September 28, 2024, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively, S&P Global Ratings’ long- and short-term debt ratings for the Company were A- and A-2 (Positive), respectively, and Fitch Ratings’ long- and short-term debt ratings for the Company were A- and F2 (Stable), respectively.
As of September 27, 2025, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively, and S&P Global Ratings’ long- and short-term debt ratings for the Company were A and A-1 (Stable).
Revenues - Parks licensing and other The increase in parks licensing and other revenue was attributable to higher sponsorship revenues, a favorable Foreign Exchange Impact and higher royalties from Tokyo Disney Resort. 45 TABLE OF CONTENTS Key Metrics In addition to revenue, costs and operating income, management uses the following key metrics to analyze trends and evaluate the overall performance of our theme parks and resorts, and we believe these metrics are useful to investors in analyzing the business : Domestic International (1) 2024 2023 2024 2023 Parks Increase (decrease) Attendance (2) 1 % 6 % 9 % 55 % Per Capita Guest Spending (3) 3 % 3 % 4 % 21 % Hotels Occupancy (4) 85 % 85 % 82 % 74 % Available Room Nights (in thousands) (5) 10,193 10,096 3,178 3,178 Change in Per Room Guest Spending (6) 3 % — % 2 % 14 % (1) Per capita guest spending growth rate and per room guest spending growth rate exclude the impact of changes in foreign currency exchange rates.
Key Metrics In addition to revenue, costs and operating income, management uses the following key metrics to analyze trends and evaluate the overall performance of our theme parks and resorts, and we believe these metrics are useful to investors in analyzing the business : Domestic International (1) 2025 2024 2025 2024 Parks Increase (decrease) Attendance (2) (1) % 1 % 1 % 9 % Per Capita Guest Spending (3) 5 % 3 % 2 % 4 % Hotels Occupancy (4) 87 % 85 % 87 % 82 % Available Room Nights (in thousands) (5) 10,236 10,193 3,173 3,178 Change in Per Room Guest Spending (6) 3 % 3 % 6 % 2 % (1) Per capita guest spending growth rate and per room guest spending growth rate exclude the impact of changes in foreign currency exchange rates.
Depreciation expense is as follows: ($ in millions) 2024 2023 Entertainment $ 681 $ 669 Sports 39 73 Experiences Domestic 1,744 2,011 International 726 669 Total Experiences 2,470 2,680 Corporate 244 204 Total depreciation expense $ 3,434 $ 3,626 Amortization of intangible assets is as follows: ($ in millions) 2024 2023 Entertainment $ 53 $ 87 Experiences 109 109 TFCF and Hulu 1,394 1,547 Total amortization of intangible assets $ 1,556 $ 1,743 Produced and licensed content costs The Entertainment and Sports segments incur costs to produce and license film, episodic, sports and other content.
Depreciation expense is as follows: ($ in millions) 2025 2024 Entertainment $ 773 $ 681 Sports 48 39 Experiences Domestic 1,933 1,744 International 782 726 Total Experiences 2,715 2,470 Corporate 323 244 Total depreciation expense $ 3,859 $ 3,434 Amortization of intangible assets is as follows: ($ in millions) 2025 2024 Entertainment $ 52 $ 53 Experiences 108 109 TFCF and Hulu 1,307 1,394 Total amortization of intangible assets $ 1,467 $ 1,556 Produced and licensed content costs The Entertainment and Sports segments incur costs to produce and license film, episodic, sports and other content.
Revenues also include an intersegment allocation of revenues from the Experiences segment, which is meant to reflect royalties on consumer products merchandise licensing revenues generated on IP created by the Entertainment segment. Operating expenses at the Entertainment segment primarily consist of programming and production costs, technology support costs, operating labor and distribution costs.
Revenues also include an intersegment allocation of revenues from the Experiences segment, which is meant to reflect royalties on consumer products merchandise licensing revenues generated on IP created by the Entertainment segment.
The par value and carrying value of total outstanding and guaranteed registered debt securities of the Obligor Group at September 28, 2024 was as follows: TWDC Legacy Disney ($ in millions) Par Value Carrying Value Par Value Carrying Value Registered debt with unconditional guarantee $ 32,360 $ 33,148 $ 8,125 $ 8,024 The guarantees by TWDC and Legacy Disney are full and unconditional and cover all payment obligations arising under the guaranteed registered debt securities.
The par value and carrying value of total outstanding and guaranteed registered debt securities of the Obligor Group at September 27, 2025 was as follows: TWDC Legacy Disney ($ in millions) Par Value Carrying Value Par Value Carrying Value Registered debt with unconditional guarantee $ 30,395 $ 31,231 $ 6,450 $ 6,387 The guarantees by TWDC and Legacy Disney are full and unconditional and cover all payment obligations arising under the guaranteed registered debt securities.
Management’s Discussion and Analysis of Financial Condition and Results of Operations CONSOLIDATED RESULTS ($ in millions, except per share data) 2024 2023 % Change Better (Worse) Revenues: Services $ 81,841 $ 79,562 3 % Products 9,520 9,336 2 % Total revenues 91,361 88,898 3 % Costs and expenses: Cost of services (exclusive of depreciation and amortization) (52,509) (53,139) 1 % Cost of products (exclusive of depreciation and amortization) (6,189) (6,062) (2) % Selling, general, administrative and other (15,759) (15,336) (3) % Depreciation and amortization (4,990) (5,369) 7 % Total costs and expenses (79,447) (79,906) 1 % Restructuring and impairment charges (3,595) (3,892) 8 % Other income (expense), net (65) 96 nm Interest expense, net (1,260) (1,209) (4) % Equity in the income of investees, net 575 782 (26) % Income before income taxes 7,569 4,769 59 % Income taxes (1,796) (1,379) (30) % Net income 5,773 3,390 70 % Net income attributable to noncontrolling interests (801) (1,036) 23 % Net income attributable to Disney $ 4,972 $ 2,354 >100 % Diluted earnings per share attributable to Disney $ 2.72 $ 1.29 >100 % Organization of Information Management’s Discussion and Analysis provides a narrative on the Company’s financial performance and condition that should be read in conjunction with the accompanying financial statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations CONSOLIDATED RESULTS ($ in millions, except per share data) 2025 2024 % Change Better (Worse) Revenues: Services $ 84,588 $ 81,841 3 % Products 9,837 9,520 3 % Total revenues 94,425 91,361 3 % Costs and expenses: Cost of services (exclusive of depreciation and amortization) (52,677) (52,509) — % Cost of products (exclusive of depreciation and amortization) (6,089) (6,189) 2 % Selling, general, administrative and other (16,501) (15,759) (5) % Depreciation and amortization (5,326) (4,990) (7) % Total costs and expenses (80,593) (79,447) (1) % Restructuring and impairment charges (819) (3,595) 77 % Other expense — (65) 100 % Interest expense, net (1,305) (1,260) (4) % Equity in the income of investees, net 295 575 (49) % Income before income taxes 12,003 7,569 59 % Income taxes 1,428 (1,796) nm Net income 13,431 5,773 >100 % Net income attributable to noncontrolling interests (1,027) (801) (28) % Net income attributable to Disney $ 12,404 $ 4,972 >100 % Diluted earnings per share attributable to Disney $ 6.85 $ 2.72 >100 % Organization of Information Management’s Discussion and Analysis provides a narrative on the Company’s financial performance and condition that should be read in conjunction with the accompanying financial statements.
Equity in the Income of Investees Income from equity investees decreased $151 million, to $539 million from $690 million, due to lower income from A+E attributable to decreases in advertising and affiliate revenue.
Equity in the Income of Investees Income from equity investees decreased $94 million, to $445 million from $539 million, due to lower income from A+E attributable to decreases in affiliate and advertising revenue, partially offset by lower general and administrative and marketing costs.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES We believe that the application of the following accounting policies, which are important to our financial position and results of operations, require significant judgments and estimates on the part of management. For a summary of our significant accounting policies, including the accounting policies discussed below, see Note 2 to the Consolidated Financial Statements.
See also Item 1A - Risk Factors. CRITICAL ACCOUNTING POLICIES AND ESTIMATES We believe that the application of the following accounting policies, which are important to our financial position and results of operations, require significant judgments and estimates on the part of management.
A one 52 TABLE OF CONTENTS percentage point increase in the assumed discount rate would decrease total benefit expense and the projected benefit obligation by approximately $0.2 billion and $2.1 billion, respectively.
A one percentage point increase in the assumed discount rate would have a negligible impact on total benefit expense and decrease the projected benefit obligation by approximately $1.9 billion.
The Company may be required to pay an incremental amount for Hulu depending on a final determination of Hulu’s fair value. See Note 2 to the Consolidated Financial Statements for further discussion of the transactions with noncontrolling interest holders. The Company’s operating cash flow and access to the capital markets can be impacted by factors outside of its control.
In June 2025, the Company paid an incremental amount for Hulu based on a final appraisal of Hulu’s fair value (see Note 4 to the Consolidated Financial Statements). The Company’s operating cash flow and access to the capital markets can be impacted by factors outside of its control.
Financing Activities Financing activities for fiscal 2024 and 2023 are as follows: ($ in millions) 2024 2023 Change in borrowings $ (1,400) $ (1,783) Dividends (1,366) — Repurchases of common stock (2,992) — Activities related to noncontrolling and redeemable noncontrolling interests (1) (9,156) (707) Cash used in other financing activities, net (2) (374) (234) Cash used in financing activities $ (15,288) $ (2,724) (1) Activities related to noncontrolling and redeemable noncontrolling interests in the current year were due to an $8.6 billion payment for Hulu’s redeemable noncontrolling interest and $0.5 billion of dividend payments to noncontrolling interest holders.
Financing Activities Financing activities for fiscal 2025 and 2024 are as follows: ($ in millions) 2025 2024 Change in borrowings $ (3,621) $ (1,400) Dividends (1,803) (1,366) Repurchases of common stock (3,500) (2,992) Activities related to noncontrolling and redeemable noncontrolling interests (1) (1,032) (9,156) Cash used in other financing activities, net (2) (410) (374) Cash used in financing activities $ (10,366) $ (15,288) (1) Activities related to noncontrolling and redeemable noncontrolling interests in the current year were due to $0.6 billion of dividend payments to noncontrolling interest holders and $0.4 billion related to an incremental amount paid by the Company for Hulu based on the final appraisal of Hulu’s fair value.
Results of operations ($ in millions) 2024 Revenues $ — Costs and expenses — Net income (loss) (2,497) Net income (loss) attributable to TWDC shareholders (2,497) Balance Sheet ($ in millions) September 28, 2024 September 30, 2023 Current assets $ 2,767 $ 8,544 Noncurrent assets 3,336 2,927 Current liabilities 7,640 5,746 Noncurrent liabilities (excluding intercompany to non-Guarantors) 40,608 43,307 Intercompany payables to non-Guarantors 157,925 154,018
Results of operations ($ in millions) 2025 Revenues $ — Costs and expenses — Net income (loss) (2,703) Net income (loss) attributable to TWDC shareholders (2,703) Balance Sheet ($ in millions) September 27, 2025 September 28, 2024 Current assets $ 2,295 $ 2,767 Noncurrent assets 3,613 3,336 Current liabilities 9,592 7,640 Noncurrent liabilities (excluding intercompany to non-Guarantors) 36,314 40,608 Intercompany payables to non-Guarantors 167,091 157,925
Revenues are also generated from sponsorships and co-branding opportunities, real estate rent and sales, and royalties from Tokyo Disney Resort. Significant expenses include operating labor, infrastructure costs, costs of goods sold and distribution costs, depreciation and other operating expenses. Infrastructure costs include technology support costs, repairs and maintenance, utilities and fuel, property taxes, retail occupancy costs, insurance and transportation.
Revenues are also generated from sponsorships and co-branding opportunities, real estate rent and sales, and royalties earned on Tokyo Disney Resort revenues. Expenses consist of operating labor, infrastructure costs, costs of goods sold and distribution costs, depreciation and other operating expenses.
The discounted cash flow analyses are sensitive to our estimated projected future cash flows as well as the discount rates used to calculate their present value. Our future cash flows are based on internal forecasts for each reporting unit, which consider projected inflation and other economic indicators, as well as industry growth projections.
Our future cash flows are based on internal forecasts for each reporting unit, which consider projected inflation and other economic indicators, as well as industry growth projections. Discount rates are determined based on the inherent risks of the underlying operations.
The increase in interest income, investment income and other was driven by a larger benefit from pension and postretirement benefit costs, other than service cost, and investments gains in the current year compared to losses in the prior year, partially offset by the impact of lower cash and cash equivalent balances.
The decrease in interest income, investment income and other was driven by a lower benefit from pension and postretirement benefit costs, other than service cost, and the impact of lower average cash and cash equivalent balances and lower average rates.
Costs and expenses for each segment consist of operating expenses, selling, general, administrative and other costs, and depreciation and amortization. Selling, general, administrative and other costs include third-party and internal marketing expenses.
Below is a discussion of the major revenue and expense categories for our business segments. Costs and expenses for each segment consist of operating expenses, selling, general, administrative and other costs, and depreciation and amortization. Selling, general, administrative and other costs include third-party and internal marketing expenses.
(2) In fiscal 2024, amortization of step-up on film and television costs was $271 million and amortization of intangible assets was $1,054 million. In fiscal 2023, amortization of step-up on film and television costs was $439 million and amortization of intangible assets was $1,151 million.
In fiscal 2024, amortization of step-up on film and television costs was $271 million and amortization of intangible assets was $1,054 million. (2) Fiscal 2025 includes $635 million for impairments of equity investments and $109 million for content impairments.
Investing Activities Investing activities, which consist principally of investments in parks, resorts and other property and acquisition and divestiture activity, for fiscal 2024 and 2023 are as follows: ($ in millions) 2024 2023 Entertainment $ 977 $ 1,032 Sports 10 15 Experiences Domestic 2,710 2,203 International 949 822 Total Experiences 3,659 3,025 Corporate 766 897 Total investments in parks, resorts and other property 5,412 4,969 Cash used in (provided by) other investing activities, net 1,469 (328) Cash used in investing activities $ 6,881 $ 4,641 49 TABLE OF CONTENTS Investments in Parks, Resorts and Other Property Capital expenditures at Entertainment primarily reflect investments in technology and in facilities and equipment for expanding and upgrading broadcast centers, production facilities and television station facilities.
Legal and Tax Matters As disclosed in Notes 9 and 14 to the Consolidated Financial Statements, the Company has exposure for certain tax and legal matters. 49 TABLE OF CONTENTS Investing Activities Investing activities, which consist principally of investments in parks, resorts and other property and acquisition and divestiture activity, for fiscal 2025 and 2024 are as follows: ($ in millions) 2025 2024 Entertainment $ (1,155) $ (977) Sports (3) (10) Experiences Domestic (5,271) (2,710) International (1,158) (949) Total Experiences (6,429) (3,659) Corporate (437) (766) Total investments in parks, resorts and other property (8,024) (5,412) Cash used in other investing activities, net (19) (1,469) Cash used in investing activities $ (8,043) $ (6,881) Investments in Parks, Resorts and Other Property Capital expenditures at Entertainment primarily reflect investments in technology and in facilities and equipment for expanding and upgrading broadcast centers, production facilities and television station facilities.
The initial costs of marketing 35 TABLE OF CONTENTS campaigns are generally recognized in the business of initial exploitation. Certain other costs, such as technology, shared services and certain labor related costs, are allocated based on metrics designed to correlate with consumption.
The initial costs of marketing campaigns are generally recognized in the business of initial exploitation. Certain other costs, such as technology, shared services and certain labor related costs, are allocated based on metrics designed to correlate with consumption. Sports The Sports segment primarily generates revenue from affiliate and subscription fees, advertising, pay-per-view fees and sub-licensing of sports rights.
Eliminations The following transactions are recognized in segment revenues and eliminated in total Company revenue: • Fees paid by Hulu to ESPN and the Entertainment linear networks business for the right to air their networks on Hulu Live • Fees paid by ABC Network and Disney+ to ESPN to program ESPN on ABC and certain sports content on Disney+, respectively BUSINESS SEGMENT RESULTS - 2024 vs. 2023 The following table presents revenues from our operating segments: ($ in millions) 2024 2023 % Change Better (Worse) Entertainment $ 41,186 $ 40,635 1 % Sports 17,619 17,111 3 % Experiences 34,151 32,549 5 % Eliminations (1,595) (1,397) (14) % Revenues $ 91,361 $ 88,898 3 % The following table presents income from our operating segments and other components of income from continuing operations before income taxes: ($ in millions) 2024 2023 % Change Better (Worse) Entertainment operating income $ 3,923 $ 1,444 >100 % Sports operating income 2,406 2,465 (2) % Experiences operating income 9,272 8,954 4 % Corporate and unallocated shared expenses (1,435) (1,147) (25) % Restructuring and impairment charges (1) (3,595) (3,836) 6 % Other income (expense), net (65) 96 nm Interest expense, net (1,260) (1,209) (4) % TFCF and Hulu acquisition amortization (1,677) (1,998) 16 % Income from continuing operations before income taxes $ 7,569 $ 4,769 59 % (1) Restructuring and impairment charges in the prior year i nclude the A+E gain. 36 TABLE OF CONTENTS Entertainment Revenue and operating results for the Entertainment segment are as follows: ($ in millions) 2024 2023 % Change Better (Worse) Revenues: Linear Networks $ 10,692 $ 11,701 (9) % Direct-to-Consumer 22,776 19,886 15 % Content Sales/Licensing and Other 7,718 9,048 (15) % $ 41,186 $ 40,635 1 % Segment operating income (loss): Linear Networks $ 3,452 $ 4,119 (16) % Direct-to-Consumer 143 (2,496) nm Content Sales/Licensing and Other 328 (179) nm $ 3,923 $ 1,444 >100 % Revenues The increase in Entertainment revenues was due to subscription revenue growth, partially offset by decreases in theatrical distribution, affiliate and TV/VOD distribution revenues.
Eliminations The following transactions are recognized in segment revenues and eliminated in total Company revenue: • Fees paid by Hulu to ESPN and the Entertainment linear networks business for the right to air their networks on Hulu Live TV • Fees paid by ABC Network and Disney+ to ESPN to program certain sports content on ABC Network and Disney+, respectively BUSINESS SEGMENT RESULTS - 2025 vs. 2024 The following table presents revenues from our operating segments: ($ in millions) 2025 2024 % Change Better (Worse) Entertainment $ 42,466 $ 41,186 3 % Sports 17,672 17,619 — % Experiences 36,156 34,151 6 % Eliminations (1,869) (1,595) (17) % Revenues $ 94,425 $ 91,361 3 % 36 TABLE OF CONTENTS The following table presents income from our operating segments and other components of income before income taxes: ($ in millions) 2025 2024 % Change Better (Worse) Entertainment operating income $ 4,674 $ 3,923 19 % Sports operating income 2,882 2,406 20 % Experiences operating income 9,995 9,272 8 % Corporate and unallocated shared expenses (1,646) (1,435) (15) % Equity in the loss of India joint venture (202) — nm Restructuring and impairment charges (819) (3,595) 77 % Other expense — (65) 100 % Interest expense, net (1,305) (1,260) (4) % TFCF and Hulu acquisition amortization (1,576) (1,677) 6 % Income before income taxes $ 12,003 $ 7,569 59 % Entertainment Revenue and operating results for the Entertainment segment are as follows: ($ in millions) 2025 2024 % Change Better (Worse) Revenues: Linear Networks $ 9,364 $ 10,692 (12) % Direct-to-Consumer 24,614 22,776 8 % Content Sales/Licensing and Other 8,488 7,718 10 % $ 42,466 $ 41,186 3 % Segment operating income: Linear Networks $ 2,955 $ 3,452 (14) % Direct-to-Consumer 1,327 143 >100 % Content Sales/Licensing and Other 392 328 20 % $ 4,674 $ 3,923 19 % Revenues The increase in Entertainment revenues was due to an increase in subscription fees and higher content sales.
Higher infrastructure costs were primarily attributable to higher technology spending and an increase in operations support costs. The increase in other operating expenses was primarily due to an unfavorable Foreign Exchange Impact, higher volumes and increased operations support costs.
Higher infrastructure costs were primarily attributable to higher technology spending, new guest offerings and an increase in operations support costs, partially offset by cost management initiatives. The increase in other operating expenses was primarily attributable to new guest offerings, higher volumes and increased operations support costs, partially offset by cost management initiatives.
Programming assets are generally recorded when the programming becomes available to us with a corresponding increase in programming liabilities. 48 TABLE OF CONTENTS The Company’s production and programming activity for fiscal 2024 and 2023 are as follows: ($ in millions) 2024 2023 Beginning balances: Production and programming assets $ 36,593 $ 37,667 Programming liabilities (3,792) (3,940) 32,801 33,727 Spending: Licensed programming and rights 13,619 14,851 Produced content 9,816 12,323 23,435 27,174 Amortization: Licensed programming and rights (14,027) (13,405) Produced content (10,454) (11,861) (24,481) (25,266) Change in production and programming costs (1,046) 1,908 Content impairment (187) (2,266) Produced and licensed content reclassified to assets held for sale (1,084) — Other non-cash activity 233 (568) Ending balances: Production and programming assets 34,409 36,593 Programming liabilities (3,692) (3,792) $ 30,717 $ 32,801 The Company currently expects its fiscal 2025 spend on produced and licensed content to be approximately $24 billion including sports rights but excluding Star India.
The Company’s production and programming activity for fiscal 2025 and 2024 are as follows: ($ in millions) 2025 2024 Beginning balances: Production and programming assets $ 34,409 $ 36,593 Programming liabilities (3,692) (3,792) 30,717 32,801 Spending: Licensed programming and rights 12,887 13,619 Produced content 9,822 9,816 22,709 23,435 Amortization: Licensed programming and rights (12,876) (14,027) Produced content (10,410) (10,454) (23,286) (24,481) Change in production and programming costs (577) (1,046) Content impairment (109) (187) Produced and licensed content reclassified to assets held for sale — (1,084) Other non-cash activity 6 233 Ending balances: Production and programming assets 33,390 34,409 Programming liabilities (3,353) (3,692) $ 30,037 $ 30,717 The Company currently expects its fiscal 2026 spend on produced and licensed content to be approximately $24 billion including sports rights.
As discussed in Note 18 to the Consolidated Financial Statements, in the second and fourth quarters of fiscal 2024, the Company recorded non-cash goodwill impairment charges of $0.7 billion and $0.6 billion, respectively, related to our entertainment linear networks reporting unit prior to aggregating all of our entertainment reporting units into a single reporting unit in the fourth quarter of fiscal 2024.
As discussed in Note 18 to the Consolidated Financial Statements, in fiscal 2024, the Company recorded non-cash goodwill impairment charges of $1.3 billion related to our entertainment linear networks reporting unit.
Linear Networks Operating results for Linear Networks are as follows: ($ in millions) 2024 2023 % Change Better (Worse) Revenues Affiliate fees $ 6,872 $ 7,369 (7) % Advertising 3,676 4,159 (12) % Other 144 173 (17) % Total revenues 10,692 11,701 (9) % Operating expenses (5,083) (5,577) 9 % Selling, general, administrative and other (2,644) (2,641) — % Depreciation and amortization (52) (54) 4 % Equity in the income of investees 539 690 (22) % Operating Income $ 3,452 $ 4,119 (16) % Revenues - Affiliate fees ($ in millions) 2024 2023 % Change Better (Worse) Domestic $ 5,826 $ 6,136 (5) % International 1,046 1,233 (15) % $ 6,872 $ 7,369 (7) % The decrease in domestic affiliate revenue was due to a decline of 11% from fewer subscribers, including the impact of the non-renewal of carriage of certain networks by an affiliate, partially offset by an increase of 6% from higher effective rates.
Operating income The increase in Entertainment operating income was due to growth at Direct-to-Consumer and, to a lesser extent, Content Sales/Licensing and Other, partially offset by a decrease at Linear Networks. 37 TABLE OF CONTENTS Linear Networks Operating results for Linear Networks are as follows: ($ in millions) 2025 2024 % Change Better (Worse) Revenues Affiliate fees $ 6,348 $ 6,872 (8) % Advertising 2,856 3,676 (22) % Other 160 144 11 % Total revenues 9,364 10,692 (12) % Operating expenses (4,433) (5,083) 13 % Selling, general, administrative and other (2,329) (2,644) 12 % Depreciation and amortization (92) (52) (77) % Equity in the income of investees 445 539 (17) % Operating Income $ 2,955 $ 3,452 (14) % Revenues - Affiliate fees ($ in millions) 2025 2024 % Change Better (Worse) Domestic $ 5,744 $ 5,826 (1) % International 604 1,046 (42) % $ 6,348 $ 6,872 (8) % The decrease in domestic affiliate revenue was due to a decline of 9% from fewer subscribers, partially offset by an increase of 7% from higher effective rates.
DTC PRODUCT DESCRIPTIONS, KEY DEFINITIONS AND SUPPLEMENTAL INFORMATION Product Offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countries and territories outside the U.S. and Canada.
ENTERTAINMENT DTC PRODUCT DESCRIPTIONS AND KEY DEFINITIONS Entertainment DTC Product Offerings In the U.S., Disney+ and Hulu SVOD Only are each offered as a standalone service or as part of various bundled offerings, which may include one of the ESPN DTC plans. Hulu Live TV + SVOD includes Disney+ and ESPN Select.
See Notes 14 and 15 to the Consolidated Financial Statements for further information regarding these commitments. Legal and Tax Matters As disclosed in Notes 9 and 14 to the Consolidated Financial Statements, the Company has exposure for certain tax and legal matters.
See Notes 14 and 15 to the Consolidated Financial Statements for further information regarding these commitments.
Supplemental revenue and operating income The following table presents supplemental revenue and operating income detail for the Experiences segment: ($ in millions) 2024 2023 % Change Better (Worse) Supplemental revenue detail Parks & Experiences Domestic $ 23,596 $ 22,677 4 % International 6,183 5,475 13 % Consumer Products 4,372 4,397 (1) % $ 34,151 $ 32,549 5 % Supplemental operating income detail Parks & Experiences Domestic $ 5,878 $ 5,876 — % International 1,354 1,104 23 % Consumer Products 2,040 1,974 3 % $ 9,272 $ 8,954 4 % Items Excluded from Segment Operating Income Related to Experiences The following table presents supplemental information for items related to Experiences that are excluded from segment operating income: ($ in millions) 2024 2023 % Change Better (Worse) Restructuring and impairment charges (1) $ (331) $ (25) >(100) % Charge related to a legal ruling (65) (101) 36 % TFCF acquisition amortization (7) (8) 13 % (1) Charges for the current year were due to an impairment of assets at our retail business.
Supplemental revenue and operating income The following table presents supplemental revenue and operating income detail for the Experiences segment: ($ in millions) 2025 2024 % Change Better (Worse) Supplemental revenue detail Parks & Experiences Domestic $ 25,191 $ 23,596 7 % International 6,520 6,183 5 % Consumer Products 4,445 4,372 2 % $ 36,156 $ 34,151 6 % Supplemental operating income detail Parks & Experiences Domestic $ 6,375 $ 5,878 8 % International 1,442 1,354 6 % Consumer Products 2,178 2,040 7 % $ 9,995 $ 9,272 8 % Items Excluded from Segment Operating Income Related to Experiences The following table presents supplemental information for items related to Experiences that are excluded from segment operating income: ($ in millions) 2025 2024 % Change Better (Worse) TFCF acquisition amortization $ (7) $ (7) — % Restructuring and impairment charges (1) — (331) 100 % Charge related to a legal ruling — (65) 100 % (1) Charges for the prior year were due to an impairment of assets at our retail business. 47 TABLE OF CONTENTS CORPORATE AND UNALLOCATED SHARED EXPENSES Corporate and unallocated shared expenses are as follows: ($ in millions) 2025 2024 % Change Better (Worse) Corporate and unallocated shared expenses $ (1,646) $ (1,435) (15) % The increase in corporate and unallocated shared expenses was primarily due to legal settlements, higher compensation and human resource-related costs, partially offset by a gain on a land sale.
The increase in operating cash flows at Entertainment was driven by lower cash disbursements due to a decrease in operating expenses. These increases were partially offset by higher cash tax payments in the current year compared to the prior year.
The increase was due to lower tax payments in the current year compared to the prior year and higher operating cash flows at Entertainment and, to a lesser extent, Experiences.
If projected usage changes we may need to accelerate or slow the recognition of amortization expense. Cost of content that is predominantly monetized as a group is tested for impairment by comparing the present value of the discounted cash flows of the group to the aggregate unamortized costs of the group.
Cost of content that is predominantly monetized as a group is tested for impairment whenever events or changes in circumstances indicate that the fair value of the group may be less than its unamortized costs by comparing the present value of the discounted cash flows of the group to the aggregate unamortized costs of the group.
Supplemental revenue and operating income The following table provides supplemental revenue and operating income (loss) detail for the Sports segment: ($ in millions) 2024 2023 % Change Better (Worse) Supplemental revenue detail ESPN Domestic $ 15,339 $ 14,945 3 % International 1,439 1,437 — % 16,778 16,382 2 % Star India 841 729 15 % $ 17,619 $ 17,111 3 % Supplemental operating income (loss) detail ESPN Domestic $ 3,056 $ 2,881 6 % International (72) (39) (85) % 2,984 2,842 5 % Star India (636) (432) (47) % Equity in the income of investees 58 55 5 % $ 2,406 $ 2,465 (2) % Items Excluded from Segment Operating Income Related to Sports The following table presents supplemental information for items related to Sports that are excluded from segment operating income: ($ in millions) 2024 2023 % Change Better (Worse) TFCF acquisition amortization (1) $ (333) $ (388) 14 % Restructuring and impairment charges (2) (12) (346) 97 % (1) Represents amortization of intangible assets.
Operating Income from Sports Segment operating income increased $476 million, to $2,882 million from $2,406 million, due to the Star India Transaction and an improvement at international ESPN, partially offset by a decrease at domestic ESPN. 44 TABLE OF CONTENTS Supplemental revenue and operating income The following table provides supplemental revenue and operating income (loss) detail for the Sports segment: ($ in millions) 2025 2024 % Change Better (Worse) Supplemental revenue detail ESPN Domestic $ 16,085 $ 15,339 5 % International 1,548 1,439 8 % 17,633 16,778 5 % Star India 39 841 (95) % $ 17,672 $ 17,619 — % Supplemental operating income (loss) detail ESPN Domestic $ 2,801 $ 3,056 (8) % International 5 (72) nm 2,806 2,984 (6) % Star India 9 (636) nm Equity in the income of investees 67 58 16 % $ 2,882 $ 2,406 20 % Items Excluded from Segment Operating Income Related to Sports The following table presents supplemental information for items related to Sports that are excluded from segment operating income: ($ in millions) 2025 2024 % Change Better (Worse) TFCF acquisition amortization (1) $ (296) $ (333) 11 % Restructuring and impairment charges — (12) 100 % (1) Represents amortization of intangible assets.
Operating Income from Experiences Segment operating income increased $318 million, from $8,954 million to $9,272 million primarily due to growth at international parks and experiences.
Operating Income from Experiences Segment operating income increased $723 million, from $9,272 million to $9,995 million due to growth at domestic parks and experiences and, to a lesser extent, consumer products and international parks and experiences.
For our annual impairment test, we bypassed the qualitative test and performed a quantitative assessment of goodwill for impairment. To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate.
When performing a quantitative assessment, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate to determine the fair value of our reporting units. The discounted cash flow analyses are sensitive to our estimated projected future cash flows as well as the discount rates used to calculate their present value.
International ESPN affiliate revenue was comparable to the prior year, as decreases from an unfavorable Foreign Exchange Impact and fewer subscribers were largely offset by higher effective rates.
International ESPN affiliate fees reflected higher effective rates, partially offset by decreases from an unfavorable Foreign Exchange Impact and fewer subscribers. The decrease in Star India affiliate fees was due to the Star India Transaction.
CONSOLIDATED RESULTS AND NON-SEGMENT ITEMS Revenues for fiscal 2024 increased 3%, or $2.5 billion, to $91.4 billion; net income attributable to Disney increased $2.6 billion to income of $5.0 billion compared to $2.4 billion in the prior year; and diluted earnings per share (EPS) from continuing operations attributable to Disney increased to $2.72 compared to $1.29 in the prior year.
The Company recognizes its 37% share of the India joint venture’s results in “Equity in the income of investees.” Star India results through November 14, 2024 were consolidated in the Company’s financial results and reported in the Entertainment and Sports segments. 32 TABLE OF CONTENTS CONSOLIDATED RESULTS AND NON-SEGMENT ITEMS Revenues for fiscal 2025 increased 3%, or $3.1 billion, to $94.4 billion; net income attributable to Disney increased $7.4 billion to income of $12.4 billion compared to $5.0 billion in the prior year; and diluted earnings per share (EPS) from continuing operations attributable to Disney increased to $6.85 compared to $2.72 in the prior year.
Changes to these assumptions and shifts in market trends or macroeconomic events could impact test results in the future.
Changes to these assumptions and shifts in market trends or macroeconomic events could impact test results in the future. 53 TABLE OF CONTENTS In fiscal 2025, the Company performed a qualitative assessment of goodwill for impairment.
In the prior year, goodwill impairments related to our general entertainment and international sports linear networks. (2) In the current and prior years, content impairments related to strategic changes in our approach to content curation.
(2) Related to strategic changes in our approach to content curation. (3) Related to general entertainment linear networks.
Sports The Sports segment primarily generates revenue from affiliate fees, advertising, subscription fees, pay-per-view fees and sub-licensing of sports rights. Operating expenses consist primarily of programming and production costs, technology support costs, operating labor and distribution costs. Programming and production costs include amortization of licensed sports rights and production costs related to live sports and other sports-related programming.
Operating expenses consist of programming and production costs and other operating expenses. Programming and production costs include amortization of licensed sports rights and production costs related to live sports and other sports-related programming. Other operating expenses include technology support costs and distribution costs.
At the end of June 2024, we merged these services into a single Disney+ product offering. Depending on the market, our services can be purchased on our websites or through third-party platforms/apps or are available via wholesale arrangements. Paid Subscribers Paid subscribers reflect subscribers for which we recognized subscription revenue.
Disney+ is available in more than 150 countries and territories outside the U.S. Depending on the market, our services can be purchased on our websites or through third-party platforms/apps or are available via wholesale arrangements. Paid Subscribers for Entertainment DTC services Paid subscribers for Entertainment DTC services reflect subscribers for which we recognized subscription revenue.
Domestic Disney+ average monthly revenue per paid subscriber increased from $6.97 to $7.89 due to higher retail pricing, partially offset by a higher mix of subscribers to wholesale offerings.
Domestic Disney+ average monthly revenue per paid subscriber increased from $7.89 to $8.06 due to increases in pricing, partially offset by the impact of subscriber mix shifts. International Disney+ average monthly revenue per paid subscriber increased from $6.38 to $7.59 due to increases in pricing, partially offset by the impact of subscriber mix shifts.
Supplemental revenue and operating income The following table provides supplemental revenue and operating income detail for Linear Networks: ($ in millions) 2024 2023 % Change Better (Worse) Supplemental revenue detail Domestic $ 8,621 $ 9,406 (8) % International 2,071 2,295 (10) % $ 10,692 $ 11,701 (9) % Supplemental operating income detail Domestic $ 2,387 $ 2,735 (13) % International 526 694 (24) % Equity in the income of investees 539 690 (22) % $ 3,452 $ 4,119 (16) % 38 TABLE OF CONTENTS Direct-to-Consumer Operating results for Direct-to-Consumer are as follows: ($ in millions) 2024 2023 % Change Better (Worse) Revenues Subscription fees $ 18,796 $ 16,420 14 % Advertising 3,707 3,260 14 % Other 273 206 33 % Total revenues 22,776 19,886 15 % Operating expenses (17,748) (17,859) 1 % Selling, general, administrative and other (4,574) (4,168) (10) % Depreciation and amortization (311) (355) 12 % Operating Income (Loss) $ 143 $ (2,496) nm Revenues - Subscription fees Growth in subscription fees reflected increases of 10% attributable to higher effective rates due to increases in retail pricing and 6% from subscriber growth, partially offset by a decrease of 2% from an unfavorable Foreign Exchange Impact.
Supplemental revenue and operating income The following table provides supplemental revenue and operating income detail for Linear Networks: ($ in millions) 2025 2024 % Change Better (Worse) Supplemental revenue detail Domestic $ 8,309 $ 8,621 (4) % International 1,055 2,071 (49) % $ 9,364 $ 10,692 (12) % Supplemental operating income detail Domestic $ 2,378 $ 2,387 — % International 132 526 (75) % Equity in the income of investees 445 539 (17) % $ 2,955 $ 3,452 (14) % Direct-to-Consumer Operating results for Direct-to-Consumer are as follows: ($ in millions) 2025 2024 % Change Better (Worse) Revenues Subscription fees $ 20,772 $ 18,796 11 % Advertising 3,684 3,707 (1) % Other 158 273 (42) % Total revenues 24,614 22,776 8 % Operating expenses (18,263) (17,748) (3) % Selling, general, administrative and other (4,658) (4,574) (2) % Depreciation and amortization (366) (311) (18) % Operating Income $ 1,327 $ 143 >100 % Revenues - Subscription fees Growth in subscription fees was due to increases of 8% attributable to higher effective rates reflecting increases in pricing and 4% from more subscribers, partially offset by decreases of 1% from an unfavorable movement of the U.S. dollar against major currencies (Foreign Exchange Impact) and 1% from the Star India Transaction. 39 TABLE OF CONTENTS Revenues - Advertising Advertising revenue was comparable to the prior year, as decreases of 9% from lower rates and 8% from the Star India Transaction were largely offset by an increase of 15% from higher impressions.
(2) Fiscal 2023 includes $296 million for a goodwill impairment and $50 million for severance. 44 TABLE OF CONTENTS Experiences Operating results for the Experiences segment are as follows: ($ in millions) 2024 2023 % Change Better (Worse) Revenues Theme park admissions $ 11,171 $ 10,423 7 % Resorts and vacations 8,375 7,949 5 % Parks & Experiences merchandise, food and beverage 8,039 7,712 4 % Merchandise licensing and retail 4,307 4,358 (1) % Parks licensing and other 2,259 2,107 7 % Total revenues 34,151 32,549 5 % Operating expenses (18,356) (17,129) (7) % Selling, general, administrative and other (3,944) (3,675) (7) % Depreciation and amortization (2,579) (2,789) 8 % Equity in the loss of investees — (2) 100 % Operating Income $ 9,272 $ 8,954 4 % Revenues - Theme park admissions The increase in theme park admissions revenue was due to increases of 5% from higher average per capita ticket revenue and 2% from attendance growth.
Experiences Operating results for the Experiences segment are as follows: ($ in millions) 2025 2024 % Change Better (Worse) Revenues Theme park admissions $ 11,707 $ 11,171 5 % Resorts and vacations 9,210 8,375 10 % Parks & Experiences merchandise, food and beverage 8,491 8,039 6 % Merchandise licensing and retail 4,387 4,307 2 % Parks licensing and other 2,361 2,259 5 % Total revenues 36,156 34,151 6 % Operating expenses (19,224) (18,356) (5) % Selling, general, administrative and other (4,114) (3,944) (4) % Depreciation and amortization (2,823) (2,579) (9) % Operating Income $ 9,995 $ 9,272 8 % Revenues - Theme park admissions The increase in theme park admissions revenue was due to an increase of 4% from higher average per capita ticket revenue. 45 TABLE OF CONTENTS Revenues - Resorts and vacations Growth in resorts and vacations revenue was primarily attributable to increases of 5% from additional passenger cruise days, 2% from higher occupied hotel room nights and 1% from increased unit sales at Disney Vacation Club.
Operating expenses ($ in millions) 2024 2023 % Change Better (Worse) Programming and production costs $ (4,135) $ (5,383) 23 % Distribution costs and cost of goods sold (766) (897) 15 % $ (4,901) $ (6,280) 22 % The decrease in programming and production costs was due to lower production cost amortization attributable to the decreases in theatrical and TV/VOD distribution revenues, partially offset by higher film cost impairments.
Operating expenses ($ in millions) 2025 2024 % Change Better (Worse) Programming and production costs $ (4,260) $ (4,135) (3) % Other operating expenses (717) (766) 6 % $ (4,977) $ (4,901) (2) % The increase in programming and production costs was due to higher production cost amortization attributable to the increases in distribution revenues, partially offset by lower film cost impairments and fewer stage play performances.
Borrowings activities and other During the year ended September 28, 2024, the Company’s borrowing activity was as follows: ($ in millions) September 30, 2023 Borrowings Payments Other Activity September 28, 2024 Commercial paper with original maturities less than three months (1) $ 289 $ 431 $ — $ 7 $ 727 Commercial paper with original maturities greater than three months 1,187 4,305 (3,204) 25 2,313 U.S. dollar denominated notes (2) 43,504 — (2,870) (138) 40,496 Asia Theme Parks borrowings (3) 1,308 — (62) 46 1,292 Foreign currency denominated debt and other (4) 143 132 (132) 844 987 $ 46,431 $ 4,868 $ (6,268) $ 784 $ 45,815 (1) Borrowings and reductions of borrowings are reported net.
(2) Primarily consists of equity award activity. 50 TABLE OF CONTENTS Borrowings activities and other During the year ended September 27, 2025, the Company’s borrowing activity was as follows: ($ in millions) September 28, 2024 Borrowings Payments Other Activity September 27, 2025 Commercial paper with original maturities less than three months (1) $ 727 $ 1,232 $ — $ 4 $ 1,963 Commercial paper with original maturities greater than three months 2,313 1,129 (3,304) (39) 99 U.S. dollar denominated notes (2) 40,496 1,057 (2,742) (153) 38,658 Asia Theme Parks borrowings (3) 1,292 — (68) (149) 1,075 Foreign currency denominated debt and other (4) 987 — (925) 169 231 $ 45,815 $ 3,418 $ (7,039) $ (168) $ 42,026 (1) Borrowings and reductions of borrowings are reported net.
(formerly known as The Walt Disney Company) (“Legacy Disney”). Legacy Disney and TWDC are collectively referred to as “Obligor Group”, and individually, as a “Guarantor”.
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION On March 20, 2019, as part of the acquisition of TFCF, The Walt Disney Company (“TWDC”) became the ultimate parent of TWDC Enterprises 18 Corp. (formerly known as The Walt Disney Company) (“Legacy Disney”). Legacy Disney and TWDC are collectively referred to as “Obligor Group”, and individually, as a “Guarantor”.
CORPORATE AND UNALLOCATED SHARED EXPENSES Corporate and unallocated shared expenses are as follows: ($ in millions) 2024 2023 % Change Better (Worse) Corporate and unallocated shared expenses $ (1,435) $ (1,147) (25) % The increase in corporate and unallocated shared expenses was primarily due to higher labor costs, increases in professional services and costs related to our proxy solicitation. 47 TABLE OF CONTENTS LIQUIDITY AND CAPITAL RESOURCES The change in cash, cash equivalents and restricted cash is as follows: ($ in millions) 2024 2023 Cash provided by operations $ 13,971 $ 9,866 Cash used in investing activities (6,881) (4,641) Cash used in financing activities (15,288) (2,724) Impact of exchange rates on cash, cash equivalents and restricted cash 65 73 Change in cash, cash equivalents and restricted cash $ (8,133) $ 2,574 Operating Activities Cash provided by operating activities increased 42% or $4.1 billion to $14.0 billion in the current year compared to $9.9 billion in the prior year.
LIQUIDITY AND CAPITAL RESOURCES The change in cash, cash equivalents and restricted cash is as follows: ($ in millions) 2025 2024 Cash provided by operations $ 18,101 $ 13,971 Cash used in investing activities (8,043) (6,881) Cash used in financing activities (10,366) (15,288) Impact of exchange rates on cash, cash equivalents and restricted cash 5 65 Change in cash, cash equivalents and restricted cash $ (303) $ (8,133) Operating Activities Cash provided by operations increased 30% or $4.1 billion to $18.1 billion in the current year compared to $14.0 billion in the prior year.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+0 added−0 removed12 unchanged
Biggest changeThe estimated maximum potential one-day loss in fair value, calculated using the VAR model, is as follows (unaudited, in millions): Fiscal 2024 Interest Rate Sensitive Financial Instruments Currency Sensitive Financial Instruments Equity Sensitive Financial Instruments Commodity Sensitive Financial Instruments Combined Portfolio Year end fiscal 2024 VAR $ 235 $ 40 $ 7 $ 2 $ 255 Average VAR 290 48 5 3 315 Highest VAR 416 57 7 4 444 Lowest VAR 235 40 4 2 255 Year end fiscal 2023 VAR 258 45 4 4 284 The VAR for Asia Theme Parks is immaterial as of September 28, 2024 and has been excluded from the above table.
Biggest changeThe estimated maximum potential one-day loss in fair value, calculated using the VAR model, is as follows (unaudited, in millions): Fiscal 2025 Interest Rate Sensitive Financial Instruments Currency Sensitive Financial Instruments Equity Sensitive Financial Instruments Commodity Sensitive Financial Instruments Combined Portfolio Year end fiscal 2025 VAR $ 164 $ 57 $ 4 $ 2 $ 201 Average VAR 217 55 6 2 242 Highest VAR 243 80 11 2 269 Lowest VAR 164 41 4 1 201 Year end fiscal 2024 VAR 235 40 7 2 255 The VAR for Asia Theme Parks is immaterial as of September 27, 2025 and has been excluded from the above table. 57 TABLE OF CONTENTS ITEM 8.
These interrelationships were determined by observing interest rate, foreign currency, commodity and equity market changes over the preceding quarter for the calculation of VAR amounts at each fiscal quarter end. The model includes all of the Company’s debt, interest rate and foreign exchange, and commodities derivatives, and market sensitive equity investments.
These interrelationships were determined by observing interest rate, foreign currency, commodity and equity market changes over the preceding quarter for the calculation of VAR amounts at each fiscal quarter end. The model includes all of the Company’s debt, interest rate, foreign exchange, and commodities derivatives, and market sensitive equity investments.
ITEM 8. Financial Statements and Supplementary Data See Index to Financial Statements and Supplemental Data on page 67 . ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.
Financial Statements and Supplementary Data See Index to Financial Statements and Supplemental Data on page 67 . ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.
Our objectives in managing exposure to interest rate changes are to limit the impact of interest rate volatility on earnings and cash flows and to lower overall borrowing costs. To achieve these objectives, we primarily use interest rate swaps to manage net exposure to interest rate changes related to the Company’s portfolio of borrowings.
Our objectives in managing exposure to interest rate changes are to limit the impact of interest rate volatility on earnings and cash flows and to lower overall borrowing costs. To achieve these objectives, we primarily use interest rate swaps to 56 TABLE OF CONTENTS manage net exposure to interest rate changes related to the Company’s portfolio of borrowings.
It is the Company’s policy to enter into foreign currency and interest rate derivative transactions and other financial instruments only to the extent considered necessary to meet its objectives as stated above. The Company does not enter into these transactions or any other hedging transactions for speculative purposes.
It is the Company’s policy to enter into foreign currency and interest rate derivative transactions and other financial instruments only to the extent considered necessary to meet its objectives as stated above. The Company does not enter into these transactions or any other hedging transactions for speculative purposes. See Note 17 of the Consolidated Financial Statements for additional information.
VAR on a combined basis decreased to $255 million at September 28, 2024 from $284 million at September 30, 2023 due to reduced interest rate volatility.
VAR on a combined basis decreased to $201 million at September 27, 2025 from $255 million at September 28, 2024 due to reduced interest rate volatility.
See Note 17 of the Consolidated Financial Statements for additional information. 57 TABLE OF CONTENTS Value at Risk (VAR) The Company utilizes a VAR model to estimate the maximum potential one-day loss in the fair value of its interest rate, foreign exchange, commodities and market sensitive equity financial instruments.
Value at Risk (VAR) The Company utilizes a VAR model to estimate the maximum potential one-day loss in the fair value of its interest rate, foreign exchange, commodities and market sensitive equity financial instruments.

Other DIS 10-K year-over-year comparisons