Cash, Cash Equivalents, Restricted Cash and Borrowings

3 Months Ended

Dec. 30, 2023

Disclosure of Cash, Cash Equivalents, Restricted Cash and Borrowings

Cash, Cash Equivalents, Restricted Cash and Borrowings

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the amounts reported in the Condensed Consolidated Statements of Cash Flows.


	December 30, 2023		September 30, 2023
Cash and cash equivalents	$	7,192	$	14,182


Restricted cash included in other assets	55		53

Total cash, cash equivalents and restricted cash in the statement of cash flows	$	7,247	$	14,235

Borrowings

During the quarter ended December 30, 2023, the Company’s borrowing activity was as follows:


	September 30, 2023		Borrowings		Payments		Other Activity		December 30, 2023
Commercial paper with original maturities less than three months	$	289	$	542	$	—	$	5	$	836
Commercial paper with original maturities greater than three months	1,187		754		(250)		16		1,707
U.S. dollar denominated notes	43,504		—		(295)		(39)		43,170


Asia Theme Parks borrowings	1,308		—		(14)		50		1,344
Foreign currency denominated debt and other(1)	143		—		—		490		633
	$	46,431	$	1,296	$	(559)	$	522	$	47,690

(1)The other activity is attributable to market value adjustments for debt with qualifying hedges.

At December 30, 2023, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows:


	Committed Capacity		Capacity Used		Unused Capacity
Facility expiring March 2024	$	5,250	$	—	$	5,250

Facility expiring March 2025	3,000		—		3,000
Facility expiring March 2027	4,000		—		4,000
Total	$	12,250	$	—	$	12,250

These facilities allow for borrowings at rates based on the Secured Overnight Financing Rate (SOFR), and at other variable rates for non-U.S. dollar denominated borrowings, plus a fixed spread that varies with the Company’s debt ratings assigned by Moody’s Investors Service and Standard and Poor’s ranging from 0.655% to 1.225%. The 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 December 30, 2023, the Company met this covenant by a significant margin. The bank facilities specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default. The Company also has the ability to issue up to $500 million of letters of credit under the facility expiring in March 2027, which if utilized, reduces available borrowings under this facility. As of December 30, 2023, the Company has $1.7 billion of outstanding letters of credit, of which none were issued under this facility.

Cruise Ship Credit Facilities

The Company has credit facilities to finance a significant portion of the contract price of two new cruise ships, which are scheduled to be delivered in fiscal 2025 and fiscal 2026. Under the facilities, $1.1 billion became available beginning in August 2023 and $1.1 billion is available beginning in August 2024. Each tranche of financing may be utilized within a period of 18 months from the initial availability date. If utilized, the interest rates will be fixed at 3.80% and 3.74%, respectively, and the loan and interest will be payable semi-annually over a 12-year period from the borrowing date. Early repayment is permitted subject to cancellation fees.

Interest expense, net

Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 9) are reported net in the Condensed Consolidated Statements of Income and consist of the following:


	Quarter Ended
	December 30, 2023		December 31, 2022
Interest expense	$	(528)	$	(465)
Interest and investment income	182		79
Net periodic pension and postretirement benefit costs (other than service costs)	100		86
Interest expense, net	$	(246)	$	(300)

Interest and investment income includes gains and losses on certain publicly traded and non-public investments, investment impairments and interest earned on cash and cash equivalents and certain receivables.