v3.23.1
Revenues
 6 Months Ended
Apr. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer Revenues
The following table presents our revenues by segment and major source:
Quarter Ended April 1, 2023Quarter Ended April 2, 2022
DMEDDPEPTotalDMEDDPEPContent License Early TerminationTotal
Affiliate fees$4,394$— $4,394 $4,602 $— $— $4,602 
Subscription fees4,605— 4,605 3,887 — — 3,887 
Advertising2,5631 2,564 3,023 1 — 3,024 
Theme park admissions—2,428 2,428 — 1,973 — 1,973 
Resort and vacations—1,949 1,949 — 1,451 — 1,451 
Retail and wholesale sales of merchandise, food and beverage—2,142    2,142    —    1,816 — 1,816 
Merchandise licensing—772 772 — 893 — 893 
TV/SVOD distribution licensing1,033— 1,033 1,124 —    (1,023)   101    
Theatrical distribution licensing767— 767 224 — — 224 
Home entertainment148— 148 230 — — 230 
Other529484 1,013 530 518 — 1,048 
$14,039$7,776 $21,815 $13,620 $6,652 $(1,023)$19,249 
Six Months Ended April 1, 2023Six Months Ended April 2, 2022
DMEDDPEPTotalDMEDDPEPContent License Early TerminationTotal
Affiliate fees$8,636$— $8,636 $8,973 $— $— $8,973 
Subscription fees8,845— 8,845 7,485 — — 7,485 
Advertising6,0052 6,007 6,891 2 — 6,893 
Theme park admissions—5,0695,069 — 4,125 — 4,125 
Resort and vacations—3,9293,929 — 2,896 — 2,896 
Retail and wholesale sales of merchandise, food and beverage—4,5244,524 —    3,905 — 3,905 
Merchandise licensing—1,9151,915 — 2,012 — 2,012 
TV/SVOD distribution licensing2,012—2,012 2,520 —    (1,023)   1,497 
Theatrical distribution licensing1,907—1,907 753 — — 753 
Home entertainment283—283 524 — — 524 
Other1,1271,0732,200 1,059 946 — 2,005 
$28,815$16,512$45,327 $28,205 $13,886 $(1,023)$41,068 
    
The following table presents our revenues by segment and primary geographical markets:
Quarter Ended April 1, 2023Quarter Ended April 2, 2022
DMEDDPEPTotalDMEDDPEPTotal
Americas$11,525 $6,105 $17,630 $11,191 $5,559 $16,750 
Europe1,447    744    2,191    1,343    627    1,970    
Asia Pacific1,067 927 1,994 1,086 466 1,552 
Total revenues$14,039 $7,776 $21,815 $13,620 $6,652 $20,272 
Content License Early Termination(1,023)
$19,249 
Six Months Ended April 1, 2023Six Months Ended April 2, 2022
DMEDDPEPTotalDMEDDPEPTotal
Americas$23,543 $13,058 $36,601 $23,021 $11,270 $34,291 
Europe3,021    1,810    4,831    2,881    1,492    4,373    
Asia Pacific2,251 1,644 3,895 2,303 1,124 3,427 
Total revenues$28,815 $16,512 $45,327 $28,205 $13,886 $42,091 
Content License Early Termination(1,023)
$41,068 
Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on TV/SVOD licenses for titles made available to the licensee in previous reporting periods. For the quarter ended April 1, 2023, $0.7 billion was recognized related to performance obligations satisfied as of December 31, 2022. For the six months ended April 1, 2023, $0.5 billion was recognized related to performance obligations satisfied as of October 1, 2022. For the quarter ended April 2, 2022, $0.4 billion was recognized related to performance obligations satisfied as of January 1, 2022. For the six months ended April 2, 2022, $0.7 billion was recognized related to performance obligations satisfied as of October 2, 2021.
As of April 1, 2023, revenue for unsatisfied performance obligations expected to be recognized in the future is $16 billion, primarily for content and other IP to be made available in the future under existing agreements with merchandise and co-branding licensees and sponsors, television station affiliates, DTC wholesalers, sports sublicensees, and advertisers. Of this amount, we expect to recognize approximately $3 billion in the remainder of fiscal 2023, $5 billion in fiscal 2024, $4 billion in fiscal 2025 and $4 billion thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less (such as most advertising contracts) or (ii) licenses of IP that are solely based on the sales of the licensee.
When the timing of the Company’s revenue recognition is different from the timing of customer payments, the Company recognizes either a contract asset (customer payment is subsequent to revenue recognition and subject to the Company satisfying additional performance obligations) or deferred revenue (customer payment precedes the Company satisfying the performance obligations). Consideration due under contracts with payment in arrears is recognized as accounts receivable. Deferred revenues are recognized as (or when) the Company performs under the contract. The Company’s contract assets and activity for the current and prior-year periods were not material.
Accounts receivable and deferred revenues from contracts with customers are as follows:
April 1,
2023		October 1,
2022
Accounts receivable
Current$11,189   $10,886   
Non-current1,153 1,226 
Allowance for credit losses(164)(179)
Deferred revenues
Current5,750 5,531 
Non-current870 927 
For the quarter and six months ended April 1, 2023, the Company recognized revenue of $0.9 billion and $4.3 billion, respectively, that was included in the October 1, 2022 deferred revenue balance. For the quarter and six months ended April 2, 2022, the Company recognized revenue of $0.9 billion and $2.8 billion, respectively, that was included in the October 2, 2021
deferred revenue balance. Amounts deferred generally relate to theme park admissions and vacation packages, DTC subscriptions and advances related to merchandise and TV/SVOD licenses.
We evaluate our allowance for credit losses and estimate collectability of current and non-current 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. In times of economic turmoil, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods.
The Company has accounts receivable with original maturities greater than one year related to the sale of film and television program rights (TV/SVOD licensing) and vacation club properties. These receivables are discounted to present value at contract inception and the related revenues are recognized at the discounted amount. The balance of TV/SVOD licensing receivables recorded in other non-current assets was $0.5 billion at April 1, 2023 and $0.6 billion at October 1, 2022. The balance of vacation club receivables recorded in other non-current assets was $0.6 billion at both April 1, 2023 and October 1, 2022. The allowance for credit losses and activity for the period ended April 1, 2023 was not material.