v3.24.3
Leases
 12 Months Ended
Sep. 28, 2024
Leases [Abstract]  
Leases Leases
The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, cruise terminals, retail outlets and distribution centers for consumer products. The Company also has finance leases, primarily for broadcast equipment and land.
Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of September 28, 2024, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 35 years. The weighted-average incremental borrowing rate is 4.0% and 6.7%, for our operating leases and finance leases, respectively. At September 28, 2024, total estimated future lease payments for non-cancelable lease agreements that have not commenced are not material.
The Company’s operating and finance right-of-use assets and lease liabilities are as follows:
September 28, 2024September 30, 2023
Right-of-use assets(1)
Operating leases$3,376  $4,211  
Finance leases246  291  
Total right-of-use assets3,622  4,502  
Short-term lease liabilities(2)
Operating leases744  740  
Finance leases30  37  
774  777  
Long-term lease liabilities(3)
Operating leases2,768  3,258  
Finance leases160  206  
2,928  3,464  
Total lease liabilities$3,702  $4,241  
(1)Included in “Other assets” in the Consolidated Balance Sheet.
(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.
(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.
The components of lease costs are as follows:
202420232022
Finance lease cost
Amortization of right-of-use assets$36  $39 $39 
Interest on lease liabilities13  15 15 
Operating lease cost 926  820 796 
Variable fees and other(1)
555  444 363 
Total lease cost$1,530  $1,318  $1,213  
(1)Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:
202420232022
Operating cash flows for operating leases $876  $714  $736  
Operating cash flows for finance leases 13  15  15  
Financing cash flows for finance leases 44  41  48  
Total$933  $770  $799  
Future minimum lease payments, as of September 28, 2024, are as follows:
OperatingFinancing
Fiscal Year:
2025$863  $43  
2026602  31  
2027472  26  
2028400  22  
2029349  12  
Thereafter1,978  336  
Total undiscounted future lease payments4,664  470  
Less: Imputed interest(1,152) (280) 
Total reported lease liability$3,512  $190  
Lessor Arrangements
The Company leases certain of its land and buildings to third parties, primarily at its parks and experiences businesses. Lessee payments include fixed amounts for the rental of the property although the vast majority of the payments are variable based on a percentage of lessee sales. Revenues recognized on these leases for fiscal 2024, 2023 and 2022 were $0.6 billion, $0.5 billion and $0.4 billion, respectively.
Leases Leases
The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, cruise terminals, retail outlets and distribution centers for consumer products. The Company also has finance leases, primarily for broadcast equipment and land.
Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of September 28, 2024, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 35 years. The weighted-average incremental borrowing rate is 4.0% and 6.7%, for our operating leases and finance leases, respectively. At September 28, 2024, total estimated future lease payments for non-cancelable lease agreements that have not commenced are not material.
The Company’s operating and finance right-of-use assets and lease liabilities are as follows:
September 28, 2024September 30, 2023
Right-of-use assets(1)
Operating leases$3,376  $4,211  
Finance leases246  291  
Total right-of-use assets3,622  4,502  
Short-term lease liabilities(2)
Operating leases744  740  
Finance leases30  37  
774  777  
Long-term lease liabilities(3)
Operating leases2,768  3,258  
Finance leases160  206  
2,928  3,464  
Total lease liabilities$3,702  $4,241  
(1)Included in “Other assets” in the Consolidated Balance Sheet.
(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.
(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.
The components of lease costs are as follows:
202420232022
Finance lease cost
Amortization of right-of-use assets$36  $39 $39 
Interest on lease liabilities13  15 15 
Operating lease cost 926  820 796 
Variable fees and other(1)
555  444 363 
Total lease cost$1,530  $1,318  $1,213  
(1)Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:
202420232022
Operating cash flows for operating leases $876  $714  $736  
Operating cash flows for finance leases 13  15  15  
Financing cash flows for finance leases 44  41  48  
Total$933  $770  $799  
Future minimum lease payments, as of September 28, 2024, are as follows:
OperatingFinancing
Fiscal Year:
2025$863  $43  
2026602  31  
2027472  26  
2028400  22  
2029349  12  
Thereafter1,978  336  
Total undiscounted future lease payments4,664  470  
Less: Imputed interest(1,152) (280) 
Total reported lease liability$3,512  $190  
Lessor Arrangements
The Company leases certain of its land and buildings to third parties, primarily at its parks and experiences businesses. Lessee payments include fixed amounts for the rental of the property although the vast majority of the payments are variable based on a percentage of lessee sales. Revenues recognized on these leases for fiscal 2024, 2023 and 2022 were $0.6 billion, $0.5 billion and $0.4 billion, respectively.