Income Taxes (Tables)

12 Months Ended

Sep. 28, 2024


Income Before Income Taxes	2024		2023		2022

Domestic subsidiaries (including U.S. exports)	$	5,754	$	3,086	$	5,955
Foreign subsidiaries	1,815		1,683		(670)
Total income from continuing operations	7,569		4,769		5,285
Loss from discontinued operations	—		—		(62)
	$	7,569	$	4,769	$	5,223

Income Tax Expense (Benefit)


Income Tax Expense (Benefit)
Current	2024		2023		2022
Federal	$	1,393	$	1,475	$	436
State	237		402		282
Foreign, including foreign withholding taxes	973		867		846
	2,603		2,744		1,564
Deferred
Federal	(764)		(1,180)		407
State	54		4		26
Foreign	(97)		(189)		(265)
	(807)		(1,365)		168
Income tax expense on income from continuing operations	1,796		1,379		1,732
Income tax expense on loss from discontinued operations	—		—		(14)
	$	1,796	$	1,379	$	1,718

Schedule of Deferred Tax Assets and Liabilities


Components of Deferred Tax (Assets) and Liabilities	September 28, 2024		September 30, 2023

Deferred tax assets
Net operating losses and tax credit carryforwards(1)	$	(3,444)	$	(3,841)
Accrued liabilities	(1,199)		(1,335)
Lease liabilities	(862)		(852)
Licensing revenues	(130)		(115)
Other	(655)		(623)
Total deferred tax assets	(6,290)		(6,766)
Deferred tax liabilities
Depreciable, amortizable and other property	6,584		7,581
Investment in U.S. entities(2)	1,102		1,271
Right-of-use lease assets	692		751

Investment in foreign entities	465		482

Other	78		81
Total deferred tax liabilities	8,921		10,166
Net deferred tax liability before valuation allowance	2,631		3,400
Valuation allowance	2,991		3,187
Net deferred tax liability	$	5,622	$	6,587

(1)Further details on our net operating losses and tax credit carryforwards are as follows:


	September 28, 2024
International Theme Park net operating losses	$	1,530
U.S. foreign tax credits	822
State net operating losses and tax credit carryforwards	533
Other	559
Total net operating losses and tax credit carryforwards(a)	$	3,444

(a) Approximately $2.2 billion of these credits do not expire. Approximately $1.1 billion expire between fiscal 2026 and fiscal 2034, primarily consisting of U.S. foreign tax credits.

(2)Amounts are, in part, due to the tax status of these entities and if the tax status of certain legal entities changes, a significant portion of this balance may reverse.

Summary of Net Operating Loss and Tax Credit Carryforwards

Further details on our net operating losses and tax credit carryforwards are as follows:


	September 28, 2024
International Theme Park net operating losses	$	1,530
U.S. foreign tax credits	822
State net operating losses and tax credit carryforwards	533
Other	559
Total net operating losses and tax credit carryforwards(a)	$	3,444

(a) Approximately $2.2 billion of these credits do not expire. Approximately $1.1 billion expire between fiscal 2026 and fiscal 2034, primarily consisting of U.S. foreign tax credits.

Summary of Valuation Allowance

The following table details the change in valuation allowance for fiscal 2024, 2023 and 2022 (in billions):


	Balance at Beginning of Period		Increases (Decreases) to Tax Expense		Other Changes		Balance at End of Period
Year ended September 28, 2024	$	3.2	$	(0.3)	$	0.1	$	3.0
Year ended September 30, 2023	2.9		0.2		0.1		3.2
Year ended October 1, 2022	2.8		0.4		(0.3)		2.9

Reconciliation of Effective Income Tax Rate to Federal Rate


	2024		2023		2022
Federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit(1)	2.2		5.8		3.1
Non-tax deductible impairments	8.8		3.5		—
Foreign derived intangible income	(3.6)		(4.3)		(3.4)
Income tax audits and reserves	(2.4)		1.3		2.7
Tax rate differential on foreign income	(1.6)		0.1		4.3
U.S. research and development credits	(1.1)		(1.1)		(0.6)
Tax impact of equity awards	0.8		2.1		—
Valuation allowance	(0.6)		(1.8)		4.5
Legislative changes	—		—		1.7
Other	0.2		2.3		(0.5)
	23.7	%	28.9	%	32.8	%

(1)Fiscal 2023 includes an adjustment related to certain deferred state taxes

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest and penalties, is as follows:


	2024		2023		2022
Balance at the beginning of the year	$	2,517	$	2,449	$	2,641

Increases for current year tax positions	82		98		48
Increases for prior year tax positions	209		273		103
Decreases in prior year tax positions	(423)		(144)		(98)
Settlements with taxing authorities	(239)		(153)		(235)
Lapse in statute of limitations	(194)		(6)		(10)
Balance at the end of the year	$	1,952	$	2,517	$	2,449