Disney 10-Q: Credit Facility Details and Debt Ratings
Ticker: DIS · Form: 10-Q · Filed: Feb 5, 2025 · CIK: 1744489
Sentiment: neutral
Topics: credit-facility, debt-ratings, interest-rates
TL;DR
Disney's credit facilities have variable rates tied to SOFR + 0.655%-1.225% spread based on debt ratings.
AI Summary
The Walt Disney Co. filed a 10-Q for the period ending December 28, 2024. The filing details their credit facilities, which allow for borrowings based on SOFR and other variable rates, with fixed spreads ranging from 0.655% to 1.225% depending on their debt ratings from Moody's and S&P Global Ratings. The company's fiscal year ends on September 27.
Why It Matters
This filing provides insight into Disney's borrowing costs and financial flexibility, which can impact its ability to fund operations and future projects.
Risk Assessment
Risk Level: low — The filing primarily details existing credit facilities and does not report significant new risks or negative financial developments.
Key Numbers
- 0.655% to 1.225% — Debt Spread (Varies with company's debt ratings)
Key Players & Entities
- Walt Disney Co (company) — Filer of the 10-Q
- Secured Overnight Financing Rate (SOFR) (financial_instrument) — Benchmark rate for borrowings
- Moody's Ratings (company) — Debt rating agency
- S&P Global Ratings (company) — Debt rating agency
- 0.655% (dollar_amount) — Minimum fixed spread on borrowings
- 1.225% (dollar_amount) — Maximum fixed spread on borrowings
- 20241228 (date) — End of reporting period
FAQ
What is the reporting period for this 10-Q filing?
The reporting period for this 10-Q filing is for the period ending December 28, 2024.
What are the primary interest rate benchmarks mentioned for Disney's credit facilities?
The primary interest rate benchmarks mentioned are the Secured Overnight Financing Rate (SOFR) and other variable rates for non-U.S. dollar denominated borrowings.
What is the range of the fixed spread on Disney's borrowings?
The fixed spread ranges from 0.655% to 1.225%, varying with the company's debt ratings.
Which agencies provide debt ratings that affect Disney's borrowing costs?
Moody's Ratings and S&P Global Ratings provide the debt ratings that affect Disney's borrowing costs.
When does The Walt Disney Co.'s fiscal year end?
The Walt Disney Co.'s fiscal year ends on September 27.
Filing Stats: 4,645 words · 19 min read · ~15 pages · Grade level 20 · Accepted 2025-02-05 06:43:16
Key Financial Figures
- $0.01 — ange on which registered Common Stock, $0.01 par value DIS New York Stock Exchange
Filing Documents
- dis-20241228.htm (10-Q) — 2112KB
- fy2025_q1x10qxex101.htm (EX-10.1) — 30KB
- fy2025_q1x10qxex102.htm (EX-10.2) — 71KB
- fy2025_q1x10qxex103.htm (EX-10.3) — 71KB
- fy2025_q1x10qxex22.htm (EX-22) — 3KB
- fy2025_q1x10qxex31a.htm (EX-31.A) — 12KB
- fy2025_q1x10qxex31b.htm (EX-31.B) — 12KB
- fy2025_q1x10qxex32a.htm (EX-32.A) — 5KB
- fy2025_q1x10qxex32b.htm (EX-32.B) — 6KB
- dis-20241228_g1.jpg (GRAPHIC) — 70KB
- 0001744489-25-000067.txt ( ) — 11475KB
- dis-20241228.xsd (EX-101.SCH) — 67KB
- dis-20241228_cal.xml (EX-101.CAL) — 78KB
- dis-20241228_def.xml (EX-101.DEF) — 475KB
- dis-20241228_lab.xml (EX-101.LAB) — 780KB
- dis-20241228_pre.xml (EX-101.PRE) — 601KB
- dis-20241228_htm.xml (XML) — 2006KB
Financial Statements
ITEM 1. Financial Statements 3
Management ' s Discussion and Analysis of Financial Condition and Results of Operations
ITEM 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 28
Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 53
Controls and Procedures
ITEM 4. Controls and Procedures 53 PART II
Legal Proceedings
ITEM 1. Legal Proceedings 54
Risk Factors
ITEM 1A. Risk Factors 54
Unregistered Sales of Equity Securities and Use of Proceeds
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 55
Other Items
ITEM 5. Other Items 56
Exhibits
ITEM 6. Exhibits 57 SIGNATURE 58 Cautionary Note on Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may include statements concerning, among other things, financial results; business plans (including statements regarding new services and products and future expenditures, costs and investments); future liabilities and other obligations; impairments and amortization; estimates of the financial impact of certain items, accounting treatment, events or circumstances; competition and seasonality on our businesses and results of operations; and capital allocation, including share repurchases and dividends. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "would," "should," "expects," "plans," "could," "intends," "target," "projects," "forecasts," "believes," "estimates," "anticipates," "potential," "continue," "assumption" or "judgment" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These statements reflect our current views with respect to future events and are based on assumptions as of the date of this report. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations), our execu
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
: Financial Statements
Item 1: Financial Statements THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited; in millions, except per share data) Quarter Ended December 28, 2024 December 30, 2023 Revenues: Services $ 22,048 $ 20,975 Products 2,642 2,574 Total revenues 24,690 23,549 Costs and expenses: Cost of services (exclusive of depreciation and amortization) ( 13,789 ) ( 13,922 ) Cost of products (exclusive of depreciation and amortization) ( 1,617 ) ( 1,665 ) Selling, general, administrative and other ( 3,930 ) ( 3,783 ) Depreciation and amortization ( 1,276 ) ( 1,243 ) Total costs and expenses ( 20,612 ) ( 20,613 ) Restructuring and impairment charges ( 143 ) — Interest expense, net ( 367 ) ( 246 ) Equity in the income of investees 92 181 Income before income taxes 3,660 2,871 Income taxes ( 1,016 ) ( 720 ) Net income 2,644 2,151 Net income attributable to noncontrolling interests ( 90 ) ( 240 ) Net income attributable to The Walt Disney Company (Disney) $ 2,554 $ 1,911 Earnings per share attributable to Disney: Diluted $ 1.40 $ 1.04 Basic $ 1.41 $ 1.04 Weighted average number of common and common equivalent shares outstanding: Diluted 1,818 1,835 Basic 1,812 1,832 See Notes to Condensed Consolidated Financial Statements 3 THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited; in millions) Quarter Ended December 28, 2024 December 30, 2023 Net income $ 2,644 $ 2,151 Other comprehensive income (loss), net of tax: Market value adjustments for hedges 362 ( 319 ) Pension and postretirement medical plan adjustments 25 ( 21 ) Foreign currency translation and other 552 174 Other comprehensive income (loss) 939 ( 166 ) Comprehensive income 3,583 1,985 Net income attributable to noncontrolling interests ( 90 ) ( 240 ) Other comprehensive income (loss) attributable to noncontrolling interests 72 ( 44 ) Comprehensive income attributable to Disney $ 3,565 $ 1,701 See