Disney's 10-Q: Debt Facilities and Interest Rate Spreads

TL;DR

Disney's debt rates vary with credit ratings, from 0.655% to 1.225% spread over SOFR.

AI Summary

The Walt Disney Company filed its 10-Q for the period ending March 30, 2024. The company's credit facilities allow for borrowings based on SOFR and other variable rates, with fixed spreads ranging from 0.655% to 1.225% depending on debt ratings from Moody's and Standard & Poor's. Key dates for these facilities include February 27, 2025, March 31, 2027, and March 31, 2029.

Why It Matters

This filing provides insight into Disney's debt structure and the potential cost of borrowing, which can impact profitability and investment capacity.

Risk Assessment

Risk Level: medium — The company's reliance on variable rates and credit rating-dependent spreads introduces financial risk related to interest rate fluctuations and creditworthiness.

Key Numbers

• 0.655% — Minimum Interest Spread (Lowest fixed spread on borrowings tied to debt ratings.)
• 1.225% — Maximum Interest Spread (Highest fixed spread on borrowings tied to debt ratings.)
• 2025-02-27 — Facility Maturity Date (One of the maturity dates mentioned for credit facilities.)

Key Players & Entities

• Walt Disney Company (company) — Filer of the 10-Q
• Moody's Investors Service (company) — Credit rating agency
• Standard and Poor's (company) — Credit rating agency
• 0.655% (dollar_amount) — Minimum fixed spread on borrowings
• 1.225% (dollar_amount) — Maximum fixed spread on borrowings
• March 30, 2024 (date) — End of reporting period

FAQ

From the Filing

0001744489-24-000152.txt : 20240507 0001744489-24-000152.hdr.sgml : 20240507 20240507090119 ACCESSION NUMBER: 0001744489-24-000152 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 103 CONFORMED PERIOD OF REPORT: 20240330 FILED AS OF DATE: 20240507 DATE AS OF CHANGE: 20240507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Walt Disney Co CENTRAL INDEX KEY: 0001744489 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] ORGANIZATION NAME: 07 Trade & Services IRS NUMBER: 830940635 STATE OF INCORPORATION: DE FISCAL YEAR END: 0928 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38842 FILM NUMBER: 24919845 BUSINESS ADDRESS: STREET 1: 500 SOUTH BUENA VISTA STREET CITY: BURBANK STATE: CA ZIP: 91521 BUSINESS PHONE: (818) 560-1000 MAIL ADDRESS: STREET 1: 500 SOUTH BUENA VISTA STREET CITY: BURBANK STATE: CA ZIP: 91521 FORMER COMPANY: FORMER CONFORMED NAME: TWDC Holdco 613 Corp. DATE OF NAME CHANGE: 20180702 FORMER COMPANY: FORMER CONFORMED NAME: TWDC Holdco 613 Corp DATE OF NAME CHANGE: 20180622 10-Q 1 dis-20240330.htm FORM 10-Q dis-20240330 false 2024 Q2 WALT DISNEY CO/ 0001744489 --09-28 0.01 0.01 4.6 4.6 1.9 1.8 1.9 1.8 27 19 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%. 0.655 1.225 2025-02-27 2027-03-31 2029-03-31 2025-09-30 2028-12-31 2036-12-31 2036-12-31 5 10 4 0001744489 2023-10-01 2024-03-30 0001744489 2024-05-01 xbrli:shares 0001744489 us-gaap:ServiceMember 2023-12-31 2024-03-30 iso4217:USD 0001744489 us-gaap:ServiceMember 2023-01-01 2023-04-01 0001744489 us-gaap:ServiceMember 2023-10-01 2024-03-30 0001744489 us-gaap:ServiceMember 2022-10-02 2023-04-01 0001744489 us-gaap:ProductMember 2023-12-31 2024-03-30 0001744489 us-gaap:ProductMember 2023-01-01 2023-04-01 0001744489 us-gaap:ProductMember 2023-10-01 2024-03-30 0001744489 us-gaap:ProductMember 2022-10-02 2023-04-01 0001744489 2023-12-31 2024-03-30 0001744489 2023-01-01 2023-04-01 0001744489 2022-10-02 2023-04-01 iso4217:USD xbrli:shares 0001744489 2024-03-30 0001744489 2023-09-30 0001744489 2022-10-01 0001744489 2023-04-01 0001744489 us-gaap:CommonStockMember 2023-12-30 0001744489 us-gaap:RetainedEarningsMember 2023-12-30 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-30 0001744489 us-gaap:TreasuryStockCommonMember 2023-12-30 0001744489 us-gaap:ParentMember 2023-12-30 0001744489 us-gaap:NoncontrollingInterestMember 2023-12-30 0001744489 dis:TotalexcludingredeemablenoncontrollinginterestMember 2023-12-30 0001744489 us-gaap:RetainedEarningsMember 2023-12-31 2024-03-30 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 2024-03-30 0001744489 us-gaap:ParentMember 2023-12-31 2024-03-30 0001744489 us-gaap:NoncontrollingInterestMember 2023-12-31 2024-03-30 0001744489 dis:TotalexcludingredeemablenoncontrollinginterestMember 2023-12-31 2024-03-30 0001744489 us-gaap:CommonStockMember 2023-12-31 2024-03-30 0001744489 us-gaap:TreasuryStockCommonMember 2023-12-31 2024-03-30 0001744489 us-gaap:CommonStockMember 2024-03-30 0001744489 us-gaap:RetainedEarningsMember 2024-03-30 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-30 0001744489 us-gaap:TreasuryStockCommonMember 2024-03-30 0001744489 us-gaap:ParentMember 2024-03-30 0001744489 us-gaap:NoncontrollingInterestMember 2024-03-30 0001744489 dis:TotalexcludingredeemablenoncontrollinginterestMember 2024-03-30 0001744489 us-gaap:CommonStockMember 2022-12-31 0001744489 us-gaap:RetainedEarningsMember 2022-12-31 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001744489 us-gaap:TreasuryStockCommonMember 2022-12-31 0001744489 us-gaap:ParentMember 2022-12-31 0001744489 us-gaap:NoncontrollingInterestMember 2