Disney's 10-Q: Debt Facilities and Ratings Impact
Ticker: DIS · Form: 10-Q · Filed: 2024-08-07T00:00:00.000Z
Sentiment: neutral
Topics: debt, financing, credit-rating
TL;DR
Disney's debt rates tied to credit ratings, spreads range from 0.655%-1.225%.
AI Summary
The Walt Disney Co. filed its 10-Q for the period ending June 29, 2024, reporting on its financial performance. The filing details various debt facilities, including those with rates based on SOFR and other variable rates, with fixed spreads tied to Moody's and Standard & Poor's debt ratings, ranging from 0.655% to 1.225%. Specific maturity dates for these facilities extend to 2036.
Why It Matters
This filing provides insight into Disney's debt structure and how its credit ratings directly influence borrowing costs, impacting overall financial flexibility and profitability.
Risk Assessment
Risk Level: medium — The company's reliance on variable interest rates and the impact of credit ratings on borrowing costs introduce financial risk.
Key Numbers
- 0.655% — Minimum Debt Spread (Lowest spread based on top debt ratings)
- 1.225% — Maximum Debt Spread (Highest spread based on lower debt ratings)
- 2036 — Longest Debt Maturity (Indicates long-term financial obligations)
Key Players & Entities
- Walt Disney Co. (company) — Filer of the 10-Q
- Secured Overnight Financing Rate (SOFR) (dollar_amount) — Benchmark for borrowing rates
- Moody's Investors Service (company) — Credit rating agency influencing debt spread
- Standard and Poor's (company) — Credit rating agency influencing debt spread
- 0.655% (dollar_amount) — Minimum fixed spread on debt
- 1.225% (dollar_amount) — Maximum fixed spread on debt
- 2036 (dollar_amount) — Maturity year for some debt facilities
FAQ
What is the range of fixed spreads on Walt Disney Co.'s variable rate debt?
The fixed spread varies with the Company's debt ratings, ranging from 0.655% to 1.225%.
Which credit rating agencies influence Disney's borrowing costs?
Moody's Investors Service and Standard and Poor's debt ratings influence the company's borrowing costs.
What is the reporting period for this 10-Q filing?
The filing is for the period ended June 29, 2024.
What is the benchmark rate for some of Disney's borrowings?
Some facilities allow for borrowings at rates based on the Secured Overnight Financing Rate (SOFR).
What is the latest maturity date mentioned for the company's debt facilities?
Some debt facilities have maturity dates extending to December 31, 2036.
From the Filing
0001744489-24-000232.txt : 20240807 0001744489-24-000232.hdr.sgml : 20240807 20240807065411 ACCESSION NUMBER: 0001744489-24-000232 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 104 CONFORMED PERIOD OF REPORT: 20240629 FILED AS OF DATE: 20240807 DATE AS OF CHANGE: 20240807 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: 241181349 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-20240629.htm FORM 10-Q dis-20240629 false 2024 Q3 WALT DISNEY CO/ 0001744489 --09-28 0.01 0.01 4.6 4.6 1.9 1.8 1.9 1.8 42 19 90 169 90 169 101 101 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 http://corporate.disney.go.com/20240629#HIBORMember http://corporate.disney.go.com/20240629#HIBORMember 2025-09-30 2028-12-31 2036-12-31 2036-12-31 5 10 4 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure iso4217:HKD iso4217:CNY iso4217:CAD 0001744489 2023-10-01 2024-06-29 0001744489 2024-07-31 0001744489 us-gaap:ServiceMember 2024-03-31 2024-06-29 0001744489 us-gaap:ServiceMember 2023-04-02 2023-07-01 0001744489 us-gaap:ServiceMember 2023-10-01 2024-06-29 0001744489 us-gaap:ServiceMember 2022-10-02 2023-07-01 0001744489 us-gaap:ProductMember 2024-03-31 2024-06-29 0001744489 us-gaap:ProductMember 2023-04-02 2023-07-01 0001744489 us-gaap:ProductMember 2023-10-01 2024-06-29 0001744489 us-gaap:ProductMember 2022-10-02 2023-07-01 0001744489 2024-03-31 2024-06-29 0001744489 2023-04-02 2023-07-01 0001744489 2022-10-02 2023-07-01 0001744489 2024-06-29 0001744489 2023-09-30 0001744489 2022-10-01 0001744489 2023-07-01 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:RetainedEarningsMember 2024-03-31 2024-06-29 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 2024-06-29 0001744489 us-gaap:ParentMember 2024-03-31 2024-06-29 0001744489 us-gaap:NoncontrollingInterestMember 2024-03-31 2024-06-29 0001744489 dis:TotalexcludingredeemablenoncontrollinginterestMember 2024-03-31 2024-06-29 0001744489 us-gaap:CommonStockMember 2024-03-31 2024-06-29 0001744489 us-gaap:TreasuryStockCommonMember 2024-03-31 2024-06-29 0001744489 us-gaap:CommonStockMember 2024-06-29 0001744489 us-gaap:RetainedEarningsMember 2024-06-29 0001744489 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-29 0001744489 us-gaap:TreasuryStockCommonMember 2024-06-29 0001744489 us-gaap:ParentMember 2024-06-29 0001744489 us-gaap:NoncontrollingInterestMember 2024-06-29 0001744489 dis:TotalexcludingredeemablenoncontrollinginterestMember 2024-06-29 0001744489 us-gaap:CommonStockMember 2023-04-01 0001744489 us-gaap:RetainedEarningsMember 2023-04-01 0001744489 us-gaap:AccumulatedOtherComprehensi