v3.25.1
Income Taxes
 6 Months Ended
Mar. 29, 2025
Income Tax Disclosure [Abstract]  
Income Tax Disclosure Income Taxes
Deferred Tax Assets and Liabilities
The Company records deferred income tax assets and liabilities with respect to temporary differences in accounting treatment of items for financial reporting purposes and income tax purposes. The Company’s deferred tax assets and liabilities by major category as of March 29, 2025 and September 28, 2024 were as follows:
March 29,
2025		September 28,
2024
Deferred tax assets
Net operating losses and tax credit carryforwards(1)
$(3,230) $(3,444) 
Accrued liabilities(1,033) (1,199) 
Lease liabilities(827) (862) 
Licensing revenues(109) (130) 
Other(512) (655) 
Total deferred tax assets(5,711) (6,290) 
Deferred tax liabilities
Depreciable, amortizable and other property5,965  6,584  
Investment in U.S. entities(2)
1,037  1,102  
Investment in foreign entities759  465  
Right-of-use lease assets
662  692  
Other70  78  
Total deferred tax liabilities8,493  8,921  
Net deferred tax liability before valuation allowance2,782  2,631  
Valuation allowance2,948  2,991  
Net deferred tax liability
$5,730  $5,622  
(1)Further details on our net operating losses and tax credit carryforwards are as follows:
March 29, 2025
International Theme Park net operating losses
$(1,441) 
U.S. foreign tax credits(836) 
State net operating losses and tax credit carryforwards(602) 
Other(351) 
Total net operating losses and tax credit carryforwards(a)
$(3,230) 
(a)    Approximately $2.0 billion of these carryforwards do not expire. Approximately $1.1 billion expire between fiscal 2026 and fiscal 2035, primarily related to U.S. foreign tax credits.
(2)Amounts are, in part, due to the tax status of these entities. In the third quarter of the current fiscal year, the Company expects to complete the acquisition of NBCU’s interest in Hulu. Concurrently, Hulu’s partnership tax status will terminate, and, as a result, the Company expects to recognize a non-cash tax benefit of approximately $3.3 billion.
Valuation Allowance
The Company records deferred income tax assets and liabilities with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of available evidence, it is more likely than not that some amount of recorded deferred tax assets will not be realized, a valuation allowance is established for the amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized.
Unrecognized Tax Benefits
The Company’s gross unrecognized tax benefits (before interest and penalties) decreased $0.9 billion, from $2.0 billion at September 28, 2024 to $1.1 billion at March 29, 2025. In the next twelve months, it is reasonably possible that our
unrecognized tax benefits could change due to resolutions of open tax matters, which would reduce our unrecognized tax benefits by $0.2 billion.