v3.25.2
Income Taxes
 9 Months Ended
Jun. 28, 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 June 28, 2025 and September 28, 2024 were as follows:
June 28,
2025		September 28,
2024
Deferred tax assets
Net operating losses and tax credit carryforwards(1)
$(3,397) $(3,444) 
Accrued liabilities(1,136) (1,199) 
Licensing revenues(900) (130) 
Lease liabilities(788) (862) 
Other(511) (655) 
Total deferred tax assets(6,732) (6,290) 
Deferred tax liabilities
Depreciable, amortizable and other property4,070  6,584  
Investment in U.S. entities
859  1,102  
Investment in foreign entities701  465  
Right-of-use lease assets
641  692  
Other98  78  
Total deferred tax liabilities6,369  8,921  
Net deferred tax (asset) liability before valuation allowance(2)
(363) 2,631  
Valuation allowance2,903  2,991  
Net deferred tax liability$2,540  $5,622  
(1)Further details on our net operating losses and tax credit carryforwards are as follows:
June 28, 2025
International Theme Park net operating losses
$(1,522) 
U.S. foreign tax credits(928) 
State net operating losses and tax credit carryforwards(595) 
Other(352) 
Total net operating losses and tax credit carryforwards(a)
$(3,397) 
(a)    Approximately $2.1 billion of these carryforwards do not expire. Approximately $1.2 billion expire between fiscal 2026 and fiscal 2035, primarily related to U.S. foreign tax credits.
(2) In the third quarter of the current fiscal year, the Company completed the acquisition of NBCU’s interest in Hulu. At the close of the transaction, Hulu’s U.S. income tax classification changed, and the Company recognized 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 $0.8 billion, from $2.0 billion at September 28, 2024 to $1.2 billion at June 28, 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 $0.3 billion.
U.S. Legislation
In July 2025, legislation known as “One Big Beautiful Bill Act” was signed into law. The most significant tax impact on the Company will be acceleration of tax deductions on investments in fixed assets placed in service and content produced in the U.S., which will result in lower tax payments in the year of investment than would have otherwise occurred under the previous legislation. The cash tax benefit will begin to be realized in fiscal 2026 as U.S. federal and California state income tax payments otherwise due in fiscal 2025 have been deferred pursuant to relief related to the 2025 wildfires in California. We do not expect a material impact on the Company’s income tax expense.