Walt Disney Co (DIS): restructuring charge — Disney records $1.5B impairment charge from removing content from DTC services

Walt Disney Co

Impairment charge of $1.5 billion to adjust carrying value of produced content removed from DTC platforms.
Additional impairment charges of up to $0.4 billion anticipated for further content removals in Q3 fiscal 2023.
No material cash expenditures expected from produced content impairments; licensed content may incur cash payments.
Strategic shift in content curation driving removal; review ongoing for additional platforms.
Potential termination of license agreements could lead to further impairment and contract termination charges.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Walt Disney Co announced a impairment with charges of a $1.5 billion impairment charge affecting direct-to-consumer services.

Type: impairment
Charge: a $1.5 billion impairment charge
Affected area: direct-to-consumer services

Exact text from the filing

On May 26, 2023, the Company removed certain produced content from its DTC services. As a result, the Company will record a $1.5 billion impairment charge in its fiscal third quarter financial statements to adjust the carrying value of these content assets to fair value.

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.7

Walt Disney Co announced a impairment with charges of up to approximately $0.4 billion affecting DTC and other platforms.

Type: impairment
Charge: up to approximately $0.4 billion
Affected area: DTC and other platforms

Exact text from the filing

The Company is continuing its review and currently anticipates additional produced content will be removed from its DTC and other platforms, largely during the remainder of its third fiscal quarter. As a result, the Company currently estimates it may incur further impairment charges of up to approximately $0.4 billion related to produced content.

View on SEC.gov

Browse all restructurings & charges →

Walt Disney Co filing history →

Source: SEC EDGAR

accession 0001744489-23-000107

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.