View Filing Data

$ 1,039

$ 958

$ 963

$ 1,045

$ 917

$ 825

$ 917

$ 4,005

$ 3,576

$ 3,246

(583)

(531)

(488)

(569)

(501)

(519)

(415)

(496)

(2,171)

(1,931)

(1,707)

(398)

^[1]

(343)

^[1]

(337)

^[1]

(333)

^[1]

(368)

^[2]

(296)

^[2]

(282)

^[2]

(276)

^[2]

(1,411)

^[3]

(1,222)

^[3]

(1,082)

^[3]

(42)

(56)

(55)

(53)

(49)

(51)

(50)

(51)

(206)

(201)

(243)

(1,023)

(930)

(880)

(955)

(918)

(866)

(747)

(823)

(3,788)

(3,354)

(3,032)

(1)

217

222

214

(7)

(23)

(1)

(3)

(32)

(31)

(35)

(18)

Interest expense, net

(33)

(36)

(37)

(36)

(40)

(138)

(149)

(173)

Other income (expense)

394

(6)

(19)

(21)

(19)

394

(40)

(15)

382

(57)

(9)

442

(2)

(61)

(19)

(52)

152

(3)

(17)

(130)

151

(11)

Less: Income attributable to noncontrolling interest

312

149

(1)

(2)

(1)

(2)

(1)

(2)

(5)

(6)

(5)

Net income attributable to Warner Music Group Corp.

$ (14)

$ 320

$ (3)

$ 4

$ (39)

$ 141

$ 19

$ 22

$ 307

$ 143

$ 25

[1]	(a) Includes depreciation expense of: $(14) $(15) $(14) $(12)
[2]	(a) Includes depreciation expense of: $(12) $(13) $(13) $(12)
[3]	(a) Includes depreciation expense of: $(55) $(50) $(50)

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Depreciation expense	$ (14)	$ (15)	$ (14)	$ (12)	$ (12)	$ (13)	$ (13)	$ (12)	$ (55)	$ (50)	$ (50)

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 312	$ 149	$ 30
Other comprehensive (loss) income, net of tax
Foreign currency adjustment	(13)	30	(44)
Deferred gains on derivative financial instruments	3
Minimum pension liability	1	7	(7)
Other comprehensive (loss) income, net of tax	(9)	37	(51)
Total comprehensive income (loss)	303	186	(21)
Less: Income attributable to noncontrolling interest	(5)	(6)	(5)
Comprehensive income (loss) attributable to Warner Music Group Corp.	$ 298	$ 180	$ (26)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 312	$ 149	$ 30
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	261	251	293
Unrealized losses and remeasurement of foreign denominated loans	(3)	24
Deferred income taxes	66	(192)	(26)
Loss on extinguishment of debt	31	35	18
Net (gain) loss on investments	(389)	17	(9)
Gain on sale of real estate			(24)
Non-cash interest expense	6	8	11
Equity-based compensation expense	62	70	23
Changes in operating assets and liabilities:
Accounts receivable	(43)	(60)	17
Inventories	(3)	1
Royalty advances	31	17	(13)
Accounts payable and accrued liabilities	82	48	23
Royalty payables	22	136	49
Accrued interest	(10)	3	(20)
Deferred revenue	(4)	22	(35)
Other balance sheet changes	4	6	5
Net cash provided by operating activities	425	535	342
Cash flows from investing activities
Acquisition of music publishing rights, net	(14)	(16)	(25)
Capital expenditures	(74)	(44)	(42)
Investments and acquisitions of businesses, net	(23)	(139)	(28)
Proceeds from the sale of investments	516	73	45
Proceeds from the sale of real estate			42
Net cash provided by (used in) investing activities	405	(126)	(8)
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility	320	22
Repayment of Acquisition Corp. Senior Term Loan Facility			(309)
Call premiums paid on early redemption of debt	(23)	(27)	(10)
Deferred financing costs paid	(12)	(13)	(4)
Distribution to noncontrolling interest holder	(5)	(5)	(5)
Dividends paid	(925)	(84)
Repayment of capital lease obligations			(14)
Net cash used in financing activities	(955)	(128)	(216)
Effect of exchange rate changes on cash and equivalents	(8)	7	(5)
Net increase in cash and equivalents	(133)	288	113
Cash and equivalents at beginning of period	647	359	246
Cash and equivalents at end of period	514	647	359
4.125% Senior Secured Notes
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp		380
5.50% Senior Notes
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp	325
4.875% Senior Secured Notes
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp		250
5.00% Senior Secured Notes
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp			300
6.00% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes		(450)
6.25% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes		(173)
5.625% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes		$ (28)
13.75% Senior Notes
Cash flows from financing activities
Repayment of Senior Notes			(150)
6.75% Senior Notes
Cash flows from financing activities
Repayment of Senior Secured Notes	$ (635)		$ (24)

Consolidated Statements of Cash Flows (Parenthetical)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
4.125% Senior Secured Notes
Interest rate	4.125%	4.125%	4.125%
4.875% Senior Secured Notes
Interest rate	4.875%	4.875%	4.875%
5.50% Senior Notes
Interest rate	5.50%	5.50%	5.50%
5.00% Senior Secured Notes
Interest rate	5.00%	5.00%	5.00%
6.00% Senior Secured Notes
Interest rate	6.00%	6.00%	6.00%
6.25% Senior Secured Notes
Interest rate	6.25%	6.25%	6.25%
5.625% Senior Secured Notes
Interest rate	5.625%	5.625%	5.625%
13.75% Senior Notes
Interest rate	13.75%	13.75%	13.75%
6.75% Senior Notes
Interest rate	6.75%	6.75%	6.75%

Consolidated Statement of (Deficit) Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Warner Music Group Corp. Equity	Noncontrolling Interest
Beginning balance at Sep. 30, 2015	$ 239		$ 1,128	$ (740)	$ (167)	$ 221	$ 18
Beginning balance, shares at Sep. 30, 2015		1,055
Net income	30			25		25	5
Other comprehensive (loss) income, net of tax	(51)				(51)	(51)
Disposal of noncontrolling interest related to divestiture	(3)						(3)
Distribution to noncontrolling interest holders	(5)						(5)
Ending balance at Sep. 30, 2016	210		1,128	(715)	(218)	195	15
Ending balance, shares at Sep. 30, 2016		1,055
Net income	149			143		143	6
Dividends	(84)			(84)		(84)
Other comprehensive (loss) income, net of tax	37				37	37
Disposal of noncontrolling interest related to divestiture	(3)						(3)
Distribution to noncontrolling interest holders	(5)						(5)
Other	4			2		2	2
Ending balance at Sep. 30, 2017	$ 308		1,128	(654)	(181)	293	15
Ending balance, shares at Sep. 30, 2017	1,052	1,055
Net income	$ 312			307		307	5
Dividends	(925)			(925)		(925)
Other comprehensive (loss) income, net of tax	(9)				(9)	(9)
Distribution to noncontrolling interest holders	(6)						(6)
Other		$ (3)
Ending balance at Sep. 30, 2018	$ (320)		$ 1,128	$ (1,272)	$ (190)	$ (334)	$ 14
Ending balance, shares at Sep. 30, 2018	1,052	1,052

Description of Business

12 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

1. Description of Business

Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. The Company is the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music-based content companies.

Acquisition of Warner Music Group by Access Industries

Pursuant to an Agreement and Plan of Merger, dated as of May 6, 2011 (the “Merger Agreement”), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company (“Parent”) and an affiliate of Access Industries, Inc. (“Access”), and Airplanes Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), on July 20, 2011 (the “Merger Closing Date”), Merger Sub merged with and into the Company with the Company surviving as a wholly owned subsidiary of Parent (the “Merger”). In connection with the Merger, the Company delisted its common stock from the NYSE. The Company continues voluntarily to file with the SEC current and periodic reports that would be required to be filed with the SEC pursuant to Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as provided for in certain covenants contained in the instruments covering its outstanding indebtedness.

Recorded Music Operations

The Company’s Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company plays an integral role in virtually all aspects of the recorded music value chain from discovering and developing talent to producing music and promoting artists and their products.

In the United States, Recorded Music operations are conducted principally through the Company’s major record labels— Atlantic Records and Warner Bros. Records. In October 2018, the Company launched Elektra Music Group in the United States as a standalone label group, which comprises the Elektra, Fueled by Ramen and Roadrunner labels. The Company’s Recorded Music operations also include Rhino, a division that specializes in marketing the Company’s music catalog through compilations and reissuances of previously released music and video titles. The Company also conducts its Recorded Music operations through a collection of additional record labels, including, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin’, Warner Classics and Warner Music Nashville.

Outside the United States, Recorded Music activities are conducted in more than 50 countries through various subsidiaries, affiliates and non-affiliated licensees. Internationally, the Company engages in the same activities as in the United States: discovering and signing artists and distributing, marketing and selling their recorded music. In most cases, the Company also markets and distributes the music of those artists for whom the Company’s domestic record labels have international rights. In certain smaller markets, the Company licenses the right to distribute the Company’s records to non-affiliated third-party record labels. The Company’s international artist services operations include a network of concert promoters through which it provides resources to coordinate tours for the Company’s artists and other artists as well as management companies that guide artists with respect to their careers.

The Company’s Recorded Music distribution operations include Warner-Elektra-Atlantic Corporation (“WEA Corp.”), which markets and sells music and video products to retailers and wholesale distributors; Alternative Distribution Alliance (“ADA”), which distributes the products of independent labels to retail and wholesale distributors; and various distribution centers and ventures operated internationally.

The Company’s Recorded Music products are sold in digital form to an expanded universe of digital partners, including digital streaming services such as Amazon, Apple Music, Deezer, Napster, Soundcloud, Spotify, Tencent and YouTube, digital radio services such as iHeart Radio, Pandora and Sirius XM and digital download services such as Apple’s iTunes and Google Play. In addition, Recorded Music products are also sold in physical retail outlets and in physical form to online physical retailers such as Amazon.com and bestbuy.com.

The Company has integrated the exploitation of digital content into all aspects of its business, including A&R, marketing, promotion and distribution. The Company’s business development executives work closely with A&R departments to ensure that while music is being produced, digital assets are also created with all distribution channels in mind, including streaming services, social networking sites, online portals and music-centered destinations. The Company also works side by side with its digital partners to test new concepts. The Company believes existing and new digital businesses will be a significant source of growth and will provide new opportunities to successfully monetize its assets and create new revenue streams. The proportion of digital revenues attributed to each distribution channel varies by region and proportions may change as the roll out of new technologies continues. As an owner of music content, the Company believes it is well positioned to take advantage of growth in digital distribution and emerging technologies to maximize the value of its assets.

The Company has diversified its revenues beyond its traditional businesses by entering into expanded-rights deals with recording artists in order to partner with artists in other aspects of their careers. Under these agreements, the Company provides services to and participates in artists’ activities outside the traditional recorded music business such as touring, merchandising and sponsorships. The Company has built artist services capabilities and platforms for exploiting this broader set of music-related rights and participating more widely in the monetization of the artist brands it helps create. The Company believes that entering into expanded-rights deals and enhancing its artist services capabilities in areas such as concert promotion and management have permitted it to diversify revenue streams and capitalize on other revenue opportunities. This provides for improved long-term relationships with artists and allows the Company to more effectively connect artists and fans.

Music Publishing Operations

While recorded music is focused on exploiting a particular recording of a composition, music publishing is an intellectual property business focused on the exploitation of the composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, the Company’s Music Publishing business garners a share of the revenues generated from use of the composition.

The Company’s Music Publishing operations are conducted principally through Warner/Chappell, its global Music Publishing company, headquartered in Los Angeles with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. The Company owns or controls rights to more than one million musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over decades, its award-winning catalog includes over 70,000 songwriters and composers and a diverse range of genres including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative and gospel. Warner/Chappell also administers the music and soundtracks of several third-party television and film producers and studios. The Company has an extensive production music library collectively branded as Warner/Chappell Production Music.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. The fiscal year ended September 30, 2018 ended on September 28, 2018, the fiscal year ended September 30, 2017 ended on September 29, 2017, and the fiscal year ended September 30, 2016 ended on September 30, 2016. For convenience purposes, the Company continues to date its financial statements as of September 30.

Basis of Consolidation

The accompanying financial statements present the consolidated accounts of all entities in which the Company has a controlling voting interest and/or variable interest required to be consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated.

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”) requires the Company first evaluate its investments to determine if any investments qualify as a variable interest entity (“VIE”). A VIE is consolidated if the Company is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has both (i) the power to control the most significant activities of the VIE and (ii) either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If an entity is not deemed to be a VIE, the Company consolidates the entity if the Company has a controlling voting interest.

Reclassifications

Certain reclassifications have been made to the prior fiscal years’ consolidated financial statements to conform to the current fiscal-year presentation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. Actual results could differ from those estimates.

Business Combinations

The Company accounts for its business acquisitions under the FASB ASC Topic 805, Business Combinations (“ASC 805”) guidance for business combinations. The total cost of acquisitions is allocated to the underlying identifiable net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items.

Cash and Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. The Company includes checks outstanding at year end as a component of accounts payable, instead of a reduction in its cash balance where there is not a right of offset in the related bank accounts.

Accounts Receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value.

Sales Returns and Allowance for Doubtful Accounts

Management’s estimate of Recorded Music physical products that will be returned, and the amount of receivables that will ultimately be collected is an area of judgment affecting reported revenues and operating income. In determining the estimate of physical product sales that will be returned, management analyzes vendor sales of product, historical return trends, current economic conditions, changes in customer demand and commercial acceptance of our products. Based on this information, management reserves a percentage of each dollar of physical product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale.

Similarly, the Company monitors customer credit risk related to accounts receivable. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. On an ongoing basis, the Company tracks customer exposure based on news reports, ratings agency information, reviews of customer financial data and direct dialogue with customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the payment terms previously granted to them should be modified. The Company also monitors payment levels from customers, and a provision for estimated uncollectible amounts is maintained based on such payment levels, historical experience, management’s views on trends in the overall receivable agings and, for larger accounts, analyses of specific risks on a customer specific basis.

Concentration of Credit Risk

Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. As of September 30, 2018 and September 30, 2017, Spotify represented 18% and 15%, respectively, of the Company’s accounts receivable balance. No other single customer accounted for more than 10% of accounts receivable in either period. The Company, by policy, routinely assesses the financial strength of its customers. As such, the Company does not believe there is any significant collection risk.

In the Music Publishing business, the Company collects a significant portion of its royalties from copyright collection societies around the world. Collection societies and associations generally are not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. Accordingly, the Company does not believe there is any significant collection risk from such societies.

Inventories

Inventories consist of DVDs, CDs, Vinyl and related music products. Inventories are stated at the lower of cost or estimated realizable value. Cost is determined using first-in, first-out (“FIFO”) and average cost methods, which approximate cost under the FIFO method. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost.

Derivative and Financial Instruments

The Company accounts for these investments as required by the FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized on the balance sheet at fair value. ASC 815 also provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. In addition, the ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

The carrying value of the Company’s financial instruments approximates fair value, except for certain differences relating to long-term, fixed-rate debt (see Note 15) and other financial instruments that are not significant. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques.

Property, Plant and Equipment

Property, plant and equipment existing at the date of the Merger or acquired in conjunction with subsequent business combinations are recorded at fair value. All other additions are recorded at historical cost. Depreciation is calculated using the straight-line method based upon the estimated useful lives of depreciable assets as follows: five to seven years for furniture and fixtures, periods of up to five years for computer equipment and periods of up to five years for machinery and equipment. Buildings are depreciated over periods of up to forty years. Leasehold improvements are depreciated over the life of the lease or estimated useful lives of the improvements, whichever period is shorter.

Accounting for Goodwill and Other Intangible Assets

In accordance with FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), the Company accounts for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price over the fair value of net assets, including the amount assigned to identifiable intangible assets. Pursuant to this guidance, the Company does not amortize the goodwill balance and instead, performs an annual impairment test to assess the fair value of goodwill over its carrying value. Identifiable intangible assets with finite lives are amortized over their useful lives.

Goodwill is tested annually for impairment as of July 1 and at any time upon the occurrence of certain events or changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, its goodwill is not impaired and the second step of the impairment test is not necessary. If the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. The second step of the goodwill impairment test compares the implied fair value of the reporting unit goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess.

The Company performs an annual impairment test of its indefinite-lived intangible assets as of July 1 of each fiscal year, unless events occur which trigger the need for an earlier impairment test. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conduct a quantitative analysis if the Company (i) determines that such an impairment is more likely than not to exist, or (ii) foregoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, then an impairment loss is recognized in an amount equal to that excess. The Company generally determines the fair value of an indefinite-lived intangible asset using a DCF analysis, such as the relief from royalty method, which is used in estimating the fair value of the Company’s trademarks. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar trademarks are being licensed in the marketplace.

The impairment tests require management to make assumptions about future conditions impacting the value of the indefinite-lived intangible assets, including projected growth rates, cost of capital, effective tax rates, tax amortization periods, royalty rates, market share and others.

Valuation of Long-Lived Assets

The Company periodically reviews the carrying value of its long-lived assets, including finite lived intangibles, property, plant and equipment and amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan to dispose of the assets, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. If it is determined that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life would be changed, and the remaining carrying amount of the asset would be amortized prospectively over that revised remaining useful life.

Foreign Currency Translation

The financial position and operating results of substantially all foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity as a component of accumulated other comprehensive loss.

Revenues

Recorded Music

As required by FASB ASC Topic 605, Revenue Recognition (“ASC 605”), the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable.

Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and title and risk of loss have been transferred. In accordance with industry practice and as is customary in many territories, certain products, such as CDs and DVDs, are sold to customers with the right to return unsold items. Revenues from such sales are generally recognized upon shipment based on gross sales less a provision for future estimated returns. Revenues from the sale of Recorded Music products through digital distribution channels are recognized when the products are sold and related sales accounting reports are delivered by the providers.

Music Publishing

Music Publishing revenues are earned from the receipt of royalties relating to the licensing of rights in musical compositions, and the sale of published sheet music and songbooks. The receipt of royalties principally relates to amounts earned from the public performance of copyrighted material, the mechanical reproduction of copyrighted material on recorded media including digital formats, and the use of copyrighted material in synchronization with visual images. Music publishing royalties, except for synchronization royalties, generally are recognized as revenue when cash is received. Synchronization revenue is typically recognized as revenue on an accrual basis when all revenue recognition criteria are met in accordance with ASC 605.

Gross Versus Net Revenue Classification

In the normal course of business, the Company acts as an intermediary or agent with respect to certain payments received from third parties. For example, the Company distributes music product on behalf of third-party record labels. As required by FASB ASC Subtopic 605-45, Principal Agent Considerations, such transactions are recorded on a “gross” or “net” basis depending on whether the Company is acting as the “principal” in the transaction or acting as an “agent” in the transaction. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership and, accordingly, revenues are recorded on a gross basis. For those transactions in which the Company does not have substantial risks and rewards of ownership, the Company is considered an agent and, accordingly, revenues are recorded on a net basis.

To the extent revenues are recorded on a gross basis, any participations and royalties paid to third parties are recorded as expenses so that the net amount (gross revenues less expenses) flows through operating income. To the extent revenues are recorded on a net basis, revenues are reported based on the amounts received, less participations and royalties paid to third parties. In both cases, the impact on operating income is the same whether the Company records the revenues on a gross or net basis.

Based on an evaluation of the individual terms of each contract and whether the Company is acting as principal or agent, the Company generally records revenues from the distribution of recorded music product on behalf of third-party record labels on a gross basis. However, revenues are recorded on a net basis for recorded music compilations distributed by other record companies where the Company has a right to participate in the profits.

Royalty Advances and Royalty Costs

The Company regularly commits to and pays royalty advances to its recording artists and songwriters in respect of future sales. The Company accounts for these advances under the related guidance in FASB ASC Topic 928, Entertainment—Music (“ASC 928”). Under ASC 928, the Company capitalizes as assets certain advances that it believes are recoverable from future royalties to be earned by the recording artist or songwriter. Advances vary in both amount and expected life based on the underlying recording artist or songwriter.

The Company’s decision to capitalize an advance to a recording artist or songwriter as an asset requires significant judgment as to the recoverability of the advance. The recoverability is assessed upon initial commitment of the advance based upon the Company’s forecast of anticipated revenue from the sale of future and existing albums or songs. In determining whether the advance is recoverable, the Company evaluates the current and past popularity of the recording artist or songwriter, the sales history of the recording artist or songwriter, the initial or expected commercial acceptability of the product, the current and past popularity of the genre of music that the product is designed to appeal to, and other relevant factors. Based upon this information, the Company expenses the portion of any advance that it believes is not recoverable. In most cases, advances to recording artists or songwriters without a history of success and evidence of current or past popularity will be expensed immediately. Significant advances are individually assessed for recoverability continuously and at minimum on a quarterly basis. As part of the ongoing assessment of recoverability, the Company monitors the projection of future sales based on the current environment, the recording artist’s or songwriter’s ability to meet their contractual obligations as well as the Company’s intent to support future album releases or songs from the recording artist or songwriter. To the extent that a portion of an outstanding advance is no longer deemed recoverable, that amount will be expensed in the period the determination is made.

Advertising

As required by the FASB ASC Subtopic 720-35, Advertising Costs (“ASC 720-35”), advertising costs, including costs to produce music videos used for promotional purposes, are expensed as incurred. Advertising expense amounted to approximately $104 million, $97 million, and $91 million for the fiscal years ended September 30, 2018, 2017 and 2016, respectively. Deferred advertising costs, which principally relate to advertisements that have been paid for but not been exhibited or services that have not been received, were not material for all periods presented.

Share-Based Compensation

The Company accounts for share-based payments as required by FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense. Under the fair value recognition provision of ASC 718, equity classified share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.

Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price. During fiscal year 2013, the Company initiated a long term incentive plan that has liability classification for share-based compensation awards and continues to be effective through September 30, 2018.

Income Taxes

Income taxes are provided using the asset and liability method presented by FASB ASC Topic 740, Income Taxes (“ASC 740”). Under this method, income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current fiscal year and include the results of any differences between U.S. GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating loss, capital loss and general business credit carryforwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statements and income tax purposes, as determined under enacted tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). In accordance with ASC 740, the Company recorded the impacts in the period of enactment.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company’s tax returns are more likely than not of being sustained.

New Accounting Pronouncements

In October 2017, the Company adopted ASU 2016-09, Compensation - Stock Compensation ("ASU 2016-09"). This ASU provides amended guidance which simplifies the accounting for share-based payment transactions involving multiple aspects of the accounting for share-based transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The adoption of ASU 2016-09 did not have any effect on the Company’s consolidated financial statements and footnote disclosures as of September 30, 2018.

In May 2014, the FASB issued guidance codified in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which replaces the guidance in former ASC 605, Revenue Recognition and ASC 928-605, Entertainment – Music. The amendment was the result of a joint effort by the FASB and the International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and international financial reporting standards ("IFRS"). The joint project clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. ASC 606 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The update may be applied using one of two methods: full retrospective application to each prior reporting period presented, or modified retrospective application with the cumulative effect of initially applying the update recognized at the date of initial application. The Company will adopt ASC 606 on October 1, 2018 under the modified retrospective method.

The Company has substantially completed its assessment of the impact of adoption of this new guidance and believes the most significant impact will be a change in the timing of revenue recognition in its Music Publishing segment as well as international broadcast rights within Recorded Music. The Company generally records revenues from the licensing of publishing rights and international broadcast fees when cash is received. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage. Additionally, for certain licenses where the consideration is fixed and the intellectual property being licensed is static, revenue will be recognized at the point in time when control of the license is transferred to the customer. The Company’s evaluation of the impact this standard will have on its consolidated financial statements is ongoing and primarily relates to the quantification of the adoption date licensing accrual. Based on efforts to date, the cumulative-effect adjustment upon adoption of the new revenue recognition standard as of October 1, 2018, which primarily relates to the aforementioned accrual of licensing revenue, is expected to decrease the opening balance of accumulated deficit by approximately $150 million, net of tax.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU will require that equity investments, except those investments under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The Company may elect to measure equity investments that do not have a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price. The Company will adopt ASU 2016-01 beginning October 1, 2018 and this adoption is not expected to have a significant impact on the Company’s financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). This ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018, and interim periods within those years. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). This ASU provides specific guidance of how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The adoption of this standard is not expected to have an impact on the Company’s financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). This ASU requires the recognition of current and deferred income taxes for intra-entity asset transfers when the transaction occurs. ASU 2016-16 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The Company will adopt ASU 2016-16 beginning October 1, 2018 and this adoption is not expected to have a significant impact on the Company’s financial statements.

In January of 2017, the FASB issued ASU 2017-01, Business Combinations, to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The Company will adopt the new standard on October 1, 2018. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to accumulated deficit as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures.

In February 2018, FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income to accumulated deficit for stranded tax effects resulting from the Tax Act. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures.

In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). This ASU allows companies, for one year following the enactment date, to consider the impact of the Tax Act as “provisional” when a company can make a reasonable estimate but does not have the necessary information available, prepared or analyzed in reasonable detail to finalize its accounting for the impact of the Tax Act. A company may need to reflect adjustments to its provisional amounts upon obtaining, preparing or analyzing additional information about facts and circumstances that existed at the period of enactment. The Company has adopted this standard on its financial statements and disclosures.

Comprehensive (Loss) Income

12 Months Ended

Sep. 30, 2018

Equity [Abstract]

Comprehensive (Loss) Income

3. Comprehensive (Loss) Income

Comprehensive (loss) income, which is reported in the accompanying consolidated statements of equity, consists of net (loss) income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net (loss) income. For the Company, the components of other comprehensive loss primarily consist of foreign currency translation losses, minimum pension liabilities, and deferred gains and losses on financial instruments designated as hedges under ASC 815, which include foreign exchange contracts. The following summary sets forth the changes in the components of accumulated other comprehensive loss, net of related taxes of less than $1 million:

	Foreign			Minimum			Deferred Gains		Accumulated
	Currency			Pension			On Derivative		Other
	Translation			Liability			Financial		Comprehensive
	Loss			Adjustment			Instruments		Loss, net
	(in millions)
Balance at September 30, 2015	$	(157	)	$	(10	)	$	—	$	(167	)
Other comprehensive loss (a)		(44	)		(6	)		—		(50	)
Amounts reclassified from accumulated other comprehensive income		—			(1	)		—		(1	)
Balance at September 30, 2016	$	(201	)	$	(17	)	$	—	$	(218	)
Other comprehensive income (a)		30			8			—		38
Amounts reclassified from accumulated other comprehensive income		—			(1	)		—		(1	)
Balance at September 30, 2017	$	(171	)	$	(10	)	$	—	$	(181	)
Other comprehensive loss (a)		(13	)		1			3		(9	)
Amounts reclassified from accumulated other comprehensive income		—			—			—		—
Balance at September 30, 2018	$	(184	)	$	(9	)	$	3	$	(190	)

(a)	Includes historical foreign currency translation related to certain intra-entity transactions that are no longer of a long-term investment nature of $0 million, $(19) million and $(109) million during the fiscal year ended September 30, 2018, 2017 and 2016, respectively.

Property, Plant and Equipment

12 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

4. Property, Plant and Equipment

Property, plant and equipment consist of the following:

	September 30,			September 30,
	2018			2017
	(in millions)
Land	$	11		$	11
Buildings and improvements		109			99
Furniture and fixtures		11			10
Computer hardware and software		302			262
Construction in progress		42			30
Machinery and equipment		11			11
Gross Property, Plant and Equipment	$	486		$	423
Less accumulated depreciation		(257	)		(210	)
Net Property, Plant and Equipment	$	229		$	213

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

Goodwill

The following analysis details the changes in goodwill for each reportable segment:

	Recorded			Music
	Music			Publishing		Total
	(in millions)
Balance at September 30, 2016	$	1,163		$	464	$	1,627
Acquisitions		58			—		58
Dispositions		(10	)		—		(10	)
Other adjustments		10			—		10
Balance at September 30, 2017	$	1,221		$	464	$	1,685
Acquisitions		12			—		12
Dispositions		—			—		—
Other adjustments		(5	)		—		(5	)
Balance at September 30, 2018	$	1,228		$	464	$	1,692

The increase in goodwill during the fiscal year ended September 30, 2018 primarily relates to finalizing the purchase accounting allocation for the Spinnin’ Records acquisition, which resulted in an increase in goodwill of $10 million, as discussed below. The increase in goodwill during the fiscal year ended September 30, 2017 primarily relates to the Spinnin’ Records acquisition in September 2017. The decrease in goodwill during the fiscal year ended September 30, 2017 includes goodwill associated with immaterial dispositions. The other adjustments during both the fiscal years ended September 30, 2018 and 2017 primarily represent foreign currency movements.

The Company accounted for the acquisition of Spinnin’ Records as a business combination under ASC 805, which requires the acquisition method of accounting. At September 30, 2017, the Company performed a preliminary purchase allocation under the acquisition method of accounting, which resulted in goodwill, intangibles, deferred tax liabilities and other insignificant assets and liabilities assumed. The preliminary purchase accounting was subject to revision based on final determinations of fair value and allocations of purchase price to the identifiable assets and liabilities acquired. At September 30, 2018, the Company finalized the allocation recorded at September 30, 2017 based on a final determination of fair market valuation of certain intangible assets. The updated allocation resulted in an increase in goodwill of $10 million, a decrease in intangible assets of $13 million, and a decrease in deferred tax liabilities of $3 million during the current year.

For the fiscal year ended September 30, 2017, the cash paid of $139 million includes the acquisition of Spinnin’ Records, which was acquired on September 7, 2017. Based in the Netherlands, Spinnin’ Records is a dance and electronic music company. The results of operations for Spinnin’ Records are reported in our Recorded Music segment following the acquisition date.

The Company performs its annual goodwill impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s goodwill may not be recoverable. The performance of the annual fiscal 2018 impairment analysis did not result in an impairment of the Company’s goodwill.

Intangible Assets

Intangible assets consist of the following:

	Weighted
	Average	September 30,			September 30,
	Useful Life	2018			2017
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	870		$	898
Music publishing copyrights	26 years		1,540			1,534
Artist and songwriter contracts	13 years		864			904
Trademarks	6 years		12			14
Other intangible assets	5 years		26			10
Total gross intangible asset subject to amortization			3,312			3,360
Accumulated amortization			(1,461	)		(1,270	)
Total net intangible assets subject to amortization			1,851			2,090
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite		154			117
Total net other intangible assets		$	2,005		$	2,207

The Company performs its annual indefinite-lived intangible assets impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s indefinite-lived intangible assets may not be recoverable. The performance of the annual fiscal 2018 impairment analysis did not result in an impairment of the Company’s indefinite-lived intangible assets.

For the fiscal year ended September 30, 2017, the intangible balances presented include a preliminary purchase accounting allocation resulting from the acquisition of Spinnin’ Records in September 2017.

Amortization

Based on the amount of intangible assets subject to amortization at September 30, 2018, the expected amortization for each of the next five fiscal years and thereafter are as follows:

	Fiscal Years Ended
	September 30,
	(in millions)
2019	$	204
2020		175
2021		174
2022		166
2023		131
Thereafter		1,001
	$	1,851

The life of all acquired intangible assets is evaluated based on the expected future cash flows associated with the asset. The expected amortization expense above reflects estimated useful lives assigned to the Company’s identifiable, finite-lived intangible assets primarily established in the accounting for the Merger and the PLG Acquisition.

Debt

12 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

6. Debt

Debt Capitalization

Long-term debt consists of the following:

	September 30,		September 30,
	2018		2017
	(in millions)
Revolving Credit Facility—Acquisition Corp. (a)	$	—	$	—
Senior Term Loan Facility due 2023—Acquisition Corp. (b)		1,310		990
5.625% Senior Secured Notes due 2022—Acquisition Corp. (c)		246		246
5.00% Senior Secured Notes due 2023—Acquisition Corp. (d)		297		297
4.125% Senior Secured Notes due 2024—Acquisition Corp. (e)		399		402
4.875% Senior Secured Notes due 2024—Acquisition Corp. (f)		247		246
6.75% Senior Notes due 2022—Acquisition Corp. (g)		—		630
5.50% Senior Notes due 2026—Acquisition Corp. (h)		320		—
Total debt (i)	$	2,819	$	2,811

(a)

Reflects $180 million and $150 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $8 million and $12 million at September 30, 2018 and September 30, 2017, respectively. There were no loans outstanding under the Revolving Credit Facility at September 30, 2018 or September 30, 2017.

(b)	Principal amount of $1.326 billion and $1.006 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $12 million and $10 million at September 30, 2018 and September 30, 2017, respectively.

(c)	Principal amount of $248 million less unamortized deferred financing costs of $2 million at both September 30, 2018 and September 30, 2017.

(d)	Principal amount of $300 million less unamortized deferred financing costs of $3 million at both September 30, 2018 and September 30, 2017.

(e)

Face amount of €345 million. Above amounts represent the dollar equivalent of such notes at September 30, 2018 and September 30, 2017. Principal amount of $402 million and $407 million less unamortized deferred financing costs of $3 million and $5 million at September 30, 2018 and September 30, 2017, respectively.

(f)	Principal amount of $250 million at both September 30, 2018 and September 30, 2017 less unamortized deferred financing costs of $3 million and $4 million at September 30, 2018 and September 30, 2017, respectively.

(g)	Principal amount of $635 million less unamortized deferred financing costs of $5 million at September 30, 2017.

(h)	Principal amount of $325 million less unamortized deferred financing costs of $5 million at September 30, 2018.

(i)	Principal amount of debt of $2.851 billion and $2.846 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $28 million and $29 million at September 30, 2018 and September 30, 2017, respectively.

December 2017 Senior Term Loan Credit Agreement Amendment

On December 6, 2017, Acquisition Corp. entered into an amendment (the “December 2017 Senior Term Loan Credit Agreement Amendment”) to the Senior Term Loan Credit Agreement, dated November 1, 2012, among Acquisition Corp., the guarantors party thereto, the lenders party thereto and Credit Suisse AG, as administrative agent, governing Acquisition Corp.’s senior secured term loan facility with Credit Suisse AG, as administrative agent, and the other financial institutions and lenders from time to time party thereto, to, among other things, reduce the pricing terms of its outstanding term loans, change certain incurrence thresholds governing the ability to incur debt and liens, change certain EBITDA add-backs and increase the thresholds above which the excess cash flow sweep is triggered. The Company recorded a loss on extinguishment of debt of approximately $1 million, which represented the discount and unamortized deferred financing costs related to the prior tranche of debt of the lenders that was replaced.

New Revolving Credit Agreement

On January 31, 2018, the Company entered into a new revolving credit agreement (the “Revolving Credit Agreement”) for its Revolving Credit Facility, and terminated its existing revolving credit agreement (the “Old Revolving Credit Agreement”). The Revolving Credit Agreement differs from the Old Revolving Credit Agreement in that it, among other things, reduces the interest rate margin applicable to the loans, extends the maturity date thereunder, provides for the option to increase the commitments under the Company’s then existing revolving credit agreement, provides for greater flexibility to amend and extend the Company’s then existing revolving credit agreement and create additional tranches thereunder, provides for greater flexibility over future amendments, increases the springing financial maintenance covenant to 4.75:1.00 and provides that the covenant shall not be tested unless at the end of a fiscal quarter the outstanding amount of loans and drawings under letters of credit which have not been reimbursed exceeds $54 million and aligns the other negative covenants with those of the Senior Term Loan Credit Agreement. References to “Revolving Credit Facility” below in this Note 5 are to our new revolving credit facility.

March 2018 Senior Term Loan Credit Agreement Amendment

On March 14, 2018, Acquisition Corp. incurred $320 million of supplemental term loans (the “Supplemental Term Loans”) pursuant to an increase supplement (the “March 2018 Senior Term Loan Credit Agreement Supplement”) to the Senior Term Loan Credit Agreement, dated November 1, 2012, among Acquisition Corp., the guarantors party thereto, the lenders party thereto and Credit Suisse AG, as administrative agent, governing Acquisition Corp.’s senior secured term loan facility with Credit Suisse AG, as administrative agent, and the other financial institutions and lenders from time to time party thereto (as amended, the “Senior Term Loan Credit Agreement”). The principal amount outstanding under the Senior Term Loan Credit Agreement including the Supplemental Term Loans is $1.326 billion.

Notes Offering

On March 14, 2018, Acquisition Corp. issued $325 million in aggregate principal amount of its 5.50% Senior Notes due 2026. Acquisition Corp. used the net proceeds to pay the consideration in the tender offer for its 6.75% Senior Notes due 2022 (the “6.75% Senior Notes”) and to redeem the remaining 6.75% Senior Notes as described below.

Tender Offer and Notes Redemption

On March 14, 2018, Acquisition Corp. accepted for purchase in connection with the tender offer for the 6.75% Senior Notes that had been validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time on March 13, 2018 (the “Expiration Time”) thereby reducing the aggregate principal amount of the 6.75% Senior Notes by $523 million. Acquisition Corp. then issued a notice of redemption on March 14, 2018 with respect to the remaining $112 million of 6.75% Senior Notes outstanding that were not accepted for payment pursuant to the tender offer. Following payment of the 6.75% Senior Notes tendered at or prior to the Expiration Time, Acquisition Corp. deposited with the Trustee funds of $119 million to satisfy all obligations under the applicable indenture governing the 6.75% Senior Notes, including call premiums and interest through the date of redemption on April 15, 2018, for the remaining 6.75% Senior Notes not accepted for purchase in the tender offer. On April 15, 2018, Acquisition Corp. redeemed the remaining outstanding 6.75% Senior Notes. The Company recorded a loss on extinguishment of debt in connection with the tender offer of approximately $23 million as a result of the partial debt redemption, which represents the premium paid on early redemption and unamortized deferred financing costs in March 2018. The Company incurred an additional loss on extinguishment of approximately $5 million in April 2018 related to the redemption on the remaining 6.75% Senior Notes, which represents the premium paid on early redemption and unamortized deferred financing costs.

June 2018 Senior Term Loan Credit Agreement Amendment

On June 7, 2018, Acquisition Corp. entered into an amendment (the “June 2018 Senior Term Loan Credit Agreement Amendment”) to the Senior Term Loan Credit Agreement, dated November 1, 2012, among Acquisition Corp., the guarantors party thereto, the lenders party thereto and Credit Suisse AG, as administrative agent, governing Acquisition Corp.’s senior secured term loan facility with Credit Suisse AG, as administrative agent, and the other financial institutions and lenders from time to time party thereto, to, among other things, reduce the pricing terms of its outstanding term loans, change certain incurrence thresholds governing the ability to incur debt and liens and exclude from the definition of “Senior Secured Indebtedness” certain liens that have junior lien priority on the collateral in relation to the outstanding term loans and the relevant guarantees, as applicable. The Company recorded a loss on extinguishment of debt of approximately $2 million, which represented the discount and unamortized deferred financing costs related to the prior tranche of debt of the lenders that was replaced.

Open Market Purchases

On March 11, 2016, Acquisition Corp. purchased, in the open market, approximately $25 million of its $660 million outstanding 6.75% Senior Notes due 2022. The acquired notes were subsequently retired. Following retirement of the acquired notes, approximately $635 million of the 6.75% Senior Notes due 2022 remain outstanding.

Notes Offering

On July 27, 2016, Acquisition Corp. issued $300 million in aggregate principal amount of its 5.00% Senior Secured Notes due 2023 (the “Notes Offering”). Acquisition Corp. used the net proceeds for the prepayment of $295.5 million of its outstanding Senior Term Loan Facility due 2020.

Interest Rates

The loans under the Revolving Credit Facility bear interest at Acquisition Corp.’s election at a rate equal to (i) the rate for deposits in the borrowing currency in the London interbank market (adjusted for maximum reserves) for the applicable interest period (“Revolving LIBOR”) subject to a zero floor, plus 1.75% per annum, or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) the one-month Revolving LIBOR plus 1.0% per annum, plus, in each case, 0.75% per annum. If there is a payment default at any time, then the interest rate applicable to overdue principal will be the rate otherwise applicable to such loan plus 2.0% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.0% per annum above the amount that would apply to an alternative base rate loan.

The loans under the Senior Term Loan Facility bear interest at Acquisition Corp.’s election at a rate equal to (i) the rate for deposits in U.S. dollars in the London interbank market (adjusted for maximum reserves) for the applicable interest period (“Term Loan LIBOR”) subject to a zero floor, plus 2.125% per annum, or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent as its prime rate in effect at its principal office in New York City from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) one-month Term Loan LIBOR, plus 1.00% per annum, plus, in each case, 1.125% per annum. If there is a payment default at any time, then the interest rate applicable to overdue principal and interest will be the rate otherwise applicable to such loan plus 2.0% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.0% per annum above the amount that would apply to an alternative base rate loan.

The Company has entered into, and in the future may enter into, interest rate swaps to manage interest rate risk. Please refer to Note 12 of our Consolidated Financial Statements for further discussion.

Maturity of Senior Term Loan Facility

The loans outstanding under the Senior Term Loan Facility mature on November 1, 2023.

Maturity of Revolving Credit Facility

The maturity date of the Revolving Credit Facility is January 31, 2023.

Maturities of Senior Notes and Senior Secured Notes

As of September 30, 2018, there are no scheduled maturities of notes until 2022, when $248 million is scheduled to mature. Thereafter, $1.277 billion is scheduled to mature.

Interest Expense, net

Total interest expense, net, was $138 million, $149 million, and $173 million for the fiscal years ended September 30, 2018, 2017 and 2016, respectively. The weighted-average interest rate of the Company’s total debt was 4.7% at September 30, 2018, 4.9% at September 30, 2017 and 5.3% at September 30, 2016.

Income Taxes

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act contains significant revisions to U.S. federal corporate income tax provisions, including, but not limited to, a reduction of the U.S. federal corporate statutory tax rate from 35% to 21%, a one-time transition tax on accumulated foreign earnings, an income inclusion of global intangible low-taxed income (“GILTI”), and a new minimum tax, the base erosion anti-abuse tax (“BEAT”). In accordance with ASC 740, the Company recorded the effects of the Tax Act during the three months ended December 31, 2017. The effect of the tax rate change was recorded in the period of enactment as provisional in accordance with the guidance under ASU 2018-05 and was finalized as of September 30, 2018.

The reduction in U.S. federal corporate statutory tax rate from 35% to 21% was effective January 1, 2018. The Tax Act requires companies with a fiscal year that begins before and ends after the effective date of the rate change to calculate a blended tax rate based on the pro rata number of days in the fiscal year before and after the effective date. As a result, for the fiscal year ending September 30, 2018, the Company’s U.S. federal statutory income tax rate was 24.5%. For the fiscal year ending September 30, 2019, the Company will be subject to the U.S. federal corporate statutory tax rate of 21%.

The reduction in the U.S. federal corporate statutory tax rate required the Company to adjust its U.S. deferred tax assets and liabilities using the newly enacted tax rate of 21%. As a result, the Company has recorded a U.S. income tax expense of $23 million for the reduction of its net U.S. deferred tax assets in the period ended September 30, 2018.

The Company reasonably estimates that there is no income tax impact related to the one-time transition tax on accumulated foreign earnings (“Transition Tax”) and recorded no income tax liability for the fiscal year ended September 30, 2018 due to an estimated overall deficit in accumulated foreign earnings. This estimate is provisional since the Company has not obtained and analyzed information necessary to finalize its accounting for the impact of the Transition Tax. The final impacts of the Transition Tax may differ from the estimate due to changes in interpretations of the Tax Act and updates or changes to the information that the Company has used to estimate the transition impact, including, but not limited to, the impacts from changes to foreign earnings estimates and foreign exchange rates.

GILTI and BEAT are effective for the Company’s fiscal year ending September 30, 2019. The Company is in the process of assessing the impact of GILTI and BEAT on its consolidated financial statements. At this time, the Company expects that GILTI will increase its U.S. taxable income and that, after its U.S. net operating loss carryforwards are used, the Company will incur incremental U.S. cash tax on such GILTI inclusions due to expense allocations required by U.S. foreign tax credit rules. The Company has elected to recognize the impact of GILTI in the specific period in which it occurs.

The domestic and foreign pretax (loss) income from continuing operations is as follows:

	Fiscal Year Ended		Fiscal Year Ended			Fiscal Year Ended
	September 30,		September 30,			September 30,
	2018		2017			2016
	(in millions)
Domestic	$	347	$	(37	)	$	35
Foreign		95		35			6
Total	$	442	$	(2	)	$	41

Current and deferred income taxes (tax benefits) provided are as follows:

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30,			September 30,			September 30,
	2018			2017			2016
	(in millions)
Federal:
Current	$	—		$	—		$	—
Deferred		91			(169	)		3
Foreign:
Current (a)		58			41			39
Deferred		(26	)		(12	)		(30	)
U.S. State:
Current		6			2			3
Deferred		1			(13	)		(4	)
Total	$	130		$	(151	)	$	11

(a)	Includes withholding taxes of $15 million, $13 million and $17 million for the fiscal years ended September 30, 2018, September 30, 2017, and September 30, 2016, respectively.

The differences between the U.S. federal statutory income tax rate of 24.5%, 35.0% and 35.0% for the fiscal year ended September 30, 2018, September 30, 2017 and September 30, 2016, respectively, and income taxes provided are as follows:

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30,			September 30,			September 30,
	2018			2017			2016
	(in millions)
Taxes on income at the U.S. federal statutory rate	$	108		$	(1	)	$	14
U.S. state and local taxes		7			3			(1	)
Foreign income taxed at different rates, including withholding taxes		19			11			12
Increase in valuation allowance		4			18			19
Release of valuation allowance		(14	)		(134	)		(26	)
Change in tax rates		23			(1	)		(10	)
Intergroup transfer		(30	)		—			—
Foreign currency losses on intra-entity loans		—			(59	)		—
Non-deductible long term incentive plan		8			10			1
Other		5			2			2
Total income tax (benefit) expense	$	130		$	(151	)	$	11

During the year ended September 30, 2018, the Company recognized a U.S. tax expense of $23 million related to the reduction of net U.S deferred tax assets as a result of the Tax Act. In addition, the Company recognized a net tax benefit of $30 million related to a prior year intergroup transfer. During the year ended September 30, 2017, the Company recognized a U.S. tax benefit of $59 million related to foreign currency losses on intra-entity loans. The foreign currency loss was previously reported in accumulated other comprehensive loss as the intra-entity loans were previously considered long-term in nature.

For the fiscal year ended September 30, 2018 and for the fiscal year ended September 30, 2017, the Company incurred losses in certain foreign territories and has offset the tax benefit associated with these losses with a valuation allowance as the Company has determined that it is more likely than not that these losses will not be utilized. For the fiscal year ended September 30, 2017, the Company released $125 million of the U.S. valuation allowance related to U.S. tax attributes. Significant components of the Company’s net deferred tax assets (liabilities) are summarized below:

	September 30,			September 30,
	2018			2017
	(in millions)
Deferred tax assets:
Allowances and reserves	$	26		$	35
Employee benefits and compensation		86			91
Other accruals		56			68
Tax attribute carryforwards		314			482
Other		4			13
Total deferred tax assets		486			689
Valuation allowance		(206	)		(193	)
Net deferred tax assets		280			496
Deferred tax liabilities:
Depreciation, amortization and artist advances		—			(15	)
Intangible assets		(434	)		(574	)
Total deferred tax liabilities		(434	)		(589	)
Net deferred tax liabilities	$	(154	)	$	(93	)

Of the valuation allowance of $206 million at September 30, 2018, $149 million relates to U.S. tax attributes, of which $133 million relates to foreign tax credit carryforwards, $12 million relates to U.S. state NOL carryforwards and $4 million relates to outside basis differences in investments.

At September 30, 2018, the Company has U.S. federal tax net operating loss carryforwards of $175 million, which will begin to expire in fiscal year 2033. The Company also has tax net operating loss carryforwards, with no expiration date, in the U.K., France and Spain of $20 million, $106 million and $39 million, respectively, and other tax net operating loss carryforwards in state, local and foreign jurisdictions that expire in various periods. In addition, the Company has foreign tax credit carryforwards for U.S. tax purposes of $169 million. The U.S. foreign tax credits will begin to expire in fiscal year 2019.

Deferred income taxes have not been recorded on indefinitely reinvested earnings of certain foreign subsidiaries of approximately $193 million at September 30, 2018. Distribution of these earnings may result in foreign withholding taxes and U.S. state taxes. However, variables existing if and when remittance occurs make it impracticable to estimate the amount of the ultimate tax liability, if any, on these accumulated foreign earnings.

The Company classifies interest and penalties related to uncertain tax position as a component of income tax expense. As of September 30, 2018 and September 30, 2017, the Company had accrued $2 million and $3 million of interest and penalties, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, are as follows (in millions):

Balance at September 30, 2015	$	35
Additions for current year tax positions		7
Additions for prior year tax positions		1
Subtractions for prior year tax positions		(13	)
Balance at September 30, 2016	$	30
Additions for current year tax positions		2
Additions for prior year tax positions		1
Subtractions for prior year tax positions		(14	)
Balance at September 30, 2017	$	19
Additions for current year tax positions		3
Additions for prior year tax positions		3
Subtractions for prior year tax positions		(7	)
Balance at September 30, 2018	$	18

Included in the total unrecognized tax benefits at September 30, 2018 and 2017 are $18 million and $19 million, respectively, that if recognized, would reduce the effective income tax rate. The Company’s gross unrecognized tax benefits decreased during the year ended September 30, 2018 by $7 million due primarily to a final court decision in Austria. The Company has determined that is reasonably possible that its existing reserve for uncertain tax positions as of September 30, 2018 could decrease by up to approximately $3 million related to various ongoing audits and settlement discussions in various foreign jurisdictions.

The Company and its subsidiaries file income tax returns in the U.S. and various foreign jurisdictions. The Company has completed tax audits in the U.S. for tax years ended through September 30, 2013, in the U.K. for the tax years ending through September 30, 2014, in Canada for tax years ended through September 30, 2013, in Germany for the tax years ending through September 30, 2009 and in Japan for the tax years ending through September 30, 2012. The Company is at various stages in the tax audit process in certain foreign and local jurisdictions.

Employee Benefit Plans

12 Months Ended

Sep. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

8. Employee Benefit Plans

Certain international employees, such as those in Germany and Japan, participate in locally sponsored defined benefit plans, which are not considered to be material either individually or in the aggregate and have a combined projected benefit obligation of approximately $73 million and $75 million as of September 30, 2018 and September 30, 2017, respectively. Pension benefits under the plans are based on formulas that reflect the employees’ years of service and compensation levels during their employment period. The Company had unfunded pension liabilities relating to these plans of approximately $50 million recorded in its balance sheets as of both September 30, 2018 and September 30, 2017. The Company uses a September 30 measurement date for its plans. For each of the fiscal years ended September 30, 2018, September 30, 2017, and September 30, 2016, pension expense amounted to $4 million.

Certain employees also participate in defined contribution plans. The Company’s contributions to the defined contribution plans are based upon a percentage of the employees’ elected contributions. The Company’s defined contribution plan expense amounted to approximately $5 million for the fiscal year ended September 30, 2018, $5 million for the fiscal year ended September 30, 2017, and $5 million for the fiscal year ended September 30, 2016.

Share-Based Compensation Plans

12 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation Plans

9. Share-Based Compensation Plans

Effective January 1, 2013, eligible individuals were invited to participate in the Senior Management Free Cash Flow Plan (as amended, the “Plan”). Eligible individuals include any employee, consultant or officer of the Company or any of its affiliates, who is selected by the Company’s Compensation Committee to participate in the Plan. In 2017, the Company’s Compensation Committee invited two additional employees to participate in the Plan. Under the Plan, participants are allocated a specific portion of the Company’s free cash flow to use to purchase the equivalent of Company stock through the acquisition of deferred equity units. Participants also receive a grant of profit interests in a purposely established LLC holding company (the “LLC”) that represent an economic entitlement to future appreciation over an equivalent number of shares of Company stock (“matching units”). The Company’s Board of Directors authorized the issuance of up to 82.1918 shares of the Company’s common stock pursuant to the Plan, 41.0959 in respect of deferred equity units and 41.0959 in respect of matching units. The LLC currently owns 52 issued and outstanding shares. Each deferred equity unit is equivalent to 1/10,000 of a share of Company stock. The Company will allocate units to active participants each Plan year at the time that annual free cash flow bonuses for such Plan year are determined and may grant unallocated units under the Plan to certain members of current or future management. At the time that annual free cash flow bonuses for such Plan year are determined, a participant shall be credited a number of deferred equity units based on their respective allocation divided by the grant date intrinsic value and an equal number of the related matching units will be allocated. The redemption price of the deferred equity units will equal the fair market value of a fractional share of the Company’s stock on the date of the settlement and the redemption price for the matching units will equal the excess, if any, of the then fair market value of one Company fractional share over the grant date intrinsic value of one fractional share.

The Company accounts for share-based payments as required by ASC 718. ASC 718 requires all share-based payments to employees to be recognized as compensation expense. Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs to employees using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price on the grant date.

The intrinsic value method utilized by the Company is based on the estimated fair value of equity divided by the number of shares outstanding to determine a price per share. The Company’s estimated fair value of equity is derived from a discounted cash flow model with adjustments for non-operating assets, less the estimated fair value of debt.

For accounting purposes, the grant date was established at the point the Company and the participant reached a mutual understanding of the key terms and conditions, in this case the date at which the participant accepted the invitation to participate in the Plan. For accounting purposes, deferred equity units are deemed to generally vest between one and seven years and matching equity units granted under the Plan are deemed to vest two years after the allocation to the participant’s account. The deferred and matching equity units have cash settlement dates that begin in December 2018. The deferred units will be settled at the participant’s election for cash equal to the fair market value of one fractional company share or a fractional company share. The matching units will be settled for cash equal to the redemption price or fractional company shares of equivalent value. At the end of the redemption period, all outstanding units become mandatorily redeemable at the then redemption price. Due to this mandatory redemption clause, the Company has classified the awards under the Plan as liability awards. Dividend distributions, if any, are also paid out on vested deferred equity units and are calculated on the same basis as the Company’s common shares. The Company has applied a graded (tranche-by-tranche) attribution method and expenses share-based compensation on an accelerated basis over the vesting period of the share award.

The following is a summary of the Company’s share awards:

									Matching		Deferred Equity		Matching Equity
							Deferred		Equity Units		Units Weighted-		Units Weighted-
							Equity Units		Weighted-		Average		Average
							Weighted-		Average		Grant-Date		Grant-Date
	Deferred			Matching			Average		Intrinsic		Intrinsic		Intrinsic
	Equity Units			Equity Units			Fair Value		Value		Value		Value
Unvested units at September 30, 2016		19			28		$	142.21	$	35.08	$	107.13	$	—
Granted		11			11			241.75		90.06		146.86		—
Vested		(17	)		(3	)		241.75		134.62		107.13		—
Forfeited		—			—			—		—		—		—
Unvested units at September 30, 2017		13			36		$	241.75	$	111.23	$	140.04	$	—
Granted		—			—			—		—		—		—
Vested		(7	)		(9	)		304.22		193.83		133.05		—
Forfeited		—			—			—		—		—		—
Unvested units at September 30, 2018		6			27		$	304.22	$	167.15	$	148.69	$	—

The weighted-average grant date intrinsic value of deferred equity unit awards for the fiscal year ended September 30, 2018 was $148.69. The fair value of these deferred equity units at September 30, 2018 was $304.22. The weighted-average grant date intrinsic value of deferred equity unit awards for the period ended September 30, 2017 was $140.04. The fair value of these deferred equity units at September 30, 2017 was $241.75. The weighted-average grant date intrinsic value of deferred equity unit awards for the period ended September 30, 2016 was $107.13. The fair value of these deferred equity units at September 30, 2016 was $142.21.

Compensation Expense

The Company recognized non-cash share-based compensation expense of $62 million, free cash flow compensation expense of $19 million and dividend expense related to the equity units of $27 million for the fiscal year ended September 30, 2018. The Company recognized non-cash share-based compensation expense of $70 million, free cash flow compensation expense of $30 million and dividend expense related to the equity units of $2 million for the fiscal year ended September 30, 2017. The Company recognized non-cash share-based compensation of $23 million for the fiscal year ended September 30, 2016. Of the $23 million, $13 million related to awards for employees and $10 million related to awards for non-employees for the fiscal year ended September 30, 2016.

In addition, at September 30, 2018, September 30, 2017 and September 30, 2016, the Company had approximately $18 million, $34 million and $2 million, respectively, of unrecognized compensation costs related to its unvested share awards. As of September 30, 2018, the remaining weighted average period over which total compensation related to unvested awards is expected to be recognized is 2 years.

Related Party Transactions

12 Months Ended

Sep. 30, 2018

Related Party Transactions

10. Related Party Transactions

Management Agreement

Upon completion of the Merger, the Company and Holdings entered into a management agreement with Access, dated as of the Merger Closing Date (the “Management Agreement”), pursuant to which Access will provide the Company and its subsidiaries, with financial, investment banking, management, advisory and other services. Pursuant to the Management Agreement, the Company, or one or more of its subsidiaries, will pay Access a specified annual fee equal to a base amount of approximately $9 million or based on a formula contained in the agreement and reimburse Access for certain expenses incurred performing services under the agreement. The annual fee is payable quarterly. The Company and Holdings agreed to indemnify Access and certain of its affiliates against all liabilities arising out of performance of the Management Agreement.

Such costs incurred by the Company were approximately $16 million, $9 million and $9 million for the fiscal years ended September 30, 2018, September 30, 2017 and September 30, 2016, respectively, which includes the annual fee, but excludes $2 million of expenses reimbursed related to certain consultants with full time roles at the Company for the fiscal year ended September 30, 2016. Such amounts have been included as a component of selling, general and administrative expense in the accompanying statements of operations.

Lease Arrangements with Related Party

On July 29, 2014, AI Wrights Holdings Limited, an affiliate of Access, entered into a lease and related agreements with Warner/Chappell Music Limited and WMG Acquisition (UK) Limited, subsidiaries of the Company, for the lease of 27 Wrights Lane, Kensington, London. The Company had been the tenant of the building, which Access acquired during the fiscal year 2014. Subsequent to the change in ownership, the Company entered into the new lease arrangements. Pursuant to the agreements, on January 1, 2015, the rent in the lease was increased to £3,460,250 per year, the term was extended for an additional five years from December 24, 2020 to December 24, 2025, with a market rate rent review that would begin December 25, 2020.

On August 13, 2015, a subsidiary of the Company, Warner Music Inc., entered into a license agreement with Access Industries, Inc., an affiliate of Access, for the use of office space in our corporate headquarters at 1633 Broadway, New York, New York. The license fee of $2,775 per month, plus an IT support fee of $1,000 per month, was based on the per foot lease costs to the Company of its headquarters space, which represented market terms. For the fiscal year ended September 30, 2018, an immaterial amount was recorded as rental income. The space is occupied by The Blavatnik Archive, which is dedicated to the discovery and preservation of historically distinctive and visually compelling artifacts, images and stories that contribute to the study of 20th century Jewish, WWI and WWII history.

On July 15, 2016, a subsidiary of the Company, Warner Music Inc., entered into a license agreement with Cooper Investment Partners LLC, for the use of office space in our corporate headquarters at 1633 Broadway, New York, New York. The license fee of $16,967.21 per month, was based on the per foot lease costs to the Company of its headquarters space, which represented market terms. For the fiscal year ended September 30, 2016, an immaterial amount was recorded as rental income. The space is occupied by Cooper Investment Partners LLC, which is a private equity fund that pursues a wide range of investment opportunities. Mr. Cooper, CEO and director of the Company, is the Managing Partner of Cooper Investment Partners LLC.

Deezer

Access owns a controlling equity interest in Deezer S.A., which was formerly known as Odyssey Music Group (“Odyssey”), a French company that controls and operates a digital music streaming service, formerly through Odyssey’s subsidiary, Blogmusik SAS (“Blogmusik”), under the name Deezer (“Deezer”), and is represented on Deezer S.A.’s Board of Directors. Subsidiaries of the Company, Warner Music Inc. and WEA International Inc. have been a party to license arrangements with Deezer since 2008 (Warner Music Inc. was added as a party to the license in 2014 in respect of the U.S.), which provide for the use of the Company’s sound recording content on Deezer’s ad-supported and subscription streaming services worldwide (excluding Japan) in exchange for fees paid by Deezer. Warner Music Inc. and WEA International Inc. have also authorized Deezer to include Warner content in Deezer’s streaming services where such services are offered as a bundle with third-party services or products (e.g., telco services or hardware products), for which Deezer is also required to make payments to Warner Music Inc. and WEA International Inc. Deezer paid to WEA International Inc. an aggregate amount of approximately $39 million and $36 million in connection with the foregoing arrangements during the fiscal year ended September 30, 2018 and 2017, respectively. In addition, in connection with these arrangements, (i) the Company was issued, and currently holds, warrants to purchase shares of Deezer S.A. and (ii) the Company purchased a small number of shares of Deezer S.A., which collectively represent a small minority interest in Deezer S.A.

Acquisition of Selected Assets of Songkick

As of July 12, 2017, we acquired selected assets from Songkick, including the concert discovery app and website and the Songkick trademark, for a purchase price of $5 million. Access owns a significant minority interest in the seller.

Investment in Tencent Music Entertainment Group

On October 1, 2018, WMG China LLC (“WMG China”), an affiliate of the Company, entered into a share subscription agreement with Tencent Music Entertainment Group pursuant to which WMG China agreed to purchase 37,162,288 ordinary shares of Tencent Music Entertainment Group for $100 million. WMG China is 80% owned by AI New Holdings 5 LLC, an affiliate of Access, and 20% owned by the Company. On October 3, 2018, WMG China acquired the shares pursuant to the share subscription agreement.

Loan Agreement with Max Lousada

On April 16, 2018, the Company loaned $227,000 to Mr. Lousada in exchange for a promissory note, all of which remains outstanding as of December 20, 2018. Mr. Lousada must repay this loan upon the earliest of specified events, including April 30, 2019, termination of his employment, the event of a default (as specified therein) or if the Company or its affiliate becomes an issuer of publicly-traded stock.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Leases

The Company occupies various facilities and uses certain equipment under operating leases. Net rent expense was approximately $80 million, $62 million and $60 million for the fiscal years ended September 30, 2018, September 30, 2017 and September 30, 2016, respectively.

At September 30, 2018, future minimum payments under non-cancelable operating leases are as follows:

		Operating
Years		Leases
	(in millions)
2019		$	56
2020			50
2021			47
2022			46
2023			45
Thereafter			245
Total		$	489

The future minimum payments reflect the amounts owed under lease arrangements and do not include any fair market value adjustments that may have been recorded as a result of the Merger.

Talent Advances

The Company routinely enters into long-term commitments with artists, songwriters and publishers for the future delivery of music product. Such commitments generally become due only upon delivery and Company acceptance of albums from the artists or future musical compositions by songwriters and publishers. Additionally, such commitments are typically cancelable at the Company’s discretion, generally without penalty. Based on contractual obligations and the Company’s expected release schedule, aggregate firm commitments to such talent approximated $340 million and $305 million as of September 30, 2018 and September 30, 2017, respectively.

Other

Other off-balance sheet, firm commitments, which primarily include minimum funding commitments to investees, amounted to approximately $4 million and $3 million at September 30, 2018 and September 30, 2017, respectively.

Litigation

Pricing of Digital Music Downloads

On December 20, 2005 and February 3, 2006, the Attorney General of the State of New York served the Company with requests for information in connection with an industry-wide investigation as to the pricing of digital music downloads. On February 28, 2006, the Antitrust Division of the U.S. Department of Justice served us with a Civil Investigative Demand, also seeking information relating to the pricing of digitally downloaded music. Both investigations were ultimately closed, but subsequent to the announcements of the investigations, more than thirty putative class action lawsuits were filed concerning the pricing of digital music downloads. The lawsuits were consolidated in the Southern District of New York. The consolidated amended complaint, filed on April 13, 2007, alleges conspiracy among record companies to delay the release of their content for digital distribution, inflate their pricing of CDs and fix prices for digital downloads. The complaint seeks unspecified compensatory, statutory and treble damages. On October 9, 2008, the District Court issued an order dismissing the case as to all defendants, including us. However, on January 13, 2010, the Second Circuit vacated the judgment of the District Court and remanded the case for further proceedings and on January 10, 2011, the U.S. Supreme Court denied the defendants’ petition for Certiorari.

Upon remand to the District Court, all defendants, including the Company, filed a renewed motion to dismiss challenging, among other things, plaintiffs’ state law claims and standing to bring certain claims. The renewed motion was based mainly on arguments made in defendants’ original motion to dismiss, but not addressed by the District Court. On July 18, 2011, the District Court granted defendants’ motion in part, and denied it in part. Notably, all claims on behalf of the CD-purchaser class were dismissed with prejudice. However, a wide variety of state and federal claims remain for the class of Internet download purchasers. On March 19, 2014, plaintiffs filed a motion for class certification. Plaintiffs filed an operative consolidated amended complaint on September 25, 2015. The Company filed its answer to the fourth amended complaint on October 9, 2015, and filed an amended answer on November 3, 2015. A mediation took place on February 22, 2016, but the parties were unable to reach a resolution. On July 18, 2017, the District Court denied plaintiffs’ motion for class certification. On August 1, 2017, plaintiffs filed a petition with the Second Circuit seeking permission to appeal the district court’s order denying class certification. On August 11, 2017, defendants filed their opposition to plaintiffs’ petition. On December 8, 2017, the Second Circuit denied plaintiffs’ request for leave to appeal the District Court’s order denying their motion for class certification. On May 8, 2018, the parties filed a joint stipulation to voluntarily dismiss the case with prejudice, and on May 15, 2018, the District Court dismissed the case.

Sirius XM

On September 11, 2013, the Company joined with Capitol Records, LLC, Sony Music Entertainment, UMG Recordings, Inc. and ABKCO Music & Records, Inc. in a lawsuit brought in California Superior Court against Sirius XM Radio Inc., alleging copyright infringement for Sirius XM’s use of pre-1972 sound recordings under California law. A nation-wide settlement was reached on June 17, 2015 pursuant to which Sirius XM paid the plaintiffs, in the aggregate, $210 million on July 29, 2015 and the plaintiffs dismissed their lawsuit with prejudice. The settlement resolves all past claims as to Sirius XM’s use of pre-1972 recordings owned or controlled by the plaintiffs and enables Sirius XM, without any additional payment, to reproduce, perform and broadcast such recordings in the United States through December 31, 2017. The allocation of the settlement proceeds among the plaintiffs was determined and the settlement proceeds were distributed accordingly. This resulted in a cash distribution to the Company of $33 million of which $28 million was recognized in revenue during the 2016 fiscal year and $4 million was recognized in revenue during the 2017 fiscal year. The balance of $1 million was recognized in the first quarter of the 2018 fiscal year. The Company is sharing its allocation of the settlement proceeds with its artists on the same basis as statutory revenue from Sirius XM is shared, i.e., the artist share of our allocation will be paid to artists by SoundExchange.

As part of the settlement, plaintiffs agreed to negotiate in good faith to grant Sirius XM a license to publicly perform the plaintiffs’ pre-1972 sound recordings for the five-year period running from January 1, 2018 to December 31, 2022. Pursuant to the settlement, if the parties are unable to reach an agreement on license terms, the royalty rate for each license will be determined by binding arbitration on a willing buyer/willing seller standard. On December 21, 2017, Sirius XM commenced a single arbitration against all of the plaintiffs in California through JAMS to determine the rate for the five-year period. On May 1, 2018, the Company filed a lawsuit against Sirius XM in New York state court to stay the California arbitration and to compel a separate arbitration in New York solely between Sirius XM and the Company. On August 23, 2018, the Company filed a stipulation of discontinuance without prejudice as to the state court action after Sirius XM agreed to participate in a separate arbitration with the Company in New York, which has not yet been scheduled.

Other Matters

In addition to the matter discussed above, the Company is involved in various litigation and regulatory proceedings arising in the normal course of business. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In the currently pending proceedings, the amount of accrual is not material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including (1) the results of ongoing discovery; (2) uncertain damage theories and demands; (3) a less than complete factual record; (4) uncertainty concerning legal theories and their resolution by courts or regulators; and (5) the unpredictable nature of the opposing party and its demands. However, the Company cannot predict with certainty the outcome of any litigation or the potential for future litigation. As such, the Company continuously monitors these proceedings as they develop and adjusts any accrual or disclosure as needed. Regardless of the outcome, litigation could have an adverse impact on the Company, including the Company’s brand value, because of defense costs, diversion of management resources and other factors and it could have a material effect on the Company’s results of operations for a given reporting period.

Derivative Financial Instruments

12 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

12. Derivative Financial Instruments

The Company uses derivative financial instruments, primarily foreign currency forward exchange contracts and interest rate swaps, for the purposes of managing foreign currency exchange rate risk and interest rate risk on expected future cash flows. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates.

The Company enters into foreign currency forward exchange contracts primarily to hedge the risk that unremitted or future royalties and license fees owed to its domestic companies for the sale, or anticipated sale, of U.S.-copyrighted products abroad may be adversely affected by changes in foreign currency exchange rates. The Company focuses on managing the level of exposure to the risk of foreign currency exchange rate fluctuations on its major currencies, which include the Euro, British pound sterling, Japanese yen, Canadian dollar, Swedish krona and Australian dollar. The foreign currency forward exchange contracts related to royalties are designated and qualify as cash flow hedges under the criteria prescribed in ASC 815, Derivatives and Hedging. The Company records these contracts at fair value on its balance sheet and gains or losses on these contracts are deferred in equity (as a component of comprehensive loss). These deferred gains and losses are recognized in income in the period in which the related royalties and license fees being hedged are received and recognized in income. However, to the extent that any of these contracts are not considered to be perfectly effective in offsetting the change in the value of the royalties and license fees being hedged, any changes in fair value relating to the ineffective portion of these contracts are immediately recognized in the statement of operations.

The Company may at times choose to hedge foreign currency risk associated with financing transactions such as third-party debt and other balance sheet items. The foreign currency forward exchange contracts related to balance sheet items denominated in foreign currency are reviewed on a contract-by-contract basis and are designated accordingly. If these foreign currency forward exchange contracts do not qualify for hedge accounting, then the Company records these contracts at fair value on its balance sheet and the related gains and losses are immediately recognized in the statement of operations where there is an equal and offsetting entry related to the underlying exposure.

The Company has entered into, and in the future may enter into, interest rate swaps to manage interest rate risk. These instruments may offset a portion of changes in income or expense, or changes in fair value of the Company’s long-term debt. The interest rate swap instruments are designated and qualify as cash flow hedges under the criteria prescribed in ASC 815, Derivatives and Hedging. The Company records these contracts at fair value on its balance sheet and gains or losses on these contracts are deferred in equity (as a component of comprehensive loss).

The fair value of foreign currency forward exchange contracts is determined by using observable market transactions of spot and forward rates (i.e., Level 2 inputs) which is discussed further in Note 11. Additionally, netting provisions are provided for in existing International Swap and Derivative Association Inc. agreements in situations where the Company executes multiple contracts with the same counterparty. As a result, net assets or liabilities resulting from foreign exchange derivatives subject to these netting agreements are classified within other current assets or other current liabilities in the Company’s consolidated balance sheets.

The Company’s hedged interest rate transactions as of September 30, 2018 are expected to be recognized within 5 years. The fair value of interest rate swaps is based on dealer quotes of market rates (i.e., Level 2 inputs) which is discussed further in Note 15. Interest income or expense related to interest rate swaps is recognized in interest income, net in the same period as the related expense is recognized. The ineffective portions of interest rate swaps is recognized in other income/(expense), net in the period measured.

The Company monitors its positions with, and the credit quality of, the financial institutions that are party to any of its financial transactions.

As of September 30, 2018, the Company had no outstanding hedge contracts and no deferred gains or losses in comprehensive loss related to foreign exchange hedging. As of September 30, 2017, the Company had no outstanding hedge contracts and no deferred gains or losses in comprehensive loss related to foreign exchange hedging.

As of September 30, 2018, the Company had outstanding $320 million in pay-fixed receive-variable interest rate swaps with $3 million of unrealized deferred gains in comprehensive income related to the interest rate swap. As of September 30, 2017, the Company had no outstanding interest rate swaps and no deferred gains or losses in comprehensive income or losses related to interest rate swaps.

The pre-tax gains of the Company’s derivative interest rate swaps designated as cash flow hedges recorded in other comprehensive income and the Consolidated Statement of Comprehensive Income during the twelve months ended September 30, 2018 and September 30, 2017 were $4 million and $0 million, respectively.

The following is a summary of amounts recorded in the Consolidated Balance Sheet pertaining to the Company’s designated cash flows hedges at September 30, 2018 and September 30, 2017:

	September 30,		September 30,
	2018 (a)		2017
	(in millions)
Other noncurrent assets		4		—
Other noncurrent liabilities		—		—

(a)	$4 million of interest rate swap in an asset position.

Segment Information

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

13. Segment Information

As discussed more fully in Note 1, based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent the reportable segments of the Company. Information as to each of these operations is set forth below. The Company evaluates performance based on several factors, of which the primary financial measure is operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets (“OIBDA”). The Company has supplemented its analysis of OIBDA results by segment with an analysis of operating income (loss) by segment.

The accounting policies of the Company’s business segments are the same as those described in the summary of significant accounting policies included elsewhere herein. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results.

					Corporate
	Recorded		Music		expenses and
	Music		Publishing		eliminations			Total
	(in millions)
2018
Revenues	$	3,360	$	653	$	(8	)	$	4,005
Operating income (loss)		307		84		(174	)		217
Amortization of intangible assets		138		68		—			206
Depreciation of property, plant and equipment		35		7		13			55
OIBDA		480		159		(161	)		478
Total assets		1,999		2,423		922			5,344
Capital expenditures		20		3		51			74
2017
Revenues	$	3,020	$	572	$	(16	)	$	3,576
Operating income (loss)		283		81		(142	)		222
Amortization of intangible assets		136		65		—			201
Depreciation of property, plant and equipment		32		6		12			50
OIBDA		451		152		(130	)		473
Total assets		2,085		2,510		1,123			5,718
Capital expenditures		21		5		18			44
2016
Revenues	$	2,736	$	524	$	(14	)	$	3,246
Operating income (loss)		247		68		(101	)		214
Amortization of intangible assets		180		63		—			243
Depreciation of property, plant and equipment		32		7		11			50
OIBDA		459		138		(90	)		507
Capital expenditures		18		7		17			42

Revenues relating to operations in different geographical areas are set forth below for the fiscal years ended September 30, 2018, September 30, 2017 and September 30, 2016. Total assets relating to operations in different geographical areas are set forth below as of September 30, 2018 and September 30, 2017.

	2018				2017				2016
			Long-lived				Long-lived
	Revenue		Assets		Revenue		Assets		Revenue
	(in millions)
United States	$	1,754	$	156	$	1,587	$	139	$	1,360
United Kingdom		593		23		522		26		491
All other territories		1,658		50		1,467		48		1,395
Total	$	4,005	$	229	$	3,576	$	213	$	3,246

Customer Concentration

In the fiscal year ended September 30, 2018, the Company had two customers that individually represented 10% or more of total revenues, whereby one customer represented 15%, and the other represented 14% of total revenues. In the fiscal years ended September 30, 2017 and September 30, 2016, one customer represented 14% of total revenues in each year. These customers’ revenues are included in both the Recorded Music and Music Publishing segments.

Additional Financial Information

12 Months Ended

Sep. 30, 2018

Additional Financial Information [Abstract]

Additional Financial Information

14. Additional Financial Information

Cash Interest and Taxes

The Company made interest payments of approximately $148 million, $138 million and $181 million during the fiscal years ended September 30, 2018, September 30, 2017 and September 30, 2016, respectively. The Company paid approximately $49 million, $40 million and $41 million of foreign income and withholding taxes, net of refunds, for the fiscal years ended September 30, 2018, September 30, 2017 and September 30, 2016, respectively.

Special Cash Dividends

On December 2, 2016, the Company’s Board of Directors approved a special cash dividend of $54 million which was paid on January 3, 2017 to stockholders of record as of December 30, 2016.

On June 5, 2017, the Company’s Board of Directors approved a special cash dividend of $30 million which was paid on July 31, 2017 to stockholders of record as of June 30, 2017.

On January 8, 2018, the Company’s Board of Directors approved a special cash dividend of $125 million which was paid on January 12, 2018 to stockholders of record as of January 11, 2018.

On May 7, 2018, the Company’s Board of Directors approved a special cash dividend of $300 million which was paid on May 11, 2018 to stockholders of record as of May 7, 2018.

On August 7, 2018, the Company’s Board of Directors approved a special cash dividend of $500 million which was paid on August 10, 2018 to stockholders of record as of August 7, 2018.

Our ability to pay dividends is restricted by covenants in the indentures governing our notes and in the credit agreements for our Senior Term Loan Facility and the Revolving Credit Facility.

The Company intends to institute a regular quarterly dividend whereby it would intend to pay modest regular quarterly dividends in each fiscal quarter and a variable dividend for the fourth fiscal quarter in an amount commensurate with cash expected to be generated from operations in such fiscal year, in each case, after taking into account other potential uses for cash, including acquisitions, investment in our business and repayment of indebtedness. The Company expects to pay the first dividend under this policy in the second quarter of fiscal 2019. The declaration of each dividend will continue to be at the discretion of the Board.

Spotify Share Sale

The Company sold all of its shares of common stock in Spotify Technology S.A. (“Spotify”) for cash proceeds of $504 million during the fiscal year ended September 30, 2018. In February 2016, the Company publicly announced that it would pay royalties in connection with these proceeds. The sale of shares resulted in an estimated pre-tax gain, net of the estimated royalty expense and other related costs, of $382 million, which has been recorded as other income (expense). As of September 30, 2018, the estimated royalty expense and other related costs have been accrued, and have largely been paid at September 30, 2018. The Company has calculated the advance recoveries to be $12 million, and has recorded these advance recoveries as a credit within operating expense in the twelve months ended September 30, 2018. The Company also recorded estimated tax expense of $77 million associated with the net income on the sale of shares in fiscal year ended September 30, 2018.

Additionally, the cash proceeds received in connection with the sale of shares have been reflected as an investing activity on the statement of cash flows within proceeds from the sale of investments.

Fair Value Measurements

12 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

15. Fair Value Measurements

ASC 820 defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

In addition to defining fair value, ASC 820 expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

•

Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

•

Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques.

In accordance with the fair value hierarchy, described above, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of September 30, 2018 and September 30, 2017.

	Fair Value Measurements as of September 30, 2018
	(Level 1)		(Level 2)		(Level 3)			Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (a)		—		—		(2	)		(2	)
Other Non-Current Assets:
Interest Rate Swap (b)		—		4		—			4
Other Non-Current Liabilities:
Contractual Obligations (a)		—		—		(6	)		(6	)
Interest Rate Swap (b)		—		—		—			—
Total	$	—	$	4	$	(8	)	$	(4	)

	Fair Value Measurements as of September 30, 2017
	(Level 1)		(Level 2)		(Level 3)			Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (a)		—		—		—			—
Other Non-Current Liabilities:
Contractual Obligations (a)		—		—		(5	)		(5	)
Total	$	—	$	—	$	(5	)	$	(5	)

(a)

This represents purchase obligations and contingent consideration related to the Company’s various acquisitions. This is based on a probability weighted performance approach and it is adjusted to fair value on a recurring basis and any adjustments are included as a component of operating income in the statement of operations. These amounts were mainly calculated using unobservable inputs such as future earnings performance of the Company’s various acquisitions and the expected timing of the payment.

(b)	The fair value of the interest rate swap is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay as of September 30, 2018 for contracts involving the same attributes and maturity dates.

The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3:

	Total
	(in millions)
Balance at September 30, 2017	$	(5	)
Additions		(3	)
Reductions		—
Payments		—
Balance at September 30, 2018	$	(8	)

The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, inventories, and property, plant, and equipment, are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the asset is written down to its fair value. In addition, an impairment analysis is performed at least annually for goodwill and indefinite-lived intangible assets.

Fair Value of Debt

Based on the level of interest rates prevailing at September 30, 2018, the fair value of the Company’s debt was $2.862 billion. Based on the level of interest rates prevailing at September 30, 2017, the fair value of the Company’s debt was $2.936 billion. The fair value of the Company’s debt instruments are determined using quoted market prices from less active markets or by using quoted market prices for instruments with identical terms and maturities; both approaches are considered a Level 2 measurement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Subsequent Events

12 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

E.M.P. Acquisition

On October 10, 2018, the Company acquired certain shares of E.M.P Merchandising Handelsgesellschaft mbH (“EMP Merchandising”), all of the share capital of MIG Merchandising Investment GmbH (“MIG”), certain shares of Large Popmerchandising BVBA (“Large”), and each of EMP Merchandising and MIG’s direct and indirect subsidiaries (collectively referred to as “EMP” or the “Acquired Companies”). EMP is a leading European music and entertainment e-tailer. The cash consideration paid at closing was approximately €166 million, which reflects an agreed enterprise value of the Acquired Companies of approximately €155 million (equivalent to approximately $180 million), as adjusted for, among other items, net debt and working capital of the Acquired Companies.

3.625% Secured Notes Offering

On October 9, 2018, Acquisition Corp. issued and sold €250 million in aggregate principal amount of 3.625% Senior Secured Notes due 2026 (the “3.625% Secured Notes”). Net proceeds of the offering were used to pay the purchase price of the previously announced acquisition of E.M.P Merchandising and to redeem €34.5 million of the 4.125% Secured Notes (as described above), and the remaining proceeds were used, or will be used, for general corporate purposes including open market purchases of a portion of our outstanding 4.875% Secured Notes and the partial redemption of the 5.625% Secured Notes.

Open Market Purchases

On October 9, 2018, Acquisition Corp. purchased, in the open market, $30 million aggregate principal amount of its outstanding 4.875% Senior Secured Notes due 2024 (the “4.875% Secured Notes”). The acquired notes were subsequently retired. Following retirement of the acquired notes, $220 million of the 4.875% Secured Notes remain outstanding.

Partial Redemption of 4.125% Secured Notes

On October 12, 2018, Acquisition Corp. redeemed €34.5 million aggregate principal amount of its 4.125% Senior Secured Notes due 2024 (the “4.125% Secured Notes”) using a portion of the proceeds from the offering of 3.625% Secured Notes described below. The redemption price for the 4.125% Secured Notes was approximately €36.17 million, equivalent to 103% of the principal amount of the 4.125% Secured Notes, plus accrued but unpaid interest thereon to, but excluding, the redemption date, which was October 12, 2018. Following the partial redemption of the 4.125% Secured Notes, €310.5 million of the 4.125% Secured Notes remain outstanding.

Partial Redemption of 5.625% Secured Notes

On November 5, 2018, Acquisition Corp. redeemed $26.55 million aggregate principal amount of its 5.625% Senior Secured Notes due 2022 (the “5.625% Secured Notes”). The redemption price for the 5.625% Secured Notes was approximately $27 million, equivalent to 102.813% of the principal amount of the 5.625% Secured Notes, plus accrued but unpaid interest thereon to, but excluding, the redemption date, which was November 5, 2018. Following the partial redemption of the 5.625% Secured Notes, $220.95 million of the 5.625% Secured Notes remain outstanding.

Quarterly Financial Information

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

WARNER MUSIC GROUP CORP.

2018 QUARTERLY FINANCIAL INFORMATION

(unaudited)

The following table sets forth the quarterly information for Warner Music Group Corp.

		Three months ended
		September 30,			June 30,			March 31,			December 31,
		2018			2018			2018			2017
	(in millions)
Revenues		$	1,039		$	958		$	963		$	1,045
Costs and expenses:
Cost of revenue			(583	)		(531	)		(488	)		(569	)
Selling, general and administrative expenses (a)			(398	)		(343	)		(337	)		(333	)
Amortization expense			(42	)		(56	)		(55	)		(53	)
Total costs and expenses			(1,023	)		(930	)		(880	)		(955	)
Operating income			16			28			83			90
Loss on extinguishment of debt			—			(7	)		(23	)		(1	)
Interest expense, net			(33	)		(33	)		(36	)		(36	)
Other (expense) income			2			394			(6	)		4
(Loss) income before income taxes			(15	)		382			18			57
Income tax (expense) benefit			2			(61	)		(19	)		(52	)
Net (loss) income			(13	)		321			(1	)		5
Less: income attributable to noncontrolling interest			(1	)		(1	)		(2	)		(1	)
Net (loss) income attributable to Warner Music Group Corp.		$	(14	)	$	320		$	(3	)	$	4

(a) Includes depreciation expense of:		$	(14	)	$	(15	)	$	(14	)	$	(12	)

Quarterly operating results can be disproportionately affected by a particularly strong or weak quarter. Therefore, these quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year.

WARNER MUSIC GROUP CORP.

2017 QUARTERLY FINANCIAL INFORMATION

(unaudited)

The following table sets forth the quarterly information for Warner Music Group Corp.

		Three months ended
		September 30,			June 30,			March 31,			December 31,
		2017			2017			2017			2016
	(in millions)
Revenues		$	917		$	917		$	825		$	917
Costs and expenses:
Cost of revenue			(501	)		(519	)		(415	)		(496	)
Selling, general and administrative expenses (a)			(368	)		(296	)		(282	)		(276	)
Amortization expense			(49	)		(51	)		(50	)		(51	)
Total costs and expenses			(918	)		(866	)		(747	)		(823	)
Operating income			(1	)		51			78			94
Loss on extinguishment of debt			—			(3	)		—			(32	)
Interest expense, net			(37	)		(36	)		(36	)		(40	)
Other (expense) income			(19	)		(21	)		(19	)		19
(Loss) income before income taxes			(57	)		(9	)		23			41
Income tax benefit (expense)			19			152			(3	)		(17	)
Net (loss) income			(38	)		143			20			24
Less: income attributable to noncontrolling interest			(1	)		(2	)		(1	)		(2	)
Net (loss) income attributable to Warner Music Group Corp.		$	(39	)	$	141		$	19		$	22

(a) Includes depreciation expense of:		$	(12	)	$	(13	)	$	(13	)	$	(12	)

Guarantor and Non-Guarantor Subsidiaries Financial Information

12 Months Ended

Sep. 30, 2018

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Guarantor and Non-Guarantor Subsidiaries Financial Information

WARNER MUSIC GROUP CORP.

Supplementary Information

Consolidating Financial Statements

The Company is the direct parent of Holdings, which is the direct parent of Acquisition Corp. As of September 30, 2018 Acquisition Corp. had issued and outstanding the 5.625% Senior Secured Notes due 2022, the 5.00% Senior Secured Notes due 2023, the 4.125% Senior Secured Notes due 2024, the 4.875% Senior Secured Notes due 2024, and the 5.50% Senior Notes due 2026 (together, the “Acquisition Corp. Notes”).

The Acquisition Corp. Notes are guaranteed by the Company and, in addition, are guaranteed by all of Acquisition Corp.’s domestic wholly-owned subsidiaries. The secured notes are guaranteed on a senior secured basis and the unsecured notes are guaranteed on an unsecured senior basis. The Company’s guarantee of the Acquisition Corp. Notes is full and unconditional. The guarantee of the Acquisition Corp. Notes by Acquisition Corp.’s domestic, wholly-owned subsidiaries is full, unconditional and joint and several. The following condensed consolidating financial statements are also presented for the information of the holders of the Acquisition Corp. Notes and present the results of operations, financial position and cash flows of (i) Acquisition Corp., which is the issuer of the Acquisition Corp. Notes, (ii) the guarantor subsidiaries of Acquisition Corp., (iii) the non-guarantor subsidiaries of Acquisition Corp. and (iv) the eliminations necessary to arrive at the information for Acquisition Corp. on a consolidated basis. Investments in consolidated subsidiaries are presented under the equity method of accounting. There are no restrictions on Acquisition Corp.’s ability to obtain funds from any of its wholly-owned subsidiaries through dividends, loans or advances.

The Company and Holdings are holding companies that conduct substantially all of their business operations through Acquisition Corp. Accordingly, the ability of the Company and Holdings to obtain funds from their subsidiaries is restricted by the indentures for the Acquisition Corp. Notes and the credit agreements for the Acquisition Corp. Senior Credit Facilities, including the Revolving Credit Facility and Senior Term Loan Facility.

Consolidating Balance Sheet

September 30, 2018

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—		$	169		$	345		$	—		$	514		$	—	$	—	$	—		$	514
Accounts receivable, net		—			262			185			—			447			—		—		—			447
Inventories		—			18			24			—			42			—		—		—			42
Royalty advances expected to be recouped within one year		—			79			44			—			123			—		—		—			123
Prepaid and other current assets		—			15			35			—			50			—		—		—			50
Total current assets		—			543			633			—			1,176			—		—		—			1,176
Due from (to) parent companies		488			(214	)		(274	)		—			—			—		—		—			—
Investments in and advances to consolidated subsidiaries		2,018			2,192			—			(4,210	)		—			675		675		(1,350	)		—
Royalty advances expected to be recouped after one year		—			93			60			—			153			—		—		—			153
Property, plant and equipment, net		—			155			74			—			229			—		—		—			229
Goodwill		—			1,370			322			—			1,692			—		—		—			1,692
Intangible assets subject to amortization, net		—			956			895			—			1,851			—		—		—			1,851
Intangible assets not subject to amortization		—			71			83			—			154			—		—		—			154
Deferred tax assets, net		—			—			11			—			11			—		—		—			11
Other assets		12			55			11			—			78			—		—		—			78
Total assets	$	2,518		$	5,221		$	1,815		$	(4,210	)	$	5,344		$	675	$	675	$	(1,350	)	$	5,344
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—		$	200		$	81		$	—		$	281		$	—	$	—	$	—		$	281
Accrued royalties		—			869			527			—			1,396			—		—		—			1,396
Accrued liabilities		—			195			228			—			423			—		—		—			423
Accrued interest		31			—			—			—			31			—		—		—			31
Deferred revenue		—			94			114			—			208			—		—		—			208
Other current liabilities		—			2			32			—			34			—		—		—			34
Total current liabilities		31			1,360			982			—			2,373			—		—		—			2,373
Long-term debt		2,819			—			—			—			2,819			—		—		—			2,819
Deferred tax liabilities, net		—			3			162			—			165			—		—		—			165
Other noncurrent liabilities		2			197			108			—			307			—		—		—			307
Total liabilities		2,852			1,560			1,252			—			5,664			—		—		—			5,664
Total Warner Music Group Corp. equity		(334	)		3,656			554			(4,210	)		(334	)		675		675		(1,350	)		(334	)
Noncontrolling interest		—			5			9			—			14			—		—		—			14
Total equity		(334	)		3,661			563			(4,210	)		(320	)		675		675		(1,350	)		(320	)
Total liabilities and equity	$	2,518		$	5,221		$	1,815		$	(4,210	)	$	5,344		$	675	$	675	$	(1,350	)	$	5,344

Consolidating Balance Sheet

September 30, 2017

	WMG										WMG		WMG		Warner					Warner
	Acquisition				Non-						Acquisition		Holdings		Music					Music
	Corp.		Guarantor		Guarantor						Corp.		Corp.		Group					Group Corp.
	(issuer)		Subsidiaries		Subsidiaries			Eliminations			Consolidated		(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—	$	347	$	300		$	—		$	647	$	—	$	—	$	—		$	647
Accounts receivable, net		—		214		190			—			404		—		—		—			404
Inventories		—		12		27			—			39		—		—		—			39
Royalty advances expected to be recouped within one year		—		89		52			—			141		—		—		—			141
Prepaid and other current assets		—		15		29			—			44		—		—		—			44
Total current assets		—		677		598			—			1,275		—		—		—			1,275
Due from (to) parent companies		418		96		(514	)		—			—		—		—		—			—
Investments in and advances to consolidated subsidiaries		2,721		1,312		—			(4,033	)		—		377		377		(754	)		—
Royalty advances expected to be recouped after one year		—		109		63			—			172		—		—		—			172
Property, plant and equipment, net		—		139		74			—			213		—		—		—			213
Goodwill		—		1,368		317			—			1,685		—		—		—			1,685
Intangible assets subject to amortization, net		—		1,029		1,061			—			2,090		—		—		—			2,090
Intangible assets not subject to amortization		—		71		46			—			117		—		—		—			117
Deferred tax assets, net		—		89		8			—			97		—		—		—			97
Other assets		7		45		17			—			69		—		—		—			69
Total assets	$	3,146	$	4,935	$	1,670		$	(4,033	)	$	5,718	$	377	$	377	$	(754	)	$	5,718
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—	$	135	$	73		$	—		$	208	$	—	$	—	$	—		$	208
Accrued royalties		—		732		531			—			1,263		—		—		—			1,263
Accrued liabilities		—		144		221			—			365		—		—		—			365
Accrued interest		41		—		—			—			41		—		—		—			41
Deferred revenue		—		125		72			—			197		—		—		—			197
Other current liabilities		—		3		23			—			26		—		—		—			26
Total current liabilities		41		1,139		920			—			2,100		—		—		—			2,100
Long-term debt		2,811		—		—			—			2,811		—		—		—			2,811
Deferred tax liabilities, net		—		—		190			—			190		—		—		—			190
Other noncurrent liabilities		1		196		112			—			309		—		—		—			309
Total liabilities		2,853		1,335		1,222			—			5,410		—		—		—			5,410
Total Warner Music Group Corp. equity		293		3,596		437			(4,033	)		293		377		377		(754	)		293
Noncontrolling interest		—		4		11			—			15		—		—		—			15
Total equity		293		3,600		448			(4,033	)		308		377		377		(754	)		308
Total liabilities and equity	$	3,146	$	4,935	$	1,670		$	(4,033	)	$	5,718	$	377	$	377	$	(754	)	$	5,718

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	2,284		$	2,245		$	(524	)	$	4,005		$	—	$	—	$	—		$	4,005
Costs and expenses:
Cost of revenue		—			(1,090	)		(1,442	)		361			(2,171	)		—		—		—			(2,171	)
Selling, general and administrative expenses		—			(1,040	)		(534	)		163			(1,411	)		—		—		—			(1,411	)
Amortization of intangible assets		—			(96	)		(110	)		—			(206	)		—		—		—			(206	)
Total costs and expenses		—			(2,226	)		(2,086	)		524			(3,788	)		—		—		—			(3,788	)
Operating income (loss)		—			58			159			—			217			—		—		—			217
Loss on extinguishment of debt		(31	)		—			—			—			(31	)		—		—		—			(31	)
Interest (expense) income, net		(116	)		4			(26	)		—			(138	)		—		—		—			(138	)
Equity gains from consolidated subsidiaries		207			122			—			(329	)		—			307		307		(614	)		—
Other expense, net		377			7			10			—			394			—		—		—			394
(Loss) income before income taxes		437			191			143			(329	)		442			307		307		(614	)		442
Income tax benefit (expense)		(130	)		(130	)		(39	)		169			(130	)		—		—		—			(130	)
Net income		307			61			104			(160	)		312			307		307		(614	)		312
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—		—		—			(5	)
Net income attributable to Warner Music Group Corp.	$	307		$	60		$	100		$	(160	)	$	307		$	307	$	307	$	(614	)	$	307

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2017

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,978		$	2,008		$	(410	)	$	3,576		$	—	$	—	$	—		$	3,576
Costs and expenses:
Cost of revenue		—			(922	)		(1,275	)		266			(1,931	)		—		—		—			(1,931	)
Selling, general and administrative expenses		(1	)		(900	)		(464	)		143			(1,222	)		—		—		—			(1,222	)
Amortization of intangible assets		—			(100	)		(101	)		—			(201	)		—		—		—			(201	)
Total costs and expenses		(1	)		(1,922	)		(1,840	)		409			(3,354	)		—		—		—			(3,354	)
Operating income (loss)		(1	)		56			168			(1	)		222			—		—		—			222
Loss on extinguishment of debt		(35	)		—			—			—			(35	)		—		—		—			(35	)
Interest (expense) income, net		(95	)		2			(56	)		—			(149	)		—		—		—			(149	)
Equity gains from consolidated subsidiaries		124			87			—			(210	)		1			143		143		(286	)		1
Other expense, net		(1	)		(17	)		(23	)		—			(41	)		—		—		—			(41	)
(Loss) income before income taxes		(8	)		128			89			(211	)		(2	)		143		143		(286	)		(2	)
Income tax benefit (expense)		151			154			(30	)		(124	)		151			—		—		—			151
Net income		143			282			59			(335	)		149			143		143		(286	)		149
Less: income attributable to noncontrolling interest		—			(1	)		(5	)		—			(6	)		—		—		—			(6	)
Net income attributable to Warner Music Group Corp.	$	143		$	281		$	54		$	(335	)	$	143		$	143	$	143	$	(286	)	$	143

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner					Warner
	Acquisition						Non-						Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,668		$	1,887		$	(309	)	$	3,246		$	—		$	—	$	—		$	3,246
Costs and expenses:
Cost of revenue		—			(703	)		(1,192	)		188			(1,707	)		—			—		—			(1,707	)
Selling, general and administrative expenses		—			(739	)		(464	)		121			(1,082	)		—			—		—			(1,082	)
Amortization of intangible assets		—			(118	)		(125	)		—			(243	)		—			—		—			(243	)
Total costs and expenses		—			(1,560	)		(1,781	)		309			(3,032	)		—			—		—			(3,032	)
Operating income		—			108			106			—			214			—			—		—			214
Loss on extinguishment of debt		(4	)		—			—			—			(4	)		(14	)		—		—			(18	)
Interest (expense) income, net		(84	)		3			(79	)		1			(159	)		(14	)		—		—			(173	)
Equity gains (losses) from consolidated subsidiaries		162			74			—			(236	)		—			53			25		(78	)		—
Other income (expense), net		(10	)		2			26			—			18			—			—		—			18
Income (loss) before income taxes		64			187			53			(235	)		69			25			25		(78	)		41
Income tax (expense) benefit		(11	)		(20	)		1			19			(11	)		—			—		—			(11	)
Net income (loss)		53			167			54			(216	)		58			25			25		(78	)		30
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—		—			(5	)
Net income (loss) attributable to Warner Music Group Corp.	$	53		$	166		$	50		$	(216	)	$	53		$	25		$	25	$	(78	)	$	25

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	307		$	61		$	104		$	(160	)	$	312		$	307		$	307		$	(614	)	$	312
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		(13	)		—			13			(13	)		(13	)		(13	)		(13	)		26			(13	)
Minimum pension liability		1			—			1			(1	)		1			1			1			(2	)		1
Deferred (loss) on derivative financial instruments		3			—			3			(3	)		3			3			3			(6	)		3
Other comprehensive income (loss), net of tax:		(9	)		—			17			(17	)		(9	)		(9	)		(9	)		18			(9	)
Total comprehensive income		298			61			121			(177	)		303			298			298			(596	)		303
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—			(5	)
Comprehensive income attributable to Warner Music Group Corp.	$	298		$	60		$	117		$	(177	)	$	298		$	298		$	298		$	(596	)	$	298

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2017

	WMG											WMG			WMG		Warner					Warner
	Acquisition					Non-						Acquisition			Holdings		Music					Music
	Corp.		Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Net income	$	143	$	282		$	59		$	(335	)	$	149		$	143	$	143	$	(286	)	$	149
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		30		—			(30	)		30			30			32		32		(64	)		30
Minimum pension liability		7		—			7			(7	)		7			7		7		(14	)		7
Deferred (loss) on derivative financial instruments		—		(1	)		—			1			—			—		—		—			—
Other comprehensive income (loss), net of tax:		37		(1	)		(23	)		24			37			39		39		(78	)		37
Total comprehensive income		180		281			36			(311	)		186			182		182		(364	)		186
Less: income attributable to noncontrolling interest		—		(1	)		(5	)		—			(6	)		—		—		—			(6	)
Comprehensive income attributable to Warner Music Group Corp.	$	180	$	280		$	31		$	(311	)	$	180		$	182	$	182	$	(364	)	$	180

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment		(44	)		—			(44	)		44			(44	)		(44	)		(44	)		88			(44	)
Minimum pension liability		(7	)		—			(7	)		7			(7	)		(7	)		(7	)		14			(7	)
Deferred (loss) gain on derivative financial instruments		—			(1	)		—			1			—			—			—			—			—
Other comprehensive (loss) income , net of tax:		(51	)		(1	)		(51	)		52			(51	)		(51	)		(51	)		102			(51	)
Total comprehensive (loss) income		2			166			3			(164	)		7			(26	)		(26	)		24			(21	)
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—			(5	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	2		$	165		$	(1	)	$	(164	)	$	2		$	(26	)	$	(26	)	$	24		$	(26	)

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	307		$	61		$	104		$	(160	)	$	312		$	307		$	307		$	(614	)	$	312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			136			125			—			261			—			—			—			261
Unrealized gains/losses and remeasurement of foreign denominated loans		(3	)		—			—			—			(3	)		—			—			—			(3	)
Deferred income taxes		—			—			66			—			66			—			—			—			66
Loss on extinguishment of debt		31			—			—			—			31			—			—			—			31
Net loss (gain) on divestitures and investments		(504	)		78			37			—			(389	)		—			—			—			(389	)
Non-cash interest expense		6			—			—			—			6			—			—			—			6
Equity-based compensation expense		—			62			—			—			62			—			—			—			62
Equity losses (gains), including distributions		(207	)		(122	)		—			329			—			(307	)		(307	)		614			—
Changes in operating assets and liabilities:
Accounts receivable		—			(48	)		5			—			(43	)		—			—			—			(43	)
Inventories		—			(5	)		2			—			(3	)		—			—			—			(3	)
Royalty advances		—			24			7			—			31			—			—			—			31
Accounts payable and accrued liabilities		—			449			(198	)		(169	)		82			—			—			—			82
Royalty payables		—			48			(26	)		—			22			—			—			—			22
Accrued interest		(10	)		—			—			—			(10	)		—			—			—			(10	)
Deferred revenue		—			(48	)		44			—			(4	)		—			—			—			(4	)
Other balance sheet changes		—			89			(85	)		—			4			—			—			—			4
Net cash provided by (used in) operating activities		(380	)		724			81			—			425			—			—			—			425
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(11	)		(3	)		—			(14	)		—			—			—			(14	)
Capital expenditures		—			(60	)		(14	)		—			(74	)		—			—			—			(74	)
Investments and acquisitions of businesses, net		—			(17	)		(6	)		—			(23	)		—			—			—			(23	)
Divestitures, net		504			12			—			—			516			—			—			—			516
Advance to Issuer		(99	)		—			—			99			—			—			—			—			—
Net cash (used in) provided by investing activities		405			(76	)		(23	)		99			405			—			—			—			405
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		—			(925	)		—			—			(925	)		—			—			—			(925	)
Proceeds from issuance of Acquisition Corp. 5.50% Senior Notes		325			—			—			—			325			—			—			—			325
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility		320			—			—			—			320			—			—			—			320
Repayment of Acquisition Corp. 6.75% Senior Notes		(635	)		—			—			—			(635	)		—			—			—			(635	)
Call premiums paid on early redemption of debt		(23	)		—			—			—			(23	)		—			—			—			(23	)
Deferred financing costs paid		(12	)		—			—			—			(12	)		—			—			—			(12	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Change in due (from) to issuer		—			99			—			(99	)		—			—			—			—			—
Net cash (used in) provided by financing activities		(25	)		(826	)		(5	)		(99	)		(955	)		—			—			—			(955	)
Effect of exchange rate changes on cash and equivalents		—			—			(8	)		—			(8	)		—			—			—			(8	)
Net increase in cash and equivalents		—			(178	)		45			—			(133	)		—			—			—			(133	)
Cash and equivalents at beginning of period		—			347			300			—			647			—			—			—			647
Cash and equivalents at end of period	$	—		$	169		$	345		$	—		$	514		$	—		$	—		$	—		$	514

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2017

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	143		$	282		$	59		$	(335	)	$	149		$	143		$	143		$	(286	)	$	149
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			137			114			—			251			—			—			—			251
Unrealized gains/losses and remeasurement of foreign denominated loans		27			—			(3	)		—			24			—			—			—			24
Deferred income taxes		2			—			(194	)		—			(192	)		—			—			—			(192	)
Loss on extinguishment of debt		35			—			—			—			35			—			—			—			35
Net loss (gain) on divestitures and investments		—			33			(16	)		—			17			—			—			—			17
Non-cash interest expense		8			—			—			—			8			—			—			—			8
Equity-based compensation expense		—			70			—			—			70			—			—			—			70
Equity losses (gains), including distributions		(124	)		(86	)		—			210			—			(143	)		(143	)		286			—
Changes in operating assets and liabilities:
Accounts receivable		—			(37	)		(23	)		—			(60	)		—			—			—			(60	)
Inventories		—			2			(1	)		—			1			—			—			—			1
Royalty advances		—			2			15			—			17			—			—			—			17
Accounts payable and accrued liabilities		(120	)		(4	)		47			125			48			—			—			—			48
Royalty payables		—			126			10			—			136			—			—			—			136
Accrued interest		3			—			—			—			3			—			—			—			3
Deferred revenue		—			(6	)		28			—			22			—			—			—			22
Other balance sheet changes		5			(204	)		205			—			6			—			—			—			6
Net cash provided by (used in) operating activities		(21	)		315			241			—			535			—			—			—			535
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(9	)		(7	)		—			(16	)		—			—			—			(16	)
Capital expenditures		—			(31	)		(13	)		—			(44	)		—			—			—			(44	)
Investments and acquisitions of businesses, net		—			(6	)		(133	)		—			(139	)		—			—			—			(139	)
Divestitures, net		—			42			31			—			73			—			—			—			73
Advance to Issuer		60			—			—			(60	)		—			—			—			—			—
Net cash (used in) provided by investing activities		60			(4	)		(122	)		(60	)		(126	)		—			—			—			(126	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		—			(84	)		—			—			(84	)		84			—			—			—
Proceeds from issuance of Acquisition Corp. 4.125% Senior Secured Notes		380			—			—			—			380			—			—			—			380
Proceeds from issuance of Acquisition Corp. 4.875% Senior Secured Notes		250			—			—			—			250			—			—			—			250
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility		22			—			—			—			22			—			—			—			22
Repayment of Acquisition Corp. 6.00% Senior Secured Notes		(450	)		—			—			—			(450	)		—			—			—			(450	)
Repayment of Acquisition Corp. 6.25% Senior Secured Notes		(173	)		—			—			—			(173	)		—			—			—			(173	)
Repayment of Acquisition Corp. 5.625% Senior Secured Notes		(28	)		—			—			—			(28	)		—			—			—			(28	)
Call premiums paid on early redemption of debt		(27	)		—			—			—			(27	)		—			—			—			(27	)
Deferred financing costs paid		(13	)		—			—			—			(13	)		—			—			—			(13	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Dividends paid		—			—			—			—			—			(84	)		—			—			(84	)
Change in due (from) to issuer		—			(60	)		—			60			—			—			—			—			—
Net cash (used in) provided by financing activities		(39	)		(144	)		(5	)		60			(128	)		—			—			—			(128	)
Effect of exchange rate changes on cash and equivalents		—			—			7			—			7			—			—			—			7
Net increase in cash and equivalents		—			167			121			—			288			—			—			—			288
Cash and equivalents at beginning of period		—			180			179			—			359			—			—			—			359
Cash and equivalents at end of period	$	—		$	347		$	300		$	—		$	647		$	—		$	—		$	—		$	647

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			156			137			—			293			—			—			—			293
Unrealized gains/losses and remeasurement of foreign denominated loans		—			—			—			—			—			—			—			—			—
Deferred income taxes		—			—			(26	)		—			(26	)		—			—			—			(26	)
Loss on extinguishment of debt		4			—			—			—			4			14			—			—			18
Net gain on divestitures		—			(3	)		(6	)		—			(9	)		—			—			—			(9	)
Gain on sale of real estate		—			—			(24	)		—			(24	)		—			—			—			(24	)
Non-cash interest expense		10			—			—			—			10			1			—			—			11
Equity-based compensation expense		—			23			—			—			23			—			—			—			23
Equity losses (gains), including distributions		(162	)		(74	)		—			236			—			(53	)		(25	)		78			—
Changes in operating assets and liabilities:
Accounts receivable		—			(7	)		24			—			17			—			—			—			17
Inventories		—			—			—			—			—			—			—			—			—
Royalty advances		—			1			(14	)		—			(13	)		—			—			—			(13	)
Accounts payable and accrued liabilities		—			142			(99	)		(20	)		23			—			—			—			23
Royalty payables		—			93			(44	)		—			49			—			—			—			49
Accrued interest		(10	)		—			—			—			(10	)		(10	)		—			—			(20	)
Deferred revenue		—			(4	)		(31	)		—			(35	)		—			—			—			(35	)
Other balance sheet changes		(4	)		(10	)		19			—			5			—			—			—			5
Net cash (used in) provided by operating activities		(109	)		484			(10	)		—			365			(23	)		—			—			342
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(16	)		(9	)		—			(25	)		—			—			—			(25	)
Capital expenditures		—			(30	)		(12	)		—			(42	)		—			—			—			(42	)
Investments and acquisitions of businesses, net		—			(10	)		(18	)		—			(28	)		—			—			—			(28	)
Divestitures, net		—			8			37			—			45			—			—			—			45
Proceeds from the sale of real estate		—			—			42			—			42			—			—			—			42
Advance to Issuer		329			—			—			(329	)		—			—			—			—			—
Net cash (used in) provided by investing activities		329			(48	)		40			(329	)		(8	)		—			—			—			(8	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(183	)		—			—			—			(183	)		183			—			—			—
Repayment of Acquisition Corp. Senior Term Loan Facility		(309	)		—			—			—			(309	)		—			—			—			(309	)
Proceeds from issuance of Acquisition Corp. 5.00% Senior Secured Notes		300			—			—			—			300			—			—			—			300
Repayment of Holdings 13.75% Senior Notes		—			—			—			—			—			(150	)		—			—			(150	)
Repayment of Acquisition Corp. 6.75% Senior Notes		(24	)		—			—			—			(24	)		—			—			—			(24	)
Financing costs paid		—			—			—			—			—			(10	)		—			—			(10	)
Deferred financing costs paid		(4	)		—			—			—			(4	)		—			—			—			(4	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Repayment of capital lease obligations		—			—			(14	)		—			(14	)		—			—			—			(14	)
Change in due (from) to issuer		—			(329	)		—			329			—			—			—			—			—
Net cash (used in) provided by financing activities		(220	)		(329	)		(19	)		329			(239	)		23			—			—			(216	)
Effect of exchange rate changes on cash and equivalents		—			—			(5	)		—			(5	)		—			—			—			(5	)
Net increase in cash and equivalents		—			107			6			—			113			—			—			—			113
Cash and equivalents at beginning of period		—			73			173			—			246			—			—			—			246
Cash and equivalents at end of period	$	—		$	180		$	179		$	—		$	359		$	—		$	—		$	—		$	359

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2018

Valuation And Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts

			Additions
	Balance at		Charged to							Balance at
	Beginning		Cost and							End of
Description	of Period		Expenses		Deductions			Other (a)		Period
	(in millions)
Year Ended September 30, 2018
Allowance for doubtful accounts	$	18	$	4	$	(4	)	$	—	$	18
Reserves for sales returns		33		108		(113	)		—		28
Allowance for deferred tax asset		193		33		(20	)		—		206
Year Ended September 30, 2017
Allowance for doubtful accounts	$	19	$	3	$	(4	)	$	—	$	18
Reserves for sales returns		33		119		(119	)		—		33
Allowance for deferred tax asset		310		23		(140	)		—		193
Year Ended September 30, 2016
Allowance for doubtful accounts	$	12	$	6	$	—		$	1	$	19
Reserves for sales returns		44		131		(142	)		—		33
Allowance for deferred tax asset		344		27		(61	)		—		310

(a)	Other changes due to acquisitions and dispositions.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. The fiscal year ended September 30, 2018 ended on September 28, 2018, the fiscal year ended September 30, 2017 ended on September 29, 2017, and the fiscal year ended September 30, 2016 ended on September 30, 2016. For convenience purposes, the Company continues to date its financial statements as of September 30.
Basis of Consolidation	Basis of Consolidation The accompanying financial statements present the consolidated accounts of all entities in which the Company has a controlling voting interest and/or variable interest required to be consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”) requires the Company first evaluate its investments to determine if any investments qualify as a variable interest entity (“VIE”). A VIE is consolidated if the Company is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has both (i) the power to control the most significant activities of the VIE and (ii) either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If an entity is not deemed to be a VIE, the Company consolidates the entity if the Company has a controlling voting interest.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior fiscal years’ consolidated financial statements to conform to the current fiscal-year presentation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. Actual results could differ from those estimates.
Business Combinations	Business Combinations The Company accounts for its business acquisitions under the FASB ASC Topic 805, Business Combinations (“ASC 805”) guidance for business combinations. The total cost of acquisitions is allocated to the underlying identifiable net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items.
Cash and Equivalents	Cash and Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. The Company includes checks outstanding at year end as a component of accounts payable, instead of a reduction in its cash balance where there is not a right of offset in the related bank accounts.
Accounts Receivable	Accounts Receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value.
Sales Returns and Allowance for Doubtful Accounts	Sales Returns and Allowance for Doubtful Accounts Management’s estimate of Recorded Music physical products that will be returned, and the amount of receivables that will ultimately be collected is an area of judgment affecting reported revenues and operating income. In determining the estimate of physical product sales that will be returned, management analyzes vendor sales of product, historical return trends, current economic conditions, changes in customer demand and commercial acceptance of our products. Based on this information, management reserves a percentage of each dollar of physical product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale. Similarly, the Company monitors customer credit risk related to accounts receivable. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. On an ongoing basis, the Company tracks customer exposure based on news reports, ratings agency information, reviews of customer financial data and direct dialogue with customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the payment terms previously granted to them should be modified. The Company also monitors payment levels from customers, and a provision for estimated uncollectible amounts is maintained based on such payment levels, historical experience, management’s views on trends in the overall receivable agings and, for larger accounts, analyses of specific risks on a customer specific basis.
Concentration of Credit Risk	Concentration of Credit Risk Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. As of September 30, 2018 and September 30, 2017, Spotify represented 18% and 15%, respectively, of the Company’s accounts receivable balance. No other single customer accounted for more than 10% of accounts receivable in either period. The Company, by policy, routinely assesses the financial strength of its customers. As such, the Company does not believe there is any significant collection risk. In the Music Publishing business, the Company collects a significant portion of its royalties from copyright collection societies around the world. Collection societies and associations generally are not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. Accordingly, the Company does not believe there is any significant collection risk from such societies.
Inventories	Inventories Inventories consist of DVDs, CDs, Vinyl and related music products. Inventories are stated at the lower of cost or estimated realizable value. Cost is determined using first-in, first-out (“FIFO”) and average cost methods, which approximate cost under the FIFO method. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost.
Derivative and Financial Instruments	Derivative and Financial Instruments The Company accounts for these investments as required by the FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized on the balance sheet at fair value. ASC 815 also provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. In addition, the ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. The carrying value of the Company’s financial instruments approximates fair value, except for certain differences relating to long-term, fixed-rate debt (see Note 15) and other financial instruments that are not significant. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment existing at the date of the Merger or acquired in conjunction with subsequent business combinations are recorded at fair value. All other additions are recorded at historical cost. Depreciation is calculated using the straight-line method based upon the estimated useful lives of depreciable assets as follows: five to seven years for furniture and fixtures, periods of up to five years for computer equipment and periods of up to five years for machinery and equipment. Buildings are depreciated over periods of up to forty years. Leasehold improvements are depreciated over the life of the lease or estimated useful lives of the improvements, whichever period is shorter.
Accounting for Goodwill and Other Intangible Assets	Accounting for Goodwill and Other Intangible Assets In accordance with FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), the Company accounts for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price over the fair value of net assets, including the amount assigned to identifiable intangible assets. Pursuant to this guidance, the Company does not amortize the goodwill balance and instead, performs an annual impairment test to assess the fair value of goodwill over its carrying value. Identifiable intangible assets with finite lives are amortized over their useful lives. Goodwill is tested annually for impairment as of July 1 and at any time upon the occurrence of certain events or changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, its goodwill is not impaired and the second step of the impairment test is not necessary. If the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. The second step of the goodwill impairment test compares the implied fair value of the reporting unit goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess. The Company performs an annual impairment test of its indefinite-lived intangible assets as of July 1 of each fiscal year, unless events occur which trigger the need for an earlier impairment test. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conduct a quantitative analysis if the Company (i) determines that such an impairment is more likely than not to exist, or (ii) foregoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, then an impairment loss is recognized in an amount equal to that excess. The Company generally determines the fair value of an indefinite-lived intangible asset using a DCF analysis, such as the relief from royalty method, which is used in estimating the fair value of the Company’s trademarks. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar trademarks are being licensed in the marketplace. The impairment tests require management to make assumptions about future conditions impacting the value of the indefinite-lived intangible assets, including projected growth rates, cost of capital, effective tax rates, tax amortization periods, royalty rates, market share and others.
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets The Company periodically reviews the carrying value of its long-lived assets, including finite lived intangibles, property, plant and equipment and amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan to dispose of the assets, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. If it is determined that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life would be changed, and the remaining carrying amount of the asset would be amortized prospectively over that revised remaining useful life.
Foreign Currency Translation	Foreign Currency Translation The financial position and operating results of substantially all foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity as a component of accumulated other comprehensive loss.
Revenues	Revenues Recorded Music As required by FASB ASC Topic 605, Revenue Recognition (“ASC 605”), the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and title and risk of loss have been transferred. In accordance with industry practice and as is customary in many territories, certain products, such as CDs and DVDs, are sold to customers with the right to return unsold items. Revenues from such sales are generally recognized upon shipment based on gross sales less a provision for future estimated returns. Revenues from the sale of Recorded Music products through digital distribution channels are recognized when the products are sold and related sales accounting reports are delivered by the providers. Music Publishing Music Publishing revenues are earned from the receipt of royalties relating to the licensing of rights in musical compositions, and the sale of published sheet music and songbooks. The receipt of royalties principally relates to amounts earned from the public performance of copyrighted material, the mechanical reproduction of copyrighted material on recorded media including digital formats, and the use of copyrighted material in synchronization with visual images. Music publishing royalties, except for synchronization royalties, generally are recognized as revenue when cash is received. Synchronization revenue is typically recognized as revenue on an accrual basis when all revenue recognition criteria are met in accordance with ASC 605. Gross Versus Net Revenue Classification In the normal course of business, the Company acts as an intermediary or agent with respect to certain payments received from third parties. For example, the Company distributes music product on behalf of third-party record labels. As required by FASB ASC Subtopic 605-45, Principal Agent Considerations, such transactions are recorded on a “gross” or “net” basis depending on whether the Company is acting as the “principal” in the transaction or acting as an “agent” in the transaction. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership and, accordingly, revenues are recorded on a gross basis. For those transactions in which the Company does not have substantial risks and rewards of ownership, the Company is considered an agent and, accordingly, revenues are recorded on a net basis. To the extent revenues are recorded on a gross basis, any participations and royalties paid to third parties are recorded as expenses so that the net amount (gross revenues less expenses) flows through operating income. To the extent revenues are recorded on a net basis, revenues are reported based on the amounts received, less participations and royalties paid to third parties. In both cases, the impact on operating income is the same whether the Company records the revenues on a gross or net basis. Based on an evaluation of the individual terms of each contract and whether the Company is acting as principal or agent, the Company generally records revenues from the distribution of recorded music product on behalf of third-party record labels on a gross basis. However, revenues are recorded on a net basis for recorded music compilations distributed by other record companies where the Company has a right to participate in the profits.
Royalty Advances and Royalty Costs	Royalty Advances and Royalty Costs The Company regularly commits to and pays royalty advances to its recording artists and songwriters in respect of future sales. The Company accounts for these advances under the related guidance in FASB ASC Topic 928, Entertainment—Music (“ASC 928”). Under ASC 928, the Company capitalizes as assets certain advances that it believes are recoverable from future royalties to be earned by the recording artist or songwriter. Advances vary in both amount and expected life based on the underlying recording artist or songwriter. The Company’s decision to capitalize an advance to a recording artist or songwriter as an asset requires significant judgment as to the recoverability of the advance. The recoverability is assessed upon initial commitment of the advance based upon the Company’s forecast of anticipated revenue from the sale of future and existing albums or songs. In determining whether the advance is recoverable, the Company evaluates the current and past popularity of the recording artist or songwriter, the sales history of the recording artist or songwriter, the initial or expected commercial acceptability of the product, the current and past popularity of the genre of music that the product is designed to appeal to, and other relevant factors. Based upon this information, the Company expenses the portion of any advance that it believes is not recoverable. In most cases, advances to recording artists or songwriters without a history of success and evidence of current or past popularity will be expensed immediately. Significant advances are individually assessed for recoverability continuously and at minimum on a quarterly basis. As part of the ongoing assessment of recoverability, the Company monitors the projection of future sales based on the current environment, the recording artist’s or songwriter’s ability to meet their contractual obligations as well as the Company’s intent to support future album releases or songs from the recording artist or songwriter. To the extent that a portion of an outstanding advance is no longer deemed recoverable, that amount will be expensed in the period the determination is made.
Advertising	Advertising As required by the FASB ASC Subtopic 720-35, Advertising Costs (“ASC 720-35”), advertising costs, including costs to produce music videos used for promotional purposes, are expensed as incurred. Advertising expense amounted to approximately $104 million, $97 million, and $91 million for the fiscal years ended September 30, 2018, 2017 and 2016, respectively. Deferred advertising costs, which principally relate to advertisements that have been paid for but not been exhibited or services that have not been received, were not material for all periods presented.
Share-Based Compensation	Share-Based Compensation The Company accounts for share-based payments as required by FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense. Under the fair value recognition provision of ASC 718, equity classified share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price. During fiscal year 2013, the Company initiated a long term incentive plan that has liability classification for share-based compensation awards and continues to be effective through September 30, 2018.
Income Taxes	Income Taxes Income taxes are provided using the asset and liability method presented by FASB ASC Topic 740, Income Taxes (“ASC 740”). Under this method, income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current fiscal year and include the results of any differences between U.S. GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating loss, capital loss and general business credit carryforwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statements and income tax purposes, as determined under enacted tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). In accordance with ASC 740, the Company recorded the impacts in the period of enactment. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company’s tax returns are more likely than not of being sustained.
New Accounting Pronouncements	New Accounting Pronouncements In October 2017, the Company adopted ASU 2016-09, Compensation - Stock Compensation ("ASU 2016-09"). This ASU provides amended guidance which simplifies the accounting for share-based payment transactions involving multiple aspects of the accounting for share-based transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The adoption of ASU 2016-09 did not have any effect on the Company’s consolidated financial statements and footnote disclosures as of September 30, 2018. In May 2014, the FASB issued guidance codified in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which replaces the guidance in former ASC 605, Revenue Recognition and ASC 928-605, Entertainment – Music. The amendment was the result of a joint effort by the FASB and the International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and international financial reporting standards ("IFRS"). The joint project clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. ASC 606 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The update may be applied using one of two methods: full retrospective application to each prior reporting period presented, or modified retrospective application with the cumulative effect of initially applying the update recognized at the date of initial application. The Company will adopt ASC 606 on October 1, 2018 under the modified retrospective method. The Company has substantially completed its assessment of the impact of adoption of this new guidance and believes the most significant impact will be a change in the timing of revenue recognition in its Music Publishing segment as well as international broadcast rights within Recorded Music. The Company generally records revenues from the licensing of publishing rights and international broadcast fees when cash is received. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage. Additionally, for certain licenses where the consideration is fixed and the intellectual property being licensed is static, revenue will be recognized at the point in time when control of the license is transferred to the customer. The Company’s evaluation of the impact this standard will have on its consolidated financial statements is ongoing and primarily relates to the quantification of the adoption date licensing accrual. Based on efforts to date, the cumulative-effect adjustment upon adoption of the new revenue recognition standard as of October 1, 2018, which primarily relates to the aforementioned accrual of licensing revenue, is expected to decrease the opening balance of accumulated deficit by approximately $150 million, net of tax. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU will require that equity investments, except those investments under the equity method of accounting, are measured at fair value with changes in fair value recognized in net income. The Company may elect to measure equity investments that do not have a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price. The Company will adopt ASU 2016-01 beginning October 1, 2018 and this adoption is not expected to have a significant impact on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). This ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018, and interim periods within those years. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). This ASU provides specific guidance of how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The adoption of this standard is not expected to have an impact on the Company’s financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). This ASU requires the recognition of current and deferred income taxes for intra-entity asset transfers when the transaction occurs. ASU 2016-16 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. The Company will adopt ASU 2016-16 beginning October 1, 2018 and this adoption is not expected to have a significant impact on the Company’s financial statements. In January of 2017, the FASB issued ASU 2017-01, Business Combinations, to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The Company will adopt the new standard on October 1, 2018. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to accumulated deficit as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures. In February 2018, FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income to accumulated deficit for stranded tax effects resulting from the Tax Act. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the impact of the adoption of this standard on its financial statements and disclosures. In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). This ASU allows companies, for one year following the enactment date, to consider the impact of the Tax Act as “provisional” when a company can make a reasonable estimate but does not have the necessary information available, prepared or analyzed in reasonable detail to finalize its accounting for the impact of the Tax Act. A company may need to reflect adjustments to its provisional amounts upon obtaining, preparing or analyzing additional information about facts and circumstances that existed at the period of enactment. The Company has adopted this standard on its financial statements and disclosures.

Comprehensive (Loss) Income (Tables)

12 Months Ended

Sep. 30, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

	Foreign			Minimum			Deferred Gains		Accumulated
	Currency			Pension			On Derivative		Other
	Translation			Liability			Financial		Comprehensive
	Loss			Adjustment			Instruments		Loss, net
	(in millions)
Balance at September 30, 2015	$	(157	)	$	(10	)	$	—	$	(167	)
Other comprehensive loss (a)		(44	)		(6	)		—		(50	)
Amounts reclassified from accumulated other comprehensive income		—			(1	)		—		(1	)
Balance at September 30, 2016	$	(201	)	$	(17	)	$	—	$	(218	)
Other comprehensive income (a)		30			8			—		38
Amounts reclassified from accumulated other comprehensive income		—			(1	)		—		(1	)
Balance at September 30, 2017	$	(171	)	$	(10	)	$	—	$	(181	)
Other comprehensive loss (a)		(13	)		1			3		(9	)
Amounts reclassified from accumulated other comprehensive income		—			—			—		—
Balance at September 30, 2018	$	(184	)	$	(9	)	$	3	$	(190	)

(a)	Includes historical foreign currency translation related to certain intra-entity transactions that are no longer of a long-term investment nature of $0 million, $(19) million and $(109) million during the fiscal year ended September 30, 2018, 2017 and 2016, respectively.

Property, Plant and Equipment (Tables)

12 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consist of the following:

	September 30,			September 30,
	2018			2017
	(in millions)
Land	$	11		$	11
Buildings and improvements		109			99
Furniture and fixtures		11			10
Computer hardware and software		302			262
Construction in progress		42			30
Machinery and equipment		11			11
Gross Property, Plant and Equipment	$	486		$	423
Less accumulated depreciation		(257	)		(210	)
Net Property, Plant and Equipment	$	229		$	213

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Goodwill for Each Reportable Segment

The following analysis details the changes in goodwill for each reportable segment:

	Recorded			Music
	Music			Publishing		Total
	(in millions)
Balance at September 30, 2016	$	1,163		$	464	$	1,627
Acquisitions		58			—		58
Dispositions		(10	)		—		(10	)
Other adjustments		10			—		10
Balance at September 30, 2017	$	1,221		$	464	$	1,685
Acquisitions		12			—		12
Dispositions		—			—		—
Other adjustments		(5	)		—		(5	)
Balance at September 30, 2018	$	1,228		$	464	$	1,692

Schedule of Intangible Assets

Intangible assets consist of the following:

	Weighted
	Average	September 30,			September 30,
	Useful Life	2018			2017
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	870		$	898
Music publishing copyrights	26 years		1,540			1,534
Artist and songwriter contracts	13 years		864			904
Trademarks	6 years		12			14
Other intangible assets	5 years		26			10
Total gross intangible asset subject to amortization			3,312			3,360
Accumulated amortization			(1,461	)		(1,270	)
Total net intangible assets subject to amortization			1,851			2,090
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite		154			117
Total net other intangible assets		$	2,005		$	2,207

Expected Amortization of Intangible Assets

Based on the amount of intangible assets subject to amortization at September 30, 2018, the expected amortization for each of the next five fiscal years and thereafter are as follows:

	Fiscal Years Ended
	September 30,
	(in millions)
2019	$	204
2020		175
2021		174
2022		166
2023		131
Thereafter		1,001
	$	1,851

Debt (Tables)

12 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt consists of the following:

	September 30,		September 30,
	2018		2017
	(in millions)
Revolving Credit Facility—Acquisition Corp. (a)	$	—	$	—
Senior Term Loan Facility due 2023—Acquisition Corp. (b)		1,310		990
5.625% Senior Secured Notes due 2022—Acquisition Corp. (c)		246		246
5.00% Senior Secured Notes due 2023—Acquisition Corp. (d)		297		297
4.125% Senior Secured Notes due 2024—Acquisition Corp. (e)		399		402
4.875% Senior Secured Notes due 2024—Acquisition Corp. (f)		247		246
6.75% Senior Notes due 2022—Acquisition Corp. (g)		—		630
5.50% Senior Notes due 2026—Acquisition Corp. (h)		320		—
Total debt (i)	$	2,819	$	2,811

(a)

(b)	Principal amount of $1.326 billion and $1.006 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $12 million and $10 million at September 30, 2018 and September 30, 2017, respectively.

(c)	Principal amount of $248 million less unamortized deferred financing costs of $2 million at both September 30, 2018 and September 30, 2017.

(d)	Principal amount of $300 million less unamortized deferred financing costs of $3 million at both September 30, 2018 and September 30, 2017.

(e)

(f)	Principal amount of $250 million at both September 30, 2018 and September 30, 2017 less unamortized deferred financing costs of $3 million and $4 million at September 30, 2018 and September 30, 2017, respectively.

(g)	Principal amount of $635 million less unamortized deferred financing costs of $5 million at September 30, 2017.

(h)	Principal amount of $325 million less unamortized deferred financing costs of $5 million at September 30, 2018.

(i)	Principal amount of debt of $2.851 billion and $2.846 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $28 million and $29 million at September 30, 2018 and September 30, 2017, respectively.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Pretax (Loss) Income from Continuing Operations

The domestic and foreign pretax (loss) income from continuing operations is as follows:

	Fiscal Year Ended		Fiscal Year Ended			Fiscal Year Ended
	September 30,		September 30,			September 30,
	2018		2017			2016
	(in millions)
Domestic	$	347	$	(37	)	$	35
Foreign		95		35			6
Total	$	442	$	(2	)	$	41

Current and Deferred Income Taxes

Current and deferred income taxes (tax benefits) provided are as follows:

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30,			September 30,			September 30,
	2018			2017			2016
	(in millions)
Federal:
Current	$	—		$	—		$	—
Deferred		91			(169	)		3
Foreign:
Current (a)		58			41			39
Deferred		(26	)		(12	)		(30	)
U.S. State:
Current		6			2			3
Deferred		1			(13	)		(4	)
Total	$	130		$	(151	)	$	11

(a)	Includes withholding taxes of $15 million, $13 million and $17 million for the fiscal years ended September 30, 2018, September 30, 2017, and September 30, 2016, respectively.

Differences between U.S. Federal Statutory Income Tax Rate of 35% and Income Taxes Provided

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 30,			September 30,			September 30,
	2018			2017			2016
	(in millions)
Taxes on income at the U.S. federal statutory rate	$	108		$	(1	)	$	14
U.S. state and local taxes		7			3			(1	)
Foreign income taxed at different rates, including withholding taxes		19			11			12
Increase in valuation allowance		4			18			19
Release of valuation allowance		(14	)		(134	)		(26	)
Change in tax rates		23			(1	)		(10	)
Intergroup transfer		(30	)		—			—
Foreign currency losses on intra-entity loans		—			(59	)		—
Non-deductible long term incentive plan		8			10			1
Other		5			2			2
Total income tax (benefit) expense	$	130		$	(151	)	$	11

Significant Components of Company's Net Deferred Tax Assets/(Liabilities)

Significant components of the Company’s net deferred tax assets (liabilities) are summarized below:

	September 30,			September 30,
	2018			2017
	(in millions)
Deferred tax assets:
Allowances and reserves	$	26		$	35
Employee benefits and compensation		86			91
Other accruals		56			68
Tax attribute carryforwards		314			482
Other		4			13
Total deferred tax assets		486			689
Valuation allowance		(206	)		(193	)
Net deferred tax assets		280			496
Deferred tax liabilities:
Depreciation, amortization and artist advances		—			(15	)
Intangible assets		(434	)		(574	)
Total deferred tax liabilities		(434	)		(589	)
Net deferred tax liabilities	$	(154	)	$	(93	)

Reconciliation of Unrecognized Tax Benefits Including Interest and Penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, are as follows (in millions):

Balance at September 30, 2015	$	35
Additions for current year tax positions		7
Additions for prior year tax positions		1
Subtractions for prior year tax positions		(13	)
Balance at September 30, 2016	$	30
Additions for current year tax positions		2
Additions for prior year tax positions		1
Subtractions for prior year tax positions		(14	)
Balance at September 30, 2017	$	19
Additions for current year tax positions		3
Additions for prior year tax positions		3
Subtractions for prior year tax positions		(7	)
Balance at September 30, 2018	$	18

Share-Based Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Company's Share Awards

The following is a summary of the Company’s share awards:

									Matching		Deferred Equity		Matching Equity
							Deferred		Equity Units		Units Weighted-		Units Weighted-
							Equity Units		Weighted-		Average		Average
							Weighted-		Average		Grant-Date		Grant-Date
	Deferred			Matching			Average		Intrinsic		Intrinsic		Intrinsic
	Equity Units			Equity Units			Fair Value		Value		Value		Value
Unvested units at September 30, 2016		19			28		$	142.21	$	35.08	$	107.13	$	—
Granted		11			11			241.75		90.06		146.86		—
Vested		(17	)		(3	)		241.75		134.62		107.13		—
Forfeited		—			—			—		—		—		—
Unvested units at September 30, 2017		13			36		$	241.75	$	111.23	$	140.04	$	—
Granted		—			—			—		—		—		—
Vested		(7	)		(9	)		304.22		193.83		133.05		—
Forfeited		—			—			—		—		—		—
Unvested units at September 30, 2018		6			27		$	304.22	$	167.15	$	148.69	$	—

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Payments Under Non-Cancelable Operating Leases

At September 30, 2018, future minimum payments under non-cancelable operating leases are as follows:

		Operating
Years		Leases
	(in millions)
2019		$	56
2020			50
2021			47
2022			46
2023			45
Thereafter			245
Total		$	489

Derivative Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Amounts Recorded in Consolidated Balance Sheet

The following is a summary of amounts recorded in the Consolidated Balance Sheet pertaining to the Company’s designated cash flows hedges at September 30, 2018 and September 30, 2017:

	September 30,		September 30,
	2018 (a)		2017
	(in millions)
Other noncurrent assets		4		—
Other noncurrent liabilities		—		—

(a)	$4 million of interest rate swap in an asset position.

Segment Information (Tables)

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Information

					Corporate
	Recorded		Music		expenses and
	Music		Publishing		eliminations			Total
	(in millions)
2018
Revenues	$	3,360	$	653	$	(8	)	$	4,005
Operating income (loss)		307		84		(174	)		217
Amortization of intangible assets		138		68		—			206
Depreciation of property, plant and equipment		35		7		13			55
OIBDA		480		159		(161	)		478
Total assets		1,999		2,423		922			5,344
Capital expenditures		20		3		51			74
2017
Revenues	$	3,020	$	572	$	(16	)	$	3,576
Operating income (loss)		283		81		(142	)		222
Amortization of intangible assets		136		65		—			201
Depreciation of property, plant and equipment		32		6		12			50
OIBDA		451		152		(130	)		473
Total assets		2,085		2,510		1,123			5,718
Capital expenditures		21		5		18			44
2016
Revenues	$	2,736	$	524	$	(14	)	$	3,246
Operating income (loss)		247		68		(101	)		214
Amortization of intangible assets		180		63		—			243
Depreciation of property, plant and equipment		32		7		11			50
OIBDA		459		138		(90	)		507
Capital expenditures		18		7		17			42

Long-Lived Assets and Revenue by Geographical Areas

	2018				2017				2016
			Long-lived				Long-lived
	Revenue		Assets		Revenue		Assets		Revenue
	(in millions)
United States	$	1,754	$	156	$	1,587	$	139	$	1,360
United Kingdom		593		23		522		26		491
All other territories		1,658		50		1,467		48		1,395
Total	$	4,005	$	229	$	3,576	$	213	$	3,246

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments

	Fair Value Measurements as of September 30, 2018
	(Level 1)		(Level 2)		(Level 3)			Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (a)		—		—		(2	)		(2	)
Other Non-Current Assets:
Interest Rate Swap (b)		—		4		—			4
Other Non-Current Liabilities:
Contractual Obligations (a)		—		—		(6	)		(6	)
Interest Rate Swap (b)		—		—		—			—
Total	$	—	$	4	$	(8	)	$	(4	)

	Fair Value Measurements as of September 30, 2017
	(Level 1)		(Level 2)		(Level 3)			Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (a)		—		—		—			—
Other Non-Current Liabilities:
Contractual Obligations (a)		—		—		(5	)		(5	)
Total	$	—	$	—	$	(5	)	$	(5	)

(a)

(b)	The fair value of the interest rate swap is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay as of September 30, 2018 for contracts involving the same attributes and maturity dates.

Reconciliation of Net Liabilities Classified as Level 3

The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3:

	Total
	(in millions)
Balance at September 30, 2017	$	(5	)
Additions		(3	)
Reductions		—
Payments		—
Balance at September 30, 2018	$	(8	)

Quarterly Financial Information (Tables)

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following table sets forth the quarterly information for Warner Music Group Corp.

		Three months ended
		September 30,			June 30,			March 31,			December 31,
		2018			2018			2018			2017
	(in millions)
Revenues		$	1,039		$	958		$	963		$	1,045
Costs and expenses:
Cost of revenue			(583	)		(531	)		(488	)		(569	)
Selling, general and administrative expenses (a)			(398	)		(343	)		(337	)		(333	)
Amortization expense			(42	)		(56	)		(55	)		(53	)
Total costs and expenses			(1,023	)		(930	)		(880	)		(955	)
Operating income			16			28			83			90
Loss on extinguishment of debt			—			(7	)		(23	)		(1	)
Interest expense, net			(33	)		(33	)		(36	)		(36	)
Other (expense) income			2			394			(6	)		4
(Loss) income before income taxes			(15	)		382			18			57
Income tax (expense) benefit			2			(61	)		(19	)		(52	)
Net (loss) income			(13	)		321			(1	)		5
Less: income attributable to noncontrolling interest			(1	)		(1	)		(2	)		(1	)
Net (loss) income attributable to Warner Music Group Corp.		$	(14	)	$	320		$	(3	)	$	4

(a) Includes depreciation expense of:		$	(14	)	$	(15	)	$	(14	)	$	(12	)

WARNER MUSIC GROUP CORP.

2017 QUARTERLY FINANCIAL INFORMATION

(unaudited)

The following table sets forth the quarterly information for Warner Music Group Corp.

		Three months ended
		September 30,			June 30,			March 31,			December 31,
		2017			2017			2017			2016
	(in millions)
Revenues		$	917		$	917		$	825		$	917
Costs and expenses:
Cost of revenue			(501	)		(519	)		(415	)		(496	)
Selling, general and administrative expenses (a)			(368	)		(296	)		(282	)		(276	)
Amortization expense			(49	)		(51	)		(50	)		(51	)
Total costs and expenses			(918	)		(866	)		(747	)		(823	)
Operating income			(1	)		51			78			94
Loss on extinguishment of debt			—			(3	)		—			(32	)
Interest expense, net			(37	)		(36	)		(36	)		(40	)
Other (expense) income			(19	)		(21	)		(19	)		19
(Loss) income before income taxes			(57	)		(9	)		23			41
Income tax benefit (expense)			19			152			(3	)		(17	)
Net (loss) income			(38	)		143			20			24
Less: income attributable to noncontrolling interest			(1	)		(2	)		(1	)		(2	)
Net (loss) income attributable to Warner Music Group Corp.		$	(39	)	$	141		$	19		$	22

(a) Includes depreciation expense of:		$	(12	)	$	(13	)	$	(13	)	$	(12	)

Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

12 Months Ended

Sep. 30, 2018

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule of Consolidating Balance Sheet

Consolidating Balance Sheet

September 30, 2018

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—		$	169		$	345		$	—		$	514		$	—	$	—	$	—		$	514
Accounts receivable, net		—			262			185			—			447			—		—		—			447
Inventories		—			18			24			—			42			—		—		—			42
Royalty advances expected to be recouped within one year		—			79			44			—			123			—		—		—			123
Prepaid and other current assets		—			15			35			—			50			—		—		—			50
Total current assets		—			543			633			—			1,176			—		—		—			1,176
Due from (to) parent companies		488			(214	)		(274	)		—			—			—		—		—			—
Investments in and advances to consolidated subsidiaries		2,018			2,192			—			(4,210	)		—			675		675		(1,350	)		—
Royalty advances expected to be recouped after one year		—			93			60			—			153			—		—		—			153
Property, plant and equipment, net		—			155			74			—			229			—		—		—			229
Goodwill		—			1,370			322			—			1,692			—		—		—			1,692
Intangible assets subject to amortization, net		—			956			895			—			1,851			—		—		—			1,851
Intangible assets not subject to amortization		—			71			83			—			154			—		—		—			154
Deferred tax assets, net		—			—			11			—			11			—		—		—			11
Other assets		12			55			11			—			78			—		—		—			78
Total assets	$	2,518		$	5,221		$	1,815		$	(4,210	)	$	5,344		$	675	$	675	$	(1,350	)	$	5,344
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—		$	200		$	81		$	—		$	281		$	—	$	—	$	—		$	281
Accrued royalties		—			869			527			—			1,396			—		—		—			1,396
Accrued liabilities		—			195			228			—			423			—		—		—			423
Accrued interest		31			—			—			—			31			—		—		—			31
Deferred revenue		—			94			114			—			208			—		—		—			208
Other current liabilities		—			2			32			—			34			—		—		—			34
Total current liabilities		31			1,360			982			—			2,373			—		—		—			2,373
Long-term debt		2,819			—			—			—			2,819			—		—		—			2,819
Deferred tax liabilities, net		—			3			162			—			165			—		—		—			165
Other noncurrent liabilities		2			197			108			—			307			—		—		—			307
Total liabilities		2,852			1,560			1,252			—			5,664			—		—		—			5,664
Total Warner Music Group Corp. equity		(334	)		3,656			554			(4,210	)		(334	)		675		675		(1,350	)		(334	)
Noncontrolling interest		—			5			9			—			14			—		—		—			14
Total equity		(334	)		3,661			563			(4,210	)		(320	)		675		675		(1,350	)		(320	)
Total liabilities and equity	$	2,518		$	5,221		$	1,815		$	(4,210	)	$	5,344		$	675	$	675	$	(1,350	)	$	5,344

Consolidating Balance Sheet

September 30, 2017

	WMG										WMG		WMG		Warner					Warner
	Acquisition				Non-						Acquisition		Holdings		Music					Music
	Corp.		Guarantor		Guarantor						Corp.		Corp.		Group					Group Corp.
	(issuer)		Subsidiaries		Subsidiaries			Eliminations			Consolidated		(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—	$	347	$	300		$	—		$	647	$	—	$	—	$	—		$	647
Accounts receivable, net		—		214		190			—			404		—		—		—			404
Inventories		—		12		27			—			39		—		—		—			39
Royalty advances expected to be recouped within one year		—		89		52			—			141		—		—		—			141
Prepaid and other current assets		—		15		29			—			44		—		—		—			44
Total current assets		—		677		598			—			1,275		—		—		—			1,275
Due from (to) parent companies		418		96		(514	)		—			—		—		—		—			—
Investments in and advances to consolidated subsidiaries		2,721		1,312		—			(4,033	)		—		377		377		(754	)		—
Royalty advances expected to be recouped after one year		—		109		63			—			172		—		—		—			172
Property, plant and equipment, net		—		139		74			—			213		—		—		—			213
Goodwill		—		1,368		317			—			1,685		—		—		—			1,685
Intangible assets subject to amortization, net		—		1,029		1,061			—			2,090		—		—		—			2,090
Intangible assets not subject to amortization		—		71		46			—			117		—		—		—			117
Deferred tax assets, net		—		89		8			—			97		—		—		—			97
Other assets		7		45		17			—			69		—		—		—			69
Total assets	$	3,146	$	4,935	$	1,670		$	(4,033	)	$	5,718	$	377	$	377	$	(754	)	$	5,718
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—	$	135	$	73		$	—		$	208	$	—	$	—	$	—		$	208
Accrued royalties		—		732		531			—			1,263		—		—		—			1,263
Accrued liabilities		—		144		221			—			365		—		—		—			365
Accrued interest		41		—		—			—			41		—		—		—			41
Deferred revenue		—		125		72			—			197		—		—		—			197
Other current liabilities		—		3		23			—			26		—		—		—			26
Total current liabilities		41		1,139		920			—			2,100		—		—		—			2,100
Long-term debt		2,811		—		—			—			2,811		—		—		—			2,811
Deferred tax liabilities, net		—		—		190			—			190		—		—		—			190
Other noncurrent liabilities		1		196		112			—			309		—		—		—			309
Total liabilities		2,853		1,335		1,222			—			5,410		—		—		—			5,410
Total Warner Music Group Corp. equity		293		3,596		437			(4,033	)		293		377		377		(754	)		293
Noncontrolling interest		—		4		11			—			15		—		—		—			15
Total equity		293		3,600		448			(4,033	)		308		377		377		(754	)		308
Total liabilities and equity	$	3,146	$	4,935	$	1,670		$	(4,033	)	$	5,718	$	377	$	377	$	(754	)	$	5,718

Schedule of Consolidating Statement of Operations

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	2,284		$	2,245		$	(524	)	$	4,005		$	—	$	—	$	—		$	4,005
Costs and expenses:
Cost of revenue		—			(1,090	)		(1,442	)		361			(2,171	)		—		—		—			(2,171	)
Selling, general and administrative expenses		—			(1,040	)		(534	)		163			(1,411	)		—		—		—			(1,411	)
Amortization of intangible assets		—			(96	)		(110	)		—			(206	)		—		—		—			(206	)
Total costs and expenses		—			(2,226	)		(2,086	)		524			(3,788	)		—		—		—			(3,788	)
Operating income (loss)		—			58			159			—			217			—		—		—			217
Loss on extinguishment of debt		(31	)		—			—			—			(31	)		—		—		—			(31	)
Interest (expense) income, net		(116	)		4			(26	)		—			(138	)		—		—		—			(138	)
Equity gains from consolidated subsidiaries		207			122			—			(329	)		—			307		307		(614	)		—
Other expense, net		377			7			10			—			394			—		—		—			394
(Loss) income before income taxes		437			191			143			(329	)		442			307		307		(614	)		442
Income tax benefit (expense)		(130	)		(130	)		(39	)		169			(130	)		—		—		—			(130	)
Net income		307			61			104			(160	)		312			307		307		(614	)		312
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—		—		—			(5	)
Net income attributable to Warner Music Group Corp.	$	307		$	60		$	100		$	(160	)	$	307		$	307	$	307	$	(614	)	$	307

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2017

	WMG												WMG			WMG		Warner					Warner
	Acquisition						Non-						Acquisition			Holdings		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,978		$	2,008		$	(410	)	$	3,576		$	—	$	—	$	—		$	3,576
Costs and expenses:
Cost of revenue		—			(922	)		(1,275	)		266			(1,931	)		—		—		—			(1,931	)
Selling, general and administrative expenses		(1	)		(900	)		(464	)		143			(1,222	)		—		—		—			(1,222	)
Amortization of intangible assets		—			(100	)		(101	)		—			(201	)		—		—		—			(201	)
Total costs and expenses		(1	)		(1,922	)		(1,840	)		409			(3,354	)		—		—		—			(3,354	)
Operating income (loss)		(1	)		56			168			(1	)		222			—		—		—			222
Loss on extinguishment of debt		(35	)		—			—			—			(35	)		—		—		—			(35	)
Interest (expense) income, net		(95	)		2			(56	)		—			(149	)		—		—		—			(149	)
Equity gains from consolidated subsidiaries		124			87			—			(210	)		1			143		143		(286	)		1
Other expense, net		(1	)		(17	)		(23	)		—			(41	)		—		—		—			(41	)
(Loss) income before income taxes		(8	)		128			89			(211	)		(2	)		143		143		(286	)		(2	)
Income tax benefit (expense)		151			154			(30	)		(124	)		151			—		—		—			151
Net income		143			282			59			(335	)		149			143		143		(286	)		149
Less: income attributable to noncontrolling interest		—			(1	)		(5	)		—			(6	)		—		—		—			(6	)
Net income attributable to Warner Music Group Corp.	$	143		$	281		$	54		$	(335	)	$	143		$	143	$	143	$	(286	)	$	143

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2016

Schedule of Consolidating Statement of Comprehensive Income

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	307		$	61		$	104		$	(160	)	$	312		$	307		$	307		$	(614	)	$	312
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		(13	)		—			13			(13	)		(13	)		(13	)		(13	)		26			(13	)
Minimum pension liability		1			—			1			(1	)		1			1			1			(2	)		1
Deferred (loss) on derivative financial instruments		3			—			3			(3	)		3			3			3			(6	)		3
Other comprehensive income (loss), net of tax:		(9	)		—			17			(17	)		(9	)		(9	)		(9	)		18			(9	)
Total comprehensive income		298			61			121			(177	)		303			298			298			(596	)		303
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—			(5	)
Comprehensive income attributable to Warner Music Group Corp.	$	298		$	60		$	117		$	(177	)	$	298		$	298		$	298		$	(596	)	$	298

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2017

	WMG											WMG			WMG		Warner					Warner
	Acquisition					Non-						Acquisition			Holdings		Music					Music
	Corp.		Guarantor			Guarantor						Corp.			Corp.		Group					Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Net income	$	143	$	282		$	59		$	(335	)	$	149		$	143	$	143	$	(286	)	$	149
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		30		—			(30	)		30			30			32		32		(64	)		30
Minimum pension liability		7		—			7			(7	)		7			7		7		(14	)		7
Deferred (loss) on derivative financial instruments		—		(1	)		—			1			—			—		—		—			—
Other comprehensive income (loss), net of tax:		37		(1	)		(23	)		24			37			39		39		(78	)		37
Total comprehensive income		180		281			36			(311	)		186			182		182		(364	)		186
Less: income attributable to noncontrolling interest		—		(1	)		(5	)		—			(6	)		—		—		—			(6	)
Comprehensive income attributable to Warner Music Group Corp.	$	180	$	280		$	31		$	(311	)	$	180		$	182	$	182	$	(364	)	$	180

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment		(44	)		—			(44	)		44			(44	)		(44	)		(44	)		88			(44	)
Minimum pension liability		(7	)		—			(7	)		7			(7	)		(7	)		(7	)		14			(7	)
Deferred (loss) gain on derivative financial instruments		—			(1	)		—			1			—			—			—			—			—
Other comprehensive (loss) income , net of tax:		(51	)		(1	)		(51	)		52			(51	)		(51	)		(51	)		102			(51	)
Total comprehensive (loss) income		2			166			3			(164	)		7			(26	)		(26	)		24			(21	)
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—			(5	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	2		$	165		$	(1	)	$	(164	)	$	2		$	(26	)	$	(26	)	$	24		$	(26	)

Schedule of Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2018

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	307		$	61		$	104		$	(160	)	$	312		$	307		$	307		$	(614	)	$	312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			136			125			—			261			—			—			—			261
Unrealized gains/losses and remeasurement of foreign denominated loans		(3	)		—			—			—			(3	)		—			—			—			(3	)
Deferred income taxes		—			—			66			—			66			—			—			—			66
Loss on extinguishment of debt		31			—			—			—			31			—			—			—			31
Net loss (gain) on divestitures and investments		(504	)		78			37			—			(389	)		—			—			—			(389	)
Non-cash interest expense		6			—			—			—			6			—			—			—			6
Equity-based compensation expense		—			62			—			—			62			—			—			—			62
Equity losses (gains), including distributions		(207	)		(122	)		—			329			—			(307	)		(307	)		614			—
Changes in operating assets and liabilities:
Accounts receivable		—			(48	)		5			—			(43	)		—			—			—			(43	)
Inventories		—			(5	)		2			—			(3	)		—			—			—			(3	)
Royalty advances		—			24			7			—			31			—			—			—			31
Accounts payable and accrued liabilities		—			449			(198	)		(169	)		82			—			—			—			82
Royalty payables		—			48			(26	)		—			22			—			—			—			22
Accrued interest		(10	)		—			—			—			(10	)		—			—			—			(10	)
Deferred revenue		—			(48	)		44			—			(4	)		—			—			—			(4	)
Other balance sheet changes		—			89			(85	)		—			4			—			—			—			4
Net cash provided by (used in) operating activities		(380	)		724			81			—			425			—			—			—			425
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(11	)		(3	)		—			(14	)		—			—			—			(14	)
Capital expenditures		—			(60	)		(14	)		—			(74	)		—			—			—			(74	)
Investments and acquisitions of businesses, net		—			(17	)		(6	)		—			(23	)		—			—			—			(23	)
Divestitures, net		504			12			—			—			516			—			—			—			516
Advance to Issuer		(99	)		—			—			99			—			—			—			—			—
Net cash (used in) provided by investing activities		405			(76	)		(23	)		99			405			—			—			—			405
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		—			(925	)		—			—			(925	)		—			—			—			(925	)
Proceeds from issuance of Acquisition Corp. 5.50% Senior Notes		325			—			—			—			325			—			—			—			325
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility		320			—			—			—			320			—			—			—			320
Repayment of Acquisition Corp. 6.75% Senior Notes		(635	)		—			—			—			(635	)		—			—			—			(635	)
Call premiums paid on early redemption of debt		(23	)		—			—			—			(23	)		—			—			—			(23	)
Deferred financing costs paid		(12	)		—			—			—			(12	)		—			—			—			(12	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Change in due (from) to issuer		—			99			—			(99	)		—			—			—			—			—
Net cash (used in) provided by financing activities		(25	)		(826	)		(5	)		(99	)		(955	)		—			—			—			(955	)
Effect of exchange rate changes on cash and equivalents		—			—			(8	)		—			(8	)		—			—			—			(8	)
Net increase in cash and equivalents		—			(178	)		45			—			(133	)		—			—			—			(133	)
Cash and equivalents at beginning of period		—			347			300			—			647			—			—			—			647
Cash and equivalents at end of period	$	—		$	169		$	345		$	—		$	514		$	—		$	—		$	—		$	514

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2017

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	143		$	282		$	59		$	(335	)	$	149		$	143		$	143		$	(286	)	$	149
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			137			114			—			251			—			—			—			251
Unrealized gains/losses and remeasurement of foreign denominated loans		27			—			(3	)		—			24			—			—			—			24
Deferred income taxes		2			—			(194	)		—			(192	)		—			—			—			(192	)
Loss on extinguishment of debt		35			—			—			—			35			—			—			—			35
Net loss (gain) on divestitures and investments		—			33			(16	)		—			17			—			—			—			17
Non-cash interest expense		8			—			—			—			8			—			—			—			8
Equity-based compensation expense		—			70			—			—			70			—			—			—			70
Equity losses (gains), including distributions		(124	)		(86	)		—			210			—			(143	)		(143	)		286			—
Changes in operating assets and liabilities:
Accounts receivable		—			(37	)		(23	)		—			(60	)		—			—			—			(60	)
Inventories		—			2			(1	)		—			1			—			—			—			1
Royalty advances		—			2			15			—			17			—			—			—			17
Accounts payable and accrued liabilities		(120	)		(4	)		47			125			48			—			—			—			48
Royalty payables		—			126			10			—			136			—			—			—			136
Accrued interest		3			—			—			—			3			—			—			—			3
Deferred revenue		—			(6	)		28			—			22			—			—			—			22
Other balance sheet changes		5			(204	)		205			—			6			—			—			—			6
Net cash provided by (used in) operating activities		(21	)		315			241			—			535			—			—			—			535
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(9	)		(7	)		—			(16	)		—			—			—			(16	)
Capital expenditures		—			(31	)		(13	)		—			(44	)		—			—			—			(44	)
Investments and acquisitions of businesses, net		—			(6	)		(133	)		—			(139	)		—			—			—			(139	)
Divestitures, net		—			42			31			—			73			—			—			—			73
Advance to Issuer		60			—			—			(60	)		—			—			—			—			—
Net cash (used in) provided by investing activities		60			(4	)		(122	)		(60	)		(126	)		—			—			—			(126	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		—			(84	)		—			—			(84	)		84			—			—			—
Proceeds from issuance of Acquisition Corp. 4.125% Senior Secured Notes		380			—			—			—			380			—			—			—			380
Proceeds from issuance of Acquisition Corp. 4.875% Senior Secured Notes		250			—			—			—			250			—			—			—			250
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility		22			—			—			—			22			—			—			—			22
Repayment of Acquisition Corp. 6.00% Senior Secured Notes		(450	)		—			—			—			(450	)		—			—			—			(450	)
Repayment of Acquisition Corp. 6.25% Senior Secured Notes		(173	)		—			—			—			(173	)		—			—			—			(173	)
Repayment of Acquisition Corp. 5.625% Senior Secured Notes		(28	)		—			—			—			(28	)		—			—			—			(28	)
Call premiums paid on early redemption of debt		(27	)		—			—			—			(27	)		—			—			—			(27	)
Deferred financing costs paid		(13	)		—			—			—			(13	)		—			—			—			(13	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Dividends paid		—			—			—			—			—			(84	)		—			—			(84	)
Change in due (from) to issuer		—			(60	)		—			60			—			—			—			—			—
Net cash (used in) provided by financing activities		(39	)		(144	)		(5	)		60			(128	)		—			—			—			(128	)
Effect of exchange rate changes on cash and equivalents		—			—			7			—			7			—			—			—			7
Net increase in cash and equivalents		—			167			121			—			288			—			—			—			288
Cash and equivalents at beginning of period		—			180			179			—			359			—			—			—			359
Cash and equivalents at end of period	$	—		$	347		$	300		$	—		$	647		$	—		$	—		$	—		$	647

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			156			137			—			293			—			—			—			293
Unrealized gains/losses and remeasurement of foreign denominated loans		—			—			—			—			—			—			—			—			—
Deferred income taxes		—			—			(26	)		—			(26	)		—			—			—			(26	)
Loss on extinguishment of debt		4			—			—			—			4			14			—			—			18
Net gain on divestitures		—			(3	)		(6	)		—			(9	)		—			—			—			(9	)
Gain on sale of real estate		—			—			(24	)		—			(24	)		—			—			—			(24	)
Non-cash interest expense		10			—			—			—			10			1			—			—			11
Equity-based compensation expense		—			23			—			—			23			—			—			—			23
Equity losses (gains), including distributions		(162	)		(74	)		—			236			—			(53	)		(25	)		78			—
Changes in operating assets and liabilities:
Accounts receivable		—			(7	)		24			—			17			—			—			—			17
Inventories		—			—			—			—			—			—			—			—			—
Royalty advances		—			1			(14	)		—			(13	)		—			—			—			(13	)
Accounts payable and accrued liabilities		—			142			(99	)		(20	)		23			—			—			—			23
Royalty payables		—			93			(44	)		—			49			—			—			—			49
Accrued interest		(10	)		—			—			—			(10	)		(10	)		—			—			(20	)
Deferred revenue		—			(4	)		(31	)		—			(35	)		—			—			—			(35	)
Other balance sheet changes		(4	)		(10	)		19			—			5			—			—			—			5
Net cash (used in) provided by operating activities		(109	)		484			(10	)		—			365			(23	)		—			—			342
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(16	)		(9	)		—			(25	)		—			—			—			(25	)
Capital expenditures		—			(30	)		(12	)		—			(42	)		—			—			—			(42	)
Investments and acquisitions of businesses, net		—			(10	)		(18	)		—			(28	)		—			—			—			(28	)
Divestitures, net		—			8			37			—			45			—			—			—			45
Proceeds from the sale of real estate		—			—			42			—			42			—			—			—			42
Advance to Issuer		329			—			—			(329	)		—			—			—			—			—
Net cash (used in) provided by investing activities		329			(48	)		40			(329	)		(8	)		—			—			—			(8	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(183	)		—			—			—			(183	)		183			—			—			—
Repayment of Acquisition Corp. Senior Term Loan Facility		(309	)		—			—			—			(309	)		—			—			—			(309	)
Proceeds from issuance of Acquisition Corp. 5.00% Senior Secured Notes		300			—			—			—			300			—			—			—			300
Repayment of Holdings 13.75% Senior Notes		—			—			—			—			—			(150	)		—			—			(150	)
Repayment of Acquisition Corp. 6.75% Senior Notes		(24	)		—			—			—			(24	)		—			—			—			(24	)
Financing costs paid		—			—			—			—			—			(10	)		—			—			(10	)
Deferred financing costs paid		(4	)		—			—			—			(4	)		—			—			—			(4	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Repayment of capital lease obligations		—			—			(14	)		—			(14	)		—			—			—			(14	)
Change in due (from) to issuer		—			(329	)		—			329			—			—			—			—			—
Net cash (used in) provided by financing activities		(220	)		(329	)		(19	)		329			(239	)		23			—			—			(216	)
Effect of exchange rate changes on cash and equivalents		—			—			(5	)		—			(5	)		—			—			—			(5	)
Net increase in cash and equivalents		—			107			6			—			113			—			—			—			113
Cash and equivalents at beginning of period		—			73			173			—			246			—			—			—			246
Cash and equivalents at end of period	$	—		$	180		$	179		$	—		$	359		$	—		$	—		$	—		$	359

Description of Business - Additional Information (Detail)	12 Months Ended
	Sep. 30, 2018 Country Musical_composition songwriters
Accounting Policies [Abstract]
Number of countries in which Recorded Music activity conducted \| Country	50
Minimum number of musical compositions on which Company owns or controls rights \| Musical_composition	1,000,000
Number of songwriters and composers \| songwriters	70,000

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Oct. 01, 2018
Accounting Policies [Line Items]
Advertising expense	$ 104	$ 97	$ 91
Subsequent Event \| Topic 606 \| Difference between Revenue Guidance in Effect before and after Topic 606
Accounting Policies [Line Items]
Cumulative impact to accumulated deficit				$ (150)
Furniture and Fixtures \| Minimum
Accounting Policies [Line Items]
Property plant and equipment useful life	5 years
Furniture and Fixtures \| Maximum
Accounting Policies [Line Items]
Property plant and equipment useful life	7 years
Computer Equipment \| Maximum
Accounting Policies [Line Items]
Property plant and equipment useful life	5 years
Machinery and Equipment \| Maximum
Accounting Policies [Line Items]
Property plant and equipment useful life	5 years
Building \| Maximum
Accounting Policies [Line Items]
Property plant and equipment useful life	40 years
Credit Concentration Risk \| Accounts Receivable \| Spotify
Accounting Policies [Line Items]
Concentration risk, percentage	18.00%	15.00%

Comprehensive (Loss) Income - Additional Information (Detail) $ in Millions	12 Months Ended
	Sep. 30, 2018 USD ($)
Maximum
Accumulated Other Comprehensive Income Loss [Line Items]
Changes in accumulated other comprehensive loss, net of related taxes	$ 1

Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Accumulated Other Comprehensive Income Loss [Line Items]

$ 308

$ 210

$ 239

Foreign Currency Translation Loss

(320)

308

210

Accumulated Other Comprehensive Income Loss [Line Items]

(171)

(201)

(157)

^[1]

(13)

(44)

Minimum Pension Liability Adjustment

(184)

(171)

(201)

Accumulated Other Comprehensive Income Loss [Line Items]

(10)

(17)

(10)

Amounts reclassified from accumulated other comprehensive income

^[1]

(6)

(1)

Deferred Gains On Derivative Financial Instruments

(9)

(10)

(17)

Accumulated Other Comprehensive Income Loss [Line Items]

^[1]

Accumulated Other Comprehensive Loss, net

Accumulated Other Comprehensive Income Loss [Line Items]

(181)

(218)

(167)

Amounts reclassified from accumulated other comprehensive income

^[1]

(9)

(50)

(1)

$ (190)

$ (181)

$ (218)

[1]	Includes historical foreign currency translation related to certain intra-entity transactions that are no longer of a long-term investment nature of $0 million, $(19) million and $(109) million during the fiscal year ended September 30, 2018, 2017 and 2016, respectively.

Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Historical foreign currency translation related to intra-entity transactions	$ 0	$ (19)	$ (109)

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	$ 486	$ 423
Less accumulated depreciation	(257)	(210)
Net Property, Plant and Equipment	229	213
Land
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	11	11
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	109	99
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	11	10
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	302	262
Construction in Progress
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	42	30
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Gross Property, Plant and Equipment	$ 11	$ 11

Goodwill and Intangible Assets - Changes in Goodwill for Each Reportable Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Goodwill [Line Items]
Beginning balance	$ 1,685	$ 1,627
Acquisitions	12	58
Dispositions		(10)
Other adjustments	(5)	10
Ending balance	1,692	1,685
Recorded Music
Goodwill [Line Items]
Beginning balance	1,221	1,163
Acquisitions	12	58
Dispositions		(10)
Other adjustments	(5)	10
Ending balance	1,228	1,221
Music Publishing
Goodwill [Line Items]
Beginning balance	464	464
Ending balance	$ 464	$ 464

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Goodwill [Line Items]
Cash paid for investments and acquisitions of businesses, net	$ 23	$ 139	$ 28
Spinnin Records
Goodwill [Line Items]
Increase in goodwill	10
Decrease in intangible assets	13
Decrease in deferred tax liabilities	$ 3
Cash paid for investments and acquisitions of businesses, net		$ 139

Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Total gross intangible asset subject to amortization	$ 3,312	$ 3,360
Accumulated amortization	(1,461)	(1,270)
Total net intangible assets subject to amortization	1,851	2,090
Intangible assets not subject to amortization	154	117
Total net other intangible assets	2,005	2,207
Trademarks and tradenames
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	$ 154	117
Recorded music catalog
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	10 years
Total gross intangible asset subject to amortization	$ 870	898
Music publishing copyrights
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	26 years
Total gross intangible asset subject to amortization	$ 1,540	1,534
Artist and songwriter contracts
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	13 years
Total gross intangible asset subject to amortization	$ 864	904
Trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	6 years
Total gross intangible asset subject to amortization	$ 12	14
Other Intangible Assets
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	5 years
Total gross intangible asset subject to amortization	$ 26	$ 10

Goodwill and Intangible Assets - Expected Amortization of Intangible Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
2019	$ 204
2020	175
2021	174
2022	166
2023	131
Thereafter	1,001
Total net intangible assets subject to amortization	$ 1,851	$ 2,090

Debt - Long-term Debt (Detail) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Acquisition Corp. | Senior Term Loan Facility due 2023

^[1]

$ 2,819

$ 2,811

Acquisition Corp. | 5.625% Senior Secured Notes due 2022

^[2]

1,310

990

Acquisition Corp. | 5.00% Senior Secured Notes due 2023

^[3]

246

Acquisition Corp. | 4.125% Senior Secured Notes due 2024

^[4]

297

Acquisition Corp. | 4.875% Senior Secured Notes due 2024

^[5]

399

402

Acquisition Corp. | 6.75% Senior Notes due 2022

^[6]

247

246

Acquisition Corp. | 5.50% Senior Notes due 2026

^[7]

$ 630

$ 320

[1]	Principal amount of debt of $2.851 billion and $2.846 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $28 million and $29 million at September 30, 2018 and September 30, 2017, respectively.
[2]	Principal amount of $1.326 billion and $1.006 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $12 million and $10 million at September 30, 2018 and September 30, 2017, respectively.
[3]	Principal amount of $248 million less unamortized deferred financing costs of $2 million at both September 30, 2018 and September 30, 2017.
[4]	Principal amount of $300 million less unamortized deferred financing costs of $3 million at both September 30, 2018 and September 30, 2017.
[5]	Face amount of €345 million. Above amounts represent the dollar equivalent of such notes at September 30, 2018 and September 30, 2017. Principal amount of $402 million and $407 million less unamortized deferred financing costs of $3 million and $5 million at September 30, 2018 and September 30, 2017, respectively.
[6]	Principal amount of $250 million at both September 30, 2018 and September 30, 2017 less unamortized deferred financing costs of $3 million and $4 million at September 30, 2018 and September 30, 2017, respectively.
[7]	Principal amount of $635 million less unamortized deferred financing costs of $5 million at September 30, 2017.

Debt - Long-term Debt (Parenthetical) (Detail) € in Millions		12 Months Ended
	Mar. 14, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 EUR (€)	Sep. 30, 2017 EUR (€)	Sep. 30, 2016	Jul. 27, 2016 USD ($)
Debt Instrument [Line Items]
Face or principal amount of debt instrument		$ 2,851,000,000	$ 2,846,000,000
Unamortized discount		4,000,000	6,000,000
Unamortized deferred financing costs		28,000,000	29,000,000
Acquisition Corp. \| Revolving Credit Facility
Debt Instrument [Line Items]
Commitments under revolving credit facility		180,000,000	150,000,000
Letters of credit outstanding		8,000,000	12,000,000
Revolving credit facility outstanding		$ 0	$ 0
Senior Term Loan Facility due 2023 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2023	2023
Face or principal amount of debt instrument		$ 1,326,000,000	$ 1,006,000,000
Unamortized discount		4,000,000	6,000,000
Unamortized deferred financing costs		$ 12,000,000	$ 10,000,000
5.625% Senior Secured Notes
Debt Instrument [Line Items]
Interest rate		5.625%	5.625%	5.625%	5.625%	5.625%
5.625% Senior Secured Notes \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2022	2022
Interest rate		5.625%	5.625%	5.625%	5.625%
Face or principal amount of debt instrument		$ 248,000,000	$ 248,000,000
Unamortized deferred financing costs		$ 2,000,000	$ 2,000,000
5.00% Senior Secured Notes due 2023
Debt Instrument [Line Items]
Interest rate		5.00%	5.00%	5.00%	5.00%	5.00%
5.00% Senior Secured Notes due 2023 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2023	2023
Interest rate		5.00%	5.00%	5.00%	5.00%		5.00%
Face or principal amount of debt instrument		$ 300,000,000	$ 300,000,000				$ 300,000,000
Unamortized deferred financing costs		$ 3,000,000	$ 3,000,000
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2024	2024
Interest rate		4.125%	4.125%	4.125%	4.125%
Face or principal amount of debt instrument		$ 402,000,000	$ 407,000,000	€ 345	€ 345
Unamortized deferred financing costs		$ 3,000,000	$ 5,000,000
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2024	2024
Interest rate		4.875%	4.875%	4.875%	4.875%
Face or principal amount of debt instrument		$ 250,000,000	$ 250,000,000
Unamortized deferred financing costs		$ 3,000,000	$ 4,000,000
6.75% Senior Notes due 2022
Debt Instrument [Line Items]
Interest rate	6.75%	6.75%	6.75%	6.75%	6.75%	6.75%
Face or principal amount of debt instrument	$ 523,000,000
6.75% Senior Notes due 2022 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes		2022	2022
Interest rate		6.75%	6.75%	6.75%	6.75%
Face or principal amount of debt instrument	$ 112,000,000		$ 635,000,000
Unamortized deferred financing costs			$ 5,000,000
5.50% Senior Notes due 2026 \| Acquisition Corp.
Debt Instrument [Line Items]
Due date of senior secured notes	2026	2026	2026
Interest rate	5.50%	5.50%	5.50%	5.50%	5.50%
Face or principal amount of debt instrument	$ 325,000,000	$ 325,000,000
Unamortized deferred financing costs		$ 5,000,000

Debt - December 2017 Senior Term Loan Credit Agreement Amendment - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended					12 Months Ended
	May 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ (7)	$ (23)	$ (1)	$ (3)	$ (32)	$ (31)	$ (35)	$ (18)
December 2017 Senior Term Loan Credit Agreement Amendment
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ (1)

Debt - New Revolving Credit Agreement - Additional Information (Detail) - New Revolving Credit Agreement - Revolving Credit Facility $ in Millions	Jan. 31, 2018 USD ($)
Debt Instrument [Line Items]
Debt instrument, agreement date	Jan. 31, 2018
Credit agreement covenant terms	The Revolving Credit Agreement differs from the Old Revolving Credit Agreement in that it, among other things, reduces the interest rate margin applicable to the loans, extends the maturity date thereunder, provides for the option to increase the commitments under the Company’s then existing revolving credit agreement, provides for greater flexibility to amend and extend the Company’s then existing revolving credit agreement and create additional tranches thereunder, provides for greater flexibility over future amendments, increases the springing financial maintenance covenant to 4.75:1.00 and provides that the covenant shall not be tested unless at the end of a fiscal quarter the outstanding amount of loans and drawings under letters of credit which have not been reimbursed exceeds $54 million and aligns the other negative covenants with those of the Senior Term Loan Credit Agreement
Debt instrument, springing financial maintenance covenant	4.75%
Maximum
Debt Instrument [Line Items]
Debt instrument, reimbursed amount	$ 54

Debt - March 2018 Senior Term Loan Credit Agreement Amendment - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Mar. 14, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Face or principal amount of debt instrument	$ 2,851		$ 2,846
March 2018 Senior Term Loan Credit Agreement Amendment \| Acquisition Corp.
Debt Instrument [Line Items]
Face or principal amount of debt instrument		$ 320
Revolving credit facility outstanding		$ 1,326

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Notes Offering - Additional Information (Detail) - USD ($) $ in Millions			12 Months Ended
	Mar. 14, 2018	Jul. 27, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Face or principal amount of debt instrument			$ 2,851.0	$ 2,846.0
Acquisition Corp. \| Revolving Credit Facility
Debt Instrument [Line Items]
Prepayment of senior term loan facility		$ 295.5
5.50% Senior Notes due 2026 \| Acquisition Corp.
Debt Instrument [Line Items]
Face or principal amount of debt instrument	$ 325.0		$ 325.0
Due date of Senior Secured Notes	2026		2026	2026
Interest rate	5.50%		5.50%	5.50%
5.00% Senior Secured Notes due 2023
Debt Instrument [Line Items]
Interest rate			5.00%	5.00%	5.00%
5.00% Senior Secured Notes due 2023 \| Acquisition Corp.
Debt Instrument [Line Items]
Face or principal amount of debt instrument		$ 300.0	$ 300.0	$ 300.0
Due date of Senior Secured Notes			2023	2023
Interest rate		5.00%	5.00%	5.00%

Debt - Tender Offer and Notes Redemption - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended		3 Months Ended					12 Months Ended
	Apr. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Mar. 14, 2018
Debt Instrument [Line Items]
Face or principal amount of debt instrument								$ 2,851	$ 2,846
Loss on extinguishment of debt			$ (7)	$ (23)	$ (1)	$ (3)	$ (32)	$ (31)	$ (35)	$ (18)
6.75% Senior Notes due 2022
Debt Instrument [Line Items]
Interest rate								6.75%	6.75%	6.75%	6.75%
Face or principal amount of debt instrument											$ 523
Loss on extinguishment of debt	$ (5)	$ (23)
6.75% Senior Notes due 2022 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate								6.75%	6.75%
Face or principal amount of debt instrument									$ 635		112
Redemption deposit											$ 119

Debt - June 2018 Senior Term Loan Credit Agreement Amendment - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended					12 Months Ended
	Jun. 07, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ (7)	$ (23)	$ (1)	$ (3)	$ (32)	$ (31)	$ (35)	$ (18)
June 2018 Senior Term Loan Credit Agreement Amendment
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ (2)

Debt - Open Market Purchases - Additional Information (Detail) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Mar. 11, 2016

Acquisition Corp. | 6.75% Senior Notes due 2022

Outstanding senior notes

^[1]

$ 2,819

$ 2,811

Open market purchases of senior debt

$ 25

Outstanding senior notes

$ 635

$ 660

Interest rate

6.75%

[1]	Principal amount of debt of $2.851 billion and $2.846 billion less unamortized discount of $4 million and $6 million and unamortized deferred financing costs of $28 million and $29 million at September 30, 2018 and September 30, 2017, respectively.

Debt - Interest Rates - Additional Information (Detail) - Acquisition Corp.	12 Months Ended
	Sep. 30, 2018
Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Description of variable rate basis	The loans under the Senior Term Loan Facility bear interest at Acquisition Corp.’s election at a rate equal to (i) the rate for deposits in U.S. dollars in the London interbank market (adjusted for maximum reserves) for the applicable interest period (“Term Loan LIBOR”) subject to a zero floor, plus 2.125% per annum, or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent as its prime rate in effect at its principal office in New York City from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) one-month Term Loan LIBOR, plus 1.00% per annum, plus, in each case, 1.125% per annum.
Interest rate applicable to overdue principal	2.00%
Term loan Base rate plus Election Rate	1.00%
London Interbank Offered Rate (LIBOR) \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	2.125%
Base Rate \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	1.125%
Additional Interest rate on other overdue amounts	2.00%
Federal Funds Effective Swap Rate \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	0.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	0.75%
Description of variable rate basis	The loans under the Revolving Credit Facility bear interest at Acquisition Corp.’s election at a rate equal to (i) the rate for deposits in the borrowing currency in the London interbank market (adjusted for maximum reserves) for the applicable interest period (“Revolving LIBOR”) subject to a zero floor, plus 1.75% per annum, or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) the one-month Revolving LIBOR plus 1.0% per annum, plus, in each case, 0.75% per annum. If there is a payment default at any time, then the interest rate applicable to overdue principal will be the rate otherwise applicable to such loan plus 2.0% per annum.
Interest rate applicable to overdue principal	2.00%
Revolving Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	1.75%
Revolving Credit Facility \| Base Rate
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	1.00%
Additional Interest rate on other overdue amounts	2.00%
Revolving Credit Facility \| Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	0.50%

Debt - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Interest expense, net	$ 33	$ 33	$ 36	$ 36	$ 37	$ 36	$ 36	$ 40	$ 138	$ 149	$ 173
Weighted-average interest rate of total debt	4.70%				4.90%				4.70%	4.90%	5.30%
Senior Notes
Debt Instrument [Line Items]
Scheduled maturities of long-term debt in 2022	$ 248								$ 248
Scheduled to mature	$ 1,277								$ 1,277
Acquisition Corp. \| Revolving Credit Facility
Debt Instrument [Line Items]
Extended maturity date of credit facility									Jan. 31, 2023
Acquisition Corp. \| Term Loan Facility
Debt Instrument [Line Items]
Credit facility maturity date									Nov. 01, 2023

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Tax Contingency [Line Items]
U.S. federal corporate statutory tax rate	35.00%	21.00%		24.50%	35.00%	35.00%
Enacted tax rate				21.00%
Tax Act, provisional income tax expense				$ 23
Tax expense related to the reduction of deferred tax assests				23
Income tax benefit related to prior year intergroup transfer				30
Tax benefit related to foreign currency losses on intra-entity loans					$ 59
Release of valuation allowance				14	134	$ 26
Deferred tax assets valuation allowance		$ 206		206	193
Valuation allowance relates to outside basis differences in investments		4		4
Reinvested Earnings at foreign subsidiaries		193		193
Accrued interest and penalties		2		2	3
Uncertain income tax position not recognized		18		18	19
Decrease in uncertain tax positions resulting from ongoing audits and settlements				3
United Kingdom Tax Authority
Income Tax Contingency [Line Items]
Net operating loss carryforward		20		20
France Tax Authority
Income Tax Contingency [Line Items]
Net operating loss carryforward		106		106
Spain Tax Authority
Income Tax Contingency [Line Items]
Net operating loss carryforward		39		39
Domestic Tax Authority
Income Tax Contingency [Line Items]
Release of valuation allowance					$ 125
Deferred tax assets valuation allowance		149		149
Net operating loss carryforward		175		$ 175
Operating loss carry forwards, expiration year				2033
Foreign Tax Authority
Income Tax Contingency [Line Items]
Valuation allowances relates to foreign tax credit carryforwards		133		$ 133
Foreign tax credit carryforward		169		$ 169
Tax credit carry forwards, expiration year				2019
Decrease in gross unrecognized tax benefits				$ 7
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Valuation allowance relates to NOL carryforwards		$ 12		$ 12
Scenario, Plan
Income Tax Contingency [Line Items]
U.S. federal corporate statutory tax rate			21.00%

Income Taxes - Schedule of Domestic and Foreign Pretax (Loss) Income from Continuing Operations (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Domestic									$ 347	$ (37)	$ 35
Foreign									95	35	6
Income (loss) before income taxes	$ (15)	$ 382	$ 18	$ 57	$ (57)	$ (9)	$ 23	$ 41	$ 442	$ (2)	$ 41

Income Taxes - Current and Deferred Income Taxes (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Federal:

Deferred

$ 91

$ (169)

$ 3

Foreign:

Current

^[1]

Deferred

(26)

(12)

(30)

U.S. State:

Current

Deferred

(13)

(4)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

$ (2)

$ 61

$ 19

$ 52

$ (19)

$ (152)

$ 3

$ 17

$ 130

$ (151)

$ 11

[1]	Includes withholding taxes of $15 million, $13 million and $17 million for the fiscal years ended September 30, 2018, September 30, 2017, and September 30, 2016, respectively.

Income Taxes - Current and Deferred Income Taxes (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Components Of Deferred Tax Assets And Liabilities [Abstract]
Cash withholding taxes	$ 15	$ 13	$ 17

Income Taxes - Differences between U.S. Federal Statutory Income Tax Rate of 35% and Income Taxes Provided (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Taxes on income at the U.S. federal statutory rate									$ 108	$ (1)	$ 14
U.S. state and local taxes									7	3	(1)
Foreign income taxed at different rates, including withholding taxes									19	11	12
Increase in valuation allowance									4	18	19
Release of valuation allowance									(14)	(134)	(26)
Change in tax rates									23	(1)	(10)
Intergroup transfer									(30)
Foreign currency losses on intra-entity loans										(59)
Non-deductible long term incentive plan									8	10	1
Other									5	2	2
Total	$ (2)	$ 61	$ 19	$ 52	$ (19)	$ (152)	$ 3	$ 17	$ 130	$ (151)	$ 11

Income Taxes - Significant Components of Company's Net Deferred Tax Assets/(Liabilities) (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets:
Allowances and reserves	$ 26	$ 35
Employee benefits and compensation	86	91
Other accruals	56	68
Tax attribute carryforwards	314	482
Other	4	13
Total deferred tax assets	486	689
Valuation allowance	(206)	(193)
Net deferred tax assets	280	496
Deferred tax liabilities:
Depreciation, amortization and artist advances		(15)
Intangible assets	(434)	(574)
Total deferred tax liabilities	(434)	(589)
Net deferred tax liabilities	$ (154)	$ (93)

Income Taxes - Reconciliation of Unrecognized Tax Benefits Including Interest and Penalties (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Beginning Balance	$ 19	$ 30	$ 35
Additions for current year tax positions	3	2	7
Additions for prior year tax positions	3	1	1
Subtractions for prior year tax positions	(7)	(14)	(13)
Ending Balance	$ 18	$ 19	$ 30

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Compensation And Retirement Disclosure [Abstract]
Employee benefit plan obligation	$ 73	$ 75
Aggregate pension liability recorded in balance sheet	50	50
Pension expense	4	4	$ 4
Employers contribution plan expense	$ 5	$ 5	$ 5

Share-Based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2018 USD ($) Employee $ / shares shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of additional employees to participate in plan \| Employee	2
Shares held in employee stock option plan, allocated \| shares	82.1918
Shares issued and outstanding to LLC \| shares	52
Deferred equity unit share \| shares	0.0001
Weighted-average grant date intrinsic value of share awards \| $ / shares	$ 148.69	$ 140.04	$ 107.13
Non-cash compensation expense	$ 62	$ 70	$ 23
Free cash flow compensation expense	19	30
Dividend expense related to equity units	27	2
Unrecognized compensation costs	$ 18	$ 34	2
Total compensation of unvested awards expected to be recognized, weighted average period	2 years
Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash compensation expense			13
Non-Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash compensation expense			$ 10
Matching Equity Units Vesting Years
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share awards vesting period	2 years
Deferred Equity Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares held in employee stock option plan, allocated \| shares	41.0959
Fair value of deferred equity units \| $ / shares	$ 304.22	$ 241.75	$ 142.21
Deferred Equity Units \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share awards vesting period	1 year
Deferred Equity Units \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share awards vesting period	7 years
Matching Equity Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares held in employee stock option plan, allocated \| shares	41.0959
Weighted-average grant date intrinsic value of share awards \| $ / shares		$ 90.06

Share-Based Compensation Plans - Summary of Company's Share Awards (Detail) - $ / shares	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Intrinsic Value, Granted	$ 148.69	$ 140.04	$ 107.13
Deferred Equity Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested units	13	19
Units, Granted		11
Units, Vested	(7)	(17)
Unvested units	6	13	19
Unvested units, Fair Value	$ 241.75	$ 142.21
Fair Value, Granted		241.75
Fair Value, Vested	304.22	241.75
Unvested units, Fair Value	304.22	241.75	$ 142.21
Unvested units, Weighted-Average Grant-Date Intrinsic Value	140.04	107.13
Weighted-Average Grant-Date Intrinsic Value, Granted		146.86
Weighted-Average Grant-Date Intrinsic Value, Vested	133.05	107.13
Unvested units, Weighted-Average Grant-Date Intrinsic Value	$ 148.69	$ 140.04	$ 107.13
Matching Equity Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested units	36	28
Units, Granted		11
Units, Vested	(9)	(3)
Unvested units	27	36	28
Unvested units, Intrinsic Value	$ 111.23	$ 35.08
Intrinsic Value, Granted		90.06
Vested	193.83	134.62
Unvested units, Intrinsic Value	167.15	111.23	$ 35.08
Unvested units, Weighted-Average Grant-Date Intrinsic Value	0	0
Unvested units, Weighted-Average Grant-Date Intrinsic Value	$ 0	$ 0	$ 0

Related Party Transactions - Additional Information (Detail)					3 Months Ended								12 Months Ended
	Jul. 12, 2017 USD ($)	Jul. 15, 2016 USD ($)	Aug. 13, 2015 USD ($)	Jan. 01, 2015 GBP (£)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Oct. 01, 2018 USD ($) shares	Apr. 16, 2018 USD ($)
Related Party Transaction [Line Items]
Lease arrangement with Related Party													$ 80,000,000	$ 62,000,000	$ 60,000,000
License fee					$ 583,000,000	$ 531,000,000	$ 488,000,000	$ 569,000,000	$ 501,000,000	$ 519,000,000	$ 415,000,000	$ 496,000,000	$ 2,171,000,000	1,931,000,000	1,707,000,000
Max Lousada
Related Party Transaction [Line Items]
Due from related parties																	$ 227,000
Songkick
Related Party Transaction [Line Items]
Acquisition date													Jul. 12, 2017
Purchase price of selected assets	$ 5,000,000
Access Industries
Related Party Transaction [Line Items]
Management fee minimum													$ 9,000,000
Management fees and reimbursed expenses													16,000,000	9,000,000	9,000,000
Expenses reimbursed															$ 2,000,000
Warner and Chappell Music Limited and WMG Acquisition Limited
Related Party Transaction [Line Items]
Lease arrangement with Related Party \| £				£ 3,460,250
Extended lease term				5 years
Extended lease term beginning date				Dec. 24, 2020
Extended lease term ending date				Dec. 24, 2025
Warner Music Inc
Related Party Transaction [Line Items]
IT support fee			$ 1,000
Warner Music Inc \| License fee
Related Party Transaction [Line Items]
License fee		$ 16,967.21	$ 2,775
Deezer
Related Party Transaction [Line Items]
Related party revenue													$ 39,000,000	$ 36,000,000
WMG China \| Subsequent Event
Related Party Transaction [Line Items]
Ownership percentage																20.00%
WMG China \| Subsequent Event \| Tencent Music Entertainment Group
Related Party Transaction [Line Items]
Purchase of ordinary shares \| shares																37,162,288
Purchase of ordinary shares, value																$ 100,000,000
WMG China \| Subsequent Event \| AI New Holdings 5 LLC
Related Party Transaction [Line Items]
Percentage of interest in subsidiary																80.00%

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended								12 Months Ended
	Jul. 29, 2015	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Commitments And Contingencies [Line Items]
Net lease and rental expense										$ 80	$ 62	$ 60
Firm's expected commitments										340	305
Other off-balance sheet commitments to investees		$ 4				$ 3				4	3
Revenues		$ 1,039	$ 958	$ 963	$ 1,045	$ 917	$ 917	$ 825	$ 917	$ 4,005	3,576	3,246
Sirius XM \| Settled Litigation
Commitments And Contingencies [Line Items]
Receipts from plaintiff	$ 210
Cash distribution												33
Revenues					$ 1						$ 4	$ 28

Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) $ in Millions	Sep. 30, 2018 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Operating Leases in 2019	$ 56
Operating Leases in 2020	50
Operating Leases in 2021	47
Operating Leases in 2022	46
Operating Leases in 2023	45
Operating Leases, Thereafter	245
Operating Leases, Total	$ 489

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Derivatives Fair Value [Line Items]
Companys hedged interest rate transactions	5 years
Outstanding hedge contracts	$ 0	$ 0
Deferred gains (losses) in comprehensive loss related to foreign exchange hedging	0	0
Deferred (losses) gains on derivative financial instruments	3,000,000
Pre-tax gains of the company derivative interest rate	4,000,000	0
Interest Rate Swap
Derivatives Fair Value [Line Items]
Outstanding hedge contracts	320,000,000	0
Deferred (losses) gains on derivative financial instruments	$ 3,000,000	$ 0

Derivative Financial Instruments - Summary of Amounts Recorded in Consolidated Balance Sheet (Detail)
$ in Millions

Sep. 30, 2018

USD ($)

Other Noncurrent Assets

Derivatives Fair Value [Line Items]

Other assets

$ 4

^[1]

[1]	$4 million of interest rate swap in an asset position.

Derivative Financial Instruments - Summary of Amounts Recorded in Consolidated Balance Sheet (Parenthetical) (Detail) $ in Millions	Sep. 30, 2018 USD ($)
Interest Rate Swap
Derivatives Fair Value [Line Items]
Foreign exchange derivative contracts in asset	$ 4

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Sep. 30, 2018 Operations Customer	Sep. 30, 2017 Customer	Sep. 30, 2016 Customer
Segment Reporting Information [Line Items]
Number of fundamental operations \| Operations	2
Recorded Music And Music Publishing Segments \| Sales Revenue, Net \| Customer Concentration
Segment Reporting Information [Line Items]
Number of customer \| Customer	2	1	1
Recorded Music And Music Publishing Segments \| Sales Revenue, Net \| Customer Concentration \| Customer One
Segment Reporting Information [Line Items]
Customer Concentration	15.00%	14.00%	14.00%
Recorded Music And Music Publishing Segments \| Sales Revenue, Net \| Customer Concentration \| Customer Two
Segment Reporting Information [Line Items]
Customer Concentration	14.00%

Segment Information - Schedule of Segment Information (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues									$ 4,005	$ 3,576	$ 3,246
Operating income	$ 16	$ 28	$ 83	$ 90	$ (1)	$ 51	$ 78	$ 94	217	222	214
Amortization of intangible assets	42	56	55	53	49	51	50	51	206	201	243
Depreciation of property, plant and equipment	14	$ 15	$ 14	$ 12	12	$ 13	$ 13	$ 12	55	50	50
OIBDA									478	473	507
Total assets	5,344				5,718				5,344	5,718
Capital expenditures									74	44	42
Operating Segments \| Recorded Music
Segment Reporting Information [Line Items]
Revenues									3,360	3,020	2,736
Operating income									307	283	247
Amortization of intangible assets									138	136	180
Depreciation of property, plant and equipment									35	32	32
OIBDA									480	451	459
Total assets	1,999				2,085				1,999	2,085
Capital expenditures									20	21	18
Operating Segments \| Music Publishing
Segment Reporting Information [Line Items]
Revenues									653	572	524
Operating income									84	81	68
Amortization of intangible assets									68	65	63
Depreciation of property, plant and equipment									7	6	7
OIBDA									159	152	138
Total assets	2,423				2,510				2,423	2,510
Capital expenditures									3	5	7
Corporate Expenses and Eliminations
Segment Reporting Information [Line Items]
Revenues									(8)	(16)	(14)
Operating income									(174)	(142)	(101)
Depreciation of property, plant and equipment									13	12	11
OIBDA									(161)	(130)	(90)
Total assets	$ 922				$ 1,123				922	1,123
Capital expenditures									$ 51	$ 18	$ 17

Segment Information - Long-Lived Assets and Revenue by Geographical Areas (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 4,005	$ 3,576	$ 3,246
Long-lived Assets	229	213
United States
Segment Reporting Information [Line Items]
Revenue	1,754	1,587	1,360
Long-lived Assets	156	139
United Kingdom
Segment Reporting Information [Line Items]
Revenue	593	522	491
Long-lived Assets	23	26
All Other Territories
Segment Reporting Information [Line Items]
Revenue	1,658	1,467	$ 1,395
Long-lived Assets	$ 50	$ 48

Additional Financial Information - Additional Information (Detail) - USD ($) $ in Millions						12 Months Ended
	Aug. 07, 2018	May 07, 2018	Jan. 08, 2018	Jun. 05, 2017	Dec. 02, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow Information [Line Items]
Accrued interest paid						$ 148	$ 138	$ 181
Income taxes paid net of refunds						49	$ 40	$ 41
Special cash dividends payable, date to be paid	Aug. 10, 2018	May 11, 2018	Jan. 12, 2018	Jul. 31, 2017	Jan. 03, 2017
Special cash dividends	$ 500	$ 300	$ 125	$ 30	$ 54
Special cash dividends payable, date of record	Aug. 07, 2018	May 07, 2018	Jan. 11, 2018	Jun. 30, 2017	Dec. 30, 2016
Spotify Technology S.A.
Supplemental Cash Flow Information [Line Items]
Sale of common shares, consideration received						504
Estimated pre-tax gain, net of estimated royalty expense and other related costs						382
Estimated advance royalty recoveries						12
Estimated tax expense associated with net income on sale of shares						$ 77

Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Detail) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

$ (5)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

$ (4)

Level 2

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Level 3

(5)

Other Current Liabilities

(8)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Other Current Liabilities | Level 3

^[1]

(2)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

^[1]

(2)

Other Noncurrent Assets

Interest Rate Swap

^[2]

Other Noncurrent Assets | Level 2

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Interest Rate Swap

^[2]

Other Non-Current Liabilities

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Other Non-Current Liabilities | Level 3

^[1]

(6)

(5)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Quarterly Financial Information Disclosure [Abstract]

^[1]

$ (6)

$ (5)

[1]

[2]

The fair value of the interest rate swap is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay as of September 30, 2018 for contracts involving the same attributes and maturity dates.

Fair Value Measurements - Reconciliation of Net Liabilities Classified as Level 3 (Detail) - Level 3 $ in Millions	12 Months Ended
	Sep. 30, 2018 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at September 30, 2017	$ (5)
Additions	(3)
Balance at September 30, 2018	$ (8)

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Level 2 measurement
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt instrument, fair value disclosure	$ 2,862	$ 2,936

Subsequent Events - Additional Information (Detail) € in Thousands, $ in Thousands					12 Months Ended
	Nov. 05, 2018 USD ($)	Oct. 12, 2018 EUR (€)	Oct. 10, 2018 EUR (€)	Oct. 09, 2018 EUR (€)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Oct. 10, 2018 USD ($)	Oct. 10, 2018 EUR (€)	Oct. 09, 2018 USD ($)	Oct. 09, 2018 EUR (€)	Sep. 30, 2018 EUR (€)	Sep. 30, 2017 EUR (€)	Sep. 30, 2016
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument \| $					$ 2,851,000	$ 2,846,000
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument					$ 402,000	$ 407,000					€ 345,000	€ 345,000
Due date of senior secured notes					2024	2024
Interest rate					4.125%	4.125%					4.125%	4.125%
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument \| $					$ 250,000	$ 250,000
Due date of senior secured notes					2024	2024
Interest rate					4.875%	4.875%					4.875%	4.875%
5.625% Senior Secured Notes
Subsequent Event [Line Items]
Interest rate					5.625%	5.625%					5.625%	5.625%	5.625%
5.625% Senior Secured Notes \| Acquisition Corp.
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument \| $					$ 248,000	$ 248,000
Due date of senior secured notes					2022	2022
Interest rate					5.625%	5.625%					5.625%	5.625%
Subsequent Event \| 3.625% Senior Secured Notes due 2026 \| Acquisition Corp.
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument \| €										€ 250,000
Due date of senior secured notes				2026
Interest rate		3.625%							3.625%	3.625%
Subsequent Event \| 4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Subsequent Event [Line Items]
Due date of senior secured notes		2024
Interest rate		4.125%							4.125%	4.125%
Redemptions of senior notes \| €		€ 34,500
Debt instrument remaining outstanding amount \| €		310,500
Senior notes redemption price \| €		€ 36,170
Redemption price, percentage of principal amount redeemed		103.00%
Subsequent Event \| 4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Subsequent Event [Line Items]
Aggregate principal amount of debt instrument \| €										€ 30,000
Due date of senior secured notes				2024
Interest rate									4.875%	4.875%
Debt instrument remaining outstanding amount \| $									$ 220,000
Subsequent Event \| 5.625% Senior Secured Notes \| Acquisition Corp.
Subsequent Event [Line Items]
Due date of senior secured notes	2022
Interest rate	5.625%								5.625%	5.625%
Redemptions of senior notes \| $	$ 26,550
Debt instrument remaining outstanding amount \| $	220,950
Senior notes redemption price \| $	$ 27,000
Redemption price, percentage of principal amount redeemed	102.813%
EMP \| Subsequent Event
Subsequent Event [Line Items]
Purchase price of selected assets \| €			€ 166,000
Agreed enterprise value for certain shares acquired							$ 180,000	€ 155,000
EMP \| Subsequent Event \| 4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Subsequent Event [Line Items]
Redemptions of senior notes \| €				€ 34,500

Quarterly Financial Information - Quarterly Information (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

$ 1,039

$ 958

$ 963

$ 1,045

$ 917

$ 825

$ 917

$ 4,005

$ 3,576

$ 3,246

(583)

(531)

(488)

(569)

(501)

(519)

(415)

(496)

(2,171)

(1,931)

(1,707)

(398)

^[1]

(343)

^[1]

(337)

^[1]

(333)

^[1]

(368)

^[2]

(296)

^[2]

(282)

^[2]

(276)

^[2]

(1,411)

^[3]

(1,222)

^[3]

(1,082)

^[3]

(42)

(56)

(55)

(53)

(49)

(51)

(50)

(51)

(206)

(201)

(243)

(1,023)

(930)

(880)

(955)

(918)

(866)

(747)

(823)

(3,788)

(3,354)

(3,032)

(1)

217

222

214

(7)

(23)

(1)

(3)

(32)

(31)

(35)

(18)

Interest expense, net

(33)

(36)

(37)

(36)

(40)

(138)

(149)

(173)

Other (expense) income

394

(6)

(19)

(21)

(19)

394

(40)

(15)

382

(57)

(9)

442

(2)

Less: Income attributable to noncontrolling interest

(61)

(19)

(52)

152

(3)

(17)

(130)

151

(11)

Net (loss) income

(13)

321

(1)

(38)

143

(1)

(2)

(1)

(2)

(1)

(2)

(5)

(6)

(5)

Net income attributable to Warner Music Group Corp.

$ (14)

$ 320

$ (3)

$ 4

$ (39)

$ 141

$ 19

$ 22

$ 307

$ 143

$ 25

[1]	(a) Includes depreciation expense of: $(14) $(15) $(14) $(12)
[2]	(a) Includes depreciation expense of: $(12) $(13) $(13) $(12)
[3]	(a) Includes depreciation expense of: $(55) $(50) $(50)

Quarterly Financial Information - Quarterly Information (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Depreciation expense	$ (14)	$ (15)	$ (14)	$ (12)	$ (12)	$ (13)	$ (13)	$ (12)	$ (55)	$ (50)	$ (50)

Guarantor and Non-Guarantor Subsidiaries Financial Information - Additional Information (Detail)		12 Months Ended
	Mar. 14, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
5.625% Senior Secured Notes due 2022
Condensed Financial Statements Captions [Line Items]
Interest rate		5.625%	5.625%	5.625%
5.625% Senior Secured Notes due 2022 \| Acquisition Corp.
Condensed Financial Statements Captions [Line Items]
Interest rate		5.625%	5.625%
Due date of Senior Secured Notes		2022	2022
5.00% Senior Secured Notes due 2023 \| Acquisition Corp.
Condensed Financial Statements Captions [Line Items]
Interest rate		5.00%
Due date of Senior Secured Notes		2023
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Condensed Financial Statements Captions [Line Items]
Interest rate		4.125%	4.125%
Due date of Senior Secured Notes		2024	2024
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Condensed Financial Statements Captions [Line Items]
Interest rate		4.875%	4.875%
Due date of Senior Secured Notes		2024	2024
5.50% Senior Notes due 2026 \| Acquisition Corp.
Condensed Financial Statements Captions [Line Items]
Interest rate	5.50%	5.50%	5.50%
Due date of Senior Secured Notes	2026	2026	2026

Guarantor and Non-Guarantor Subsidiaries Financial Information - Consolidating Balance Sheet (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Current assets:
Cash and equivalents	$ 514	$ 647
Accounts receivable, net	447	404
Inventories	42	39
Royalty advances expected to be recouped within one year	123	141
Prepaid and other current assets	50	44
Total current assets	1,176	1,275
Royalty advances expected to be recouped after one year	153	172
Property, plant and equipment, net	229	213
Goodwill	1,692	1,685	$ 1,627
Intangible assets subject to amortization, net	1,851	2,090
Intangible assets not subject to amortization	154	117
Deferred tax assets, net	11	97
Other assets	78	69
Total assets	5,344	5,718
Current liabilities:
Accounts payable	281	208
Accrued royalties	1,396	1,263
Accrued liabilities	423	365
Accrued interest	31	41
Deferred revenue	208	197
Other current liabilities	34	26
Total current liabilities	2,373	2,100
Long-term debt	2,819	2,811
Deferred tax liabilities, net	165	190
Other noncurrent liabilities	307	309
Total liabilities	5,664	5,410
Total Warner Music Group Corp. equity	(334)	293
Noncontrolling interest	14	15
Total equity	(320)	308	$ 210	$ 239
Total liabilities and equity	5,344	5,718
Reportable Legal Entities \| Guarantor Subsidiaries
Current assets:
Cash and equivalents	169	347
Accounts receivable, net	262	214
Inventories	18	12
Royalty advances expected to be recouped within one year	79	89
Prepaid and other current assets	15	15
Total current assets	543	677
Due from (to) parent companies	(214)	96
Investments in and advances to consolidated subsidiaries	2,192	1,312
Royalty advances expected to be recouped after one year	93	109
Property, plant and equipment, net	155	139
Goodwill	1,370	1,368
Intangible assets subject to amortization, net	956	1,029
Intangible assets not subject to amortization	71	71
Deferred tax assets, net		89
Other assets	55	45
Total assets	5,221	4,935
Current liabilities:
Accounts payable	200	135
Accrued royalties	869	732
Accrued liabilities	195	144
Deferred revenue	94	125
Other current liabilities	2	3
Total current liabilities	1,360	1,139
Deferred tax liabilities, net	3
Other noncurrent liabilities	197	196
Total liabilities	1,560	1,335
Total Warner Music Group Corp. equity	3,656	3,596
Noncontrolling interest	5	4
Total equity	3,661	3,600
Total liabilities and equity	5,221	4,935
Reportable Legal Entities \| Non-Guarantor Subsidiaries
Current assets:
Cash and equivalents	345	300
Accounts receivable, net	185	190
Inventories	24	27
Royalty advances expected to be recouped within one year	44	52
Prepaid and other current assets	35	29
Total current assets	633	598
Due from (to) parent companies	(274)	(514)
Royalty advances expected to be recouped after one year	60	63
Property, plant and equipment, net	74	74
Goodwill	322	317
Intangible assets subject to amortization, net	895	1,061
Intangible assets not subject to amortization	83	46
Deferred tax assets, net	11	8
Other assets	11	17
Total assets	1,815	1,670
Current liabilities:
Accounts payable	81	73
Accrued royalties	527	531
Accrued liabilities	228	221
Deferred revenue	114	72
Other current liabilities	32	23
Total current liabilities	982	920
Deferred tax liabilities, net	162	190
Other noncurrent liabilities	108	112
Total liabilities	1,252	1,222
Total Warner Music Group Corp. equity	554	437
Noncontrolling interest	9	11
Total equity	563	448
Total liabilities and equity	1,815	1,670
Reportable Legal Entities \| Warner Music Group Corp.
Current assets:
Investments in and advances to consolidated subsidiaries	675	377
Total assets	675	377
Current liabilities:
Total Warner Music Group Corp. equity	675	377
Total equity	675	377
Total liabilities and equity	675	377
Reportable Legal Entities \| WMG Acquisition Corp.
Current assets:
Due from (to) parent companies	488	418
Investments in and advances to consolidated subsidiaries	2,018	2,721
Other assets	12	7
Total assets	2,518	3,146
Current liabilities:
Accrued interest	31	41
Total current liabilities	31	41
Long-term debt	2,819	2,811
Other noncurrent liabilities	2	1
Total liabilities	2,852	2,853
Total Warner Music Group Corp. equity	(334)	293
Total equity	(334)	293
Total liabilities and equity	2,518	3,146
Reportable Legal Entities \| WMG Acquisition Corp. Consolidated
Current assets:
Cash and equivalents	514	647
Accounts receivable, net	447	404
Inventories	42	39
Royalty advances expected to be recouped within one year	123	141
Prepaid and other current assets	50	44
Total current assets	1,176	1,275
Royalty advances expected to be recouped after one year	153	172
Property, plant and equipment, net	229	213
Goodwill	1,692	1,685
Intangible assets subject to amortization, net	1,851	2,090
Intangible assets not subject to amortization	154	117
Deferred tax assets, net	11	97
Other assets	78	69
Total assets	5,344	5,718
Current liabilities:
Accounts payable	281	208
Accrued royalties	1,396	1,263
Accrued liabilities	423	365
Accrued interest	31	41
Deferred revenue	208	197
Other current liabilities	34	26
Total current liabilities	2,373	2,100
Long-term debt	2,819	2,811
Deferred tax liabilities, net	165	190
Other noncurrent liabilities	307	309
Total liabilities	5,664	5,410
Total Warner Music Group Corp. equity	(334)	293
Noncontrolling interest	14	15
Total equity	(320)	308
Total liabilities and equity	5,344	5,718
Reportable Legal Entities \| WMG Holdings Corp.
Current assets:
Investments in and advances to consolidated subsidiaries	675	377
Total assets	675	377
Current liabilities:
Total Warner Music Group Corp. equity	675	377
Total equity	675	377
Total liabilities and equity	675	377
Eliminations
Current assets:
Investments in and advances to consolidated subsidiaries	(1,350)	(754)
Total assets	(1,350)	(754)
Current liabilities:
Total Warner Music Group Corp. equity	(1,350)	(754)
Total equity	(1,350)	(754)
Total liabilities and equity	(1,350)	(754)
Eliminations \| WMG Acquisition Corp.
Current assets:
Investments in and advances to consolidated subsidiaries	(4,210)	(4,033)
Total assets	(4,210)	(4,033)
Current liabilities:
Total Warner Music Group Corp. equity	(4,210)	(4,033)
Total equity	(4,210)	(4,033)
Total liabilities and equity	$ (4,210)	$ (4,033)

Guarantor and Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Operations (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Condensed Income Statements Captions [Line Items]

$ 1,039

$ 958

$ 963

$ 1,045

$ 917

$ 825

$ 917

$ 4,005

$ 3,576

$ 3,246

(583)

(531)

(488)

(569)

(501)

(519)

(415)

(496)

(2,171)

(1,931)

(1,707)

(398)

^[1]

(343)

^[1]

(337)

^[1]

(333)

^[1]

(368)

^[2]

(296)

^[2]

(282)

^[2]

(276)

^[2]

(1,411)

^[3]

(1,222)

^[3]

(1,082)

^[3]

(42)

(56)

(55)

(53)

(49)

(51)

(50)

(51)

(206)

(201)

(243)

(1,023)

(930)

(880)

(955)

(918)

(866)

(747)

(823)

(3,788)

(3,354)

(3,032)

(1)

217

222

214

(7)

(23)

(1)

(3)

(32)

(31)

(35)

(18)

Equity gains (losses) from consolidated subsidiaries

(33)

(36)

(37)

(36)

(40)

(138)

(149)

(173)

394

(41)

(15)

382

(57)

(9)

442

(2)

(61)

(19)

(52)

152

(3)

(17)

(130)

151

(11)

Less: Income attributable to noncontrolling interest

312

149

(1)

(2)

(1)

(2)

(1)

(2)

(5)

(6)

(5)

Net income attributable to Warner Music Group Corp.

$ (14)

$ 320

$ (3)

$ 4

$ (39)

$ 141

$ 19

$ 22

307

143

Reportable Legal Entities | Guarantor Subsidiaries

Condensed Income Statements Captions [Line Items]

2,284

1,978

1,668

(1,090)

(922)

(703)

(1,040)

(900)

(739)

(96)

(100)

(118)

(2,226)

(1,922)

(1,560)

108

Equity gains (losses) from consolidated subsidiaries

122

(17)

191

128

187

(130)

154

(20)

Less: Income attributable to noncontrolling interest

282

167

(1)

Net income attributable to Warner Music Group Corp.

281

166

Reportable Legal Entities | Non-Guarantor Subsidiaries

Condensed Income Statements Captions [Line Items]

2,245

2,008

1,887

(1,442)

(1,275)

(1,192)

(534)

(464)

(110)

(101)

(125)

(2,086)

(1,840)

(1,781)

159

168

106

(26)

(56)

(79)

(23)

143

(39)

(30)

Less: Income attributable to noncontrolling interest

104

(4)

(5)

(4)

Net income attributable to Warner Music Group Corp.

100

Reportable Legal Entities | Warner Music Group Corp.

Equity gains (losses) from consolidated subsidiaries

307

143

307

143

Net income attributable to Warner Music Group Corp.

307

143

307

143

Reportable Legal Entities | WMG Acquisition Corp.

(1)

(1)

(1)

(31)

(35)

(4)

Equity gains (losses) from consolidated subsidiaries

(116)

(95)

(84)

207

124

162

377

(1)

(10)

437

(8)

(130)

151

(11)

Net income attributable to Warner Music Group Corp.

307

143

307

143

Reportable Legal Entities | WMG Acquisition Corp. Consolidated

Condensed Income Statements Captions [Line Items]

4,005

3,576

3,246

(2,171)

(1,931)

(1,707)

(1,411)

(1,222)

(1,082)

(206)

(201)

(243)

(3,788)

(3,354)

(3,032)

217

222

214

(31)

(35)

(4)

Equity gains (losses) from consolidated subsidiaries

(138)

(149)

(159)

394

(41)

442

(2)

(130)

151

(11)

Less: Income attributable to noncontrolling interest

312

149

(5)

(6)

(5)

Net income attributable to Warner Music Group Corp.

307

143

Reportable Legal Entities | WMG Holdings Corp.

(14)

Equity gains (losses) from consolidated subsidiaries

(14)

307

143

307

143

Net income attributable to Warner Music Group Corp.

307

143

307

143

Eliminations

Equity gains (losses) from consolidated subsidiaries

(614)

(286)

(78)

(614)

(286)

(78)

Net income attributable to Warner Music Group Corp.

(614)

(286)

(78)

(614)

(286)

(78)

Eliminations | WMG Acquisition Corp.

Condensed Income Statements Captions [Line Items]

(524)

(410)

(309)

361

266

188

163

143

121

524

409

309

(1)

Equity gains (losses) from consolidated subsidiaries

(329)

(210)

(236)

(329)

(211)

(235)

169

(124)