View Filing Data

$ 1,071

$ 1,090

$ 2,327

$ 2,293

(535)

(559)

(1,200)

(1,185)

^[1]

(538)

(354)

(917)

(730)

Amortization expense

(47)

(55)

(94)

(109)

(1,120)

(968)

(2,211)

(2,024)

(49)

122

116

269

(3)

Interest expense, net

(33)

(36)

(66)

(72)

Other (expense) income

(4)

(9)

Income tax benefit (expense)

(86)

115

251

(48)

(98)

Less: Income attributable to noncontrolling interest

(74)

153

(2)

Net (loss) income attributable to Warner Music Group Corp.

$ (74)

$ 67

$ 46

$ 153

Net (loss) income per share attributable to Warner Music Group Corp.’s stockholders:

Basic and Diluted (in dollars per share)

$ (0.15)

$ 0.13

$ 0.09

$ 0.30

Weighted average common shares:

Basic and Diluted (in shares)

501,991,944

[1]	Includes depreciation expense of $(14) and $(14) for the three months ended March 31, 2020 and March 31, 2019, respectively, and $(38) and $(28) for the six months ended March 31, 2020 and March 31, 2019, respectively.

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Depreciation expense	$ (14)	$ (14)	$ (38)	$ (28)

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (74)	$ 48
Other comprehensive loss, net of tax:
Foreign currency adjustment	(15)	(8)
Deferred loss on derivative financial instruments	(23)	(20)
Other comprehensive loss, net of tax	(38)	(28)
Total comprehensive (loss) income	(112)	20
Less: Income attributable to noncontrolling interest	0	(2)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$ (112)	$ 18

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income	$ 48	$ 153
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	132	137
Unrealized gains and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts	(7)	(24)
Deferred income taxes	(31)	27
Loss on extinguishment of debt	0	3
Net loss (gain) on divestitures and investments	15	(32)
Non-cash interest expense	3	3
Equity-based compensation expense	160	14
Changes in operating assets and liabilities:
Accounts receivable, net	6	(90)
Inventories	9	13
Royalty advances	(47)	(61)
Accounts payable and accrued liabilities	(109)	(100)
Royalty payables	38	46
Accrued interest	0	1
Operating lease liabilities	(2)	0
Deferred revenue	(14)	(19)
Other balance sheet changes	(37)	28
Net cash provided by operating activities	164	99
Cash flows from investing activities
Acquisition of music publishing rights and music catalogs, net	(18)	(16)
Capital expenditures	(28)	(59)
Investments and acquisitions of businesses, net of cash received	(5)	(218)
Net cash used in investing activities	(51)	(293)
Cash flows from financing activities
Call premiums paid and deposit on early redemption of debt	0	(2)
Deferred financing costs paid	0	(4)
Distribution to noncontrolling interest holder	(1)	(2)
Dividends paid	(244)	(31)
Net cash (used in) provided by financing activities	(245)	151
Effect of exchange rate changes on cash and equivalents	(3)	(1)
Net decrease in cash and equivalents	(135)	(44)
Cash and equivalents at beginning of period	619	514
Cash and equivalents at end of period	484	470
3.625% Senior Secured Notes
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp. 3.625% Senior Secured Notes	0	287
4.125% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes	0	(40)
4.875% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes	0	(30)
5.625% Senior Secured Notes
Cash flows from financing activities
Repayment of Senior Secured Notes	$ 0	$ (27)

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical)	Mar. 31, 2020	Mar. 31, 2019
3.625% Senior Secured Notes
Interest rate	3.625%	3.625%
4.125% Senior Secured Notes
Interest rate	4.125%	4.125%
4.875% Senior Secured Notes
Interest rate	4.875%	4.875%
5.625% Senior Secured Notes
Interest rate	5.625%	5.625%

Consolidated Statements of Deficit (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Feb. 29, 2020	Oct. 01, 2019	Oct. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ (169)	$ (139)	$ (269)	$ (320)
Net (loss) income	(74)	67	48	153
Other comprehensive loss, net of tax	(38)	(13)	(28)	(35)
Dividends	(37)	(32)	(75)	(63)
Distribution to noncontrolling interest holders		0	(1)	(2)
Other	0	(3)	0	(3)
Ending balance	$ (285)	$ (120)	$ (285)	$ (120)
ASC 842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption						$ 7
ASC 718
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption					$ 33
ASC 606
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption							$ 150
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)			0
Ending balance (in shares)	0		0
Class B Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)			505,830,022
Ending balance (in shares)	510,000,000		510,000,000
Class A Common Stock \| Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	0	0	0	0
Beginning balance	$ 0	$ 0	$ 0	$ 0
Ending balance (in shares)	0	0	0	0
Ending balance	$ 0	$ 0	$ 0	$ 0
Class A Common Stock \| Class B Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	510,000,000	505,830,022	505,830,022	501,991,944
Beginning balance	$ 1	$ 1	$ 1	$ 1
Other (in shares)			4,169,978	3,838,078
Ending balance (in shares)	510,000,000	505,830,022	510,000,000	505,830,022
Ending balance	$ 1	$ 1	$ 1	$ 1
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,127	1,127	1,127	1,127
Ending balance	1,127	1,127	1,127	1,127
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,088)	(1,078)	(1,177)	(1,272)
Net (loss) income	(74)	67	46	153
Dividends	(37)	(32)	(75)	(63)
Ending balance	(1,166)	(1,043)	(1,166)	(1,043)
Accumulated Deficit \| ASC 842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption						7
Accumulated Deficit \| ASC 718
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption					33
Accumulated Deficit \| ASC 606
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption							139
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(230)	(212)	(240)	(190)
Other comprehensive loss, net of tax	(38)	(13)	(28)	(35)
Ending balance	(268)	(225)	(268)	(225)
Total Warner Music Group Corp. Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(190)	(162)	(289)	(334)
Net (loss) income	(74)	67	46	153
Other comprehensive loss, net of tax	(38)	(13)	(28)	(35)
Dividends	(37)	(32)	(75)	(63)
Ending balance	(306)	(140)	(306)	(140)
Total Warner Music Group Corp. Deficit \| ASC 842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption						$ 7
Total Warner Music Group Corp. Deficit \| ASC 718
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption					$ 33
Total Warner Music Group Corp. Deficit \| ASC 606
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption							139
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	21	23	20	14
Net (loss) income	0	0	2
Distribution to noncontrolling interest holders		0	(1)	(2)
Other	0	(3)		(3)
Ending balance	$ 21	$ 20	$ 21	$ 20
Noncontrolling Interest \| ASC 606
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of ASC adoption							$ 11

Consolidated Statements of Deficit (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends (in dollars per share)	$ 0.07	$ 0.06	$ 0.15	$ 0.12

Description of Business	6 Months Ended
Description of Business	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	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 entertainment companies. Acquisition of Warner Music Group by Access Industries Pursuant to the 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 New York Stock Exchange (the “NYSE”). The Company continues to voluntarily file with the U.S. Securities and Exchange Commission (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. All of the Company’s common stock is owned by affiliates of Access. On February 6, 2020, the Company filed a Form S-1 registration statement with the SEC for an initial public offering (“IPO”). The completion of the proposed IPO will depend on, among other things, the SEC review process and customary regulatory approvals, as well as market conditions. There can be no assurance that the proposed IPO will occur. Recorded Music Operations Our Recorded Music business primarily consists of the discovery and development of recording artists and the related marketing, promotion, distribution, sale and licensing of music created by such recording artists. We play an integral role in virtually all aspects of the recorded music value chain from discovering and developing talent to producing, distributing and selling music to marketing and promoting recording artists and their music. In the United States, our Recorded Music business is conducted principally through our major record labels—Atlantic Records and Warner Records. In October 2018, we launched Elektra Music Group in the United States as a standalone label group, which comprises the Elektra, Fueled by Ramen and Roadrunner labels. Our Recorded Music business also includes Rhino Entertainment, a division that specializes in marketing our recorded music catalog through compilations, reissuances of previously released music and video titles and releasing previously unreleased material from our vault. We also conduct our Recorded Music business 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, our Recorded Music business is conducted in more than 70 countries through various subsidiaries, affiliates and non-affiliated licensees. Internationally, we engage in the same activities as in the United States: discovering and signing artists and distributing, selling, marketing and promoting their music. In most cases, we also market, promote, distribute and sell the music of those recording artists for whom our domestic record labels have international rights. In certain smaller markets, we license the right to distribute and sell our music to non-affiliated third-party record labels. Our Recorded Music business’ distribution operations include Warner-Elektra-Atlantic Corporation (“WEA Corp.”), which markets, distributes and sells music and video products to retailers and wholesale distributors; Alternative Distribution Alliance (“ADA”), which markets, distributes and sells the products of independent labels to retail and wholesale distributors; and various distribution centers and ventures operated internationally. In addition to our music being sold in physical retail outlets, our music is also sold in physical form to online physical retailers, such as Amazon.com, barnesandnoble.com and bestbuy.com, and distributed in digital form to an expanded universe of digital partners, including streaming services such as those of Amazon, Apple, Deezer, SoundCloud, Spotify, Tencent Music Entertainment Group and YouTube, radio services such as iHeart Radio and SiriusXM and download services. We have integrated the marketing of digital content into all aspects of our business, including artist and repertoire (“A&R”) and distribution. Our 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. We also work side-by-side with our online and mobile partners to test new concepts. We believe existing and new digital businesses will be a significant source of growth and will provide new opportunities to successfully monetize our assets and create new revenue streams. The proportion of digital revenues attributable to each distribution channel varies by region and proportions may change as the introduction of new technologies continues. As one of the world’s largest music entertainment companies, we believe we are well positioned to take advantage of growth in digital distribution and emerging technologies to maximize the value of our assets. We have diversified our revenues beyond our traditional businesses by entering into expanded-rights deals with recording artists in order to partner with such artists in other aspects of their careers. Under these agreements, we provide services to and participate in recording artists’ activities outside the traditional recorded music business such as touring, merchandising and sponsorships. We have built and acquired artist services capabilities and platforms for marketing and distributing this broader set of music-related rights and participating more widely in the monetization of the artist brands we help create. We believe that entering into expanded-rights deals and enhancing our artist services capabilities in areas such as merchandising, VIP ticketing, fan clubs, concert promotion and management has permitted us to diversify revenue streams and capitalize on other revenue opportunities. This provides for improved long-term relationships with our recording artists and allows us to more effectively connect recording artists and fans. Music Publishing Operations While Recorded Music is focused on marketing, promoting, distributing and licensing a particular recording of a musical composition, Music Publishing is an intellectual property business focused on generating revenue from uses of the musical composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, our Music Publishing business garners a share of the revenues generated from use of the musical compositions. The operations of our Music Publishing business are conducted principally through Warner Chappell Music, our global music publishing company headquartered in Los Angeles with operations in over 70 countries through various subsidiaries, affiliates and non-affiliated licensees and sub-publishers. We own or control rights to more than 1.4 million musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over decades, our award-winning catalog includes over 80,000 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 Music also administers the music and soundtracks of several third-party television and film producers and studios. We have an extensive production music catalog collectively branded as Warner Chappell Production Music.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020. The consolidated balance sheet at September 30, 2019 has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (File No. 001-32502). 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. The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. As such, all references to March 31, 2020 and March 31, 2019 relate to the periods ended March 27, 2020 and March 29, 2019, respectively. For convenience purposes, the Company continues to date its second-quarter financial statements as of March 31. The fiscal year ended September 30, 2019 ended on September 27, 2019. The Company has performed a review of all subsequent events through the date the financial statements were issued and has determined that no additional disclosures are necessary. Common Stock and Earnings per Share On February 28, 2020, the Company amended its certificate of incorporation to increase its authorized capital stock to 2,100,000,000 shares, consisting of 1,000,000,000 shares of Class A common stock, par value $0.001 per share, 1,000,000,000 shares of Class B common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value $1.00 per share. In addition, the February 28, 2020 amendment to the Company’s certificate of incorporation also gave effect to the reclassification and 477,242.614671815-for-1 stock split of the Company’s existing common stock outstanding into 510,000,000 shares of Class B common stock. This stock split has been retrospectively presented throughout the interim financial statements. The consolidated statements of operations present basic and diluted earnings per share (“EPS”). Basic and diluted earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares less shares issued for the exercise of the deferred equity units. The deferred equity units are mandatorily redeemable and as such are excluded from the denominator of the basic and diluted EPS calculation. The Company did not have any dilutive securities for the three and six months ended March 31, 2020 and March 31, 2019. Share-Based Compensation The Company accounts for share-based payments as required by ASC 718, Compensation—Stock Compensation (“ASC 718”). Under the recognition provision of ASC 718, the Company’s liability classified share-based compensation costs are measured each reporting date until settlement. In February 2020, the Company filed a Form S-1 registration statement with the SEC for a proposed IPO, which required a change in accounting policy during the quarter from the intrinsic value method to fair value method in determining the basis of measurement of its share-based compensation liability. In determining fair value, the Company utilized an option pricing model for those awards with an option-like pay-off, which includes various inputs for volatility, term to exit, discount for lack of marketability, expected dividend yield and risk-free rates. For awards with an equity-like pay-off, inputs for discount of lack of marketability and non-performance risk were considered. The Company continued to use an income approach using a discounted cash flow model to determine its per-share value input within the model. As a result of this change in accounting policy, the Company recorded a decrease to its share-based compensation liability of $38 million, which resulted in a decrease of $33 million, net of tax, to accumulated deficit as of March 31, 2020. Income Taxes The Company uses the estimated annual effective tax rate method in computing its interim tax provision. Certain items, including those deemed to be unusual and infrequent are excluded from the estimated annual effective tax rate. In such cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which established a new ASC Topic 842 (“ASC 842”) that introduces 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 are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements (“ASU 2018-11”), which allows for retrospective application with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this option, entities do not need to apply ASC 842 (along with its disclosure requirements) to the comparative prior periods presented. The Company adopted ASU 2016-02 on October 1, 2019, using the modified retrospective transition method provided by ASU 2018-11. The adoption of ASU 2016-02 resulted in the recognition of operating lease liabilities of $366 million and ROU assets of $297 million, which is net of the historical deferred rent liability balance of $69 million, primarily related to real estate leases. The Company also recorded a decrease to opening accumulated deficit of $7 million, net of taxes, related to previously deferred gains related to sale-leaseback transactions. Upon transition, the Company adopted the “package of three” practical expedient provided by ASC 842 and therefore has not (1) reassessed whether any expired or existing contracts are or contain a lease, (2) reassessed the lease classification for expired or existing leases and (3) reassessed initial direct costs for any existing leases. Rather, the Company will retain the conclusions reached for these items under ASC 840. 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 adopted ASU 2017-12 in the first quarter of fiscal 2020 and this adoption did not have a significant impact on the Company’s financial statements. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies U.S. GAAP by making other changes. ASU 2019-12 will be effective for the annual periods beginning after December 15, 2021, and for interim periods beginning after December 15, 2022. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements.

Revenue Recognition

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue RecognitionFor our operating segments, Recorded Music and Music Publishing, the Company accounts for a contract when it has legally enforceable rights and obligations and collectability of consideration is probable. The Company identifies the performance obligations and determines the transaction price associated with the contract, which is then allocated to each performance obligation, using management’s best estimate of standalone selling price for arrangements with multiple performance obligations. Revenue is recognized when, or as, control of the promised services or goods is transferred to the Company’s customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods. An estimate of variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Certain of the Company’s arrangements include licenses of intellectual property with consideration in the form of sales- and usage-based royalties. Royalty revenue is recognized when the subsequent sale or usage occurs using the best estimates available of the amounts that will be received by the Company.

Disaggregation of Revenue

The Company’s revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:


	For the Three Months Ended March 31,						For the Six Months Ended March 31,
	2020		2019		2020		2019
	(in millions)						(in millions)
Revenue by Type
Digital	$	626	$	597	$	1,259	$	1,160
Physical	94		130		278		361
Total Digital and Physical	720		727		1,537		1,521
Artist services and expanded-rights	115		134		303		300
Licensing	72		72		151		153
Total Recorded Music	907		933		1,991		1,974
Performance	41		46		87		99
Digital	74		65		147		130
Mechanical	15		13		30		28
Synchronization	34		31		70		60
Other	2		3		5		6
Total Music Publishing	166		158		339		323
Intersegment eliminations	(2)		(1)		(3)		(4)
Total Revenues	$	1,071	$	1,090	$	2,327	$	2,293
Revenue by Geographical Location
U.S. Recorded Music	$	380	$	410	$	833	$	841
U.S. Music Publishing	87		75		168		148
Total U.S.	467		485		1,001		989
International Recorded Music	527		523		1,158		1,133
International Music Publishing	79		83		171		175
Total International	606		606		1,329		1,308
Intersegment eliminations	(2)		(1)		(3)		(4)
Total Revenues	$	1,071	$	1,090	$	2,327	$	2,293

Recorded Music

Recorded Music mainly involves selling, marketing, distribution and licensing of recorded music produced by the Company’s recording artists. Recorded Music revenues are derived from four main sources, which include digital, physical, artist services and expanded-rights and licensing.

Digital revenues are generated from the expanded universe of digital partners, including digital streaming services and download services. These licenses typically contain a single performance obligation, which is ongoing access to all intellectual property in an evolving content library, predicated on: (1) the business practice and contractual ability to remove specific content without a requirement to replace the content and without impact to minimum royalty guarantees and (2) the contracts not containing a specific listing of content subject to the license. Digital licensing contracts are generally long-term with consideration in the form of sales- and usage-based royalties that are typically received monthly. Certain contracts contain non-recoupable fixed fees or minimum guarantees, which are recoupable against royalties. Upon contract inception, the Company will assess whether a shortfall or breakage is expected (i.e., where the minimum guarantee will not be recouped through royalties) in order to determine timing of revenue recognition for the fixed fee or minimum guarantee.

For fixed fee and minimum guarantee contracts where breakage is expected, the total transaction price (fixed fee or minimum guarantee) is recognized proportionately over the contract term using an appropriate measure of progress which is typically based on the Company’s digital partner’s subscribers or streaming activity as these are measures of access to an evolving catalog, or on a straight-line basis. The Company updates its assessment of the transaction price each reporting period to see if anticipated royalty earnings exceed the minimum guarantee. For contracts where breakage is not expected, royalties are recognized as revenue as sales or usage occurs based upon the licensee’s usage reports and, when these reports are not available, revenue is based on historical data, industry information and other relevant trends.

Additionally, for certain licenses where the consideration is fixed and the intellectual property being licensed is static, revenue is recognized at the point in time when control of the licensed content is transferred to the customer.

Physical revenues are generated from the sale of physical products such as vinyl, CDs and DVDs. Revenues from the sale of physical Recorded Music products are recognized upon transfer of control to the customer, which typically occurs once the product has been shipped and the ability to direct use and obtain substantially all of the benefit from the asset 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.

Artist services and expanded-rights revenues are generated from artist services businesses and participations in expanded-rights associated with artists, including sponsorship, fan clubs, artist websites, merchandising, touring, concert promotion, ticketing and artist and brand management. Artist services and expanded-rights contracts are generally short term. Revenue is recognized as or when services are provided (e.g., at time of an artist’s event) assuming collectability is probable. In some cases, the Company is reliant on the artist to report revenue generating activities. For certain artist services and expanded-rights contracts, collectability is not considered probable until notification is received from the artist’s management.

Licensing revenues represent royalties or fees for the right to use sound recordings in combination with visual images such as in films or television programs, television commercials and video games. In certain territories, the Company may also receive royalties when sound recordings are performed publicly through broadcast of music on television, radio and cable and in public spaces such as shops, workplaces, restaurants, bars and clubs. Licensing contracts are generally short term. For fixed-fee contracts, revenue is recognized at the point in time when control of the licensed content is transferred to the customer. Royalty based contracts are recognized as the underlying sales or usage occurs.

Music Publishing

Music Publishing acts as a copyright owner and/or administrator of the musical compositions and generates revenues related to the exploitation of musical compositions (as opposed to recorded music). Music publishers generally receive royalties from the use of the musical compositions in public performances, digital and physical recordings and in combination with visual images. Music publishing revenues are derived from five main sources: mechanical, performance, synchronization, digital and other.

Performance revenues are received when the musical composition is performed publicly through broadcast of music on television, radio and cable, live performance at a concert or other venue (e.g., arena concerts and nightclubs) and performance of musical compositions in staged theatrical productions. Digital revenues are generated with respect to the musical compositions being embodied in recordings licensed to digital streaming services and digital download services and for digital performance. Mechanical revenues are generated with respect to the musical compositions embodied in recordings sold in any physical format or configuration such as vinyl, CDs and DVDs. Synchronization revenues represent the right to use the composition in combination with visual images such as in films or television programs, television commercials and video games as well as from other uses such as in toys or novelty items and merchandise. Other revenues represent earnings for use in printed sheet music and other uses. Digital and synchronization revenue recognition is similar for both Recorded Music and Music Publishing, therefore refer to the discussion within Recorded Music.

Included in these revenue streams, excluding synchronization and other, are licenses with performing rights organizations or collecting societies (e.g., ASCAP, BMI, SESAC and GEMA), which are long-term contracts containing a single performance obligation, which is ongoing access to all intellectual property in an evolving content library. The most common form of consideration for these contracts is sales- and usage-based royalties. The collecting societies submit usage reports, typically with payment for royalties due, often on a quarterly or biannual reporting period, in arrears. Royalties are recognized as the sale or usage occurs based upon usage reports and, when these reports are not available, royalties are estimated based on historical data, such as recent royalties reported, company-specific information with respect to changes in repertoire, industry information and other relevant trends. Also included in these revenue streams are smaller, short-term contracts for specified content, which generally involve a fixed fee. For fixed-fee contracts, revenue is recognized at the point in time when control of the license is transferred to the customer.

The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers.

Sales Returns and Uncollectible Accounts

In accordance with practice in the recorded music industry and as customary in many territories, certain physical revenue products (such as CDs and DVDs) are sold to customers with the right to return unsold items. Revenues from such sales are recognized when the products are shipped based on gross sales less a provision for future estimated returns.

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 the Company’s 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 and records an asset for the value of the returned goods and liability for the amounts expected to be refunded.

Similarly, management evaluates accounts receivables to determine if they will ultimately be collected. In performing this evaluation, significant judgments and estimates are involved, including an analysis of specific risks on a customer-by-customer basis for larger accounts and customers and a receivables aging analysis that determines the percent that has historically been uncollected by aged category. The time between the Company’s issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. Based on this information, management provides a reserve for the estimated amounts believed to be uncollectible.

Based on management’s analysis of sales returns, refund liabilities of $23 million and $23 million were established at March 31, 2020 and September 30, 2019, respectively.

Based on management’s analysis of uncollectible accounts, reserves of $21 million and $17 million were established at March 31, 2020 and September 30, 2019, respectively.

Principal versus Agent Revenue Recognition

The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.

In the normal course of business, the Company acts as an intermediary with respect to certain payments received from third parties. For example, the Company distributes music content on behalf of third-party record labels. Based on the above guidance, the Company records the distribution of content on behalf of third-party record labels on a gross basis, subject to the terms of the contract, as the Company controls the content before transfer to the customer. Conversely, recorded music compilations distributed by other record companies where the Company has a right to participate in the profits are recorded on a net basis.

Deferred Revenue

Deferred revenue principally relates to fixed fees and minimum guarantees received in advance of the Company’s performance or usage by the licensee. Reductions in deferred revenue are a result of the Company’s performance under the contract or usage by the licensee.

Deferred revenue increased by $172 million during the six months ended March 31, 2020 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $100 million were recognized during the six months ended March 31, 2020 related to the balance of deferred revenue at September 30, 2019. There were no other significant changes to deferred revenue during the reporting period.

Performance Obligations

The Company recognized revenue of $30 million and $35 million from performance obligations satisfied in previous periods for the six months ended March 31, 2020 and March 31, 2019, respectively.

Wholly and partially unsatisfied performance obligations represent future revenues not yet recorded under long-term intellectual property licensing contracts containing fixed fees, advances and minimum guarantees. Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2020 are as follows:


	Rest of FY20		FY21		FY22		Thereafter		Total
	(in millions)
Remaining performance obligations	$	360	$	767	$	59	$	—	$	1,186
Total	$	360	$	767	$	59	$	—	$	1,186

Comprehensive Income

6 Months Ended

Mar. 31, 2020

Equity [Abstract]

Comprehensive Income

Comprehensive income, which is reported in the accompanying consolidated statements of deficit, consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. For the Company, the components of other comprehensive income primarily consist of foreign currency translation gains and losses, minimum pension liabilities, and deferred gains and losses on financial instruments designated as hedges under ASC 815, Derivatives and Hedging, which include foreign exchange contracts. The following summary sets forth the changes in the components of accumulated other comprehensive loss, net of related tax benefit of approximately $6 million:


	Foreign Currency Translation Loss (a)		Minimum Pension Liability Adjustment		Deferred Gains (Losses) On Derivative Financial Instruments		Accumulated Other Comprehensive Loss, net
	(in millions)
Balance at September 30, 2019	$	(218)	$	(14)	$	(8)	$	(240)
Other comprehensive loss	(8)		—		(20)		(28)
Balance at March 31, 2020	$	(226)	$	(14)	$	(28)	$	(268)

______________________________________

(a)Includes historical foreign currency translation related to certain intra-entity transactions.

Leases

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

The Company’s lease portfolio consists operating real estate leases for its corporate offices and, to a lesser extent, storage and other equipment. Under ASC 842, a contract is or contains a lease when (1) an explicitly or implicitly identified asset has been deployed in the contract and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company determines if an arrangement is or contains a lease at inception of the contract. For all leases (finance and operating), other than those that qualify for the short-term recognition exemption, the Company will recognize on the balance sheet a lease liability for its obligation to make lease payments arising from the lease and a corresponding ROU asset representing its right to use the underlying asset over the period of use based on the present value of lease payments over the lease term as of the lease commencement date. ROU assets are adjusted for initial direct costs, lease payments made and incentives. As the rates implicit in our leases are not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This rate is based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments. The lease term used to calculate the lease liability will include options to extend or terminate the lease when the option to extend or terminate is at the Company’s discretion and it is reasonably certain that the Company will exercise the option. Fixed payments are recognized as lease expense on a straight-line basis over the lease term. For leases with a term of one year or less (“short-term leases”), the lease payments are recognized in the consolidated statement of operations on a straight-line basis over the lease term.

ASC 842 requires that only limited types of variable payments be included in the determination of lease payments, which affects lease classification and measurement. Variable lease costs, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet. The initial measurement of the lease liability and ROU asset are determined based on both the fixed lease payments and any variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate). The Company initially measures these variable lease payments using the index or rate at lease commencement (i.e., the spot or gross index or rate applied to the base rental amount). All other variable lease payments are recognized in the period in which the payments are incurred.

The Company’s operating ROU assets are included in operating lease right-of-use assets and the Company’s current and non-current operating lease liabilities are included in operating lease liabilities, current and operating lease liabilities, noncurrent, respectively, in the Company’s balance sheet.

Operating lease liabilities are amortized using the effective interest method. That is, in each period, the liability will be increased to reflect the interest that is accrued on the related liability by using the appropriate discount rate and decreased by the lease payments made during the period. The subsequent measurement of the ROU asset is linked to the amount recognized as the lease liability. Accordingly, the ROU asset is measured as the lease liability adjusted by (1) accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), (2) remaining unamortized initial direct costs and lease incentives, and (3) impairments of the ROU asset. Operating lease costs are included in Selling, general and administrative expenses.

For lease agreements that contain both lease and non-lease components, the Company has elected the practical expedient provided by ASC 842 that permits the accounting for these components as a single lease component (rather than separating the lease from the non-lease components and accounting for the components individually).

The Company enters into operating leases for buildings, office equipment, production equipment, warehouses, and other types of equipment. Our leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year.

Among the Company’s operating leases are its leases for the Ford Factory Building, located at 777 S. Santa Fe Avenue in Los Angeles, California, and for 27 Wrights Lane, Kensington, London. The landlord for both leases is an affiliate of Access. As of March 31, 2020, the aggregate lease liability related to these leases was $139 million.

There are no restrictions or covenants, such as those relating to dividends or incurring additional financial obligations, relating to our lease portfolio, and residual value guarantees are not significant.

The components of lease expense were as follows:


	Three Months Ended March 31, 2020		Six Months Ended March 31, 2020
	(in millions)
Lease Cost
Operating lease cost	$	12	$	26
Short-term lease cost	—		—
Variable lease cost	2		5
Sublease income	—		—
Total lease cost	$	14	$	31

Supplemental cash flow information related to leases was as follows:


	Six Months Ended March 31, 2020
	(in millions)
Cash paid for amounts included in the measurement of operating lease liabilities	$	28
Right-of-use assets obtained in exchange for operating lease obligations	9

Supplemental balance sheet information related to leases was as follows:


	March 31, 2020
	(in millions)
Operating Leases
Operating lease right-of-use assets	$	281

Operating lease liabilities, current	$	39
Operating lease liabilities, noncurrent	312
Total operating lease liabilities	$	351

Weighted Average Remaining Lease Term
Operating leases	9 years
Weighted Average Discount Rate
Operating leases	4.57		%

Maturities of lease liabilities were as follows:


Years	Operating Leases
	(in millions)
2020	$	40
2021	53
2022	50
2023	47
2024	47
Thereafter	190
Total lease payments	427
Less imputed interest	(76)
Total	$	351

As of March 31, 2020, there have been no leases entered into that have not yet commenced.

Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2019	$	1,297	$	464	$	1,761
Acquisitions	—		—		—

Other adjustments	—		—		—
Balance at March 31, 2020	$	1,297	$	464	$	1,761

The Company performs its annual goodwill impairment test in accordance with ASC 350, Intangibles—Goodwill and Other (“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. No indicators of impairment were identified during the current period that required the Company to perform an interim assessment or recoverability test.

Intangible Assets

Intangible assets consist of the following:


	Weighted-Average Useful Life	March 31, 2020		September 30, 2019
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	851	$	855
Music publishing copyrights	26 years	1,551		1,539
Artist and songwriter contracts	13 years	835		841
Trademarks	18 years	53		53
Other intangible assets	7 years	62		59
Total gross intangible asset subject to amortization		3,352		3,347
Accumulated amortization		(1,708)		(1,624)
Total net intangible assets subject to amortization		1,644		1,723
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	151		151
Total net intangible assets		$	1,795	$	1,874

Debt

6 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt Capitalization

Long-term debt, all of which was issued by Acquisition Corp., consists of the following:


	March 31, 2020		September 30, 2019
	(in millions)
Revolving Credit Facility (a)	$	—	$	—
Senior Term Loan Facility due 2023 (b)	1,315		1,313
5.000% Senior Secured Notes due 2023 (c)	298		298
4.125% Senior Secured Notes due 2024 (d)	339		336
4.875% Senior Secured Notes due 2024 (e)	218		218
3.625% Senior Secured Notes due 2026 (f)	492		488
5.500% Senior Notes due 2026 (g)	321		321
Total long-term debt, including the current portion (h)	$	2,983	$	2,974

______________________________________

(a)Reflects $180 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $13 million at both March 31, 2020 and September 30, 2019. There were no loans outstanding under the Revolving Credit Facility at March 31, 2020 or September 30, 2019. On April 3, 2020, Acquisition Corp. entered into an amendment to the Revolving Credit Facility which, among other things, increased the commitments under the Revolving Credit Facility from an aggregate principal amount of $180 million to an aggregate principal amount of $300 million. For a more detailed description of the changes effected by the amendment, see Note 14.

(b)Principal amount of $1.326 billion at both March 31, 2020 and September 30, 2019 less unamortized discount of $3 million and $3 million and unamortized deferred financing costs of $8 million and $10 million at March 31, 2020 and September 30, 2019, respectively.

(c)Principal amount of $300 million less unamortized deferred financing costs of $2 million at both March 31, 2020 and September 30, 2019, respectively.

(d)Face amount of €311 million at both March 31, 2020 and September 30, 2019. Above amounts represent the dollar equivalent of such note at March 31, 2020 and September 30, 2019. Principal amount of $342 million and $340 million less unamortized deferred financing costs of $3 million and $4 million at March 31, 2020 and September 30, 2019, respectively.

(e)Principal amount of $220 million less unamortized deferred financing costs of $2 million at both March 31, 2020 and September 30, 2019, respectively.

(f)Face amount of €445 million at both March 31, 2020 and September 30, 2019. Above amounts represent the dollar equivalent of such note at March 31, 2020 and September 30, 2019. Principal amount of $491 million and $487 million at March 31, 2020 and September 30, 2019, respectively, an additional issuance premium of $7 million, less unamortized deferred financing costs of $6 million at both March 31, 2020 and September 30, 2019.

(g)Principal amount of $325 million less unamortized deferred financing costs of $4 million at both March 31, 2020 and September 30, 2019.

(h)Principal amount of debt of $3.004 billion and $2.998 billion, an additional issuance premium of $7 million and $8 million, less unamortized discount of $3 million and $3 million and unamortized deferred financing costs of $25 million and $29 million at March 31, 2020 and September 30, 2019, respectively.

3.625% Senior Secured Notes Offerings

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 acquisition of EMP, to redeem €34.5 million of the 4.125% Secured Notes (as described below), purchase $30 million of the Company’s 4.875% Senior Secured Notes (as described above) on the open market and to redeem $26.55 million of the 5.625% Senior Secured Notes (as described below).

On April 30, 2019, Acquisition Corp. issued and sold €195 million in aggregate principal amount of additional 3.625% Senior Secured Notes due 2026 (the “Additional Notes”). The Additional Notes and the 3.625% Secured Notes were treated as the same series for all purposes under the indenture that governs the 3.625% Secured Notes and the Additional Notes. Net proceeds of the offering were used to redeem all of the 5.625% Secured Notes due 2022.

Partial Redemption of 4.125% Senior 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 the 3.625% Secured Notes described above. 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. The Company recorded a loss on extinguishment of debt of approximately $2 million, which represents the premium paid on early redemption and unamortized deferred financing costs related to the partial redemption of this note.

Open Market Purchase

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. The Company recorded a loss on extinguishment of debt of less than $1 million, which represents the unamortized deferred financing costs related to the open market purchase.

Redemption of 5.625% Senior 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 $27.38 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. The Company recorded a loss on extinguishment of debt of approximately $1 million, which represents the premium paid on early redemption and unamortized deferred financing costs related to the partial redemption of this note.

On April 16, 2019, the Company issued a conditional notice of redemption for all of its 5.625% Secured Notes due 2022 currently outstanding. Settlement of the called 5.625% Secured Notes occurred on May 16, 2019. The Company recorded a loss on extinguishment of debt of approximately $4 million, which represents the premium paid on early redemption and unamortized deferred financing costs.

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 in the case of Initial Revolving Loans (as defined in the Revolving Credit Agreement), or 1.875% per annum in the case of 2020 Revolving Loans (as defined in the Revolving Credit Agreement), 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 in the case of Initial Revolving Loans, or 0.875% per annum in the case of 2020 Revolving Loans; provided that, in respect of 2020 Revolving Loans, the applicable margin with respect to such loans is subject to adjustment as set forth in the pricing grid in the Revolving Credit Agreement. Based on the Senior Secured Indebtedness to EBITDA Ratio of 3.22x at March 31, 2020, the applicable margin for Eurodollar loans would be 1.625% instead of 1.875% and the applicable margin for ABR loans would be 0.625% instead of 0.875% in the case of 2020 Revolving Loans. 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 10 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

As of March 31, 2020, the maturity date of the Revolving Credit Facility was January 31, 2023. On April 3, 2020, Acquisition Corp. entered into an amendment to the Revolving Credit Facility which, among other things, extended the final maturity date of the Revolving Credit Facility from January 31, 2023 to April 3, 2025. For a more detailed description of the changes effected by the amendment, see Note 14.

Maturities of Senior Notes and Senior Secured Notes

As of March 31, 2020, there are no scheduled maturities of notes until 2023, when $300 million is scheduled to mature. Thereafter, $1.378 billion is scheduled to mature.

Interest Expense, net

Total interest expense, net was $33 million and $36 million for the three months ended March 31, 2020 and March 31, 2019, respectively. Total interest expense was $66 million and $72 million for the six months ended March 31, 2020 and March 31, 2019. The weighted-average interest rate of the Company’s total debt was 4.2% at March 31, 2020, 4.3% at September 30, 2019 and 4.7% at March 31, 2019.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesFrom time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of business. The Company is currently subject to several such claims and legal proceedings. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors.

Income Taxes	6 Months Ended
Income Taxes	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	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 significantly revised the U.S. federal corporate income tax provisions, including, but not limited to, an income inclusion of global intangible low-taxed income (“GILTI”), a deduction against foreign-derived intangible income (“FDII”) and a new minimum tax, the base erosion anti-abuse tax (“BEAT”). GILTI, FDII and BEAT were effective for the Company’s fiscal year ending September 30, 2019. The Company has elected to recognize the GILTI impact in the specific period in which it occurs. As a result of final regulations regarding the interest expense allocation rules issued by the Internal Revenue Service in December 2019, the Company concluded that it is more likely than not that the entire amount of the Company’s deferred tax assets relating to foreign tax credit carryforwards will be realized. Consequently, the Company released its $33 million valuation allowance at September 30, 2019 relating to such deferred tax assets and recognized a corresponding U.S. tax benefit of $33 million during the quarter ended December 31, 2019. The Company will continue to weigh the evidence including the projections of sufficient future taxable income, foreign source income and the reversal of future taxable temporary differences to assess the future realization of our foreign tax credits. For the three and six months ended March 31, 2020, the Company recorded an income tax benefit of $12 million and $7 million, respectively. The income tax benefit of $12 million for the three months ended March 31, 2020 is lower than the expected tax benefit at the statutory tax rate of 21% primarily due to non-deductible expenses of our Senior Management Free Cash Flow Plan. The income tax benefit of $7 million for the six months ended March 31, 2020 is lower than the expected tax at the statutory tax rate of 21% primarily due to tax benefit of the valuation allowance release relating to foreign tax credit carryforwards and FDII, offset by non-deductible expenses of our Senior Management Free Cash Flow Plan, U.S. state and local taxes, foreign income taxed at rates higher than the U.S. statutory tax rate, withholding taxes and foreign losses with no tax benefit. For the three and six months ended March 31, 2019, the Company recorded an income tax expense of $48 million and $98 million, respectively. The income tax expense for the three and six months ended March 31, 2019 is higher than the expected tax at the statutory tax rate of 21% primarily due to GILTI, non-deductible expenses of our Senior Management Free Cash Flow Plan, U.S. state and local taxes, foreign income taxed at rates higher than the U.S. statutory tax rate, withholding taxes and foreign losses with no tax benefit offset by the tax benefit of a reduction in foreign income tax rates. The Company has determined that it is reasonably possible that the gross unrecognized tax benefits as of March 31, 2020 could decrease by up to approximately $1 million related to various ongoing audits and settlement discussions in various foreign jurisdictions during the next twelve months.

Derivative Financial Instruments

6 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 U.S. companies for the sale or licensing of U.S.-based music and merchandise 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, Australian dollar, Brazilian real, Korean won and Norwegian krone. The Company also may at times choose to hedge foreign currency risk associated with financing transactions such as third-party debt and other balance sheet items. The Company’s foreign currency forward exchange contracts have not been designated as hedges under the criteria prescribed in ASC 815. The Company records these contracts at fair value on its balance sheet and the related gains and losses are immediately recognized in the consolidated statement of operations where there is an offsetting entry related to the underlying exposure.

In prior periods, certain foreign currency forward exchange contracts were designated and qualified as cash flow hedges under the criteria prescribed in ASC 815. The Company recorded these contracts at fair value on its balance sheet and gains or losses on these contracts were deferred in equity (as a component of comprehensive loss). These deferred gains and losses were recognized in income in the period in which the related royalties and license fees being hedged were received and recognized in income. However, to the extent that any of these contracts were 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 were immediately recognized in the consolidated statement of operations.

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. 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 13. 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 March 31, 2020 are expected to be recognized within 4 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 13. 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 are 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 March 31, 2020, the Company had outstanding hedge contracts for the sale of $243 million and the purchase of $142 million of foreign currencies at fixed rates that will be settled by September 2020. As of March 31, 2020, the Company had no unrealized deferred gains or losses in comprehensive loss related to foreign exchange hedging. As of September 30, 2019, the Company had no outstanding hedge contracts and no deferred gains or losses in comprehensive loss related to foreign exchange hedging.

As of March 31, 2020, the Company had outstanding $820 million in pay-fixed receive-variable interest rate swaps with $28 million of unrealized deferred losses in comprehensive income related to the interest rate swaps. As of September 30, 2019, the Company had outstanding $820 million in pay-fixed receive-variable interest rate swaps with $8 million of unrealized deferred losses in comprehensive income related to the interest rate swaps.

The Company recorded realized pre-tax losses of $2 million and unrealized pre-tax gains of $3 million related to its foreign currency forward exchange contracts in the consolidated statement of operations as other (expense) income for the six months ended March 31, 2020. The Company recorded realized pre-tax gains of $1 million and unrealized pre-tax gains of $4 million related to its foreign currency forward exchange contracts in the consolidated statement of operations as other income for the six months ended March 31, 2019. The unrealized pre-tax losses of the Company’s foreign exchange forward contracts recorded in other comprehensive income were $2 million for the six months ended March 31, 2019.

The unrealized pre-tax losses of the Company’s derivative interest rate swaps designated as cash flow hedges recorded in other comprehensive income during the six months ended March 31, 2020 were $25 million. The unrealized pre-tax losses of the Company’s derivative interest rate swaps designated as cash flow hedges recorded in other comprehensive income during the six months ended March 31, 2019 were $9 million.

The following is a summary of amounts recorded in the consolidated balance sheets pertaining to the Company’s derivative instruments at March 31, 2020 and September 30, 2019:


	March 31, 2020 (a)		September 30, 2019 (b)
	(in millions)
Other current assets	$	3	$	—
Other current liabilities	—		—
Other noncurrent assets	—		2
Other noncurrent liabilities	(36)		(13)

______________________________________

(a)$8 million and $5 million of foreign exchange derivative contracts in asset and liability positions, respectively, and $36 million of interest rate swaps in liability positions.

(b)$2 million and $13 million of interest rate swaps in asset and liability positions, respectively.

Segment Information

6 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

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.


	Recorded Music		Music Publishing		Corporate expenses and eliminations		Total
Three Months Ended	(in millions)
March 31, 2020
Revenues	$	907	$	166	$	(2)	$	1,071
Operating income (loss)	36		30		(115)		(49)
Amortization of intangible assets	30		17		—		47
Depreciation of property, plant and equipment	10		1		3		14
OIBDA	76		48		(112)		12
March 31, 2019
Revenues	$	933	$	158	$	(1)	$	1,090
Operating income (loss)	134		27		(39)		122
Amortization of intangible assets	37		18		—		55
Depreciation of property, plant and equipment	9		2		3		14
OIBDA	180		47		(36)		191

	Recorded Music		Music Publishing		Corporate expenses and eliminations		Total
Six Months Ended	(in millions)
March 31, 2020
Revenues	$	1,991	$	339	$	(3)	$	2,327
Operating income (loss)	227		44		(155)		116
Amortization of intangible assets	59		35		—		94
Depreciation of property, plant and equipment	31		2		5		38
OIBDA	317		81		(150)		248
March 31, 2019
Revenues	$	1,974	$	323	$	(4)	$	2,293
Operating income (loss)	297		49		(77)		269
Amortization of intangible assets	75		34		—		109
Depreciation of property, plant and equipment	19		3		6		28
OIBDA	391		86		(71)		406

Additional Financial Information	6 Months Ended
Additional Financial Information	Mar. 31, 2020
Additional Financial Information [Abstract]
Additional Financial Information	Additional Financial Information Cash Interest and Taxes The Company made interest payments of approximately $21 million and $28 million during the three months ended March 31, 2020 and March 31, 2019, respectively. The Company made interest payments of approximately $65 million and $70 million during the six months ended March 31, 2020 and March 31, 2019, respectively. The Company paid approximately $20 million and $11 million of income and withholding taxes, net of refunds, for the three months ended March 31, 2020 and March 31, 2019, respectively. The Company paid approximately $40 million and $18 million of income and withholding taxes, net of refunds, during the six months ended March 31, 2020 and March 31, 2019, respectively. Dividends The Company’s ability to pay dividends is restricted by covenants in the indentures governing its notes and in the credit agreements for the Senior Term Loan Facility and the Revolving Credit Facility. In the first quarter of fiscal year 2019, the Company instituted a regular quarterly dividend policy whereby it intends to pay a modest regular quarterly dividend in each of the first three fiscal quarters 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 declaration of each dividend will continue to be at the discretion of the Company’s board of directors. On March 25, 2020, the Company’s board of directors declared a cash dividend of $37.5 million which was paid to stockholders on April 17, 2020 and recorded as an accrual as of March 31, 2020. On September 23, 2019, the Company’s board of directors declared a cash dividend of $206 million which was paid to stockholders on October 4, 2019 and recorded as an accrual as of September 30, 2019. On March 26, 2019, the Company’s board of directors declared a cash dividend of $31.25 million which was accrued as of March 31, 2019 and paid to stockholders on April 5, 2019. Depreciation Expense During the six months ended March 31, 2020, the Company recorded depreciation expense of $38 million, which included a one-time charge of $10 million representing the difference between the net book value of a building and its expected recoverable value.

Fair Value Measurements

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

ASC 820, Fair Value Measurement (“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 tables show the fair value of the Company’s financial instruments that are required to be measured at fair value as of March 31, 2020 and September 30, 2019.


	Fair Value Measurements as of March 31, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in millions)
Other Current Assets:
Foreign Currency Forward Exchange Contracts (a)	$	—	$	3	$	—	$	3



Other Noncurrent Assets:
Equity Method Investment (d)	—		28		—		28

Other Noncurrent Liabilities:

Interest Rate Swap (c)	—		(36)		—		(36)
Total	$	—	$	(5)	$	—	$	(5)


	Fair Value Measurements as of September 30, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (b)	$	—	$	—	$	(9)	$	(9)
Other Noncurrent Assets:
Equity Method Investment (d)	—		40		—		40
Interest Rate Swap	—		2		—		2
Other Noncurrent Liabilities:
Interest Rate Swap	—		(13)		—		(13)
Total	$	—	$	29	$	(9)	$	20

______________________________________

(a)The fair value of foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates.

(b)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.

(c)The fair value of the interest rate swaps is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay as of March 31, 2020 for contracts involving the same attributes and maturity dates.

(d)The fair value of equity method investment represents an equity method investment acquired in fiscal 2019 whereby the Company has elected the fair value option under ASC 825, Financial Instruments (“ASC 825”). The valuation is based upon quoted prices in active markets and model-based valuation techniques to determine fair value.

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, 2019	$	(9)
Additions	—
Reductions	7
Payments	2
Balance at March 31, 2020	$	—

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.

Equity Investments Without Readily Determinable Fair Value

The Company evaluates its equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. The Company did not record any impairment charges on these investments during the three and six months ended March 31, 2020. In addition, there were no observable price changes events that were completed during the three and six months ended March 31, 2020.

Fair Value of Debt

Based on the level of interest rates prevailing at March 31, 2020, the fair value of the Company’s debt was $2.890 billion. Based on the level of interest rates prevailing at September 30, 2019, the fair value of the Company’s debt was $3.080 billion. The fair value of the Company’s debt instruments is 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	6 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn April 3, 2020, Acquisition Corp. entered into an amendment (the “Second Amendment”) to the Revolving Credit Agreement, dated January 31, 2018 (as amended by the amendment dated October 9, 2019), among Acquisition Corp., the several banks and other financial institutions party thereto and Credit Suisse AG, as administrative agent, governing Acquisition Corp.’s senior secured revolving credit facility (the “Revolving Credit Facility”) with Credit Suisse AG, as administrative agent, and the other financial institutions and lenders from time to time party thereto. The Second Amendment (among other changes) (i) increases the commitments under the Revolving Credit Facility from an aggregate principal amount of $180 million to an aggregate principal amount of $300 million, (ii) extends the final maturity date of the Revolving Credit Facility from January 31, 2023 to April 3, 2025, (iii) reduces the interest margin applicable to the loans upon achievement of certain leverage ratios based on a leverage-based pricing grid, (iv) reduces the commitment fee based on a leverage-based pricing grid and limits commitment fees to be paid only on unused amounts of commitments, (v) increases the maximum letter of credit exposure permitted under the Revolving Credit Facility from $50 million to $90 million, (vi) increases the springing financial maintenance covenant from a Senior Secured Indebtedness to EBITDA Ratio of 4.75:1.00 to a Senior Secured Indebtedness to EBITDA Ratio of 5.00:1.00 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 $105 million, (vii) adds covenant suspension upon achievement of an investment grade rating or a Total Indebtedness to EBITDA Ratio of 3.25:1.00, and (viii) adds certain exceptions and increases certain baskets in connection with Acquisition Corp.’s negative covenants, including those related to the incurrence of indebtedness, liens and restricted payments.

Guarantor and Non-Guarantor Subsidiaries Financial Information

6 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Guarantor and Non-Guarantor Subsidiaries Financial Information

The Company is the direct parent of Holdings, which is the direct parent of Acquisition Corp. As of March 31, 2020 Acquisition Corp. had issued and outstanding the 5.000% Senior Secured Notes due 2023, the 4.125% Senior Secured Notes due 2024, the 4.875% Senior Secured Notes due 2024, the 3.625% Senior Secured Notes due 2026 and the 5.500% 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 the Senior Term Loan Facility.

Consolidating Balance Sheet (Unaudited)

March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Assets
Current assets:
Cash and equivalents	$	—	$	271	$	213	$	—	$	484	$	—	$	—	$	—	$	484
Accounts receivable, net	—		322		441		—		763		—		—		—		763
Inventories	—		11		54		—		65		—		—		—		65
Royalty advances expected to be recouped within one year	—		123		66		—		189		—		—		—		189
Prepaid and other current assets	—		17		65		—		82		—		—		—		82
Total current assets	—		744		839		—		1,583		—		—		—		1,583
Due from (to) parent companies	454		(655)		201		—		—		—		—		—		—
Investments in and advances to consolidated subsidiaries	2,293		2,813		—		(5,106)		—		692		692		(1,384)		—
Royalty advances expected to be recouped after one year	—		151		81		—		232		—		—		—		232
Property, plant and equipment, net	—		194		100		—		294		—		—		—		294
Operating lease right-of-use assets, net	—		208		73		—		281		—		—		—		281
Goodwill	—		1,369		392		—		1,761		—		—		—		1,761
Intangible assets subject to amortization, net	—		855		789		—		1,644		—		—		—		1,644
Intangible assets not subject to amortization	—		71		80		—		151		—		—		—		151
Deferred tax assets, net	—		47		8		—		55		—		—		—		55
Other assets	3		92		28		—		123		—		—		—		123
Total assets	$	2,750	$	5,889	$	2,591	$	(5,106)	$	6,124	$	692	$	692	$	(1,384)	$	6,124
Liabilities and Equity
Current liabilities:
Accounts payable	$	1	$	153	$	92	$	—	$	246	$	—	$	—	$	—	$	246
Accrued royalties	—		773		818		—		1,591		—		—		—		1,591
Accrued liabilities	—		367		197		—		564		—		—		—		564
Accrued interest	34		—		—		—		34		—		—		—		34
Operating lease liabilities, current	—		22		17		—		39		—		—		—		39
Deferred revenue	—		56		111		—		167		—		—		—		167
Other current liabilities	—		42		49		—		91		—		—		—		91
Total current liabilities	35		1,413		1,284		—		2,732		—		—		—		2,732
Long-term debt	2,983		—		—		—		2,983		—		—		—		2,983
Operating lease liabilities, noncurrent	—		252		60		—		312		—		—		—		312
Deferred tax liabilities, net	—		—		154		—		154		—		—		—		154
Other noncurrent liabilities	38		95		96		(1)		228		—		—		—		228
Total liabilities	3,056		1,760		1,594		(1)		6,409		—		—		—		6,409
Total Warner Music Group Corp. (deficit) equity	(306)		4,125		980		(5,105)		(306)		692		692		(1,384)		(306)
Noncontrolling interest	—		4		17		—		21		—		—		—		21
Total equity	(306)		4,129		997		(5,105)		(285)		692		692		(1,384)		(285)
Total liabilities and equity	$	2,750	$	5,889	$	2,591	$	(5,106)	$	6,124	$	692	$	692	$	(1,384)	$	6,124

Consolidating Balance Sheet

September 30, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Assets
Current assets:
Cash and equivalents	$	—	$	386	$	233	$	—	$	619	$	—	$	—	$	—	$	619
Accounts receivable, net	—		334		441		—		775		—		—		—		775
Inventories	—		11		63		—		74		—		—		—		74
Royalty advances expected to be recouped within one year	—		112		58		—		170		—		—		—		170
Prepaid and other current assets	—		12		41		—		53		—		—		—		53
Total current assets	—		855		836		—		1,691		—		—		—		1,691
Due from (to) parent companies	458		(531)		73		—		—		—		—		—		—
Investments in and advances to consolidated subsidiaries	2,272		2,567		—		(4,839)		—		878		878		(1,756)		—
Royalty advances expected to be recouped after one year	—		137		71		—		208		—		—		—		208
Property, plant and equipment, net	—		200		100		—		300		—		—		—		300
Goodwill	—		1,370		391		—		1,761		—		—		—		1,761
Intangible assets subject to amortization, net	—		884		839		—		1,723		—		—		—		1,723
Intangible assets not subject to amortization	—		71		80		—		151		—		—		—		151
Deferred tax assets, net	—		30		8		—		38		—		—		—		38
Other assets	7		115		23		—		145		—		—		—		145
Total assets	$	2,737	$	5,698	$	2,421	$	(4,839)	$	6,017	$	878	$	878	$	(1,756)	$	6,017
Liabilities and Equity
Current liabilities:
Accounts payable	$	—	$	160	$	100	$	—	$	260	$	—	$	—	$	—	$	260
Accrued royalties	4		813		750		—		1,567		—		—		—		1,567
Accrued liabilities	—		266		226		—		492		—		—		—		492
Accrued interest	34		—		—		—		34		—		—		—		34
Deferred revenue	—		42		138		—		180		—		—		—		180
Other current liabilities	—		221		65		—		286		—		—		—		286
Total current liabilities	38		1,502		1,279		—		2,819		—		—		—		2,819
Long-term debt	2,974		—		—		—		2,974		—		—		—		2,974
Deferred tax liabilities, net	—		—		172		—		172		—		—		—		172
Other noncurrent liabilities	14		200		107		—		321		—		—		—		321
Total liabilities	3,026		1,702		1,558		—		6,286		—		—		—		6,286
Total Warner Music Group Corp. (deficit) equity	(289)		3,992		847		(4,839)		(289)		878		878		(1,756)		(289)
Noncontrolling interest	—		4		16		—		20		—		—		—		20
Total equity	(289)		3,996		863		(4,839)		(269)		878		878		(1,756)		(269)
Total liabilities and equity	$	2,737	$	5,698	$	2,421	$	(4,839)	$	6,017	$	878	$	878	$	(1,756)	$	6,017

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	484	$	662	$	(75)	$	1,071	$	—	$	—	$	—	$	1,071
Costs and expenses:
Cost of revenue	—		(248)		(369)		82		(535)		—		—		—		(535)
Selling, general and administrative expenses	—		(360)		(171)		(7)		(538)		—		—		—		(538)
Amortization of intangible assets	—		(21)		(26)		—		(47)		—		—		—		(47)
Total costs and expenses	—		(629)		(566)		75		(1,120)		—		—		—		(1,120)
Operating (loss) income	—		(145)		96		—		(49)		—		—		—		(49)

Interest (expense) income, net	(31)		1		(3)		—		(33)		—		—		—		(33)
Equity gains from equity method investments	(46)		62		—		(16)		—		(75)		(75)		150		—
Other (expense) income, net	(9)		3		2		—		(4)		—		—		—		(4)
Income (loss) before income taxes	(86)		(79)		95		(16)		(86)		(75)		(75)		150		(86)
Income tax benefit (expense)	12		20		(19)		(1)		12		—		—		—		12
Net (loss) income	(74)		(59)		76		(17)		(74)		(75)		(75)		150		(74)
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Net (loss) income attributable to Warner Music Group Corp.	$	(74)	$	(59)	$	76	$	(17)	$	(74)	$	(75)	$	(75)	$	150	$	(74)

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	461	$	672	$	(43)	$	1,090	$	—	$	—	$	—	$	1,090
Costs and expenses:
Cost of revenue	—		(214)		(391)		46		(559)		—		—		—		(559)
Selling, general and administrative expenses	—		(186)		(166)		(2)		(354)		—		—		—		(354)
Amortization of intangible assets	—		(25)		(30)		—		(55)		—		—		—		(55)
Total costs and expenses	—		(425)		(587)		44		(968)		—		—		—		(968)
Operating income	—		36		85		1		122		—		—		—		122
Loss on extinguishment of debt	—		—		—		—		—		—		—		—		—
Interest (expense) income, net	(31)		1		(6)		—		(36)		—		—		—		(36)
Equity gains from equity method investments	130		34		—		(164)		—		67		67		(134)		—
Other income (expense), net	16		51		(38)		—		29		—		—		—		29
Income before income taxes	115		122		41		(163)		115		67		67		(134)		115
Income tax expense	(48)		(49)		(26)		75		(48)		—		—		—		(48)
Net income	67		73		15		(88)		67		67		67		(134)		67
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Net income attributable to Warner Music Group Corp.	$	67	$	73	$	15	$	(88)	$	67	$	67	$	67	$	(134)	$	67

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net (loss) income	$	(74)	$	(59)	$	76	$	(17)	$	(74)	$	(75)	$	(75)	$	150	$	(74)
Other comprehensive loss, net of tax:
Foreign currency adjustment	(15)		—		15		(15)		(15)		(15)		(15)		30		(15)
Deferred loss on derivative financial instruments	(23)		—		(23)		23		(23)		(23)		(23)		46		(23)
Other comprehensive loss, net of tax	(38)		—		(8)		8		(38)		(38)		(38)		76		(38)
Total comprehensive (loss) income	(112)		(59)		68		(9)		(112)		(113)		(113)		226		(112)
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	(112)	$	(59)	$	68	$	(9)	$	(112)	$	(113)	$	(113)	$	226	$	(112)

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net income	$	67	$	73	$	15	$	(88)	$	67	$	67	$	67	$	(134)	$	67
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment	(10)		—		10		(10)		(10)		(13)		(13)		26		(10)
Deferred loss on derivative financial instruments	(3)		—		—		—		(3)		(3)		(3)		6		(3)
Other comprehensive (loss) income, net of tax	(13)		—		10		(10)		(13)		(16)		(16)		32		(13)
Total comprehensive income	54		73		25		(98)		54		51		51		(102)		54
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Comprehensive income attributable to Warner Music Group Corp.	$	54	$	73	$	25	$	(98)	$	54	$	51	$	51	$	(102)	$	54

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	46	$	95	$	140	$	(233)	$	48	$	45	$	45	$	(90)	$	48
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—		74		58		—		132		—		—		—		132
Unrealized gains and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts	6		(3)		(10)		—		(7)		—		—		—		(7)
Deferred income taxes	—		—		(31)		—		(31)		—		—		—		(31)

Net loss on investments	—		15		—		—		15		—		—		—		15
Non-cash interest expense	3		—		—		—		3		—		—		—		3
Equity-based compensation expense	—		160		—		—		160		—		—		—		160
Equity gains, including distributions	(108)		(148)		—		256		—		(45)		(45)		90		—
Changes in operating assets and liabilities:
Accounts receivable, net	—		11		(5)		—		6		—		—		—		6
Inventories	—		—		9		—		9		—		—		—		9
Royalty advances	—		(26)		(21)		—		(47)		—		—		—		(47)
Accounts payable and accrued liabilities	—		80		(166)		(23)		(109)		—		—		—		(109)
Royalty payables	—		(42)		80		—		38		—		—		—		38
Accrued interest	—		—		—		—		—		—		—		—		—
Operating lease liabilities	—		(2)		—		—		(2)		—		—		—		(2)
Deferred revenue	—		13		(27)		—		(14)		—		—		—		(14)
Other balance sheet changes	4		(18)		(23)		—		(37)		—		—		—		(37)
Net cash (used in) provided by operating activities	(49)		209		4		—		164		—		—		—		164
Cash flows from investing activities
Acquisition of music publishing rights and music catalogs, net	—		(12)		(6)		—		(18)		—		—		—		(18)
Capital expenditures	—		(18)		(10)		—		(28)		—		—		—		(28)
Investments and acquisitions of businesses, net of cash received	—		(1)		(4)		—		(5)		—		—		—		(5)
Advances from issuer	49		—		—		(49)		—		—		—		—		—
Net cash provided by (used in) investing activities	49		(31)		(20)		(49)		(51)		—		—		—		(51)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.	—		(244)		—		—		(244)		—		—		—		(244)






Distribution to noncontrolling interest holder	—		—		(1)		—		(1)		—		—		—		(1)
Change in due (from) to issuer	—		(49)		—		49		—		—		—		—		—
Net cash used in financing activities	—		(293)		(1)		49		(245)		—		—		—		(245)
Effect of exchange rate changes on cash and equivalents	—		—		(3)		—		(3)		—		—		—		(3)
Net decrease in cash and equivalents	—		(115)		(20)		—		(135)		—		—		—		(135)
Cash and equivalents at beginning of period	—		386		233		—		619		—		—		—		619
Cash and equivalents at end of period	$	—	$	271	$	213	$	—	$	484	$	—	$	—	$	—	$	484

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	153	$	201	$	99	$	(300)	$	153	$	153	$	153	$	(306)	$	153
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—		68		69		—		137		—		—		—		137
Unrealized gains and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts	(20)		(5)		—		1		(24)		—		—		—		(24)
Deferred income taxes	—		—		27		—		27		—		—		—		27
Loss on extinguishment of debt	3		—		—		—		3		—		—		—		3
Net gain on investments	—		(30)		(2)		—		(32)		—		—		—		(32)
Non-cash interest expense	3		—		—		—		3		—		—		—		3
Equity-based compensation expense	—		14		—		—		14		—		—		—		14
Equity gains, including distributions	(302)		(143)		—		445		—		(153)		(153)		306		—
Changes in operating assets and liabilities:
Accounts receivable, net	—		(16)		(74)		—		(90)		—		—		—		(90)
Inventories	—		4		9		—		13		—		—		—		13
Royalty advances	—		(37)		(24)		—		(61)		—		—		—		(61)
Accounts payable and accrued liabilities	—		218		(172)		(146)		(100)		—		—		—		(100)
Royalty payables	6		(93)		133		—		46		—		—		—		46
Accrued interest	1		—		—		—		1		—		—		—		1
Deferred revenue	—		(44)		25		—		(19)		—		—		—		(19)
Other balance sheet changes	4		41		(17)		—		28		—		—		—		28
Net cash (used in) provided by operating activities	(152)		178		73		—		99		—		—		—		99
Cash flows from investing activities
Acquisition of music publishing rights, net	—		(11)		(5)		—		(16)		—		—		—		(16)
Capital expenditures	—		(50)		(9)		—		(59)		—		—		—		(59)
Investments and acquisitions of businesses, net of cash received	—		(26)		(192)		—		(218)		—		—		—		(218)
Proceeds from the sale of investments	—		—		—		—		—		—		—		—		—
Advances from issuer	(24)		—		—		24		—		—		—		—		—
Net cash used in investing activities	(24)		(87)		(206)		24		(293)		—		—		—		(293)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.	—		(31)		—		—		(31)		—		—		—		(31)
Proceeds from issuance of Acquisition Corp. 3.625% Senior Notes due 2026	287		—		—		—		287		—		—		—		287
Repayment of Acquisition Corp. 4.125% Senior Secured Notes	(40)		—		—		—		(40)		—		—		—		(40)
Repayment of Acquisition Corp. 4.875% Senior Secured Notes	(30)		—		—		—		(30)		—		—		—		(30)
Repayment of Acquisition Corp. 5.625% Senior Secured Notes	(27)		—		—		—		(27)		—		—		—		(27)
Call premiums paid on and redemption deposit for early redemption of debt	(2)		—		—		—		(2)		—		—		—		(2)
Deferred financing costs paid	(4)		—		—		—		(4)		—		—		—		(4)
Distribution to noncontrolling interest holder	—		(1)		(1)		—		(2)		—		—		—		(2)
Change in due to (from) issuer	—		24		—		(24)		—		—		—		—		—
Net cash provided by (used in) financing activities	184		(8)		(1)		(24)		151		—		—		—		151
Effect of exchange rate changes on cash and equivalents	—		—		(1)		—		(1)		—		—		—		(1)
Net increase (decrease) in cash and equivalents	8		83		(135)		—		(44)		—		—		—		(44)
Cash and equivalents at beginning of period	—		169		345		—		514		—		—		—		514
Cash and equivalents at end of period	$	8	$	252	$	210	$	—	$	470	$	—	$	—	$	—	$	470

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2020
Accounting Policies [Abstract]
Interim Financial Statements	Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020. The consolidated balance sheet at September 30, 2019 has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (File No. 001-32502).
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. The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. As such, all references to March 31, 2020 and March 31, 2019 relate to the periods ended March 27, 2020 and March 29, 2019, respectively. For convenience purposes, the Company continues to date its second-quarter financial statements as of March 31. The fiscal year ended September 30, 2019 ended on September 27, 2019.
Common Stock and Earnings per Share	The consolidated statements of operations present basic and diluted earnings per share (“EPS”). Basic and diluted earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares less shares issued for the exercise of the deferred equity units. The deferred equity units are mandatorily redeemable and as such are excluded from the denominator of the basic and diluted EPS calculation.
Stock-based Compensation	Share-Based Compensation The Company accounts for share-based payments as required by ASC 718, Compensation—Stock Compensation (“ASC 718”). Under the recognition provision of ASC 718, the Company’s liability classified share-based compensation costs are measured each reporting date until settlement. In February 2020, the Company filed a Form S-1 registration statement with the SEC for a proposed IPO, which required a change in accounting policy during the quarter from the intrinsic value method to fair value method in determining the basis of measurement of its share-based compensation liability. In determining fair value, the Company utilized an option pricing model for those awards with an option-like pay-off, which includes various inputs for volatility, term to exit, discount for lack of marketability, expected dividend yield and risk-free rates. For awards with an equity-like pay-off, inputs for discount of lack of marketability and non-performance risk were considered. The Company continued to use an income approach using a discounted cash flow model to determine its per-share value input within the model. As a result of this change in accounting policy, the Company recorded a decrease to its share-based compensation liability of $38 million, which resulted in a decrease of $33 million, net of tax, to accumulated deficit as of March 31, 2020.
Income Taxes	Income Taxes The Company uses the estimated annual effective tax rate method in computing its interim tax provision. Certain items, including those deemed to be unusual and infrequent are excluded from the estimated annual effective tax rate. In such cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which established a new ASC Topic 842 (“ASC 842”) that introduces 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 are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements (“ASU 2018-11”), which allows for retrospective application with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this option, entities do not need to apply ASC 842 (along with its disclosure requirements) to the comparative prior periods presented. The Company adopted ASU 2016-02 on October 1, 2019, using the modified retrospective transition method provided by ASU 2018-11. The adoption of ASU 2016-02 resulted in the recognition of operating lease liabilities of $366 million and ROU assets of $297 million, which is net of the historical deferred rent liability balance of $69 million, primarily related to real estate leases. The Company also recorded a decrease to opening accumulated deficit of $7 million, net of taxes, related to previously deferred gains related to sale-leaseback transactions. Upon transition, the Company adopted the “package of three” practical expedient provided by ASC 842 and therefore has not (1) reassessed whether any expired or existing contracts are or contain a lease, (2) reassessed the lease classification for expired or existing leases and (3) reassessed initial direct costs for any existing leases. Rather, the Company will retain the conclusions reached for these items under ASC 840. 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 adopted ASU 2017-12 in the first quarter of fiscal 2020 and this adoption did not have a significant impact on the Company’s financial statements. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies U.S. GAAP by making other changes. ASU 2019-12 will be effective for the annual periods beginning after December 15, 2021, and for interim periods beginning after December 15, 2022. Earlier adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32847-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 954
-SubTopic 740
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=116657188&loc=SL116659661-227067

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=116821951&loc=d3e32247-109318

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=116821951&loc=d3e32280-109318

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 05
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65884525&loc=d3e40913-109327

+ Details

Revenue Recognition (Tables)

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The Company’s revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:


	For the Three Months Ended March 31,						For the Six Months Ended March 31,
	2020		2019		2020		2019
	(in millions)						(in millions)
Revenue by Type
Digital	$	626	$	597	$	1,259	$	1,160
Physical	94		130		278		361
Total Digital and Physical	720		727		1,537		1,521
Artist services and expanded-rights	115		134		303		300
Licensing	72		72		151		153
Total Recorded Music	907		933		1,991		1,974
Performance	41		46		87		99
Digital	74		65		147		130
Mechanical	15		13		30		28
Synchronization	34		31		70		60
Other	2		3		5		6
Total Music Publishing	166		158		339		323
Intersegment eliminations	(2)		(1)		(3)		(4)
Total Revenues	$	1,071	$	1,090	$	2,327	$	2,293
Revenue by Geographical Location
U.S. Recorded Music	$	380	$	410	$	833	$	841
U.S. Music Publishing	87		75		168		148
Total U.S.	467		485		1,001		989
International Recorded Music	527		523		1,158		1,133
International Music Publishing	79		83		171		175
Total International	606		606		1,329		1,308
Intersegment eliminations	(2)		(1)		(3)		(4)
Total Revenues	$	1,071	$	1,090	$	2,327	$	2,293

Summary of Revenues Expected to be Recognized in Future Related to Performance Obligations

Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2020 are as follows:


	Rest of FY20		FY21		FY22		Thereafter		Total
	(in millions)
Remaining performance obligations	$	360	$	767	$	59	$	—	$	1,186
Total	$	360	$	767	$	59	$	—	$	1,186

Comprehensive Income (Tables)

6 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following summary sets forth the changes in the components of accumulated other comprehensive loss, net of related tax benefit of approximately $6 million:


	Foreign Currency Translation Loss (a)		Minimum Pension Liability Adjustment		Deferred Gains (Losses) On Derivative Financial Instruments		Accumulated Other Comprehensive Loss, net
	(in millions)
Balance at September 30, 2019	$	(218)	$	(14)	$	(8)	$	(240)
Other comprehensive loss	(8)		—		(20)		(28)
Balance at March 31, 2020	$	(226)	$	(14)	$	(28)	$	(268)

______________________________________

(a)Includes historical foreign currency translation related to certain intra-entity transactions.

Leases (Tables)

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:


	Three Months Ended March 31, 2020		Six Months Ended March 31, 2020
	(in millions)
Lease Cost
Operating lease cost	$	12	$	26
Short-term lease cost	—		—
Variable lease cost	2		5
Sublease income	—		—
Total lease cost	$	14	$	31

Supplemental Cash Flow Information

Supplemental cash flow information related to leases was as follows:


	Six Months Ended March 31, 2020
	(in millions)
Cash paid for amounts included in the measurement of operating lease liabilities	$	28
Right-of-use assets obtained in exchange for operating lease obligations	9

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows:


	March 31, 2020
	(in millions)
Operating Leases
Operating lease right-of-use assets	$	281

Operating lease liabilities, current	$	39
Operating lease liabilities, noncurrent	312
Total operating lease liabilities	$	351

Weighted Average Remaining Lease Term
Operating leases	9 years
Weighted Average Discount Rate
Operating leases	4.57		%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:


Years	Operating Leases
	(in millions)
2020	$	40
2021	53
2022	50
2023	47
2024	47
Thereafter	190
Total lease payments	427
Less imputed interest	(76)
Total	$	351

Goodwill and Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2020

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, 2019	$	1,297	$	464	$	1,761
Acquisitions	—		—		—

Other adjustments	—		—		—
Balance at March 31, 2020	$	1,297	$	464	$	1,761

Schedule of Indefinite Intangible Assets

Intangible assets consist of the following:


	Weighted-Average Useful Life	March 31, 2020		September 30, 2019
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	851	$	855
Music publishing copyrights	26 years	1,551		1,539
Artist and songwriter contracts	13 years	835		841
Trademarks	18 years	53		53
Other intangible assets	7 years	62		59
Total gross intangible asset subject to amortization		3,352		3,347
Accumulated amortization		(1,708)		(1,624)
Total net intangible assets subject to amortization		1,644		1,723
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	151		151
Total net intangible assets		$	1,795	$	1,874

Schedule of Finite-Lived Intangible Assets

Intangible assets consist of the following:


	Weighted-Average Useful Life	March 31, 2020		September 30, 2019
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	851	$	855
Music publishing copyrights	26 years	1,551		1,539
Artist and songwriter contracts	13 years	835		841
Trademarks	18 years	53		53
Other intangible assets	7 years	62		59
Total gross intangible asset subject to amortization		3,352		3,347
Accumulated amortization		(1,708)		(1,624)
Total net intangible assets subject to amortization		1,644		1,723
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	151		151
Total net intangible assets		$	1,795	$	1,874

Debt (Tables)

6 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt, all of which was issued by Acquisition Corp., consists of the following:


	March 31, 2020		September 30, 2019
	(in millions)
Revolving Credit Facility (a)	$	—	$	—
Senior Term Loan Facility due 2023 (b)	1,315		1,313
5.000% Senior Secured Notes due 2023 (c)	298		298
4.125% Senior Secured Notes due 2024 (d)	339		336
4.875% Senior Secured Notes due 2024 (e)	218		218
3.625% Senior Secured Notes due 2026 (f)	492		488
5.500% Senior Notes due 2026 (g)	321		321
Total long-term debt, including the current portion (h)	$	2,983	$	2,974

______________________________________

(c)Principal amount of $300 million less unamortized deferred financing costs of $2 million at both March 31, 2020 and September 30, 2019, respectively.

(e)Principal amount of $220 million less unamortized deferred financing costs of $2 million at both March 31, 2020 and September 30, 2019, respectively.

(g)Principal amount of $325 million less unamortized deferred financing costs of $4 million at both March 31, 2020 and September 30, 2019.

- 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

Derivative Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Amounts Recorded in Consolidated Balance Sheets

The following is a summary of amounts recorded in the consolidated balance sheets pertaining to the Company’s derivative instruments at March 31, 2020 and September 30, 2019:


	March 31, 2020 (a)		September 30, 2019 (b)
	(in millions)
Other current assets	$	3	$	—
Other current liabilities	—		—
Other noncurrent assets	—		2
Other noncurrent liabilities	(36)		(13)

______________________________________

(a)$8 million and $5 million of foreign exchange derivative contracts in asset and liability positions, respectively, and $36 million of interest rate swaps in liability positions.

(b)$2 million and $13 million of interest rate swaps in asset and liability positions, respectively.

Segment Information (Tables)

6 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Information


	Recorded Music		Music Publishing		Corporate expenses and eliminations		Total
Three Months Ended	(in millions)
March 31, 2020
Revenues	$	907	$	166	$	(2)	$	1,071
Operating income (loss)	36		30		(115)		(49)
Amortization of intangible assets	30		17		—		47
Depreciation of property, plant and equipment	10		1		3		14
OIBDA	76		48		(112)		12
March 31, 2019
Revenues	$	933	$	158	$	(1)	$	1,090
Operating income (loss)	134		27		(39)		122
Amortization of intangible assets	37		18		—		55
Depreciation of property, plant and equipment	9		2		3		14
OIBDA	180		47		(36)		191

	Recorded Music		Music Publishing		Corporate expenses and eliminations		Total
Six Months Ended	(in millions)
March 31, 2020
Revenues	$	1,991	$	339	$	(3)	$	2,327
Operating income (loss)	227		44		(155)		116
Amortization of intangible assets	59		35		—		94
Depreciation of property, plant and equipment	31		2		5		38
OIBDA	317		81		(150)		248
March 31, 2019
Revenues	$	1,974	$	323	$	(4)	$	2,293
Operating income (loss)	297		49		(77)		269
Amortization of intangible assets	75		34		—		109
Depreciation of property, plant and equipment	19		3		6		28
OIBDA	391		86		(71)		406

Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments


	Fair Value Measurements as of March 31, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in millions)
Other Current Assets:
Foreign Currency Forward Exchange Contracts (a)	$	—	$	3	$	—	$	3



Other Noncurrent Assets:
Equity Method Investment (d)	—		28		—		28

Other Noncurrent Liabilities:

Interest Rate Swap (c)	—		(36)		—		(36)
Total	$	—	$	(5)	$	—	$	(5)


	Fair Value Measurements as of September 30, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(in millions)
Other Current Liabilities:
Contractual Obligations (b)	$	—	$	—	$	(9)	$	(9)
Other Noncurrent Assets:
Equity Method Investment (d)	—		40		—		40
Interest Rate Swap	—		2		—		2
Other Noncurrent Liabilities:
Interest Rate Swap	—		(13)		—		(13)
Total	$	—	$	29	$	(9)	$	20

______________________________________

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, 2019	$	(9)
Additions	—
Reductions	7
Payments	2
Balance at March 31, 2020	$	—

Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

6 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Consolidating Balance Sheet

Consolidating Balance Sheet (Unaudited)

March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Assets
Current assets:
Cash and equivalents	$	—	$	271	$	213	$	—	$	484	$	—	$	—	$	—	$	484
Accounts receivable, net	—		322		441		—		763		—		—		—		763
Inventories	—		11		54		—		65		—		—		—		65
Royalty advances expected to be recouped within one year	—		123		66		—		189		—		—		—		189
Prepaid and other current assets	—		17		65		—		82		—		—		—		82
Total current assets	—		744		839		—		1,583		—		—		—		1,583
Due from (to) parent companies	454		(655)		201		—		—		—		—		—		—
Investments in and advances to consolidated subsidiaries	2,293		2,813		—		(5,106)		—		692		692		(1,384)		—
Royalty advances expected to be recouped after one year	—		151		81		—		232		—		—		—		232
Property, plant and equipment, net	—		194		100		—		294		—		—		—		294
Operating lease right-of-use assets, net	—		208		73		—		281		—		—		—		281
Goodwill	—		1,369		392		—		1,761		—		—		—		1,761
Intangible assets subject to amortization, net	—		855		789		—		1,644		—		—		—		1,644
Intangible assets not subject to amortization	—		71		80		—		151		—		—		—		151
Deferred tax assets, net	—		47		8		—		55		—		—		—		55
Other assets	3		92		28		—		123		—		—		—		123
Total assets	$	2,750	$	5,889	$	2,591	$	(5,106)	$	6,124	$	692	$	692	$	(1,384)	$	6,124
Liabilities and Equity
Current liabilities:
Accounts payable	$	1	$	153	$	92	$	—	$	246	$	—	$	—	$	—	$	246
Accrued royalties	—		773		818		—		1,591		—		—		—		1,591
Accrued liabilities	—		367		197		—		564		—		—		—		564
Accrued interest	34		—		—		—		34		—		—		—		34
Operating lease liabilities, current	—		22		17		—		39		—		—		—		39
Deferred revenue	—		56		111		—		167		—		—		—		167
Other current liabilities	—		42		49		—		91		—		—		—		91
Total current liabilities	35		1,413		1,284		—		2,732		—		—		—		2,732
Long-term debt	2,983		—		—		—		2,983		—		—		—		2,983
Operating lease liabilities, noncurrent	—		252		60		—		312		—		—		—		312
Deferred tax liabilities, net	—		—		154		—		154		—		—		—		154
Other noncurrent liabilities	38		95		96		(1)		228		—		—		—		228
Total liabilities	3,056		1,760		1,594		(1)		6,409		—		—		—		6,409
Total Warner Music Group Corp. (deficit) equity	(306)		4,125		980		(5,105)		(306)		692		692		(1,384)		(306)
Noncontrolling interest	—		4		17		—		21		—		—		—		21
Total equity	(306)		4,129		997		(5,105)		(285)		692		692		(1,384)		(285)
Total liabilities and equity	$	2,750	$	5,889	$	2,591	$	(5,106)	$	6,124	$	692	$	692	$	(1,384)	$	6,124

Consolidating Balance Sheet

September 30, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Assets
Current assets:
Cash and equivalents	$	—	$	386	$	233	$	—	$	619	$	—	$	—	$	—	$	619
Accounts receivable, net	—		334		441		—		775		—		—		—		775
Inventories	—		11		63		—		74		—		—		—		74
Royalty advances expected to be recouped within one year	—		112		58		—		170		—		—		—		170
Prepaid and other current assets	—		12		41		—		53		—		—		—		53
Total current assets	—		855		836		—		1,691		—		—		—		1,691
Due from (to) parent companies	458		(531)		73		—		—		—		—		—		—
Investments in and advances to consolidated subsidiaries	2,272		2,567		—		(4,839)		—		878		878		(1,756)		—
Royalty advances expected to be recouped after one year	—		137		71		—		208		—		—		—		208
Property, plant and equipment, net	—		200		100		—		300		—		—		—		300
Goodwill	—		1,370		391		—		1,761		—		—		—		1,761
Intangible assets subject to amortization, net	—		884		839		—		1,723		—		—		—		1,723
Intangible assets not subject to amortization	—		71		80		—		151		—		—		—		151
Deferred tax assets, net	—		30		8		—		38		—		—		—		38
Other assets	7		115		23		—		145		—		—		—		145
Total assets	$	2,737	$	5,698	$	2,421	$	(4,839)	$	6,017	$	878	$	878	$	(1,756)	$	6,017
Liabilities and Equity
Current liabilities:
Accounts payable	$	—	$	160	$	100	$	—	$	260	$	—	$	—	$	—	$	260
Accrued royalties	4		813		750		—		1,567		—		—		—		1,567
Accrued liabilities	—		266		226		—		492		—		—		—		492
Accrued interest	34		—		—		—		34		—		—		—		34
Deferred revenue	—		42		138		—		180		—		—		—		180
Other current liabilities	—		221		65		—		286		—		—		—		286
Total current liabilities	38		1,502		1,279		—		2,819		—		—		—		2,819
Long-term debt	2,974		—		—		—		2,974		—		—		—		2,974
Deferred tax liabilities, net	—		—		172		—		172		—		—		—		172
Other noncurrent liabilities	14		200		107		—		321		—		—		—		321
Total liabilities	3,026		1,702		1,558		—		6,286		—		—		—		6,286
Total Warner Music Group Corp. (deficit) equity	(289)		3,992		847		(4,839)		(289)		878		878		(1,756)		(289)
Noncontrolling interest	—		4		16		—		20		—		—		—		20
Total equity	(289)		3,996		863		(4,839)		(269)		878		878		(1,756)		(269)
Total liabilities and equity	$	2,737	$	5,698	$	2,421	$	(4,839)	$	6,017	$	878	$	878	$	(1,756)	$	6,017

Schedule of Consolidating Statement of Operations

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	484	$	662	$	(75)	$	1,071	$	—	$	—	$	—	$	1,071
Costs and expenses:
Cost of revenue	—		(248)		(369)		82		(535)		—		—		—		(535)
Selling, general and administrative expenses	—		(360)		(171)		(7)		(538)		—		—		—		(538)
Amortization of intangible assets	—		(21)		(26)		—		(47)		—		—		—		(47)
Total costs and expenses	—		(629)		(566)		75		(1,120)		—		—		—		(1,120)
Operating (loss) income	—		(145)		96		—		(49)		—		—		—		(49)

Interest (expense) income, net	(31)		1		(3)		—		(33)		—		—		—		(33)
Equity gains from equity method investments	(46)		62		—		(16)		—		(75)		(75)		150		—
Other (expense) income, net	(9)		3		2		—		(4)		—		—		—		(4)
Income (loss) before income taxes	(86)		(79)		95		(16)		(86)		(75)		(75)		150		(86)
Income tax benefit (expense)	12		20		(19)		(1)		12		—		—		—		12
Net (loss) income	(74)		(59)		76		(17)		(74)		(75)		(75)		150		(74)
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Net (loss) income attributable to Warner Music Group Corp.	$	(74)	$	(59)	$	76	$	(17)	$	(74)	$	(75)	$	(75)	$	150	$	(74)

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	461	$	672	$	(43)	$	1,090	$	—	$	—	$	—	$	1,090
Costs and expenses:
Cost of revenue	—		(214)		(391)		46		(559)		—		—		—		(559)
Selling, general and administrative expenses	—		(186)		(166)		(2)		(354)		—		—		—		(354)
Amortization of intangible assets	—		(25)		(30)		—		(55)		—		—		—		(55)
Total costs and expenses	—		(425)		(587)		44		(968)		—		—		—		(968)
Operating income	—		36		85		1		122		—		—		—		122
Loss on extinguishment of debt	—		—		—		—		—		—		—		—		—
Interest (expense) income, net	(31)		1		(6)		—		(36)		—		—		—		(36)
Equity gains from equity method investments	130		34		—		(164)		—		67		67		(134)		—
Other income (expense), net	16		51		(38)		—		29		—		—		—		29
Income before income taxes	115		122		41		(163)		115		67		67		(134)		115
Income tax expense	(48)		(49)		(26)		75		(48)		—		—		—		(48)
Net income	67		73		15		(88)		67		67		67		(134)		67
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Net income attributable to Warner Music Group Corp.	$	67	$	73	$	15	$	(88)	$	67	$	67	$	67	$	(134)	$	67

Consolidating Statement of Operations (Unaudited)

For The Six Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	1,058	$	1,466	$	(197)	$	2,327	$	—	$	—	$	—	$	2,327
Costs and expenses:
Cost of revenue	—		(555)		(816)		171		(1,200)		—		—		—		(1,200)
Selling, general and administrative expenses	—		(537)		(406)		26		(917)		—		—		—		(917)
Amortization of intangible assets	—		(43)		(51)		—		(94)		—		—		—		(94)
Total costs and expenses	—		(1,135)		(1,273)		197		(2,211)		—		—		—		(2,211)
Operating (loss) income	—		(77)		193		—		116		—		—		—		116

Interest (expense) income, net	(62)		1		(5)		—		(66)		—		—		—		(66)
Equity gains from equity method investments	108		148		—		(256)		—		45		45		(90)		—
Other (expense) income, net	(7)		4		(6)		—		(9)		—		—		—		(9)
Income before income taxes	39		76		182		(256)		41		45		45		(90)		41
Income tax benefit (expense)	7		19		(42)		23		7		—		—		—		7
Net income	46		95		140		(233)		48		45		45		(90)		48
Less: Income attributable to noncontrolling interest	—		—		(2)		—		(2)		—		—		—		(2)
Net income attributable to Warner Music Group Corp.	$	46	$	95	$	138	$	(233)	$	46	$	45	$	45	$	(90)	$	46

Consolidating Statement of Operations (Unaudited)

For The Six Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Revenue	$	—	$	942	$	1,526	$	(175)	$	2,293	$	—	$	—	$	—	$	2,293
Costs and expenses:
Cost of revenue	—		(437)		(896)		148		(1,185)		—		—		—		(1,185)
Selling, general and administrative expenses	—		(375)		(383)		28		(730)		—		—		—		(730)
Amortization of intangible assets	—		(50)		(59)		—		(109)		—		—		—		(109)
Total costs and expenses	—		(862)		(1,338)		176		(2,024)		—		—		—		(2,024)
Operating income	—		80		188		1		269		—		—		—		269
Loss on extinguishment of debt	(3)		—		—		—		(3)		—		—		—		(3)
Interest (expense) income, net	(62)		2		(12)		—		(72)		—		—		—		(72)
Equity gains from equity method investments	302		143		—		(445)		—		153		153		(306)		—
Other income (expense), net	14		70		(27)		—		57		—		—		—		57
Income before income taxes	251		295		149		(444)		251		153		153		(306)		251
Income tax expense	(98)		(94)		(50)		144		(98)		—		—		—		(98)
Net income	153		201		99		(300)		153		153		153		(306)		153
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Net income attributable to Warner Music Group Corp.	$	153	$	201	$	99	$	(300)	$	153	$	153	$	153	$	(306)	$	153

Schedule of Consolidating Statement of Comprehensive Income

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net (loss) income	$	(74)	$	(59)	$	76	$	(17)	$	(74)	$	(75)	$	(75)	$	150	$	(74)
Other comprehensive loss, net of tax:
Foreign currency adjustment	(15)		—		15		(15)		(15)		(15)		(15)		30		(15)
Deferred loss on derivative financial instruments	(23)		—		(23)		23		(23)		(23)		(23)		46		(23)
Other comprehensive loss, net of tax	(38)		—		(8)		8		(38)		(38)		(38)		76		(38)
Total comprehensive (loss) income	(112)		(59)		68		(9)		(112)		(113)		(113)		226		(112)
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	(112)	$	(59)	$	68	$	(9)	$	(112)	$	(113)	$	(113)	$	226	$	(112)

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net income	$	67	$	73	$	15	$	(88)	$	67	$	67	$	67	$	(134)	$	67
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment	(10)		—		10		(10)		(10)		(13)		(13)		26		(10)
Deferred loss on derivative financial instruments	(3)		—		—		—		(3)		(3)		(3)		6		(3)
Other comprehensive (loss) income, net of tax	(13)		—		10		(10)		(13)		(16)		(16)		32		(13)
Total comprehensive income	54		73		25		(98)		54		51		51		(102)		54
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Comprehensive income attributable to Warner Music Group Corp.	$	54	$	73	$	25	$	(98)	$	54	$	51	$	51	$	(102)	$	54

Consolidating Statement of Comprehensive Income (Unaudited)

For The Six Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net income	$	46	$	95	$	140	$	(233)	$	48	$	45	$	45	$	(90)	$	48
Other comprehensive loss, net of tax:
Foreign currency adjustment	(8)		—		8		(8)		(8)		28		28		(56)		(8)
Deferred loss on derivative financial instruments	(20)		—		(20)		20		(20)		(8)		(8)		16		(20)
Other comprehensive loss, net of tax	(28)		—		(12)		12		(28)		25		25		(50)		(28)
Total comprehensive income	18		95		128		(221)		20		70		70		(140)		20
Less: Income attributable to noncontrolling interest	—		—		(2)		—		(2)		—		—		—		(2)
Comprehensive income attributable to Warner Music Group Corp.	$	18	$	95	$	126	$	(221)	$	18	$	70	$	70	$	(140)	$	18

Consolidating Statement of Comprehensive Income (Unaudited)

For The Six Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Net income	$	153	$	201	$	99	$	(300)	$	153	$	153	$	153	$	(306)	$	153
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment	(26)		—		26		(26)		(26)		(29)		(29)		58		(26)
Deferred loss on derivative financial instruments	(9)		—		(2)		2		(9)		(9)		(9)		18		(9)
Other comprehensive (loss) income, net of tax	(35)		—		24		(24)		(35)		(38)		(38)		76		(35)
Total comprehensive income	118		201		123		(324)		118		115		115		(230)		118
Less: Income attributable to noncontrolling interest	—		—		—		—		—		—		—		—		—
Comprehensive income attributable to Warner Music Group Corp.	$	118	$	201	$	123	$	(324)	$	118	$	115	$	115	$	(230)	$	118

Schedule of Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2020


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	46	$	95	$	140	$	(233)	$	48	$	45	$	45	$	(90)	$	48
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—		74		58		—		132		—		—		—		132
Unrealized gains and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts	6		(3)		(10)		—		(7)		—		—		—		(7)
Deferred income taxes	—		—		(31)		—		(31)		—		—		—		(31)

Net loss on investments	—		15		—		—		15		—		—		—		15
Non-cash interest expense	3		—		—		—		3		—		—		—		3
Equity-based compensation expense	—		160		—		—		160		—		—		—		160
Equity gains, including distributions	(108)		(148)		—		256		—		(45)		(45)		90		—
Changes in operating assets and liabilities:
Accounts receivable, net	—		11		(5)		—		6		—		—		—		6
Inventories	—		—		9		—		9		—		—		—		9
Royalty advances	—		(26)		(21)		—		(47)		—		—		—		(47)
Accounts payable and accrued liabilities	—		80		(166)		(23)		(109)		—		—		—		(109)
Royalty payables	—		(42)		80		—		38		—		—		—		38
Accrued interest	—		—		—		—		—		—		—		—		—
Operating lease liabilities	—		(2)		—		—		(2)		—		—		—		(2)
Deferred revenue	—		13		(27)		—		(14)		—		—		—		(14)
Other balance sheet changes	4		(18)		(23)		—		(37)		—		—		—		(37)
Net cash (used in) provided by operating activities	(49)		209		4		—		164		—		—		—		164
Cash flows from investing activities
Acquisition of music publishing rights and music catalogs, net	—		(12)		(6)		—		(18)		—		—		—		(18)
Capital expenditures	—		(18)		(10)		—		(28)		—		—		—		(28)
Investments and acquisitions of businesses, net of cash received	—		(1)		(4)		—		(5)		—		—		—		(5)
Advances from issuer	49		—		—		(49)		—		—		—		—		—
Net cash provided by (used in) investing activities	49		(31)		(20)		(49)		(51)		—		—		—		(51)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.	—		(244)		—		—		(244)		—		—		—		(244)






Distribution to noncontrolling interest holder	—		—		(1)		—		(1)		—		—		—		(1)
Change in due (from) to issuer	—		(49)		—		49		—		—		—		—		—
Net cash used in financing activities	—		(293)		(1)		49		(245)		—		—		—		(245)
Effect of exchange rate changes on cash and equivalents	—		—		(3)		—		(3)		—		—		—		(3)
Net decrease in cash and equivalents	—		(115)		(20)		—		(135)		—		—		—		(135)
Cash and equivalents at beginning of period	—		386		233		—		619		—		—		—		619
Cash and equivalents at end of period	$	—	$	271	$	213	$	—	$	484	$	—	$	—	$	—	$	484

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2019


	WMG Acquisition Corp. (issuer)		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		WMG Acquisition Corp. Consolidated		WMG Holdings Corp.		Warner Music Group Corp.		Eliminations		Warner Music Group Corp. Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	153	$	201	$	99	$	(300)	$	153	$	153	$	153	$	(306)	$	153
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—		68		69		—		137		—		—		—		137
Unrealized gains and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts	(20)		(5)		—		1		(24)		—		—		—		(24)
Deferred income taxes	—		—		27		—		27		—		—		—		27
Loss on extinguishment of debt	3		—		—		—		3		—		—		—		3
Net gain on investments	—		(30)		(2)		—		(32)		—		—		—		(32)
Non-cash interest expense	3		—		—		—		3		—		—		—		3
Equity-based compensation expense	—		14		—		—		14		—		—		—		14
Equity gains, including distributions	(302)		(143)		—		445		—		(153)		(153)		306		—
Changes in operating assets and liabilities:
Accounts receivable, net	—		(16)		(74)		—		(90)		—		—		—		(90)
Inventories	—		4		9		—		13		—		—		—		13
Royalty advances	—		(37)		(24)		—		(61)		—		—		—		(61)
Accounts payable and accrued liabilities	—		218		(172)		(146)		(100)		—		—		—		(100)
Royalty payables	6		(93)		133		—		46		—		—		—		46
Accrued interest	1		—		—		—		1		—		—		—		1
Deferred revenue	—		(44)		25		—		(19)		—		—		—		(19)
Other balance sheet changes	4		41		(17)		—		28		—		—		—		28
Net cash (used in) provided by operating activities	(152)		178		73		—		99		—		—		—		99
Cash flows from investing activities
Acquisition of music publishing rights, net	—		(11)		(5)		—		(16)		—		—		—		(16)
Capital expenditures	—		(50)		(9)		—		(59)		—		—		—		(59)
Investments and acquisitions of businesses, net of cash received	—		(26)		(192)		—		(218)		—		—		—		(218)
Proceeds from the sale of investments	—		—		—		—		—		—		—		—		—
Advances from issuer	(24)		—		—		24		—		—		—		—		—
Net cash used in investing activities	(24)		(87)		(206)		24		(293)		—		—		—		(293)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.	—		(31)		—		—		(31)		—		—		—		(31)
Proceeds from issuance of Acquisition Corp. 3.625% Senior Notes due 2026	287		—		—		—		287		—		—		—		287
Repayment of Acquisition Corp. 4.125% Senior Secured Notes	(40)		—		—		—		(40)		—		—		—		(40)
Repayment of Acquisition Corp. 4.875% Senior Secured Notes	(30)		—		—		—		(30)		—		—		—		(30)
Repayment of Acquisition Corp. 5.625% Senior Secured Notes	(27)		—		—		—		(27)		—		—		—		(27)
Call premiums paid on and redemption deposit for early redemption of debt	(2)		—		—		—		(2)		—		—		—		(2)
Deferred financing costs paid	(4)		—		—		—		(4)		—		—		—		(4)
Distribution to noncontrolling interest holder	—		(1)		(1)		—		(2)		—		—		—		(2)
Change in due to (from) issuer	—		24		—		(24)		—		—		—		—		—
Net cash provided by (used in) financing activities	184		(8)		(1)		(24)		151		—		—		—		151
Effect of exchange rate changes on cash and equivalents	—		—		(1)		—		(1)		—		—		—		(1)
Net increase (decrease) in cash and equivalents	8		83		(135)		—		(44)		—		—		—		(44)
Cash and equivalents at beginning of period	—		169		345		—		514		—		—		—		514
Cash and equivalents at end of period	$	8	$	252	$	210	$	—	$	470	$	—	$	—	$	—	$	470

Description of Business - Additional Information (Detail) songwriter in Thousands, musical_composition in Millions	6 Months Ended
	Mar. 31, 2020 country musical_composition songwriter
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries in which Recorded Music activity conducted (more than) \| country	70
Minimum number of musical compositions on which Company owns or controls rights (more than) \| musical_composition	1.4
Number of songwriters and composers (over) \| songwriter	80

Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions		3 Months Ended
	Feb. 28, 2020 $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Oct. 01, 2019 USD ($)	Sep. 30, 2019 USD ($) $ / shares shares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capital stock authorized (in shares) \| shares	2,100,000,000
Preferred stock authorized (in shares) \| shares	100,000,000
Preferred stock par value (in dollars per share) \| $ / shares	$ 1.00
Stock split, conversion ratio	477,242.614671815
Lease liabilities		$ 351
Operating lease right-of-use assets		281
Deferred rent liability				$ 69
Decrease to accumulated deficit		(1,166)		$ (1,177)
ASC 718
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease to share-based compensation liability		38
Decrease in accumulated deficit		$ 33
ASC 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities			$ 366
Operating lease right-of-use assets			297
Decrease to accumulated deficit			$ 7
Class A Common Stock
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock authorized (in shares) \| shares	1,000,000,000	1,000,000,000		1,000,000,000
Common stock par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001		$ 0.001
Common stock outstanding (in shares) \| shares		0		0
Class B Common Stock
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock authorized (in shares) \| shares	1,000,000,000	1,000,000,000		1,000,000,000
Common stock par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001		$ 0.001
Common stock outstanding (in shares) \| shares	510,000,000	510,000,000		505,830,022

Revenue Recognition - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,071	$ 1,090	$ 2,327	$ 2,293
Intersegment eliminations
Disaggregation of Revenue [Line Items]
Total Revenues	(2)	(1)	(3)	(4)
Operating Segments \| U.S.
Disaggregation of Revenue [Line Items]
Total Revenues	467	485	1,001	989
Operating Segments \| International
Disaggregation of Revenue [Line Items]
Total Revenues	606	606	1,329	1,308
Recorded Music
Disaggregation of Revenue [Line Items]
Total Revenues	907	933	1,991	1,974
Recorded Music \| Operating Segments \| U.S.
Disaggregation of Revenue [Line Items]
Total Revenues	380	410	833	841
Recorded Music \| Operating Segments \| International
Disaggregation of Revenue [Line Items]
Total Revenues	527	523	1,158	1,133
Recorded Music \| Digital
Disaggregation of Revenue [Line Items]
Total Revenues	626	597	1,259	1,160
Recorded Music \| Physical
Disaggregation of Revenue [Line Items]
Total Revenues	94	130	278	361
Recorded Music \| Total Digital and Physical
Disaggregation of Revenue [Line Items]
Total Revenues	720	727	1,537	1,521
Recorded Music \| Artist services and expanded-rights
Disaggregation of Revenue [Line Items]
Total Revenues	115	134	303	300
Recorded Music \| Licensing
Disaggregation of Revenue [Line Items]
Total Revenues	72	72	151	153
Music Publishing
Disaggregation of Revenue [Line Items]
Total Revenues	166	158	339	323
Music Publishing \| Operating Segments \| U.S.
Disaggregation of Revenue [Line Items]
Total Revenues	87	75	168	148
Music Publishing \| Operating Segments \| International
Disaggregation of Revenue [Line Items]
Total Revenues	79	83	171	175
Music Publishing \| Digital
Disaggregation of Revenue [Line Items]
Total Revenues	74	65	147	130
Music Publishing \| Performance
Disaggregation of Revenue [Line Items]
Total Revenues	41	46	87	99
Music Publishing \| Mechanical
Disaggregation of Revenue [Line Items]
Total Revenues	15	13	30	28
Music Publishing \| Synchronization
Disaggregation of Revenue [Line Items]
Total Revenues	34	31	70	60
Music Publishing \| Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 2	$ 3	$ 5	$ 6

Revenue Recognition - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($) source	Mar. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)
Disaggregation of Revenue [Line Items]
Refund liabilities	$ 23		$ 23
Uncollectible accounts, reserves	21		$ 17
Deferred revenue increased related to cash received from customers	172
Revenue recognized related to deferred revenue	100
Revenue recognized from performance obligations satisfied in previous periods	$ 30	$ 35
Recorded Music
Disaggregation of Revenue [Line Items]
Number of revenue sources \| source	4
Music Publishing
Disaggregation of Revenue [Line Items]
Number of revenue sources \| source	5

Revenue Recognition - Summary of Revenues Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Millions	Mar. 31, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 1,186
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 360
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 767
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 59
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period

Comprehensive Income - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Equity [Abstract]
Changes in accumulated other comprehensive loss, net of related taxes	$ 6

Comprehensive Income - Schedule of Accumulated Other Comprehensive Loss (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ (269)
Other comprehensive loss	(28)
Ending balance	(285)
Foreign Currency Translation Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(218)
Other comprehensive loss	(8)
Ending balance	(226)
Minimum Pension Liability Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(14)
Other comprehensive loss	0
Ending balance	(14)
Deferred Gains (Losses) On Derivative Financial Instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(8)
Other comprehensive loss	(20)
Ending balance	(28)
Accumulated Other Comprehensive Loss, net
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(240)
Ending balance	$ (268)

Leases - Additional Information (Details) $ in Millions	6 Months Ended
Leases - Additional Information (Details) $ in Millions	Mar. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Lease extension period (up to)	10 years
Termination period	1 year
Lease liabilities	$ 351
Access Industries
Lessee, Lease, Description [Line Items]
Lease liabilities	$ 139
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	11 years

Leases - Component of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 12	$ 26
Short-term lease cost	0	0
Variable lease cost	2	5
Sublease income	0	0
Total lease cost	$ 14	$ 31

Leases - Supplemental Cash Flow Information (Details) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 28
Right-of-use assets obtained in exchange for operating lease obligations	$ 9

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Operating Leases
Operating lease right-of-use assets	$ 281
Operating lease liabilities, current	39
Operating lease liabilities, noncurrent	312	$ 0
Total operating lease liabilities	$ 351
Weighted Average Remaining Lease Term
Operating leases	9 years
Weighted Average Discount Rate
Operating leases	4.57%

Leases - Maturities of Lease Liabilities (Details) $ in Millions	Mar. 31, 2020 USD ($)
Leases [Abstract]
2020	$ 40
2021	53
2022	50
2023	47
2024	47
Thereafter	190
Total lease payments	427
Less imputed interest	(76)
Total	$ 351

Goodwill and Intangible Assets - Changes in Goodwill for Each Reportable Segment (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 1,761
Acquisitions	0
Other adjustments	0
Ending balance	1,761
Recorded Music
Goodwill [Roll Forward]
Beginning balance	1,297
Acquisitions	0
Other adjustments	0
Ending balance	1,297
Music Publishing
Goodwill [Roll Forward]
Beginning balance	464
Acquisitions	0
Other adjustments	0
Ending balance	$ 464

Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2020	Sep. 30, 2019
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Total gross intangible asset subject to amortization	$ 3,352	$ 3,347
Accumulated amortization	(1,708)	(1,624)
Total net intangible assets subject to amortization	1,644	1,723
Intangible assets not subject to amortization	151	151
Total net intangible assets	1,795	1,874
Trademarks and tradenames
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	$ 151	151
Recorded music catalog
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	10 years
Total gross intangible asset subject to amortization	$ 851	855
Music publishing copyrights
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	26 years
Total gross intangible asset subject to amortization	$ 1,551	1,539
Artist and songwriter contracts
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	13 years
Total gross intangible asset subject to amortization	$ 835	841
Trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	18 years
Total gross intangible asset subject to amortization	$ 53	53
Other intangible assets
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	7 years
Total gross intangible asset subject to amortization	$ 62	$ 59

Debt - Long-term Debt (Detail) - USD ($) $ in Millions			6 Months Ended
Debt - Long-term Debt (Detail) - USD ($) $ in Millions	Oct. 12, 2018	Oct. 09, 2018	Mar. 31, 2020	Sep. 30, 2019	Apr. 30, 2019	Mar. 31, 2019
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 2,983	$ 2,974
4.125% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate			4.125%			4.125%
4.875% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate			4.875%			4.875%
3.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Interest rate			3.625%			3.625%
Acquisition Corp. \| Senior Term Loan Facility due 2023
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 1,315	1,313
Due date of senior secured notes			2023
Acquisition Corp. \| 5.000% Senior Secured Notes due 2023
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 298	298
Interest rate			5.00%
Due date of senior secured notes			2023
Acquisition Corp. \| 4.125% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 339	336
Interest rate	4.125%	4.125%	4.125%
Due date of senior secured notes	2024		2024
Acquisition Corp. \| 4.875% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 218	218
Interest rate		4.875%	4.875%
Due date of senior secured notes		2024	2024
Acquisition Corp. \| 3.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 492	488
Interest rate		3.625%	3.625%		3.625%
Due date of senior secured notes			2026
Acquisition Corp. \| 5.500% Senior Notes due 2026
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 321	321
Interest rate			5.50%
Due date of senior secured notes			2026
Acquisition Corp. \| Revolving Credit Facility
Debt Instrument [Line Items]
Total long-term debt, including the current portion			$ 0	$ 0

Debt - Long-term Debt Footnote (Detail)	Apr. 03, 2020 USD ($)	Apr. 02, 2020 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2020 EUR (€)	Sep. 30, 2019 USD ($)	Sep. 30, 2019 EUR (€)	Apr. 30, 2019 EUR (€)	Oct. 09, 2018 USD ($)	Oct. 09, 2018 EUR (€)
Revolving Credit Facility \| Subsequent Event
Debt Instrument [Line Items]
Maximum commitments under the facility	$ 300,000,000	$ 180,000,000
Acquisition Corp.
Debt Instrument [Line Items]
Face or principal amount of debt instrument			$ 3,004,000,000.000		$ 2,998,000,000
Unamortized discount			3,000,000		3,000,000
Unamortized deferred financing costs			25,000,000		29,000,000
Unamortized premium			7,000,000		8,000,000
Acquisition Corp. \| Senior Term Loan Facility due 2023
Debt Instrument [Line Items]
Face or principal amount of debt instrument			1,326,000,000		1,326,000,000
Unamortized discount			3,000,000		3,000,000
Unamortized deferred financing costs			8,000,000		10,000,000
Acquisition Corp. \| 5.000% Senior Secured Notes due 2023
Debt Instrument [Line Items]
Face or principal amount of debt instrument			300,000,000		300,000,000
Unamortized deferred financing costs			2,000,000		2,000,000
Acquisition Corp. \| 4.125% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Face or principal amount of debt instrument			342,000,000	€ 311,000,000	340,000,000	€ 311,000,000
Unamortized deferred financing costs			3,000,000		4,000,000
Acquisition Corp. \| 4.875% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Face or principal amount of debt instrument			220,000,000		220,000,000			$ 30,000,000
Unamortized deferred financing costs			2,000,000		2,000,000
Acquisition Corp. \| 3.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Face or principal amount of debt instrument			491,000,000	€ 445,000,000	487,000,000	€ 445,000,000	€ 195,000,000		€ 250,000,000
Unamortized deferred financing costs			6,000,000		6,000,000
Unamortized premium			7,000,000		7,000,000
Acquisition Corp. \| 5.500% Senior Notes due 2026
Debt Instrument [Line Items]
Face or principal amount of debt instrument			325,000,000		325,000,000
Unamortized deferred financing costs			4,000,000		4,000,000
Acquisition Corp. \| Revolving Credit Facility
Debt Instrument [Line Items]
Commitments under revolving credit facility			180,000,000		180,000,000
Letters of credit outstanding			13,000,000		13,000,000
Revolving credit facility outstanding			$ 0		$ 0

Debt - 3.625% Senior Secured Notes Offering - Additional Information (Detail)	Nov. 05, 2018 USD ($)	Oct. 12, 2018 EUR (€)	Oct. 09, 2018 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2020 EUR (€)	Sep. 30, 2019 USD ($)	Sep. 30, 2019 EUR (€)	Apr. 30, 2019 EUR (€)	Mar. 31, 2019	Oct. 09, 2018 EUR (€)
Acquisition Corp.
Debt Instrument [Line Items]
Aggregate principal amount of debt instrument				$ 3,004,000,000.000		$ 2,998,000,000
3.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Interest rate				3.625%	3.625%				3.625%
3.625% Senior Secured Notes due 2026 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate			3.625%	3.625%	3.625%			3.625%		3.625%
Aggregate principal amount of debt instrument				$ 491,000,000	€ 445,000,000	487,000,000	€ 445,000,000	€ 195,000,000		€ 250,000,000
4.125% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate				4.125%	4.125%				4.125%
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate		4.125%	4.125%	4.125%	4.125%					4.125%
Aggregate principal amount of debt instrument				$ 342,000,000	€ 311,000,000	340,000,000	€ 311,000,000
Redemptions of senior notes \| €		€ 34,500,000
4.875% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate				4.875%	4.875%				4.875%
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate			4.875%	4.875%	4.875%					4.875%
Aggregate principal amount of debt instrument			$ 30,000,000	$ 220,000,000		$ 220,000,000
5.625% Senior Secured Notes
Debt Instrument [Line Items]
Interest rate				5.625%	5.625%				5.625%
5.625% Senior Secured Notes \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate	5.625%		5.625%					5.625%		5.625%
Redemptions of senior notes	$ 26,550,000		$ 26,550,000

Debt - Partial Redemption of 4.125% Senior Secured Notes - Additional Information (Detail) € in Thousands, $ in Millions			3 Months Ended		6 Months Ended
	Oct. 12, 2018 USD ($)	Oct. 12, 2018 EUR (€)	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Apr. 30, 2019	Oct. 09, 2018
Debt Instrument [Line Items]
Loss on extinguishment of debt \| $			$ 0	$ 0	$ 0	$ 3
4.125% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate			4.125%	4.125%	4.125%	4.125%
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate		4.125%	4.125%		4.125%			4.125%
Redemptions of senior notes		€ 34,500
Due date of senior secured notes	2024	2024			2024
Senior notes redemption price		€ 36,170
Redemption price, percentage of principal amount redeemed	103.00%	103.00%
Debt instrument remaining outstanding amount		€ 310,500
Loss on extinguishment of debt \| $	$ 2
3.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Interest rate			3.625%	3.625%	3.625%	3.625%
3.625% Senior Secured Notes due 2026 \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate			3.625%		3.625%		3.625%	3.625%
Due date of senior secured notes					2026

Debt - Open Market Purchase - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Oct. 09, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ 0	$ 0	$ 0	$ 3,000,000
Acquisition Corp.
Debt Instrument [Line Items]
Aggregate principal amount of debt instrument		$ 3,004,000,000.000		$ 3,004,000,000.000		$ 2,998,000,000
4.875% Senior Secured Notes due 2024
Debt Instrument [Line Items]
Interest rate		4.875%	4.875%	4.875%	4.875%
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Debt Instrument [Line Items]
Aggregate principal amount of debt instrument	$ 30,000,000	$ 220,000,000		$ 220,000,000		$ 220,000,000
Interest rate	4.875%	4.875%		4.875%
Due date of senior secured notes	2024			2024
Debt instrument remaining outstanding amount	$ 220,000,000
Loss on extinguishment of debt	$ 1,000,000

Debt - Redemption of 5.625% Senior Secured Notes - Additional Information (Detail) - USD ($) $ in Thousands				3 Months Ended		6 Months Ended
	May 16, 2019	Nov. 05, 2018	Oct. 09, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Apr. 30, 2019
Debt Instrument [Line Items]
Loss on extinguishment of debt				$ 0	$ 0	$ 0	$ 3,000
5.625% Senior Secured Notes
Debt Instrument [Line Items]
Interest rate				5.625%	5.625%	5.625%	5.625%
5.625% Senior Secured Notes \| Acquisition Corp.
Debt Instrument [Line Items]
Interest rate		5.625%	5.625%					5.625%
Redemptions of senior notes		$ 26,550	$ 26,550
Due date of senior secured notes		2022
Senior notes redemption price		$ 27,380
Redemption price, percentage of principal amount redeemed		102.813%
Debt instrument remaining outstanding amount		$ 220,950
Loss on extinguishment of debt	$ 4,000	$ 1,000

Debt - Interest Rates - Additional Information (Detail)			6 Months Ended
Debt - Interest Rates - Additional Information (Detail)	Mar. 31, 2020	Mar. 30, 2020	Mar. 31, 2020
Acquisition Corp. \| London Interbank Offered Rate (LIBOR) \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			2.125%
Acquisition Corp. \| Federal Funds Effective Swap Rate \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			0.50%
Acquisition Corp. \| Base Rate \| Senior Term Loan Facility due 2020
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			1.125%
Term loan Base rate plus Election Rate	1.00%		1.00%
Additional Interest rate on other overdue amounts			2.00%
Revolving Credit Facility \| Eurodollar Applicable Margin Rate \| 2020 Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	1.625%	1.875%
Revolving Credit Facility \| ABR Applicable Margin Rate \| 2020 Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate	0.625%	0.875%
Revolving Credit Facility \| Acquisition Corp.
Debt Instrument [Line Items]
Term loan Base rate plus Election Rate	1.00%		1.00%
Interest rate applicable to overdue principal			2.00%
Revolving Credit Facility \| Acquisition Corp. \| Initial Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			0.75%
Revolving Credit Facility \| Acquisition Corp. \| 2020 Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			0.875%
Senior secured indebtedness to EBITDA ratio	3.22		3.22
Revolving Credit Facility \| Acquisition Corp. \| London Interbank Offered Rate (LIBOR) \| Initial Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			1.75%
Revolving Credit Facility \| Acquisition Corp. \| London Interbank Offered Rate (LIBOR) \| 2020 Revolving Loans
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			1.875%
Revolving Credit Facility \| Acquisition Corp. \| Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Debt instrument, marginal interest rate			0.50%

Debt - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Interest expense, net	$ 33,000,000	$ 36,000,000	$ 66,000,000	$ 72,000,000
Weighted-average interest rate of total debt	4.20%	4.70%	4.20%	4.70%	4.30%
Senior Notes
Debt Instrument [Line Items]
Scheduled maturities of long-term debt in 2020	$ 0		$ 0
Scheduled maturities of long-term debt in 2021	0		0
Scheduled maturities of long-term debt in 2022	0		0
Scheduled maturities of long-term debt in 2023	300,000,000		300,000,000
Scheduled maturities of long-term debt, thereafter	$ 1,378,000,000		$ 1,378,000,000

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Income Tax Contingency [Line Items]
Income tax benefit related to release of valuation allowance		$ 33
Income tax expense (benefit)	$ (12)		$ 48	$ (7)	$ 98
U.S. federal corporate statutory tax rate	21.00%			21.00%
Reasonably possible decrease in gross unrecognized tax benefits from ongoing audits and settlement	$ 1			$ 1
Foreign Tax Authority
Income Tax Contingency [Line Items]
Release of valuation allowance						$ 33

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Derivatives, Fair Value [Line Items]
Companys hedged interest rate transactions				4 years
Outstanding hedge contracts						$ 0
Deferred gains (losses) in comprehensive loss related to foreign exchange hedging	$ 0			$ 0		0
Deferred gain (loss) on derivative financial instruments	(23,000,000)			(20,000,000)
Deferred (losses) gains on derivative financial instruments			$ (3,000,000)		$ (9,000,000)
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Outstanding hedge contracts	820,000,000			820,000,000		$ 820,000,000
Deferred gain (loss) on derivative financial instruments				(28,000,000)
Deferred (losses) gains on derivative financial instruments		$ (8,000,000)
Unrealized pre-tax (losses) gains on derivative financial instruments					9,000,000
Unrealized pre-tax (losses) gains on derivative financial instruments				(25,000,000)
Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Unrealized pre-tax (losses) gains on derivative financial instruments					(2,000,000)
Foreign Exchange Contract \| Other Income (Expense)
Derivatives, Fair Value [Line Items]
Realized foreign exchange forward contract gain (loss)				(2,000,000)	1,000,000
Unrealized foreign exchange forward contract gain (loss)				3,000,000	$ 4,000,000
Sale
Derivatives, Fair Value [Line Items]
Outstanding hedge contracts	243,000,000			243,000,000
Purchase
Derivatives, Fair Value [Line Items]
Outstanding hedge contracts	$ 142,000,000			$ 142,000,000

Derivative Financial Instruments - Summary of Amounts Recorded in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Other current assets
Derivatives, Fair Value [Line Items]
Other assets	$ 3	$ 0
Other current liabilities
Derivatives, Fair Value [Line Items]
Other liabilities	0	0
Other noncurrent assets
Derivatives, Fair Value [Line Items]
Other assets	0	2
Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Other liabilities	$ (36)	$ (13)

Derivative Financial Instruments - Summary of Amounts Recorded in Consolidated Balance Sheets Footnote (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Derivatives, Fair Value [Line Items]
Foreign exchange derivative contracts in asset	$ 8
Foreign exchange derivative contracts in liability	5
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Foreign exchange derivative contracts in asset		$ 2
Foreign exchange derivative contracts in liability	$ 36	$ 13

Segment Information - Additional Information (Detail)	6 Months Ended
Segment Information - Additional Information (Detail)	Mar. 31, 2020 segment
Segment Reporting [Abstract]
Number of fundamental operations	2

Segment Information - Schedule of Segment Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 1,071	$ 1,090	$ 2,327	$ 2,293
Operating income (loss)	(49)	122	116	269
Amortization of intangible assets	47	55	94	109
Depreciation of property, plant and equipment	14	14	38	28
OIBDA	12	191	248	406
Operating Segments \| Recorded Music
Segment Reporting Information [Line Items]
Revenues	907	933	1,991	1,974
Operating income (loss)	36	134	227	297
Amortization of intangible assets	30	37	59	75
Depreciation of property, plant and equipment	10	9	31	19
OIBDA	76	180	317	391
Operating Segments \| Music Publishing
Segment Reporting Information [Line Items]
Revenues	166	158	339	323
Operating income (loss)	30	27	44	49
Amortization of intangible assets	17	18	35	34
Depreciation of property, plant and equipment	1	2	2	3
OIBDA	48	47	81	86
Corporate expenses and eliminations
Segment Reporting Information [Line Items]
Revenues	(2)	(1)	(3)	(4)
Operating income (loss)	(115)	(39)	(155)	(77)
Amortization of intangible assets	0	0	0	0
Depreciation of property, plant and equipment	3	3	5	6
OIBDA	$ (112)	$ (36)	$ (150)	$ (71)

Additional Financial Information - Additional Information (Detail) - USD ($) $ in Thousands				3 Months Ended		6 Months Ended
	Mar. 25, 2020	Sep. 23, 2019	Mar. 26, 2019	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Additional Financial Information [Abstract]
Interest payments				$ 21,000	$ 28,000	$ 65,000	$ 70,000
Income and withholding taxes paid				20,000	11,000	40,000	18,000
Cash dividend	$ 37,500	$ 206,000	$ 31,250
Depreciation expense				$ 14,000	$ 14,000	38,000	$ 28,000
One-time charge						$ 10,000

Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ (5)	$ 20
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	(5)	29
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	(9)
Other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Forward Exchange Contracts	3	0
Other current assets \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Forward Exchange Contracts	0
Other current assets \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Forward Exchange Contracts	3
Other current assets \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Forward Exchange Contracts	0
Other current liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual Obligations		(9)
Other current liabilities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual Obligations		0
Other current liabilities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual Obligations		0
Other current liabilities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual Obligations		(9)
Other noncurrent assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Forward Exchange Contracts	0	2
Equity Method Investment	28	40
Other noncurrent assets \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investment	0	0
Other noncurrent assets \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investment	28	40
Other noncurrent assets \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investment	0	0
Interest Rate Swap \| Other noncurrent assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset		2
Interest Rate Swap \| Other noncurrent assets \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset		0
Interest Rate Swap \| Other noncurrent assets \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset		2
Interest Rate Swap \| Other noncurrent assets \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset		0
Interest Rate Swap \| Other noncurrent liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	(36)	(13)
Interest Rate Swap \| Other noncurrent liabilities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	0	0
Interest Rate Swap \| Other noncurrent liabilities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	(36)	(13)
Interest Rate Swap \| Other noncurrent liabilities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 0	$ 0

Fair Value Measurements - Reconciliation of Net Liabilities Classified as Level 3 (Detail) - Level 3 $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (9)
Additions	0
Reductions	7
Payments	2
Ending balance	$ 0

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Level 2 measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 2,890	$ 3,080

Subsequent Events (Details) - Subsequent Event	Apr. 03, 2020 USD ($)	Apr. 02, 2020 USD ($)
Revolving Credit Facility
Subsequent Event [Line Items]
Maximum commitments under the facility	$ 300,000,000	$ 180,000,000
Revolving Credit Facility \| Line of Credit
Subsequent Event [Line Items]
Maximum commitments under the facility	$ 300,000,000	$ 180,000,000
Senior Secured Indebtedness to EBITDA Ratio	5.00	4.75
Minimum amount outstanding to test covenant	$ 105,000,000
Total Indebtedness to EBITDA Ratio	3.25
Letter of Credit \| Line of Credit
Subsequent Event [Line Items]
Maximum commitments under the facility	$ 90,000,000	$ 50,000,000

Guarantor and Non-Guarantor Subsidiaries Financial Information - Additional Information (Detail)	Mar. 31, 2020	Apr. 30, 2019	Mar. 31, 2019	Oct. 12, 2018	Oct. 09, 2018
5.000% Senior Secured Notes due 2023 \| Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Interest rate	5.00%
4.125% Senior Secured Notes due 2024
Condensed Financial Statements, Captions [Line Items]
Interest rate	4.125%		4.125%
4.125% Senior Secured Notes due 2024 \| Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Interest rate	4.125%			4.125%	4.125%
4.875% Senior Secured Notes due 2024
Condensed Financial Statements, Captions [Line Items]
Interest rate	4.875%		4.875%
4.875% Senior Secured Notes due 2024 \| Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Interest rate	4.875%				4.875%
3.625% Senior Secured Notes due 2026
Condensed Financial Statements, Captions [Line Items]
Interest rate	3.625%		3.625%
3.625% Senior Secured Notes due 2026 \| Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Interest rate	3.625%	3.625%			3.625%
5.500% Senior Notes due 2026 \| Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Interest rate	5.50%

Guarantor and Non-Guarantor Subsidiaries Financial Information - Consolidating Balance Sheet Unaudited (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Current assets:
Cash and equivalents	$ 484		$ 619
Accounts receivable, net	763		775
Inventories	65		74
Royalty advances expected to be recouped within one year	189		170
Prepaid and other current assets	82		53
Total current assets	1,583		1,691
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	0		0
Royalty advances expected to be recouped after one year	232		208
Property, plant and equipment, net	294		300
Operating lease right-of-use assets, net	281
Goodwill	1,761		1,761
Intangible assets subject to amortization, net	1,644		1,723
Intangible assets not subject to amortization	151		151
Deferred tax assets, net	55		38
Other assets	123		145
Total assets	6,124		6,017
Current liabilities:
Accounts payable	246		260
Accrued royalties	1,591		1,567
Accrued liabilities	564		492
Accrued interest	34		34
Operating lease liabilities, current	39
Deferred revenue	167		180
Other current liabilities	91		286
Total current liabilities	2,732		2,819
Long-term debt	2,983		2,974
Operating lease liabilities, noncurrent	312		0
Deferred tax liabilities, net	154		172
Other noncurrent liabilities	228		321
Total liabilities	6,409		6,286
Total Warner Music Group Corp. deficit	(306)		(289)
Noncontrolling interest	21		20
Total deficit	(285)	$ (169)	(269)	$ (120)	$ (139)	$ (320)
Total liabilities and deficit	6,124		6,017
Reportable Legal Entities \| Guarantor Subsidiaries
Current assets:
Cash and equivalents	271		386
Accounts receivable, net	322		334
Inventories	11		11
Royalty advances expected to be recouped within one year	123		112
Prepaid and other current assets	17		12
Total current assets	744		855
Due from (to) parent companies	(655)		(531)
Investments in and advances to consolidated subsidiaries	2,813		2,567
Royalty advances expected to be recouped after one year	151		137
Property, plant and equipment, net	194		200
Operating lease right-of-use assets, net	208
Goodwill	1,369		1,370
Intangible assets subject to amortization, net	855		884
Intangible assets not subject to amortization	71		71
Deferred tax assets, net	47		30
Other assets	92		115
Total assets	5,889		5,698
Current liabilities:
Accounts payable	153		160
Accrued royalties	773		813
Accrued liabilities	367		266
Accrued interest	0		0
Operating lease liabilities, current	22
Deferred revenue	56		42
Other current liabilities	42		221
Total current liabilities	1,413		1,502
Long-term debt	0		0
Operating lease liabilities, noncurrent	252
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	95		200
Total liabilities	1,760		1,702
Total Warner Music Group Corp. deficit	4,125		3,992
Noncontrolling interest	4		4
Total deficit	4,129		3,996
Total liabilities and deficit	5,889		5,698
Reportable Legal Entities \| Non-Guarantor Subsidiaries
Current assets:
Cash and equivalents	213		233
Accounts receivable, net	441		441
Inventories	54		63
Royalty advances expected to be recouped within one year	66		58
Prepaid and other current assets	65		41
Total current assets	839		836
Due from (to) parent companies	201		73
Investments in and advances to consolidated subsidiaries	0		0
Royalty advances expected to be recouped after one year	81		71
Property, plant and equipment, net	100		100
Operating lease right-of-use assets, net	73
Goodwill	392		391
Intangible assets subject to amortization, net	789		839
Intangible assets not subject to amortization	80		80
Deferred tax assets, net	8		8
Other assets	28		23
Total assets	2,591		2,421
Current liabilities:
Accounts payable	92		100
Accrued royalties	818		750
Accrued liabilities	197		226
Accrued interest	0		0
Operating lease liabilities, current	17
Deferred revenue	111		138
Other current liabilities	49		65
Total current liabilities	1,284		1,279
Long-term debt	0		0
Operating lease liabilities, noncurrent	60
Deferred tax liabilities, net	154		172
Other noncurrent liabilities	96		107
Total liabilities	1,594		1,558
Total Warner Music Group Corp. deficit	980		847
Noncontrolling interest	17		16
Total deficit	997		863
Total liabilities and deficit	2,591		2,421
Reportable Legal Entities \| Warner Music Group Corp.
Current assets:
Cash and equivalents	0		0
Accounts receivable, net	0		0
Inventories	0		0
Royalty advances expected to be recouped within one year	0		0
Prepaid and other current assets	0		0
Total current assets	0		0
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	692		878
Royalty advances expected to be recouped after one year	0		0
Property, plant and equipment, net	0		0
Operating lease right-of-use assets, net	0
Goodwill	0		0
Intangible assets subject to amortization, net	0		0
Intangible assets not subject to amortization	0		0
Deferred tax assets, net	0		0
Other assets	0		0
Total assets	692		878
Current liabilities:
Accounts payable	0		0
Accrued royalties	0		0
Accrued liabilities	0		0
Accrued interest	0		0
Operating lease liabilities, current	0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	0		0
Long-term debt	0		0
Operating lease liabilities, noncurrent	0
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	0		0
Total liabilities	0		0
Total Warner Music Group Corp. deficit	692		878
Noncontrolling interest	0		0
Total deficit	692		878
Total liabilities and deficit	692		878
Reportable Legal Entities \| WMG Acquisition Corp.
Current assets:
Cash and equivalents	0		0
Accounts receivable, net	0		0
Inventories	0		0
Royalty advances expected to be recouped within one year	0		0
Prepaid and other current assets	0		0
Total current assets	0		0
Due from (to) parent companies	454		458
Investments in and advances to consolidated subsidiaries	2,293		2,272
Royalty advances expected to be recouped after one year	0		0
Property, plant and equipment, net	0		0
Operating lease right-of-use assets, net	0
Goodwill	0		0
Intangible assets subject to amortization, net	0		0
Intangible assets not subject to amortization	0		0
Deferred tax assets, net	0		0
Other assets	3		7
Total assets	2,750		2,737
Current liabilities:
Accounts payable	1		0
Accrued royalties	0		4
Accrued liabilities	0		0
Accrued interest	34		34
Operating lease liabilities, current	0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	35		38
Long-term debt	2,983		2,974
Operating lease liabilities, noncurrent	0
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	38		14
Total liabilities	3,056		3,026
Total Warner Music Group Corp. deficit	(306)		(289)
Noncontrolling interest	0		0
Total deficit	(306)		(289)
Total liabilities and deficit	2,750		2,737
Reportable Legal Entities \| WMG Acquisition Corp. Consolidated
Current assets:
Cash and equivalents	484		619
Accounts receivable, net	763		775
Inventories	65		74
Royalty advances expected to be recouped within one year	189		170
Prepaid and other current assets	82		53
Total current assets	1,583		1,691
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	0		0
Royalty advances expected to be recouped after one year	232		208
Property, plant and equipment, net	294		300
Operating lease right-of-use assets, net	281
Goodwill	1,761		1,761
Intangible assets subject to amortization, net	1,644		1,723
Intangible assets not subject to amortization	151		151
Deferred tax assets, net	55		38
Other assets	123		145
Total assets	6,124		6,017
Current liabilities:
Accounts payable	246		260
Accrued royalties	1,591		1,567
Accrued liabilities	564		492
Accrued interest	34		34
Operating lease liabilities, current	39
Deferred revenue	167		180
Other current liabilities	91		286
Total current liabilities	2,732		2,819
Long-term debt	2,983		2,974
Operating lease liabilities, noncurrent	312
Deferred tax liabilities, net	154		172
Other noncurrent liabilities	228		321
Total liabilities	6,409		6,286
Total Warner Music Group Corp. deficit	(306)		(289)
Noncontrolling interest	21		20
Total deficit	(285)		(269)
Total liabilities and deficit	6,124		6,017
Reportable Legal Entities \| WMG Holdings Corp.
Current assets:
Cash and equivalents	0		0
Accounts receivable, net	0		0
Inventories	0		0
Royalty advances expected to be recouped within one year	0		0
Prepaid and other current assets	0		0
Total current assets	0		0
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	692		878
Royalty advances expected to be recouped after one year	0		0
Property, plant and equipment, net	0		0
Operating lease right-of-use assets, net	0
Goodwill	0		0
Intangible assets subject to amortization, net	0		0
Intangible assets not subject to amortization	0		0
Deferred tax assets, net	0		0
Other assets	0		0
Total assets	692		878
Current liabilities:
Accounts payable	0		0
Accrued royalties	0		0
Accrued liabilities	0		0
Accrued interest	0		0
Operating lease liabilities, current	0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	0		0
Long-term debt	0		0
Operating lease liabilities, noncurrent	0
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	0		0
Total liabilities	0		0
Total Warner Music Group Corp. deficit	692		878
Noncontrolling interest	0		0
Total deficit	692		878
Total liabilities and deficit	692		878
Eliminations
Current assets:
Cash and equivalents	0		0
Accounts receivable, net	0		0
Inventories	0		0
Royalty advances expected to be recouped within one year	0		0
Prepaid and other current assets	0		0
Total current assets	0		0
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	(1,384)		(1,756)
Royalty advances expected to be recouped after one year	0		0
Property, plant and equipment, net	0		0
Operating lease right-of-use assets, net	0
Goodwill	0		0
Intangible assets subject to amortization, net	0		0
Intangible assets not subject to amortization	0		0
Deferred tax assets, net	0		0
Other assets	0		0
Total assets	(1,384)		(1,756)
Current liabilities:
Accounts payable	0		0
Accrued royalties	0		0
Accrued liabilities	0		0
Accrued interest	0		0
Operating lease liabilities, current	0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	0		0
Long-term debt	0		0
Operating lease liabilities, noncurrent	0
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	0		0
Total liabilities	0		0
Total Warner Music Group Corp. deficit	(1,384)		(1,756)
Noncontrolling interest	0		0
Total deficit	(1,384)		(1,756)
Total liabilities and deficit	(1,384)		(1,756)
Eliminations \| WMG Acquisition Corp.
Current assets:
Cash and equivalents	0		0
Accounts receivable, net	0		0
Inventories	0		0
Royalty advances expected to be recouped within one year	0		0
Prepaid and other current assets	0		0
Total current assets	0		0
Due from (to) parent companies	0		0
Investments in and advances to consolidated subsidiaries	(5,106)		(4,839)
Royalty advances expected to be recouped after one year	0		0
Property, plant and equipment, net	0		0
Operating lease right-of-use assets, net	0
Goodwill	0		0
Intangible assets subject to amortization, net	0		0
Intangible assets not subject to amortization	0		0
Deferred tax assets, net	0		0
Other assets	0		0
Total assets	(5,106)		(4,839)
Current liabilities:
Accounts payable	0		0
Accrued royalties	0		0
Accrued liabilities	0		0
Accrued interest	0		0
Operating lease liabilities, current	0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	0		0
Long-term debt	0		0
Operating lease liabilities, noncurrent	0
Deferred tax liabilities, net	0		0
Other noncurrent liabilities	(1)		0
Total liabilities	(1)		0
Total Warner Music Group Corp. deficit	(5,105)		(4,839)
Noncontrolling interest	0		0
Total deficit	(5,105)		(4,839)
Total liabilities and deficit	$ (5,106)		$ (4,839)

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

3 Months Ended

6 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Mar. 31, 2020

Mar. 31, 2019

Condensed Income Statements, Captions [Line Items]

$ 1,071

$ 1,090

$ 2,327

$ 2,293

(535)

(559)

(1,200)

(1,185)

^[1]

(538)

(354)

(917)

(730)

(47)

(55)

(94)

(109)

(1,120)

(968)

(2,211)

(2,024)

(49)

122

116

269

(3)

(33)

(36)

(66)

(72)

(4)

(9)

(86)

115

251

(48)

(98)

Less: Income attributable to noncontrolling interest

(74)

153

(2)

Net (loss) income attributable to Warner Music Group Corp.

(74)

153

Reportable Legal Entities | Guarantor Subsidiaries

Condensed Income Statements, Captions [Line Items]

484

461

1,058

942

(248)

(214)

(555)

(437)

(360)

(186)

(537)

(375)

(21)

(25)

(43)

(50)

(629)

(425)

(1,135)

(862)

(145)

(77)

148

143

(79)

122

295

(49)

(94)

Less: Income attributable to noncontrolling interest

(59)

201

Net (loss) income attributable to Warner Music Group Corp.

(59)

201

Reportable Legal Entities | Non-Guarantor Subsidiaries

Condensed Income Statements, Captions [Line Items]

662

672

1,466

1,526

(369)

(391)

(816)

(896)

(171)

(166)

(406)

(383)

(26)

(30)

(51)

(59)

(566)

(587)

(1,273)

(1,338)

193

188

(3)

(6)

(5)

(12)

(38)

(6)

(27)

182

149

(19)

(26)

(42)

(50)

Less: Income attributable to noncontrolling interest

140

(2)

Net (loss) income attributable to Warner Music Group Corp.

138

Reportable Legal Entities | Warner Music Group Corp.

Condensed Income Statements, Captions [Line Items]

(75)

153

(75)

153

Less: Income attributable to noncontrolling interest

(75)

153

Net (loss) income attributable to Warner Music Group Corp.

(75)

153

Reportable Legal Entities | WMG Acquisition Corp.

Condensed Income Statements, Captions [Line Items]

(3)

(31)

(62)

(46)

130

108

302

(9)

(7)

(86)

115

251

(48)

(98)

Less: Income attributable to noncontrolling interest

(74)

153

Net (loss) income attributable to Warner Music Group Corp.

(74)

153

Reportable Legal Entities | WMG Acquisition Corp. Consolidated

Condensed Income Statements, Captions [Line Items]

1,071

1,090

2,327

2,293

(535)

(559)

(1,200)

(1,185)

(538)

(354)

(917)

(730)

(47)

(55)

(94)

(109)

(1,120)

(968)

(2,211)

(2,024)

(49)

122

116

269

(3)

(33)

(36)

(66)

(72)

(4)

(9)

(86)

115

251

(48)

(98)

Less: Income attributable to noncontrolling interest

(74)

153

(2)

Net (loss) income attributable to Warner Music Group Corp.

(74)

153

Reportable Legal Entities | WMG Holdings Corp.

Condensed Income Statements, Captions [Line Items]

(75)

153

(75)

153

Less: Income attributable to noncontrolling interest

(75)

153

Net (loss) income attributable to Warner Music Group Corp.

(75)

153

Eliminations

Condensed Income Statements, Captions [Line Items]

150

(134)

(90)

(306)

150

(134)

(90)

(306)

Less: Income attributable to noncontrolling interest

150

(134)

(90)

(306)

Net (loss) income attributable to Warner Music Group Corp.

150

(134)

(90)

(306)

Eliminations | WMG Acquisition Corp.

Condensed Income Statements, Captions [Line Items]

(75)

(43)

(197)

(175)

171

148

(7)

(2)

197

176

(16)

(164)

(256)

(445)

(16)

(163)

(256)

(444)

(1)

144