Segment Information

3 Months Ended

Dec. 31, 2019

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)
December 31, 2019
Revenues	$	1,084	$	173	$	(1)	$	1,256
Operating income (loss)	191		14		(40)		165
Amortization of intangible assets	29		18		—		47
Depreciation of property, plant and equipment	21		1		2		24
OIBDA	241		33		(38)		236
December 31, 2018
Revenues	$	1,041	$	165	$	(3)	$	1,203
Operating income (loss)	163		22		(38)		147
Amortization of intangible assets	38		16		—		54
Depreciation of property, plant and equipment	10		1		3		14
OIBDA	211		39		(35)		215