Segment Information

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

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, 2021
Revenues	$	1,059	$	192	$	(1)	$	1,250
Operating income (loss)	184		22		(55)		151
Amortization of intangible assets	38		20		—		58
Depreciation of property, plant and equipment	13		1		5		19
OIBDA	235		43		(50)		228
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
	Recorded Music		Music Publishing		Corporate expenses and eliminations		Total
Six Months Ended	(in millions)
March 31, 2021
Revenues	$	2,220	$	367	$	(2)	$	2,585
Operating income (loss)	407		40		(100)		347
Amortization of intangible assets	71		39		—		110
Depreciation of property, plant and equipment	26		3		9		38
OIBDA	504		82		(91)		495
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