Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

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

	Recorded Music		Music Publishing		Total
	(in millions)
Balances at September 30, 2021	$	1,366	$	464	$	1,830
Acquisitions	160		—		160
Other adjustments	(70)		—		(70)
Balances at September 30, 2022	$	1,456	$	464	$	1,920
Acquisitions	51		—		51
Other adjustments	22		—		22
Balances at September 30, 2023	$	1,529	$	464	$	1,993

The increase in goodwill during the fiscal year ended September 30, 2023 primarily relates to the acquisition of TenThousand Projects as described in Note 5. The increase in goodwill during the fiscal year ended September 30, 2022 primarily relates to the acquisition of 300 Entertainment as described in Note 5. The other adjustments during both the fiscal years ended September 30, 2023 and September 30, 2022 primarily represent foreign currency movements.

The Company performs its annual goodwill impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s goodwill may not be recoverable. The performance of the annual fiscal 2023 impairment analysis did not result in an impairment of the Company’s goodwill.

Intangible Assets

Intangible assets consist of the following:

	Weighted-Average Useful Life	September 30, 2023		September 30, 2022
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	12 years	$	1,507	$	1,316
Music publishing copyrights	25 years	2,026		1,889
Artist and songwriter contracts	13 years	1,091		1,014
Trademarks	14 years	111		103
Other intangible assets	6 years	104		89
Total gross intangible assets subject to amortization		4,839		4,411
Accumulated amortization		(2,486)		(2,172)
Total net intangible assets subject to amortization		2,353		2,239
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	149		145
Total net intangible assets		$	2,502	$	2,384

The increase in intangible assets during the fiscal year ended September 30, 2023 primarily relates to the acquisition of TenThousand Projects, which resulted in an increase in intangible assets as described in Note 5, as well as foreign currency movements.

The Company performs its annual indefinite-lived intangible assets impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s indefinite-lived intangible assets may not be recoverable. The performance of the annual fiscal 2023 impairment analysis did not result in an impairment of the Company’s indefinite-lived intangible assets.

Amortization

Based on the amount of intangible assets subject to amortization at September 30, 2023, the expected amortization for each of the next five fiscal years and thereafter are as follows:

Fiscal Year Ended September 30,	Amortization Expense
	(in millions)
2024	$	232
2025	223
2026	206
2027	179
2028	158
Thereafter	1,355
Total	$	2,353