Segment Information

9 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

9. Segment Information

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

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

							Corporate
	Recorded			Music			expenses and
	Music			Publishing			eliminations			Total
Three Months Ended	(in millions)
June 30, 2015
Revenues	$	592		$	123		$	(5	)	$	710
OIBDA		100			20			(20	)		100
Depreciation of property, plant and equipment		(10	)		(1	)		(3	)		(14	)
Amortization of intangible assets		(47	)		(16	)		—			(63	)
Operating income (loss)		43			3			(23	)		23
June 30, 2014
Revenues	$	656		$	137		$	(5	)	$	788
OIBDA		71			24			(29	)		66
Depreciation of property, plant and equipment		(9	)		(2	)		(3	)		(14	)
Amortization of intangible assets		(51	)		(16	)		—			(67	)
Operating income (loss)		11			6			(32	)		(15	)

							Corporate
	Recorded			Music			expenses and
	Music			Publishing			eliminations			Total
Nine Months Ended	(in millions)
June 30, 2015
Revenues	$	1,870		$	359		$	(13	)	$	2,216
OIBDA		302			88			(67	)		323
Depreciation of property, plant and equipment		(29	)		(4	)		(9	)		(42	)
Amortization of intangible assets		(143	)		(48	)		—			(191	)
Operating income (loss)		130			36			(76	)		90
June 30, 2014
Revenues	$	1,882		$	387		$	(13	)	$	2,256
OIBDA		203			98			(68	)		233
Depreciation of property, plant and equipment		(26	)		(4	)		(9	)		(39	)
Amortization of intangible assets		(150	)		(49	)		—			(199	)
Operating income (loss)		27			45			(77	)		(5	)