Segment Information

9 Months Ended

Jun. 30, 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)
June 30, 2019
Revenue	$	913	$	147	$	(2	)	$	1,058
Operating income (loss)	85		18		(45		)	58
Amortization of intangible assets	34		17		—			51
Depreciation of property, plant and equipment	12		1		2			15
OIBDA	131		36		(43		)	124
June 30, 2018
Revenue	$	802	$	159	$	(3	)	$	958
Operating income (loss)	67		5		(44		)	28
Amortization of intangible assets	39		17		—			56
Depreciation of property, plant and equipment	9		2		4			15
OIBDA	115		24		(40		)	99



	Recorded Music		Music Publishing		Corporate expenses and eliminations			Total
Nine Months Ended	(in millions)
June 30, 2019
Revenue	$	2,887	$	470	$	(6	)	$	3,351
Operating income (loss)	382		67		(122		)	327
Amortization of intangible assets	109		51		—			160
Depreciation of property, plant and equipment	31		4		8			43
OIBDA	522		122		(114		)	530
June 30, 2018
Revenue	$	2,497	$	476	$	(7	)	$	2,966
Operating income (loss)	276		45		(120		)	201
Amortization of intangible assets	113		51		—			164
Depreciation of property, plant and equipment	26		5		10			41
OIBDA	415		101		(110		)	406