10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission File Number 001-32686

VIACOM INC.

(Exact name of registrant as specified in its charter)

DELAWARE	20-3515052
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

1515 Broadway

New York, NY 10036

(212) 258-6000

(Address, including zip code, and telephone number,

including area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).  Yes x    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x    Accelerated filer ¨    Non-accelerated filer ¨    Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨    No x

Class of Stock	Shares Outstanding as of January 29, 2016
Class A common stock, par value $0.001 per share	49,434,385
Class B common stock, par value $0.001 per share	346,456,384

VIACOM INC.

INDEX TO FORM 10-Q

		Page
PART I—FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Earnings for the quarters ended December 31, 2015 and 2014	1
	Consolidated Statements of Comprehensive Income for the quarters ended December 31, 2015 and 2014	2
	Consolidated Balance Sheets as of December 31, 2015 and September 30, 2015	3
	Consolidated Statements of Cash Flows for the quarters ended December 31, 2015 and 2014	4
	Notes to Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Results of Operations and Financial Condition	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	23
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25

PART I – FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.

VIACOM INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Quarter Ended    December 31,
(in millions, except per share amounts)	2015			2014
Revenues	$	3,154		$	3,344
Expenses:
Operating	1,593			1,623
Selling, general and administrative	667			731
Depreciation and amortization	55			55
Total expenses	2,315			2,409
Operating income	839			935
Interest expense, net	(155		)	(160		)
Equity in net earnings of investee companies	31			33
Other items, net	2			(18		)
Earnings before provision for income taxes	717			790
Provision for income taxes	(256		)	(277		)
Net earnings (Viacom and noncontrolling interests)	461			513
Net earnings attributable to noncontrolling interests	(12		)	(13		)
Net earnings attributable to Viacom	$	449		$	500
Basic earnings per share attributable to Viacom	$	1.13		$	1.22
Diluted earnings per share attributable to Viacom	$	1.13		$	1.20
Weighted average number of common shares outstanding:
Basic	396.6			410.6
Diluted	398.4			416.1
Dividends declared per share of Class A and Class B common stock	$	0.40		$	0.33

See accompanying notes to Consolidated Financial Statements

1

VIACOM INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Quarter Ended    December 31,
(in millions)	2015			2014
Net earnings (Viacom and noncontrolling interests)	$	461		$	513
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(40		)	(104		)
Defined benefit pension plans	(5		)	(20		)
Cash flow hedges	(1		)	—
Other comprehensive loss (Viacom and noncontrolling interests)	(46		)	(124		)
Comprehensive income	415			389
Less: Comprehensive income attributable to noncontrolling interest	9			11
Comprehensive income attributable to Viacom	$	406		$	378

See accompanying notes to Consolidated Financial Statements

2

VIACOM INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except par value)	December 31, 2015			September 30, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	327		$	506
Receivables, net	3,012			2,807
Inventory, net	808			786
Prepaid and other assets	552			479
Total current assets	4,699			4,578
Property and equipment, net	903			947
Inventory, net	3,766			3,616
Goodwill	11,434			11,456
Intangibles, net	328			340
Other assets	1,232			1,206
Total assets	$	22,362		$	22,143
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	289		$	506
Accrued expenses	618			748
Participants' share and residuals	913			860
Program obligations	638			703
Deferred revenue	459			481
Current portion of debt	1,073			18
Other liabilities	478			537
Total current liabilities	4,468			3,853
Noncurrent portion of debt	11,494			12,267
Participants' share and residuals	306			351
Program obligations	321			356
Deferred tax liabilities, net	448			150
Other liabilities	1,338			1,348
Redeemable noncontrolling interest	231			219
Commitments and contingencies (Note 6)
Viacom stockholders' equity:
Class A common stock, par value $0.001, 375.0 authorized; 49.5 and 50.1 outstanding, respectively	—			—
Class B common stock, par value $0.001, 5,000.0 authorized; 346.6 and 348.0 outstanding, respectively	—			—
Additional paid-in capital	10,051			10,017
Treasury stock, 400.1 and 398.0 common shares held in treasury, respectively	(20,825		)	(20,725		)
Retained earnings	15,049			14,780
Accumulated other comprehensive loss	(577		)	(534		)
Total Viacom stockholders' equity	3,698			3,538
Noncontrolling interests	58			61
Total equity	3,756			3,599
Total liabilities and equity	$	22,362		$	22,143

See accompanying notes to Consolidated Financial Statements

3

VIACOM INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Quarter Ended   December 31,
(in millions)	2015			2014
OPERATING ACTIVITIES
Net earnings (Viacom and noncontrolling interests)	$	461		$	513
Reconciling items:
Depreciation and amortization	55			55
Feature film and program amortization	1,028			1,027
Equity-based compensation	26			26
Equity in net earnings and distributions from investee companies	(29		)	(29		)
Deferred income taxes	299			232
Operating assets and liabilities, net of acquisitions:
Receivables	(188		)	42
Inventory, program rights and participations	(1,292		)	(1,448		)
Accounts payable and other current liabilities	(481		)	(421		)
Other, net	(5		)	59
Net cash provided by/(used in) operating activities	(126		)	56
INVESTING ACTIVITIES
Acquisitions and investments, net	(30		)	(1		)
Capital expenditures	(26		)	(34		)
Net cash flow used in investing activities	(56		)	(35		)
FINANCING ACTIVITIES
Borrowings	—			990
Commercial paper	290			—
Purchase of treasury stock	(100		)	(754		)
Dividends paid	(159		)	(137		)
Excess tax benefits on equity-based compensation awards	—			35
Exercise of stock options	1			104
Other, net	(22		)	(45		)
Net cash flow provided by financing activities	10			193
Effect of exchange rate changes on cash and cash equivalents	(7		)	(29		)
Net change in cash and cash equivalents	(179		)	185
Cash and cash equivalents at beginning of period	506			1,000
Cash and cash equivalents at end of period	$	327		$	1,185

See accompanying notes to Consolidated Financial Statements

4

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BASIS OF PRESENTATION

Description of Business

Viacom is home to premier global media brands that create compelling television programs, motion pictures, short-form content, apps, games, consumer products, social media experiences and other entertainment content for audiences in 180 countries. Viacom operates through two reporting segments: Media Networks, which includes the Music & Entertainment Group, the Kids & Family Group and BET Networks, and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands. References in this document to “Viacom,” “Company,” “we,” “us” and “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise.

Unaudited Interim Financial Statements

The accompanying unaudited consolidated quarterly financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of our results of operations, financial position and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results expected for the fiscal year ending September 30, 2016 (“fiscal 2016”) or any future period. These financial statements should be read in conjunction with our Form 10-K for the year ended September 30, 2015, as filed with the SEC on November 12, 2015 (the “2015 Form 10-K”).

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates.

Recent Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01 - Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires the fair value measurement of investments in certain equity securities. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. All changes in measurement will be recognized in net income. The guidance will be effective for the first interim period of our 2019 fiscal year. Early adoption is not permitted, except for certain provisions relating to financial liabilities. We are currently evaluating the impact of the new standard.

In November 2015, the FASB issued ASU 2015-17 - Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires that all deferred taxes be classified as noncurrent in the balance sheet. The guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted on either a prospective or retrospective basis. In the quarter ended December 31, 2015, we adopted the new guidance on a retrospective basis. As a result, our $99 million net deferred tax liability in the Consolidated Balance Sheet as of September 30, 2015 is presented as a deferred tax asset of $51 million within Other assets and $150 million in Deferred tax liabilities, net.

In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers, a comprehensive revenue recognition model that supersedes the current revenue recognition requirements and most industry-specific guidance. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The guidance will be effective for the first interim period of our 2019 fiscal year (with early adoption permitted beginning fiscal year 2018), and allows adoption either under a full retrospective or a modified retrospective approach. We are currently evaluating the impact of the new standard.

5

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

NOTE 2. INVENTORY

Our total inventory consists of the following:

Inventory (in millions)	December 31, 2015			September 30, 2015
Film inventory:
Released, net of amortization	$	609		$	576
Completed, not yet released	249			55
In process and other	690			806
Total film inventory, net of amortization	1,548			1,437
Television productions	27			8
Total film and television production inventory	1,575			1,445
Original programming:
Released, net of amortization	1,125			1,161
In process and other	632			599
Total original programming, net of amortization	1,757			1,760
Acquired program rights, net of amortization	1,149			1,108
Home entertainment inventory	93			89
Total inventory, net	4,574			4,402
Less: current portion	(808		)	(786		)
Total inventory-noncurrent, net	$	3,766		$	3,616

6

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

NOTE 3. DEBT

Our total debt consists of the following:

Debt (in millions)	December 31, 2015			September 30, 2015
Senior Notes and Debentures:
Senior notes due April 2016, 6.250%	368			368
Senior notes due December 2016, 2.500%	399			399
Senior notes due April 2017, 3.500%	498			498
Senior notes due October 2017, 6.125%	499			499
Senior notes due September 2018, 2.500%	497			497
Senior notes due April 2019, 2.200%	399			398
Senior notes due September 2019, 5.625%	550			550
Senior notes due December 2019, 2.750%	398			398
Senior notes due March 2021, 4.500%	494			494
Senior notes due December 2021, 3.875%	592			592
Senior notes due June 2022, 3.125%	296			296
Senior notes due March 2023, 3.250%	297			297
Senior notes due September 2023, 4.250%	1,233			1,233
Senior notes due April 2024, 3.875%	544			543
Senior debentures due December 2034, 4.850%	593			592
Senior debentures due April 2036, 6.875%	1,066			1,066
Senior debentures due October 2037, 6.750%	75			75
Senior debentures due February 2042, 4.500%	244			244
Senior debentures due March 2043, 4.375%	1,086			1,085
Senior debentures due June 2043, 4.875%	246			246
Senior debentures due September 2043, 5.850%	1,228			1,228
Senior debentures due April 2044, 5.250%	544			544
Commercial paper	290			—
Capital lease and other obligations	131			143
Total debt	12,567			12,285
Less: current portion	(1,073		)	(18		)
Total noncurrent portion of debt	$	11,494		$	12,267

The total unamortized discount and issuance fees and expenses related to our senior notes and debentures was $474 million as of December 31, 2015 and $478 million as of September 30, 2015. The fair value of our senior notes and debentures was approximately $11.9 billion as of December 31, 2015. The valuation of our publicly traded debt is based on quoted prices in active markets.

Credit Facility

At December 31, 2015, there were no amounts outstanding under our $2.5 billion revolving credit facility due November 2019. The credit facility is used for general corporate purposes and to support commercial paper outstanding. The amount of unused capacity under the credit facility, after deducting commercial paper outstanding of $290 million with a weighted average maturity of 21 days and weighted average interest rate of 1.16%, was $2.2 billion as of December 31, 2015. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of December 31, 2015.

7

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

NOTE 4. PENSION BENEFITS

The components of net periodic benefit cost for our defined benefit pension plans, which are currently frozen to future benefit accruals, are set forth below.

Net Periodic Benefit Cost (in millions)	Quarter Ended    December 31,
	2015			2014
Interest cost	$	9		$	12
Expected return on plan assets	(10		)	(13		)
Recognized actuarial loss	1			1
Loss on pension settlement	—			24
Net periodic benefit cost	$	—		$	24

NOTE 5. REDEEMABLE NONCONTROLLING INTEREST

We are subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary. The put option expires in December 2022 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets.

The activity reflected within redeemable noncontrolling interest is as follows:

Redeemable Noncontrolling Interest	Quarter Ended   December 31,
(in millions)	2015			2014
Beginning balance	$	219		$	216
Net earnings	7			7
Distributions	(7		)	(8		)
Translation adjustment	(8		)	(9		)
Redemption value adjustment	20			1
Ending Balance	$	231		$	207

NOTE 6. COMMITMENTS AND CONTINGENCIES

Commitments

As more fully described in Note 11 of the 2015 Form 10-K, our commitments primarily consist of programming and talent commitments, operating and capital lease arrangements, and purchase obligations for goods and services. These arrangements result from our normal course of business and represent obligations that may be payable over several years.

Contingencies

We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. (“Famous Players”). In addition, we have certain indemnities provided by the acquirer of Famous Players. These lease commitments amounted to approximately $250 million as of December 31, 2015. The amount of lease commitments varies over time depending on expiration or termination of individual underlying leases, or of the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We have recorded a liability of $192 million with respect to such obligations as of December 31, 2015. We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models.

Legal Matters

Litigation is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the legal matters described below and other litigation to which we are a party are not likely, in the aggregate, to have a material adverse effect on our results of operations, financial position or operating cash flows.

8

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

In July 2015, the Directorate-General for Competition (“DG Comp”) of the European Commission (the “EC”) issued a Statement of Objections (the “SO”) to the six major Hollywood film studios, including Paramount Pictures, and to Sky UK (“Sky”), in connection with DG Comp's investigation into whether conventional territorial restrictions in agreements licensing content to pay television broadcasters impeded European Union (“EU”) single market imperatives in an anti-competitive way. The SO directed at Paramount takes issue with certain geo-filtering provisions in Paramount’s 2009 and 2014 agreements with Sky, which are designed to enforce the territorial nature of the content Paramount licenses for distribution on Sky’s online and mobile pay television platforms. In addition, the SO challenges certain provisions in the 2009 agreement regarding Sky’s satellite distribution of Paramount content. Paramount has responded to the SO. If the SO directed at Paramount is not closed or resolved by settlement and the EC decides that violations have in fact occurred, it has the power to impose fines. Any such decision by the EC could be subject to judicial review in the EU’s General Court and, thereafter, the Court of Justice of the EU. The full process, including appeals, could last several years. We believe that Paramount’s licensing practices in the EU are consistent with the region’s competition and other rules, and the objections presented by the EC are without merit. We will vigorously defend against the claims made by the EC.

In November 2015, Robert J. Casey, II, a Viacom shareholder, commenced a shareholder derivative action in the Court of Chancery of the State of Delaware naming, as defendants, all of the members of our Board of Directors, our Chief Financial Officer and our Controller. The complaint alleged breaches of fiduciary duties and unjust enrichment in connection with (i) our decision to recognize a pre-tax charge in the second quarter of fiscal 2015, reflecting the impact of write-downs of underperforming programming, costs associated with workforce reductions and the accelerated amortization of programming expenses, as we publicly announced on April 6, 2015, (ii) our decision to temporarily pause our stock repurchase program in order to stay within our target leverage ratio, also as publicly announced on April 6, 2015, and (iii) the matters relating to the European Statement of Objections, as discussed above. The complaint was filed following communication to Mr. Casey’s counsel that the Board unanimously determined not to authorize commencement of a civil action against members of management in connection with the above matters, as requested by Mr. Casey’s counsel in previous demand letters. We believe the complaint is meritless and, in January 2016, moved to dismiss it.

In January 2016, E.F. Greenberg, a putative Viacom shareholder, commenced a shareholder derivative action in the Court of Chancery of the State of Delaware against the Company and all the current members of our Board of Directors. The complaint alleges breaches of the fiduciary duties of loyalty and candor, waste of corporate assets, and unjust enrichment in connection with compensation arrangements between Viacom and Sumner and Shari Redstone since October 1, 2013. CBS Corporation and its directors were also named in the complaint in connection with arrangements between CBS and Mr. Redstone and Ms. Redstone. We believe the complaint is meritless and will seek its dismissal pursuant to the procedural rules of the court.

NOTE 7. STOCKHOLDERS’ EQUITY

The components of stockholders’ equity are as follows:

	Quarter Ended    December 31, 2015									Quarter Ended    December 31, 2014
Stockholders’ Equity (in millions)	Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity			Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity
Beginning Balance	$	3,538		$	61		$	3,599		$	3,719		$	28		$	3,747
Net earnings	449			12			461			500			13			513
Other comprehensive loss (1)	(43		)	(3		)	(46		)	(122		)	(2		)	(124		)
Noncontrolling interests	(20		)	(12		)	(32		)	(1		)	(14		)	(15		)
Dividends declared	(159		)	—			(159		)	(136		)	—			(136		)
Purchase of treasury stock	(100		)	—			(100		)	(750		)	—			(750		)
Equity-based compensation and other	33			—			33			142			—			142
Ending Balance	$	3,698		$	58		$	3,756		$	3,352		$	25		$	3,377

(1) The components of other comprehensive loss are net of tax expense of $3 million and a tax benefit of $10 million for the quarters ended December 31, 2015 and 2014, respectively.

9

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

NOTE 8. RESTRUCTURING

Our restructuring liability as of December 31, 2015 by reporting segment is as follows:

2015 Restructuring Liability
(in millions)	Media Networks			Filmed Entertainment			Corporate			Total
September 30, 2015	$	87		$	51		$	9		$	147
Severance payments	(25		)	(5		)	(2		)	(32		)
December 31, 2015	$	62		$	46		$	7		$	115

The liability as of December 31, 2015 is related to future severance payments in connection with the restructuring plan undertaken in fiscal 2015, as further described in Note 14 of the 2015 Form 10-K. We anticipate that substantially all of the remaining restructuring liability will be paid by September 30, 2016.

NOTE 9. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares were excluded from the calculation of diluted earnings per common share.

The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive common shares:

Weighted Average Number of Common Shares Outstanding and Anti-dilutive Common Shares	Quarter Ended    December 31,
(in millions)	2015	2014
Weighted average number of common shares outstanding, basic	396.6	410.6
Dilutive effect of equity awards	1.8	5.5
Weighted average number of common shares outstanding, diluted	398.4	416.1
Anti-dilutive common shares	12.7	4.1

NOTE 10. SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION

Our supplemental cash flow information is as follows:

Supplemental Cash Flow Information	Quarter Ended   December 31,
(in millions)	2015		2014
Cash paid for interest	$	157	$	156
Cash paid for income taxes	$	65	$	48

Accounts Receivable

We had $545 million and $577 million of noncurrent trade receivables as of December 31, 2015 and September 30, 2015, respectively. Accounts receivables are principally related to content distribution arrangements at Media Networks and long-term television license arrangements at Filmed Entertainment. These amounts are included within Other assets - noncurrent in our Consolidated Balance Sheets. Such amounts are due in accordance with the underlying terms of the respective agreements with companies that are investment grade or with which we have historically done business under similar terms. We have determined that credit loss allowances are generally not considered necessary for these amounts.

Variable Interest Entities

In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess

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VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Unconsolidated Variable Interest Entities: We have an unconsolidated investment in Prism TV Private Limited (“Prism”), a 50% owned joint venture in India that qualifies as a VIE. In connection with our investment, we do not have the power to direct matters that most significantly impact the activities of Prism and therefore we do not qualify as the primary beneficiary. Our carrying value in Prism was $152 million and $145 million as of December 31, 2015 and September 30, 2015, respectively.

Consolidated Variable Interest Entities: Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $207 million in assets and $55 million in liabilities as of December 31, 2015, and $207 million in assets and $54 million in liabilities as of September 30, 2015. The consolidated VIEs’ revenues, expenses and operating income were not significant for all periods presented.

Income Taxes

We recognized net discrete tax expense of $21 million in the quarter ended December 31, 2015 and $23 million in the quarter ended December 31, 2014, principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation.

Our effective tax rate was 35.7% in the quarter ended December 31, 2015, which included discrete tax expense that contributed 2.9 percentage points to the effective tax rate. Our effective tax rate was 35.1% in the quarter ended December 31, 2014, which included discrete tax expense and a loss on pension settlement that, when taken together, contributed 2.8 percentage points to the effective tax rate.

NOTE 11. FAIR VALUE MEASUREMENTS

The following table summarizes our financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2015 and September 30, 2015:

Financial Asset/(Liability)				Quoted Prices In Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
(in millions)	Total			Level 1		Level 2			Level 3
December 31, 2015
Marketable securities	$	106		$	106	$	—		$	—
Derivatives	(9		)	—		(9		)	—
Total	$	97		$	106	$	(9	)	$	—
September 30, 2015
Marketable securities	$	100		$	100	$	—		$	—
Derivatives	(10		)	—		(10		)	—
Total	$	90		$	100	$	(10	)	$	—

The fair value for marketable securities is determined utilizing a market approach based on quoted market prices in active markets at period end and the fair value for derivatives is determined utilizing a market-based approach.

The notional value of all foreign exchange contracts was $1.171 billion and $1.040 billion as of December 31, 2015 and September 30, 2015, respectively. At December 31, 2015, $809 million related to our foreign currency balances and $362 million related to future production costs. At September 30, 2015, $769 million related to our foreign currency balances and $271 million related to future production costs.

11

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

NOTE 12. REPORTING SEGMENTS

The following tables set forth our financial performance by reporting segment. Our reporting segments have been determined in accordance with our internal management structure. We manage our operations through two reporting segments: (i) Media Networks and (ii) Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films and television programming exhibition rights by Media Networks. The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the tables below.

Our measure of segment performance is adjusted operating income/(loss). Adjusted operating income/(loss) is defined as operating income/(loss), before equity-based compensation and certain other items identified as affecting comparability, when applicable.

Revenues by Segment	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	2,565		$	2,654
Filmed Entertainment	612			720
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

Adjusted Operating Income/(Loss)	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	1,057		$	1,104
Filmed Entertainment	(146		)	(60		)
Corporate expenses	(50		)	(61		)
Eliminations	4			2
Equity-based compensation	(26		)	(26		)
Loss on pension settlement	—			(24		)
Operating income	839			935
Interest expense, net	(155		)	(160		)
Equity in net earnings of investee companies	31			33
Other items, net	2			(18		)
Earnings before provision for income taxes	$	717		$	790

Total Assets	December 31, 2015			September 30, 2015
(in millions)
Media Networks	$	17,039		$	17,251
Filmed Entertainment	6,380			5,928
Corporate/Eliminations	(1,057		)	(1,036		)
Total assets	$	22,362		$	22,143

12

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

Revenues by Component	Quarter Ended    December 31,
(in millions)	2015			2014
Advertising	$	1,320		$	1,367
Feature film	570			674
Affiliate fees	1,119			1,132
Ancillary	168			201
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

NOTE 13. RELATED PARTY TRANSACTIONS

National Amusements, Inc. (“NAI”), directly and indirectly, is the controlling stockholder of both Viacom and CBS Corporation (“CBS”). Sumner M. Redstone, the controlling shareholder, Chairman and Chief Executive Officer of NAI, serves as our Chairman Emeritus and as the Chairman Emeritus of CBS. Shari Redstone, who is Sumner Redstone’s daughter, is the President and a director of NAI, and serves as non-executive Vice Chair of the Board of Directors of both Viacom and CBS. George Abrams, one of our directors, serves on the boards of both NAI and Viacom, and Frederic Salerno, another of our directors, serves on the boards of both Viacom and CBS. Philippe Dauman, our Executive Chairman, President and Chief Executive Officer, also serves on the boards of both NAI and Viacom. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee.

Viacom and NAI Related Party Transactions

NAI licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the quarters ended December 31, 2015 and 2014, Paramount earned revenues from NAI in connection with these licenses in the aggregate amounts of approximately $1 million and $2 million, respectively.

Viacom and CBS Corporation Related Party Transactions

In the ordinary course of business, we are involved in transactions with CBS and its various businesses that result in the recognition of revenues and expenses by us. Transactions with CBS are settled in cash.

Our Filmed Entertainment segment earns revenues and recognizes expenses associated with its distribution of certain television products into the home entertainment market on behalf of CBS. Pursuant to its agreement with CBS, Paramount distributes CBS’s library of television and other content on DVD and Blu-ray disc on a worldwide basis. Under the terms of the agreement, Paramount is entitled to retain a fee based on a percentage of gross receipts and is generally responsible for all out-of-pocket costs, which are recoupable together with any advance amounts paid. Paramount made advance payments of $60 million to CBS during the quarter ended December 31, 2015. Paramount also earns revenues from CBS through leasing of studio space and licensing of certain film products.

Our Media Networks segment recognizes advertising revenues and purchases television programming from CBS. The cost of the programming purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated.

Both of our segments recognize advertising expenses related to the placement of advertisements with CBS.

13

VIACOM INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(continued)

The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements:

CBS Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015		2014
Consolidated Statements of Earnings
Revenues	$	43	$	59
Operating expenses	$	59	$	68
	December 31, 2015		September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	4	$	5
Accounts payable	$	1	$	1
Participants’ share and residuals, current	65		77
Program obligations, current	88		62
Program obligations, noncurrent	42		55
Other liabilities	2		2
Total due to CBS	$	198	$	197

Other Related Party Transactions

In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows:

Other Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015			2014
Consolidated Statements of Earnings
Revenues	$	5		$	13
Operating expenses	$	2		$	2
Selling, general and administrative	$	(2	)	$	(2	)
	December 31, 2015			September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	61		$	60
Other assets	1			1
Total due from other related parties	$	62		$	61
Accounts payable	$	7		$	5
Other liabilities	54			55
Total due to other related parties	$	61		$	60

All other related party transactions are not material in the periods presented.

14

Item 2.Management’s Discussion and Analysis of Results of Operations and Financial Condition.

Management’s discussion and analysis of results of operations and financial condition is provided as a supplement to and should be read in conjunction with the unaudited consolidated financial statements and related notes to enhance the understanding of our results of operations, financial condition and cash flows. Additional context can also be found in our Form 10-K for the fiscal year ended September 30, 2015, as filed with the Securities and Exchange Commission (“SEC”) on November 12, 2015 (the “2015 Form 10-K”). References in this document to “Viacom,” “Company,” “we,” “us” and “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise.

Significant components of management’s discussion and analysis of results of operations and financial condition include:

Overview: The overview section provides a summary of our business.

Results of Operations: The results of operations section provides an analysis of our results on a consolidated and reportable segment basis for the quarter ended December 31, 2015, compared with the quarter ended December 31, 2014. In addition, we provide a discussion of items that affect the comparability of our results of operations.

Liquidity and Capital Resources: The liquidity and capital resources section provides a discussion of our cash flows for the quarter ended December 31, 2015, compared with the quarter ended December 31, 2014, and of our outstanding debt, commitments and contingencies existing as of December 31, 2015.

OVERVIEW

Summary

We are home to premier global media brands that create compelling television programs, motion pictures, short-form content, apps, games, consumer products, social media experiences and other entertainment content for audiences in 180 countries. Our media networks, including Nickelodeon^®, COMEDY CENTRAL^®, MTV^®, VH1^®, SPIKE^®, BET^®, CMT^®, TV Land^®, Nick at Nite^®, Nick Jr.^®, Channel 5^® (UK), Logo^®, Nicktoons^®, TeenNick^® and Paramount Channel™, reach 510 million households worldwide. Viacom Media Networks also provides extensive online, mobile and app experiences. Paramount Pictures^® is a major global producer and distributor of filmed entertainment. Paramount Television™ develops and produces programming for television and video-on-demand platforms.

We operate through two reporting segments: Media Networks and Filmed Entertainment. Our measure of segment performance is adjusted operating income/(loss). We define adjusted operating income/(loss) for our segments as operating income/(loss), before equity-based compensation and certain other items identified as affecting comparability, when applicable. Equity-based compensation is excluded from our segment measure of performance since it is set and approved by the Compensation Committee of Viacom’s Board of Directors in consultation with corporate executive management, and is included as a component of consolidated adjusted operating income.

When applicable, we use consolidated adjusted operating income, adjusted net earnings attributable to Viacom and adjusted diluted earnings per share (“EPS”), among other measures, to evaluate our actual operating performance and for planning and forecasting of future periods. We believe that the adjusted results provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these are not measures of performance calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”), they should not be considered in isolation of, or as a substitute for, operating income, net earnings attributable to Viacom and diluted EPS as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies. For a reconciliation of our adjusted measures and discussion of the items affecting comparability, refer to the section entitled “Factors Affecting Comparability”.

Media Networks

Our Media Networks segment generates revenues in three categories: (i) the sale of advertising and marketing services, (ii) affiliate fees from cable television operators, direct-to-home satellite television operators, mobile networks, video-on-demand services, and other distributors of our programming and program services, and (iii) ancillary revenues, which include consumer products licensing, brand licensing, sale of content on DVDs and Blu-ray discs, licensing of our content for download-to-own and download-to-rent services and television syndication.

15

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

Media Networks segment expenses consist of operating expenses, selling, general and administrative (“SG&A”) expenses and depreciation and amortization. Operating expenses are comprised of costs related to original and acquired programming, including programming amortization, expenses associated with the distribution of home entertainment products and consumer products licensing, participation fees, integrated marketing expenses and other costs of sales. SG&A expenses consist primarily of employee compensation, marketing, research and professional service fees and facility and occupancy costs. Depreciation and amortization expenses reflect depreciation of fixed assets, including transponders financed under capital leases, and amortization of finite-lived intangible assets.

Filmed Entertainment

Our Filmed Entertainment segment generates revenues worldwide principally from: (i) the theatrical release and/or distribution of motion pictures, (ii) home entertainment, which includes sales of DVDs and Blu-ray discs relating to the motion pictures we release theatrically and direct-to-DVD, as well as content distributed on behalf of Viacom and third parties, transactional video-on-demand and download-to-own services, (iii) licensing of film and television exhibition rights to pay and basic cable television, free television, subscription video-on-demand and free video-on-demand services and (iv) ancillary revenues from providing production services to third parties, primarily at Paramount’s studio lot, licensing of its brands for consumer products, theme parks and other uses, and distribution of content specifically developed for digital platforms.

Filmed Entertainment segment expenses consist of operating expenses, SG&A expenses and depreciation and amortization. Operating expenses principally include the amortization of film costs of our released feature films (including participations and residuals), print and advertising expenses and other distribution costs. We incur marketing costs before and throughout the theatrical release of a film and, to a lesser extent, other distribution windows. Such costs are incurred to generate public interest in our films and are expensed as incurred; therefore, we typically incur losses with respect to a particular film prior to and during the film’s theatrical exhibition and profitability may not be realized until well after a film’s theatrical release. Therefore, the results of the Filmed Entertainment segment can be volatile as films work their way through the various distribution windows. SG&A expenses include employee compensation, facility and occupancy costs, professional service fees and other overhead costs. Depreciation and amortization expense principally consists of depreciation of fixed assets.

RESULTS OF OPERATIONS

Consolidated Results of Operations

Our summary consolidated results of operations are presented below for the quarters ended December 31, 2015 and 2014.

	Quarter Ended    December 31,				Better/(Worse)
(in millions, except per share amounts)	2015		2014		$			%
Revenues	$	3,154	$	3,344	$	(190	)	(6	)%
Operating income	839		935		(96		)	(10	)
Adjusted operating income	839		959		(120		)	(13	)
Net earnings attributable to Viacom	449		500		(51		)	(10	)
Adjusted net earnings attributable to Viacom	470		538		(68		)	(13	)
Diluted EPS	1.13		1.20		(0.07		)	(6	)
Adjusted diluted EPS	$	1.18	$	1.29	$	(0.11	)	(9	)%

See the section entitled “Factors Affecting Comparability” for a reconciliation of our adjusted measures to our reported results.

Revenues

Worldwide revenues decreased$190 million, or 6%, to $3.154 billion in the quarter ended December 31, 2015. Excluding foreign exchange, which had a 2-percentage point unfavorable impact, worldwide revenues decreased 4%. Filmed Entertainment revenues decreased$108 million, or 15%, primarily driven by lower theatrical and home entertainment revenues, partially offset by increased license fees, and Media Networks revenues decreased$89 million, or 3%, principally reflecting lower advertising and ancillary revenues. Excluding foreign exchange, which had a 1-percentage point and 3-percentage point unfavorable impact, respectively, Media Networks revenuesdeclined 2% and Filmed Entertainment revenues declined 12%.

Operating Income

Adjusted operating income decreased$120 million, or 13%, to $839 million in the quarter ended December 31, 2015. Filmed Entertainment adjusted operating results decreased $86 million reflecting the timing and mix of current quarter releases, as well

16

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

as lower contributions from films in release in the post-theatrical distribution windows. Media Networks adjusted operating income decreased $47 million, or 4%, as the decline in revenues was partially offset by lower expenses. In addition, corporate expenses decreased $11 million, or 18%, due to lower employee-related costs. Adjusted results in the quarter ended December 31, 2014 exclude the impact of a non-cash pension settlement loss of $24 million. Including the pension settlement loss, operating income decreased$96 million, or 10%.

See the section entitled “Segment Results of Operations” for a more in-depth discussion of the revenues, expenses and adjusted operating income/(loss) for each of the Media Networks and Filmed Entertainment segments.

Net Earnings Attributable to Viacom

Adjusted net earnings attributable to Viacom decreased$68 million, or 13%, to $470 million in the quarter ended December 31, 2015, principally due to the decline in tax-effected operating income described above, partially offset by the impact of foreign currency losses in the prior year quarter.

Our effective income tax rate was 32.8% in the quarter, compared with 32.3% in the quarter ended December 31, 2014, excluding the impact of discrete tax items.

Adjusted diluted EPS decreased$0.11 per diluted share to $1.18 in the quarter, reflecting lower earnings, partially offset by the impact of fewer shares. Foreign exchange had an unfavorable $0.02 impact on adjusted diluted EPS.

In addition to the pension settlement loss in the prior year quarter mentioned above, adjusted net earnings attributable to Viacom exclude net discrete tax expense of $21 million and $23 million in the quarters ended December 31, 2015 and 2014, respectively. Including these items, net earnings attributable to Viacom declined $51 million, or 10% and diluted EPS decreased$0.07.

Segment Results of Operations

Transactions between reportable segments are accounted for as third-party arrangements for the purposes of presenting segment results of operations. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films and television programming exhibition rights by Media Networks.

Media Networks

	Quarter Ended    December 31,				Better/(Worse)
(in millions)	2015		2014		$			%
Revenues by Component
Advertising	$	1,320	$	1,367	$	(47	)	(3	)%
Affiliate fees	1,119		1,132		(13		)	(1	)
Ancillary	126		155		(29		)	(19	)
Total revenues by component	$	2,565	$	2,654	$	(89	)	(3	)%
Expenses
Operating	$	957	$	987	$	30		3	%
Selling, general and administrative	510		522		12			2
Depreciation and amortization	41		41		—			—
Total expenses	$	1,508	$	1,550	$	42		3	%
Adjusted Operating Income	$	1,057	$	1,104	$	(47	)	(4	)%

Revenues

Worldwide revenues decreased$89 million, or 3%, to $2.565 billion in the quarter ended December 31, 2015. Excluding foreign exchange, which had a 1-percentage point unfavorable impact, worldwide revenues decreased 2%. Domestic revenues decreased$67 million, or 3%, to $2.057 billion, principally due to lower advertising and ancillary revenues. International revenues decreased4% to $508 million, driven by the impact of foreign exchange, which had a 7-percentage point unfavorable impact on international revenues. Excluding the impact of foreign exchange, international revenues increased 3% reflecting higher advertising and affiliate revenues.

17

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

Advertising

Worldwide advertising revenues decreased$47 million, or 3%, to $1.320 billion in the quarter. Excluding foreign exchange, which had a 1-percentage point unfavorable impact, worldwide advertising revenues decreased 2%. Domestic advertising revenues decreased4%. While pricing increased, softer ratings at certain of our networks caused lower audience delivery, reducing impressions and associated revenue. International advertising revenues decreased2%, driven by the impact of foreign exchange, which had an 8-percentage point unfavorable impact on international revenues. Excluding the impact of foreign exchange, international advertising revenues increased 6% driven by growth in Europe.

Affiliate Fees

Worldwide affiliate fee revenues decreased$13 million, or 1%, to $1.119 billion in the quarter. Excluding foreign exchange, which had a 1-percentage point unfavorable impact, worldwide affiliate revenues were flat. Domestic affiliate revenues were substantially flat. Excluding the impact from the timing of product available under certain distribution agreements, domestic affiliate revenues grew in the low mid single digits as rate increases were partially offset by a modest decline in subscribers compared to the prior year quarter. International affiliate revenues decreased6%, driven by the impact of foreign exchange, which had a 9-percentage point unfavorable impact on international revenues. Excluding the impact of foreign exchange, international affiliate revenues increased 3% driven by the launch of new channels and increased subscribers.

Ancillary

Worldwide ancillary revenue decreased$29 million, or 19%, to $126 million in the quarter, driven by lower consumer product revenue, reflecting Teenage Mutant Ninja Turtles merchandise sales in the prior year quarter, and a decline in television syndication revenue.

Expenses

Total expenses decreased$42 million, or 3%, to $1.508 billion in the quarter.

Operating

Operating expenses decreased$30 million, or 3%, to $957 million in the quarter. Programming costs decreased$25 million, or 3%, to $847 million primarily driven by the benefit associated with programming charges taken in the second quarter of fiscal 2015, partially offset by our continuing investment in original content. Distribution and other expenses decreased$5 million, or 4%, to $110 million.

Selling, General and Administrative

SG&A expenses decreased$12 million, or 2%, to $510 million in the quarter, reflecting lower employee costs, partially offset by higher advertising and promotional expenses related to marketing original programming.

Adjusted Operating Income

Adjusted operating income decreased$47 million, or 4%, to $1.057 billion in the quarter, reflecting the operating results discussed above and a 1-percentage point unfavorable foreign exchange impact.

Filmed Entertainment

	Quarter Ended    December 31,						Better/(Worse)
(in millions)	2015			2014			$			%
Revenues by Component
Theatrical	$	94		$	169		$	(75	)	(44	)%
Home entertainment	239			316			(77		)	(24	)
License fees	237			189			48			25
Ancillary	42			46			(4		)	(9	)
Total revenues by component	$	612		$	720		$	(108	)	(15	)%
Expenses
Operating	$	663		$	668		$	5		1	%
Selling, general and administrative	82			99			17			17
Depreciation and amortization	13			13			—			—
Total expenses	$	758		$	780		$	22		3	%
Adjusted Operating Loss	$	(146	)	$	(60	)	$	(86	)	(143	)%

18

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

Revenues

Worldwide revenues decreased$108 million, or 15%, to $612 million in the quarter ended December 31, 2015. Excluding foreign exchange, which had a 3-percentage point unfavorable impact, worldwide revenues declined 12%. Domestic revenues were $311 million and international revenues were $301 million, a decline of 16% and 14%, respectively. Foreign exchange had a 7-percentage point unfavorable impact on international revenues.

Theatrical

Worldwide theatrical revenues decreased$75 million, or 44%, to $94 million in the quarter. Carryover revenues decreased $46 million principally due to revenues from Teenage Mutant Ninja Turtles in the prior year quarter, and revenues from our current quarter releases were lower by $29 million due to the timing and mix of releases. Significant current quarter releases included Daddy's Home, Paranormal Activity: The Ghost Dimension and The Big Short, while the prior year quarter included Interstellar. Domestic theatrical revenues decreased51% and international theatrical revenues decreased33%. Foreign exchange had an 8-percentage point unfavorable impact on international theatrical revenues.

Home Entertainment

Worldwide home entertainment revenues decreased$77 million, or 24%, to $239 million in the quarter, primarily reflecting carryover revenues from Transformers: Age of Extinction in the prior year quarter. Significant titles in the current quarter included Mission: Impossible - Rogue Nation and Terminator: Genisys, while the prior year quarter includedTeenage Mutant Ninja Turtles. Domestic home entertainment revenues decreased18% and international home entertainment revenues decreased32%. Foreign exchange had a 7-percentage point unfavorable impact on international home entertainment revenues.

License Fees

License fees increased$48 million, or 25%, to $237 million in the quarter, primarily driven by the licensing of certain titles in subscription video-on-demand and television.

Expenses

Total expenses decreased$22 million, or 3%, to $758 million in the quarter, principally driven by savings in SG&A expenses.

Operating

Operating expenses decreased$5 million, or 1%, to $663 million in the quarter. Distribution and other costs, principally print and advertising expenses, decreased$30 million, or 9%, principally driven by home entertainment distribution costs for Transformers: Age of Extinction in the prior year quarter. Film costs increased$25 million, or 8%, reflecting higher participations and residuals.

Selling, General and Administrative

SG&A expenses decreased$17 million, or 17%, to $82 million in the quarter, primarily driven by lower employee costs.

Adjusted Operating Loss

Adjusted operating loss was $146 million for the quarter ended December 31, 2015 compared with $60 million for the quarter ended December 31, 2014. The decline of $86 million in operating results reflects the timing and mix of current quarter releases, as well as lower contributions from films in release in the post-theatrical distribution windows. The generation of an operating loss reflects the recognition of print and advertising expenses incurred in the period, generally before and throughout the theatrical release of a film, while revenues for the respective films are recognized as earned through its theatrical exhibition and subsequent distribution windows.

Factors Affecting Comparability

The Consolidated Financial Statements as of and for the quarters ended December 31, 2015 and 2014 reflect our results of operations, financial position and cash flows reported in accordance with GAAP. Results for the aforementioned periods, as discussed in the section entitled “Overview”, have been affected by certain items identified as affecting comparability. Accordingly, when applicable, we use adjusted measures to evaluate our actual operating performance.

19

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

The following tables reconcile our adjusted measures to our reported results for the quarters ended December 31, 2015 and 2014. The tax impacts included in the tables have been calculated using the rates applicable to the adjustments presented.

(in millions, except per share amounts)
	Quarter Ended    December 31, 2015
	Operating Income		Pre-tax Earnings		Net Earnings Attributable to Viacom		Diluted EPS
Reported results	$	839	$	717	$	449	$	1.13
Factors Affecting Comparability:
Discrete tax expense	—		—		21		0.05
Adjusted results	$	839	$	717	$	470	$	1.18

(in millions, except per share amounts)
	Quarter Ended    December 31, 2014
	Operating Income		Pre-tax Earnings		Net Earnings Attributable to Viacom		Diluted EPS
Reported results	$	935	$	790	$	500	$	1.20
Factors Affecting Comparability:
Loss on pension settlement	24		24		15		0.04
Discrete tax expense	—		—		23		0.05
Adjusted results	$	959	$	814	$	538	$	1.29

Discrete tax expense: The net discrete tax expense in the quarters ended December 31, 2015 and 2014 is principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation.

Loss on pension settlement: The pre-tax non-cash charge of $24 million in the quarter ended December 31, 2014 was driven by the settlement of pension benefits of certain participants of our funded pension plan.

Our effective tax rate was 32.8% in the quarter ended December 31, 2015 and 32.3% in the quarter ended December 31, 2014, excluding the impact of the discrete tax expense and loss on pension settlement. Discrete tax expense contributed 2.9 percentage points to the effective tax rate, which reconciles to the reported effective tax rate of 35.7% in the quarter ended December 31, 2015. Discrete tax expense, taken together with the impact of the pension settlement loss, contributed 2.8 percentage points to the effective tax rate, which reconciles to the reported effective tax rate of 35.1% in the quarter ended December 31, 2014.

20

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Sources and Uses of Cash

Our primary source of liquidity is cash provided through the operations of our businesses. We have access to external financing sources such as our $2.5 billion five-year revolving credit facility and the capital markets. Our principal uses of cash from operations include the creation of new programming and film content, acquisitions of third-party content, and interest and income tax payments. We also use cash for discretionary share repurchases under our stock repurchase program, as deemed appropriate, as well as quarterly cash dividends, capital expenditures and acquisitions of businesses.

We believe that our cash flows from operating activities together with our credit facility provide us with adequate resources to fund our anticipated ongoing cash requirements. We anticipate that future debt maturities will be funded with cash and cash equivalents, cash flows from operating activities and future access to capital markets, including our credit facility. Share repurchases under the program are expected to be funded through a combination of debt and cash generated by operations, as deemed appropriate.

We may continue to access external financing from time to time depending on our cash requirements, assessments of current and anticipated market conditions and after-tax cost of capital. Our access to capital markets can be impacted by factors outside our control, including economic conditions; however, we believe that our strong cash flows and balance sheet, our credit facility and our credit rating will provide us with adequate access to funding given our expected cash needs. Any new borrowing cost would be affected by market conditions and short and long-term debt ratings assigned by independent rating agencies, and there can be no assurance that we will be able to access capital markets on terms and conditions that will be favorable to us.

Cash Flows

Cash and cash equivalents were $327 million as of December 31, 2015, a decrease of $179 million compared with September 30, 2015.

Operating Activities

Cash used in operating activities was $126 million for the quarter ended December 31, 2015, compared with cash provided by operating activities of $56 million for the quarter ended December 31, 2014, primarily reflecting unfavorable working capital requirements and the impact from lower earnings in the current quarter.

Investing Activities

Cash used in investing activities was $56 million and $35 million for the quarters ended December 31, 2015 and 2014, respectively.

Financing Activities

Cash provided by financing activities was $10 million for the quarter ended December 31, 2015, primarily driven by $290 million of commercial paper borrowings, partially offset by dividend payments of $159 million and the settlement of share repurchases totaling $100 million.

Cash provided by financing activities was $193 million for the quarter ended December 31, 2014, primarily driven by proceeds of $990 million from the issuance of senior notes and debentures and proceeds of $104 million from the exercise of stock options, partially offset by the settlement of share repurchases of $754 million and dividend payments totaling $137 million.

Capital Resources

Capital Structure and Debt

Total debt was $12.567 billion as of December 31, 2015, an increase of $282 million from $12.285 billion at September 30, 2015.

21

Management’s Discussion and Analysis

of Results of Operations and Financial Condition

(continued)

Credit Facility

At December 31, 2015, there were no amounts outstanding under our credit facility. The credit facility is used for general corporate purposes and to support commercial paper outstanding. The amount of unused capacity under the credit facility, after deducting commercial paper outstanding of $290 million with a weighted average maturity of 21 days and weighted average interest rate of 1.16%, was $2.2 billion as of December 31, 2015. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of December 31, 2015.

Stock Repurchase Program

During the quarter ended December 31, 2015, we repurchased 2.1 million shares of Class B common stock for an aggregate purchase price of $100 million, leaving $4.9 billion of remaining capacity under our program.

Commitments and Contingencies

Legal Matters

Litigation is inherently uncertain and difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the legal matters described in this document and other litigation to which we are a party are not likely, in the aggregate, to have a material adverse effect on our results of operations, financial position or operating cash flows. For additional information, see Note 6 to the Consolidated Financial Statements.

OTHER MATTERS

Related Parties

In the ordinary course of business we enter into transactions with related parties, including National Amusements, Inc., CBS Corporation, their respective subsidiaries and affiliates, and companies that we account for under the equity method of accounting. For additional information, see Note 13 to the Consolidated Financial Statements.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q, including “Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition,” contains both historical and forward-looking statements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include, among others: the public acceptance of our brands, programs, motion pictures and other entertainment content on the various platforms on which they are distributed; the impact of inadequate audience measurement on our program ratings, advertising revenues and affiliate fees; technological developments and their effect in our markets and on consumer behavior; competition for content, audiences, advertising and distribution; the impact of piracy; economic fluctuations in advertising and retail markets, and economic conditions generally; fluctuations in our results due to the timing, mix, number and availability of our motion pictures and other programming; the potential for loss of carriage or other reduction in the distribution of our content; changes in the Federal communications or other laws and regulations; evolving cybersecurity and similar risks; other domestic and global economic, business, competitive and/or regulatory factors affecting our businesses generally;and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our 2015 Form 10-K and reports on Form 10-Q and Form 8-K. The forward-looking statements included in this document are made only as of the date of this document, and we do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

Item 3.Quantitative and Qualitative Disclosures about Market Risk.

We are exposed to the impact of interest rate changes, foreign currency fluctuations and changes in the market value of investments. In the ordinary course of business, we may employ established and prudent policies and procedures to manage our exposure principally to changes in interest rates and foreign exchange risks. The objective of such policies and procedures is to manage exposure to market risks in order to minimize the impact on earnings and cash flows. We do not hold or enter into financial instruments for speculative trading purposes.

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Item 4.Controls and Procedures.

Our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)) were effective, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act.

There were no changes in our internal control over financial reporting during the quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1.Legal Proceedings.

Since our 2015 Form 10-K, there have been no material developments in the material legal proceedings in which we are involved, except as set forth in Note 6 to the Consolidated Financial Statements.

Item 1A.Risk Factors.

A wide range of risks may affect our business and financial results, now and in the future. We consider the risks described in our 2015 Form 10-K to be the most significant. There may be other currently unknown or unpredictable economic, business, competitive, regulatory or other factors that could have material adverse effects on our future results.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information about our purchases of Viacom Class B common stock during the quarter ended December 31, 2015 under our publicly announced stock repurchase program.

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under Program
Open Market Purchases	(thousands)	(dollars)		(thousands)	(millions)
Month ended October 31, 2015	1,281	$	46.82	1,281	$	4,940
Month ended November 30, 2015	694	$	50.42	694	$	4,905
Month ended December 31, 2015	105	$	47.94	105	$	4,900
Total	2,080			2,080

(1) There is no expiration date for the program.

Item 3.Defaults Upon Senior Securities.

None.

Item 4.Mine Safety Disclosures.

Not Applicable.

Item 5.Other Information.

None.

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Item 6.Exhibits.

Exhibit No.	Description of Exhibit
10.1*	Employment Agreement between Viacom Inc. and Scott Mills, dated as of October 1, 2014.
31.1*	Certification of the Chief Executive Officer of Viacom Inc. pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Chief Financial Officer of Viacom Inc. pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Chief Executive Officer of Viacom Inc. furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Chief Financial Officer of Viacom Inc. furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	VIACOM INC.
Date: February 9, 2016	By:	/s/    WADE DAVIS
		Wade Davis
		Executive Vice President, Chief Financial Officer
Date: February 9, 2016	By:	/s/    KATHERINE GILL-CHAREST
		Katherine Gill-Charest
		Senior Vice President, Controller (Chief Accounting Officer)

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EX-10.1

Exhibit 10.1

October 1, 2014

Scott Mills

c/o Viacom Inc.

1515 Broadway

New York, NY 10036

Dear Mr. Mills:

Viacom Inc. (the “Company”) agrees to employ you, and you accept such employment, on the terms and conditions set forth in this letter agreement (“Agreement”). For purposes of this Agreement, “Viacom” shall mean Viacom Inc. and its subsidiaries.

1.    Contract Period. The term of your employment under this Agreement shall begin on October 1, 2014 (the “Effective Date”) and, unless terminated earlier as set forth herein, shall continue through and including September 30, 2018.  The period from the Effective Date through September 30, 2018 is referred to as the “Contract Period”, even if your employment terminates earlier for any reason.

2.    Duties. You shall be Executive Vice President, Human Resources and Administration and shall devote your entire business time, attention and energies to the business of the Company during your employment with the Company. You shall be responsible for all human resources, security and facilities affairs of the Company.

3.    Compensation.

(a)    Salary.  The Company shall pay you base salary (as may be increased, “Salary”) at a rate of One Million Three Hundred Fifty Thousand Dollars ($1,350,000) per year for all of your services as an employee. Your Salary shall be subject to merit reviews, on or about an annual basis, while actively employed during the Contract Period and may, at that time, be increased but not decreased. Your Salary, less deductions and income and payroll tax withholding as may be required under applicable law, shall be payable in accordance with the Company’s ordinary payroll policy, but no less frequently than monthly.

(b)    Bonus.  You also shall be eligible to earn a bonus (“Bonus”) or a Pro-Rated Bonus (as defined in paragraph 19(e)(ii)), as applicable, determined as set forth below and in paragraph 19(e)(ii).

(i) Your Bonus for each Company fiscal year, regardless of whether such fiscal year is a 12-month period or a shorter period of time, shall be determined in accordance with the Viacom Inc. Senior Executive Short-Term Incentive Plan, as applicable, as it may be amended from time to time (the “STIP”).

(ii) Your target Bonus for each Company fiscal year during the Contract Period shall be Two Million Dollars ($2,000,000) (your “Target Bonus”) and shall be adjusted based on the Company’s performance (the “Company Performance Factor”) and your individual performance (the “Individual Performance Factor”), in each case as determined by the Company and as further provided in the STIP.

(c)    Long-Term Incentive Compensation. During your employment under this Agreement, you shall be eligible to participate in the Viacom Inc. 2006 Long-Term Management Incentive Plan, or any successor plan, at a level appropriate to your position and individual performance as determined by

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October 1, 2014

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the Viacom Inc. Board of Directors (the "Board") or a committee of the Board, in its discretion based on a target value of One Million Six Hundred Fifty Thousand Dollars ($1,650,000).

(d)    Compensation During Short-Term Disability. Your compensation for any period that you are absent due to a short-term disability (“STD”) and are receiving compensation under a Viacom STD plan shall be determined in accordance with the terms of such STD plan. The compensation provided to you under the applicable STD plan shall be in lieu of the Salary provided under this Agreement. Your participation in any other Viacom benefit plans or programs shall be governed by the terms of the applicable plan or program documents, award agreements and certificates.

4.    Benefits.

(a)    General Benefits. During your employment under this Agreement, you shall be eligible to participate in any vacation programs, medical and dental plans and life insurance plans, STD and long-term disability (“LTD”) plans, retirement and other employee benefit plans the Company may have, establish or maintain from time to time and for which you qualify pursuant to the terms of the applicable plan.

(b)    Life Insurance. The Company shall provide you with no less than Five Million Dollars ($5,000,000) of life insurance coverage during the Contract Period.

5.    Business Expenses. During your employment under this Agreement, the Company shall reimburse you for such reasonable travel and other expenses, incurred in the performance of your duties in accordance with the Company’s policies, as are customarily reimbursed to Company executives at comparable levels.

6.    Non-Competition and Non-Solicitation.

(a)    Non-Competition.

(i) Your employment with the Company is on an exclusive and full-time basis, and while you are employed by the Company, you shall not engage in any other business activity which is in conflict with your duties and obligations (including your commitment of time) to the Company. During the Non-Competition Period, you shall not directly or indirectly engage in or participate as an owner, partner, holder or beneficiary of stock, stock options or other equity interest, officer, employee, director, manager, partner or agent of, or consultant for, any business competitive with any business of Viacom without the prior written consent of the Company. This provision shall not limit your right to own and have options or other rights to purchase not more than one percent (1%) of any of the debt or equity securities of any business organization that is then filing reports with the Securities and Exchange Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, unless such ownership constitutes a significant portion of your net worth.

(ii) The “Non-Competition Period” begins on the Effective Date and ends on the last day of the Contract Period, provided that:

1. If the Company terminates your employment without Cause or if you validly resign for Good Reason before the end of the Contract Period,

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then the Non-Competition Period shall end on the earlier of (i) the end of the period in which you are receiving payments pursuant to paragraph 11(c)(i) or (ii) the effective date of your waiver in writing of any right to receive or continue to receive compensation and benefits under paragraph 11. You shall be deemed to have irrevocably provided such waiver if you accept competing employment.

2. If the Company terminates your employment for Cause or you resign other than for Good Reason, the Non-Competition Period shall end on the earlier of (i) the last day of the Contract Period or (ii) eighteen (18) months after such termination or resignation.

(b)    Non-Solicitation.

(i) During the Non-Solicitation Period, you shall not directly or indirectly engage or attempt to engage in any of the following acts:

1. Employ or solicit the employment of any person who is then, or has been within six (6) months prior thereto, an employee of Viacom; or

2. Interfere with, disturb or interrupt the relationships (whether or not such relationships have been reduced to formal contracts) of Viacom with any customer, supplier, independent contractor, consultant, joint venture or other business partner (to the extent each of the limitations in this paragraph 6(b)(i)(2) is permitted by applicable law).

(ii) The “Non-Solicitation Period” begins on the Effective Date and ends on the last day of the Contract Period, or, if longer, eighteen (18) months after the Company terminates your employment for Cause or you resign other than for Good Reason.

(c)    Severability. If any court determines that any portion of this Section 6 is invalid or unenforceable, the remainder of this Section 6 shall not thereby be affected and shall be given full effect without regard to the invalid provisions. If any court construes any of the provisions of this Section 6, or any part thereof, to be unreasonable because of the duration or scope of such provision, such court shall have the power to reduce the duration or scope of such provision and to enforce such provision as so reduced.

7.    Confidentiality and Other Obligations.

(a)    Confidential Information. You shall not use for any purpose or disclose to any third party any information relating to Viacom, Viacom’s clients or other parties with which Viacom has a relationship, or that may provide Viacom with a competitive advantage (“Confidential Information”), other than (i) in the performance of your duties under this Agreement consistent with the Company’s or Viacom's policies or (ii) as may otherwise be required by law or legal process. Confidential Information shall include, without limitation, trade secrets; inventions (whether or not patentable); technology and business processes; business, product or marketing plans; negotiating strategies; sales and other forecasts; financial information; client lists or other intellectual property; information relating to compensation and benefits; public information that becomes proprietary as a result of Viacom’s compilation of that information for use in its business; documents (including any electronic record,

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videotapes or audiotapes) and oral communications incorporating Confidential Information. You shall also comply with any and all confidentiality obligations of Viacom to a third party of which you are aware, whether arising under a written agreement or otherwise. Information shall not be deemed Confidential Information if it is or becomes generally available to the public other than as a result of an unauthorized disclosure or action by you or at your direction.

(b)    Interviews, Speeches or Writings About Viacom. Except in the performance of your duties under this Agreement consistent with Viacom’s policies, you shall obtain the express authorization of the Company before (i) giving any speeches or interviews or (ii) preparing or assisting any person or entity in the preparation of any books, articles, radio broadcasts, electronic communications, television or motion picture productions or other creations, in either case concerning Viacom or any of its respective businesses, officers, directors, agents, employees, suppliers or customers.

(c)    Non-Disparagement. You shall not, directly or indirectly, in any communications with any reporter, author, producer or any similar person or entity, the press or other media, or any customer, client or supplier of Viacom, criticize, ridicule or make any statement which is negative, disparages or is derogatory of Viacom or any of its directors or senior officers.

(d)    Scope and Duration. The provisions of paragraph 7(a) shall be in effect during the Contract Period and at all times thereafter. The provisions of paragraphs 7(b) and 7(c) shall be in effect during the Contract Period and for one (1) year thereafter and such provisions shall apply to all formats and platforms now known or hereafter developed, whether written, printed, oral or electronic, including, without limitation, e-mails, “blogs”, internet sites, chat or news rooms, podcasts or any online forum.

8.    Viacom Property.

(a)    Viacom Ownership.

(i) The results and proceeds of your services to the Company, whether or not created during the Contract Period, including, without limitation, any works of authorship resulting from your services and any works in progress resulting from such services, shall be works-made-for-hire and Viacom shall be deemed the sole owner throughout the universe of any and all rights of every nature in such works, with the right to use, license or dispose of the works in perpetuity in any manner Viacom determines in its sole discretion without any further payment to you, whether such rights and means of use are now known or hereafter defined or discovered.

(ii) If, for any reason, any of the results and proceeds of your services to the Company are not legally deemed a work-made-for-hire and/or there are any rights in such results and proceeds which do not accrue to Viacom under this paragraph 8(a), then you hereby irrevocably assign any and all of your right, title and interest thereto, including, without limitation, any and all copyrights, patents, trade secrets, trademarks and/or other rights of every nature in the work, and Viacom shall have the sole right to use, license or dispose of the work in perpetuity throughout the universe in any manner Viacom determines in its sole discretion without any further payment to you, whether such rights and means of use are now known or hereafter defined or discovered.

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(iii) Upon request by the Company, whether or not during the Contract Period, you shall do any and all things which the Company may deem useful or desirable to establish or document Viacom’srights in the results and proceeds of your services to the Company, including, without limitation, the execution of appropriate copyright, trademark and/or patent applications, assignments or similar documents. You hereby irrevocably designate the General Counsel, Secretary or any Assistant Secretary of Viacom Inc. as your attorney-in-fact with the power to take such action and execute such documents on your behalf. To the extent you have any rights in such results and proceeds that cannot be assigned as described above, you unconditionally and irrevocably waive the enforcement of such rights.

(iv) The provisions of this paragraph 8(a) do not limit, restrict, or constitute a waiver by Viacom of any ownership rights to which Viacom may be entitled by operation of law by virtue of being your employer.

(b)    Return of Property. All documents, data, recordings, or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for you and utilized by you in the course of your employment with the Company shall remain the exclusive property of Viacom and shall remain in Viacom’s exclusive possession at the conclusion of your employment.

9.    Legal Matters.

(a)    Communication. Except as required by law or legal process or at the request of the Company, you shall not communicate with anyone (other than your attorneys who agree to keep such matters confidential), except to the extent necessary in the performance of your duties under this Agreement in accordance with Viacom Inc.’s policies, with respect to the facts or subject matter of any claim, litigation, regulatory or administrative proceeding directly or indirectly involving Viacom (“Viacom Legal Matter”) without obtaining the prior consent of Viacom Inc. or its counsel.

(b)    Cooperation. You agree to cooperate with Viacom and its attorneys in connection with any Viacom Legal Matter. Your cooperation shall include, without limitation, providing assistance to and meeting with Viacom’s counsel, experts or consultants, and providing truthful testimony in pretrial and trial or hearing proceedings. In the event that your cooperation is requested after the termination of your employment, Viacomshall (i) seek to minimize interruptions to your schedule to the extent consistent with its interests in the matter; and (ii) reimburse you for all reasonable and appropriate out-of-pocket expenses actually incurred by you in connection with such cooperation upon reasonable substantiation of such expenses.

(c)    Testimony. Except as required by law or legal process or at the request of Viacom Inc., you shall not testify in any lawsuit or other proceeding which directly or indirectly involves Viacom, or which is reasonably likely to create the impression that such testimony is endorsed or approved by Viacom.

(d)    Notice to Viacom. If you are requested or if you receive legal process requiring you to provide testimony, information or documents (including electronic documents) in any Viacom Legal Matter or that otherwise relates, directly or indirectly, to Viacom or any of its officers, directors, employees or affiliates, you shall give prompt notice of such event to Viacom Inc.’s General Counsel and you shall follow any lawful direction of Viacom Inc.’s General Counsel or his/her designee with respect to your response to such request or legal process.

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(e)    Adverse Party. The provisions of this paragraph 9 shall not apply to any litigation or other proceeding in which you are a party adverse to Viacom; provided, however, that Viacom expressly reserves its rights under paragraph 7 and its attorney-client and other privileges and immunities, including, without limitation, with respect to its documents and Confidential Information, except if expressly waived in writing by Viacom Inc.’s General Counsel or his/her designee.

(f)    Duration. The provisions of this paragraph 9 shall apply during the Contract Period and at all times thereafter, and shall survive the termination of your employment with the Company, with respect to any Viacom Legal Matter arising out of or relating to the business in which you were engaged during your employment with the Company. As to all other Viacom Legal Matters, the provisions of this paragraph 9 shall apply during the Contract Period and for one year thereafter or, if longer, during the pendency of any Viacom Legal Matter which was commenced, or which Viacom received notice of, during such period.

10.    Termination for Cause.

(a)    Termination Payments. The Company may terminate your employment under this Agreement for Cause and thereafter shall have no further obligations to you under this Agreement or otherwise, except for any earned but unpaid Salary through and including the date of termination of employment and any other amounts or benefits required to be paid or provided by law or under any plan of the Company (the “Accrued Compensation and Benefits”). Without limiting the generality of the preceding sentence, upon termination of your employment for Cause, you shall have no further right to any Bonus or to exercise or redeem any stock options or other equity compensation.

(b)    Cause Definition. “Cause” shall mean: (i) conduct constituting embezzlement, material misappropriation or fraud, whether or not related to your employment with the Company; (ii) conduct constituting a felony, whether or not related to your employment with the Company; (iii) conduct constituting a financial crime, material act of dishonesty or material unethical business conduct, involving Viacom; (iv) willful unauthorized disclosure or use of Confidential Information; (v) the failure to substantially obey a material lawful directive that is appropriate to your position from a superior in your reporting line or the Board; (vi) your material breach of any material obligation under this Agreement; (vii) the failure or refusal to substantially perform your material obligations under this Agreement (other than any such failure or refusal resulting from your STD or LTD); (viii) the willful failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, whether or not related to employment with the Company, after being instructed by Viacom to cooperate; (ix) the willful destruction of or willful failure to preserve documents or other material known to be relevant to any investigation referred to in subparagraph (viii) above; or (x) the willful inducement of others to engage in the conduct described in subparagraphs (i) – (ix), including, without limitation, with regard to subparagraph (vi), obligations of others to Viacom.

(c)    Notice/Cure. The Company shall give you written notice prior to terminating your employment for Cause or, if no cure period is applicable, contemporaneous with termination of your employment for Cause, setting forth in reasonable detail the nature of any alleged failure, breach or refusal in reasonable detail and the conduct required to cure such breach, failure or refusal. Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, you shall have ten (10) business days from the giving of such notice within which to cure; provided, however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give you notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination of your employment without notice and with immediate effect.

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11.    Resignation for Good Reason and Termination Without Cause.

(a)    Resignation for Good Reason.

(i) You may resign for Good Reason at any time that you are actively employed during the Contract Period by written notice to the Company no more than thirty (30) days after the occurrence of the event constituting Good Reason. Such notice shall state the grounds for such Good Reason resignation and an effective date no earlier than thirty (30) business days after the date it is given. The Company shall have thirty (30) business days from the giving of such notice within which to cure and, in the event of such cure, your notice shall be of no further force or effect.

(ii) “Good Reason” shall mean without your consent (other than in connection with the termination or suspension of your employment or duties for Cause or in connection with your death or LTD): (i) the assignment to you of duties or responsibilities substantially inconsistent with your position(s) or duties; (ii) the withdrawal of material portions of your duties; or (iii) the material breach by the Company of any material obligation under this Agreement.

(b)    Termination Without Cause. The Company may terminate your employment under this Agreement without Cause at any time during the Contract Period by written notice to you.

(c)    Termination Payments/Benefits. In the event that your employment terminates under paragraph 11(a) or (b), you shall thereafter receive the compensation and benefits described below and the following shall apply:

(i) The Company shall continue to pay your Salary (at the rate in effect on the date of termination) at the same time and in the same manner as if you had not terminated employment for the longer of one (1) year or until the end of the Contract Period;

(ii) You shall be eligible to receive a Bonus or Pro-Rated Bonus, as applicable, for each Company fiscal year or portion thereof during the Contract Period, calculated as provided in paragraph 19(e)(iii), provided that the total severance payment you receive pursuant to paragraphs 11(c)(i) and (ii) shall in no event exceed two times the sum of your Salary and Target Bonus in the year in which such termination occurs;

(iii) Provided you validly elect continuation of your medical and dental coverage under Section 4980B(f) of the Internal Revenue Code of 1986 (the “Code”) (relating to coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”)), your coverage and participation under the Company’s medical and dental benefit plans and programs in which you were participating immediately prior to your termination of employment pursuant to this paragraph 11, shall continue at no cost to you (except as set forth below) until the earlier of (i) the end of the Contract Period, but in no event less than twelve (12) months after the termination of your employment, or (ii) the date on which you become eligible for medical and/or dental coverage from another employer; provided, that, during the period that the Company provides you with this coverage, an

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amount equal to the total applicable COBRA cost (or such other amounts as may be required by law) will be included in your income for tax purposes and the Company may withhold taxes from your termination payments for this purpose; and provided, further, that you may elect to continue your medical and dental coverage under COBRA at your own expense for the balance, if any, of the period required by law;

(iv) The Company shall continue to provide you with $5 million life insurance coverage, at no premium cost to you (unless you had no coverage at the time of termination), until the end of the Contract Period or, if longer, the end of the period in which you are receiving payments pursuant to paragraph 11(c)(i), in accordance with the Company’s then-current policy, as may be amended from time to time. Such coverage shall end in the event you are eligible to obtain life insurance coverage from another employer;

(v) All stock options granted to you under any Viacom Inc. long-term incentive plan that have not vested as of the date of your termination of employment, but that would have vested on or before the end of the Contract Period, shall become fully vested on the date of termination;

(vi) All restricted share units granted to you under any Viacom Inc. long-term incentive plan that have not vested as of the date of your termination of employment, but that would have vested on or before the end of the Contract Period, shall become fully vested on the date of termination;

(vii) There shall be no acceleration of the vesting of any equity or long-term incentive awards granted to you under any Viacom Inc. long-term incentive plan, unless otherwise provided herein or under the terms of the applicable long-term incentive plan; and

(viii) The Company shall pay or continue to provide, as applicable, the Accrued Compensation and Benefits.

(d)    Release. Your entitlement to the payments and benefits described in this paragraph 11 is conditioned on your execution and delivery to the Company, within sixty (60) days after your termination of employment (the “Release Deadline”), of a release in substantially the form appended hereto as Appendix A that remains in effect and becomes irrevocable after the expiration of any statutory period in which you are permitted to revoke a release (the “Release”). If you fail to execute and deliver the Release by the Release Deadline, or if you thereafter effectively revoke the Release, the Company shall be under no obligation to make any further payments or provide any further benefits to you and any payments and benefits previously provided to you pursuant to this paragraph 11 shall not have been earned. In such event, you shall promptly repay the Company any payments made and the Company’s direct cost for any benefits provided to you pursuant to this paragraph 11. The limitations of this paragraph shall not apply to the Accrued Compensation and Benefits.

(e)    Offset. The amount of payments provided in paragraph 11 in respect of the period that begins twelve (12) months after the termination of your employment shall be reduced by any compensation for services earned by you (including as an independent consultant or independent contractor) from any source in respect of the period that begins twelve (12) months after the termination of your employment and ends when the Company is no longer required to make payments pursuant to

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paragraph 11 (the “Offset Period”), including, without limitation, salary, sign-on or annual bonus, consulting fees, commission payments and any amounts the payment of which is deferred at your election, or with your consent, until after the expiration of the Offset Period; provided that, if the Company in its reasonable discretion determines that any grant of long-term compensation is made in substitution of the aforementioned payments, such payments shall be further reduced by the value on the date of grant, as reasonably determined by the Company, of such long-term compensation you receive. You agree to promptly notify the Company of any arrangements during the Offset Period in which you earn compensation for services and to cooperate fully with the Company in determining the amount of any such reduction.

12.    Resignation in Breach of the Agreement. If you resign prior to the expiration of the Contract Period other than for Good Reason, such resignation is a material breach of this Agreement and, without limitation of other rights or remedies available to the Company, the Company shall have no further obligations to you under this Agreement or otherwise, except to make termination payments provided in paragraph 10(a).

13.    Termination Due to Death.

(a)    Death While Employed. In the event of your death prior to the end of the Contract Period while actively employed with the Company, this Agreement shall automatically terminate. Thereafter, your designated beneficiary (or, if there is no such beneficiary, your estate) shall receive (i) any Accrued Compensation and Benefits as of the date of your death and (ii) for the year in which death occurs, any Bonus or Pro-Rated Bonus, as applicable, which you would have been eligible to receive, calculated in accordance with paragraph 19(e)(iii). In no event shall a distribution be made pursuant to clause (i) in the preceding sentence later than the 60^th day following your death and a distribution pursuant to clause (ii) in the preceding sentence shall be made at the same time and in the same manner as if you were still actively employed with the Company.

(b)    Death After the End of Employment. In the event of your death while you are entitled to receive compensation or benefits under paragraphs 11 or 15, in lieu of such payments your designated beneficiary (or, if there is no such beneficiary, your estate) shall receive, to the extent not previously paid to you, (i) continuation of Salary pursuant to the applicable paragraph through the date of death; (ii) if you were entitled to receive compensation or benefits under paragraph 11, for the year in which death occurs, any Bonus or Pro-Rated Bonus, as applicable, for the year in which death occurs, payable under such paragraph, calculated in accordance with paragraph 19(e)(iii); and (iii) any Accrued Compensation and Benefits. In no event shall a distribution be made pursuant to clauses (i) and (iii) in the preceding sentence later than the 60^th day following your death and a distribution pursuant to clause (ii) in the preceding sentence shall be made at the same time and in the same manner as if you were still actively employed with the Company.

14.    Long-Term Disability. In the event you are absent due to a LTD and you are receiving compensation under a Viacom LTD plan, then, effective on the date you begin receiving compensation under such plan, (i) this Agreement shall terminate without any further action required by the Company, (ii) you shall be considered an “at-will” employee of the Company, and (iii) you shall have no guarantee of specific future employment nor continuing employment generally when your receipt of compensation under a Viacom LTD plan ends, except as required by applicable law. In the event of such termination of this Agreement, you shall receive (i) any Accrued Compensation and Benefits and (ii) for the year in which such termination occurs, any Bonus or Pro-Rated Bonus, as applicable, which you would have been entitled to receive, calculated in accordance with paragraph 19(e)(iii). Except as set forth in the previous sentence, the compensation provided to you under the applicable LTD plan shall be in lieu of

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any compensation from the Company (including, but not limited to, the Salary provided under this Agreement or otherwise). Your participation in any other Viacom benefit plans or programs shall be governed by the terms of the applicable plan or program documents, award agreements and certificates.

15.    Non-Renewal. If the Company does not extend or renew this Agreement at the end of the Contract Period and you have not entered into a new contractual relationship with the Company or Viacom, your continuing employment, if any, with the Company or Viacom shall be “at-will” and may be terminated at any time by either party. If the Company or Viacom terminates your employment during the twelve (12) month period commencing with the last day of the Contract Period while you are an employee at-will, the Company shall continue to pay your Salary (at the rate in effect on the date of termination) at the same time and in the same manner as if you had not terminated employment for the balance, if any, of such twelve (12) month period; provided, however, that (i) you shall not be entitled to such Salary continuation if the Company terminates your employment for reasons constituting Cause and (ii) any such Salary continuation shall be subject to offset as set forth in paragraph 11(e) above, without giving effect to the twelve (12) month period referenced therein.

16.    Severance Plan Adjustment. In the event that your employment with the Company terminates pursuant to paragraph 11 or 15, and, at the time of your termination of employment there is in effect a Viacom severance plan (a “Severance Plan”) for which you would have been eligible to participate but for your having entered into this Agreement or being a Specified Employee and which provides for severance compensation that is greater than the amounts to which you are entitled under paragraphs 11(c)(i) and 11(c)(ii) or paragraph 15, then the amounts, but not the time or form of payment, of your severance compensation under this Agreement shall automatically be adjusted to equal those that would have been provided to you under the Severance Plan. For the avoidance of doubt, any payment entitlement pursuant to this paragraph 16 is in lieu of, and not in addition to, any severance compensation to which you may otherwise be entitled under this Agreement. Notwithstanding any adjustment to the amount of your entitlements pursuant to this paragraph 16, all other provisions of this Agreement shall remain in effect, including, without limitation, paragraphs 6, 7, 8 and 9.

17.    Further Events on Termination of Employment.

(a)    Termination of Benefits. Except as otherwise expressly provided in this Agreement, your participation in all Viacom benefit plans and programs (including, without limitation, medical and dental coverage, life insurance coverage, vacation accrual, all retirement and the related excess plans, STD and LTD plans and accidental death and dismemberment and business travel and accident insurance and your rights with respect to any outstanding equity compensation awards) shall be governed by the terms of the applicable plan and program documents, award agreements and certificates.

(b)    Resignation from Official Positions. If your employment with the Company terminates for any reason, you shall be deemed to have resigned at that time from any and all officer or director positions that you may have held with the Company or Viacom and all board seats or other positions in other entities to which you have been designated by the Company or Viacom or which you have held on behalf of the Company or Viacom. If, for any reason, this paragraph 17(b) is deemed insufficient to effectuate such resignation, you hereby authorize the Secretary and any Assistant Secretary of Viacom Inc. to execute any documents or instruments which Viacom Inc. may deem necessary or desirable to effectuate such resignation or resignations, and to act as your attorney-in fact.

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18.    Survival; Remedies.

(a)    Survival. Your obligations under paragraphs 6, 7, 8 and 9 shall remain in full force and effect for the entire period provided therein notwithstanding the termination of your employment for any reason or the expiration of the Contract Period.

(b)    Modification of Terms. You and the Company acknowledge and agree that the restrictions and remedies contained in paragraphs 6, 7, 8 and 9 are reasonable and that it is your intention and the intention of the Company that such restrictions and remedies shall be enforceable to the fullest extent permissible by law. If a court of competent jurisdiction shall find that any such restriction or remedy is unenforceable, but would be enforceable if some part were deleted or modified, then such restriction or remedy shall apply with the deletion or modification necessary to make it enforceable and shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.

(c)    Injunctive Relief. The Company has entered into this Agreement in order to obtain the benefit of your unique skills, talent, and experience. You acknowledge and agree that any violation of paragraphs 6, 7, 8 and 9 shall result in irreparable damage to the Company, and, accordingly, the Company may obtain injunctive and other equitable relief for any breach or threatened breach of such paragraphs, in addition to any other remedies available to the Company. To the extent permitted by applicable law, you hereby waive any right to the posting of a bond in connection with any injunction or other equitable relief sought by the Company and you agree not to seek such relief in your opposition to any application for relief the Company shall make.

(d)    Other Remedies. In the event that you materially violate the provisions of paragraphs 6, 7, 8 or 9 at any time during the Non-Competition Period or any period in which the Company is making payments to you pursuant to this Agreement, (i) any outstanding stock options or other undistributed equity awards granted to you by the Company shall immediately be forfeited, whether vested or unvested; and (ii) the Company’s obligation to make any further payments or to provide benefits (other than Accrued Compensation and Benefits) to you pursuant to this Agreement shall terminate. The Company shall give you written notice prior to commencing any remedy under this paragraph 18(d) or, if no cure period is applicable, contemporaneous with such commencement, setting forth the nature of any alleged violation in reasonable detail and the conduct required to cure such violation. Except for a violation which, by its nature, cannot reasonably be expected to be cured, you shall have ten (10) business days from the giving of such notice within which to cure; provided, however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give you notice of such shorter period within which to cure as is reasonable under the circumstances, which may include commencement of a remedy without notice and with immediate effect. The remedies under this paragraph 18 are in addition to any other remedies the Company may have against you, including under this Agreement or any other agreement, under any equity or other incentive or compensation plan or under applicable law.

19.    General Provisions.

(a)    Deductions and Withholdings. In the event of the termination of your employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies that areotherwise payable to you and that do not constitute deferred compensation within the meaning of Section 409A of the Code, the regulations promulgated thereunder or any related guidance issued by the U.S. Treasury Department(“Section 409A”) all monies and the replacement value of any property you may owe to the Company at the time of

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or subsequent to the termination of your employment with the Company. The Company shall not make any such deduction from any amount that constitutes deferred compensation for purposes of Section 409A. To the extent any law requires an employee’s consent to the offset provided in this paragraph and permits such consent to be obtained in advance, this Agreement shall be deemed to provide the required consent. Except as otherwise expressly provided in this Agreement or in any Company benefit plan, all amounts payable under this Agreement shall be paid in accordance with the Company’s ordinary payroll practices less deductions and income and payroll tax withholding as may be required under applicable law. Any property (including shares of Viacom Inc. Class B Common Stock), benefits and perquisites provided to you under this Agreement, including, without limitation, COBRA payments made on your behalf, shall be taxable to you as provided by law.

(b)    Cash and Equity Awards Modifications. Notwithstanding any other provisions of this Agreement to the contrary, the Company reserves the right to modify or amend unilaterally the terms and conditions of your cash compensation, stock option awards or other equity awards, without first asking your consent, to the extent that the Company considers such modification or amendment necessary or advisable to comply with any law, regulation, ruling, judicial decision, accounting standard, regulatory guidance or other legal requirement (the “Legal Requirement”) applicable to such cash compensation, stock option awards or other equity awards, provided that, except where necessary to comply with law, such amendment does not have a material adverse effect on the value of such compensation award to you. In addition, the Company may, without your consent, amend or modify your cash compensation, stock option awards or other equity awards in any manner that the Company considers necessary or advisable to ensure that such cash compensation, stock option awards or other equity awards are not subject to United States federal income tax, state or local income tax or any equivalent taxes in territories outside the United States prior to payment, exercise, vesting or settlement, as applicable, or any tax, interest or penalties pursuant to Section 409A.

(c)     Section 409A Provisions.

(i) The Company may, without your consent, amend any provision of this Agreement to the extent that, in the reasonable judgment of the Company, such amendment is necessary or advisable to avoid the imposition on you of any tax, interest or penalties pursuant to Section 409A or otherwise to make this Agreement enforceable. Any such amendment shall maintain, to the maximum extent practicable, the original intent and economic benefit to you of the applicable provision.

(ii) It is the intention and understanding of the parties that all amounts and benefits to which you become entitled under this Agreement will be paid or provided to you pursuant to a fixed schedule within the meaning of Section 409A. Notwithstanding such intention and understanding, in the event that you are a specified employee as determined by Viacom Inc. (a “Specified Employee”) at the time of your Separation from Service (as defined below), then to the extent that any amount or benefit owed to you under this Agreement (x) constitutes an amount of deferred compensation for purposes of Section 409A and (y) is considered for purposes of Section 409A to be owed to you by virtue of your Separation from Service, then such amount or benefit shall not be paid or provided during the six (6) month period following the date of your Separation from Service and instead shall be paid or provided on the first day of the seventh month following your date of Separation from Service; provided, however, that such delay shall apply only to the extent that such payments and benefits, in the

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aggregate, exceed the lesser of an amount equal to (x) two (2) times your annualized compensation (as determined under the Code Section 409A regulations) and (y) two (2) times the applicable Code Section 401(a)(17) annual compensation limit for the year in which your termination occurs; provided, further, that any payments made during such six (6) month period shall first be made to cover all costs relating to medical, dental and life insurance coverage to which you are entitled under this Agreement and thereafter shall be made in respect of other amounts or benefits owed to you.

(iii) As used herein, “Separation from Service” shall mean either (i) the termination of your employment with the Company and its affiliates, provided that such termination of employment meets the requirements of a separation of service determined using the default provisions set forth in Treasury Regulation §1.409A-(1)(h) or the successor provision thereto or (ii) such other date that constitutes a separation from service with the Company and its affiliates meeting the requirements of the default provisions set forth in Treasury Regulation §1.409A-(1)(h) or the successor provision thereto. For purposes of this definition, "affiliate" means any corporation that is in the same controlled group of corporations (within the meaning of Code Section 414(b)) as the Company and any trade or business that is under common control with the Company (within the meaning of Code Section 414(c)), determined in accordance with the default provision set forth in Treasury Regulation §1.409A-(1)(h)(3).

(iv) If under any provision of this Agreement you become entitled to be paid Salary continuation, then each payment of Salary during the relevant continuation period shall be considered, and is hereby designated as, a separate payment for purposes of Section 409A (and consequently your entitlement to such Salary continuation shall not be considered an entitlement to a single payment of the aggregate amount to be paid during the relevant continuation period).

(d)    No Duplicative Payments. The payments and benefits provided in this Agreement in respect to the termination of employment and non-renewal of this Agreement are in lieu of any other salary, bonus or benefits payable by the Company, including, without limitation, any severance or income continuation or protection under any Viacom plan that may now or hereafter exist. All such payments and benefits shall constitute liquidated damages, paid in full and final settlement of all obligations of Viacom to you under this Agreement.

(e)    Payment of Bonus Compensation.

(i) The Bonus for any Company fiscal year under this Agreement shall be paid by March 15^th of the following year.

(ii) Except as otherwise expressly provided in this Agreement, your Bonus shall be prorated (A) to apply only to that part of the Company’s fiscal year which falls within the Contract Period and (B) to the extent the Company's fiscal year is less than a 12-month fiscal year (a “Pro-Rated Bonus”).  Following expiration of the Contract Period, you shall receive a Pro-Rated Bonus for the period of the Company’s fiscal year which falls within the Contract Period only (A) in the event that the Company terminates your employment without Cause prior to the

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date on which employees of the Company become entitled to Bonus under the STIP, (B) as provided in paragraph 11(c)(ii) or (C) as provided in the STIP.

(iii) Any Bonus or Pro-Rated Bonus payable pursuant to paragraphs 11, 13 or 14 shall be paid at the lesser of (X) your Target Bonus amount or (Y) your Target Bonus amount, adjusted based on the Company Performance Factor for the relevant year.

(f)    Parachute Payment Adjustments. Notwithstanding anything herein to the contrary, in the event that you receive any payments or distributions, whether payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, that constitute “parachute payments” within the meaning of Section 280G of the Code, and the net after‑tax amount of the parachute payment is less than the net after-tax amount if the aggregate payment to be made to you were three times your “base amount” (as defined in Section 280G(b)(3) of the Code) less $1.00, then the aggregate of the amounts constituting the parachute payment shall be reduced to an amount that shall equal three times your base amount, less $1.00. The determinations to be made with respect to this paragraph 19(f) shall be made by a certified public accounting firm designated by the Company and reasonably acceptable to you.

(g)    Adjustments to Bonuses and Long-Term Incentive Compensation. Notwithstanding anything herein to the contrary, the Company shall be entitled to adjust the amount of any Bonus or any award of long-term incentive compensation if the financial statements of Viacom or the business unit on which the calculation or determination of the Bonus or award of long-term incentive compensation were based are subsequently restated and, in the judgment of the Company, the financial statements as so restated would have resulted in a smaller Bonus or long-term incentive compensation award if such information had been known at the time the Bonus or award had originally been calculated or determined. In addition, in the event of such a restatement: (i) the Company may require you, and you agree, to repay to the Company the amount by which the Bonus as originally calculated or determined exceeds the Bonus as adjusted pursuant to the preceding sentence; and (ii) the Company may cancel, without any payment therefor, the portion of any award of long-term incentive compensation that exceeds the award adjusted pursuant to the preceding sentence (or, if such portion of an award cannot be canceled because (x) in the case of stock options or other similar awards, you have previously exercised it, the Company may require you, and you agree, to repay to the Company the amount, net of any exercise price, that you realized upon exercise or (y) in the case of restricted share units or other similar awards, shares of Class B Common Stock were delivered to you in settlement of such award, the Company may require you, and you agree to return the shares of Class B Common Stock, or if such shares were sold by you, return any proceeds realized on the sale of such shares).

(h)    Mediation. Prior to the commencement of any legal proceeding relating to your employment, you and the Company agree to attempt to mediate the dispute using a professional mediator from JAMS, The Resolution Experts (“JAMS”) or the International Institute for Conflict Prevention and Resolution (“CPR”). Within a period of 30 days after a written request for mediation by either you or the Company, the parties agree to convene with the mediator, for at least one session to attempt to resolve the matter. In no event will mediation delay commencement of any legal proceeding for more than 30 days absent agreement of the parties or prevent a bona fide application by either party to a court of competent jurisdiction for emergency relief. The fees of the mediator and of the JAMS or CPR, as the case may be, shall be borne by the Company.

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20.    Additional Representations and Acknowledgments.

(a)    No Acceptance of Payments. You represent that you have not accepted or given nor shall you accept or give, directly or indirectly, any money, services or other valuable consideration from or to anyone other than the Company or Viacom for the inclusion of any matter as part of any film, television, internet or other programming produced, distributed and/or developed by Viacom.

(b)    Viacom Policies. You recognize that the Company is an equal opportunity employer. You agree that you shall comply with the Company’s employment practices and policies, as they may be amended from time to time, and with all applicable federal, state and local laws prohibiting discrimination on any basis. In addition, you agree that you shall comply with the Viacom Business Practices Statement and Viacom’s other policies and procedures, as they may be amended from time to time, and provide the certifications and conflict of interest disclosures required by the Viacom Business Practices Statement.

21.    Notices. Notices under this Agreement must be given in writing, by personal delivery, regular mail or receipted email, at the parties’ respective addresses shown on this Agreement (or any other address designated in writing by either party), with a copy, in the case of the Company, to the attention of Viacom Inc.’s General Counsel. Any notice given by regular mail shall be deemed to have been given three (3) days following such mailing.

22.    Binding Effect; Assignment. This Agreement and rights and obligations of the Company hereunder shall not be assigned by the Company, provided that the Company may assign this Agreement to any subsidiary or affiliated company of or any successor in interest to the Company provided that such assignee assumes all of the obligations of the Company and Viacom hereunder. This Agreement is for the performance of personal services by you and may not be assigned by you, except that the rights specified in Section 13 shall pass upon your death to your designated beneficiary (or, if there is no such beneficiary, your estate).

23.    GOVERNING LAW AND FORUM. You acknowledge that this agreement has been executed, in whole or in part, in New York. Accordingly, you agree that this Agreement and all matters or issues arising out of or relating to your employment with the Company shall be governed by the laws of the State of New York applicable to contracts entered into and performed entirely therein. Any action to enforce this Agreement shall be brought solely in the state or federal courts located in the City of New York, Borough of Manhattan.

24.    No Implied Contract. Nothing contained in this Agreement shall be construed to impose any obligation on the Company or you to renew this Agreement or any portion hereof or on the Company to establish or maintain any benefit, welfare or compensation plan or program or to prevent the modification or termination of any benefit, welfare or compensation plan or program or any action or inaction with respect to any such benefit, welfare or compensation plan or program. The parties intend to be bound only upon full execution of a written agreement by both parties and no negotiation, exchange of draft, partial performance or tender of an agreement (including any extension or renewal of this Agreement) executed by one party shall be deemed to imply an agreement or the renewal or extension of any agreement relating to your employment with the Company. Neither the continuation of employment nor any other conduct shall be deemed to imply a continuing agreement upon the expiration of the Contract Period.

25.    Severability. In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, shall be inoperative.

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26.    Entire Understanding. This Agreement contains the entire understanding of the parties hereto relating to the subject matter contained in this Agreement, and, except as otherwise provided herein, can be modified only by a writing signed by both parties.

27.    Supersedes Prior Agreements. With respect to the period covered by the Contract Period, this Agreement supersedes and cancels all prior agreements relating to your employment with Viacom.

Please confirm your understanding of the Agreement by signing and returning all four (4) copies of this Agreement. This document shall constitute a binding agreement between us only after it also has been executed by the Company and a fully executed copy has been returned to you.

		Very truly yours,
		VIACOM INC.
		By:	/s/ Thomas E. Dooley
			Thomas E. Dooley
			Chief Operating Officer
ACCEPTED AND AGREED:
/s/ Scott Mills
Scott Mills
Dated:	10/2/14

Appendix A

Mr. Scott Mills

Viacom Inc.

1515 Broadway

New York, NY 10036

This General Release of all Claims (this “Agreement”) is entered into by Scott Mills (the “Executive”) and Viacom Inc. (the “Company”), effective as of _____________________.

In consideration of the promises set forth in the letter agreement between the Executive and the Company, dated October 1, 2014 (the “Employment Agreement”), the Executive and the Company agree as follows:

1.    Return of Property. All Company files, access keys and codes, desk keys, ID badges, computers, records, manuals, electronic devices, computer programs, papers, electronically stored information or documents, telephones and credit cards, and any other property of the Company in the Executive’s possession must be returned no later than the date of the Executive’s termination from the Company.

2.    General Release and Waiver of Claims.

(a)    Release. In consideration of the payments and benefits provided to the Executive under the Employment Agreement and after consultation with counsel, the Executive and each of the Executive’s respective heirs, executors, administrators, representatives, agents, insurers, successors and assigns (collectively, the “Releasors”) hereby irrevocably and unconditionally release and forever discharge the Company, its subsidiaries and affiliates and each of their respective officers, employees, directors, shareholders and agents (“Releasees”) from any and all claims, actions, causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character (collectively, “Claims”), including, without limitation, any Claims under any federal, state, local or foreign law, that the Releasors may have, or in the future may possess, arising out of (i) the Executive’s employment relationship with and service as an employee, officer or director of the Company, Viacom (as defined in the Employment Agreement) or any subsidiaries or affiliated companies and the termination of such relationship or service, and (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or prior to the date hereof and relates to your employment with Viacom; provided, however, that the Executive does not release, discharge or waive any rights to (i) payments and benefits provided under the Employment Agreement that are contingent upon the execution by the Executive of this Agreement or otherwise expressly survive termination thereof and (ii) any indemnification rights the Executive may have in accordance with the Company’s governance instruments or under any director and officer liability insurance maintained by the Company with respect to liabilities arising as a result of the Executive’s service as an officer and employee of the Company.

(b)    Specific Release of ADEA Claims. In further consideration of the payments and benefits provided to the Executive under the Employment Agreement, the Releasors hereby unconditionally release and forever discharge the Releasees from any and all Claims that the Releasors may have as of the date the Executive signs this Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as amended, including the Older Workers Benefit Protection Act of 1990 (“OWBPA”), and the applicable rules and regulations promulgated thereunder (“ADEA”).  By signing this Agreement, the Executive hereby acknowledges and confirms the following:  (i) the Executive was advised by the Company in connection with his termination to consult with an attorney of his choice prior to signing this Agreement and to have such attorney explain to the Executive the terms of this Agreement,

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including, without limitation, the terms relating to the Executive’s release of claims arising under ADEA, and the Executive has in fact consulted with an attorney; (ii) the Executive was given a period of not fewer than 21 days to consider the terms of this Agreement and to consult with an attorney of his choosing with respect thereto; (iii) the Executive knowingly and voluntarily accepts the terms of this Agreement; and (iv) the Executive is providing this release and discharge only in exchange for consideration in addition to anything of value to which the Executive is already entitled.  The Executive also understands that he has seven (7) days following the date on which he signs this Agreement within which to revoke the release contained in this paragraph 2(b), by providing the Company a written notice of his revocation of the release and waiver contained in this paragraph 2(b); provided, however, that if the Executive exercises his right to revoke the release contained in this paragraph 2(b), the Executive shall not be entitled to any amounts paid to him under the termination provisions of the Employment Agreement and the Company may reclaim any such amounts paid to him and may terminate any benefits and payments that are subsequently due under the Employment Agreement, except as prohibited by the ADEA and OWBPA.

(c)    No Assignment. The Executive represents and warrants that he has not assigned any of the Claims being released under this Agreement. The Company may assign this Agreement, in whole or in part, to any affiliated company or subsidiary of, or any successor in interest to, the Company.

3.    Proceedings. The Executive has not filed, and agrees not to initiate or cause to be initiated on his behalf, any complaint, charge, claim or proceeding against the Releasees before any local, state or federal agency, court or other body relating to his employment or the termination of his employment, other than with respect to the obligations of the Company to the Executive under the Employment Agreement (each, individually, a “Proceeding”), and agrees not to participate voluntarily in any Proceeding. Notwithstanding the foregoing, the prohibitions in this paragraph 3 shall not apply to the Executive’s right to file a charge with the Equal Employment Opportunity Commission (“EEOC”) or similar local or state agency, or participate in an investigation conducted by such agency. The Executive waives any right he may have to benefit in any manner from any relief (whether monetary or otherwise) (i) arising out of any Proceeding and/or (ii) in connection with any claim pursued by any administrative agency, including but not limited to the EEOC, on the Executive’s behalf and, in the event the Executive is awarded money, compensation or benefits, the Executive shall immediately remit such award to the Company.

4.    Remedies. In the event the Executive initiates or voluntarily participates in any Proceeding in violation of this Agreement, or if he fails to abide by any of the terms of this Agreement or his post-termination obligations contained in the Employment Agreement, the Company may, in addition to any other remedies it may have, reclaim any amounts paid to him under the termination provisions of the Employment Agreement and terminate any benefits or payments that are subsequently due under the Employment Agreement, except as prohibited by the ADEA and OWBPA, without waiving the release granted herein.  The Executive acknowledges and agrees that the remedy at law available to the Company for breach of any of his post-termination obligations under the Employment Agreement or his obligations under paragraphs 2 and 3 herein would be inadequate and that damages flowing from such a breach may not readily be susceptible to being measured in monetary terms.  Accordingly, the Executive acknowledges, consents and agrees that, in addition to any other rights or remedies that the Company may have at law or in equity or as may otherwise be set forth in the Employment Agreement, the Company shall be entitled to seek a temporary restraining order or a preliminary or permanent injunction, or both, without bond or other security, restraining the Executive from breaching his post-termination obligations under the Employment Agreement or his obligations under paragraphs 2 and 3 herein.  Such injunctive relief in any court shall be available to the Company, in lieu of, or prior to or pending determination in, any arbitration proceeding.

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The Executive understands that by entering into this Agreement he shall be limiting the availability of certain remedies that he may have against the Company and limiting also his ability to pursue certain claims against the Company.

5.    Severability Clause. In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, shall be inoperative.

6.    Nonadmission. Nothing contained in this Agreement shall be deemed or construed as an admission of wrongdoing or liability on the part of the Company.

7.    GOVERNING LAW AND FORUM. The Executive acknowledges that this Agreement has been executed, in whole or in part, in New York. Accordingly, the Executive agrees that this Agreement and all matters or issues arising out of or relating to the Executive’s employment with the Company shall be governed by the laws of the State of New York applicable to contracts entered into and performed entirely therein. Any action to enforce this Agreement shall be brought solely in the state or federal courts located in the City of New York, Borough of Manhattan.

8.    Notices. Notices under this Agreement must be given in writing, by personal delivery, regular mail or receipted email, at the parties’ respective addresses shown on this Agreement (or any other address designated in writing by either party), with a copy, in the case of the Company, to the attention of Viacom Inc.’s General Counsel. Any notice given by regular mail shall be deemed to have been given three (3) days following such mailing.

THE EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE WILL.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

VIACOM INC.

By    _____________________________

Thomas E. Dooley

Chief Operating Officer

THE EXECUTIVE

_________________________________

Scott Mills

Dated:____________________________

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Philippe P. Dauman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Viacom Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 9, 2016

/s/ PHILIPPE P.DAUMAN

Executive Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Wade Davis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Viacom Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 9, 2016

/s/    WADE DAVIS

Executive Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Viacom Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Philippe P. Dauman, Executive Chairman, President and Chief Executive Officer of the Company, certify that to my knowledge:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ PHILIPPE P.DAUMAN

Philippe P. Dauman

February 9, 2016

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Report. A signed original of this written statement required by Section 906 has been provided to Viacom Inc. and will be retained by Viacom Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Viacom Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Wade Davis, Executive Vice President, Chief Financial Officer of the Company, certify that to my knowledge:

1. the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/    WADE DAVIS

Wade Davis

February 9, 2016

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Report. A signed original of this written statement required by Section 906 has been provided to Viacom Inc. and will be retained by Viacom Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document entity information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 29, 2016
Entity Information [Abstract]
Entity Registrant Name	Viacom Inc.
Entity Central Index Key	0001339947
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Common Class A
Entity Common Stock, Shares Outstanding		49,434,385
Common Class B
Entity Common Stock, Shares Outstanding		346,456,384

XML

CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 3,154	$ 3,344
Expenses:
Operating	1,593	1,623
Selling, general and administrative	667	731
Depreciation and amortization	55	55
Total expenses	2,315	2,409
Operating income	839	935
Interest expense, net	(155)	(160)
Equity in net earnings of investee companies	31	33
Other items, net	2	(18)
Earnings before provision for income taxes	717	790
Provision for income taxes	(256)	(277)
Net earnings (Viacom and noncontrolling interests)	461	513
Net earnings attributable to noncontrolling interests	(12)	(13)
Net earnings attributable to Viacom	$ 449	$ 500
Earnings Per Share [Abstract]
Basic earnings per share attributable to Viacom	$ 1.13	$ 1.22
Diluted earnings per share attributable to Viacom	$ 1.13	$ 1.20
Weighted average number of common shares outstanding:
Basic (shares)	396.6	410.6
Diluted (shares)	398.4	416.1
Dividends declared per share of Class A and Class B common stock	$ 0.4	$ 0.33

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings (Viacom and noncontrolling interests)	$ 461	$ 513
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(40)	(104)
Defined benefit pension plans	(5)	(20)
Cash flow hedges	(1)	0
Other comprehensive loss (Viacom and noncontrolling interests)	(46)	(124)
Comprehensive income	415	389
Less: Comprehensive income attributable to noncontrolling interest	9	11
Comprehensive income attributable to Viacom	$ 406	$ 378

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CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 327	$ 506
Receivables, net	3,012	2,807
Inventory, net	808	786
Prepaid and other assets	552	479
Total current assets	4,699	4,578
Property and equipment, net	903	947
Inventory, net	3,766	3,616
Goodwill	11,434	11,456
Intangibles, net	328	340
Other assets	1,232	1,206
Total assets	22,362	22,143
Current liabilities:
Accounts payable	289	506
Accrued expenses	618	748
Participants' share and residuals	913	860
Program obligations	638	703
Deferred revenue	459	481
Current portion of debt	1,073	18
Other liabilities	478	537
Total current liabilities	4,468	3,853
Noncurrent portion of debt	11,494	12,267
Participants' share and residuals	306	351
Program obligations	321	356
Deferred tax liabilities, net	448	150
Other liabilities	1,338	1,348
Redeemable noncontrolling interest	$ 231	$ 219
Commitments and contingencies (Note 6)
Viacom stockholders' equity:
Additional paid-in capital	$ 10,051	$ 10,017
Treasury stock, 400.1 and 398.0 common shares held in treasury, respectively	(20,825)	(20,725)
Retained earnings	15,049	14,780
Accumulated other comprehensive loss	(577)	(534)
Total Viacom stockholders' equity	3,698	3,538
Noncontrolling interests	58	61
Total equity	3,756	3,599
Total liabilities and equity	22,362	22,143
Common Class A
Viacom stockholders' equity:
Common stock	0	0
Common Class B
Viacom stockholders' equity:
Common stock	$ 0	$ 0

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CONSOLIDATED BALANCE SHEET (Parenthetical) (unaudited) - $ / shares shares in Millions	Dec. 31, 2015	Sep. 30, 2015
Treasury Stock (shares)	400.1	398.0
Common Class A
Common Stock, Par or Stated Value Per Share (in usd per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	375.0	375.0
Common Stock, Shares, Outstanding	49.5	50.1
Common Class B
Common Stock, Par or Stated Value Per Share (in usd per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	5,000.0	5,000.0
Common Stock, Shares, Outstanding	346.6	348.0

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
OPERATING ACTIVITIES
Net earnings (Viacom and noncontrolling interests)	$ 461	$ 513
Reconciling items:
Depreciation and amortization	55	55
Feature film and program amortization	1,028	1,027
Equity-based compensation	26	26
Equity in net earnings and distributions from investee companies	(29)	(29)
Deferred income taxes	299	232
Operating assets and liabilities, net of acquisitions:
Receivables	(188)	42
Inventory, program rights and participations	(1,292)	(1,448)
Accounts payable and other current liabilities	(481)	(421)
Other, net	(5)	59
Net cash provided by/(used in) operating activities	(126)	56
INVESTING ACTIVITIES
Acquisitions and investments, net	(30)	(1)
Capital expenditures	(26)	(34)
Net cash flow used in investing activities	(56)	(35)
FINANCING ACTIVITIES
Borrowings	0	990
Commercial paper	290	0
Purchase of treasury stock	(100)	(754)
Dividends paid	(159)	(137)
Excess tax benefits on equity-based compensation awards	0	35
Exercise of stock options	1	104
Other, net	(22)	(45)
Net cash flow provided by financing activities	10	193
Effect of exchange rate changes on cash and cash equivalents	(7)	(29)
Net change in cash and cash equivalents	(179)	185
Cash and cash equivalents at beginning of period	506	1,000
Cash and cash equivalents at end of period	$ 327	$ 1,185

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Description of Business and Basis of Presentation

3 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

Description of Business

Viacom is home to premier global media brands that create compelling television programs, motion pictures, short-form content, apps, games, consumer products, social media experiences and other entertainment content for audiences in 180 countries. Viacom operates through two reporting segments: Media Networks, which includes the Music & Entertainment Group, the Kids & Family Group and BET Networks, and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands. References in this document to “Viacom,” “Company,” “we,” “us” and “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise.

Unaudited Interim Financial Statements

The accompanying unaudited consolidated quarterly financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of our results of operations, financial position and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results expected for the fiscal year ending September 30, 2016 (“fiscal 2016”) or any future period. These financial statements should be read in conjunction with our Form 10-K for the year ended September 30, 2015, as filed with the SEC on November 12, 2015 (the “2015 Form 10-K”).

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates.

Recent Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01 - Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires the fair value measurement of investments in certain equity securities. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. All changes in measurement will be recognized in net income. The guidance will be effective for the first interim period of our 2019 fiscal year. Early adoption is not permitted, except for certain provisions relating to financial liabilities. We are currently evaluating the impact of the new standard.

In November 2015, the FASB issued ASU 2015-17 - Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires that all deferred taxes be classified as noncurrent in the balance sheet. The guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted on either a prospective or retrospective basis. In the quarter ended December 31, 2015, we adopted the new guidance on a retrospective basis. As a result, our $99 million net deferred tax liability in the Consolidated Balance Sheet as of September 30, 2015 is presented as a deferred tax asset of $51 million within Other assets and $150 million in Deferred tax liabilities, net.

In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers, a comprehensive revenue recognition model that supersedes the current revenue recognition requirements and most industry-specific guidance. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The guidance will be effective for the first interim period of our 2019 fiscal year (with early adoption permitted beginning fiscal year 2018), and allows adoption either under a full retrospective or a modified retrospective approach. We are currently evaluating the impact of the new standard.

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Inventory

3 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Our total inventory consists of the following:

Inventory (in millions)	December 31, 2015			September 30, 2015
Film inventory:
Released, net of amortization	$	609		$	576
Completed, not yet released	249			55
In process and other	690			806
Total film inventory, net of amortization	1,548			1,437
Television productions	27			8
Total film and television production inventory	1,575			1,445
Original programming:
Released, net of amortization	1,125			1,161
In process and other	632			599
Total original programming, net of amortization	1,757			1,760
Acquired program rights, net of amortization	1,149			1,108
Home entertainment inventory	93			89
Total inventory, net	4,574			4,402
Less: current portion	(808		)	(786		)
Total inventory-noncurrent, net	$	3,766		$	3,616

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Debt

3 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

DEBT

Our total debt consists of the following:

Debt (in millions)	December 31, 2015			September 30, 2015
Senior Notes and Debentures:
Senior notes due April 2016, 6.250%	368			368
Senior notes due December 2016, 2.500%	399			399
Senior notes due April 2017, 3.500%	498			498
Senior notes due October 2017, 6.125%	499			499
Senior notes due September 2018, 2.500%	497			497
Senior notes due April 2019, 2.200%	399			398
Senior notes due September 2019, 5.625%	550			550
Senior notes due December 2019, 2.750%	398			398
Senior notes due March 2021, 4.500%	494			494
Senior notes due December 2021, 3.875%	592			592
Senior notes due June 2022, 3.125%	296			296
Senior notes due March 2023, 3.250%	297			297
Senior notes due September 2023, 4.250%	1,233			1,233
Senior notes due April 2024, 3.875%	544			543
Senior debentures due December 2034, 4.850%	593			592
Senior debentures due April 2036, 6.875%	1,066			1,066
Senior debentures due October 2037, 6.750%	75			75
Senior debentures due February 2042, 4.500%	244			244
Senior debentures due March 2043, 4.375%	1,086			1,085
Senior debentures due June 2043, 4.875%	246			246
Senior debentures due September 2043, 5.850%	1,228			1,228
Senior debentures due April 2044, 5.250%	544			544
Commercial paper	290			—
Capital lease and other obligations	131			143
Total debt	12,567			12,285
Less: current portion	(1,073		)	(18		)
Total noncurrent portion of debt	$	11,494		$	12,267

The total unamortized discount and issuance fees and expenses related to our senior notes and debentures was $474 million as of December 31, 2015 and $478 million as of September 30, 2015. The fair value of our senior notes and debentures was approximately $11.9 billion as of December 31, 2015. The valuation of our publicly traded debt is based on quoted prices in active markets.

Credit Facility

At December 31, 2015, there were no amounts outstanding under our $2.5 billion revolving credit facility due November 2019. The credit facility is used for general corporate purposes and to support commercial paper outstanding. The amount of unused capacity under the credit facility, after deducting commercial paper outstanding of $290 million with a weighted average maturity of 21 days and weighted average interest rate of 1.16%, was $2.2 billion as of December 31, 2015. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of December 31, 2015.

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Pension and Other Postretirement Benefits

3 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Benefits

PENSION BENEFITS

The components of net periodic benefit cost for our defined benefit pension plans, which are currently frozen to future benefit accruals, are set forth below.

Net Periodic Benefit Cost (in millions)	Quarter Ended    December 31,
	2015			2014
Interest cost	$	9		$	12
Expected return on plan assets	(10		)	(13		)
Recognized actuarial loss	1			1
Loss on pension settlement	—			24
Net periodic benefit cost	$	—		$	24

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Redeemable Noncontrolling Interest Redeemable Noncontrolling Interest

3 Months Ended

Dec. 31, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure

REDEEMABLE NONCONTROLLING INTEREST

We are subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary. The put option expires in December 2022 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets.

The activity reflected within redeemable noncontrolling interest is as follows:

Redeemable Noncontrolling Interest	Quarter Ended   December 31,
(in millions)	2015			2014
Beginning balance	$	219		$	216
Net earnings	7			7
Distributions	(7		)	(8		)
Translation adjustment	(8		)	(9		)
Redemption value adjustment	20			1
Ending Balance	$	231		$	207

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Commitments and Contingencies

3 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Commitments

As more fully described in Note 11 of the 2015 Form 10-K, our commitments primarily consist of programming and talent commitments, operating and capital lease arrangements, and purchase obligations for goods and services. These arrangements result from our normal course of business and represent obligations that may be payable over several years.

Contingencies

We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. (“Famous Players”). In addition, we have certain indemnities provided by the acquirer of Famous Players. These lease commitments amounted to approximately $250 million as of December 31, 2015. The amount of lease commitments varies over time depending on expiration or termination of individual underlying leases, or of the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We have recorded a liability of $192 million with respect to such obligations as of December 31, 2015. We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models.

Legal Matters

Litigation is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the legal matters described below and other litigation to which we are a party are not likely, in the aggregate, to have a material adverse effect on our results of operations, financial position or operating cash flows.

In July 2015, the Directorate-General for Competition (“DG Comp”) of the European Commission (the “EC”) issued a Statement of Objections (the “SO”) to the six major Hollywood film studios, including Paramount Pictures, and to Sky UK (“Sky”), in connection with DG Comp's investigation into whether conventional territorial restrictions in agreements licensing content to pay television broadcasters impeded European Union (“EU”) single market imperatives in an anti-competitive way. The SO directed at Paramount takes issue with certain geo-filtering provisions in Paramount’s 2009 and 2014 agreements with Sky, which are designed to enforce the territorial nature of the content Paramount licenses for distribution on Sky’s online and mobile pay television platforms. In addition, the SO challenges certain provisions in the 2009 agreement regarding Sky’s satellite distribution of Paramount content. Paramount has responded to the SO. If the SO directed at Paramount is not closed or resolved by settlement and the EC decides that violations have in fact occurred, it has the power to impose fines. Any such decision by the EC could be subject to judicial review in the EU’s General Court and, thereafter, the Court of Justice of the EU. The full process, including appeals, could last several years. We believe that Paramount’s licensing practices in the EU are consistent with the region’s competition and other rules, and the objections presented by the EC are without merit. We will vigorously defend against the claims made by the EC.

In November 2015, Robert J. Casey, II, a Viacom shareholder, commenced a shareholder derivative action in the Court of Chancery of the State of Delaware naming, as defendants, all of the members of our Board of Directors, our Chief Financial Officer and our Controller. The complaint alleged breaches of fiduciary duties and unjust enrichment in connection with (i) our decision to recognize a pre-tax charge in the second quarter of fiscal 2015, reflecting the impact of write-downs of underperforming programming, costs associated with workforce reductions and the accelerated amortization of programming expenses, as we publicly announced on April 6, 2015, (ii) our decision to temporarily pause our stock repurchase program in order to stay within our target leverage ratio, also as publicly announced on April 6, 2015, and (iii) the matters relating to the European Statement of Objections, as discussed above. The complaint was filed following communication to Mr. Casey’s counsel that the Board unanimously determined not to authorize commencement of a civil action against members of management in connection with the above matters, as requested by Mr. Casey’s counsel in previous demand letters. We believe the complaint is meritless and, in January 2016, moved to dismiss it.

In January 2016, E.F. Greenberg, a putative Viacom shareholder, commenced a shareholder derivative action in the Court of Chancery of the State of Delaware against the Company and all the current members of our Board of Directors. The complaint alleges breaches of the fiduciary duties of loyalty and candor, waste of corporate assets, and unjust enrichment in connection with compensation arrangements between Viacom and Sumner and Shari Redstone since October 1, 2013. CBS Corporation and its directors were also named in the complaint in connection with arrangements between CBS and Mr. Redstone and Ms. Redstone. We believe the complaint is meritless and will seek its dismissal pursuant to the procedural rules of the court.

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Stockholders' Equity

3 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders Equity

STOCKHOLDERS’ EQUITY

The components of stockholders’ equity are as follows:

	Quarter Ended    December 31, 2015									Quarter Ended    December 31, 2014
Stockholders’ Equity (in millions)	Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity			Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity
Beginning Balance	$	3,538		$	61		$	3,599		$	3,719		$	28		$	3,747
Net earnings	449			12			461			500			13			513
Other comprehensive loss (1)	(43		)	(3		)	(46		)	(122		)	(2		)	(124		)
Noncontrolling interests	(20		)	(12		)	(32		)	(1		)	(14		)	(15		)
Dividends declared	(159		)	—			(159		)	(136		)	—			(136		)
Purchase of treasury stock	(100		)	—			(100		)	(750		)	—			(750		)
Equity-based compensation and other	33			—			33			142			—			142
Ending Balance	$	3,698		$	58		$	3,756		$	3,352		$	25		$	3,377

(1) The components of other comprehensive loss are net of tax expense of $3 million and a tax benefit of $10 million for the quarters ended December 31, 2015 and 2014, respectively.

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Restructuring and Programming Charges Restructuring and Programming Charges

3 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Programming Charges

RESTRUCTURING

Our restructuring liability as of December 31, 2015 by reporting segment is as follows:

2015 Restructuring Liability
(in millions)	Media Networks			Filmed Entertainment			Corporate			Total
September 30, 2015	$	87		$	51		$	9		$	147
Severance payments	(25		)	(5		)	(2		)	(32		)
December 31, 2015	$	62		$	46		$	7		$	115

The liability as of December 31, 2015 is related to future severance payments in connection with the restructuring plan undertaken in fiscal 2015, as further described in Note 14 of the 2015 Form 10-K. We anticipate that substantially all of the remaining restructuring liability will be paid by September 30, 2016.

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Earnings Per Share

3 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares were excluded from the calculation of diluted earnings per common share.

The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive common shares:

Weighted Average Number of Common Shares Outstanding and Anti-dilutive Common Shares	Quarter Ended    December 31,
(in millions)	2015	2014
Weighted average number of common shares outstanding, basic	396.6	410.6
Dilutive effect of equity awards	1.8	5.5
Weighted average number of common shares outstanding, diluted	398.4	416.1
Anti-dilutive common shares	12.7	4.1

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Supplemental Cash Flow and Other Information

3 Months Ended

Dec. 31, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow and Other Information

SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION

Our supplemental cash flow information is as follows:

Supplemental Cash Flow Information	Quarter Ended   December 31,
(in millions)	2015		2014
Cash paid for interest	$	157	$	156
Cash paid for income taxes	$	65	$	48

Accounts Receivable

We had $545 million and $577 million of noncurrent trade receivables as of December 31, 2015 and September 30, 2015, respectively. Accounts receivables are principally related to content distribution arrangements at Media Networks and long-term television license arrangements at Filmed Entertainment. These amounts are included within Other assets - noncurrent in our Consolidated Balance Sheets. Such amounts are due in accordance with the underlying terms of the respective agreements with companies that are investment grade or with which we have historically done business under similar terms. We have determined that credit loss allowances are generally not considered necessary for these amounts.

Variable Interest Entities

In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Unconsolidated Variable Interest Entities: We have an unconsolidated investment in Prism TV Private Limited (“Prism”), a 50% owned joint venture in India that qualifies as a VIE. In connection with our investment, we do not have the power to direct matters that most significantly impact the activities of Prism and therefore we do not qualify as the primary beneficiary. Our carrying value in Prism was $152 million and $145 million as of December 31, 2015 and September 30, 2015, respectively.

Consolidated Variable Interest Entities: Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $207 million in assets and $55 million in liabilities as of December 31, 2015, and $207 million in assets and $54 million in liabilities as of September 30, 2015. The consolidated VIEs’ revenues, expenses and operating income were not significant for all periods presented.

Income Taxes

We recognized net discrete tax expense of $21 million in the quarter ended December 31, 2015 and $23 million in the quarter ended December 31, 2014, principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation.

Our effective tax rate was 35.7% in the quarter ended December 31, 2015, which included discrete tax expense that contributed 2.9 percentage points to the effective tax rate. Our effective tax rate was 35.1% in the quarter ended December 31, 2014, which included discrete tax expense and a loss on pension settlement that, when taken together, contributed 2.8 percentage points to the effective tax rate.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The following table summarizes our financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2015 and September 30, 2015:

Financial Asset/(Liability)				Quoted Prices In Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
(in millions)	Total			Level 1		Level 2			Level 3
December 31, 2015
Marketable securities	$	106		$	106	$	—		$	—
Derivatives	(9		)	—		(9		)	—
Total	$	97		$	106	$	(9	)	$	—
September 30, 2015
Marketable securities	$	100		$	100	$	—		$	—
Derivatives	(10		)	—		(10		)	—
Total	$	90		$	100	$	(10	)	$	—

The fair value for marketable securities is determined utilizing a market approach based on quoted market prices in active markets at period end and the fair value for derivatives is determined utilizing a market-based approach.

The notional value of all foreign exchange contracts was $1.171 billion and $1.040 billion as of December 31, 2015 and September 30, 2015, respectively. At December 31, 2015, $809 million related to our foreign currency balances and $362 million related to future production costs. At September 30, 2015, $769 million related to our foreign currency balances and $271 million related to future production costs.

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Reporting Segments

3 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Reporting Segments

REPORTING SEGMENTS

The following tables set forth our financial performance by reporting segment. Our reporting segments have been determined in accordance with our internal management structure. We manage our operations through two reporting segments: (i) Media Networks and (ii) Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films and television programming exhibition rights by Media Networks. The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the tables below.

Our measure of segment performance is adjusted operating income/(loss). Adjusted operating income/(loss) is defined as operating income/(loss), before equity-based compensation and certain other items identified as affecting comparability, when applicable.

Revenues by Segment	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	2,565		$	2,654
Filmed Entertainment	612			720
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

Adjusted Operating Income/(Loss)	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	1,057		$	1,104
Filmed Entertainment	(146		)	(60		)
Corporate expenses	(50		)	(61		)
Eliminations	4			2
Equity-based compensation	(26		)	(26		)
Loss on pension settlement	—			(24		)
Operating income	839			935
Interest expense, net	(155		)	(160		)
Equity in net earnings of investee companies	31			33
Other items, net	2			(18		)
Earnings before provision for income taxes	$	717		$	790

Total Assets	December 31, 2015			September 30, 2015
(in millions)
Media Networks	$	17,039		$	17,251
Filmed Entertainment	6,380			5,928
Corporate/Eliminations	(1,057		)	(1,036		)
Total assets	$	22,362		$	22,143

Revenues by Component	Quarter Ended    December 31,
(in millions)	2015			2014
Advertising	$	1,320		$	1,367
Feature film	570			674
Affiliate fees	1,119			1,132
Ancillary	168			201
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

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Related Party Transactions

3 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

National Amusements, Inc. (“NAI”), directly and indirectly, is the controlling stockholder of both Viacom and CBS Corporation (“CBS”). Sumner M. Redstone, the controlling shareholder, Chairman and Chief Executive Officer of NAI, serves as our Chairman Emeritus and as the Chairman Emeritus of CBS. Shari Redstone, who is Sumner Redstone’s daughter, is the President and a director of NAI, and serves as non-executive Vice Chair of the Board of Directors of both Viacom and CBS. George Abrams, one of our directors, serves on the boards of both NAI and Viacom, and Frederic Salerno, another of our directors, serves on the boards of both Viacom and CBS. Philippe Dauman, our Executive Chairman, President and Chief Executive Officer, also serves on the boards of both NAI and Viacom. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee.

Viacom and NAI Related Party Transactions

NAI licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the quarters ended December 31, 2015 and 2014, Paramount earned revenues from NAI in connection with these licenses in the aggregate amounts of approximately $1 million and $2 million, respectively.

Viacom and CBS Corporation Related Party Transactions

In the ordinary course of business, we are involved in transactions with CBS and its various businesses that result in the recognition of revenues and expenses by us. Transactions with CBS are settled in cash.

Our Filmed Entertainment segment earns revenues and recognizes expenses associated with its distribution of certain television products into the home entertainment market on behalf of CBS. Pursuant to its agreement with CBS, Paramount distributes CBS’s library of television and other content on DVD and Blu-ray disc on a worldwide basis. Under the terms of the agreement, Paramount is entitled to retain a fee based on a percentage of gross receipts and is generally responsible for all out-of-pocket costs, which are recoupable together with any advance amounts paid. Paramount made advance payments of $60 million to CBS during the quarter ended December 31, 2015. Paramount also earns revenues from CBS through leasing of studio space and licensing of certain film products.

Our Media Networks segment recognizes advertising revenues and purchases television programming from CBS. The cost of the programming purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated.

Both of our segments recognize advertising expenses related to the placement of advertisements with CBS.

The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements:

CBS Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015		2014
Consolidated Statements of Earnings
Revenues	$	43	$	59
Operating expenses	$	59	$	68
	December 31, 2015		September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	4	$	5
Accounts payable	$	1	$	1
Participants’ share and residuals, current	65		77
Program obligations, current	88		62
Program obligations, noncurrent	42		55
Other liabilities	2		2
Total due to CBS	$	198	$	197

Other Related Party Transactions

In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows:

Other Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015			2014
Consolidated Statements of Earnings
Revenues	$	5		$	13
Operating expenses	$	2		$	2
Selling, general and administrative	$	(2	)	$	(2	)
	December 31, 2015			September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	61		$	60
Other assets	1			1
Total due from other related parties	$	62		$	61
Accounts payable	$	7		$	5
Other liabilities	54			55
Total due to other related parties	$	61		$	60

All other related party transactions are not material in the periods presented.

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Inventory (Tables)

3 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventory Balances

Our total inventory consists of the following:

Inventory (in millions)	December 31, 2015			September 30, 2015
Film inventory:
Released, net of amortization	$	609		$	576
Completed, not yet released	249			55
In process and other	690			806
Total film inventory, net of amortization	1,548			1,437
Television productions	27			8
Total film and television production inventory	1,575			1,445
Original programming:
Released, net of amortization	1,125			1,161
In process and other	632			599
Total original programming, net of amortization	1,757			1,760
Acquired program rights, net of amortization	1,149			1,108
Home entertainment inventory	93			89
Total inventory, net	4,574			4,402
Less: current portion	(808		)	(786		)
Total inventory-noncurrent, net	$	3,766		$	3,616

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Debt (Tables)

3 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt Balances

Our total debt consists of the following:

Debt (in millions)	December 31, 2015			September 30, 2015
Senior Notes and Debentures:
Senior notes due April 2016, 6.250%	368			368
Senior notes due December 2016, 2.500%	399			399
Senior notes due April 2017, 3.500%	498			498
Senior notes due October 2017, 6.125%	499			499
Senior notes due September 2018, 2.500%	497			497
Senior notes due April 2019, 2.200%	399			398
Senior notes due September 2019, 5.625%	550			550
Senior notes due December 2019, 2.750%	398			398
Senior notes due March 2021, 4.500%	494			494
Senior notes due December 2021, 3.875%	592			592
Senior notes due June 2022, 3.125%	296			296
Senior notes due March 2023, 3.250%	297			297
Senior notes due September 2023, 4.250%	1,233			1,233
Senior notes due April 2024, 3.875%	544			543
Senior debentures due December 2034, 4.850%	593			592
Senior debentures due April 2036, 6.875%	1,066			1,066
Senior debentures due October 2037, 6.750%	75			75
Senior debentures due February 2042, 4.500%	244			244
Senior debentures due March 2043, 4.375%	1,086			1,085
Senior debentures due June 2043, 4.875%	246			246
Senior debentures due September 2043, 5.850%	1,228			1,228
Senior debentures due April 2044, 5.250%	544			544
Commercial paper	290			—
Capital lease and other obligations	131			143
Total debt	12,567			12,285
Less: current portion	(1,073		)	(18		)
Total noncurrent portion of debt	$	11,494		$	12,267

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Pension and Other Post Retirement (Tables)

3 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Net Periodic Benefit Cost Income (Table)

The components of net periodic benefit cost for our defined benefit pension plans, which are currently frozen to future benefit accruals, are set forth below.

Net Periodic Benefit Cost (in millions)	Quarter Ended    December 31,
	2015			2014
Interest cost	$	9		$	12
Expected return on plan assets	(10		)	(13		)
Recognized actuarial loss	1			1
Loss on pension settlement	—			24
Net periodic benefit cost	$	—		$	24

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Redeemable Noncontrolling Interest Redeemable Noncontrolling Interest (Tables)

3 Months Ended

Dec. 31, 2015

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

The activity reflected within redeemable noncontrolling interest is as follows:

Redeemable Noncontrolling Interest	Quarter Ended   December 31,
(in millions)	2015			2014
Beginning balance	$	219		$	216
Net earnings	7			7
Distributions	(7		)	(8		)
Translation adjustment	(8		)	(9		)
Redemption value adjustment	20			1
Ending Balance	$	231		$	207

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Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholder Equity Components

The components of stockholders’ equity are as follows:

	Quarter Ended    December 31, 2015									Quarter Ended    December 31, 2014
Stockholders’ Equity (in millions)	Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity			Total Viacom Stockholders' Equity			Noncontrolling Interests			Total Equity
Beginning Balance	$	3,538		$	61		$	3,599		$	3,719		$	28		$	3,747
Net earnings	449			12			461			500			13			513
Other comprehensive loss (1)	(43		)	(3		)	(46		)	(122		)	(2		)	(124		)
Noncontrolling interests	(20		)	(12		)	(32		)	(1		)	(14		)	(15		)
Dividends declared	(159		)	—			(159		)	(136		)	—			(136		)
Purchase of treasury stock	(100		)	—			(100		)	(750		)	—			(750		)
Equity-based compensation and other	33			—			33			142			—			142
Ending Balance	$	3,698		$	58		$	3,756		$	3,352		$	25		$	3,377

(1) The components of other comprehensive loss are net of tax expense of $3 million and a tax benefit of $10 million for the quarters ended December 31, 2015 and 2014, respectively.

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Restructuring and Programming Charges Restructuring Rollforward (Tables)

3 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

2015 Restructuring Liability
(in millions)	Media Networks			Filmed Entertainment			Corporate			Total
September 30, 2015	$	87		$	51		$	9		$	147
Severance payments	(25		)	(5		)	(2		)	(32		)
December 31, 2015	$	62		$	46		$	7		$	115

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Common Shares Outstanding and Anti-dilutive common shares

The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive common shares:

Weighted Average Number of Common Shares Outstanding and Anti-dilutive Common Shares	Quarter Ended    December 31,
(in millions)	2015	2014
Weighted average number of common shares outstanding, basic	396.6	410.6
Dilutive effect of equity awards	1.8	5.5
Weighted average number of common shares outstanding, diluted	398.4	416.1
Anti-dilutive common shares	12.7	4.1

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Supplemental Cash Flow and Other Information (Tables)

3 Months Ended

Dec. 31, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Our supplemental cash flow information is as follows:

Supplemental Cash Flow Information	Quarter Ended   December 31,
(in millions)	2015		2014
Cash paid for interest	$	157	$	156
Cash paid for income taxes	$	65	$	48

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value By Balance Sheet Grouping

The following table summarizes our financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2015 and September 30, 2015:

Financial Asset/(Liability)				Quoted Prices In Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
(in millions)	Total			Level 1		Level 2			Level 3
December 31, 2015
Marketable securities	$	106		$	106	$	—		$	—
Derivatives	(9		)	—		(9		)	—
Total	$	97		$	106	$	(9	)	$	—
September 30, 2015
Marketable securities	$	100		$	100	$	—		$	—
Derivatives	(10		)	—		(10		)	—
Total	$	90		$	100	$	(10	)	$	—

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Reporting Segments (Tables)

3 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Revenues by Segment

Revenues by Segment	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	2,565		$	2,654
Filmed Entertainment	612			720
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

Adjusted Operating Income (Loss)

Adjusted Operating Income/(Loss)	Quarter Ended    December 31,
(in millions)	2015			2014
Media Networks	$	1,057		$	1,104
Filmed Entertainment	(146		)	(60		)
Corporate expenses	(50		)	(61		)
Eliminations	4			2
Equity-based compensation	(26		)	(26		)
Loss on pension settlement	—			(24		)
Operating income	839			935
Interest expense, net	(155		)	(160		)
Equity in net earnings of investee companies	31			33
Other items, net	2			(18		)
Earnings before provision for income taxes	$	717		$	790

Total Assets

Total Assets	December 31, 2015			September 30, 2015
(in millions)
Media Networks	$	17,039		$	17,251
Filmed Entertainment	6,380			5,928
Corporate/Eliminations	(1,057		)	(1,036		)
Total assets	$	22,362		$	22,143

Revenues by Component

Revenues by Component	Quarter Ended    December 31,
(in millions)	2015			2014
Advertising	$	1,320		$	1,367
Feature film	570			674
Affiliate fees	1,119			1,132
Ancillary	168			201
Eliminations	(23		)	(30		)
Total revenues	$	3,154		$	3,344

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Related Party Transactions (Tables)

3 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Persons Transactions (Tables)

The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements:

CBS Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015		2014
Consolidated Statements of Earnings
Revenues	$	43	$	59
Operating expenses	$	59	$	68
	December 31, 2015		September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	4	$	5
Accounts payable	$	1	$	1
Participants’ share and residuals, current	65		77
Program obligations, current	88		62
Program obligations, noncurrent	42		55
Other liabilities	2		2
Total due to CBS	$	198	$	197

Related Parties Transactions (Tables)

In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows:

Other Related Party Transactions	Quarter Ended   December 31,
(in millions)	2015			2014
Consolidated Statements of Earnings
Revenues	$	5		$	13
Operating expenses	$	2		$	2
Selling, general and administrative	$	(2	)	$	(2	)
	December 31, 2015			September 30, 2015
Consolidated Balance Sheets
Accounts receivable	$	61		$	60
Other assets	1			1
Total due from other related parties	$	62		$	61
Accounts payable	$	7		$	5
Other liabilities	54			55
Total due to other related parties	$	61		$	60

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Description of Business and Basis of Presentation (Details) $ in Millions	3 Months Ended
	Dec. 31, 2015 USD ($) Segment	Sep. 30, 2015 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Countries in which Entity Operates	180
Number of Operating Segments | Segment	2
Deferred Income Tax Liabilities, Net		$ 99
Deferred Tax Assets, Net, Noncurrent		51
Deferred tax liabilities, net	$ 448	$ 150

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Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2015	Sep. 30, 2015
Film inventory:
Released, net of amortization	$ 609	$ 576
Completed, not yet released	249	55
In process and other	690	806
Total film inventory, net of amortization	1,548	1,437
Television productions	27	8
Total film and television production inventory	1,575	1,445
Original programming:
Released, net of amortization	1,125	1,161
In process and other	632	599
Total original programming, net of amortization	1,757	1,760
Acquired program rights, net of amortization	1,149	1,108
Home entertainment inventory	93	89
Total inventory, net	4,574	4,402
Less: current portion	(808)	(786)
Total inventory-noncurrent, net	$ 3,766	$ 3,616

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Debt (Details) - USD ($)		3 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Commercial Paper, at Carrying Value	$ 290,000,000	$ 290,000,000	$ 0
Capital lease and other obligations	131,000,000	131,000,000	143,000,000
Total debt	12,567,000,000	12,567,000,000	12,285,000,000
Less: current portion	(1,073,000,000)	(1,073,000,000)	(18,000,000)
Total noncurrent portion of debt	11,494,000,000	11,494,000,000	12,267,000,000
Senior Notes And Debentures [Abstract]
Unamortized net discount related to senior notes and debentures	474,000,000	474,000,000	478,000,000
Fair value of senior notes and debentures	$ 11,900,000,000	$ 11,900,000,000
Commercial Paper [Member]
Debt Instrument [Line Items]
Weighted Average Maturity	21 days
Debt, Weighted Average Interest Rate	1.16%	1.16%
Senior notes due April 2016, 6.250%
Debt Instrument [Line Items]
Senior notes and debentures	$ 368,000,000	$ 368,000,000	368,000,000
Coupon rate	6.25%	6.25%
Senior notes due December 2016, 2.500%
Debt Instrument [Line Items]
Senior notes and debentures	$ 399,000,000	$ 399,000,000	399,000,000
Coupon rate	2.50%	2.50%
Senior notes due April 2017, 3.500%
Debt Instrument [Line Items]
Senior notes and debentures	$ 498,000,000	$ 498,000,000	498,000,000
Coupon rate	3.50%	3.50%
Senior notes due October 2017, 6.125%
Debt Instrument [Line Items]
Senior notes and debentures	$ 499,000,000	$ 499,000,000	499,000,000
Coupon rate	6.125%	6.125%
Senior notes due September 2018, 2.500%
Debt Instrument [Line Items]
Senior notes and debentures	$ 497,000,000	$ 497,000,000	497,000,000
Coupon rate	2.50%	2.50%
Senior notes due April 2019, 2.200%
Debt Instrument [Line Items]
Senior notes and debentures	$ 399,000,000	$ 399,000,000	398,000,000
Coupon rate	2.20%	2.20%
Senior notes due December 2019, 2.750%
Debt Instrument [Line Items]
Senior notes and debentures	$ 398,000,000	$ 398,000,000	398,000,000
Coupon rate	2.75%	2.75%
Senior notes due September 2019, 5.625%
Debt Instrument [Line Items]
Senior notes and debentures	$ 550,000,000	$ 550,000,000	550,000,000
Coupon rate	5.625%	5.625%
Senior notes due March 2021, 4.500%
Debt Instrument [Line Items]
Senior notes and debentures	$ 494,000,000	$ 494,000,000	494,000,000
Coupon rate	4.50%	4.50%
Senior notes due December 2021, 3.875%
Debt Instrument [Line Items]
Senior notes and debentures	$ 592,000,000	$ 592,000,000	592,000,000
Coupon rate	3.875%	3.875%
Senior notes due June 2022, 3.125%
Debt Instrument [Line Items]
Senior notes and debentures	$ 296,000,000	$ 296,000,000	296,000,000
Coupon rate	3.125%	3.125%
Senior notes due March 2023, 3.250%
Debt Instrument [Line Items]
Senior notes and debentures	$ 297,000,000	$ 297,000,000	297,000,000
Coupon rate	3.25%	3.25%
Senior notes due September 2023, 4.250%
Debt Instrument [Line Items]
Senior notes and debentures	$ 1,233,000,000	$ 1,233,000,000	1,233,000,000
Coupon rate	4.25%	4.25%
Senior notes due April 2024, 3.875%
Debt Instrument [Line Items]
Senior notes and debentures	$ 544,000,000	$ 544,000,000	543,000,000
Coupon rate	3.875%	3.875%
Senior debentures due December 2034, 4.850%
Debt Instrument [Line Items]
Senior notes and debentures	$ 593,000,000	$ 593,000,000	592,000,000
Coupon rate	4.85%	4.85%
Senior debentures due April 2036, 6.875%
Debt Instrument [Line Items]
Senior notes and debentures	$ 1,066,000,000	$ 1,066,000,000	1,066,000,000
Coupon rate	6.875%	6.875%
Senior debentures due October 2037, 6.750%
Debt Instrument [Line Items]
Senior notes and debentures	$ 75,000,000	$ 75,000,000	75,000,000
Coupon rate	6.75%	6.75%
Senior debentures due February 2042, 4.500%
Debt Instrument [Line Items]
Senior notes and debentures	$ 244,000,000	$ 244,000,000	244,000,000
Coupon rate	4.50%	4.50%
Senior debentures due March 2043, 4.375%
Debt Instrument [Line Items]
Senior notes and debentures	$ 1,086,000,000	$ 1,086,000,000	1,085,000,000
Coupon rate	4.375%	4.375%
Senior debentures due June 2043, 4.875%
Debt Instrument [Line Items]
Senior notes and debentures	$ 246,000,000	$ 246,000,000	246,000,000
Coupon rate	4.875%	4.875%
Senior debentures due September 2043, 5.850%
Debt Instrument [Line Items]
Senior notes and debentures	$ 1,228,000,000	$ 1,228,000,000	1,228,000,000
Coupon rate	5.85%	5.85%
Senior debentures due April 2044, 5.250%
Debt Instrument [Line Items]
Senior notes and debentures	$ 544,000,000	$ 544,000,000	$ 544,000,000
Coupon rate	5.25%	5.25%
Revolving Credit Agreement
Line of Credit Facility [Abstract]
Outstanding amount of credit facility	$ 0	$ 0
Line of Credit Facility, Maximum Borrowing Capacity	2,500,000,000	2,500,000,000
Line of credit facility current borrowing capacity	$ 2,200,000,000	$ 2,200,000,000
Minimum Interest Coverage Ratio		The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of December 31, 2015

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Pension and Other Post Retirement (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net Periodic Benefit Cost Abstract
Interest cost	$ 9	$ 12
Expected return on plan assets	(10)	(13)
Recognized actuarial loss	1	1
Loss on pension settlement	0	24
Net periodic benefit cost	$ 0	$ 24

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Redeemable Noncontrolling Interest Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Redeemable Noncontrolling Interest [Roll Forward]
Beginning Balance	$ 219	$ 216
Net Earnings	7	7
Distributions	(7)	(8)
Translation Adjustments	(8)	(9)
Redemption value adjustment	20	1
Ending Balance	$ 231	$ 207

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Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2015 USD ($)
Commitments [Abstract]
Period end lease indemnifications	$ 250
Recorded liability for lease indemnifications	$ 192

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Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of Capitalization Equity [Line Items]
OCI Tax Expense (Benefit)	$ 3	$ (10)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	3,599	3,747
Net earnings	461	513
Other comprehensive loss (1)	(46)	(124)
Noncontrolling interests	(32)	(15)
Dividends declared	(159)	(136)
Purchase of treasury stock	(100)	(750)
Equity-based compensation and other	33	142
Ending Balance	3,756	3,377
Total Viacom Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	3,538	3,719
Net earnings	449	500
Other comprehensive loss (1)	(43)	(122)
Noncontrolling interests	(20)	(1)
Dividends declared	(159)	(136)
Purchase of treasury stock	(100)	(750)
Equity-based compensation and other	33	142
Ending Balance	3,698	3,352
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	61	28
Net earnings	12	13
Other comprehensive loss (1)	(3)	(2)
Noncontrolling interests	(12)	(14)
Dividends declared	0	0
Purchase of treasury stock	0	0
Equity-based compensation and other	0	0
Ending Balance	$ 58	$ 25

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Restructuring and Programming Charges Restructuring Reserve Rollforward (Details) $ in Millions	3 Months Ended
	Dec. 31, 2015 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 147
Severance payments	(32)
Restructuring reserve, ending balance	115
Media Networks
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	87
Severance payments	(25)
Restructuring reserve, ending balance	62
Filmed Entertainment
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	51
Severance payments	(5)
Restructuring reserve, ending balance	46
Corporate1
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	9
Severance payments	(2)
Restructuring reserve, ending balance	$ 7

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Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Common Shares Outstanding and Anti-dilutive Common Shares [Abstract]
Weighted average number of common shares outstanding, basic	396.6	410.6
Dilutive effect of equity awards	1.8	5.5
Weighted average number of common shares outstanding, diluted	398.4	416.1
Anti-dilutive common shares	12.7	4.1

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Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Investment [Line Items]
OCI Tax Expense (Benefit)	$ (3)	$ 10
Cash paid for interest	157	156
Cash paid for income taxes	65	48
Supplemental Cash Flow And Other Information Paragraph Details [Abstract]
Accounts Receivable, Net, Noncurrent	545		$ 577
Variable Interest Entity, Consolidated, Carrying Amount, Assets	207		207
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities	55		54
NetDiscreteTaxExpense	$ 21	$ 23
Effective Income Tax Rate, Percentage	35.70%	35.10%
Effective Income Tax Rate Reconciliation, Deduction, Percent	2.90%	2.80%
Prism
Investment [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	$ 152		$ 145

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Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2015	Sep. 30, 2015
Financial Instruments [Line Items]
Marketable securities	$ 106	$ 100
Derivatives	(9)	(10)
Total	97	90
Foreign Currency Hedge Derivatives [Abstract]
Notional value of all foreign exchange contracts	1,171	1,040
Net Investments In Foreign Operations
Foreign Currency Hedge Derivatives [Abstract]
Notional value of all foreign exchange contracts	809	769
Future Production Costs
Foreign Currency Hedge Derivatives [Abstract]
Notional value of all foreign exchange contracts	362	271
Quoted Prices In Active Markets for Identical Assets Level 1
Financial Instruments [Line Items]
Marketable securities	106	100
Derivatives	0	0
Total	106	100
Significant Other Observable Inputs Level 2
Financial Instruments [Line Items]
Marketable securities	0	0
Derivatives	(9)	(10)
Total	(9)	(10)
Significant Unobservable Inputs Level 3
Financial Instruments [Line Items]
Marketable securities	0	0
Derivatives	0	0
Total	$ 0	$ 0

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Reporting Segments (Details) $ in Millions	3 Months Ended
	Dec. 31, 2015 USD ($) Segment	Dec. 31, 2014 USD ($)	Sep. 30, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | Segment	2
Revenues by Segment [Abstract]
Total revenues	$ 3,154	$ 3,344
Adjusted Operating Income (Loss) [Abstract]
Equity-based compensation	(26)	(26)
Loss on pension settlement	0	24
Operating income	839	935
Interest expense, net	(155)	(160)
Equity in net earnings of investee companies	31	33
Other items, net	2	(18)
Earnings before provision for income taxes	717	790
Total Assets [Abstract]
Total assets	22,362		$ 22,143
Revenue By Component [Abstract]
Advertising	1,320	1,367
Feature film	570	674
Affiliate fees	1,119	1,132
Ancillary	168	201
Eliminations	(23)	(30)
Total revenues	3,154	3,344
Eliminations
Adjusted Operating Income (Loss) [Abstract]
Eliminations	4	2
Media Networks
Revenues by Segment [Abstract]
Total revenues	2,565	2,654
Adjusted Operating Income (Loss) [Abstract]
Adjusted operating income by Segment	1,057	1,104
Total Assets [Abstract]
Total assets	17,039		17,251
Revenue By Component [Abstract]
Total revenues	2,565	2,654
Filmed Entertainment
Revenues by Segment [Abstract]
Total revenues	612	720
Adjusted Operating Income (Loss) [Abstract]
Adjusted operating income by Segment	(146)	(60)
Total Assets [Abstract]
Total assets	6,380		5,928
Revenue By Component [Abstract]
Total revenues	612	720
Corporate expenses
Adjusted Operating Income (Loss) [Abstract]
Corporate expenses	(50)	$ (61)
Total Assets [Abstract]
Total assets	$ (1,057)		$ (1,036)

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Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Consolidated Balance Sheets [Abstract]
NAI license revenues earned	$ 1	$ 2
Advance payments to CBS	60
CBS
Consolidated Statements of Earnings
Revenues	43	59
Operating expenses	59	68
Consolidated Balance Sheets [Abstract]
Accounts receivable	4		$ 5
Accounts payable	1		1
Participants’ share and residuals, current	65		77
Program obligations, current	88		62
Program obligations, noncurrent	42		55
Other liabilities	2		2
Total due to CBS and other related parties	198		197
Other Related Parties
Consolidated Statements of Earnings
Revenues	5	13
Operating expenses	2	2
Selling, general and administrative	(2)	$ (2)
Consolidated Balance Sheets [Abstract]
Accounts receivable	61		60
Other assets	1		1
Total due from CBS and other related parties	62		61
Accounts payable	7		5
Other liabilities	54		55
Total due to CBS and other related parties	$ 61		$ 60