Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Dec. 12, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Trading Symbol | 'wmg | ' |
Entity Registrant Name | 'Warner Music Group Corp. | ' |
Entity Central Index Key | '0001319161 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Current Reporting Status | 'No | ' |
Entity Voluntary Filers | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,055 |
Entity Public Float | $0 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $155 | $302 |
Accounts receivable, less allowances of $55 million and $63 million | 511 | 398 |
Inventories | 33 | 28 |
Royalty advances expected to be recouped within one year | 93 | 116 |
Deferred tax assets | 43 | 51 |
Prepaid and other current assets | 59 | 44 |
Total current assets | 894 | 939 |
Royalty advances expected to be recouped after one year | 173 | 142 |
Property, plant and equipment, net | 180 | 152 |
Goodwill | 1,668 | 1,380 |
Intangible assets subject to amortization, net | 3,107 | 2,499 |
Intangible assets not subject to amortization | 120 | 102 |
Other assets | 110 | 64 |
Total assets | 6,252 | 5,278 |
Current liabilities: | ' | ' |
Accounts payable | 280 | 156 |
Accrued royalties | 1,147 | 997 |
Accrued liabilities | 321 | 253 |
Accrued interest | 75 | 89 |
Deferred revenue | 139 | 101 |
Current portion of long-term debt | 13 | ' |
Other current liabilities | 25 | 10 |
Total current liabilities | 2,000 | 1,606 |
Long-term debt | 2,854 | 2,206 |
Deferred tax liabilities, net | 439 | 375 |
Other noncurrent liabilities | 216 | 147 |
Total liabilities | 5,509 | 4,334 |
Equity: | ' | ' |
Total Warner Music Group Corp. equity | 726 | 927 |
Noncontrolling interest | 17 | 17 |
Total equity | 743 | 944 |
Total liabilities and equity | 6,252 | 5,278 |
Successor [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | 155 | 302 |
Accounts receivable, less allowances of $55 million and $63 million | 511 | 398 |
Inventories | 33 | 28 |
Royalty advances expected to be recouped within one year | 93 | 116 |
Deferred tax assets | 43 | 51 |
Prepaid and other current assets | 59 | 44 |
Total current assets | 894 | 939 |
Royalty advances expected to be recouped after one year | 173 | 142 |
Property, plant and equipment, net | 180 | 152 |
Goodwill | 1,668 | 1,380 |
Intangible assets subject to amortization, net | 3,107 | 2,499 |
Intangible assets not subject to amortization | 120 | 102 |
Other assets | 110 | 64 |
Total assets | 6,252 | 5,278 |
Current liabilities: | ' | ' |
Accounts payable | 280 | 156 |
Accrued royalties | 1,147 | 997 |
Accrued liabilities | 321 | 253 |
Accrued interest | 75 | 89 |
Deferred revenue | 139 | 101 |
Current portion of long-term debt | 13 | ' |
Other current liabilities | 25 | 10 |
Total current liabilities | 2,000 | 1,606 |
Long-term debt | 2,854 | 2,206 |
Deferred tax liabilities, net | 439 | 375 |
Other noncurrent liabilities | 216 | 147 |
Total liabilities | 5,509 | 4,334 |
Equity: | ' | ' |
Common stock ($0.001 par value; 10,000 shares authorized; 1,055 and 1,000 shares issued and outstanding) | ' | ' |
Additional paid-in capital | 1,128 | 1,129 |
Accumulated deficit | -341 | -143 |
Accumulated other comprehensive loss, net | -61 | -59 |
Total Warner Music Group Corp. equity | 726 | 927 |
Noncontrolling interest | 17 | 17 |
Total equity | 743 | 944 |
Total liabilities and equity | $6,252 | $5,278 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Successor [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Successor [Member] | ' | ' |
Accounts receivable, allowances | $55 | $63 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 1,055 | 1,000 |
Common stock, shares outstanding | 1,055 | 1,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | ||||
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||||
Revenues | $556 | $2,871 | $2,780 | $2,311 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of revenues | -288 | -1,499 | -1,459 | -1,261 | ||||
Selling, general and administrative expenses | -196 | [1] | -1,090 | [1] | -1,019 | [1] | -874 | [1] |
Amortization of intangible assets | -38 | -207 | -193 | -178 | ||||
Total costs and expenses | -522 | -2,796 | -2,671 | -2,313 | ||||
Operating income (loss) | 34 | 75 | 109 | -2 | ||||
Loss on extinguishment of debt | ' | -85 | ' | ' | ||||
Interest expense, net | -62 | -203 | -225 | -151 | ||||
Other (expense) income, net | ' | -12 | 8 | 5 | ||||
Loss before income taxes | -28 | -225 | -108 | -148 | ||||
Income tax benefit (expense) | -3 | 31 | -1 | -27 | ||||
Net loss | -31 | -194 | -109 | -175 | ||||
Less: (income) loss attributable to noncontrolling interests | ' | -4 | -3 | 1 | ||||
Net loss attributable to Warner Music Group Corp. | ($31) | ($198) | ($112) | ($174) | ||||
Net loss per common share attributable to Warner Music Group Corp.: | ' | ' | ' | ' | ||||
Basic | ' | ' | ' | ($1.15) | ||||
Diluted | ' | ' | ' | ($1.15) | ||||
Weighted average common shares: | ' | ' | ' | ' | ||||
Basic | ' | ' | ' | 150.9 | ||||
Diluted | ' | ' | ' | 150.9 | ||||
[1] | Includes depreciation expense of: $ (51 ) $ (51 ) $ (9 ) $ (33 ) |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Depreciation expense | ($9) | ($51) | ($51) | ($33) |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Loss (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | ||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||||||||
Net loss | ($31) | ($57) | [1] | ($62) | [1] | $4 | [1] | ($79) | [1] | ($17) | [1] | ($32) | [1] | ($34) | [1] | ($26) | [1] | ($194) | ($109) | ($175) |
Other comprehensive (loss) income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Foreign currency translation adjustment | -35 | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -19 | 9 | ||||||||
Minimum pension liability | 1 | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -7 | ' | ||||||||
Deferred gains (losses) on derivative financial instruments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | 2 | ||||||||
Total other comprehensive (loss) income, net of tax: | -33 | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -26 | 11 | ||||||||
Total comprehensive loss | -64 | ' | ' | ' | ' | ' | ' | ' | ' | -196 | -135 | -164 | ||||||||
Less: comprehensive (income) loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | 1 | ||||||||
Comprehensive loss attributable to Warner Music Group Corp. | ($64) | ' | ' | ' | ' | ' | ' | ' | ' | ($200) | ($138) | ($163) | ||||||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows(USD ($)) | 3 Months Ended | 12 Months Ended | 10 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jul. 19, 2011 |
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
WMG Acquisition Corp. Consolidated [Member] | |||||
9.5% Senior Subordinated Notes [Member] | |||||
Cash flows from operating activities | ' | ' | ' | ' | ' |
Net loss | ($31) | ($194) | ($109) | ' | ($175) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 47 | 258 | 244 | ' | 211 |
Deferred taxes | -2 | -73 | -26 | ' | -15 |
Non-cash interest expense (income) | 2 | 13 | -2 | ' | 9 |
Non-cash, share-based compensation expense | ' | 19 | ' | ' | 24 |
Loss on extinguishment of debt | ' | 85 | ' | ' | ' |
Equity losses (gains), including distributions | ' | 3 | -2 | ' | -2 |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' |
Accounts receivable | -68 | -15 | -16 | ' | 119 |
Inventories | -2 | -5 | 1 | ' | 10 |
Royalty advances | 26 | -1 | 47 | ' | -16 |
Accounts payable and accrued liabilities | 29 | 73 | 39 | ' | -147 |
Royalty payables | -73 | 6 | 22 | ' | 4 |
Accrued interest | 30 | -14 | 34 | ' | -34 |
Other current balance sheet changes | 8 | 5 | -7 | ' | 13 |
Other noncurrent balance sheet changes | -30 | -1 | -16 | ' | 11 |
Net cash provided by (used in) operating activities | -64 | 159 | 209 | ' | 12 |
Cash flows from investing activities | ' | ' | ' | ' | ' |
Purchase of Predecessor | -1,278 | ' | ' | ' | ' |
Capital expenditures | -11 | -34 | -32 | ' | -37 |
Acquisition of publishing rights | -3 | -37 | -32 | ' | -59 |
Investments and acquisitions of businesses, net of cash acquired | ' | -737 | -8 | ' | -59 |
Proceeds from sale of music catalog | ' | ' | 2 | ' | ' |
Proceeds from the sale of building | ' | ' | 12 | ' | ' |
Net cash used in investing activities | -1,292 | -808 | -58 | ' | -155 |
Cash flows from financing activities | ' | ' | ' | ' | ' |
Capital Contribution from Parent | 1,099 | ' | ' | ' | ' |
Repayment of Acquisition Corp. Senior Subordinated Notes | -626 | ' | ' | -1,250 | ' |
Proceeds from issuance of Acquisition Corp. Senior Secured Notes | 157 | ' | ' | ' | ' |
Proceeds from Acquisition Corp Term Loan Facility | ' | 1,412 | ' | ' | ' |
Repayment of Term Loan | ' | -110 | ' | ' | ' |
Proceeds from draw down of the Revolving Credit Facility | ' | 136 | ' | ' | ' |
Repayment of the Revolving Credit Facility | ' | -136 | ' | ' | ' |
Proceeds from issuance of Senior Unsecured Notes | 747 | ' | ' | ' | ' |
Proceeds from issuance of Senior Unsecured Notes | 150 | ' | ' | ' | ' |
Repayment of Holdings Senior Discount Notes | -258 | ' | ' | ' | ' |
Financing costs paid | -70 | -129 | ' | ' | ' |
Deferred financing costs paid | ' | -62 | ' | ' | ' |
Proceeds from the exercise of stock options | ' | ' | ' | ' | 6 |
Distributions to noncontrolling interest holders | ' | -4 | -3 | ' | -1 |
Net cash provided by (used in) financing activities | 1,199 | 511 | -3 | ' | 5 |
Effect of foreign currency exchange rate changes on cash | -8 | -9 | ' | ' | 18 |
Net (decrease) increase in cash and equivalents | -165 | -147 | 148 | ' | -120 |
Cash and equivalents at beginning of period | 319 | 302 | 154 | ' | 439 |
Cash and equivalents at end of period | $154 | $155 | $302 | ' | $319 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical)(Successor [Member]) | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 |
11.5% Senior Unsecured Notes [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | Holding Company [Member] | Holding Company [Member] | |
9.5% Senior Subordinated Notes [Member] | 9.5% Senior Secured Notes [Member] | 7 3/8% Dollar-denominated Senior Subordinated Notes [Member] | 8 1/8% Sterling-denominated Senior Subordinated Notes [Member] | 13.75% Senior Unsecured Notes [Member] | 9.5% Senior Discount Notes [Member] | ||
Interest rate | 11.50% | 9.50% | 9.50% | 7.38% | 8.13% | 13.75% | 9.50% |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | Total | Predecessor [Member] | Successor [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Warner Music Group Corp. Equity [Member] | Total Warner Music Group Corp. Equity [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | |
In Millions, except Share data | USD ($) | USD ($) | USD ($) | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||
Beginning balance at Sep. 30, 2010 | ' | ($211) | ' | ' | ' | $611 | ' | ($929) | ' | $53 | ' | ($265) | ' | $54 | ' | |
Beginning balance, shares at Sep. 30, 2010 | ' | ' | ' | 154,950,776 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance, per share value at Sep. 30, 2010 | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | ' | -175 | ' | ' | ' | ' | ' | -174 | ' | ' | ' | -174 | ' | -1 | ' | |
Other comprehensive (loss) income, net of tax | ' | 11 | ' | ' | ' | ' | ' | ' | ' | 11 | ' | 11 | ' | ' | ' | |
Distribution to noncontrolling interest | ' | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | ' | |
Share-based compensation | ' | 24 | ' | ' | ' | 24 | ' | ' | ' | ' | ' | 24 | ' | ' | ' | |
Stock based compensation, shares | ' | ' | ' | -7,731,089 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Initial investment by Parent, per share value | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Exercises of stock options | ' | 6 | ' | ' | ' | 6 | ' | ' | ' | ' | ' | 6 | ' | ' | ' | |
Exercises of stock options, shares | ' | ' | ' | 1,688,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Jul. 19, 2011 | ' | -349 | ' | ' | ' | 641 | ' | -1,103 | ' | 64 | ' | -398 | ' | 49 | ' | |
Ending balance, shares at Jul. 19, 2011 | ' | ' | ' | 148,908,228 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Jul. 19, 2011 | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Initial investment by Parent | ' | ' | 1,129 | ' | ' | ' | 1,129 | ' | ' | ' | ' | ' | 1,129 | ' | ' | |
Initial investment by Parent, shares | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | ' | ' | -31 | ' | ' | ' | ' | ' | -31 | ' | ' | ' | -31 | ' | ' | |
Other comprehensive (loss) income, net of tax | ' | ' | -33 | ' | ' | ' | ' | ' | ' | ' | -33 | ' | -33 | ' | ' | |
Distribution to noncontrolling interest | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | |
Initial investment by Parent, per share value | ' | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Sep. 30, 2011 | ' | ' | 1,082 | ' | ' | ' | 1,129 | ' | -31 | ' | -33 | ' | 1,065 | ' | 17 | |
Ending balance, shares at Sep. 30, 2011 | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Sep. 30, 2011 | ' | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | [1] | ' | ' | -26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance at Sep. 30, 2011 | ' | ' | 1,082 | ' | ' | ' | ' | ' | -31 | ' | -33 | ' | 1,065 | ' | 17 | |
Net loss | ' | ' | -109 | ' | ' | ' | ' | ' | -112 | ' | ' | ' | -112 | ' | 3 | |
Other comprehensive (loss) income, net of tax | ' | ' | -26 | ' | ' | ' | ' | ' | ' | ' | -26 | ' | -26 | ' | ' | |
Distribution to noncontrolling interest | ' | ' | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | |
Initial investment by Parent, per share value | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Sep. 30, 2012 | 944 | ' | 944 | ' | ' | ' | ' | ' | -143 | ' | -59 | ' | 927 | ' | 17 | |
Ending balance, shares at Sep. 30, 2012 | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Sep. 30, 2012 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | [1] | ' | ' | -17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial investment by Parent, per share value | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Sep. 30, 2012 | 944 | ' | 944 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, shares at Sep. 30, 2012 | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Sep. 30, 2012 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | [1] | ' | ' | -79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance at Sep. 30, 2012 | 944 | ' | 944 | ' | ' | ' | 1,129 | ' | -143 | ' | -59 | ' | 927 | ' | 17 | |
Beginning balance, shares at Sep. 30, 2012 | ' | ' | 1,000 | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance, per share value at Sep. 30, 2012 | ' | ' | $0.00 | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | ' | ' | -194 | ' | ' | ' | ' | ' | -198 | ' | ' | ' | -198 | ' | 4 | |
Other comprehensive (loss) income, net of tax | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | -2 | ' | -2 | ' | ' | |
Distribution to noncontrolling interest | ' | ' | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | |
Deconsolidation of entity | ' | ' | -1 | ' | ' | ' | -1 | ' | ' | ' | ' | ' | -1 | ' | ' | |
Stock dividend, Shares | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Initial investment by Parent, per share value | ' | ' | $0.00 | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Sep. 30, 2013 | 743 | ' | 743 | ' | ' | ' | 1,128 | ' | -341 | ' | -61 | ' | 726 | ' | 17 | |
Ending balance, shares at Sep. 30, 2013 | ' | ' | 1,055 | ' | 1,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Sep. 30, 2013 | ' | ' | $0.00 | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss | [1] | ' | ' | -57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial investment by Parent, per share value | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Sep. 30, 2013 | $743 | ' | $743 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, shares at Sep. 30, 2013 | ' | ' | 1,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ending balance, per share value at Sep. 30, 2013 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Description_of_Business
Description of Business | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. The Company is the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music-based content companies. | |
Acquisition of Warner Music Group by Access Industries | |
Pursuant to an Agreement and Plan of Merger, dated as of May 6, 2011 (the “Merger Agreement”), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company (“Parent”) and an affiliate of Access Industries, Inc. (“Access”), and Airplanes Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), on July 20, 2011 (the “Merger Closing Date”), Merger Sub merged with and into the Company with the Company surviving as a wholly owned subsidiary of Parent (the “Merger”). In connection with the Merger, the Company delisted its common stock from listing on the NYSE. The Company continues to file with the SEC current and periodic reports that would be required to be filed with the SEC pursuant to Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) in accordance with certain covenants contained in the instruments covering its outstanding indebtedness. | |
The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. A brief description of these operations is presented below. | |
PLG Acquisition | |
On July 1, 2013, the Company completed its acquisition of Parlophone Label Group. See Note 4 for a further discussion. | |
Recorded Music Operations | |
The Company’s Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company plays an integral role in virtually all aspects of the recorded music value chain from discovering and developing talent to producing albums and promoting artists and their products. | |
In the U.S., Recorded Music operations are conducted principally through the Company’s major record labels—Warner Bros. Records and the Atlantic Records Group. The Company’s Recorded Music operations also include Rhino, a division that specializes in marketing the Company’s music catalog through compilations and reissuances of previously released music and video titles, as well as in the licensing of recordings to and from third parties for various uses, including film and television soundtracks. The Company also conducts its Recorded Music operations through a collection of additional record labels, including, among others, Asylum, Big Beat, East West, Elektra, Erato, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Rykodisc, Sire, Warner Classics, Warner Music Nashville, and Word. | |
Outside the U.S., Recorded Music activities are conducted in more than 50 countries primarily through various subsidiaries, affiliates and non-affiliated licensees. Internationally the Company engages in the same activities as in the U.S.: discovering and signing artists and distributing, marketing and selling their recorded music. In most cases, the Company also markets and distributes the records of those artists for whom the Company’s domestic record labels have international rights. In certain smaller markets, the Company licenses to unaffiliated third-party record labels the right to distribute the Company’s records. The Company’s international artist services operations also include a network of concert promoters through which it provides resources to coordinate tours for the Company’s artists and other artists. | |
The Company’s Recorded Music distribution operations include Warner-Elektra-Atlantic Corporation (“WEA Corp.”), which markets and sells music and video products to retailers and wholesale distributors in the U.S., Alternative Distribution Alliance (“ADA”), which distributes the products of independent labels to retail and wholesale distributors in the U.S.; various distribution centers and ventures operated internationally, an 80% interest in Word, which specializes in the distribution of music products in the Christian retail marketplace, and the Company’s worldwide artist and label-services organization, including ADA Worldwide, which provides distribution services outside of the U.S. through a network of affiliated and non-affiliated distributors. | |
In addition to the Company’s Recorded Music products being sold in physical retail outlets, Recorded Music products are also sold in physical form to online physical retailers such as Amazon.com, barnesandnoble.com and bestbuy.com and in digital form to online digital download services such as Apple’s iTunes and Google Play, and are otherwise exploited by digital subscription services such as Spotify, Rhapsody and Deezer, and digital radio services such as Pandora, iTunes Radio and iHeart Radio. | |
The Company has integrated the sale of digital content into all aspects of its Recorded Music and Music Publishing businesses including Artist & Repertoire (“A&R”), marketing, promotion and distribution. The Company’s business development executives work closely with A&R departments to make sure that while a record is being made, digital assets are also created with all distribution channels in mind, including subscription services, social networking sites, online portals and music-centered destinations. The Company also works side by side with its mobile and online partners to test new concepts. The Company believes existing and new digital businesses will be a significant source of growth for at least the next several years and will provide new opportunities to successfully monetize its assets and create new revenue streams. The proportion of digital revenues attributed to each distribution channel varies by region and proportions may change as the roll out of new technologies continues. As an owner of musical content, the Company believes it is well positioned to take advantage of growth in digital distribution and emerging technologies to maximize the value of its assets. | |
The Company is also diversifying its revenues beyond its traditional businesses by entering into expanded-rights deals with recording artists in order to partner with artists in other areas of their careers. Under these agreements, the Company provides services to and participates in artists’ activities outside the traditional recorded music business. The Company built artist services capabilities and platforms for exploiting this broader set of music-related rights and participating more broadly in the monetization of the artist brands it help create. | |
The Company believes that entering into artist services and expanded-rights deals and enhancing its artist services capabilities will permit it to diversify revenue streams and capitalize on revenue opportunities in merchandising, fan clubs, sponsorship, concert promotion and touring. This will provide for improved long-term relationships with artists and allow us to more effectively connect artists and fans. | |
Music Publishing Operations | |
Where recorded music is focused on exploiting a particular recording of a composition, music publishing is an intellectual property business focused on the exploitation of the composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, the Company’s Music Publishing business garners a share of the revenues generated from use of the composition. | |
The Company’s Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in Los Angeles with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. The Company owns or controls rights to more than one million musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over decades, its award-winning catalog includes over 65,000 songwriters and composers and a diverse range of genres including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative, gospel and other Christian music. Warner/Chappell also administers the music and soundtracks of several third-party television and film producers and studios, including Lucasfilm, Ltd., Hallmark Entertainment and Disney Music Publishing. Since 2012, Warner/Chappell has been making an effort to augment its film and TV music business, with the acquisitions of certain songs and recordings from numerous critically acclaimed films and TV shows. These acquisitions will help Warner/Chappell take advantage of the higher margins and strong synchronization and performance income in the TV/film space. The Company’s production music library business includes Non-Stop Music, Groove Addicts Production Music Library, Carlin Recorded Music Library and 615 Music, collectively branded as Warner/Chappell Production Music. |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
Basis of Consolidation | |
The accompanying financial statements present the consolidated accounts of all entities in which the Company has a controlling voting interest and/or variable interest required to be consolidated in accordance with U.S. GAAP. All inter-company balances and transactions have been eliminated. Certain reclassifications have been made to the prior fiscal years’ consolidated financial statements to conform with the current fiscal-year presentation. | |
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”) requires the Company first evaluate its investments to determine if any investments qualify as a variable interest entity (“VIE”). A VIE is consolidated if the Company is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has both (i) the power to control the most significant activities of the VIE and (ii) either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If an entity is not deemed to be a VIE, the Company consolidates the entity if the Company has a controlling voting interest. | |
The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. The fiscal year ended September 30, 2013 ended on September 27, 2013, the fiscal year ended September 30, 2012 ended on September 28, 2012, and the twelve months ended September 30, 2011 ended on September 30, 2011. For convenience purposes, the Company continues to date its financial statements as of September 30. | |
The Company has performed a review of all subsequent events through the date the financial statements were issued, and has determined that other than described in Note 20 no additional disclosures are necessary. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
3. Summary of Significant Accounting Policies | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||
Business Combinations | |||||||||||||||||
The Company accounts for its business acquisitions under the FASB ASC Topic 805, Business Combination (“ASC 805”) guidance for business combinations. The total cost of acquisitions is allocated to the underlying identifiable net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset useful lives and market multiples, among other items. | |||||||||||||||||
Cash and Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. The Company includes checks outstanding at year end as a component of accounts payable, instead of a reduction in its cash balance. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value. | |||||||||||||||||
Sales Returns and Allowance for Doubtful Accounts | |||||||||||||||||
Management’s estimate of physical recorded music products that will be returned, and the amount of receivables that will ultimately be collected is an area of judgment affecting reported revenues and operating income. In estimating physical product sales that will be returned, management analyzes vendor sales of product, historical return trends, current economic conditions, and changes in customer demand. Based on this information, management reserves a percentage of any physical product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale. | |||||||||||||||||
Similarly, the Company monitors customer credit risk related to accounts receivable. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. On an ongoing basis, the Company tracks customer exposure based on news reports, ratings agency information and direct dialogue with customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the payment terms previously granted to them should be modified. The Company also monitors payment levels from customers, and a provision for estimated uncollectible amounts is maintained based on such payment levels, historical experience, management’s views on trends in the overall receivable agings and, for larger accounts, analyses of specific risks on a customer specific basis. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. The Company has no Recorded Music customers that individually represent more than 10% of the Company’s consolidated gross accounts receivable. As such, the Company does not believe there is any significant collection risk. | |||||||||||||||||
In the Music Publishing business, the Company collects a significant portion of its royalties from copyright collection societies around the world. Collection societies and associations generally are not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. Accordingly, the Company does not believe there is any significant collection risk from such societies. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of DVDs, CDs and related music products, as well as published sheet music and songbooks. Inventories are stated at the lower of cost or estimated realizable value. Cost is determined using first-in, first-out (“FIFO”) and average cost methods, which approximate cost under the FIFO method. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost. | |||||||||||||||||
Derivative and Financial Instruments | |||||||||||||||||
The Company accounts for these investments as required by the FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized on the balance sheet at fair value. ASC 815 also provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. In addition, the ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. | |||||||||||||||||
The carrying value of the Company’s financial instruments approximates fair value, except for certain differences relating to long-term, fixed-rate debt (see Note 19) and other financial instruments that are not significant. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques. | |||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant and equipment existing at the date of the Merger or acquired in conjunction with subsequent business combinations are recorded at fair value. All other additions are recorded at historical cost. Depreciation is calculated using the straight-line method based upon the estimated useful lives of depreciable assets as follows: five to seven years for furniture and fixtures, periods of up to five years for computer equipment and periods of up to seven years for machinery and equipment. Buildings are depreciated over periods of up to forty years. Leasehold improvements are depreciated over the life of the lease or estimated useful lives of the improvements, whichever period is shorter. | |||||||||||||||||
Internal-Use Software Development Costs | |||||||||||||||||
As required by FASB ASC Subtopic 350-40, Internal-Use Software (“ASC Topic 350-40”), the Company capitalizes certain external and internal computer software costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing and installation activities. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software costs are depreciated over the estimated useful life of the underlying project on a straight-line basis, generally not exceeding five years and are recorded as a component of depreciation expense. | |||||||||||||||||
Accounting for Goodwill and Other Intangible Assets | |||||||||||||||||
In accordance with FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”), the Company accounts for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price over the fair value of net assets, including the amount assigned to identifiable intangible assets. Pursuant to this guidance, the Company does not amortize the goodwill balance and instead, performs an annual impairment test to assess the fair value of goodwill over its carrying value. Identifiable intangible assets with finite lives are amortized over their useful lives. | |||||||||||||||||
Goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, its goodwill is not impaired and the second step of the impairment test is not necessary. If the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. The second step of the goodwill impairment test compares the implied fair value of the reporting unit goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess. Goodwill is tested annually for impairment during the fourth quarter of each fiscal year as of July 1 or earlier upon the occurrence of certain events or substantive changes in circumstances. | |||||||||||||||||
The Company performs an annual impairment test of its indefinite-lived intangible assets unless events occur which trigger the need for an earlier impairment test. The impairment test involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The impairment test requires management to make assumptions about future conditions impacting the value of the indefinite-lived intangible assets, including projected growth rates, cost of capital, effective tax rates, tax amortization periods, royalty rates, market share and others. | |||||||||||||||||
The impairment test for other intangible assets not subject to amortization involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair value of intangible assets not subject to amortization are determined using a DCF analysis. Common among such an approach is the “relief from royalty” methodology, which is used in estimating the fair value of the Company’s trademarks. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar trademarks are being licensed in the marketplace. | |||||||||||||||||
Valuation of Long-Lived Assets | |||||||||||||||||
The Company periodically reviews the carrying value of its long-lived assets, including finite lived intangibles, property, plant and equipment and amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan to dispose of the assets, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. If it is determined that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life shall be changed, and the remaining carrying amount of the asset shall be amortized prospectively over that revised remaining useful life. | |||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||
Comprehensive income (loss), which is reported in the accompanying consolidated statements of equity (deficit), consists of net income (loss) and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss). For the Company, the components of other comprehensive income (loss) primarily consist of foreign currency translation gains and losses, minimum pension liabilities, and deferred gains and losses on financial instruments designated as hedges under ASC 815, which include interest-rate swap and foreign exchange contracts. The following summary sets forth the components of other comprehensive income (loss), net of related taxes, which have been accumulated in equity (deficit) since September 30, 2010 (Predecessor): | |||||||||||||||||
Foreign | Minimum | Deferred Gains | Accumulated | ||||||||||||||
Currency | Pension | (Losses) | Other | ||||||||||||||
Translation | Liability | On Derivative | Comprehensive | ||||||||||||||
Gain (Loss) | Adjustment | Financial | Income (Loss) | ||||||||||||||
Instruments | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2010 (Predecessor) | $ | 58 | $ | (3 | ) | $ | (2 | ) | $ | 53 | |||||||
Activity through July 19, 2011 | 9 | — | 2 | 11 | |||||||||||||
Balance at July 19, 2011 (Predecessor) | $ | 67 | $ | (3 | ) | $ | — | $ | 64 | ||||||||
Successor activity from July 20, 2011 through September 30, 2011 | (35 | ) | 1 | 1 | (33 | ) | |||||||||||
Balance at September 30, 2011 (Successor) | $ | (35 | ) | $ | 1 | $ | 1 | $ | (33 | ) | |||||||
Activity through September 30, 2012 | (19 | ) | (7 | ) | — | (26 | ) | ||||||||||
Balance at September 30, 2012 (Successor) | $ | (54 | ) | $ | (6 | ) | $ | 1 | $ | (59 | ) | ||||||
Activity through September 30, 2013 | (3 | ) | 2 | (1 | ) | (2 | ) | ||||||||||
Balance at September 30, 2013 (Successor) | $ | (57 | ) | $ | (4 | ) | $ | — | $ | (61 | ) | ||||||
Foreign Currency Translation | |||||||||||||||||
The financial position and operating results of substantially all foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity (deficit) as a component of accumulated other comprehensive income (loss). | |||||||||||||||||
Revenues | |||||||||||||||||
Recorded Music | |||||||||||||||||
As required by FASB ASC Topic 605, Revenue Recognition (“ASC 605”), the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. | |||||||||||||||||
Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and title and risk of loss have been transferred. In accordance with industry practice and as is customary in many territories, certain products, such as CDs and DVDs, are sold to customers with the right to return unsold items. Revenues from such sales are recognized upon shipment based on gross sales less a provision for future estimated returns. Revenues from the sale of Recorded Music products through digital distribution channels are recognized when the products are sold and related sales accounting reports are delivered by the providers. | |||||||||||||||||
Music Publishing | |||||||||||||||||
Music Publishing revenues are earned from the receipt of royalties relating to the licensing of rights in musical compositions, and the sale of published sheet music and songbooks. The receipt of royalties principally relates to amounts earned from the public performance of copyrighted material, the mechanical reproduction of copyrighted material on recorded media including digital formats, and the use of copyrighted material in synchronization with visual images. Consistent with industry practice, music publishing royalties, except for synchronization royalties and mechanical royalties in the U.S., generally are recognized as revenue when cash is received. Synchronization revenue and mechanical revenue in the U.S. are recognized as revenue on an accrual basis when all revenue recognition criteria are met in accordance with ASC 605. | |||||||||||||||||
Gross Versus Net Revenue Classification | |||||||||||||||||
In the normal course of business, the Company acts as an intermediary or agent with respect to certain payments received from third parties. For example, the Company distributes music product on behalf of third-party record labels. As required by FASB ASC Subtopic 605-45, Principal Agent Considerations, such transactions are recorded on a “gross” or “net” basis depending on whether the Company is acting as the “principal” in the transaction or acting as an “agent” in the transaction. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership and, accordingly, revenues are recorded on a gross basis. For those transactions in which the Company does not have substantial risks and rewards of ownership, the Company is considered an agent and, accordingly, revenues are recorded on a net basis. | |||||||||||||||||
To the extent revenues are recorded on a gross basis, any participations and royalties paid to third parties are recorded as expenses so that the net amount (gross revenues less expenses) flows through operating income. To the extent revenues are recorded on a net basis, revenues are reported based on the amounts received, less participations and royalties paid to third parties. In both cases, the impact on operating income is the same whether the Company records the revenues on a gross or net basis. | |||||||||||||||||
Based on an evaluation of the individual terms of each contract and whether the Company is acting as principal or agent, the Company generally records revenues from the distribution of recorded music product on behalf of third-party record labels on a gross basis. However, revenues are recorded on a net basis for recorded music compilations distributed by other record companies where the Company has a right to participate in the profits. | |||||||||||||||||
Royalty Advances and Royalty Costs | |||||||||||||||||
The Company regularly commits to and pays royalty advances to its recording artists and songwriters in respect of future sales. The Company accounts for these advances under the related guidance in FASB ASC Topic 928, Entertainment—Music (“ASC 928”). Under ASC 928, the Company capitalizes as assets certain advances that it believes are recoverable from future royalties to be earned by the recording artist or songwriter. Advances vary in both amount and expected life based on the underlying recording artist or songwriter. Advances to recording artists or songwriters with a history of successful commercial acceptability will typically be larger than advances to a newer or unproven recording artist or songwriter. In addition, in most cases these advances represent a multi-album release or multi-song obligation and the number of albums releases and songs will vary by recording artist or songwriter. | |||||||||||||||||
The Company’s decision to capitalize an advance to a recording artist or songwriter as an asset requires significant judgment as to the recoverability of the advance. The recoverability is assessed upon initial commitment of the advance based upon the Company’s forecast of anticipated revenue from the sale of future and existing albums or songs. In determining whether the advance is recoverable, the Company evaluates the current and past popularity of the recording artist or songwriter, the sales history of the recording artist or songwriter, the initial or expected commercial acceptability of the product, the current and past popularity of the genre of music that the product is designed to appeal to, and other relevant factors. Based upon this information, the Company expenses the portion of any advance that it believes is not recoverable. In most cases, advances to recording artists or songwriters without a history of success and evidence of current or past popularity will be expensed immediately. Significant advances are individually assessed for recoverability continuously and at minimum on a quarterly basis. As part of the ongoing assessment of recoverability, the Company monitors the projection of future sales based on the current environment, the recording artist’s or songwriter’s ability to meet their contractual obligations as well as the Company’s intent to support future album releases or songs from the recording artist or songwriter. To the extent that a portion of an outstanding advance is no longer deemed recoverable, that amount will be expensed in the period the determination is made. | |||||||||||||||||
Advertising | |||||||||||||||||
As required by the FASB ASC Subtopic 720-35, Advertising Costs (“ASC 720-35”), advertising costs, including costs to produce music videos used for promotional purposes, are expensed as incurred. Advertising expense amounted to approximately $70 million, $67 million, $11 million and $77 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor) and for the period from October 1, 2010 to July 19, 2011 (Predecessor), respectively. Deferred advertising costs, which principally relate to advertisements that have been paid for but not been exhibited or services that have not been received, were not material for all periods presented. | |||||||||||||||||
Shipping and Handling | |||||||||||||||||
The costs associated with shipping goods to customers are recorded as cost of revenues. Shipping and handling charges billed to customers are included in revenues. | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
The Company accounts for share-based payments as required by FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense. Under the fair value recognition provision of ASC 718, equity classified share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Under the Predecessor, the Company had applied the modified prospective method and expensed deferred share-based compensation on an accelerated basis over the vesting period of the share-based payment award. Expected forfeitures were included in determining share-based compensation expense. | |||||||||||||||||
Predecessor estimated the fair value of its grants made using the binomial method, which included assumptions related to volatility, dividend yield and risk-free interest rate. Predecessor also awarded or sold restricted shares to its employees. For restricted shares awarded or sold below market value, the accounting charge was measured at the grant date and amortized ratably as non-cash compensation over the vesting term. The Company does not currently have any share-based payments classified as equity. | |||||||||||||||||
Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price. During fiscal year 2013, the Company initiated a long term incentive plan that has liability classification for share-based compensation costs. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are provided using the asset and liability method presented by FASB ASC Topic 740, Income Taxes (“ASC Topic 740”). Under this method, income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current fiscal year and include the results of any differences between U.S. GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating loss, capital loss and general business credit carry forwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statements and income tax purposes, as determined under enacted tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. | |||||||||||||||||
From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company’s tax returns are more likely than not of being sustained. | |||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2011-05, Presentation of Comprehensive Income. ASU 2011-05 requires entities to present items of net income and other comprehensive income either in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive, statements of operations and other comprehensive income. The Company simultaneously adopted ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 defers the requirement to present components of reclassifications of comprehensive income on the statement of comprehensive income, with all other requirements of ASU 2011-05 unaffected. The adoption of these standard updates did not have a significant impact on the Company’s financial statements, other than presentation. | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2011-08, Testing Goodwill for Impairment. ASU 2011-08 provides entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
During the fourth quarter of fiscal 2013, the Company adopted ASU 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, which was effective upon issuance for financial statements that have not been issued. This ASU allows an indefinite deferral of a previously expiring piece of guidance, which means that the Company can continue to use the intrinsic value method for its share-based compensation plan indefinitely. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify which financial assets and financial liabilities are included within the scope of ASU 2011-11. These ASUs require additional quantitative and qualitative disclosures over financial instruments and derivative instruments that are offset on the balance sheet or subject to master netting arrangements. Both ASUs are effective for annual and interim reporting periods for fiscal years beginning on or after January 1, 2013. The adoption of these standards is not expected to have a significant impact on the Company’s financial statements, other than presentation. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires entities to disclose, in one place, information about the amounts reclassified out of accumulated other comprehensive income by component. ASU 2013-02 is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2012. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements, other than disclosure. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU attempts to eliminate diversity in practice by requiring an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements, other than presentation. |
Acquisition_of_Parlophone_Labe
Acquisition of Parlophone Label Group | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition of Parlophone Label Group | ' | ||||||||
4. Acquisition of Parlophone Label Group | |||||||||
On February 6, 2013, the Company signed a definitive agreement to acquire 100% of the shares of the Parlophone Label Group from Universal Music Group, a division of Vivendi, for £487 million, subject to a closing working capital adjustment, in an all-cash transaction (the “Acquisition”) pursuant to a Share Sale and Purchase Agreement (the “PLG Agreement”) by and among Warner Music Holdings Limited, an English company and wholly-owned subsidiary of the Company (“WM Holdings UK”), certain related entities identified in the PLG Agreement (such entities, together with WM Holdings UK, the “Buyers”), Acquisition Corp., as Buyers’ Guarantor, and EGH1 BV, a Dutch company, EMI Group Holdings BV, a Dutch company, and Delta Holdings BV, a Dutch company, as Sellers (as defined therein) (collectively, the “PLG Sellers”), and Universal International Music BV, a Dutch company, as Sellers’ Guarantor (as defined therein), pursuant to which the PLG Sellers agreed to sell, and the Buyers agreed to buy, the outstanding shares of capital stock of PLG Holdco Limited, an English company (“PLG Holdco”) and certain related entities identified in the PLG Agreement (such entities, together with PLG Holdco, “PLG”). | |||||||||
On June 28, 2013, the parties to the PLG Agreement entered into a Deed of Variation, resulting in an Amended and Restated Share Sale and Purchase Agreement (the “PLG Amended Agreement”). The PLG Amended Agreement provides for, among other amendments, a revision to the definition of “Aggregate Payments” to increase this amount from the consideration paid for the outstanding shares of capital stock in PLG Holdco and certain related entities identified in the PLG Amended Agreement to an amount that reflects the entire purchase price. The adjustment to this definition results in a greater potential cap on liability for the PLG Sellers in connection with certain claims that may be brought under the PLG Amended Agreement. On July 1, 2013, the Company completed the Acquisition. | |||||||||
In connection with the Acquisition, the Company incurred $38 million in professional fees and integration costs, as well as an $11 million fee under the Management Agreement (defined below) during the fiscal year ended September 30, 2013. | |||||||||
The Acquisition was accounted for in accordance with ASC 805, using the acquisition method of accounting. The assets and liabilities of the Company, including identifiable intangible assets, have been measured at their fair value primarily using Level 3 inputs (see Note 19 for additional information on fair value inputs). Determining the fair value of the assets acquired and liabilities assumed requires judgment and involved the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset useful lives and market multiples, among other items. The use of different estimates and judgments could yield materially different results. | |||||||||
The table below presents (i) the preliminary estimate of the Acquisition consideration as it relates to the acquisition of PLG by the Buyers and (ii) the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of July 1, 2013 (in millions): | |||||||||
Purchase Price | £ | 487 | |||||||
Preliminary Working Capital Adjustment | 13 | ||||||||
Adjusted Purchase Price | £ | 500 | |||||||
Foreign Exchange Rate at July 1, 2013 | 1.53 | ||||||||
Adjusted Purchase Price in U.S. dollars | $ | 765 | |||||||
Fair Value of assets acquired and liabilities assumed: | |||||||||
Cash | 46 | ||||||||
Accounts receivable | 80 | ||||||||
Other current assets | 8 | ||||||||
Property, plant and equipment | 39 | ||||||||
Intangible assets | 764 | ||||||||
Accounts payable | (83 | ) | |||||||
Royalties payable | (147 | ) | |||||||
Other current liabilities | (21 | ) | |||||||
Deferred revenue | (25 | ) | |||||||
Deferred tax liabilities | (139 | ) | |||||||
Other noncurrent liabilities | (20 | ) | |||||||
Fair value of net assets acquired | 502 | ||||||||
Goodwill recorded | 263 | ||||||||
Total purchase price allocated | $ | 765 | |||||||
The excess of the purchase price, over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets and deferred tax adjustments, has been recorded to goodwill. The goodwill recorded as part of the Acquisition reflects the expected value to be generated from the continuing transition of the music industry and the expected resulting cost savings; cost and revenue synergies to be realized; as well as any intangible assets that do not qualify for separate recognition. The resulting goodwill has been allocated to our Recorded Music reportable segment. The Company does not expect the goodwill recognized to be deductible for income tax purposes. Any impairment charges made in future periods associated with goodwill will not be tax deductible. | |||||||||
The final allocation of the purchase price is pending determination of the final consideration, including the determination of the final working capital adjustment pursuant to the mechanism set forth in the PLG Agreement. | |||||||||
The components of the intangible assets identified in the table above and the related useful lives, allocated to the Company’s Recorded Music reportable segment, are as follows: | |||||||||
Value | Useful Life | ||||||||
(in millions) | |||||||||
Trademark and trade name | $ | 17 | Indefinite | ||||||
Catalog | 442 | 13 years | |||||||
Artist contracts | 305 | 10 years | |||||||
Pro Forma Financial Information (unaudited) | |||||||||
The following unaudited pro forma information has been presented as if the Acquisition occurred on October 1, 2011. This information is based on historical results of operations, adjusted to give effect to pro forma events that are (i) directly attributable to the Acquisition; (ii) factually supportable; and (iii) expected to have a continuing impact on the Company’s combined results. Additionally, certain pro forma adjustments have been made to the historical results of PLG in order to (i) convert them to U.S. GAAP; (ii) conform their accounting policies to those applied by the Company; (iii) present them in U.S. dollars; and (iv) align accounting periods. The unaudited pro forma results do not reflect the realization of any cost savings as a result of restructuring activities and other cost savings initiatives planned subsequent to the Acquisition or the related estimated restructuring charges contemplated in association with any such expected cost savings. Such charges will be expensed in the appropriate accounting periods. The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Acquisition had taken place at the beginning of fiscal 2012. | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Revenue | $ | 3,131 | $ | 3,130 | |||||
Operating income (loss) | 135 | (392 | ) | ||||||
Net loss attributable to Warner Music Group Corp. | (154 | ) | (609 | ) | |||||
Actual results related to PLG included in the Consolidated Statements of Operations for the fiscal year ended September 30, 2013 relate to the transition period from July 1, 2013 to September 30, 2013 and consist of revenues of $59 million and operating loss of $32 million. |
Merger
Merger | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Merger | ' | ||||||||
5. Merger | |||||||||
As further described in Note 1, as a result of the Merger, effective as of July 20, 2011, the Company was acquired by Parent. Merger transaction costs of approximately $53 million were expensed as follows: $10 million and $43 million from July 20, 2011 to September 30, 2011 (Successor) and from October 1, 2010 to July 19, 2011 (Predecessor), respectively. | |||||||||
The Merger was accounted for in accordance with ASC 805, using the acquisition method of accounting. The assets and liabilities of the Company, including identifiable intangible assets, have been measured at their fair value primarily using Level 3 inputs (see Note 19 for additional information on fair value inputs). Determining the fair value of the assets acquired and liabilities assumed requires judgment and involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items. The use of different estimates and judgments could yield materially different results. | |||||||||
The table below presents the consideration transferred and the fair value of the assets acquired and liabilities assumed as a result of the Merger (in millions). | |||||||||
Cash paid to acquire outstanding WMG shares | $ | 1,228 | |||||||
Cash paid to settle equity awards | 50 | ||||||||
Total cash consideration | 1,278 | ||||||||
Less: Cash paid by WMG | (179 | ) | |||||||
Net Investment | 1,099 | ||||||||
WMG shares previously held by Parent | 30 | ||||||||
Total consideration | $ | 1,129 | |||||||
Fair Value of assets acquired and liabilities assumed: | |||||||||
Cash | $ | 140 | |||||||
Accounts receivable | 331 | ||||||||
Inventory | 28 | ||||||||
Artist advances | 341 | ||||||||
Property, plant and equipment | 182 | ||||||||
Intangible assets | 2,879 | ||||||||
Other assets | 117 | ||||||||
Current liabilities | (1,544 | ) | |||||||
Deferred income tax liabilities | (363 | ) | |||||||
Deferred revenue | (115 | ) | |||||||
Other noncurrent liabilities | (173 | ) | |||||||
Debt | (2,049 | ) | |||||||
Noncontrolling interests | (17 | ) | |||||||
Fair value of net liabilities assumed | (243 | ) | |||||||
Goodwill recorded | 1,372 | ||||||||
Total consideration allocated | $ | 1,129 | |||||||
Goodwill is calculated as the excess of the consideration paid over the net liabilities assumed. The goodwill recorded as part of the Merger primarily reflects the expected value to be generated from the continued transition of the music industry and the expected resulting cost savings, as well as any intangible assets that do not qualify for separate recognition. Goodwill has been allocated to reportable segments as follows: Recorded Music $908 million and Music Publishing $464 million. | |||||||||
The components of the intangible assets identified in the table above and the related useful lives, allocated to the Company’s reportable segments, are as follows: | |||||||||
Value | Useful | ||||||||
Life | |||||||||
(in millions) | |||||||||
Recorded Music | |||||||||
Trademarks and trade names | $ | 51 | Indefinite | ||||||
Trademarks and trade names | 7 | 7 years | |||||||
Catalog | 560 | 5-11 years | |||||||
Artist contracts | 520 | 8-12 years | |||||||
Music Publishing | |||||||||
Trademarks/trade names | $ | 51 | Indefinite | ||||||
Copyrights | 1,530 | 28 years | |||||||
Songwriter contracts | 160 | 29 years |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
6. Property, Plant and Equipment | |||||||||
Property, plant and equipment consist of the following: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Land | $ | 16 | $ | 9 | |||||
Buildings and improvements | 81 | 47 | |||||||
Furniture and fixtures | 13 | 12 | |||||||
Computer hardware and software | 155 | 134 | |||||||
Construction in progress | 14 | 1 | |||||||
Machinery and equipment | 9 | 9 | |||||||
288 | 212 | ||||||||
Less accumulated depreciation | (108 | ) | (60 | ) | |||||
$ | 180 | $ | 152 | ||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
7. Goodwill and Intangible Assets | |||||||||||||
Goodwill | |||||||||||||
The following analysis details the changes in goodwill for each reportable segment: | |||||||||||||
Recorded | Music | Total | |||||||||||
Music | Publishing | ||||||||||||
(in millions) | |||||||||||||
Balance at September 30, 2011 (Successor) | $ | 908 | $ | 464 | $ | 1,372 | |||||||
Acquisitions | — | — | — | ||||||||||
Dispositions | — | — | — | ||||||||||
Other adjustments | 8 | — | 8 | ||||||||||
Balance at September 30, 2012 (Successor) | 916 | 464 | 1,380 | ||||||||||
Acquisitions | 274 | — | 274 | ||||||||||
Dispositions | — | — | — | ||||||||||
Other adjustments | 14 | — | 14 | ||||||||||
Balance at September 30, 2013 (Successor) | $ | 1,204 | $ | 464 | $ | 1,668 | |||||||
The increase in goodwill during the fiscal year ended September 30, 2013 primarily includes $263 million related to the Acquisition and additional goodwill related to other Recorded Music transactions. The other adjustments during the fiscal year ended September 30, 2013 primarily represent foreign currency movements. | |||||||||||||
The Company performs its annual goodwill impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s goodwill may not be recoverable. The performance of the fiscal 2013 impairment analysis did not result in an impairment of the Company’s goodwill. | |||||||||||||
Other Intangible Assets | |||||||||||||
Other intangible assets consist of the following: | |||||||||||||
Weighted | Successor | Successor | |||||||||||
Average | September 30, | September 30, | |||||||||||
Useful Life | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Recorded music catalog | 11 years | $ | 1,006 | $ | 547 | ||||||||
Music publishing copyrights | 28 years | 1,546 | 1,508 | ||||||||||
Artist and songwriter contracts | 13 years | 983 | 667 | ||||||||||
Trademarks | 7 years | 7 | 7 | ||||||||||
3,542 | 2,729 | ||||||||||||
Accumulated amortization | (435 | ) | (230 | ) | |||||||||
Total net intangible assets subject to amortization | 3,107 | 2,499 | |||||||||||
Intangible assets not subject to amortization: | |||||||||||||
Trademarks and tradenames | Indefinite | 120 | 102 | ||||||||||
Total net other intangible assets | $ | 3,227 | $ | 2,601 | |||||||||
Amortization | |||||||||||||
Based on the amount of intangible assets subject to amortization at September 30, 2013, the expected amortization for each of the next five fiscal years and thereafter are as follows: | |||||||||||||
Fiscal Years Ending | |||||||||||||
September 30, | |||||||||||||
(in millions) | |||||||||||||
2014 | $ | 260 | |||||||||||
2015 | 260 | ||||||||||||
2016 | 250 | ||||||||||||
2017 | 210 | ||||||||||||
2018 | 210 | ||||||||||||
Thereafter | 1,917 | ||||||||||||
$ | 3,107 | ||||||||||||
The life of all acquired intangible assets is evaluated based on the expected future cash flows associated with the asset. The expected amortization expense above reflects estimated useful lives assigned to the Company’s identifiable, finite-lived intangible assets established in the accounting for the Merger and the Acquisition. |
Other_Noncurrent_Liabilities
Other Noncurrent Liabilities | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Noncurrent Liabilities | ' | ||||||||
8. Other Noncurrent Liabilities | |||||||||
Other noncurrent liabilities consist of the following: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Unfavorable and other contractual obligations | $ | 64 | $ | 59 | |||||
Accrued compensation and benefits | 67 | 48 | |||||||
Capital lease | 20 | — | |||||||
Deferred income | 9 | 4 | |||||||
Other | 56 | 36 | |||||||
$ | 216 | $ | 147 | ||||||
Debt
Debt | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
9. Debt | |||||||||
Debt Capitalization | |||||||||
Long-term debt, including the current portion, consists of the following (in millions): | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Old Revolving Credit Facility (a) | $ | — | $ | — | |||||
Revolving Credit Facility (b) | — | — | |||||||
Term Loan Facility due 2020—Acquisition Corp. (c) | 1,303 | — | |||||||
9.5% Senior Secured Notes due 2016—Acquisition Corp. (d) | — | 1,151 | |||||||
9.5% Senior Secured Notes due 2016—Acquisition Corp. (e) | — | 156 | |||||||
6.00% Senior Secured Notes due 2021—Acquisition Corp. | 450 | — | |||||||
6.25% Senior Secured Notes due 2021—Acquisition Corp. (f) | 213 | — | |||||||
11.5% Senior Notes due 2018—Acquisition Corp. (g) | 751 | 749 | |||||||
13.75% Senior Notes due 2019—Holdings | 150 | 150 | |||||||
Total debt | $ | 2,867 | $ | 2,206 | |||||
Less: current portion | 13 | — | |||||||
Total long-term debt | $ | 2,854 | $ | 2,206 | |||||
(a) | Reflects $60 million of commitments under the Old Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2012 (Successor). There were no loans outstanding under the Old Revolving Credit Facility as of September 30, 2012 (Successor). The Old Revolving Credit Facility was retired in connection with the 2012 Refinancing (as described below) and replaced with the Revolving Credit Facility. | ||||||||
(b) | Reflects $150 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2013 (Successor). There were no loans outstanding under the Revolving Credit Facility as of September 30, 2013 (Successor). | ||||||||
(c) | Principal amount of $1.310 billion less unamortized discount of $7 million. Of this amount, $13 million, representing the scheduled amortization of the Term Loan, was included in the current portion of long term debt at September 30, 2013 (Successor). | ||||||||
(d) | Face amount of $1.1 billion plus unamortized premiums of $51 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | ||||||||
(e) | Face amount of $150 million plus unamortized premiums of $6 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | ||||||||
(f) | Face amount of €158 million. Amount above represents the dollar equivalent of such notes at September 30, 2013 (Successor). | ||||||||
(g) | Face amount of $765 million less unamortized discounts of $14 million and $16 million at September 30, 2013 (Successor) and September 30, 2012 (Successor), respectively. | ||||||||
2012 Debt Refinancing | |||||||||
On November 1, 2012, the Company completed a refinancing (the “2012 Refinancing”) of its then outstanding senior secured notes due 2016. In connection with the 2012 Refinancing, the Company issued new senior secured notes consisting of $500 million aggregate principal amount of Senior Secured Notes due 2021 and €175 million aggregate principal amount of Senior Secured Notes due 2021 (the “New Secured Notes”) and entered into new senior secured credit facilities consisting of a $600 million term loan facility (the “Term Loan Facility”) and a $150 million revolving credit facility (the “Revolving Credit Facility” and, together with Term Loan Facility, the “New Senior Credit Facilities”). Acquisition Corp. is the borrower under the Revolving Credit Facility (the “Revolving Borrower”) and under the Term Loan Facility (the “Term Loan Borrower”). The proceeds from the 2012 Refinancing, together with $101 million of the Company’s available cash, were used to pay the total consideration due in connection with the tender offers for all of the Company’s previously outstanding $1.250 billion 9.50% senior secured notes due 2016 (the “Old Secured Notes”) as well as associated fees and expenses and to redeem all of the remaining notes not tendered in the tender offers. The Company also retired its existing $60 million revolving credit facility (the “Old Revolving Credit Facility”) in connection with the 2012 Refinancing, replacing it with the Revolving Credit Facility. The Company also borrowed $31 million under the Revolving Credit Facility as part of the 2012 Refinancing, which loans were repaid in full on December 3, 2012. | |||||||||
In connection with the 2012 Refinancing, the Company made a redemption payment of $1.377 billion, which included the repayment of the Company’s previously outstanding $1.250 billion Old Secured Notes, tender/call premiums of $93 million and consent fees of approximately $34 million. The Company also paid approximately $45 million in accrued interest through the closing date. | |||||||||
The Company recorded a loss on extinguishment of debt of approximately $83 million in connection with the 2012 Refinancing in the fiscal year ended September 30, 2013, which represents the difference between the redemption payment and the carrying value of the debt at the refinancing date, which included the principal value of $1.250 billion, plus unamortized premiums of $55 million, less unamortized debt issuance costs of $11 million related to the Old Secured Notes. | |||||||||
Modification of Term Loan Facility and Drawdown of Incremental Term Loan Facility | |||||||||
On May 9, 2013, Acquisition Corp. prepaid $102.5 million in aggregate principal amount of term loans under the Term Loan Facility (the “Term Loan Repayment”). Also on May 9, 2013, Acquisition Corp. entered into an amendment to the Term Loan Facility among Acquisition Corp, Holdings, the subsidiaries of Acquisition Corp. party thereto, Credit Suisse AG, as administrative agent, and the other financial institutions and lenders from time to time party thereto (the “Term Loan Credit Agreement Amendment”), providing for a $820 million delayed draw senior secured term loan facility (the “Incremental Term Loan Facility”). On July 1, 2013, Acquisition Corp. drew down the $820 million Incremental Term Loan Facility to fund the acquisition of PLG, pay fees, costs and expenses related to the acquisition and for general corporate purposes of Acquisition Corp. and its subsidiaries. | |||||||||
As part of the amendment to the Term Loan Facility, the interest rate, maturity date, and scheduled amortization were changed. | |||||||||
The loans under the Term Loan Credit Agreement Amendment bear interest at Term Loan Borrower’s election at a rate equal to (i) the Term Loan LIBOR Rate plus 2.75% per annum or (ii) the Term Loan Base Rate plus 1.75% per annum. The Term Loan LIBOR Rate shall be deemed to be not less than 1.00%. If there is a payment default at any time, then the interest rate applicable to overdue principal and interest will be the rate otherwise applicable to such loan plus 2.0% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.0% per annum above the amount that would apply to an alternative base rate loan. | |||||||||
The Term Loans under the amended Term Loan Facility will amortize in equal quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount of the amended Term Loan Facility with the balance payable on maturity date of the Term Loans. The next quarterly installment will be due December 31, 2013. The amended Term Loan Facility matures on July 1, 2020, with a springing maturity date on July 2, 2018 in the event that more than $153 million aggregate principal amount of the 11.50% Senior Notes of Acquisition Corp. due October 1, 2018 are outstanding on June 28, 2018 unless, on June 28, 2018, the senior secured indebtedness to EBITDA ratio of Acquisition Corp. is less than or equal to 3.50 to 1.00. | |||||||||
Debt Redemptions | |||||||||
On June 21, 2013, Acquisition Corp. redeemed 10% of its Senior Secured Notes due 2021, representing repayment of $50 million in aggregate principal amount of its outstanding 6.000% Senior Secured Notes due 2021 and €17.5 million in aggregate principal amount of its outstanding 6.250% Senior Secured Notes due 2021. The Company recorded a loss on extinguishment of debt of approximately $2 million in the fiscal year ended September 30, 2013, which represents the premium paid on early redemption. | |||||||||
Interest Rates | |||||||||
The loans under the Revolving Credit Facility bear interest at Revolving Borrower’s election at a rate equal to (i) Revolving LIBOR Rate plus 2.00% per annum, or (ii) the Revolving Base Rate plus 1.00% per annum. If there is a payment default at any time, then the interest rate applicable to overdue principal will be the rate otherwise applicable to such loan plus 2.0% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.0% per annum above the amount that would apply to an alternative base rate loan. The Revolving Credit Facility bears a facility fee equal to 0.50%, payable quarterly in arrears, based on the daily commitments during the preceding quarter. The Revolving Credit Facility bears customary letter of credit fees. Acquisition Corp. is also required to pay certain upfront fees to lenders and agency fees to the agent under the Revolving Credit Facility, in the amounts and at the times agreed between the relevant parties. | |||||||||
Maturity of Revolving Credit Facility | |||||||||
The Revolving Credit Facility matures on November 1, 2017. | |||||||||
Maturities of Senior Notes | |||||||||
As of September 30, 2013 (Successor), there are no scheduled maturities of notes until 2018, when $765 million is scheduled to mature. Thereafter, $813 million is scheduled to mature. | |||||||||
Interest Expense, net | |||||||||
Total interest expense, net was $203 million, $225 million, $62 million and $151 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor) and for the period from October 1, 2010 to July 19, 2011 (Predecessor). The weighted-average interest rate of the Company’s total debt was 6.9% at September 30, 2013 (Successor) and 10.5% at September 30, 2012 (Successor). |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||
10. Income Taxes | |||||||||||||||||||
The domestic and foreign pretax (loss) income from continuing operations is as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, | July 19, 2011 | ||||||||||||||||
2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Domestic | $ | (73 | ) | $ | (84 | ) | $ | (24 | ) | $ | (129 | ) | |||||||
Foreign | (152 | ) | (24 | ) | (4 | ) | (19 | ) | |||||||||||
Total | $ | (225 | ) | $ | (108 | ) | $ | (28 | ) | $ | (148 | ) | |||||||
Current and deferred income taxes (tax benefits) provided are as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, 2011 | July 19, 2011 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Federal: | |||||||||||||||||||
Current | $ | — | $ | — | $ | — | $ | — | |||||||||||
Deferred | (6 | ) | (8 | ) | 1 | (5 | ) | ||||||||||||
Foreign : | |||||||||||||||||||
Current (a) | 25 | 24 | 5 | 40 | |||||||||||||||
Deferred | (54 | ) | (18 | ) | (3 | ) | (10 | ) | |||||||||||
U.S. State: | |||||||||||||||||||
Current | 13 | 3 | — | 2 | |||||||||||||||
Deferred | (9 | ) | — | — | — | ||||||||||||||
Total | $ | (31 | ) | $ | 1 | $ | 3 | $ | 27 | ||||||||||
(a) | Includes cash withholding taxes of $9 million, $8 million, $3 million and $9 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor), for the period from October 1, 2010 to July 19, 2011 (Predecessor), respectively. | ||||||||||||||||||
The differences between the U.S. federal statutory income tax rate of 35% and income taxes provided are as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, 2011 | July 19, 2011 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Taxes on income at the U.S. federal statutory rate | $ | (79 | ) | $ | (37 | ) | $ | (10 | ) | $ | (52 | ) | |||||||
U.S. state and local taxes | 4 | 3 | — | 2 | |||||||||||||||
Foreign income taxed at different rates, including withholding taxes | 15 | 13 | 3 | 18 | |||||||||||||||
Increase in valuation allowance | 36 | 28 | 6 | 55 | |||||||||||||||
Release of valuation allowance | (1 | ) | (1 | ) | — | (11 | ) | ||||||||||||
Change in tax rates | (20 | ) | (6 | ) | — | — | |||||||||||||
Nondeductible transaction costs | 13 | — | 4 | 13 | |||||||||||||||
Other | 1 | 1 | — | 2 | |||||||||||||||
Total income tax (benefit) expense | $ | (31 | ) | $ | 1 | $ | 3 | $ | 27 | ||||||||||
For the fiscal year ended September 30, 2013 (Successor) and for the fiscal year ended September 30, 2012 (Successor), the Company incurred losses in the U.S. and certain foreign territories and has offset the tax benefit associated with these losses with a valuation allowance as the Company has determined that it is more likely than not that these losses will not be utilized. The balance of the U.S. tax attributes remaining at September 30, 2013 continues to be offset by a full valuation allowance as the Company has determined that it is more likely than not that these attributes will not be realized. Significant components of the Company’s net deferred tax assets/(liabilities) are summarized below: | |||||||||||||||||||
Successor | Successor | ||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Allowances and reserves | $ | 44 | $ | 39 | |||||||||||||||
Employee benefits and compensation | 39 | 38 | |||||||||||||||||
Other accruals | 59 | 48 | |||||||||||||||||
Long-term debt | — | 42 | |||||||||||||||||
Tax attribute carry forwards | 518 | 418 | |||||||||||||||||
Other | 1 | 1 | |||||||||||||||||
Total deferred tax assets | 661 | 586 | |||||||||||||||||
Valuation allowance | (296 | ) | (244 | ) | |||||||||||||||
Net deferred tax assets | 365 | 342 | |||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||
Depreciation, amortization and artist advances | (12 | ) | (16 | ) | |||||||||||||||
Intangible assets | (749 | ) | (650 | ) | |||||||||||||||
Total deferred tax liabilities | (761 | ) | (666 | ) | |||||||||||||||
Net deferred tax liabilities | $ | (396 | ) | $ | (324 | ) | |||||||||||||
At September 30, 2013 (Successor), the Company has U.S. federal tax net operating loss carry-forwards of $632 million, which will begin to expire in fiscal year 2024. Tax net operating loss carry forwards in state, local and foreign jurisdictions expire in various periods. In addition, the Company has foreign tax credit carry-forwards for U.S. tax purposes of $163 million, which will begin to expire in 2014. | |||||||||||||||||||
U.S. income and foreign withholding taxes have not been recorded on indefinitely reinvested earnings of certain foreign subsidiaries of approximately $116 million at September 30, 2013 (Successor). As such, no deferred income taxes have been provided for these undistributed earnings. Should these earnings be distributed, foreign tax credits and net operating losses may be available to reduce the additional federal income tax that would be payable. However, availability of these foreign tax credits is subject to limitations which make it impracticable to estimate the amount of the ultimate tax liability, if any, on these accumulated foreign earnings. | |||||||||||||||||||
The Company classifies interest and penalties related to uncertain tax positions as a component of income tax expense. As of September 30, 2013 (Successor) and September 30, 2012 (Successor), the Company had accrued $6 million and $3 million of interest and penalties, respectively. | |||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows (in millions): | |||||||||||||||||||
Balance at September 30, 2010 (Predecessor) | $ | 10 | |||||||||||||||||
Additions for current year tax positions | 1 | ||||||||||||||||||
Additions for prior year tax positions | 18 | ||||||||||||||||||
Subtractions for prior year tax positions | (18 | ) | |||||||||||||||||
Balance at July 19, 2011 (Predecessor) | $ | 11 | |||||||||||||||||
Unrecognized tax benefits assigned in purchase price accounting | $ | 11 | |||||||||||||||||
Additions for current year tax positions | — | ||||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||||
Balance at September 30, 2011 (Successor) | $ | 11 | |||||||||||||||||
Additions for current year tax positions | 4 | ||||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||||
Subtractions for prior year tax positions | (1 | ) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | 14 | |||||||||||||||||
Additions for current year tax positions | 5 | ||||||||||||||||||
Additions for prior year tax positions | 11 | ||||||||||||||||||
Subtractions for prior year tax positions | — | ||||||||||||||||||
Balance at September 30, 2013 (Successor) | $ | 30 | |||||||||||||||||
Included in the total unrecognized tax benefits at September 30, 2013 (Successor) and 2012 (Successor) are $30 million and $14 million, respectively, that if recognized, would favorably affect the effective income tax rate. The amount of the reserve for uncertain tax positions will change in the next twelve months due to uncertain resolution of various income tax matters. An estimate of the range of the possible charge cannot be made until these tax matters are further developed or resolved. | |||||||||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. and various foreign jurisdictions. The Company has completed tax audits in the U.S. and the U.K. for the tax years ending through September 30, 2008, and in Japan for the tax years ending through September 30, 2007. The Company is at various stages in the tax audit process in certain foreign and local jurisdictions. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
11. Employee Benefit Plans | |
Certain international employees, such as those in Germany and Japan, participate in locally sponsored defined benefit plans, which are not considered to be material either individually or in the aggregate and have a combined projected benefit obligation of approximately $63 million and $65 million as of September 30, 2013 (Successor) and 2012 (Successor), respectively. Pension benefits under the plans are based on formulas that reflect the employees’ years of service and compensation levels during their employment period. The Company had unfunded pension liabilities relating to these plans of approximately $43 million and $46 million recorded in its balance sheets as of September 30, 2013 and 2012, respectively. The Company uses a September 30 measurement date for its plans. For the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 through September 30, 2011 (Successor) and for the period from October 1, 2010 through July 19, 2011 (Predecessor), pension expense amounted to $4 million, $4 million, $1 million, and $3 million, respectively. | |
Certain employees also participate in defined contribution plans. The Company’s contributions to the defined contribution plans are based upon a percentage of the employees’ elected contributions. The Company’s defined contribution plan expense amounted to approximately $4 million for the fiscal year ended September 30, 2013 (Successor), $4 million for the fiscal year ended September 30, 2012 (Successor), $1 million for the period from July 20, 2011 through September 30, 2011 (Successor) and $3 million for the period from October 1, 2010 through July 19, 2011 (Predecessor). |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring | ' | ||||||||||||||||
12. Restructuring | |||||||||||||||||
In conjunction with the Acquisition, the Company undertook a plan to achieve cost savings (the “Restructuring Plan”), primarily through headcount reductions. The Restructuring Plan was approved by the CEO prior to the close of the Acquisition. Under the Restructuring Plan, the Company currently expects to record an aggregate of approximately $85 million in restructuring charges, currently estimated to be made up of employee-related costs of $61 million, real estate costs of $18 million and other costs of $6 million. Total restructuring costs of $22 million have been incurred in the fiscal year ended September 30, 2013 with respect to these actions, which consist entirely of employee-related costs. The remainder of the Restructuring Plan is expected to be completed by the end of fiscal 2015. | |||||||||||||||||
Total restructuring activity is as follows: | |||||||||||||||||
Employee- | Real Estate Costs | Other | Total | ||||||||||||||
related Costs | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | — | $ | — | $ | — | $ | — | |||||||||
Restructuring expense | 22 | — | — | 22 | |||||||||||||
Cash Payments | (12 | ) | — | — | (12 | ) | |||||||||||
Balance at September 30, 2013 (Successor) | $ | 10 | $ | — | $ | — | $ | 10 | |||||||||
The restructuring accrual, which totaled $10 million at September 30, 2013, is recorded in other current liabilities on the consolidated balance sheet. These balances reflect estimated future cash outlays. | |||||||||||||||||
A summary of the charges in the consolidated statement of operations resulting from the Restructuring Plan is shown below: | |||||||||||||||||
Successor | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Selling, general and administrative expense | $ | 22 | |||||||||||||||
Total restructuring expense | $ | 22 | |||||||||||||||
All of the above expenses were recorded in the Recorded Music reportable segment. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||||||||||||||
13. Share-Based Compensation Plans | |||||||||||||||||||||||||
Effective January 1, 2013, eligible individuals were invited to participate in the Senior Management Free Cash Flow Plan (the “Plan”). Eligible individuals include any employee, consultant or officer of the Company or any of its affiliates, who is selected by the Company’s Compensation Committee to participate in the Plan. Under the Plan, participants are allocated a specific portion of the Company’s free cash flow to use to purchase the equivalent of Company stock through the acquisition of deferred equity units. Participants also receive a grant of profit interests in a purposely established LLC holding company (the “LLC”) that represent an economic entitlement to future appreciation over an equivalent number of shares of Company stock (“matching units”). The Company’s Board of Directors authorized the issuance of up to 82.1918 shares of the Company’s common stock pursuant to the Plan, 41.0959 in respect of deferred equity units and 41.0959 in respect of matching units. The LLC currently owns 55 issued and outstanding shares. Each deferred equity unit is equivalent to 1/10,000 of a share of Company stock. The Company will allocate units to active participants each Plan year at the time that annual free cash flow bonuses for such Plan year are determined and may grant unallocated units under the Plan to certain members of current or future management. At the time that annual free cash flow bonuses for such Plan year are determined, a participant shall be credited a number of deferred equity units based on their respective allocation divided by $107.13 (the grant date intrinsic value) and an equal number of the related matching units will be allocated. The redemption price of the deferred equity units will equal the fair market value of a fractional share of the Company’s stock on the date of the settlement and the redemption price for the matching units will equal the excess, if any, of the then fair market value of one Company fractional share over the grant date intrinsic value of one fractional share. | |||||||||||||||||||||||||
The Company accounts for share-based payments as required by ASC 718. ASC 718 requires all share-based payments to employees to be recognized as compensation expense. Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price. | |||||||||||||||||||||||||
For accounting purposes, the grant date was established at the point the Company and the participant reached a mutual understanding of the key terms and conditions, in this case the date at which the participant accepted the invitation to participate in the Plan. For accounting purposes, deferred equity units are deemed to generally vest between one and seven years and matching equity units granted under the Plan are deemed to vest two years after the allocation to the participant’s account. All deferred and matching equity units will be settled in three installments in December 2018, 2019, and 2020. The deferred units will be settled at the participant’s election for cash equal to the fair market value or one fractional company share. The matching units will be settled for cash equal to the redemption price. In December 2020, all outstanding units become mandatorily redeemable at the then redemption price. Due to this mandatory redemption clause, the Company has classified the awards under the Plan as liability awards. Dividend distributions, if any, are also paid out on vested deferred equity units and are calculated on the same basis as the Company’s common shares. The Company has applied a graded (tranche-by-tranche) attribution method and expenses share-based compensation on an accelerated basis over the vesting period of the share award. | |||||||||||||||||||||||||
The following is a summary of the Company’s share awards for the period ended September 30, 2013: | |||||||||||||||||||||||||
Deferred | Matching | Deferred | Matching | Deferred Equity | Matching Equity | ||||||||||||||||||||
Equity Units | Equity Units | Equity Units | Equity Units | Units Weighted- | Units Weighted- | ||||||||||||||||||||
Fair Value | Intrinsic | Average | Average | ||||||||||||||||||||||
Value | Grant-Date | Grant-Date | |||||||||||||||||||||||
Intrinsic | Intrinsic | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Unvested units at January 1, 2013 | |||||||||||||||||||||||||
Granted | 25 | 25 | $ | 134.62 | $ | 27.49 | $ | 107.13 | $ | — | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||||||
Forfeited | (1 | ) | (1 | ) | — | — | 107.13 | — | |||||||||||||||||
Unvested units at September 30, 2013 | 24 | 24 | 134.62 | 27.49 | 107.13 | — | |||||||||||||||||||
The weighted-average grant date intrinsic value of deferred equity unit awards for the period ended September 30, 2013 was $107.13. The fair value of these deferred equity units at September 30, 2013 was $134.62. During the fiscal year ended September 30, 2013, the Company completed the 2012 Refinancing and the Acquisition. There were no units that vested in the period. There was no such activity in the comparable prior year period. | |||||||||||||||||||||||||
Compensation Expense | |||||||||||||||||||||||||
The Company recognized non-cash compensation expense related to its share-based compensation plan of $19 million for the fiscal year ended September 30, 2013. Of the $19 million, $12 million related to awards for employees and $7 million related to awards for non-employees for the fiscal year ended September 30, 2013. The Company recognized non-cash compensation expense related to its previous share-based compensation plans of $24 million for the period from October 1, 2010 to July 19, 2011 (Predecessor) that was terminated at the time of the Merger. | |||||||||||||||||||||||||
In addition, as of September 30, 2013, the Company had approximately $20 million of unrecognized compensation costs related to its unvested share awards. The remaining weighted average period over which total compensation related to unvested awards is expected to be recognized is 3 years. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
14. Related Party Transactions | |
Management Agreement | |
Upon completion of the Merger, the Company and Holdings entered into a management agreement with Access, dated as of the Merger Closing Date (the “Management Agreement”), pursuant to which Access will provide the Company and its subsidiaries, with financial, investment banking, management, advisory and other services. Pursuant to the Management Agreement, the Company, or one or more of its subsidiaries, will pay Access an annual fee initially equal to the greater of (i) the sum of (x) a base amount of approximately $9 million and (y) 1.5% of the aggregate amount of Acquired EBITDA (as defined below) as at such time or (ii) 1.5% of the EBITDA (as defined in the indenture governing the WMG Holdings Corp. 13.75% Senior Notes due 2019 as required by the Management Agreement) of the Company for the applicable fiscal year, plus expenses, and a specified transaction fee for certain types of transactions completed by Holdings or one or more of its subsidiaries, plus expenses. The amount of “Acquired EBITDA” at any time shall be equal to sum of the amounts of positive EBITDA of businesses, companies or operations acquired directly or indirectly by the Company from and after the completion of the Merger, each such amount of positive EBITDA as calculated (by Access in its sole discretion) for the four fiscal quarters most recently ended for which internal financial statements are available at the date of the pertinent acquisition. In fiscal 2013, the base amount for the annual fee due under the Management Agreement was increased from $6 million to approximately $9 million to reflect the aggregate amount of Acquired EBITDA, primarily associated with the acquisition of PLG. The Annual Fee shall be calculated and payable as follows: (i) one-quarter of the Base Amount in effect on the first day of each fiscal quarter shall be paid on such date, in advance for the fiscal quarter then commencing and (ii) following the completion of every full fiscal year after the date hereof, once internal financial statements for such fiscal year are available, the Company and Access shall jointly calculate the EBITDA of the Company for such fiscal year and the Company shall pay to Access the amount, if any, by which 1.5% of such EBITDA exceeds the sum of the amounts paid in respect of such fiscal year pursuant to clause (i) above. The Company also paid Access an $11 million transaction fee related to the Acquisition in fiscal 2013. The Company and Holdings agreed to indemnify Access and certain of its affiliates against all liabilities arising out of performance of the Management Agreement. | |
The Company recorded expense of $19 million for the fiscal year ended September 30, 2013 (Successor), $8 million for the fiscal year ended September 30, 2012 (Successor) and $1 million for the period from July 20, 2011 to September 30, 2011 (Successor) related to the Management Agreement with Access, and such amounts have been included as a component of selling, general and administrative expense in the accompanying statement of operations. Such costs incurred by the Company were approximately $8 million for the fiscal years ended September 30, 2013 and September 30, 2012, which includes the annual fee and reimbursement of certain expenses in connection with the Management Agreement, but excludes $2 million of expenses reimbursed related to certain consultants with full time roles at the Company for both the fiscal year ended September 30, 2013 and the fiscal year ended September 30, 2012. For the fiscal year ended September 30, 2013, the Company also incurred an $11 million transaction fee related to the Acquisition. | |
Sublease Arrangements with Related Party | |
The Company entered into an agreement on September 27, 2011 with Access Industries (UK) Limited, an affiliate of Access, to sublease certain office space from one of the Company’s subsidiaries. In connection with the agreement, the Company will receive less than $0.3 million per year. For the fiscal year ended September 30, 2013 (Successor), the fiscal year ended September 30, 2012 (Successor) and for the period from July 20, 2011 through September 30, 2011 (Successor), an immaterial amount was recorded as a reduction of rent expense in the accompanying statement of operations. | |
On May 6, 2013, the Company entered into a lease agreement with Access Industries, Inc., an affiliate of Access, for the use of office space leased by Access at the building at 450 West 14th Street in New York City. For the fiscal year ended September 30, 2013, rent expense incurred was less than $0.2 million. The remaining rental commitments at September 30, 2013 totaled $0.3 million through July 31, 2014. The current monthly lease fee is based on the per foot lease costs to the Company of its current headquarters space, which represent market terms. This fee will be updated to reflect the per foot lease costs of the Company’s new headquarters space, but we do not expect this amount to change materially as a result. | |
Deezer | |
Access owns a minority equity interest in Blogmusik SAS, a French company trading under the name Deezer (“Deezer”), and is represented on Deezer’s Board of Directors. Subsidiaries of the Company, Warner Music Inc. and WEA International Inc., have been a party to license arrangements with Deezer since 2008, which provide for the use of the Company’s content on Deezer’s ad-supported and subscription streaming services, as well as a worldwide PC only and portable subscription service (excluding the USA, Japan and France), pursuant to which Deezer is required to pay fees to WEA International Inc. Deezer is also required to make payments to WEA International Inc. in connection with certain bundling arrangements entered into between Deezer and certain telecommunication service providers. In fiscal year 2013, Deezer paid to WEA International Inc. an aggregate amount of approximately $9 million in connection with the foregoing arrangements. | |
Southside Earn-Out | |
In December 2010, the Company acquired Southside Independent Music Publishing, LLC and contractually agreed to provide contingent earn-out payments to Cameron Strang, the former owner of Southside and currently the Chairman and CEO, Warner/Chappell Music, provided specified performance goals are achieved. The goals relate to achievement of specified NPS (“net publishers share,” a measure of earnings) requirements by the acquired assets during the five-year period following closing of the acquisition. The Company has recorded a $6 million liability as of September 30, 2013 (Successor) based on the fair value of the expected earn-out payments. No earn-out payment was triggered in fiscal 2013. The Company is also required to pay Mr. Strang certain monies that may be received and applied by the Company in recoupment of advance payments made by Southside prior to the acquisition in an amount not to exceed approximately $0.8 million, of which approximately $550,000 has been paid. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
15. Commitments and Contingencies | |||||||||
Leases | |||||||||
The Company occupies various facilities and uses certain equipment under both capital and operating leases. Net rent expense was approximately $61 million, $63 million, $12 million and $45 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 through September 30, 2011 (Successor) and for the period from October 1, 2010 through July 19, 2011 (Predecessor), respectively. | |||||||||
At September 30, 2013 (Successor), future minimum payments under non-cancelable capital and operating leases (net of sublease income) are as follows: | |||||||||
Years | Capital Leases | Operating Leases | |||||||
(in millions) | |||||||||
2014 | $ | 3 | $ | 66 | |||||
2015 | 3 | 54 | |||||||
2016 | 3 | 45 | |||||||
2017 | 2 | 39 | |||||||
2018 | — | 27 | |||||||
Thereafter | — | 64 | |||||||
Total | $ | 11 | $ | 295 | |||||
The future minimum payments reflect the amounts owed under lease arrangements and do not include any fair market value adjustments that may have been recorded as a result of the Merger. | |||||||||
Amortization of capital leases is included in depreciation expense in the consolidated statements of operations. Capital lease amounts included in property, plant, and equipment are as follows: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Capital Leases | $ | 33 | — | ||||||
Less accumulated amortization | — | — | |||||||
Total | $ | 33 | — | ||||||
Talent Advances | |||||||||
The Company routinely enters into long-term commitments with artists, songwriters and co-publishers for the future delivery of music product. Such commitments are payable principally over a ten-year period, and generally become due only upon delivery and Company acceptance of albums from the artists or future musical compositions by songwriters and co-publishers. Additionally, such commitments are typically cancelable at the Company’s discretion, generally without penalty. Based on contractual obligations and the Company’s expected release schedule, aggregate firm commitments to such talent for the next 12 month period approximated $201 million and $232 million as of September 30, 2013 and 2012, respectively. | |||||||||
Other | |||||||||
Other off-balance sheet, firm commitments, which primarily include minimum funding commitments to investees, amounted to approximately $7 million and $4 million at September 30, 2013 and 2012, respectively. | |||||||||
Litigation | |||||||||
Pricing of Digital Music Downloads | |||||||||
On December 20, 2005 and February 3, 2006, the Attorney General of the State of New York served the Company with requests for information in connection with an industry-wide investigation as to the pricing of digital music downloads. On February 28, 2006, the Antitrust Division of the U.S. Department of Justice served us with a Civil Investigative Demand, also seeking information relating to the pricing of digitally downloaded music. Both investigations were ultimately closed, but subsequent to the announcements of the investigations, more than thirty putative class action lawsuits were filed concerning the pricing of digital music downloads. The lawsuits were consolidated in the Southern District of New York. The consolidated amended complaint, filed on April 13, 2007, alleges conspiracy among record companies to delay the release of their content for digital distribution, inflate their pricing of CDs and fix prices for digital downloads. The complaint seeks unspecified compensatory, statutory and treble damages. On October 9, 2008, the District Court issued an order dismissing the case as to all defendants, including us. However, on January 12, 2010, the Second Circuit vacated the judgment of the District Court and remanded the case for further proceedings and on January 10, 2011, the Supreme Court denied the defendants’ petition for Certiorari. | |||||||||
Upon remand to the District Court, all defendants, including the Company, filed a renewed motion to dismiss challenging, among other things, plaintiffs’ state law claims and standing to bring certain claims. The renewed motion was based mainly on arguments made in defendants’ original motion to dismiss, but not addressed by the District Court. On July 18, 2011, the District Court granted defendants’ motion in part, and denied it in part. Notably, all claims on behalf of the CD-purchaser class were dismissed with prejudice. However, a wide variety of state and federal claims remain, for the class of Internet Music purchasers. The parties have filed amended pleadings complying with the court’s order, and the case is currently in discovery. The Company intends to defend against these lawsuits vigorously, but is unable to predict the outcome of these suits. Regardless of the merits of the claims, this and any related litigation could continue to be costly, and divert the time and resources of management. The potential outcomes of these claims that are reasonably possible cannot be determined at this time and an estimate of the reasonably possible loss or range of loss cannot presently be made. | |||||||||
Music Download Putative Class Action Suits | |||||||||
Five putative class action lawsuits have been filed against the Company in Federal Court in the Northern District of California between February 2, 2012 and March 10, 2012. The lawsuits, which were brought by various recording artists, all allege that the Company has improperly calculated the royalties due to them for certain digital music sales under the terms of their recording contracts. The named plaintiffs purport to raise these claims on their own behalf and, as a putative class action, on behalf of other similarly situated artists. Plaintiffs base their claims on a previous ruling that held another recorded music company had breached the specific recording contracts at issue in that case through its payment of royalties for music downloads and ringtones. In the wake of that ruling, a number of recording artists have initiated suits seeking similar relief against all of the major record companies, including us. Plaintiffs seek to have the interpretation of the contracts in that prior case applied to their different and separate contracts. | |||||||||
On April 10, 2012, the Company filed a motion to dismiss various claims in one of the lawsuits, with the intention of filing similar motions in the remaining suits, on the various applicable response dates. Meanwhile, certain plaintiffs’ counsel moved to be appointed as interim lead counsel, and other plaintiffs’ counsel moved to consolidate the various actions. In a June 1, 2012 Order, the court consolidated the cases and appointed interim co-lead class counsel. Plaintiffs filed a consolidated, master complaint on August 21, 2012. All deadlines have been stayed to allow for settlement of this dispute, with the next status conference set for December 19, 2013. If a settlement was not reached by that date and if the parties agreed that further settlement discussions would be fruitful, the parties were given the option to file a joint statement/stipulation seeking additional time for further settlement negotiations. In the alternative, the parties were to file a joint statement/stipulation with the Court alerting the Court to the fact that settlement could not be reached and resetting a litigation schedule. On December 6, 2013, the parties filed a joint statement/stipulation seeking additional time for further settlement negotiations, which is expected to be ruled on during the December 19, 2013 case management conference. Settlement discussions are ongoing. Regardless of the merits of the claims, this and any related litigation could continue to be costly, and divert the time and resources of management. Based on an evaluation of potential outcomes of these claims that are reasonably possible and an estimate of the reasonably possible loss or range of loss possible, the Company has recorded what it believes is an appropriate reserve related to these cases, which amount is not material. | |||||||||
Other Matters | |||||||||
In addition to the matters discussed above, the Company is involved in various litigation and regulatory proceedings arising in the normal course of business. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending proceedings is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including (1) the results of ongoing discovery; (2) uncertain damage theories and demands; (3) a less than complete factual record; (4) uncertainty concerning legal theories and their resolution by courts or regulators; and (5) the unpredictable nature of the opposing party and its demands. However, the Company cannot predict with certainty the outcome of any litigation or the potential for future litigation. As such, the Company continuously monitors these proceedings as they develop and adjusts any accrual or disclosure as needed. Regardless of the outcome, litigation could have an adverse impact on the Company, including the Company’s brand value, because of defense costs, diversion of management resources and other factors and it could have a material effect on the Company’s results of operations for a given reporting period. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Derivative Financial Instruments | ' |
16. Derivative Financial Instruments | |
Foreign Currency Risk Management | |
The Company uses derivative financial instruments, primarily foreign currency forward exchange contracts (“FX Contracts”) for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates. | |
The Company enters into FX Contracts primarily to hedge its royalty payments and balance sheet items denominated in foreign currency, including Euro denominated debt. The Company applies hedge accounting to FX Contracts for cash flows related to royalty payments. During the year, the Company also entered into FX contracts to hedge the PLG acquisition purchase price from exchange rate fluctuations, which also qualified for hedge accounting. In conjunction with the completion of the Acquisition, the contracts were settled with an immaterial impact. The Company records these FX Contracts in the consolidated balance sheet at fair value and changes in fair value are recognized in Other Comprehensive Income (“OCI”) for unrealized items and recognized in earnings for realized items. The Company elects to not apply hedge accounting to foreign currency exposures related to balance sheet items. The Company records these FX Contracts in the consolidated balance sheet at fair value and changes in fair value are immediately recognized in earnings. Fair value is determined by using observable market transactions of spot and forward rates (i.e., Level 2 inputs) which is discussed further in Note 19. | |
Netting provisions are provided for in existing International Swap and Derivative Association Inc. (“ISDA”) agreements in situations where the Company executes multiple contracts with the same counterparty. As a result, net assets or liabilities resulting from foreign exchange derivatives subject to these netting agreements are classified within other current assets or other current liabilities in the Company’s consolidated balance sheets. | |
Historically, the Company has used, and continues to use, foreign exchange forward contracts and foreign exchange options primarily to hedge the risk that unremitted or future royalties and license fees owed to its domestic companies for the sale, or anticipated sale, of U.S.-copyrighted products abroad may be adversely affected by changes in foreign currency exchange rates. The Company focuses on managing the level of exposure to the risk of foreign currency exchange rate fluctuations on its major currencies, which include the Euro, British pound sterling, Japanese yen, Canadian dollar and Australian dollar. In addition, the Company currently hedges foreign currency risk associated with financing transactions such as third-party and inter-company debt and other balance sheet items. | |
For royalty related hedges, the Company records foreign exchange contracts at fair value on its balance sheet and the related gains or losses on these contracts are deferred in equity (as a component of comprehensive loss). These deferred gains and losses are recognized in income in the period in which the related royalties and license fees being hedged are received and recognized in income. However, to the extent that any of these contracts are not considered to be perfectly effective in offsetting the change in the value of the royalties and license fees being hedged, any changes in fair value relating to the ineffective portion of these contracts are immediately recognized in income. For hedges of financing transactions and other balance sheet items, hedge gains and losses are taken directly to the statement of operations where there is an equal and offsetting entry related to the underlying exposure. Gains and losses on foreign exchange contracts generally are included as a component of other income (expense), net, in the Company’s consolidated statement of operations. | |
As of September 30, 2013, the Company had outstanding hedge contracts for the sale of $249 million and the purchase of $1.044 billion of foreign currencies at fixed rates. As of September 30, 2013, the Company had no deferred gains or losses in comprehensive loss related to foreign exchange hedging. As of September 30, 2012, the Company had outstanding hedge contracts for the sale of $349 million and the purchase of $21 million of foreign currencies at fixed rates. As of September 30, 2012, the Company had $1 million of deferred gains in comprehensive loss related to foreign exchange hedging. | |
Interest Rate Risk Management | |
The Company has $2.888 billion of principal debt outstanding at September 30, 2013, of which $1.310 billion is variable rate debt, which approximates to the fair value at that date. As such, the Company is exposed to changes in interest rates. The Company currently manages this exposure through the fixed-to-floating debt ratio; at September 30, 2013, 55% of the Company’s debt was at a fixed rate. In addition, at September 30, 2013, all of the Company’s floating rate debt under the Term Loan Facility was subject to a LIBOR floor of 1.0%, which is in excess of the current LIBOR rate. The LIBOR floor has effectively turned these LIBOR loans into fixed-rate debt until such time as the LIBOR rate moves higher than the floor. | |
In addition to the $1.310 billion of variable rate debt, the Company also had $1.578 billion of fixed-rate debt. Based on the level of interest rates prevailing at September 30, 2013, the fair value of the fixed-rate and variable rate debt was approximately $3.060 billion. The fair value of the Company’s debt instruments are determined using quoted market prices from less active markets or by using quoted market prices for instruments with identical terms and maturities; both approaches are considered a Level 2 measurement. Further, based on the amount of its fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would increase or decrease the fair value of the fixed-rate debt by approximately $11 million. Due to the LIBOR floor of 1%, a 25 basis point increase or decrease in the level of interest rates would have no impact on the fair value of the Company’s variable rate debt. This potential increase or decrease is based on the simplified assumption that the level of fixed-rate debt remains constant with an immediate across the board increase or decrease in the level of interest rates with no subsequent changes in rates for the remainder of the period. | |
The Company monitors its positions with, and the credit quality of, the financial institutions that are party to any of its financial transactions. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||
17. Segment Information | |||||||||||||||||||||||||||
As discussed more fully in Note 1, based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent the aggregated reportable segments of the Company. Information as to each of these operations is set forth below. The Company evaluates performance based on several factors, of which the primary financial measure is operating income (loss) before non-cash depreciation of tangible assets, non-cash amortization of intangible assets and non-cash impairment charges to reduce the carrying value of goodwill and intangible assets (“OIBDA”). The Company has supplemented its analysis of OIBDA results by segment with an analysis of operating income (loss) by segment. | |||||||||||||||||||||||||||
The accounting policies of the Company’s business segments are the same as those described in the summary of significant accounting policies included elsewhere herein. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results. | |||||||||||||||||||||||||||
Recorded | Music | Corporate | Total | ||||||||||||||||||||||||
Music | Publishing | expenses and | |||||||||||||||||||||||||
eliminations | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
2013 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 2,389 | $ | 503 | $ | (21 | ) | $ | 2,871 | ||||||||||||||||||
OIBDA | 270 | 148 | (85 | ) | 333 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (32 | ) | (6 | ) | (13 | ) | (51 | ) | |||||||||||||||||||
Amortization of intangible assets | (146 | ) | (61 | ) | — | (207 | ) | ||||||||||||||||||||
Operating income (loss) | 92 | 81 | (98 | ) | 75 | ||||||||||||||||||||||
Total assets | 3,426 | 2,444 | 382 | 6,252 | |||||||||||||||||||||||
Capital expenditures | 12 | 3 | 19 | 34 | |||||||||||||||||||||||
2012 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 2,281 | $ | 518 | $ | (19 | ) | $ | 2,780 | ||||||||||||||||||
OIBDA | 289 | 146 | (82 | ) | 353 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (31 | ) | (6 | ) | (14 | ) | (51 | ) | |||||||||||||||||||
Amortization of intangible assets | (132 | ) | (61 | ) | — | (193 | ) | ||||||||||||||||||||
Operating income (loss) | 126 | 79 | (96 | ) | 109 | ||||||||||||||||||||||
Total assets | 2,343 | 2,436 | 499 | 5,278 | |||||||||||||||||||||||
Capital expenditures | 12 | 2 | 18 | 32 | |||||||||||||||||||||||
From July 20, 2011 through September 30, 2011 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 457 | $ | 103 | $ | (4 | ) | $ | 556 | ||||||||||||||||||
OIBDA | 49 | 50 | (18 | ) | 81 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (5 | ) | (1 | ) | (3 | ) | (9 | ) | |||||||||||||||||||
Amortization of intangible assets | (26 | ) | (11 | ) | (1 | ) | (38 | ) | |||||||||||||||||||
Operating income (loss) | 18 | 38 | (22 | ) | 34 | ||||||||||||||||||||||
Capital expenditures | 10 | 1 | — | 11 | |||||||||||||||||||||||
From October 1, 2010 through July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||
Revenues | $ | 1,890 | $ | 436 | $ | (15 | ) | 2,311 | |||||||||||||||||||
OIBDA | 238 | 92 | (121 | ) | 209 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (21 | ) | (3 | ) | (9 | ) | (33 | ) | |||||||||||||||||||
Amortization of intangible assets | (120 | ) | (59 | ) | 1 | (178 | ) | ||||||||||||||||||||
Operating income (loss) | 97 | 30 | (129 | ) | (2 | ) | |||||||||||||||||||||
Capital expenditures | 33 | 3 | 1 | 37 | |||||||||||||||||||||||
Revenues relating to operations in different geographical areas are set forth below for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor) and for the period from October 1, 2010 to July 19, 2011 (Predecessor). Total assets relating to operations in different geographical areas are set forth below as of September 30, 2013 (Successor) and September 30, 2012 (Successor). | |||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2011 | ||||||||||||||||||||||||
Revenue | Long-lived | Revenue | Long-lived | Revenue | Revenue | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
United States | $ | 1,161 | $ | 106 | $ | 1,113 | $ | 113 | $ | 215 | $ | 936 | |||||||||||||||
United Kingdom | 383 | 18 | 342 | 19 | 78 | 293 | |||||||||||||||||||||
All other territories | 1,327 | 56 | 1,325 | 20 | 263 | 1,082 | |||||||||||||||||||||
Total | $ | 2,871 | $ | 180 | $ | 2,780 | $ | 152 | $ | 556 | $ | 2,311 | |||||||||||||||
Customer Concentration | |||||||||||||||||||||||||||
In the fiscal year ended September 30, 2013 (Successor), the fiscal year ended September 30, 2012 (Successor), the period from July 20, 2011 through September 30, 2011 (Successor) and the period from October 1, 2010 through July 19, 2011 (Predecessor), one customer represented 18%, 19%, 9% and 9% of total revenues, respectively. This customer’s revenues are included in the Recorded Music segment. |
Additional_Financial_Informati
Additional Financial Information | 12 Months Ended |
Sep. 30, 2013 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Additional Financial Information | ' |
18. Additional Financial Information | |
Cash Interest and Taxes | |
The Company made interest payments of approximately $206 million, $193 million, $34 million and $176 million, during the fiscal year ended September 30, 2013 (Successor), the fiscal year ended September 30, 2012 (Successor), the period from July 20, 2011 through September 30, 2011 (Successor) and the period from October 1, 2010 through July 19, 2011 (Predecessor), respectively. The Company paid approximately $26 million, $42 million, $9 million and $19 million of foreign income and withholding taxes, net of refunds, for the fiscal year ended September 30, 2013 (Successor), the fiscal year ended September 30, 2012 (Successor), the period from July 20, 2011 through September 30, 2011 (Successor) and the period from October 1, 2010 through July 19, 2011 (Predecessor), respectively. The $42 million of cash tax payments during the fiscal year ended September 30, 2012 (Successor) includes a $15 million payment relating to the settlement of an income tax audit in Germany. This payment was fully reimbursed to the Company by Time Warner Inc. under the terms of the 2004 acquisition of substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
19. Fair Value Measurements | |||||||||||||||||
ASC 820 defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. | |||||||||||||||||
In addition to defining fair value, ASC 820 expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||
• | Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | ||||||||||||||||
• | Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. | ||||||||||||||||
In accordance with the fair value hierarchy, described above, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of September 30, 2013 and September 30, 2012. Balances in other current and other non-current liabilities represent purchase obligations and contingent consideration related to the Company’s various acquisitions. Derivatives not designated as hedging instruments represent the balances in other current assets and other current liabilities below and the gains and losses on these financial instruments are included as a component of other (expense) income, net, in the statement of operations. | |||||||||||||||||
Fair Value Measurements as of September 30, 2013 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Other Current Assets: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Other Current Liabilities: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | (23 | ) | $ | — | $ | (23 | ) | |||||||
Other Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (13 | ) | $ | (13 | ) | |||||||
Other Non-Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (9 | ) | $ | (9 | ) | |||||||
Total | $ | — | $ | (22 | ) | $ | (22 | ) | $ | (44 | ) | ||||||
Fair Value Measurements as of September 30, 2012 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Other Current Assets: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | — | $ | — | $ | — | |||||||||
Other Current Liabilities: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | (5 | ) | $ | — | $ | (5 | ) | |||||||
Other Non-Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (11 | ) | $ | (11 | ) | |||||||
Total | $ | — | $ | (5 | ) | $ | (11 | ) | $ | (16 | ) | ||||||
(a) | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates. | ||||||||||||||||
(b) | This represents purchase obligations and contingent consideration related to the Company’s various acquisitions. This is based on a discounted cash flow approach and it is adjusted to fair value on a recurring basis and any adjustments are included as a component of operating income in the statement of operations. These amounts were mainly calculated using unobservable inputs such as future earnings performance of the Company’s various acquisitions and the expected timing of the payment. The change represents the increase in contingent consideration on a previous acquisition. | ||||||||||||||||
The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3: | |||||||||||||||||
Total | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | 11 | |||||||||||||||
Additions | 15 | ||||||||||||||||
Payments | (4 | ) | |||||||||||||||
Balance at September 30, 2013 (Successor) | $ | 22 | |||||||||||||||
The increase in net liabilities classified as Level 3 was primarily related to contingent consideration resulting from recently completed acquisitions. | |||||||||||||||||
The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, inventories, and property, plant, and equipment, are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that an impairment exists, the asset is written down to its fair value. In addition, an impairment analysis is performed at least annually for goodwill and indefinite-lived intangible assets. | |||||||||||||||||
Fair Value of Debt | |||||||||||||||||
Based on the level of interest rates prevailing at September 30, 2013, the fair value of the Company’s debt was $3.060 billion. Unrealized gains or losses on debt do not result in the realization or expenditure of cash and generally are not recognized for financial reporting purposes unless the debt is retired prior to its maturity. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
20. Subsequent Events | |
On October 1, 2013, Acquisition Corp. entered into a lease (the “Lease”) for its new worldwide headquarters. The Lease between Acquisition Corp. and Paramount Group, Inc., as agent for PGREF I 1633 Broadway Tower, L.P., is for nearly 300,000 square feet of office space at 1633 Broadway in midtown Manhattan. The initial term of the Lease runs for approximately 16 years (i.e., from on or about January 1, 2014 to July 31, 2029). The Lease also includes a single option for Acquisition Corp. to extend the term for either five years or 10 years. In addition, under certain conditions, Acquisition Corp. has the ability to lease additional space in the building and has a right of first refusal with regard to certain additional space. | |
Acquisition Corp. will be initially obligated to pay approximately $16 million in annual rent, in addition to its pro rata share of certain real property taxes, operating expenses and common area maintenance expenses. Terms include initial periods of free rent and a tenant improvement allowance as set forth further in the Lease. | |
In connection with entering into the Lease, Acquisition Corp. posted a $10 million letter of credit which reduces in stages, with a reduction to $0 on July 1, 2018, subject to certain conditions. | |
Certain subsidiaries of Acquisition Corp. have also issued a guaranty (the “Guaranty”) whereby they have fully and unconditionally guaranteed the payments of Acquisition Corp. under the Lease. The Guaranty expires on October 1, 2021. |
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
WARNER MUSIC GROUP CORP. | |||||||||||||||||
2013 QUARTERLY FINANCIAL INFORMATION | |||||||||||||||||
(unaudited) | |||||||||||||||||
The following table sets forth the quarterly information for Warner Music Group Corp. | |||||||||||||||||
Successor | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2013 (b) | 2013 (b) | 2013 (b) | 2012 (b) | ||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Revenues | $ | 764 | $ | 663 | $ | 675 | $ | 769 | |||||||||
Costs and expenses | |||||||||||||||||
Cost of revenues | (391 | ) | (371 | ) | (329 | ) | (408 | ) | |||||||||
Selling, general and administrative expenses (a) | (350 | ) | (236 | ) | (242 | ) | (262 | ) | |||||||||
Amortization of intangible assets | (64 | ) | (48 | ) | (47 | ) | (48 | ) | |||||||||
Total costs and expenses | (805 | ) | (655 | ) | (618 | ) | (718 | ) | |||||||||
Operating income | (41 | ) | 8 | 57 | 51 | ||||||||||||
Loss on extinguishment of debt | — | (2 | ) | — | (83 | ) | |||||||||||
Interest expense, net | (54 | ) | (47 | ) | (49 | ) | (53 | ) | |||||||||
Other income (expense), net | (1 | ) | (2 | ) | (4 | ) | (5 | ) | |||||||||
(Loss) from before income taxes | (96 | ) | (43 | ) | 4 | (90 | ) | ||||||||||
Income tax (expense) benefit | 39 | (19 | ) | — | 11 | ||||||||||||
Net loss | (57 | ) | (62 | ) | 4 | (79 | ) | ||||||||||
Less: income attributable to noncontrolling interest | — | (1 | ) | (2 | ) | (1 | ) | ||||||||||
Net loss attributable to Warner Music Group Corp. | $ | (57 | ) | $ | (63 | ) | $ | 2 | $ | (80 | ) | ||||||
(a) Includes depreciation expense of | $ | (13 | ) | $ | (13 | ) | $ | (12 | ) | $ | (13 | ) | |||||
(b) | The Company’s business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. | ||||||||||||||||
WARNER MUSIC GROUP CORP. | |||||||||||||||||
2012 QUARTERLY FINANCIAL INFORMATION | |||||||||||||||||
(unaudited) | |||||||||||||||||
The following table sets forth the quarterly information for Warner Music Group Corp. | |||||||||||||||||
Successor | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2012 (b) | 2012 (b) | 2012 (b) | 2011 (b) | ||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Revenues | $ | 731 | $ | 651 | $ | 623 | $ | 775 | |||||||||
Costs and expenses | |||||||||||||||||
Cost of revenues | (368 | ) | (353 | ) | (318 | ) | (420 | ) | |||||||||
Selling, general and administrative expenses (a) | (274 | ) | (244 | ) | (233 | ) | (268 | ) | |||||||||
Amortization of intangible assets | (48 | ) | (47 | ) | (50 | ) | (48 | ) | |||||||||
Total costs and expenses | (690 | ) | (644 | ) | (601 | ) | (736 | ) | |||||||||
Operating income | 41 | 7 | 22 | 39 | |||||||||||||
Interest expense, net | (56 | ) | (56 | ) | (56 | ) | (57 | ) | |||||||||
Other income (expense), net | 2 | 6 | 2 | (2 | ) | ||||||||||||
(Loss) from before income taxes | (13 | ) | (43 | ) | (32 | ) | (20 | ) | |||||||||
Income tax (expense) benefit | (4 | ) | 11 | (2 | ) | (6 | ) | ||||||||||
Net loss | (17 | ) | (32 | ) | (34 | ) | (26 | ) | |||||||||
Less: income attributable to noncontrolling interest | (1 | ) | — | (2 | ) | — | |||||||||||
Net loss attributable to Warner Music Group Corp. | $ | (18 | ) | $ | (32 | ) | $ | (36 | ) | $ | (26 | ) | |||||
(a) Includes depreciation expense of | $ | (14 | ) | $ | (12 | ) | $ | (13 | ) | $ | (12 | ) | |||||
(b) | The Company’s business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Guarantor_And_NonGuarantor_Sub
Guarantor And Non-Guarantor Subsidiaries Financial Information | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries Financial Information | ' | ||||||||||||||||||||||||||||||||||||
WARNER MUSIC GROUP CORP. | |||||||||||||||||||||||||||||||||||||
Supplementary Information | |||||||||||||||||||||||||||||||||||||
Consolidating Financial Statements | |||||||||||||||||||||||||||||||||||||
The Company is the direct parent of Holdings, which is the direct parent of Acquisition Corp. Holdings has issued and outstanding the 13.75% Senior Notes due 2019 (the “Holdings Notes”). In addition, Acquisition Corp. has issued and outstanding the 6.00% Senior Secured Notes due 2021, the 6.25% Senior Secured Notes due 2021, and the 11.50% Senior Notes due 2018 (together, the “Acquisition Corp. Notes”). | |||||||||||||||||||||||||||||||||||||
The Holdings Notes are guaranteed by the Company. These guarantees are full, unconditional, joint and several. The following condensed consolidating financial statements are presented for the information of the holders of the Holdings Notes and present the results of operations, financial position and cash flows of (i) the Company, which is the guarantor of the Holdings Notes, (ii) Holdings, which is the issuer of the Holdings Notes, (iii) the subsidiaries of Holdings (Acquisition Corp. is the only direct subsidiary of Holdings) and (iv) the eliminations necessary to arrive at the information for the Company on a consolidated basis. Investments in consolidated or combined subsidiaries are presented under the equity method of accounting. | |||||||||||||||||||||||||||||||||||||
The Acquisition Corp. Notes are also guaranteed by the Company and, in addition, are guaranteed by all of Acquisition Corp.’s domestic wholly owned subsidiaries. The secured notes are guaranteed on a senior secured basis and the unsecured notes are guaranteed on an unsecured senior basis. These guarantees are full, unconditional, joint and several. The following condensed consolidating financial statements are also presented for the information of the holders of the Acquisition Corp. Notes and present the results of operations, financial position and cash flows of (i) Acquisition Corp., which is the issuer of the Acquisition Corp. Notes, (ii) the guarantor subsidiaries of Acquisition Corp., (iii) the non-guarantor subsidiaries of Acquisition Corp. and (iv) the eliminations necessary to arrive at the information for Acquisition Corp. on a consolidated basis. Investments in consolidated subsidiaries are presented under the equity method of accounting. There are no restrictions on Acquisition Corp.’s ability to obtain funds from any of its wholly owned subsidiaries through dividends, loans or advances. | |||||||||||||||||||||||||||||||||||||
The Company and Holdings are holding companies that conduct substantially all of their business operations through Acquisition Corp. Accordingly, the ability of the Company and Holdings to obtain funds from their subsidiaries is restricted by the indentures for the Acquisition Corp. Notes and the credit agreements for the Acquisition Corp. New Senior Credit Facilities, and, with respect to the Company, the indenture for the Holdings Notes. | |||||||||||||||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||
Cash and equivalents | $ | — | $ | 16 | $ | 139 | $ | — | $ | 155 | $ | — | $ | — | $ | — | $ | 155 | |||||||||||||||||||
Accounts receivable, net | — | 185 | 326 | — | 511 | — | — | — | 511 | ||||||||||||||||||||||||||||
Inventories | — | 10 | 23 | — | 33 | — | — | — | 33 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped within one year | — | 59 | 34 | — | 93 | — | — | — | 93 | ||||||||||||||||||||||||||||
Deferred tax assets | — | 21 | 22 | — | 43 | — | — | — | 43 | ||||||||||||||||||||||||||||
Prepaid and other current assets | 5 | 8 | 46 | — | 59 | — | — | — | 59 | ||||||||||||||||||||||||||||
Total current assets | 5 | 299 | 590 | — | 894 | — | — | — | 894 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped after one year | — | 109 | 64 | — | 173 | — | — | — | 173 | ||||||||||||||||||||||||||||
Investments in and advances to (from) consolidated subsidiaries | 2,811 | 930 | — | (3,741 | ) | — | 879 | 726 | (1,605 | ) | — | ||||||||||||||||||||||||||
Property, plant and equipment, net | — | 101 | 79 | — | 180 | — | — | — | 180 | ||||||||||||||||||||||||||||
Goodwill | — | 1,379 | 289 | — | 1,668 | — | — | — | 1,668 | ||||||||||||||||||||||||||||
Intangible assets subject to amortization, net | — | 1,007 | 2,100 | — | 3,107 | — | — | — | 3,107 | ||||||||||||||||||||||||||||
Intangible assets not subject to amortization | — | 75 | 45 | — | 120 | — | — | — | 120 | ||||||||||||||||||||||||||||
Due (to) from parent companies | 799 | (27 | ) | (772 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other assets | 68 | 14 | 21 | — | 103 | 7 | — | — | 110 | ||||||||||||||||||||||||||||
Total assets | $ | 3,683 | $ | 3,887 | $ | 2,416 | $ | (3,741 | ) | $ | 6,245 | $ | 886 | $ | 726 | $ | (1,605 | ) | $ | 6,252 | |||||||||||||||||
Liabilities and Deficit: | |||||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts payable | — | $ | 96 | $ | 184 | — | $ | 280 | — | — | — | $ | 280 | ||||||||||||||||||||||||
Accrued royalties | — | 570 | 577 | — | 1,147 | — | — | — | 1,147 | ||||||||||||||||||||||||||||
Accrued liabilities | — | 94 | 227 | — | 321 | — | — | — | 321 | ||||||||||||||||||||||||||||
Accrued interest | 65 | — | — | — | 65 | 10 | — | — | 75 | ||||||||||||||||||||||||||||
Deferred revenue | — | 56 | 83 | — | 139 | — | — | — | 139 | ||||||||||||||||||||||||||||
Current portion of long-term debt | 13 | — | — | — | 13 | — | — | — | 13 | ||||||||||||||||||||||||||||
Other current liabilities | — | 23 | (4 | ) | 6 | 25 | — | — | — | 25 | |||||||||||||||||||||||||||
Total current liabilities | 78 | 839 | 1,067 | 6 | 1,990 | 10 | — | — | 2,000 | ||||||||||||||||||||||||||||
Long-term debt | 2,704 | — | — | — | 2,704 | 150 | — | — | 2,854 | ||||||||||||||||||||||||||||
Deferred tax liabilities, net | — | 128 | 311 | — | 439 | — | — | — | 439 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | 22 | 68 | 133 | (7 | ) | 216 | — | — | — | 216 | |||||||||||||||||||||||||||
Total liabilities | 2,804 | 1,035 | 1,511 | (1 | ) | 5,349 | 160 | — | — | 5,509 | |||||||||||||||||||||||||||
Total Warner Music Group Corp. equity (deficit) | 879 | 2,852 | 888 | (3,740 | ) | 879 | 726 | 726 | (1,605 | ) | 726 | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | 17 | — | 17 | — | — | — | 17 | ||||||||||||||||||||||||||||
Total equity (deficit) | 879 | 2,852 | 905 | (3,740 | ) | 896 | 726 | 726 | (1,605 | ) | 743 | ||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 3,683 | $ | 3,887 | $ | 2,416 | $ | (3,741 | ) | $ | 6,245 | $ | 886 | $ | 726 | $ | (1,605 | ) | $ | 6,252 | |||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||
Cash and equivalents | $ | 44 | $ | 105 | $ | 143 | $ | — | $ | 292 | $ | 10 | $ | — | $ | — | $ | 302 | |||||||||||||||||||
Accounts receivable, net | — | 158 | 240 | — | 398 | — | — | — | 398 | ||||||||||||||||||||||||||||
Inventories | — | 11 | 17 | — | 28 | — | — | — | 28 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped within one year | — | 67 | 49 | — | 116 | — | — | — | 116 | ||||||||||||||||||||||||||||
Deferred tax assets | — | 35 | 16 | — | 51 | — | — | — | 51 | ||||||||||||||||||||||||||||
Prepaid and other current assets | 7 | 8 | 29 | — | 44 | — | — | — | 44 | ||||||||||||||||||||||||||||
Total current assets | 51 | 384 | 494 | — | 929 | 10 | — | — | 939 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped after one year | — | 82 | 60 | — | 142 | — | — | — | 142 | ||||||||||||||||||||||||||||
Investments in and advances to (from) consolidated subsidiaries | 3,133 | 621 | — | (3,754 | ) | — | 1,070 | 926 | (1,996 | ) | — | ||||||||||||||||||||||||||
Property, plant and equipment, net | — | 108 | 44 | — | 152 | — | — | — | 152 | ||||||||||||||||||||||||||||
Goodwill | — | 1,375 | 5 | — | 1,380 | — | — | — | 1,380 | ||||||||||||||||||||||||||||
Intangible assets subject to amortization, net | — | 1,097 | 1,402 | — | 2,499 | — | — | — | 2,499 | ||||||||||||||||||||||||||||
Intangible assets not subject to amortization | — | 75 | 27 | — | 102 | — | — | — | 102 | ||||||||||||||||||||||||||||
Due (to) from parent companies | — | 176 | (176 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other assets | 32 | 12 | 13 | — | 57 | 6 | 1 | — | 64 | ||||||||||||||||||||||||||||
Total assets | $ | 3,216 | $ | 3,930 | $ | 1,869 | $ | (3,754 | ) | $ | 5,261 | $ | 1,086 | $ | 927 | $ | (1,996 | ) | $ | 5,278 | |||||||||||||||||
Liabilities and Deficit: | |||||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | 81 | $ | 75 | $ | — | $ | 156 | $ | — | $ | — | $ | — | $ | 156 | |||||||||||||||||||
Accrued royalties | — | 591 | 406 | — | 997 | — | — | — | 997 | ||||||||||||||||||||||||||||
Accrued liabilities | — | 108 | 145 | — | 253 | — | — | — | 253 | ||||||||||||||||||||||||||||
Accrued interest | 79 | — | — | — | 79 | 10 | — | — | 89 | ||||||||||||||||||||||||||||
Deferred revenue | — | 63 | 38 | — | 101 | — | — | — | 101 | ||||||||||||||||||||||||||||
Other current liabilities | — | 14 | (7 | ) | 3 | 10 | — | — | — | 10 | |||||||||||||||||||||||||||
Total current liabilities | 79 | 857 | 657 | 3 | 1,596 | 10 | — | — | 1,606 | ||||||||||||||||||||||||||||
Long-term debt | 2,056 | — | — | — | 2,056 | 150 | — | — | 2,206 | ||||||||||||||||||||||||||||
Deferred tax liabilities, net | — | 159 | 216 | — | 375 | — | — | — | 375 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | 11 | 47 | 81 | 8 | 147 | — | — | — | 147 | ||||||||||||||||||||||||||||
Total liabilities | 2,146 | 1,063 | 954 | 11 | 4,174 | 160 | — | — | 4,334 | ||||||||||||||||||||||||||||
Total Warner Music Group Corp. equity (deficit) | 1,070 | 2,867 | 898 | (3,765 | ) | 1,070 | 926 | 927 | (1,996 | ) | 927 | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | 17 | — | 17 | — | — | — | 17 | ||||||||||||||||||||||||||||
Total equity (deficit) | 1,070 | 2,867 | 915 | (3,765 | ) | 1,087 | 926 | 927 | (1,996 | ) | 944 | ||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 3,216 | $ | 3,930 | $ | 1,869 | $ | (3,754 | ) | $ | 5,261 | $ | 1,086 | $ | 927 | $ | (1,996 | ) | $ | 5,278 | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 1,370 | $ | 1,717 | $ | (216 | ) | $ | 2,871 | $ | — | $ | — | $ | — | $ | 2,871 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (691 | ) | (1,003 | ) | 195 | (1,499 | ) | — | — | — | (1,499 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (507 | ) | (603 | ) | 20 | (1,090 | ) | — | — | — | (1,090 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (118 | ) | (89 | ) | — | (207 | ) | — | — | — | (207 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (1,316 | ) | (1,695 | ) | 215 | (2,796 | ) | — | — | — | (2,796 | ) | ||||||||||||||||||||||||
Operating income | — | 54 | 22 | (1 | ) | 75 | — | — | — | 75 | |||||||||||||||||||||||||||
Interest expense, net | (154 | ) | 6 | (33 | ) | — | (181 | ) | (22 | ) | — | — | (203 | ) | |||||||||||||||||||||||
Loss on extinguishment of debt | (85 | ) | — | — | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | (11 | ) | (47 | ) | — | 58 | — | (176 | ) | (198 | ) | 374 | — | ||||||||||||||||||||||||
Other expense, net | 43 | (28 | ) | (27 | ) | — | (12 | ) | — | — | — | (12 | ) | ||||||||||||||||||||||||
(Loss) income before income taxes | (207 | ) | (15 | ) | (38 | ) | 57 | (203 | ) | (198 | ) | (198 | ) | 374 | (225 | ) | |||||||||||||||||||||
Income tax benefit (expense) | 31 | — | 34 | (34 | ) | 31 | — | — | 31 | ||||||||||||||||||||||||||||
Net (loss) income | (176 | ) | (15 | ) | (4 | ) | 23 | (172 | ) | (198 | ) | (198 | ) | 374 | (194 | ) | |||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (176 | ) | $ | (15 | ) | $ | (8 | ) | $ | 23 | $ | (176 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (198 | ) | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 1,265 | $ | 1,714 | $ | (199 | ) | $ | 2,780 | $ | — | $ | — | $ | — | $ | 2,780 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (632 | ) | (1,006 | ) | 179 | (1,459 | ) | — | — | — | (1,459 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (492 | ) | (561 | ) | 34 | (1,019 | ) | — | — | — | (1,019 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (117 | ) | (76 | ) | — | (193 | ) | — | — | — | (193 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (1,241 | ) | (1,643 | ) | 213 | (2,671 | ) | — | — | — | (2,671 | ) | ||||||||||||||||||||||||
Operating income | — | 24 | 71 | 14 | 109 | — | — | — | 109 | ||||||||||||||||||||||||||||
Interest (expense) income, net | (196 | ) | 7 | (14 | ) | — | (203 | ) | (22 | ) | — | — | (225 | ) | |||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | 107 | 35 | — | (142 | ) | — | (90 | ) | (112 | ) | 202 | — | |||||||||||||||||||||||||
Other income, net | — | 3 | 5 | — | 8 | — | — | — | 8 | ||||||||||||||||||||||||||||
(Loss) income before income taxes | (89 | ) | 69 | 62 | (128 | ) | (86 | ) | (112 | ) | (112 | ) | 202 | (108 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (1 | ) | (5 | ) | (3 | ) | 8 | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||
Net (loss) income | (90 | ) | 64 | 59 | (120 | ) | (87 | ) | (112 | ) | (112 | ) | 202 | (109 | ) | ||||||||||||||||||||||
Less: income attributable to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (90 | ) | $ | 64 | $ | 56 | $ | (120 | ) | $ | (90 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (112 | ) | |||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 280 | $ | 308 | $ | (32 | ) | $ | 556 | $ | — | $ | — | $ | — | $ | 556 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (134 | ) | (182 | ) | 28 | (288 | ) | — | — | — | (288 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (109 | ) | (90 | ) | 3 | (196 | ) | — | — | — | (196 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (24 | ) | (14 | ) | — | (38 | ) | — | — | — | (38 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (267 | ) | (286 | ) | 31 | (522 | ) | — | — | — | (522 | ) | ||||||||||||||||||||||||
Operating income (loss) | — | 13 | 22 | (1 | ) | 34 | — | — | — | 34 | |||||||||||||||||||||||||||
Interest (expense) income, net | (48 | ) | 2 | (3 | ) | — | (49 | ) | (13 | ) | — | — | (62 | ) | |||||||||||||||||||||||
Equity (losses) gains from consolidated subsidiaries | 33 | 5 | — | (38 | ) | — | (18 | ) | (31 | ) | 49 | — | |||||||||||||||||||||||||
Other income (expense), net | — | 3 | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
(Loss) income before income taxes | (15 | ) | 23 | 16 | (39 | ) | (15 | ) | (31 | ) | (31 | ) | 49 | (28 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (3 | ) | (4 | ) | — | 4 | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||||
Net (loss) income | (18 | ) | 19 | 16 | (35 | ) | (18 | ) | (31 | ) | (31 | ) | 49 | (31 | ) | ||||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 994 | $ | 1,464 | $ | (147 | ) | $ | 2,311 | $ | — | $ | — | $ | — | $ | 2,311 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (497 | ) | (900 | ) | 136 | (1,261 | ) | — | — | — | (1,261 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (377 | ) | (512 | ) | 15 | (874 | ) | — | — | — | (874 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (95 | ) | (83 | ) | — | (178 | ) | — | — | — | (178 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (969 | ) | (1,495 | ) | 151 | (2,313 | ) | — | — | — | (2,313 | ) | ||||||||||||||||||||||||
Operating income (loss) | — | 25 | (31 | ) | 4 | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Interest (expense) income, net | (128 | ) | 6 | (9 | ) | — | (131 | ) | (20 | ) | — | — | (151 | ) | |||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | (3 | ) | 5 | — | (2 | ) | — | (152 | ) | (172 | ) | 324 | — | ||||||||||||||||||||||||
Other income (expense), net | 4 | (12 | ) | 13 | — | 5 | — | — | — | 5 | |||||||||||||||||||||||||||
(Loss) income before income taxes | (127 | ) | 24 | (27 | ) | 2 | (128 | ) | (172 | ) | (172 | ) | 324 | (148 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (25 | ) | (20 | ) | (25 | ) | 45 | (25 | ) | — | (2 | ) | — | (27 | ) | ||||||||||||||||||||||
Net (loss) income | (152 | ) | 4 | (52 | ) | 47 | (153 | ) | (172 | ) | (174 | ) | 324 | (175 | ) | ||||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | 1 | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (152 | ) | $ | 4 | $ | (51 | ) | $ | 47 | $ | (152 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (174 | ) | |||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (176 | ) | $ | (15 | ) | $ | (4 | ) | $ | 23 | $ | (172 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (194 | ) | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (3 | ) | — | (3 | ) | 3 | (3 | ) | (3 | ) | (3 | ) | 6 | (3 | ) | ||||||||||||||||||||||
Minimum Pension Liability | 2 | — | 2 | (2 | ) | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||||||||||||||
Deferred gains (losses) on derivative financial instruments | (1 | ) | — | (1 | ) | 1 | (1 | ) | (1 | ) | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||||
Other comprehensive income, net of tax: | (2 | ) | — | (2 | ) | 2 | (2 | ) | (2 | ) | (2 | ) | 4 | (2 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (178 | ) | (15 | ) | (6 | ) | 25 | (174 | ) | (200 | ) | (200 | ) | 378 | (196 | ) | |||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (178 | ) | $ | (15 | ) | $ | (10 | ) | $ | 25 | $ | (178 | ) | $ | (200 | ) | $ | (200 | ) | $ | 378 | $ | (200 | ) | ||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (90 | ) | $ | 64 | $ | 59 | $ | (120 | ) | $ | (87 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (109 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (19 | ) | (19 | ) | 19 | (19 | ) | (19 | ) | (19 | ) | 38 | (19 | ) | |||||||||||||||||||||||
Minimum Pension Liability | (7 | ) | (7 | ) | 7 | (7 | ) | (7 | ) | (7 | ) | 14 | (7 | ) | |||||||||||||||||||||||
Deferred gains on derivative financial instruments | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax: | (26 | ) | — | (26 | ) | 26 | (26 | ) | (26 | ) | (26 | ) | 52 | (26 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (116 | ) | 64 | 33 | (94 | ) | (113 | ) | (138 | ) | (138 | ) | 254 | (135 | ) | ||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (116 | ) | $ | 64 | $ | 30 | $ | (94 | ) | $ | (116 | ) | $ | (138 | ) | $ | (138 | ) | $ | 254 | $ | (138 | ) | |||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (35 | ) | — | (35 | ) | 35 | (35 | ) | (35 | ) | (35 | ) | 70 | (35 | ) | ||||||||||||||||||||||
Minimum Pension Liability | 1 | — | 1 | (1 | ) | 1 | 1 | 1 | (2 | ) | 1 | ||||||||||||||||||||||||||
Deferred gains on derivative financial instruments | 1 | 1 | — | (1 | ) | 1 | 1 | 1 | (2 | ) | 1 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | (33 | ) | 1 | (34 | ) | 33 | (33 | ) | (33 | ) | (33 | ) | 66 | (33 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (51 | ) | 20 | (18 | ) | (2 | ) | (51 | ) | (64 | ) | (64 | ) | 115 | (64 | ) | |||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (51 | ) | $ | 20 | $ | (18 | ) | $ | (2 | ) | $ | (51 | ) | $ | (64 | ) | $ | (64 | ) | $ | 115 | $ | (64 | ) | ||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (152 | ) | $ | 4 | $ | (52 | ) | $ | 47 | $ | (153 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (175 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 9 | — | 9 | (9 | ) | 9 | 9 | 9 | (18 | ) | 9 | ||||||||||||||||||||||||||
Deferred gains on derivative financial instruments | 2 | 2 | — | (2 | ) | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | 11 | 2 | 9 | (11 | ) | 11 | 11 | 11 | (22 | ) | 11 | ||||||||||||||||||||||||||
Total comprehensive (loss) income | (141 | ) | 6 | (43 | ) | 36 | (142 | ) | (161 | ) | (163 | ) | 302 | (164 | ) | ||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 1 | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Comprehensive (loss) income attributable to | $ | (141 | ) | $ | 6 | $ | (42 | ) | $ | 36 | $ | (141 | ) | $ | (161 | ) | $ | (163 | ) | $ | 302 | $ | (163 | ) | |||||||||||||
Warner Music Group Corp. | |||||||||||||||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | (176 | ) | $ | (15 | ) | $ | (4 | ) | $ | 23 | $ | (172 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (194 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 85 | — | — | — | 85 | — | — | — | 85 | ||||||||||||||||||||||||||||
Depreciation and amortization | — | 155 | 103 | — | 258 | — | — | — | 258 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (73 | ) | — | (73 | ) | — | — | — | (73 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 11 | — | — | — | 11 | 2 | — | — | 13 | ||||||||||||||||||||||||||||
Non-cash share-based compensation expense | — | 19 | — | — | 19 | — | — | — | 19 | ||||||||||||||||||||||||||||
Equity losses (gains), including distributions | 11 | 50 | — | (58 | ) | 3 | 176 | 198 | (374 | ) | 3 | ||||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | — | (28 | ) | 13 | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||||||||
Inventories | — | — | (5 | ) | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||||||
Royalty advances | — | (18 | ) | 17 | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 64 | (37 | ) | 46 | 73 | — | — | — | 73 | |||||||||||||||||||||||||||
Royalty payables | — | (22 | ) | 28 | — | 6 | — | — | — | 6 | |||||||||||||||||||||||||||
Accrued interest | (14 | ) | — | — | — | (14 | ) | — | — | — | (14 | ) | |||||||||||||||||||||||||
Other current balance sheet changes | 15 | 42 | (49 | ) | (3 | ) | 5 | — | — | — | 5 | ||||||||||||||||||||||||||
Other noncurrent balance sheet changes | (7 | ) | (24 | ) | 38 | (8 | ) | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | (75 | ) | 223 | 31 | — | 179 | (20 | ) | — | — | 159 | ||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Investments and acquisitions of businesses | (719 | ) | (9 | ) | (9 | ) | — | (737 | ) | — | — | — | (737 | ) | |||||||||||||||||||||||
Acquisition of publishing rights | — | (33 | ) | (4 | ) | — | (37 | ) | — | — | — | (37 | ) | ||||||||||||||||||||||||
Capital expenditures | — | (25 | ) | (9 | ) | — | (34 | ) | — | — | — | (34 | ) | ||||||||||||||||||||||||
Advances to issuer | 245 | — | — | (245 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (474 | ) | (67 | ) | (22 | ) | (245 | ) | (808 | ) | — | — | — | (808 | ) | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest holder | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Dividend by Acquisition Corp to Holdings Corp | (12 | ) | — | — | — | (12 | ) | 12 | — | — | — | ||||||||||||||||||||||||||
Change in due to (from) to issuer | — | (245 | ) | — | 245 | — | — | — | — | — | |||||||||||||||||||||||||||
Repayment of Acquisition Corp 9.5% Senior Subordinated Notes | (1,250 | ) | — | — | — | (1,250 | ) | — | — | — | (1,250 | ) | |||||||||||||||||||||||||
Proceeds from issuance of Acquisition Corp 6.00% Senior Secured Notes | 500 | — | — | — | 500 | — | — | — | 500 | ||||||||||||||||||||||||||||
Repayment of Acquisition Corp 6.00% Senior Secured Notes | (50 | ) | — | — | — | (50 | ) | — | — | — | (50 | ) | |||||||||||||||||||||||||
Proceeds from issuance of Acquisition Corp 6.25% Senior Secured Notes | 227 | — | — | — | 227 | — | — | — | 227 | ||||||||||||||||||||||||||||
Repayment of Acquisition Corp 6.25% Senior Secured Notes | (23 | ) | — | — | — | (23 | ) | — | — | — | (23 | ) | |||||||||||||||||||||||||
Proceeds from Acquisition Corp Term Loan Facility, net | 1,412 | — | — | — | 1,412 | — | — | — | 1,412 | ||||||||||||||||||||||||||||
Repayment of Term Loan | (110 | ) | — | — | — | (110 | ) | — | — | — | (110 | ) | |||||||||||||||||||||||||
Proceeds from draw down of the Revolving Credit Facility | 136 | — | — | — | 136 | — | — | — | 136 | ||||||||||||||||||||||||||||
Repayment of the Revolving Credit Facility | (136 | ) | — | — | — | (136 | ) | — | — | — | (136 | ) | |||||||||||||||||||||||||
Financing costs paid | (129 | ) | — | — | — | (129 | ) | — | — | — | (129 | ) | |||||||||||||||||||||||||
Deferred financing costs paid | (60 | ) | — | — | — | (60 | ) | (2 | ) | — | — | (62 | ) | ||||||||||||||||||||||||
Net cash (used in) provided by financing activities | 505 | (245 | ) | (4 | ) | 245 | 501 | 10 | — | — | 511 | ||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (9 | ) | — | (9 | ) | — | — | — | (9 | ) | |||||||||||||||||||||||||
Net (decrease) increase in cash and equivalents | (44 | ) | (89 | ) | (4 | ) | — | (137 | ) | (10 | ) | — | — | (147 | ) | ||||||||||||||||||||||
Cash and equivalents at beginning of period | 44 | 105 | 143 | — | 292 | 10 | — | — | 302 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | — | $ | 16 | $ | 139 | $ | — | $ | 155 | $ | — | $ | — | $ | — | $ | 155 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (90 | ) | $ | 64 | $ | 59 | $ | (120 | ) | $ | (87 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (109 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 154 | 90 | — | 244 | — | — | — | 244 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (26 | ) | — | (26 | ) | — | — | — | (26 | ) | |||||||||||||||||||||||||
Non-cash interest expense | (3 | ) | — | — | — | (3 | ) | 1 | — | — | (2 | ) | |||||||||||||||||||||||||
Other non-cash adjustments | — | (2 | ) | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Equity in the income of consolidated subsidiaries | (107 | ) | (35 | ) | — | 142 | — | 90 | 112 | (202 | ) | — | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | 8 | 22 | (46 | ) | — | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||||||||||
Inventories | — | 1 | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Royalty advances | — | 37 | 10 | — | 47 | — | — | — | 47 | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 42 | 26 | (29 | ) | 39 | — | — | — | 39 | |||||||||||||||||||||||||||
Royalty payables | — | 4 | 18 | — | 22 | — | — | — | 22 | ||||||||||||||||||||||||||||
Accrued interest | 28 | — | — | — | 28 | 6 | — | — | 34 | ||||||||||||||||||||||||||||
Other current balance sheet changes | (6 | ) | 33 | (38 | ) | 4 | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||||||
Other noncurrent balance sheet changes | 5 | (25 | ) | 7 | 3 | (10 | ) | — | (6 | ) | — | (16 | ) | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (165 | ) | 295 | 100 | — | 230 | (15 | ) | (6 | ) | — | 209 | |||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (22 | ) | (10 | ) | — | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (24 | ) | (8 | ) | — | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||||||||||
Investments and acquisitions of businesses, net of cash acquired | — | — | (8 | ) | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||||||||||||||
Proceeds from the sale of music catalog | — | 2 | — | — | 2 | — | — | — | 2 | ||||||||||||||||||||||||||||
Proceeds from the sale of building | — | 12 | — | — | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||
Advances to issuer | 192 | — | — | (192 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 192 | (32 | ) | (26 | ) | (192 | ) | (58 | ) | — | — | — | (58 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Dividend by Holdings Corp to Parent | — | — | — | — | — | (6 | ) | 6 | — | — | |||||||||||||||||||||||||||
Dividend by Acquisition Corp to Holdings Corp | — | (27 | ) | — | — | (27 | ) | 27 | — | — | — | ||||||||||||||||||||||||||
Distribution to noncontrolling interest holders | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | — | (192 | ) | — | 192 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | — | (219 | ) | (3 | ) | 192 | (30 | ) | 21 | 6 | — | (3 | ) | ||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net increase (decrease) in cash and equivalents | 27 | 44 | 71 | — | 142 | 6 | — | — | 148 | ||||||||||||||||||||||||||||
Cash and equivalents at beginning of period | 17 | 61 | 72 | — | 150 | 4 | — | — | 154 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | 44 | $ | 105 | $ | 143 | $ | — | $ | 292 | $ | 10 | $ | — | $ | — | $ | 302 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMGHoldings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 27 | 20 | — | 47 | — | — | — | 47 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (2 | ) | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 1 | — | — | — | 1 | 1 | — | — | 2 | ||||||||||||||||||||||||||||
Equity losses (gains) from consolidated subsidiaries | (33 | ) | (5 | ) | — | 38 | — | 18 | 31 | (49 | ) | — | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | — | (40 | ) | (28 | ) | — | (68 | ) | — | — | — | (68 | ) | ||||||||||||||||||||||||
Inventories | — | (1 | ) | (1 | ) | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||||||||
Royalty advances | — | 11 | 15 | — | 26 | — | — | — | 26 | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 2 | 25 | 2 | 29 | — | — | — | 29 | ||||||||||||||||||||||||||||
Royalties payable | — | (6 | ) | (67 | ) | — | (73 | ) | — | — | — | (73 | ) | ||||||||||||||||||||||||
Accrued interest | 29 | — | — | — | 29 | 1 | — | — | 30 | ||||||||||||||||||||||||||||
Other current balance sheet changes | 2 | 3 | 3 | — | 8 | — | — | — | 8 | ||||||||||||||||||||||||||||
Other noncurrent balance sheet changes | (7 | ) | 41 | (4 | ) | (5 | ) | 25 | 4 | (59 | ) | — | (30 | ) | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | (26 | ) | 51 | (23 | ) | — | 2 | (7 | ) | (59 | ) | — | (64 | ) | |||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Purchase of Predecessor | — | (50 | ) | — | — | (50 | ) | — | (1,228 | ) | — | (1,278 | ) | ||||||||||||||||||||||||
Capital expenditures | — | (7 | ) | (4 | ) | — | (11 | ) | — | — | — | (11 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (3 | ) | — | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Advance to consolidated subsidiary | — | 173 | — | (173 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash used in investing activities | — | 113 | (4 | ) | (173 | ) | (64 | ) | — | (1,228 | ) | — | (1,292 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Capital Contribution from Parent | — | — | — | — | — | — | 1,099 | — | 1,099 | ||||||||||||||||||||||||||||
Capital Contribution by Parent to Holdings | — | — | — | — | — | 127 | (127 | ) | — | — | |||||||||||||||||||||||||||
Dividend by Holding Corp. to Parent | — | — | — | — | — | (160 | ) | 160 | — | — | |||||||||||||||||||||||||||
Dividend by Acquisition to Holdings Corp. | — | (160 | ) | — | — | (160 | ) | 160 | — | — | — | ||||||||||||||||||||||||||
Financing costs paid | (62 | ) | — | — | — | (62 | ) | (8 | ) | — | — | (70 | ) | ||||||||||||||||||||||||
Proceeds from the issuance of Acquisition Corp. Senior Unsecured Notes | 747 | — | — | — | 747 | — | — | — | 747 | ||||||||||||||||||||||||||||
Proceeds from the issuance of Acquisition Corp. Senior Secured Notes | 157 | — | — | — | 157 | — | — | — | 157 | ||||||||||||||||||||||||||||
Proceeds from the issuance of Holdings Corp. Senior Notes | — | — | — | — | — | 150 | — | — | 150 | ||||||||||||||||||||||||||||
Repayment of Holdings Senior Discount Notes | — | — | — | — | — | (258 | ) | — | — | (258 | ) | ||||||||||||||||||||||||||
Repayment of Acquisition Corp. Senior Subordinate Notes | (626 | ) | — | — | — | (626 | ) | — | — | — | (626 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | (173 | ) | — | — | 173 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 43 | (160 | ) | — | 173 | 56 | 11 | 1,132 | — | 1,199 | |||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (8 | ) | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||||||||||||||
Net increase (decrease) in cash and equivalents | 17 | 4 | (35 | ) | — | (14 | ) | 4 | (155 | ) | — | (165 | ) | ||||||||||||||||||||||||
Cash and equivalents at beginning of period | — | 57 | 107 | — | 164 | — | 155 | — | 319 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | 17 | $ | 61 | $ | 72 | $ | — | $ | 150 | $ | 4 | $ | — | $ | — | $ | 154 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (152 | ) | $ | 4 | $ | (52 | ) | $ | 47 | $ | (153 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (175 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 121 | 90 | — | 211 | — | — | — | 211 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (15 | ) | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 8 | 1 | — | — | 9 | — | — | — | 9 | ||||||||||||||||||||||||||||
Non-cash, share-based compensation expense | — | 24 | — | — | 24 | — | — | — | 24 | ||||||||||||||||||||||||||||
Equity (gains) losses from consolidated subsidiaries | 3 | (5 | ) | — | 2 | — | 152 | 172 | (324 | ) | — | ||||||||||||||||||||||||||
Other non-cash adjustments | — | (2 | ) | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | (7 | ) | 41 | 85 | — | 119 | — | — | — | 119 | |||||||||||||||||||||||||||
Inventories | — | 4 | 6 | — | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||
Royalty advances | — | (12 | ) | (4 | ) | — | (16 | ) | — | — | — | (16 | ) | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | (52 | ) | (40 | ) | (55 | ) | (147 | ) | — | — | — | (147 | ) | |||||||||||||||||||||||
Royalties payable | (28 | ) | 32 | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||
Accrued interest | (31 | ) | — | — | — | (31 | ) | (3 | ) | — | — | (34 | ) | ||||||||||||||||||||||||
Other current balance sheet changes | — | 15 | (2 | ) | — | 13 | — | — | — | 13 | |||||||||||||||||||||||||||
Other noncurrent balance sheet changes | 13 | 36 | (45 | ) | 6 | 10 | 23 | (22 | ) | — | 11 | ||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | (166 | ) | 147 | 55 | — | 36 | — | (24 | ) | — | 12 | ||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (26 | ) | (11 | ) | — | (37 | ) | — | — | — | (37 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (40 | ) | (19 | ) | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||||||||
Investments and acquisitions of businesses, net of cash acquired | — | — | (59 | ) | — | (59 | ) | — | — | — | (59 | ) | |||||||||||||||||||||||||
Advances to issuer | 166 | — | — | (166 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash used in investing activities | 166 | (66 | ) | (89 | ) | (166 | ) | (155 | ) | — | — | — | (155 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Proceeds from exercise of Predecessor stock options | — | 3 | — | — | 3 | — | 3 | — | 6 | ||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | (1 | ) | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | — | (166 | ) | — | 166 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | — | (163 | ) | (1 | ) | 166 | 2 | — | 3 | — | 5 | ||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | 18 | — | 18 | — | — | — | 18 | ||||||||||||||||||||||||||||
Net decrease in cash and equivalents | — | (82 | ) | (17 | ) | — | (99 | ) | — | (21 | ) | — | (120 | ) | |||||||||||||||||||||||
Cash and equivalents at beginning of period | — | 139 | 124 | — | 263 | — | 176 | — | 439 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | — | $ | 57 | $ | 107 | $ | — | $ | 164 | $ | — | $ | 155 | $ | — | $ | 319 | |||||||||||||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||
Schedule II — Valuation and Qualifying Accounts | |||||||||||||||||
Description | Balance | Additions | Deductions | Balance | |||||||||||||
at | Charged | at | |||||||||||||||
Beginning | to | End of | |||||||||||||||
of Period | Cost and | Period | |||||||||||||||
Expenses | |||||||||||||||||
(in millions) | |||||||||||||||||
Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||
Allowance for doubtful accounts | $ | 5 | $ | 3 | $ | (6 | ) | $ | 2 | ||||||||
Reserves for sales returns and allowances | 58 | 166 | (171 | ) | 53 | ||||||||||||
Allowance for deferred tax asset | 244 | 53 | (1 | ) | 296 | ||||||||||||
Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||
Allowance for doubtful accounts | $ | — | $ | 9 | $ | (4 | ) | $ | 5 | ||||||||
Reserves for sales returns and allowances | 40 | 185 | (167 | ) | 58 | ||||||||||||
Allowance for deferred tax asset | 190 | 55 | (1 | ) | 244 | ||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||
Allowance for doubtful accounts (a) | $ | — | $ | 2 | $ | (2 | ) | $ | — | ||||||||
Reserves for sales returns and allowances (a) | — | 49 | (9 | ) | 40 | ||||||||||||
Allowance for deferred tax asset (a) | — | 190 | — | 190 | |||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||
Allowance for doubtful accounts | $ | 20 | $ | 3 | $ | (5 | ) | $ | 18 | ||||||||
Reserves for sales returns and allowances | 87 | 147 | (178 | ) | 56 | ||||||||||||
Allowance for deferred tax asset | 489 | 61 | (17 | ) | 533 | ||||||||||||
(a) | In purchase accounting, we adjusted our accounts and notes receivable and deferred tax assets to fair value resulting in the elimination of historical allowances for doubtful accounts, reserves for sales returns and allowances and allowances for deferred tax assets. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Consolidation | ' | ||||||||||||||||
Basis of Consolidation | |||||||||||||||||
The accompanying financial statements present the consolidated accounts of all entities in which the Company has a controlling voting interest and/or variable interest required to be consolidated in accordance with U.S. GAAP. All inter-company balances and transactions have been eliminated. Certain reclassifications have been made to the prior fiscal years’ consolidated financial statements to conform with the current fiscal-year presentation. | |||||||||||||||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”) requires the Company first evaluate its investments to determine if any investments qualify as a variable interest entity (“VIE”). A VIE is consolidated if the Company is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has both (i) the power to control the most significant activities of the VIE and (ii) either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If an entity is not deemed to be a VIE, the Company consolidates the entity if the Company has a controlling voting interest. | |||||||||||||||||
The Company maintains a 52-53 week fiscal year ending on the last Friday in each reporting period. The fiscal year ended September 30, 2013 ended on September 27, 2013, the fiscal year ended September 30, 2012 ended on September 28, 2012, and the twelve months ended September 30, 2011 ended on September 30, 2011. For convenience purposes, the Company continues to date its financial statements as of September 30. | |||||||||||||||||
The Company has performed a review of all subsequent events through the date the financial statements were issued, and has determined that other than described in Note 20 no additional disclosures are necessary. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||
Business Combinations | ' | ||||||||||||||||
Business Combinations | |||||||||||||||||
The Company accounts for its business acquisitions under the FASB ASC Topic 805, Business Combination (“ASC 805”) guidance for business combinations. The total cost of acquisitions is allocated to the underlying identifiable net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset useful lives and market multiples, among other items. | |||||||||||||||||
Cash and Equivalents | ' | ||||||||||||||||
Cash and Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. The Company includes checks outstanding at year end as a component of accounts payable, instead of a reduction in its cash balance. | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value. | |||||||||||||||||
Sales Returns and Allowance for Doubtful Accounts | ' | ||||||||||||||||
Sales Returns and Allowance for Doubtful Accounts | |||||||||||||||||
Management’s estimate of physical recorded music products that will be returned, and the amount of receivables that will ultimately be collected is an area of judgment affecting reported revenues and operating income. In estimating physical product sales that will be returned, management analyzes vendor sales of product, historical return trends, current economic conditions, and changes in customer demand. Based on this information, management reserves a percentage of any physical product sales that provide the customer with the right of return. The provision for such sales returns is reflected as a reduction in the revenues from the related sale. | |||||||||||||||||
Similarly, the Company monitors customer credit risk related to accounts receivable. Significant judgments and estimates are involved in evaluating if such amounts will ultimately be fully collected. On an ongoing basis, the Company tracks customer exposure based on news reports, ratings agency information and direct dialogue with customers. Counterparties that are determined to be of a higher risk are evaluated to assess whether the payment terms previously granted to them should be modified. The Company also monitors payment levels from customers, and a provision for estimated uncollectible amounts is maintained based on such payment levels, historical experience, management’s views on trends in the overall receivable agings and, for larger accounts, analyses of specific risks on a customer specific basis. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Customer credit risk represents the potential for financial loss if a customer is unwilling or unable to meet its agreed upon contractual payment obligations. The Company has no Recorded Music customers that individually represent more than 10% of the Company’s consolidated gross accounts receivable. As such, the Company does not believe there is any significant collection risk. | |||||||||||||||||
In the Music Publishing business, the Company collects a significant portion of its royalties from copyright collection societies around the world. Collection societies and associations generally are not-for-profit organizations that represent composers, songwriters and music publishers. These organizations seek to protect the rights of their members by licensing, collecting license fees and distributing royalties for the use of the members’ works. Accordingly, the Company does not believe there is any significant collection risk from such societies. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of DVDs, CDs and related music products, as well as published sheet music and songbooks. Inventories are stated at the lower of cost or estimated realizable value. Cost is determined using first-in, first-out (“FIFO”) and average cost methods, which approximate cost under the FIFO method. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost. | |||||||||||||||||
Derivative and Financial Instruments | ' | ||||||||||||||||
Derivative and Financial Instruments | |||||||||||||||||
The Company accounts for these investments as required by the FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized on the balance sheet at fair value. ASC 815 also provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. In addition, the ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. | |||||||||||||||||
The carrying value of the Company’s financial instruments approximates fair value, except for certain differences relating to long-term, fixed-rate debt (see Note 19) and other financial instruments that are not significant. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques. | |||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant and equipment existing at the date of the Merger or acquired in conjunction with subsequent business combinations are recorded at fair value. All other additions are recorded at historical cost. Depreciation is calculated using the straight-line method based upon the estimated useful lives of depreciable assets as follows: five to seven years for furniture and fixtures, periods of up to five years for computer equipment and periods of up to seven years for machinery and equipment. Buildings are depreciated over periods of up to forty years. Leasehold improvements are depreciated over the life of the lease or estimated useful lives of the improvements, whichever period is shorter. | |||||||||||||||||
Internal-Use Software Development Costs | ' | ||||||||||||||||
Internal-Use Software Development Costs | |||||||||||||||||
As required by FASB ASC Subtopic 350-40, Internal-Use Software (“ASC Topic 350-40”), the Company capitalizes certain external and internal computer software costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing and installation activities. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software costs are depreciated over the estimated useful life of the underlying project on a straight-line basis, generally not exceeding five years and are recorded as a component of depreciation expense. | |||||||||||||||||
Accounting for Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Accounting for Goodwill and Other Intangible Assets | |||||||||||||||||
In accordance with FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”), the Company accounts for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price over the fair value of net assets, including the amount assigned to identifiable intangible assets. Pursuant to this guidance, the Company does not amortize the goodwill balance and instead, performs an annual impairment test to assess the fair value of goodwill over its carrying value. Identifiable intangible assets with finite lives are amortized over their useful lives. | |||||||||||||||||
Goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, its goodwill is not impaired and the second step of the impairment test is not necessary. If the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. The second step of the goodwill impairment test compares the implied fair value of the reporting unit goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess. Goodwill is tested annually for impairment during the fourth quarter of each fiscal year as of July 1 or earlier upon the occurrence of certain events or substantive changes in circumstances. | |||||||||||||||||
The Company performs an annual impairment test of its indefinite-lived intangible assets unless events occur which trigger the need for an earlier impairment test. The impairment test involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The impairment test requires management to make assumptions about future conditions impacting the value of the indefinite-lived intangible assets, including projected growth rates, cost of capital, effective tax rates, tax amortization periods, royalty rates, market share and others. | |||||||||||||||||
The impairment test for other intangible assets not subject to amortization involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair value of intangible assets not subject to amortization are determined using a DCF analysis. Common among such an approach is the “relief from royalty” methodology, which is used in estimating the fair value of the Company’s trademarks. Discount rate assumptions are based on an assessment of the risk inherent in the projected future cash flows generated by the respective intangible assets. Also subject to judgment are assumptions about royalty rates, which are based on the estimated rates at which similar trademarks are being licensed in the marketplace. | |||||||||||||||||
Valuation of Long-Lived Assets | ' | ||||||||||||||||
Valuation of Long-Lived Assets | |||||||||||||||||
The Company periodically reviews the carrying value of its long-lived assets, including finite lived intangibles, property, plant and equipment and amortizable intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the lives assigned may no longer be appropriate. To the extent the estimated future cash inflows attributable to the asset, less estimated future cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan to dispose of the assets, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. If it is determined that events and circumstances warrant a revision to the remaining period of amortization, an asset’s remaining useful life shall be changed, and the remaining carrying amount of the asset shall be amortized prospectively over that revised remaining useful life. | |||||||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||
Comprehensive income (loss), which is reported in the accompanying consolidated statements of equity (deficit), consists of net income (loss) and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss). For the Company, the components of other comprehensive income (loss) primarily consist of foreign currency translation gains and losses, minimum pension liabilities, and deferred gains and losses on financial instruments designated as hedges under ASC 815, which include interest-rate swap and foreign exchange contracts. The following summary sets forth the components of other comprehensive income (loss), net of related taxes, which have been accumulated in equity (deficit) since September 30, 2010 (Predecessor): | |||||||||||||||||
Foreign | Minimum | Deferred Gains | Accumulated | ||||||||||||||
Currency | Pension | (Losses) | Other | ||||||||||||||
Translation | Liability | On Derivative | Comprehensive | ||||||||||||||
Gain (Loss) | Adjustment | Financial | Income (Loss) | ||||||||||||||
Instruments | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2010 (Predecessor) | $ | 58 | $ | (3 | ) | $ | (2 | ) | $ | 53 | |||||||
Activity through July 19, 2011 | 9 | — | 2 | 11 | |||||||||||||
Balance at July 19, 2011 (Predecessor) | $ | 67 | $ | (3 | ) | $ | — | $ | 64 | ||||||||
Successor activity from July 20, 2011 through September 30, 2011 | (35 | ) | 1 | 1 | (33 | ) | |||||||||||
Balance at September 30, 2011 (Successor) | $ | (35 | ) | $ | 1 | $ | 1 | $ | (33 | ) | |||||||
Activity through September 30, 2012 | (19 | ) | (7 | ) | — | (26 | ) | ||||||||||
Balance at September 30, 2012 (Successor) | $ | (54 | ) | $ | (6 | ) | $ | 1 | $ | (59 | ) | ||||||
Activity through September 30, 2013 | (3 | ) | 2 | (1 | ) | (2 | ) | ||||||||||
Balance at September 30, 2013 (Successor) | $ | (57 | ) | $ | (4 | ) | $ | — | $ | (61 | ) | ||||||
Foreign Currency Translation | ' | ||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
The financial position and operating results of substantially all foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of equity (deficit) as a component of accumulated other comprehensive income (loss). | |||||||||||||||||
Revenues | ' | ||||||||||||||||
Revenues | |||||||||||||||||
Recorded Music | |||||||||||||||||
As required by FASB ASC Topic 605, Revenue Recognition (“ASC 605”), the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. | |||||||||||||||||
Revenues from the sale of physical Recorded Music products are recognized upon delivery, which occurs once the product has been shipped and title and risk of loss have been transferred. In accordance with industry practice and as is customary in many territories, certain products, such as CDs and DVDs, are sold to customers with the right to return unsold items. Revenues from such sales are recognized upon shipment based on gross sales less a provision for future estimated returns. Revenues from the sale of Recorded Music products through digital distribution channels are recognized when the products are sold and related sales accounting reports are delivered by the providers. | |||||||||||||||||
Music Publishing | |||||||||||||||||
Music Publishing revenues are earned from the receipt of royalties relating to the licensing of rights in musical compositions, and the sale of published sheet music and songbooks. The receipt of royalties principally relates to amounts earned from the public performance of copyrighted material, the mechanical reproduction of copyrighted material on recorded media including digital formats, and the use of copyrighted material in synchronization with visual images. Consistent with industry practice, music publishing royalties, except for synchronization royalties and mechanical royalties in the U.S., generally are recognized as revenue when cash is received. Synchronization revenue and mechanical revenue in the U.S. are recognized as revenue on an accrual basis when all revenue recognition criteria are met in accordance with ASC 605. | |||||||||||||||||
Gross Versus Net Revenue Classification | |||||||||||||||||
In the normal course of business, the Company acts as an intermediary or agent with respect to certain payments received from third parties. For example, the Company distributes music product on behalf of third-party record labels. As required by FASB ASC Subtopic 605-45, Principal Agent Considerations, such transactions are recorded on a “gross” or “net” basis depending on whether the Company is acting as the “principal” in the transaction or acting as an “agent” in the transaction. The Company serves as the principal in transactions in which it has substantial risks and rewards of ownership and, accordingly, revenues are recorded on a gross basis. For those transactions in which the Company does not have substantial risks and rewards of ownership, the Company is considered an agent and, accordingly, revenues are recorded on a net basis. | |||||||||||||||||
To the extent revenues are recorded on a gross basis, any participations and royalties paid to third parties are recorded as expenses so that the net amount (gross revenues less expenses) flows through operating income. To the extent revenues are recorded on a net basis, revenues are reported based on the amounts received, less participations and royalties paid to third parties. In both cases, the impact on operating income is the same whether the Company records the revenues on a gross or net basis. | |||||||||||||||||
Based on an evaluation of the individual terms of each contract and whether the Company is acting as principal or agent, the Company generally records revenues from the distribution of recorded music product on behalf of third-party record labels on a gross basis. However, revenues are recorded on a net basis for recorded music compilations distributed by other record companies where the Company has a right to participate in the profits. | |||||||||||||||||
Royalty Advances and Royalty Costs | ' | ||||||||||||||||
Royalty Advances and Royalty Costs | |||||||||||||||||
The Company regularly commits to and pays royalty advances to its recording artists and songwriters in respect of future sales. The Company accounts for these advances under the related guidance in FASB ASC Topic 928, Entertainment—Music (“ASC 928”). Under ASC 928, the Company capitalizes as assets certain advances that it believes are recoverable from future royalties to be earned by the recording artist or songwriter. Advances vary in both amount and expected life based on the underlying recording artist or songwriter. Advances to recording artists or songwriters with a history of successful commercial acceptability will typically be larger than advances to a newer or unproven recording artist or songwriter. In addition, in most cases these advances represent a multi-album release or multi-song obligation and the number of albums releases and songs will vary by recording artist or songwriter. | |||||||||||||||||
The Company’s decision to capitalize an advance to a recording artist or songwriter as an asset requires significant judgment as to the recoverability of the advance. The recoverability is assessed upon initial commitment of the advance based upon the Company’s forecast of anticipated revenue from the sale of future and existing albums or songs. In determining whether the advance is recoverable, the Company evaluates the current and past popularity of the recording artist or songwriter, the sales history of the recording artist or songwriter, the initial or expected commercial acceptability of the product, the current and past popularity of the genre of music that the product is designed to appeal to, and other relevant factors. Based upon this information, the Company expenses the portion of any advance that it believes is not recoverable. In most cases, advances to recording artists or songwriters without a history of success and evidence of current or past popularity will be expensed immediately. Significant advances are individually assessed for recoverability continuously and at minimum on a quarterly basis. As part of the ongoing assessment of recoverability, the Company monitors the projection of future sales based on the current environment, the recording artist’s or songwriter’s ability to meet their contractual obligations as well as the Company’s intent to support future album releases or songs from the recording artist or songwriter. To the extent that a portion of an outstanding advance is no longer deemed recoverable, that amount will be expensed in the period the determination is made. | |||||||||||||||||
Advertising | ' | ||||||||||||||||
Advertising | |||||||||||||||||
As required by the FASB ASC Subtopic 720-35, Advertising Costs (“ASC 720-35”), advertising costs, including costs to produce music videos used for promotional purposes, are expensed as incurred. Advertising expense amounted to approximately $70 million, $67 million, $11 million and $77 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor) and for the period from October 1, 2010 to July 19, 2011 (Predecessor), respectively. Deferred advertising costs, which principally relate to advertisements that have been paid for but not been exhibited or services that have not been received, were not material for all periods presented. | |||||||||||||||||
Shipping and Handling | ' | ||||||||||||||||
Shipping and Handling | |||||||||||||||||
The costs associated with shipping goods to customers are recorded as cost of revenues. Shipping and handling charges billed to customers are included in revenues. | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
The Company accounts for share-based payments as required by FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense. Under the fair value recognition provision of ASC 718, equity classified share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. Under the Predecessor, the Company had applied the modified prospective method and expensed deferred share-based compensation on an accelerated basis over the vesting period of the share-based payment award. Expected forfeitures were included in determining share-based compensation expense. | |||||||||||||||||
Predecessor estimated the fair value of its grants made using the binomial method, which included assumptions related to volatility, dividend yield and risk-free interest rate. Predecessor also awarded or sold restricted shares to its employees. For restricted shares awarded or sold below market value, the accounting charge was measured at the grant date and amortized ratably as non-cash compensation over the vesting term. The Company does not currently have any share-based payments classified as equity. | |||||||||||||||||
Under the recognition provision of ASC 718, liability classified share-based compensation costs are measured each reporting date until settlement. The Company’s policy is to measure share-based compensation costs using the intrinsic value method instead of fair value as it is not practical to estimate the volatility of its share price. During fiscal year 2013, the Company initiated a long term incentive plan that has liability classification for share-based compensation costs. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are provided using the asset and liability method presented by FASB ASC Topic 740, Income Taxes (“ASC Topic 740”). Under this method, income taxes (i.e., deferred tax assets, deferred tax liabilities, taxes currently payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current fiscal year and include the results of any differences between U.S. GAAP and tax reporting. Deferred income taxes reflect the tax effect of net operating loss, capital loss and general business credit carry forwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statements and income tax purposes, as determined under enacted tax laws and rates. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. | |||||||||||||||||
From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination based on their technical merits. There is considerable judgment involved in determining whether positions taken on the Company’s tax returns are more likely than not of being sustained. | |||||||||||||||||
New Accounting Pronouncements | ' | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2011-05, Presentation of Comprehensive Income. ASU 2011-05 requires entities to present items of net income and other comprehensive income either in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive, statements of operations and other comprehensive income. The Company simultaneously adopted ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 defers the requirement to present components of reclassifications of comprehensive income on the statement of comprehensive income, with all other requirements of ASU 2011-05 unaffected. The adoption of these standard updates did not have a significant impact on the Company’s financial statements, other than presentation. | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2011-08, Testing Goodwill for Impairment. ASU 2011-08 provides entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
During the first quarter of fiscal 2013, the Company adopted ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
During the fourth quarter of fiscal 2013, the Company adopted ASU 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, which was effective upon issuance for financial statements that have not been issued. This ASU allows an indefinite deferral of a previously expiring piece of guidance, which means that the Company can continue to use the intrinsic value method for its share-based compensation plan indefinitely. The adoption of this standard update did not have an impact on the Company’s financial statements. | |||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify which financial assets and financial liabilities are included within the scope of ASU 2011-11. These ASUs require additional quantitative and qualitative disclosures over financial instruments and derivative instruments that are offset on the balance sheet or subject to master netting arrangements. Both ASUs are effective for annual and interim reporting periods for fiscal years beginning on or after January 1, 2013. The adoption of these standards is not expected to have a significant impact on the Company’s financial statements, other than presentation. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires entities to disclose, in one place, information about the amounts reclassified out of accumulated other comprehensive income by component. ASU 2013-02 is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2012. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements, other than disclosure. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU attempts to eliminate diversity in practice by requiring an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements, other than presentation. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | ||||||||||||||||
The following summary sets forth the components of other comprehensive income (loss), net of related taxes, which have been accumulated in equity (deficit) since September 30, 2010 (Predecessor): | |||||||||||||||||
Foreign | Minimum | Deferred Gains | Accumulated | ||||||||||||||
Currency | Pension | (Losses) | Other | ||||||||||||||
Translation | Liability | On Derivative | Comprehensive | ||||||||||||||
Gain (Loss) | Adjustment | Financial | Income (Loss) | ||||||||||||||
Instruments | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2010 (Predecessor) | $ | 58 | $ | (3 | ) | $ | (2 | ) | $ | 53 | |||||||
Activity through July 19, 2011 | 9 | — | 2 | 11 | |||||||||||||
Balance at July 19, 2011 (Predecessor) | $ | 67 | $ | (3 | ) | $ | — | $ | 64 | ||||||||
Successor activity from July 20, 2011 through September 30, 2011 | (35 | ) | 1 | 1 | (33 | ) | |||||||||||
Balance at September 30, 2011 (Successor) | $ | (35 | ) | $ | 1 | $ | 1 | $ | (33 | ) | |||||||
Activity through September 30, 2012 | (19 | ) | (7 | ) | — | (26 | ) | ||||||||||
Balance at September 30, 2012 (Successor) | $ | (54 | ) | $ | (6 | ) | $ | 1 | $ | (59 | ) | ||||||
Activity through September 30, 2013 | (3 | ) | 2 | (1 | ) | (2 | ) | ||||||||||
Balance at September 30, 2013 (Successor) | $ | (57 | ) | $ | (4 | ) | $ | — | $ | (61 | ) | ||||||
Acquisition_of_Parlophone_Labe1
Acquisition of Parlophone Label Group (Tables) (PLG [Member]) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
PLG [Member] | ' | ||||||||
Preliminary Estimate of Acquisition Consideration and Preliminary Purchase Price Allocation to Estimated Fair Value of Assets Acquired and Liabilities Assumed | ' | ||||||||
The table below presents (i) the preliminary estimate of the Acquisition consideration as it relates to the acquisition of PLG by the Buyers and (ii) the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of July 1, 2013 (in millions): | |||||||||
Purchase Price | £ | 487 | |||||||
Preliminary Working Capital Adjustment | 13 | ||||||||
Adjusted Purchase Price | £ | 500 | |||||||
Foreign Exchange Rate at July 1, 2013 | 1.53 | ||||||||
Adjusted Purchase Price in U.S. dollars | $ | 765 | |||||||
Fair Value of assets acquired and liabilities assumed: | |||||||||
Cash | 46 | ||||||||
Accounts receivable | 80 | ||||||||
Other current assets | 8 | ||||||||
Property, plant and equipment | 39 | ||||||||
Intangible assets | 764 | ||||||||
Accounts payable | (83 | ) | |||||||
Royalties payable | (147 | ) | |||||||
Other current liabilities | (21 | ) | |||||||
Deferred revenue | (25 | ) | |||||||
Deferred tax liabilities | (139 | ) | |||||||
Other noncurrent liabilities | (20 | ) | |||||||
Fair value of net assets acquired | 502 | ||||||||
Goodwill recorded | 263 | ||||||||
Total purchase price allocated | $ | 765 | |||||||
Components of Intangible Assets Identified and Useful Lives | ' | ||||||||
The components of the intangible assets identified in the table above and the related useful lives, allocated to the Company’s Recorded Music reportable segment, are as follows: | |||||||||
Value | Useful Life | ||||||||
(in millions) | |||||||||
Trademark and trade name | $ | 17 | Indefinite | ||||||
Catalog | 442 | 13 years | |||||||
Artist contracts | 305 | 10 years | |||||||
Business Acquisition Pro Forma Financial Information | ' | ||||||||
The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Acquisition had taken place at the beginning of fiscal 2012. | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Revenue | $ | 3,131 | $ | 3,130 | |||||
Operating income (loss) | 135 | (392 | ) | ||||||
Net loss attributable to Warner Music Group Corp. | (154 | ) | (609 | ) |
Merger_Tables
Merger (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Consideration Transferred and Fair Value of Assets Acquired and Liabilities Assumed | ' | ||||||||
The table below presents the consideration transferred and the fair value of the assets acquired and liabilities assumed as a result of the Merger (in millions). | |||||||||
Cash paid to acquire outstanding WMG shares | $ | 1,228 | |||||||
Cash paid to settle equity awards | 50 | ||||||||
Total cash consideration | 1,278 | ||||||||
Less: Cash paid by WMG | (179 | ) | |||||||
Net Investment | 1,099 | ||||||||
WMG shares previously held by Parent | 30 | ||||||||
Total consideration | $ | 1,129 | |||||||
Fair Value of assets acquired and liabilities assumed: | |||||||||
Cash | $ | 140 | |||||||
Accounts receivable | 331 | ||||||||
Inventory | 28 | ||||||||
Artist advances | 341 | ||||||||
Property, plant and equipment | 182 | ||||||||
Intangible assets | 2,879 | ||||||||
Other assets | 117 | ||||||||
Current liabilities | (1,544 | ) | |||||||
Deferred income tax liabilities | (363 | ) | |||||||
Deferred revenue | (115 | ) | |||||||
Other noncurrent liabilities | (173 | ) | |||||||
Debt | (2,049 | ) | |||||||
Noncontrolling interests | (17 | ) | |||||||
Fair value of net liabilities assumed | (243 | ) | |||||||
Goodwill recorded | 1,372 | ||||||||
Total consideration allocated | $ | 1,129 | |||||||
Components of Intangible Assets Identified | ' | ||||||||
The components of the intangible assets identified in the table above and the related useful lives, allocated to the Company’s reportable segments, are as follows: | |||||||||
Value | Useful | ||||||||
Life | |||||||||
(in millions) | |||||||||
Recorded Music | |||||||||
Trademarks and trade names | $ | 51 | Indefinite | ||||||
Trademarks and trade names | 7 | 7 years | |||||||
Catalog | 560 | 5-11 years | |||||||
Artist contracts | 520 | 8-12 years | |||||||
Music Publishing | |||||||||
Trademarks/trade names | $ | 51 | Indefinite | ||||||
Copyrights | 1,530 | 28 years | |||||||
Songwriter contracts | 160 | 29 years |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consist of the following: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Land | $ | 16 | $ | 9 | |||||
Buildings and improvements | 81 | 47 | |||||||
Furniture and fixtures | 13 | 12 | |||||||
Computer hardware and software | 155 | 134 | |||||||
Construction in progress | 14 | 1 | |||||||
Machinery and equipment | 9 | 9 | |||||||
288 | 212 | ||||||||
Less accumulated depreciation | (108 | ) | (60 | ) | |||||
$ | 180 | $ | 152 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in Goodwill for Each Reportable Segment | ' | ||||||||||||
The following analysis details the changes in goodwill for each reportable segment: | |||||||||||||
Recorded | Music | Total | |||||||||||
Music | Publishing | ||||||||||||
(in millions) | |||||||||||||
Balance at September 30, 2011 (Successor) | $ | 908 | $ | 464 | $ | 1,372 | |||||||
Acquisitions | — | — | — | ||||||||||
Dispositions | — | — | — | ||||||||||
Other adjustments | 8 | — | 8 | ||||||||||
Balance at September 30, 2012 (Successor) | 916 | 464 | 1,380 | ||||||||||
Acquisitions | 274 | — | 274 | ||||||||||
Dispositions | — | — | — | ||||||||||
Other adjustments | 14 | — | 14 | ||||||||||
Balance at September 30, 2013 (Successor) | $ | 1,204 | $ | 464 | $ | 1,668 | |||||||
Schedule of Other Intangible Assets | ' | ||||||||||||
Other intangible assets consist of the following: | |||||||||||||
Weighted | Successor | Successor | |||||||||||
Average | September 30, | September 30, | |||||||||||
Useful Life | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Recorded music catalog | 11 years | $ | 1,006 | $ | 547 | ||||||||
Music publishing copyrights | 28 years | 1,546 | 1,508 | ||||||||||
Artist and songwriter contracts | 13 years | 983 | 667 | ||||||||||
Trademarks | 7 years | 7 | 7 | ||||||||||
3,542 | 2,729 | ||||||||||||
Accumulated amortization | (435 | ) | (230 | ) | |||||||||
Total net intangible assets subject to amortization | 3,107 | 2,499 | |||||||||||
Intangible assets not subject to amortization: | |||||||||||||
Trademarks and tradenames | Indefinite | 120 | 102 | ||||||||||
Total net other intangible assets | $ | 3,227 | $ | 2,601 | |||||||||
Expected Amortization of Intangible Assets | ' | ||||||||||||
Based on the amount of intangible assets subject to amortization at September 30, 2013, the expected amortization for each of the next five fiscal years and thereafter are as follows: | |||||||||||||
Fiscal Years Ending | |||||||||||||
September 30, | |||||||||||||
(in millions) | |||||||||||||
2014 | $ | 260 | |||||||||||
2015 | 260 | ||||||||||||
2016 | 250 | ||||||||||||
2017 | 210 | ||||||||||||
2018 | 210 | ||||||||||||
Thereafter | 1,917 | ||||||||||||
$ | 3,107 | ||||||||||||
Other_Noncurrent_Liabilities_T
Other Noncurrent Liabilities (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Summary of Other Noncurrent Liabilities | ' | ||||||||
Other noncurrent liabilities consist of the following: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Unfavorable and other contractual obligations | $ | 64 | $ | 59 | |||||
Accrued compensation and benefits | 67 | 48 | |||||||
Capital lease | 20 | — | |||||||
Deferred income | 9 | 4 | |||||||
Other | 56 | 36 | |||||||
$ | 216 | $ | 147 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
Long-term debt, including the current portion, consists of the following (in millions): | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Old Revolving Credit Facility (a) | $ | — | $ | — | |||||
Revolving Credit Facility (b) | — | — | |||||||
Term Loan Facility due 2020—Acquisition Corp. (c) | 1,303 | — | |||||||
9.5% Senior Secured Notes due 2016—Acquisition Corp. (d) | — | 1,151 | |||||||
9.5% Senior Secured Notes due 2016—Acquisition Corp. (e) | — | 156 | |||||||
6.00% Senior Secured Notes due 2021—Acquisition Corp. | 450 | — | |||||||
6.25% Senior Secured Notes due 2021—Acquisition Corp. (f) | 213 | — | |||||||
11.5% Senior Notes due 2018—Acquisition Corp. (g) | 751 | 749 | |||||||
13.75% Senior Notes due 2019—Holdings | 150 | 150 | |||||||
Total debt | $ | 2,867 | $ | 2,206 | |||||
Less: current portion | 13 | — | |||||||
Total long-term debt | $ | 2,854 | $ | 2,206 | |||||
(a) | Reflects $60 million of commitments under the Old Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2012 (Successor). There were no loans outstanding under the Old Revolving Credit Facility as of September 30, 2012 (Successor). The Old Revolving Credit Facility was retired in connection with the 2012 Refinancing (as described below) and replaced with the Revolving Credit Facility. | ||||||||
(b) | Reflects $150 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2013 (Successor). There were no loans outstanding under the Revolving Credit Facility as of September 30, 2013 (Successor). | ||||||||
(c) | Principal amount of $1.310 billion less unamortized discount of $7 million. Of this amount, $13 million, representing the scheduled amortization of the Term Loan, was included in the current portion of long term debt at September 30, 2013 (Successor). | ||||||||
(d) | Face amount of $1.1 billion plus unamortized premiums of $51 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | ||||||||
(e) | Face amount of $150 million plus unamortized premiums of $6 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | ||||||||
(f) | Face amount of €158 million. Amount above represents the dollar equivalent of such notes at September 30, 2013 (Successor). | ||||||||
(g) | Face amount of $765 million less unamortized discounts of $14 million and $16 million at September 30, 2013 (Successor) and September 30, 2012 (Successor), respectively. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Domestic and Foreign Pretax (Loss) Income from Continuing Operations | ' | ||||||||||||||||||
The domestic and foreign pretax (loss) income from continuing operations is as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, | July 19, 2011 | ||||||||||||||||
2011 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Domestic | $ | (73 | ) | $ | (84 | ) | $ | (24 | ) | $ | (129 | ) | |||||||
Foreign | (152 | ) | (24 | ) | (4 | ) | (19 | ) | |||||||||||
Total | $ | (225 | ) | $ | (108 | ) | $ | (28 | ) | $ | (148 | ) | |||||||
Current and Deferred Income Taxes | ' | ||||||||||||||||||
Current and deferred income taxes (tax benefits) provided are as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, 2011 | July 19, 2011 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Federal: | |||||||||||||||||||
Current | $ | — | $ | — | $ | — | $ | — | |||||||||||
Deferred | (6 | ) | (8 | ) | 1 | (5 | ) | ||||||||||||
Foreign : | |||||||||||||||||||
Current (a) | 25 | 24 | 5 | 40 | |||||||||||||||
Deferred | (54 | ) | (18 | ) | (3 | ) | (10 | ) | |||||||||||
U.S. State: | |||||||||||||||||||
Current | 13 | 3 | — | 2 | |||||||||||||||
Deferred | (9 | ) | — | — | — | ||||||||||||||
Total | $ | (31 | ) | $ | 1 | $ | 3 | $ | 27 | ||||||||||
(a) | Includes cash withholding taxes of $9 million, $8 million, $3 million and $9 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor), for the period from October 1, 2010 to July 19, 2011 (Predecessor), respectively. | ||||||||||||||||||
Differences between U.S. Federal Statutory Income Tax Rate of 35% and Income Taxes Provided | ' | ||||||||||||||||||
The differences between the U.S. federal statutory income tax rate of 35% and income taxes provided are as follows: | |||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | From July 20, 2011 | From October 1, 2010 | ||||||||||||||||
September 30, | September 30, | through | through | ||||||||||||||||
2013 | 2012 | September 30, 2011 | July 19, 2011 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Taxes on income at the U.S. federal statutory rate | $ | (79 | ) | $ | (37 | ) | $ | (10 | ) | $ | (52 | ) | |||||||
U.S. state and local taxes | 4 | 3 | — | 2 | |||||||||||||||
Foreign income taxed at different rates, including withholding taxes | 15 | 13 | 3 | 18 | |||||||||||||||
Increase in valuation allowance | 36 | 28 | 6 | 55 | |||||||||||||||
Release of valuation allowance | (1 | ) | (1 | ) | — | (11 | ) | ||||||||||||
Change in tax rates | (20 | ) | (6 | ) | — | — | |||||||||||||
Nondeductible transaction costs | 13 | — | 4 | 13 | |||||||||||||||
Other | 1 | 1 | — | 2 | |||||||||||||||
Total income tax (benefit) expense | $ | (31 | ) | $ | 1 | $ | 3 | $ | 27 | ||||||||||
Significant Components of Company's Net Deferred Tax Assets/(Liabilities) | ' | ||||||||||||||||||
Significant components of the Company’s net deferred tax assets/(liabilities) are summarized below: | |||||||||||||||||||
Successor | Successor | ||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Allowances and reserves | $ | 44 | $ | 39 | |||||||||||||||
Employee benefits and compensation | 39 | 38 | |||||||||||||||||
Other accruals | 59 | 48 | |||||||||||||||||
Long-term debt | — | 42 | |||||||||||||||||
Tax attribute carry forwards | 518 | 418 | |||||||||||||||||
Other | 1 | 1 | |||||||||||||||||
Total deferred tax assets | 661 | 586 | |||||||||||||||||
Valuation allowance | (296 | ) | (244 | ) | |||||||||||||||
Net deferred tax assets | 365 | 342 | |||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||
Depreciation, amortization and artist advances | (12 | ) | (16 | ) | |||||||||||||||
Intangible assets | (749 | ) | (650 | ) | |||||||||||||||
Total deferred tax liabilities | (761 | ) | (666 | ) | |||||||||||||||
Net deferred tax liabilities | $ | (396 | ) | $ | (324 | ) | |||||||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows (in millions): | |||||||||||||||||||
Balance at September 30, 2010 (Predecessor) | $ | 10 | |||||||||||||||||
Additions for current year tax positions | 1 | ||||||||||||||||||
Additions for prior year tax positions | 18 | ||||||||||||||||||
Subtractions for prior year tax positions | (18 | ) | |||||||||||||||||
Balance at July 19, 2011 (Predecessor) | $ | 11 | |||||||||||||||||
Unrecognized tax benefits assigned in purchase price accounting | $ | 11 | |||||||||||||||||
Additions for current year tax positions | — | ||||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||||
Balance at September 30, 2011 (Successor) | $ | 11 | |||||||||||||||||
Additions for current year tax positions | 4 | ||||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||||
Subtractions for prior year tax positions | (1 | ) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | 14 | |||||||||||||||||
Additions for current year tax positions | 5 | ||||||||||||||||||
Additions for prior year tax positions | 11 | ||||||||||||||||||
Subtractions for prior year tax positions | — | ||||||||||||||||||
Balance at September 30, 2013 (Successor) | $ | 30 | |||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Charges in Consolidated Statement of Operations | ' | ||||||||||||||||
Total restructuring activity is as follows: | |||||||||||||||||
Employee- | Real Estate Costs | Other | Total | ||||||||||||||
related Costs | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | — | $ | — | $ | — | $ | — | |||||||||
Restructuring expense | 22 | — | — | 22 | |||||||||||||
Cash Payments | (12 | ) | — | — | (12 | ) | |||||||||||
Balance at September 30, 2013 (Successor) | $ | 10 | $ | — | $ | — | $ | 10 | |||||||||
Income Statement [Member] | ' | ||||||||||||||||
Summary of Charges in Consolidated Statement of Operations | ' | ||||||||||||||||
A summary of the charges in the consolidated statement of operations resulting from the Restructuring Plan is shown below: | |||||||||||||||||
Successor | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Selling, general and administrative expense | $ | 22 | |||||||||||||||
Total restructuring expense | $ | 22 | |||||||||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Summary of Company's Share Awards | ' | ||||||||||||||||||||||||
The following is a summary of the Company’s share awards for the period ended September 30, 2013: | |||||||||||||||||||||||||
Deferred | Matching | Deferred | Matching | Deferred Equity | Matching Equity | ||||||||||||||||||||
Equity Units | Equity Units | Equity Units | Equity Units | Units Weighted- | Units Weighted- | ||||||||||||||||||||
Fair Value | Intrinsic | Average | Average | ||||||||||||||||||||||
Value | Grant-Date | Grant-Date | |||||||||||||||||||||||
Intrinsic | Intrinsic | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Unvested units at January 1, 2013 | |||||||||||||||||||||||||
Granted | 25 | 25 | $ | 134.62 | $ | 27.49 | $ | 107.13 | $ | — | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||||||
Forfeited | (1 | ) | (1 | ) | — | — | 107.13 | — | |||||||||||||||||
Unvested units at September 30, 2013 | 24 | 24 | 134.62 | 27.49 | 107.13 | — | |||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Future Minimum Payments Under Non-Cancelable Capital and Operating Leases (Net of Sublease Income) | ' | ||||||||
At September 30, 2013 (Successor), future minimum payments under non-cancelable capital and operating leases (net of sublease income) are as follows: | |||||||||
Years | Capital Leases | Operating Leases | |||||||
(in millions) | |||||||||
2014 | $ | 3 | $ | 66 | |||||
2015 | 3 | 54 | |||||||
2016 | 3 | 45 | |||||||
2017 | 2 | 39 | |||||||
2018 | — | 27 | |||||||
Thereafter | — | 64 | |||||||
Total | $ | 11 | $ | 295 | |||||
Schedule of Capital Lease Amounts Included in Property, Plant and Equipment | ' | ||||||||
Amortization of capital leases is included in depreciation expense in the consolidated statements of operations. Capital lease amounts included in property, plant, and equipment are as follows: | |||||||||
Successor | Successor | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
(in millions) | |||||||||
Capital Leases | $ | 33 | — | ||||||
Less accumulated amortization | — | — | |||||||
Total | $ | 33 | — | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Segment Information | ' | ||||||||||||||||||||||||||
The accounting policies of the Company’s business segments are the same as those described in the summary of significant accounting policies included elsewhere herein. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results. | |||||||||||||||||||||||||||
Recorded | Music | Corporate | Total | ||||||||||||||||||||||||
Music | Publishing | expenses and | |||||||||||||||||||||||||
eliminations | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
2013 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 2,389 | $ | 503 | $ | (21 | ) | $ | 2,871 | ||||||||||||||||||
OIBDA | 270 | 148 | (85 | ) | 333 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (32 | ) | (6 | ) | (13 | ) | (51 | ) | |||||||||||||||||||
Amortization of intangible assets | (146 | ) | (61 | ) | — | (207 | ) | ||||||||||||||||||||
Operating income (loss) | 92 | 81 | (98 | ) | 75 | ||||||||||||||||||||||
Total assets | 3,426 | 2,444 | 382 | 6,252 | |||||||||||||||||||||||
Capital expenditures | 12 | 3 | 19 | 34 | |||||||||||||||||||||||
2012 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 2,281 | $ | 518 | $ | (19 | ) | $ | 2,780 | ||||||||||||||||||
OIBDA | 289 | 146 | (82 | ) | 353 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (31 | ) | (6 | ) | (14 | ) | (51 | ) | |||||||||||||||||||
Amortization of intangible assets | (132 | ) | (61 | ) | — | (193 | ) | ||||||||||||||||||||
Operating income (loss) | 126 | 79 | (96 | ) | 109 | ||||||||||||||||||||||
Total assets | 2,343 | 2,436 | 499 | 5,278 | |||||||||||||||||||||||
Capital expenditures | 12 | 2 | 18 | 32 | |||||||||||||||||||||||
From July 20, 2011 through September 30, 2011 (Successor) | |||||||||||||||||||||||||||
Revenues | $ | 457 | $ | 103 | $ | (4 | ) | $ | 556 | ||||||||||||||||||
OIBDA | 49 | 50 | (18 | ) | 81 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (5 | ) | (1 | ) | (3 | ) | (9 | ) | |||||||||||||||||||
Amortization of intangible assets | (26 | ) | (11 | ) | (1 | ) | (38 | ) | |||||||||||||||||||
Operating income (loss) | 18 | 38 | (22 | ) | 34 | ||||||||||||||||||||||
Capital expenditures | 10 | 1 | — | 11 | |||||||||||||||||||||||
From October 1, 2010 through July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||
Revenues | $ | 1,890 | $ | 436 | $ | (15 | ) | 2,311 | |||||||||||||||||||
OIBDA | 238 | 92 | (121 | ) | 209 | ||||||||||||||||||||||
Depreciation of property, plant and equipment | (21 | ) | (3 | ) | (9 | ) | (33 | ) | |||||||||||||||||||
Amortization of intangible assets | (120 | ) | (59 | ) | 1 | (178 | ) | ||||||||||||||||||||
Operating income (loss) | 97 | 30 | (129 | ) | (2 | ) | |||||||||||||||||||||
Capital expenditures | 33 | 3 | 1 | 37 | |||||||||||||||||||||||
Long-Lived Assets and Revenue by Geographical Areas | ' | ||||||||||||||||||||||||||
Revenues relating to operations in different geographical areas are set forth below for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor) and for the period from October 1, 2010 to July 19, 2011 (Predecessor). Total assets relating to operations in different geographical areas are set forth below as of September 30, 2013 (Successor) and September 30, 2012 (Successor). | |||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2011 | ||||||||||||||||||||||||
Revenue | Long-lived | Revenue | Long-lived | Revenue | Revenue | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
United States | $ | 1,161 | $ | 106 | $ | 1,113 | $ | 113 | $ | 215 | $ | 936 | |||||||||||||||
United Kingdom | 383 | 18 | 342 | 19 | 78 | 293 | |||||||||||||||||||||
All other territories | 1,327 | 56 | 1,325 | 20 | 263 | 1,082 | |||||||||||||||||||||
Total | $ | 2,871 | $ | 180 | $ | 2,780 | $ | 152 | $ | 556 | $ | 2,311 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value of Financial Instruments | ' | ||||||||||||||||
In accordance with the fair value hierarchy, described above, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of September 30, 2013 and September 30, 2012. Balances in other current and other non-current liabilities represent purchase obligations and contingent consideration related to the Company’s various acquisitions. Derivatives not designated as hedging instruments represent the balances in other current assets and other current liabilities below and the gains and losses on these financial instruments are included as a component of other (expense) income, net, in the statement of operations. | |||||||||||||||||
Fair Value Measurements as of September 30, 2013 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Other Current Assets: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Other Current Liabilities: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | (23 | ) | $ | — | $ | (23 | ) | |||||||
Other Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (13 | ) | $ | (13 | ) | |||||||
Other Non-Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (9 | ) | $ | (9 | ) | |||||||
Total | $ | — | $ | (22 | ) | $ | (22 | ) | $ | (44 | ) | ||||||
Fair Value Measurements as of September 30, 2012 | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Other Current Assets: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | — | $ | — | $ | — | |||||||||
Other Current Liabilities: | |||||||||||||||||
Foreign Currency Forward Exchange Contracts (a) | $ | — | $ | (5 | ) | $ | — | $ | (5 | ) | |||||||
Other Non-Current Liabilities: | |||||||||||||||||
Contractual Obligations (b) | $ | — | $ | — | $ | (11 | ) | $ | (11 | ) | |||||||
Total | $ | — | $ | (5 | ) | $ | (11 | ) | $ | (16 | ) | ||||||
(a) | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates. | ||||||||||||||||
(b) | This represents purchase obligations and contingent consideration related to the Company’s various acquisitions. This is based on a discounted cash flow approach and it is adjusted to fair value on a recurring basis and any adjustments are included as a component of operating income in the statement of operations. These amounts were mainly calculated using unobservable inputs such as future earnings performance of the Company’s various acquisitions and the expected timing of the payment. The change represents the increase in contingent consideration on a previous acquisition. | ||||||||||||||||
Reconciliation of Net Assets and Liabilities Classified as Level 3 | ' | ||||||||||||||||
The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3: | |||||||||||||||||
Total | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2012 (Successor) | $ | 11 | |||||||||||||||
Additions | 15 | ||||||||||||||||
Payments | (4 | ) | |||||||||||||||
Balance at September 30, 2013 (Successor) | $ | 22 | |||||||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
The following table sets forth the quarterly information for Warner Music Group Corp. | |||||||||||||||||
Successor | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2013 (b) | 2013 (b) | 2013 (b) | 2012 (b) | ||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Revenues | $ | 764 | $ | 663 | $ | 675 | $ | 769 | |||||||||
Costs and expenses | |||||||||||||||||
Cost of revenues | (391 | ) | (371 | ) | (329 | ) | (408 | ) | |||||||||
Selling, general and administrative expenses (a) | (350 | ) | (236 | ) | (242 | ) | (262 | ) | |||||||||
Amortization of intangible assets | (64 | ) | (48 | ) | (47 | ) | (48 | ) | |||||||||
Total costs and expenses | (805 | ) | (655 | ) | (618 | ) | (718 | ) | |||||||||
Operating income | (41 | ) | 8 | 57 | 51 | ||||||||||||
Loss on extinguishment of debt | — | (2 | ) | — | (83 | ) | |||||||||||
Interest expense, net | (54 | ) | (47 | ) | (49 | ) | (53 | ) | |||||||||
Other income (expense), net | (1 | ) | (2 | ) | (4 | ) | (5 | ) | |||||||||
(Loss) from before income taxes | (96 | ) | (43 | ) | 4 | (90 | ) | ||||||||||
Income tax (expense) benefit | 39 | (19 | ) | — | 11 | ||||||||||||
Net loss | (57 | ) | (62 | ) | 4 | (79 | ) | ||||||||||
Less: income attributable to noncontrolling interest | — | (1 | ) | (2 | ) | (1 | ) | ||||||||||
Net loss attributable to Warner Music Group Corp. | $ | (57 | ) | $ | (63 | ) | $ | 2 | $ | (80 | ) | ||||||
(a) Includes depreciation expense of | $ | (13 | ) | $ | (13 | ) | $ | (12 | ) | $ | (13 | ) | |||||
(b) | The Company’s business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. | ||||||||||||||||
WARNER MUSIC GROUP CORP. | |||||||||||||||||
2012 QUARTERLY FINANCIAL INFORMATION | |||||||||||||||||
(unaudited) | |||||||||||||||||
The following table sets forth the quarterly information for Warner Music Group Corp. | |||||||||||||||||
Successor | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2012 (b) | 2012 (b) | 2012 (b) | 2011 (b) | ||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Revenues | $ | 731 | $ | 651 | $ | 623 | $ | 775 | |||||||||
Costs and expenses | |||||||||||||||||
Cost of revenues | (368 | ) | (353 | ) | (318 | ) | (420 | ) | |||||||||
Selling, general and administrative expenses (a) | (274 | ) | (244 | ) | (233 | ) | (268 | ) | |||||||||
Amortization of intangible assets | (48 | ) | (47 | ) | (50 | ) | (48 | ) | |||||||||
Total costs and expenses | (690 | ) | (644 | ) | (601 | ) | (736 | ) | |||||||||
Operating income | 41 | 7 | 22 | 39 | |||||||||||||
Interest expense, net | (56 | ) | (56 | ) | (56 | ) | (57 | ) | |||||||||
Other income (expense), net | 2 | 6 | 2 | (2 | ) | ||||||||||||
(Loss) from before income taxes | (13 | ) | (43 | ) | (32 | ) | (20 | ) | |||||||||
Income tax (expense) benefit | (4 | ) | 11 | (2 | ) | (6 | ) | ||||||||||
Net loss | (17 | ) | (32 | ) | (34 | ) | (26 | ) | |||||||||
Less: income attributable to noncontrolling interest | (1 | ) | — | (2 | ) | — | |||||||||||
Net loss attributable to Warner Music Group Corp. | $ | (18 | ) | $ | (32 | ) | $ | (36 | ) | $ | (26 | ) | |||||
(a) Includes depreciation expense of | $ | (14 | ) | $ | (12 | ) | $ | (13 | ) | $ | (12 | ) | |||||
(b) | The Company’s business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Guarantor_And_NonGuarantor_Sub1
Guarantor And Non-Guarantor Subsidiaries Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries Financial Information | ' | ||||||||||||||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||
Cash and equivalents | $ | — | $ | 16 | $ | 139 | $ | — | $ | 155 | $ | — | $ | — | $ | — | $ | 155 | |||||||||||||||||||
Accounts receivable, net | — | 185 | 326 | — | 511 | — | — | — | 511 | ||||||||||||||||||||||||||||
Inventories | — | 10 | 23 | — | 33 | — | — | — | 33 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped within one year | — | 59 | 34 | — | 93 | — | — | — | 93 | ||||||||||||||||||||||||||||
Deferred tax assets | — | 21 | 22 | — | 43 | — | — | — | 43 | ||||||||||||||||||||||||||||
Prepaid and other current assets | 5 | 8 | 46 | — | 59 | — | — | — | 59 | ||||||||||||||||||||||||||||
Total current assets | 5 | 299 | 590 | — | 894 | — | — | — | 894 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped after one year | — | 109 | 64 | — | 173 | — | — | — | 173 | ||||||||||||||||||||||||||||
Investments in and advances to (from) consolidated subsidiaries | 2,811 | 930 | — | (3,741 | ) | — | 879 | 726 | (1,605 | ) | — | ||||||||||||||||||||||||||
Property, plant and equipment, net | — | 101 | 79 | — | 180 | — | — | — | 180 | ||||||||||||||||||||||||||||
Goodwill | — | 1,379 | 289 | — | 1,668 | — | — | — | 1,668 | ||||||||||||||||||||||||||||
Intangible assets subject to amortization, net | — | 1,007 | 2,100 | — | 3,107 | — | — | — | 3,107 | ||||||||||||||||||||||||||||
Intangible assets not subject to amortization | — | 75 | 45 | — | 120 | — | — | — | 120 | ||||||||||||||||||||||||||||
Due (to) from parent companies | 799 | (27 | ) | (772 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other assets | 68 | 14 | 21 | — | 103 | 7 | — | — | 110 | ||||||||||||||||||||||||||||
Total assets | $ | 3,683 | $ | 3,887 | $ | 2,416 | $ | (3,741 | ) | $ | 6,245 | $ | 886 | $ | 726 | $ | (1,605 | ) | $ | 6,252 | |||||||||||||||||
Liabilities and Deficit: | |||||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts payable | — | $ | 96 | $ | 184 | — | $ | 280 | — | — | — | $ | 280 | ||||||||||||||||||||||||
Accrued royalties | — | 570 | 577 | — | 1,147 | — | — | — | 1,147 | ||||||||||||||||||||||||||||
Accrued liabilities | — | 94 | 227 | — | 321 | — | — | — | 321 | ||||||||||||||||||||||||||||
Accrued interest | 65 | — | — | — | 65 | 10 | — | — | 75 | ||||||||||||||||||||||||||||
Deferred revenue | — | 56 | 83 | — | 139 | — | — | — | 139 | ||||||||||||||||||||||||||||
Current portion of long-term debt | 13 | — | — | — | 13 | — | — | — | 13 | ||||||||||||||||||||||||||||
Other current liabilities | — | 23 | (4 | ) | 6 | 25 | — | — | — | 25 | |||||||||||||||||||||||||||
Total current liabilities | 78 | 839 | 1,067 | 6 | 1,990 | 10 | — | — | 2,000 | ||||||||||||||||||||||||||||
Long-term debt | 2,704 | — | — | — | 2,704 | 150 | — | — | 2,854 | ||||||||||||||||||||||||||||
Deferred tax liabilities, net | — | 128 | 311 | — | 439 | — | — | — | 439 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | 22 | 68 | 133 | (7 | ) | 216 | — | — | — | 216 | |||||||||||||||||||||||||||
Total liabilities | 2,804 | 1,035 | 1,511 | (1 | ) | 5,349 | 160 | — | — | 5,509 | |||||||||||||||||||||||||||
Total Warner Music Group Corp. equity (deficit) | 879 | 2,852 | 888 | (3,740 | ) | 879 | 726 | 726 | (1,605 | ) | 726 | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | 17 | — | 17 | — | — | — | 17 | ||||||||||||||||||||||||||||
Total equity (deficit) | 879 | 2,852 | 905 | (3,740 | ) | 896 | 726 | 726 | (1,605 | ) | 743 | ||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 3,683 | $ | 3,887 | $ | 2,416 | $ | (3,741 | ) | $ | 6,245 | $ | 886 | $ | 726 | $ | (1,605 | ) | $ | 6,252 | |||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||
Cash and equivalents | $ | 44 | $ | 105 | $ | 143 | $ | — | $ | 292 | $ | 10 | $ | — | $ | — | $ | 302 | |||||||||||||||||||
Accounts receivable, net | — | 158 | 240 | — | 398 | — | — | — | 398 | ||||||||||||||||||||||||||||
Inventories | — | 11 | 17 | — | 28 | — | — | — | 28 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped within one year | — | 67 | 49 | — | 116 | — | — | — | 116 | ||||||||||||||||||||||||||||
Deferred tax assets | — | 35 | 16 | — | 51 | — | — | — | 51 | ||||||||||||||||||||||||||||
Prepaid and other current assets | 7 | 8 | 29 | — | 44 | — | — | — | 44 | ||||||||||||||||||||||||||||
Total current assets | 51 | 384 | 494 | — | 929 | 10 | — | — | 939 | ||||||||||||||||||||||||||||
Royalty advances expected to be recouped after one year | — | 82 | 60 | — | 142 | — | — | — | 142 | ||||||||||||||||||||||||||||
Investments in and advances to (from) consolidated subsidiaries | 3,133 | 621 | — | (3,754 | ) | — | 1,070 | 926 | (1,996 | ) | — | ||||||||||||||||||||||||||
Property, plant and equipment, net | — | 108 | 44 | — | 152 | — | — | — | 152 | ||||||||||||||||||||||||||||
Goodwill | — | 1,375 | 5 | — | 1,380 | — | — | — | 1,380 | ||||||||||||||||||||||||||||
Intangible assets subject to amortization, net | — | 1,097 | 1,402 | — | 2,499 | — | — | — | 2,499 | ||||||||||||||||||||||||||||
Intangible assets not subject to amortization | — | 75 | 27 | — | 102 | — | — | — | 102 | ||||||||||||||||||||||||||||
Due (to) from parent companies | — | 176 | (176 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other assets | 32 | 12 | 13 | — | 57 | 6 | 1 | — | 64 | ||||||||||||||||||||||||||||
Total assets | $ | 3,216 | $ | 3,930 | $ | 1,869 | $ | (3,754 | ) | $ | 5,261 | $ | 1,086 | $ | 927 | $ | (1,996 | ) | $ | 5,278 | |||||||||||||||||
Liabilities and Deficit: | |||||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | 81 | $ | 75 | $ | — | $ | 156 | $ | — | $ | — | $ | — | $ | 156 | |||||||||||||||||||
Accrued royalties | — | 591 | 406 | — | 997 | — | — | — | 997 | ||||||||||||||||||||||||||||
Accrued liabilities | — | 108 | 145 | — | 253 | — | — | — | 253 | ||||||||||||||||||||||||||||
Accrued interest | 79 | — | — | — | 79 | 10 | — | — | 89 | ||||||||||||||||||||||||||||
Deferred revenue | — | 63 | 38 | — | 101 | — | — | — | 101 | ||||||||||||||||||||||||||||
Other current liabilities | — | 14 | (7 | ) | 3 | 10 | — | — | — | 10 | |||||||||||||||||||||||||||
Total current liabilities | 79 | 857 | 657 | 3 | 1,596 | 10 | — | — | 1,606 | ||||||||||||||||||||||||||||
Long-term debt | 2,056 | — | — | — | 2,056 | 150 | — | — | 2,206 | ||||||||||||||||||||||||||||
Deferred tax liabilities, net | — | 159 | 216 | — | 375 | — | — | — | 375 | ||||||||||||||||||||||||||||
Other noncurrent liabilities | 11 | 47 | 81 | 8 | 147 | — | — | — | 147 | ||||||||||||||||||||||||||||
Total liabilities | 2,146 | 1,063 | 954 | 11 | 4,174 | 160 | — | — | 4,334 | ||||||||||||||||||||||||||||
Total Warner Music Group Corp. equity (deficit) | 1,070 | 2,867 | 898 | (3,765 | ) | 1,070 | 926 | 927 | (1,996 | ) | 927 | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | 17 | — | 17 | — | — | — | 17 | ||||||||||||||||||||||||||||
Total equity (deficit) | 1,070 | 2,867 | 915 | (3,765 | ) | 1,087 | 926 | 927 | (1,996 | ) | 944 | ||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 3,216 | $ | 3,930 | $ | 1,869 | $ | (3,754 | ) | $ | 5,261 | $ | 1,086 | $ | 927 | $ | (1,996 | ) | $ | 5,278 | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 1,370 | $ | 1,717 | $ | (216 | ) | $ | 2,871 | $ | — | $ | — | $ | — | $ | 2,871 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (691 | ) | (1,003 | ) | 195 | (1,499 | ) | — | — | — | (1,499 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (507 | ) | (603 | ) | 20 | (1,090 | ) | — | — | — | (1,090 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (118 | ) | (89 | ) | — | (207 | ) | — | — | — | (207 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (1,316 | ) | (1,695 | ) | 215 | (2,796 | ) | — | — | — | (2,796 | ) | ||||||||||||||||||||||||
Operating income | — | 54 | 22 | (1 | ) | 75 | — | — | — | 75 | |||||||||||||||||||||||||||
Interest expense, net | (154 | ) | 6 | (33 | ) | — | (181 | ) | (22 | ) | — | — | (203 | ) | |||||||||||||||||||||||
Loss on extinguishment of debt | (85 | ) | — | — | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | (11 | ) | (47 | ) | — | 58 | — | (176 | ) | (198 | ) | 374 | — | ||||||||||||||||||||||||
Other expense, net | 43 | (28 | ) | (27 | ) | — | (12 | ) | — | — | — | (12 | ) | ||||||||||||||||||||||||
(Loss) income before income taxes | (207 | ) | (15 | ) | (38 | ) | 57 | (203 | ) | (198 | ) | (198 | ) | 374 | (225 | ) | |||||||||||||||||||||
Income tax benefit (expense) | 31 | — | 34 | (34 | ) | 31 | — | — | 31 | ||||||||||||||||||||||||||||
Net (loss) income | (176 | ) | (15 | ) | (4 | ) | 23 | (172 | ) | (198 | ) | (198 | ) | 374 | (194 | ) | |||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (176 | ) | $ | (15 | ) | $ | (8 | ) | $ | 23 | $ | (176 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (198 | ) | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 1,265 | $ | 1,714 | $ | (199 | ) | $ | 2,780 | $ | — | $ | — | $ | — | $ | 2,780 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (632 | ) | (1,006 | ) | 179 | (1,459 | ) | — | — | — | (1,459 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (492 | ) | (561 | ) | 34 | (1,019 | ) | — | — | — | (1,019 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (117 | ) | (76 | ) | — | (193 | ) | — | — | — | (193 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (1,241 | ) | (1,643 | ) | 213 | (2,671 | ) | — | — | — | (2,671 | ) | ||||||||||||||||||||||||
Operating income | — | 24 | 71 | 14 | 109 | — | — | — | 109 | ||||||||||||||||||||||||||||
Interest (expense) income, net | (196 | ) | 7 | (14 | ) | — | (203 | ) | (22 | ) | — | — | (225 | ) | |||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | 107 | 35 | — | (142 | ) | — | (90 | ) | (112 | ) | 202 | — | |||||||||||||||||||||||||
Other income, net | — | 3 | 5 | — | 8 | — | — | — | 8 | ||||||||||||||||||||||||||||
(Loss) income before income taxes | (89 | ) | 69 | 62 | (128 | ) | (86 | ) | (112 | ) | (112 | ) | 202 | (108 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (1 | ) | (5 | ) | (3 | ) | 8 | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||
Net (loss) income | (90 | ) | 64 | 59 | (120 | ) | (87 | ) | (112 | ) | (112 | ) | 202 | (109 | ) | ||||||||||||||||||||||
Less: income attributable to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (90 | ) | $ | 64 | $ | 56 | $ | (120 | ) | $ | (90 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (112 | ) | |||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 280 | $ | 308 | $ | (32 | ) | $ | 556 | $ | — | $ | — | $ | — | $ | 556 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (134 | ) | (182 | ) | 28 | (288 | ) | — | — | — | (288 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (109 | ) | (90 | ) | 3 | (196 | ) | — | — | — | (196 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (24 | ) | (14 | ) | — | (38 | ) | — | — | — | (38 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (267 | ) | (286 | ) | 31 | (522 | ) | — | — | — | (522 | ) | ||||||||||||||||||||||||
Operating income (loss) | — | 13 | 22 | (1 | ) | 34 | — | — | — | 34 | |||||||||||||||||||||||||||
Interest (expense) income, net | (48 | ) | 2 | (3 | ) | — | (49 | ) | (13 | ) | — | — | (62 | ) | |||||||||||||||||||||||
Equity (losses) gains from consolidated subsidiaries | 33 | 5 | — | (38 | ) | — | (18 | ) | (31 | ) | 49 | — | |||||||||||||||||||||||||
Other income (expense), net | — | 3 | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||
(Loss) income before income taxes | (15 | ) | 23 | 16 | (39 | ) | (15 | ) | (31 | ) | (31 | ) | 49 | (28 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (3 | ) | (4 | ) | — | 4 | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||||
Net (loss) income | (18 | ) | 19 | 16 | (35 | ) | (18 | ) | (31 | ) | (31 | ) | 49 | (31 | ) | ||||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 994 | $ | 1,464 | $ | (147 | ) | $ | 2,311 | $ | — | $ | — | $ | — | $ | 2,311 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of revenues | — | (497 | ) | (900 | ) | 136 | (1,261 | ) | — | — | — | (1,261 | ) | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | (377 | ) | (512 | ) | 15 | (874 | ) | — | — | — | (874 | ) | ||||||||||||||||||||||||
Amortization of intangible assets | — | (95 | ) | (83 | ) | — | (178 | ) | — | — | — | (178 | ) | ||||||||||||||||||||||||
Total costs and expenses | — | (969 | ) | (1,495 | ) | 151 | (2,313 | ) | — | — | — | (2,313 | ) | ||||||||||||||||||||||||
Operating income (loss) | — | 25 | (31 | ) | 4 | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Interest (expense) income, net | (128 | ) | 6 | (9 | ) | — | (131 | ) | (20 | ) | — | — | (151 | ) | |||||||||||||||||||||||
Equity gains (losses) from consolidated subsidiaries | (3 | ) | 5 | — | (2 | ) | — | (152 | ) | (172 | ) | 324 | — | ||||||||||||||||||||||||
Other income (expense), net | 4 | (12 | ) | 13 | — | 5 | — | — | — | 5 | |||||||||||||||||||||||||||
(Loss) income before income taxes | (127 | ) | 24 | (27 | ) | 2 | (128 | ) | (172 | ) | (172 | ) | 324 | (148 | ) | ||||||||||||||||||||||
Income tax (expense) benefit | (25 | ) | (20 | ) | (25 | ) | 45 | (25 | ) | — | (2 | ) | — | (27 | ) | ||||||||||||||||||||||
Net (loss) income | (152 | ) | 4 | (52 | ) | 47 | (153 | ) | (172 | ) | (174 | ) | 324 | (175 | ) | ||||||||||||||||||||||
Less: loss attributable to noncontrolling interest | — | — | 1 | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Net (loss) income attributable to Warner Music Group Corp. | $ | (152 | ) | $ | 4 | $ | (51 | ) | $ | 47 | $ | (152 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (174 | ) | |||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (176 | ) | $ | (15 | ) | $ | (4 | ) | $ | 23 | $ | (172 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (194 | ) | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (3 | ) | — | (3 | ) | 3 | (3 | ) | (3 | ) | (3 | ) | 6 | (3 | ) | ||||||||||||||||||||||
Minimum Pension Liability | 2 | — | 2 | (2 | ) | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||||||||||||||
Deferred gains (losses) on derivative financial instruments | (1 | ) | — | (1 | ) | 1 | (1 | ) | (1 | ) | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||||
Other comprehensive income, net of tax: | (2 | ) | — | (2 | ) | 2 | (2 | ) | (2 | ) | (2 | ) | 4 | (2 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (178 | ) | (15 | ) | (6 | ) | 25 | (174 | ) | (200 | ) | (200 | ) | 378 | (196 | ) | |||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (178 | ) | $ | (15 | ) | $ | (10 | ) | $ | 25 | $ | (178 | ) | $ | (200 | ) | $ | (200 | ) | $ | 378 | $ | (200 | ) | ||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (90 | ) | $ | 64 | $ | 59 | $ | (120 | ) | $ | (87 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (109 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (19 | ) | (19 | ) | 19 | (19 | ) | (19 | ) | (19 | ) | 38 | (19 | ) | |||||||||||||||||||||||
Minimum Pension Liability | (7 | ) | (7 | ) | 7 | (7 | ) | (7 | ) | (7 | ) | 14 | (7 | ) | |||||||||||||||||||||||
Deferred gains on derivative financial instruments | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax: | (26 | ) | — | (26 | ) | 26 | (26 | ) | (26 | ) | (26 | ) | 52 | (26 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (116 | ) | 64 | 33 | (94 | ) | (113 | ) | (138 | ) | (138 | ) | 254 | (135 | ) | ||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (116 | ) | $ | 64 | $ | 30 | $ | (94 | ) | $ | (116 | ) | $ | (138 | ) | $ | (138 | ) | $ | 254 | $ | (138 | ) | |||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (35 | ) | — | (35 | ) | 35 | (35 | ) | (35 | ) | (35 | ) | 70 | (35 | ) | ||||||||||||||||||||||
Minimum Pension Liability | 1 | — | 1 | (1 | ) | 1 | 1 | 1 | (2 | ) | 1 | ||||||||||||||||||||||||||
Deferred gains on derivative financial instruments | 1 | 1 | — | (1 | ) | 1 | 1 | 1 | (2 | ) | 1 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | (33 | ) | 1 | (34 | ) | 33 | (33 | ) | (33 | ) | (33 | ) | 66 | (33 | ) | ||||||||||||||||||||||
Total comprehensive (loss) income | (51 | ) | 20 | (18 | ) | (2 | ) | (51 | ) | (64 | ) | (64 | ) | 115 | (64 | ) | |||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | $ | (51 | ) | $ | 20 | $ | (18 | ) | $ | (2 | ) | $ | (51 | ) | $ | (64 | ) | $ | (64 | ) | $ | 115 | $ | (64 | ) | ||||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
(issuer) | Consolidated | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (152 | ) | $ | 4 | $ | (52 | ) | $ | 47 | $ | (153 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (175 | ) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 9 | — | 9 | (9 | ) | 9 | 9 | 9 | (18 | ) | 9 | ||||||||||||||||||||||||||
Deferred gains on derivative financial instruments | 2 | 2 | — | (2 | ) | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | 11 | 2 | 9 | (11 | ) | 11 | 11 | 11 | (22 | ) | 11 | ||||||||||||||||||||||||||
Total comprehensive (loss) income | (141 | ) | 6 | (43 | ) | 36 | (142 | ) | (161 | ) | (163 | ) | 302 | (164 | ) | ||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 1 | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Comprehensive (loss) income attributable to | $ | (141 | ) | $ | 6 | $ | (42 | ) | $ | 36 | $ | (141 | ) | $ | (161 | ) | $ | (163 | ) | $ | 302 | $ | (163 | ) | |||||||||||||
Warner Music Group Corp. | |||||||||||||||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2013 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG | Warner | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Holdings | Music | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Corp. | Group | Consolidated | ||||||||||||||||||||||||||||||||
(issuer) | Consolidated | (issuer) | Corp. | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | (176 | ) | $ | (15 | ) | $ | (4 | ) | $ | 23 | $ | (172 | ) | $ | (198 | ) | $ | (198 | ) | $ | 374 | $ | (194 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 85 | — | — | — | 85 | — | — | — | 85 | ||||||||||||||||||||||||||||
Depreciation and amortization | — | 155 | 103 | — | 258 | — | — | — | 258 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (73 | ) | — | (73 | ) | — | — | — | (73 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 11 | — | — | — | 11 | 2 | — | — | 13 | ||||||||||||||||||||||||||||
Non-cash share-based compensation expense | — | 19 | — | — | 19 | — | — | — | 19 | ||||||||||||||||||||||||||||
Equity losses (gains), including distributions | 11 | 50 | — | (58 | ) | 3 | 176 | 198 | (374 | ) | 3 | ||||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | — | (28 | ) | 13 | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||||||||
Inventories | — | — | (5 | ) | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||||||
Royalty advances | — | (18 | ) | 17 | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 64 | (37 | ) | 46 | 73 | — | — | — | 73 | |||||||||||||||||||||||||||
Royalty payables | — | (22 | ) | 28 | — | 6 | — | — | — | 6 | |||||||||||||||||||||||||||
Accrued interest | (14 | ) | — | — | — | (14 | ) | — | — | — | (14 | ) | |||||||||||||||||||||||||
Other current balance sheet changes | 15 | 42 | (49 | ) | (3 | ) | 5 | — | — | — | 5 | ||||||||||||||||||||||||||
Other noncurrent balance sheet changes | (7 | ) | (24 | ) | 38 | (8 | ) | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | (75 | ) | 223 | 31 | — | 179 | (20 | ) | — | — | 159 | ||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Investments and acquisitions of businesses | (719 | ) | (9 | ) | (9 | ) | — | (737 | ) | — | — | — | (737 | ) | |||||||||||||||||||||||
Acquisition of publishing rights | — | (33 | ) | (4 | ) | — | (37 | ) | — | — | — | (37 | ) | ||||||||||||||||||||||||
Capital expenditures | — | (25 | ) | (9 | ) | — | (34 | ) | — | — | — | (34 | ) | ||||||||||||||||||||||||
Advances to issuer | 245 | — | — | (245 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (474 | ) | (67 | ) | (22 | ) | (245 | ) | (808 | ) | — | — | — | (808 | ) | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest holder | — | — | (4 | ) | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||||||||||||
Dividend by Acquisition Corp to Holdings Corp | (12 | ) | — | — | — | (12 | ) | 12 | — | — | — | ||||||||||||||||||||||||||
Change in due to (from) to issuer | — | (245 | ) | — | 245 | — | — | — | — | — | |||||||||||||||||||||||||||
Repayment of Acquisition Corp 9.5% Senior Subordinated Notes | (1,250 | ) | — | — | — | (1,250 | ) | — | — | — | (1,250 | ) | |||||||||||||||||||||||||
Proceeds from issuance of Acquisition Corp 6.00% Senior Secured Notes | 500 | — | — | — | 500 | — | — | — | 500 | ||||||||||||||||||||||||||||
Repayment of Acquisition Corp 6.00% Senior Secured Notes | (50 | ) | — | — | — | (50 | ) | — | — | — | (50 | ) | |||||||||||||||||||||||||
Proceeds from issuance of Acquisition Corp 6.25% Senior Secured Notes | 227 | — | — | — | 227 | — | — | — | 227 | ||||||||||||||||||||||||||||
Repayment of Acquisition Corp 6.25% Senior Secured Notes | (23 | ) | — | — | — | (23 | ) | — | — | — | (23 | ) | |||||||||||||||||||||||||
Proceeds from Acquisition Corp Term Loan Facility, net | 1,412 | — | — | — | 1,412 | — | — | — | 1,412 | ||||||||||||||||||||||||||||
Repayment of Term Loan | (110 | ) | — | — | — | (110 | ) | — | — | — | (110 | ) | |||||||||||||||||||||||||
Proceeds from draw down of the Revolving Credit Facility | 136 | — | — | — | 136 | — | — | — | 136 | ||||||||||||||||||||||||||||
Repayment of the Revolving Credit Facility | (136 | ) | — | — | — | (136 | ) | — | — | — | (136 | ) | |||||||||||||||||||||||||
Financing costs paid | (129 | ) | — | — | — | (129 | ) | — | — | — | (129 | ) | |||||||||||||||||||||||||
Deferred financing costs paid | (60 | ) | — | — | — | (60 | ) | (2 | ) | — | — | (62 | ) | ||||||||||||||||||||||||
Net cash (used in) provided by financing activities | 505 | (245 | ) | (4 | ) | 245 | 501 | 10 | — | — | 511 | ||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (9 | ) | — | (9 | ) | — | — | — | (9 | ) | |||||||||||||||||||||||||
Net (decrease) increase in cash and equivalents | (44 | ) | (89 | ) | (4 | ) | — | (137 | ) | (10 | ) | — | — | (147 | ) | ||||||||||||||||||||||
Cash and equivalents at beginning of period | 44 | 105 | 143 | — | 292 | 10 | — | — | 302 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | — | $ | 16 | $ | 139 | $ | — | $ | 155 | $ | — | $ | — | $ | — | $ | 155 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Fiscal Year Ended September 30, 2012 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (90 | ) | $ | 64 | $ | 59 | $ | (120 | ) | $ | (87 | ) | $ | (112 | ) | $ | (112 | ) | $ | 202 | $ | (109 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 154 | 90 | — | 244 | — | — | — | 244 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (26 | ) | — | (26 | ) | — | — | — | (26 | ) | |||||||||||||||||||||||||
Non-cash interest expense | (3 | ) | — | — | — | (3 | ) | 1 | — | — | (2 | ) | |||||||||||||||||||||||||
Other non-cash adjustments | — | (2 | ) | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Equity in the income of consolidated subsidiaries | (107 | ) | (35 | ) | — | 142 | — | 90 | 112 | (202 | ) | — | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | 8 | 22 | (46 | ) | — | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||||||||||
Inventories | — | 1 | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Royalty advances | — | 37 | 10 | — | 47 | — | — | — | 47 | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 42 | 26 | (29 | ) | 39 | — | — | — | 39 | |||||||||||||||||||||||||||
Royalty payables | — | 4 | 18 | — | 22 | — | — | — | 22 | ||||||||||||||||||||||||||||
Accrued interest | 28 | — | — | — | 28 | 6 | — | — | 34 | ||||||||||||||||||||||||||||
Other current balance sheet changes | (6 | ) | 33 | (38 | ) | 4 | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||||||
Other noncurrent balance sheet changes | 5 | (25 | ) | 7 | 3 | (10 | ) | — | (6 | ) | — | (16 | ) | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (165 | ) | 295 | 100 | — | 230 | (15 | ) | (6 | ) | — | 209 | |||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (22 | ) | (10 | ) | — | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (24 | ) | (8 | ) | — | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||||||||||
Investments and acquisitions of businesses, net of cash acquired | — | — | (8 | ) | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||||||||||||||
Proceeds from the sale of music catalog | — | 2 | — | — | 2 | — | — | — | 2 | ||||||||||||||||||||||||||||
Proceeds from the sale of building | — | 12 | — | — | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||
Advances to issuer | 192 | — | — | (192 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 192 | (32 | ) | (26 | ) | (192 | ) | (58 | ) | — | — | — | (58 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Dividend by Holdings Corp to Parent | — | — | — | — | — | (6 | ) | 6 | — | — | |||||||||||||||||||||||||||
Dividend by Acquisition Corp to Holdings Corp | — | (27 | ) | — | — | (27 | ) | 27 | — | — | — | ||||||||||||||||||||||||||
Distribution to noncontrolling interest holders | — | — | (3 | ) | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | — | (192 | ) | — | 192 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | — | (219 | ) | (3 | ) | 192 | (30 | ) | 21 | 6 | — | (3 | ) | ||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net increase (decrease) in cash and equivalents | 27 | 44 | 71 | — | 142 | 6 | — | — | 148 | ||||||||||||||||||||||||||||
Cash and equivalents at beginning of period | 17 | 61 | 72 | — | 150 | 4 | — | — | 154 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | 44 | $ | 105 | $ | 143 | $ | — | $ | 292 | $ | 10 | $ | — | $ | — | $ | 302 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Period from July 20, 2011 to September 30, 2011 (Successor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMGHoldings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (18 | ) | $ | 19 | $ | 16 | $ | (35 | ) | $ | (18 | ) | $ | (31 | ) | $ | (31 | ) | $ | 49 | $ | (31 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 27 | 20 | — | 47 | — | — | — | 47 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (2 | ) | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 1 | — | — | — | 1 | 1 | — | — | 2 | ||||||||||||||||||||||||||||
Equity losses (gains) from consolidated subsidiaries | (33 | ) | (5 | ) | — | 38 | — | 18 | 31 | (49 | ) | — | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | — | (40 | ) | (28 | ) | — | (68 | ) | — | — | — | (68 | ) | ||||||||||||||||||||||||
Inventories | — | (1 | ) | (1 | ) | — | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||||||||
Royalty advances | — | 11 | 15 | — | 26 | — | — | — | 26 | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | 2 | 25 | 2 | 29 | — | — | — | 29 | ||||||||||||||||||||||||||||
Royalties payable | — | (6 | ) | (67 | ) | — | (73 | ) | — | — | — | (73 | ) | ||||||||||||||||||||||||
Accrued interest | 29 | — | — | — | 29 | 1 | — | — | 30 | ||||||||||||||||||||||||||||
Other current balance sheet changes | 2 | 3 | 3 | — | 8 | — | — | — | 8 | ||||||||||||||||||||||||||||
Other noncurrent balance sheet changes | (7 | ) | 41 | (4 | ) | (5 | ) | 25 | 4 | (59 | ) | — | (30 | ) | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | (26 | ) | 51 | (23 | ) | — | 2 | (7 | ) | (59 | ) | — | (64 | ) | |||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Purchase of Predecessor | — | (50 | ) | — | — | (50 | ) | — | (1,228 | ) | — | (1,278 | ) | ||||||||||||||||||||||||
Capital expenditures | — | (7 | ) | (4 | ) | — | (11 | ) | — | — | — | (11 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (3 | ) | — | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
Advance to consolidated subsidiary | — | 173 | — | (173 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash used in investing activities | — | 113 | (4 | ) | (173 | ) | (64 | ) | — | (1,228 | ) | — | (1,292 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Capital Contribution from Parent | — | — | — | — | — | — | 1,099 | — | 1,099 | ||||||||||||||||||||||||||||
Capital Contribution by Parent to Holdings | — | — | — | — | — | 127 | (127 | ) | — | — | |||||||||||||||||||||||||||
Dividend by Holding Corp. to Parent | — | — | — | — | — | (160 | ) | 160 | — | — | |||||||||||||||||||||||||||
Dividend by Acquisition to Holdings Corp. | — | (160 | ) | — | — | (160 | ) | 160 | — | — | — | ||||||||||||||||||||||||||
Financing costs paid | (62 | ) | — | — | — | (62 | ) | (8 | ) | — | — | (70 | ) | ||||||||||||||||||||||||
Proceeds from the issuance of Acquisition Corp. Senior Unsecured Notes | 747 | — | — | — | 747 | — | — | — | 747 | ||||||||||||||||||||||||||||
Proceeds from the issuance of Acquisition Corp. Senior Secured Notes | 157 | — | — | — | 157 | — | — | — | 157 | ||||||||||||||||||||||||||||
Proceeds from the issuance of Holdings Corp. Senior Notes | — | — | — | — | — | 150 | — | — | 150 | ||||||||||||||||||||||||||||
Repayment of Holdings Senior Discount Notes | — | — | — | — | — | (258 | ) | — | — | (258 | ) | ||||||||||||||||||||||||||
Repayment of Acquisition Corp. Senior Subordinate Notes | (626 | ) | — | — | — | (626 | ) | — | — | — | (626 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | (173 | ) | — | — | 173 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 43 | (160 | ) | — | 173 | 56 | 11 | 1,132 | — | 1,199 | |||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (8 | ) | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||||||||||||||
Net increase (decrease) in cash and equivalents | 17 | 4 | (35 | ) | — | (14 | ) | 4 | (155 | ) | — | (165 | ) | ||||||||||||||||||||||||
Cash and equivalents at beginning of period | — | 57 | 107 | — | 164 | — | 155 | — | 319 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | 17 | $ | 61 | $ | 72 | $ | — | $ | 150 | $ | 4 | $ | — | $ | — | $ | 154 | |||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||||||||||||
For The Period from October 1, 2010 to July 19, 2011 (Predecessor) | |||||||||||||||||||||||||||||||||||||
WMG | Guarantor | Non- | Eliminations | WMG | WMG Holdings | Warner Music | Eliminations | Warner Music | |||||||||||||||||||||||||||||
Acquisition | Subsidiaries | Guarantor | Acquisition | Corp. (issuer) | Group Corp. | Group Corp. | |||||||||||||||||||||||||||||||
Corp. | Subsidiaries | Corp. | Consolidated | ||||||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (152 | ) | $ | 4 | $ | (52 | ) | $ | 47 | $ | (153 | ) | $ | (172 | ) | $ | (174 | ) | $ | 324 | $ | (175 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 121 | 90 | — | 211 | — | — | — | 211 | ||||||||||||||||||||||||||||
Deferred income taxes | — | — | (15 | ) | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||||||||
Non-cash interest expense | 8 | 1 | — | — | 9 | — | — | — | 9 | ||||||||||||||||||||||||||||
Non-cash, share-based compensation expense | — | 24 | — | — | 24 | — | — | — | 24 | ||||||||||||||||||||||||||||
Equity (gains) losses from consolidated subsidiaries | 3 | (5 | ) | — | 2 | — | 152 | 172 | (324 | ) | — | ||||||||||||||||||||||||||
Other non-cash adjustments | — | (2 | ) | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||
Accounts receivable | (7 | ) | 41 | 85 | — | 119 | — | — | — | 119 | |||||||||||||||||||||||||||
Inventories | — | 4 | 6 | — | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||
Royalty advances | — | (12 | ) | (4 | ) | — | (16 | ) | — | — | — | (16 | ) | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | — | (52 | ) | (40 | ) | (55 | ) | (147 | ) | — | — | — | (147 | ) | |||||||||||||||||||||||
Royalties payable | (28 | ) | 32 | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||
Accrued interest | (31 | ) | — | — | — | (31 | ) | (3 | ) | — | — | (34 | ) | ||||||||||||||||||||||||
Other current balance sheet changes | — | 15 | (2 | ) | — | 13 | — | — | — | 13 | |||||||||||||||||||||||||||
Other noncurrent balance sheet changes | 13 | 36 | (45 | ) | 6 | 10 | 23 | (22 | ) | — | 11 | ||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | (166 | ) | 147 | 55 | — | 36 | — | (24 | ) | — | 12 | ||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (26 | ) | (11 | ) | — | (37 | ) | — | — | — | (37 | ) | ||||||||||||||||||||||||
Acquisition of publishing rights | — | (40 | ) | (19 | ) | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||||||||
Investments and acquisitions of businesses, net of cash acquired | — | — | (59 | ) | — | (59 | ) | — | — | — | (59 | ) | |||||||||||||||||||||||||
Advances to issuer | 166 | — | — | (166 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash used in investing activities | 166 | (66 | ) | (89 | ) | (166 | ) | (155 | ) | — | — | — | (155 | ) | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Proceeds from exercise of Predecessor stock options | — | 3 | — | — | 3 | — | 3 | — | 6 | ||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | (1 | ) | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||||
Change in due/(from) issuer | — | (166 | ) | — | 166 | — | — | — | — | — | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | — | (163 | ) | (1 | ) | 166 | 2 | — | 3 | — | 5 | ||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | 18 | — | 18 | — | — | — | 18 | ||||||||||||||||||||||||||||
Net decrease in cash and equivalents | — | (82 | ) | (17 | ) | — | (99 | ) | — | (21 | ) | — | (120 | ) | |||||||||||||||||||||||
Cash and equivalents at beginning of period | — | 139 | 124 | — | 263 | — | 176 | — | 439 | ||||||||||||||||||||||||||||
Cash and equivalents at end of period | $ | — | $ | 57 | $ | 107 | $ | — | $ | 164 | $ | — | $ | 155 | $ | — | $ | 319 | |||||||||||||||||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Jul. 02, 2013 | Sep. 30, 2013 | |
Country | PLG [Member] | WEA Corp. [Member] | |
Description Of Business [Line Items] | ' | ' | ' |
Acquisition date | ' | 1-Jul-13 | ' |
Number of countries in which Recorded Music activity conducted | 50 | ' | ' |
Percentage of ownership | ' | ' | 80.00% |
Number of songwriters and composers | 65,000 | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Customer | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Computer Equipment [Member] | Machinery and Equipment [Member] | Building [Member] | ||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of significant gross accounts receivable Recorded Music customers | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment useful life | ' | '5 years | '7 years | '5 years | '7 years | '40 years | ' | ' | ' | ' |
Advertising expense | ' | ' | ' | ' | ' | ' | $11 | $70 | $67 | $77 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule of Comprehensive Income (Loss) (Detail) (USD $) | 10 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Foreign Currency Translation Gain (Loss) [Member] | Foreign Currency Translation Gain (Loss) [Member] | Foreign Currency Translation Gain (Loss) [Member] | Foreign Currency Translation Gain (Loss) [Member] | Minimum Pension Liability Adjustment [Member] | Minimum Pension Liability Adjustment [Member] | Minimum Pension Liability Adjustment [Member] | Minimum Pension Liability Adjustment [Member] | Deferred Gains (Losses) On Derivative Financial Instruments [Member] | Deferred Gains (Losses) On Derivative Financial Instruments [Member] | Deferred Gains (Losses) On Derivative Financial Instruments [Member] | Deferred Gains (Losses) On Derivative Financial Instruments [Member] | |
Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $53 | ' | ($59) | ($33) | $58 | ' | ($54) | ($35) | ($3) | ' | ($6) | $1 | ($2) | ' | $1 | $1 |
Activity through the period | 11 | -33 | -2 | -26 | 9 | -35 | -3 | -19 | ' | 1 | 2 | -7 | 2 | 1 | -1 | ' |
Ending Balance | $64 | ($33) | ($61) | ($59) | $67 | ($35) | ($57) | ($54) | ($3) | $1 | ($4) | ($6) | ' | $1 | ' | $1 |
Acquisition_of_Parlophone_Labe2
Acquisition of Parlophone Label Group - Additional Information (Detail) (PLG [Member]) | 0 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Feb. 06, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
GBP (£) | USD ($) | GBP (£) | USD ($) | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Percentage of ownership on acquisition | 100.00% | ' | ' | ' |
Business acquisition, cash paid | £ 487 | ' | £ 487 | ' |
Business acquisition, date of agreement | ' | ' | ' | 6-Feb-13 |
Professional fees and integration costs related to Acquisition | ' | ' | ' | 38 |
Additional Transaction fee under Management Agreement in relation to Acquisition | ' | ' | ' | 11 |
Revenues | ' | 59 | ' | ' |
Operating loss | ' | $32 | ' | ' |
Acquisition_of_Parlophone_Labe3
Acquisition of Parlophone Label Group - Preliminary Estimate of Acquisition Consideration and Preliminary Purchase Price Allocation to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) | Sep. 30, 2011 | Feb. 06, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | USD ($) | PLG [Member] | PLG [Member] | PLG [Member] |
GBP (£) | USD ($) | GBP (£) | ||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Foreign Exchange Rate at July 1, 2013 | ' | ' | 1.53 | 1.53 |
Purchase Price | ' | £ 487 | ' | £ 487 |
Preliminary Working Capital Adjustment | ' | ' | ' | 13 |
Adjusted Purchase Price | ' | ' | 765 | 500 |
Fair Value of assets acquired and liabilities assumed: | ' | ' | ' | ' |
Cash | 140 | ' | 46 | ' |
Accounts receivable | 331 | ' | 80 | ' |
Other current assets | 117 | ' | 8 | ' |
Property, plant and equipment | 182 | ' | 39 | ' |
Intangible assets | 2,879 | ' | 764 | ' |
Accounts payable | ' | ' | -83 | ' |
Royalties payable | ' | ' | -147 | ' |
Other current liabilities | ' | ' | -21 | ' |
Deferred revenue | -115 | ' | -25 | ' |
Deferred tax liabilities | -363 | ' | -139 | ' |
Other noncurrent liabilities | -173 | ' | -20 | ' |
Fair value of net assets acquired and liabilities assumed | -243 | ' | 502 | ' |
Goodwill recorded | ' | ' | 263 | ' |
Total purchase price allocated | $1,129 | ' | $765 | ' |
Acquisition_of_Parlophone_Labe4
Acquisition of Parlophone Label Group - Components of Intangible Assets Identified and Useful Lives (Detail) (Recorded Music [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Trademarks and Trade Names [Member] | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' |
Indefinite lived intangible assets, Value | $17 |
Catalog [Member] | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' |
Finite lived intangible assets, Value | 442 |
Intangible assets, Useful Life | '13 years |
Artist Contracts [Member] | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' |
Finite lived intangible assets, Value | $305 |
Intangible assets, Useful Life | '10 years |
Acquisition_of_Parlophone_Labe5
Acquisition of Parlophone Label Group - Business Acquisition Pro Forma Financial Information (Detail) (PLG [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
PLG [Member] | ' | ' |
Business Acquisition Pro Forma Information [Line Items] | ' | ' |
Revenue | $3,131 | $3,130 |
Operating income (loss) | 135 | -392 |
Net loss attributable to Warner Music Group Corp. | ($154) | ($609) |
Merger_Additional_Information_
Merger - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 10 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Jul. 19, 2011 |
Recorded Music [Member] | Music Publishing [Member] | Successor [Member] | Predecessor [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Merger transaction costs | $53 | ' | ' | $10 | $43 |
Goodwill allocation recorded | ' | $908 | $464 | ' | ' |
Merger_Consideration_Transferr
Merger - Consideration Transferred and Fair Value of Assets and Liabilities Acquired (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2011 |
Business Combinations [Abstract] | ' |
Cash paid to acquire outstanding WMG shares | $1,228 |
Cash paid to settle equity awards | 50 |
Total cash consideration | 1,278 |
Less: Cash paid by WMG | -179 |
Net Investment | 1,099 |
WMG shares previously held by Parent | 30 |
Total consideration | 1,129 |
Fair Value of assets acquired and liabilities assumed: | ' |
Cash | 140 |
Accounts receivable | 331 |
Inventory | 28 |
Artist advances | 341 |
Property, plant and equipment | 182 |
Intangible assets | 2,879 |
Other assets | 117 |
Current liabilities | -1,544 |
Deferred income tax liabilities | -363 |
Deferred revenue | -115 |
Other noncurrent liabilities | -173 |
Debt | -2,049 |
Noncontrolling interests | -17 |
Fair value of net assets acquired and liabilities assumed | -243 |
Goodwill recorded | 1,372 |
Total consideration allocated | $1,129 |
Merger_Components_of_Intangibl
Merger - Components of Intangible Assets Identified (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 |
Recorded Music [Member] | Trademarks and Trade Names [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired indefinite lived intangible asset amount | $51 | ' |
Acquired finite lived intangible asset amount | 7 | ' |
Finite lived Intangible assets useful life | '7 years | ' |
Recorded Music [Member] | Catalog [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired finite lived intangible asset amount | 560 | ' |
Finite lived Intangible assets useful life | ' | '13 years |
Recorded Music [Member] | Catalog [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite lived Intangible assets useful life | '5 years | ' |
Recorded Music [Member] | Catalog [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite lived Intangible assets useful life | '11 years | ' |
Recorded Music [Member] | Artist Contracts [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired finite lived intangible asset amount | 520 | ' |
Finite lived Intangible assets useful life | ' | '10 years |
Recorded Music [Member] | Artist Contracts [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite lived Intangible assets useful life | '8 years | ' |
Recorded Music [Member] | Artist Contracts [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite lived Intangible assets useful life | '12 years | ' |
Music Publishing [Member] | Copyrights [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired finite lived intangible asset amount | 1,530 | ' |
Finite lived Intangible assets useful life | '28 years | ' |
Music Publishing [Member] | Songwriter Contracts [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired finite lived intangible asset amount | 160 | ' |
Finite lived Intangible assets useful life | '29 years | ' |
Music Publishing [Member] | Trademarks and Trade Names [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquired indefinite lived intangible asset amount | $51 | ' |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $288 | $212 |
Less accumulated depreciation | -108 | -60 |
Property, plant and equipment, net | 180 | 152 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 16 | 9 |
Buildings and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 81 | 47 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 13 | 12 |
Computer Hardware and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 155 | 134 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 14 | 1 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $9 | $9 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill for Each Reportable Segment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill [Line Items] | ' | ' |
Ending balance | $1,668 | $1,380 |
Successor [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 1,380 | 1,372 |
Acquisitions | 274 | ' |
Dispositions | ' | ' |
Other adjustments | 14 | 8 |
Ending balance | 1,668 | 1,380 |
Recorded Music [Member] | Successor [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 916 | 908 |
Acquisitions | 274 | ' |
Dispositions | ' | ' |
Other adjustments | 14 | 8 |
Ending balance | 1,204 | 916 |
Music Publishing [Member] | Successor [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 464 | 464 |
Acquisitions | ' | ' |
Dispositions | ' | ' |
Other adjustments | ' | ' |
Ending balance | $464 | $464 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (Acquisition [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Acquisition [Member] | ' |
Goodwill [Line Items] | ' |
Increased goodwill due to Acquisition | $263 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Recorded Music Catalog [Member] | Music Publishing Copyrights [Member] | Artist and Songwriter Contracts [Member] | Trademarks [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | ||
Trademarks and Trade Names [Member] | Trademarks and Trade Names [Member] | Recorded Music Catalog [Member] | Recorded Music Catalog [Member] | Music Publishing Copyrights [Member] | Music Publishing Copyrights [Member] | Artist and Songwriter Contracts [Member] | Artist and Songwriter Contracts [Member] | Trademarks [Member] | Trademarks [Member] | |||||||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Finite lived Intangible assets useful life | ' | ' | '11 years | '28 years | '13 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, gross | ' | ' | ' | ' | ' | ' | $3,542 | $2,729 | ' | ' | $1,006 | $547 | $1,546 | $1,508 | $983 | $667 | $7 | $7 |
Accumulated amortization | ' | ' | ' | ' | ' | ' | -435 | -230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net intangible assets subject to amortization | 3,107 | 2,499 | ' | ' | ' | ' | 3,107 | 2,499 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets not subject to amortization | 120 | 102 | ' | ' | ' | ' | 120 | 102 | 120 | 102 | ' | ' | ' | ' | ' | ' | ' | ' |
Total net other intangible assets | ' | ' | ' | ' | ' | ' | $3,227 | $2,601 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Expected Amortization of Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $260 | ' |
2015 | 260 | ' |
2016 | 250 | ' |
2017 | 210 | ' |
2018 | 210 | ' |
Thereafter | 1,917 | ' |
Total net intangible assets subject to amortization | $3,107 | $2,499 |
Other_Noncurrent_Liabilities_S
Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Other Noncurrent Liabilities [Line Items] | ' | ' |
Total other noncurrent liabilities | $216 | $147 |
Successor [Member] | ' | ' |
Other Noncurrent Liabilities [Line Items] | ' | ' |
Unfavorable and other contractual obligations | 64 | 59 |
Accrued compensation and benefits | 67 | 48 |
Capital lease | 20 | ' |
Deferred income | 9 | 4 |
Other | 56 | 36 |
Total other noncurrent liabilities | $216 | $147 |
Debt_Longterm_Debt_Detail
Debt - Long-term Debt (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | $2,854 | $2,206 | ||
Current portion of long term debt | 13 | ' | ||
Successor [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | 2,854 | 2,206 | ||
Current portion of long term debt | 13 | ' | ||
Total debt, including current portion | 2,867 | 2,206 | ||
Successor [Member] | Old Revolving Credit Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | ' | [1] | ' | [1] |
Successor [Member] | Revolving Credit Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Current portion of long term debt | ' | [2] | ' | [2] |
Successor [Member] | Term Loan Facility Due 2020 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | 1,303 | [3] | ' | [3] |
Current portion of long term debt | 13 | ' | ||
Successor [Member] | 9.5% Senior Secured Notes Due 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | ' | 1,151 | [4] | |
Successor [Member] | 9.5% Secured WMG Notes Due 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | ' | 156 | [5] | |
Successor [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | 450 | ' | ||
Successor [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | 213 | [6] | ' | |
Successor [Member] | 11.5% Senior Notes Due 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | 751 | [7] | 749 | [7] |
Successor [Member] | 13.75% Holdings Notes Due 2019 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long term debt | $150 | $150 | ||
[1] | Reflects $60 million of commitments under the Old Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2012 (Successor). There were no loans outstanding under the Old Revolving Credit Facility as of September 30, 2012 (Successor). The Old Revolving Credit Facility was retired in connection with the 2012 Refinancing (as described below) and replaced with the Revolving Credit Facility. | |||
[2] | Reflects $150 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2013 (Successor). There were no loans outstanding under the Revolving Credit Facility as of September 30, 2013 (Successor). | |||
[3] | Principal amount of $1.310 billion less unamortized discount of $7 million. Of this amount, $13 million, representing the scheduled amortization of the Term Loan, was included in the current portion of long term debt at September 30, 2013 (Successor). | |||
[4] | Face amount of $1.1 billion plus unamortized premiums of $51 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | |||
[5] | Face amount of $150 million plus unamortized premiums of $6 million at September 30, 2012 (Successor). All outstanding amounts were repaid in full as part of the 2012 Refinancing. | |||
[6] | Face amount of €158 million. Amount above represents the dollar equivalent of such notes at September 30, 2013 (Successor). | |||
[7] | Face amount of $765 million less unamortized discounts of $14 million and $16 million at September 30, 2013 (Successor) and September 30, 2012 (Successor), respectively. |
Debt_Longterm_Debt_Parenthetic
Debt - Long-term Debt (Parenthetical) (Detail) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Millions, unless otherwise specified | USD ($) | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | 13.75% Holdings Notes Due 2019 [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | ||
USD ($) | Old Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Loan Facility Due 2020 [Member] | 9.5% Senior Secured Notes Due 2016 [Member] | 9.5% Senior Secured Notes Due 2016 [Member] | 9.5% Senior Secured Notes Due 2016 [Member] | 9.5% Senior Secured Notes Due 2016 [Member] | 9.5% Secured WMG Notes Due 2016 [Member] | 9.5% Secured WMG Notes Due 2016 [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | 11.5% Unsecured WMG Notes Due 2018 [Member] | 11.5% Unsecured WMG Notes Due 2018 [Member] | 13.75% Holdings Notes Due 2019 [Member] | 13.75% Holdings Notes Due 2019 [Member] | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maturity date | ' | '2021 | '2021 | '2019 | ' | ' | ' | ' | '2020 | ' | ' | '2016 | '2016 | '2016 | '2016 | '2021 | '2021 | '2018 | '2018 | '2019 | '2019 | ||
Interest rate | ' | 6.00% | 6.25% | 13.75% | ' | ' | ' | ' | ' | 9.50% | 9.50% | ' | ' | 9.50% | 9.50% | 6.00% | 6.25% | 11.50% | 11.50% | 13.75% | 13.75% | ||
Commitments under revolving credit facility | ' | ' | ' | ' | ' | $60 | $150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Letters of credit outstanding | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal amount of Term Loan | ' | ' | ' | ' | ' | ' | ' | ' | 1,310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 16 | ' | ' | ||
Long term debt, current | 13 | ' | ' | ' | 13 | ' | ' | [1] | ' | [1] | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured notes face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | ' | ' | ' | 150 | ' | 158 | 765 | ' | ' | ' | ||
Unamortized premiums | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $51 | ' | ' | ' | $6 | ' | ' | ' | ' | ' | ' | ||
[1] | Reflects $150 million of commitments under the Revolving Credit Facility, less letters of credit outstanding of approximately $1 million at September 30, 2013 (Successor). There were no loans outstanding under the Revolving Credit Facility as of September 30, 2013 (Successor). |
Debt_2012_Debt_Refinancing_Add
Debt - 2012 Debt Refinancing - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | 9-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Nov. 01, 2012 | Nov. 01, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 01, 2012 | Nov. 01, 2012 | Nov. 01, 2012 | Nov. 01, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
USD ($) | Senior Secured Notes due 2021 [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | Incremental Term Loan Facility [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | 2012 Debt Refinancing [Member] | Debt Redemptions [Member] | ||
USD ($) | EUR (€) | Minimum [Member] | Maximum [Member] | 11.50% Senior Notes Due In October 2018 [Member] | 11.50% Senior Notes Due In October 2018 [Member] | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | 9.5% Senior Secured Notes Due 2016 [Member] | Refinancing Transaction [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | USD ($) | ||||||
Minimum [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
USD ($) | ||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of Senior Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | $153 | ' | $820 | $500 | € 175 | ' | ' | ' | ' | ' | ' | ' | ' |
Due date of Senior Secured Notes | ' | ' | ' | '2021 | '2021 | ' | ' | ' | ' | ' | ' | ' | '2021 | '2021 | ' | ' | '2016 | ' | ' | ' | ' | ' |
Issuance of Term Loan and Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | 150 | ' | ' |
Available cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101 | ' | ' | ' | ' | ' | ' |
Senior Secured Notes Extinguished | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | 6.00% | 6.25% | ' | ' | ' | 11.50% | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' |
Retired Revolving Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' |
Repayment of New Revolving Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31 | ' |
Redemption payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,377 | ' | ' | ' | ' |
Repayments of long term debt outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' |
Tender/Call premium on redemption of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93 | ' | ' | ' | ' |
Secured Notes consent fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' | ' | ' |
Accrued interest paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -83 | ' | ' | ' | ' | ' | ' | -2 |
Debt face value of Old Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' | ' | ' |
Debt unamortized premium of Old Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance costs related to Old Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' |
Prepaid term loans | 102.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental draw down of Term Loan Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR rate plus | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Base Rate plus | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loan LIBOR Rate | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate applicable to overdue principal | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Amortization of original principal on term loan | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Next payment date of current portion of term loan | ' | 'December 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility maturity date | ' | ' | ' | ' | ' | 1-Jul-20 | ' | ' | ' | ' | 1-Nov-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility springing maturity date | ' | ' | ' | ' | ' | 2-Jul-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 1-Oct-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured indebtedness to EBITDA ratio | ' | ' | ' | ' | ' | ' | 1 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of senior secured notes redeemed | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Acquisition Corp Senior Secured Notes | ' | ' | ' | $50 | € 17.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Interest_Rates_Additional
Debt - Interest Rates - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2013 | |
Debt Instrument [Line Items] | ' |
Revolving Credit Facility fee | 0.50% |
Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Revolver Libor rate plus Election Rate | 2.00% |
Revolver Base rate plus Election Rate | 1.00% |
Interest rate applicable to overdue principal | 2.00% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2013 | ||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Credit facility expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Nov-17 | ||||||||
Scheduled maturities of long-term debt in 2018 | ' | $765 | ' | ' | ' | ' | ' | ' | ' | ' | $765 | ' | ' | ' | ||||||||
Scheduled to mature | ' | 813 | ' | ' | ' | ' | ' | ' | ' | ' | 813 | ' | ' | ' | ||||||||
Total interest expense, net | $62 | $54 | [1] | $47 | [1] | $49 | [1] | $53 | [1] | $56 | [1] | $56 | [1] | $56 | [1] | $57 | [1] | $62 | $203 | $225 | $151 | ' |
Weighted-average interest rate of total debt | ' | 6.90% | ' | ' | ' | 10.50% | ' | ' | ' | ' | 6.90% | 10.50% | ' | ' | ||||||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Income_Taxes_Schedule_of_Domes
Income Taxes - Schedule of Domestic and Foreign Pretax (Loss) Income from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | ||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||||||||
Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Domestic | ($24) | ' | ' | ' | ' | ' | ' | ' | ' | ($73) | ($84) | ($129) | ||||||||
Foreign | -4 | ' | ' | ' | ' | ' | ' | ' | ' | -152 | -24 | -19 | ||||||||
Loss before income taxes | ($28) | ($96) | [1] | ($43) | [1] | $4 | [1] | ($90) | [1] | ($13) | [1] | ($43) | [1] | ($32) | [1] | ($20) | [1] | ($225) | ($108) | ($148) |
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Income_Taxes_Current_and_Defer
Income Taxes - Current and Deferred Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | |||||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | ||||||||||||
Federal: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Deferred | 1 | ' | ' | ' | ' | ' | ' | ' | -6 | -8 | -5 | |||||||||||
Foreign : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Current | 5 | [1] | ' | ' | ' | ' | ' | ' | ' | 25 | [1] | 24 | [1] | 40 | [1] | |||||||
Deferred | -3 | ' | ' | ' | ' | ' | ' | ' | -54 | -18 | -10 | |||||||||||
U.S. State: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Current | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 3 | 2 | |||||||||||
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -9 | ' | ' | |||||||||||
Total | $3 | ($39) | [2] | $19 | [2] | ($11) | [2] | $4 | [2] | ($11) | [2] | $2 | [2] | $6 | [2] | ($31) | $1 | $27 | ||||
[1] | Includes cash withholding taxes of $9 million, $8 million, $3 million and $9 million for the fiscal year ended September 30, 2013 (Successor), for the fiscal year ended September 30, 2012 (Successor), for the period from July 20, 2011 to September 30, 2011 (Successor), for the period from October 1, 2010 to July 19, 2011 (Predecessor), respectively. | |||||||||||||||||||||
[2] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Income_Taxes_Current_and_Defer1
Income Taxes - Current and Deferred Income Taxes (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Schedule Of Current And Deferred Income Taxes [Line Items] | ' | ' | ' | ' |
Cash withholding taxes | $3 | $9 | $8 | $9 |
Income_Taxes_Differences_betwe
Income Taxes - Differences between U.S. Federal Statutory Income Tax Rate of 35% and Income Taxes Provided (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | |||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | ||||||||
Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Taxes on income at the U.S. federal statutory rate | ($10) | ' | ' | ' | ' | ' | ' | ' | ($79) | ($37) | ($52) | |||||||
U.S. state and local taxes | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 3 | 2 | |||||||
Foreign income taxed at different rates, including withholding taxes | 3 | ' | ' | ' | ' | ' | ' | ' | 15 | 13 | 18 | |||||||
Increase in valuation allowance | 6 | ' | ' | ' | ' | ' | ' | ' | 36 | 28 | 55 | |||||||
Release of valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -11 | |||||||
Change in tax rates | ' | ' | ' | ' | ' | ' | ' | ' | -20 | -6 | ' | |||||||
Nondeductible transaction costs | 4 | ' | ' | ' | ' | ' | ' | ' | 13 | ' | 13 | |||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 2 | |||||||
Total | $3 | ($39) | [1] | $19 | [1] | ($11) | [1] | $4 | [1] | ($11) | [1] | $2 | [1] | $6 | [1] | ($31) | $1 | $27 |
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Company's Net Deferred Tax Assets/(Liabilities) (Detail) (Successor [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Successor [Member] | ' | ' |
Deferred tax assets: | ' | ' |
Allowances and reserves | $44 | $39 |
Employee benefits and compensation | 39 | 38 |
Other accruals | 59 | 48 |
Long-term debt | ' | 42 |
Tax attribute carry forwards | 518 | 418 |
Other | 1 | 1 |
Total deferred tax assets | 661 | 586 |
Valuation allowance | -296 | -244 |
Net deferred tax assets | 365 | 342 |
Deferred tax liabilities: | ' | ' |
Depreciation, amortization and artist advances | -12 | -16 |
Intangible assets | -749 | -650 |
Total deferred tax liabilities | -761 | -666 |
Net deferred tax liabilities | ($396) | ($324) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Income Taxes [Line Items] | ' | ' |
Interest and penalties | $6 | $3 |
Foreign Tax Authority [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Foreign tax credit carry forward | 163 | ' |
Successor [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Reinvested Earnings at foreign subsidiaries | 116 | ' |
Uncertain income tax position not recognized | 30 | 14 |
Successor [Member] | Domestic Tax Authority [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Net operating loss carry forward | $632 | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2011 | Jul. 19, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | |
Unrecognized Tax Benefits [Line Items] | ' | ' | ' | ' |
Beginning Balance | $11 | $10 | $14 | $11 |
Unrecognized tax benefits assigned in purchase price accounting | 11 | ' | ' | ' |
Additions for current year tax positions | ' | 1 | 5 | 4 |
Additions for prior year tax positions | ' | 18 | 11 | ' |
Subtractions for prior year tax positions | ' | -18 | ' | -1 |
Ending Balance | ' | $11 | $30 | $14 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Employee Benefit Plans [Line Items] | ' | ' | ' | ' |
Employee benefit plan obligation | ' | $63 | $65 | ' |
Aggregate pension liability recorded in balance sheet | ' | 43 | 46 | ' |
Pension expense | 1 | 4 | 4 | 3 |
Employers contribution plan expense | $1 | $4 | $4 | $3 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | $85 |
Restructuring accrual | 10 |
Employee-Related Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | 61 |
Restructuring costs | 22 |
Real Estate Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | 18 |
Other Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | $6 |
Restructuring_Summary_of_Restr
Restructuring - Summary of Restructuring Activity (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Employee-Related Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring expense | $22 |
Successor [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | ' |
Restructuring expense | 22 |
Cash Payments | -12 |
Ending balance | 10 |
Successor [Member] | Employee-Related Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | ' |
Restructuring expense | 22 |
Cash Payments | -12 |
Ending balance | 10 |
Successor [Member] | Real Estate Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | ' |
Restructuring expense | ' |
Cash Payments | ' |
Ending balance | ' |
Successor [Member] | Other Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | ' |
Restructuring expense | ' |
Cash Payments | ' |
Ending balance | ' |
Restructuring_Summary_of_Charg
Restructuring - Summary of Charges in Consolidated Statement of Operations (Detail) (Successor [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Total restructuring expense | $22 |
Selling, General and Administrative Expenses [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Total restructuring expense | $22 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 10 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 19, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Employees [Member] | Non-Employees [Member] | Predecessor [Member] | Deferred Equity Units, Minimum [Member] | Deferred Equity Units, Maximum [Member] | Matching Equity Units Vesting Years [Member] | Deferred Equity Units [Member] | Matching Equity Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares held in employee stock option plan, allocated | 82.1918 | 82.1918 | ' | ' | ' | ' | ' | ' | 41.0959 | 41.0959 |
Shares issued and outstanding to LLC | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred equity unit share | 0.0001 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share awards vesting period | ' | ' | ' | ' | ' | '1 year | '7 years | '2 years | ' | ' |
Weighted-average grant date intrinsic value of share awards | ' | $107.13 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of deferred equity units | $134.62 | $134.62 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash compensation expense | ' | $19 | $12 | $7 | $24 | ' | ' | ' | ' | ' |
Unrecognized compensation costs | $20 | $20 | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation of unvested awards expected to be recognized, weighted average period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans - Summary of Company's Share Awards (Detail) (USD $) | 12 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Deferred Equity Units [Member] | Matching Equity Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unvested units, Fair Value at January 1, 2013 | ' | ' | ' |
Unvested units, Intrinsic Value at January 1, 2013 | ' | ' | ' |
Fair Value, Granted | ' | $134.62 | ' |
Intrinsic Value, Granted | $107.13 | ' | $27.49 |
Fair Value, Vested | ' | ' | ' |
Fair Value, Forfeited | ' | ' | ' |
Unvested units, Fair Value at September 30, 2013 | $134.62 | $134.62 | ' |
Unvested units at January 1, 2013 | ' | ' | ' |
Units, Granted | ' | 25 | 25 |
Units, Vested | ' | ' | ' |
Units, Forfeited | ' | -1 | -1 |
Unvested units at September 30, 2013 | ' | 24 | 24 |
Unvested units, Weighted-Average Grant-Date Intrinsic Value at January 1, 2013 | ' | ' | ' |
Weighted-Average Grant-Date Intrinsic Value, Granted | ' | $107.13 | ' |
Intrinsic Value, Vested | ' | ' | ' |
Weighted-Average Grant-Date Intrinsic Value, Forfeited | ' | $107.13 | ' |
Intrinsic Value, Forfeited | ' | ' | ' |
Unvested units, Weighted-Average Grant-Date Intrinsic Value at September 30, 2013 | ' | $107.13 | ' |
Unvested units, Intrinsic Value at September 30, 2013 | ' | ' | $27.49 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee minimum | ' | $9,000,000 | ' |
Annual fee percentage of EBITDA | ' | 1.50% | ' |
Expenses reimbursed | ' | 2,000,000 | 2,000,000 |
13.75% Holdings Notes Due 2019 [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest rate | ' | 13.75% | ' |
Maturity date | ' | '2019 | ' |
WMG Holdings Corp. (issuer) [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Annual fee percentage of EBITDA | ' | 1.50% | ' |
PLG [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee minimum | ' | 9,000,000 | ' |
Specified transaction fee in relation to Acquisition | ' | 11,000,000 | ' |
Previously Reported [Member] | PLG [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee minimum | ' | 6,000,000 | ' |
Successor [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Annual management fee | 1,000,000 | 19,000,000 | 8,000,000 |
Successor [Member] | 13.75% Holdings Notes Due 2019 [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest rate | ' | 13.75% | 13.75% |
Maturity date | ' | '2019 | '2019 |
Access Industries [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fees and reimbursed expenses | ' | 8,000,000 | 8,000,000 |
Sublease arrangement with Related Party | ' | 300,000 | ' |
Remaining rental commitments | ' | 300,000 | ' |
Access Industries [Member] | Maximum [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Rent expense | ' | 200,000 | ' |
Deezer [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party revenue | ' | 9,000,000 | ' |
Southside [Member] | Successor [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Recorded liability related to earn-out | ' | 6,000,000 | ' |
Advance payment prior to acquisition | ' | 800,000 | ' |
Payment to related parties | ' | $550,000 | ' |
Achievement time period after acquisition | ' | '5 years | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 10, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Lawsuits | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net lease and rental expense | ' | ' | ' | $12 | $61 | $63 | $45 |
Talent advances long-term commitments payable | '10 years | ' | ' | ' | ' | ' | ' |
Current firm commitments | 201 | 232 | ' | ' | ' | ' | ' |
Off-balance sheet commitments to investees | $7 | $4 | ' | ' | ' | ' | ' |
Number of putative class action lawsuits | ' | ' | 5 | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Capital and Operating Leases (Net of Sublease Income) (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Capital Leases in 2014 | $3 |
Capital Leases in 2015 | 3 |
Capital Leases in 2016 | 3 |
Capital Leases in 2017 | 2 |
Capital Leases in 2018 | ' |
Capital Leases, Thereafter | ' |
Capital Leases, Total | 11 |
Operating Leases in 2014 | 66 |
Operating Leases in 2015 | 54 |
Operating Leases in 2016 | 45 |
Operating Leases in 2017 | 39 |
Operating Leases in 2018 | 27 |
Operating Leases, Thereafter | 64 |
Operating Leases, Total | $295 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Capital Lease Amounts Included in Property, Plant and Equipment (Detail) (Successor [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Successor [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Capital Leases | $33 | ' |
Less accumulated amortization | ' | ' |
Total | $33 | ' |
Derivative_Financial_Instrumen1
Derivative Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Foreign Currency Risk Management [Member] | Foreign Currency Risk Management [Member] | Foreign Currency Risk Management [Member] | Foreign Currency Risk Management [Member] | Foreign Currency Risk Management [Member] | Foreign Currency Risk Management [Member] | Interest Rate Risk Management [Member] | |
Purchase [Member] | Purchase [Member] | Sale [Member] | Sale [Member] | |||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding hedge contracts | ' | ' | ' | $1,044 | $21 | $249 | $349 | ' |
Comprehensive loss related to foreign exchange hedging | ' | 0 | 1 | ' | ' | ' | ' | ' |
Debt outstanding | ' | ' | ' | ' | ' | ' | ' | 2,888 |
Variable rate debt | ' | ' | ' | ' | ' | ' | ' | 1,310 |
Percentage of fixed rate debt | ' | ' | ' | ' | ' | ' | ' | 55.00% |
LIBOR floor rate | ' | ' | ' | ' | ' | ' | ' | 1.00% |
Fixed-rate debt, amount | ' | ' | ' | ' | ' | ' | ' | 1,578 |
Fair value of fixed-rate and variable rate debt outstanding | 3,060 | ' | ' | ' | ' | ' | ' | 3,060 |
Basis points | ' | ' | ' | ' | ' | ' | ' | 0.25% |
LIBOR floor rate | ' | ' | ' | ' | ' | ' | ' | 1.00% |
Increase or decrease in the fair value of debt | ' | ' | ' | ' | ' | ' | ' | $11 |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | ||||||||
In Millions, unless otherwise specified | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Corporate Expenses and Eliminations [Member] | Corporate Expenses and Eliminations [Member] | Corporate Expenses and Eliminations [Member] | Corporate Expenses and Eliminations [Member] | ||||||||||
Recorded Music [Member] | Recorded Music [Member] | Recorded Music [Member] | Recorded Music [Member] | Music Publishing [Member] | Music Publishing [Member] | Music Publishing [Member] | Music Publishing [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||||||||||||||||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | ' | ' | $556 | $764 | [1] | $663 | [1] | $675 | [1] | $769 | [1] | $731 | [1] | $651 | [1] | $623 | [1] | $775 | [1] | $2,871 | $2,780 | $2,311 | $457 | $2,389 | $2,281 | $1,890 | $103 | $503 | $518 | $436 | ($4) | ($21) | ($19) | ($15) |
OIBDA | ' | ' | 81 | ' | ' | ' | ' | ' | ' | ' | ' | 333 | 353 | 209 | 49 | 270 | 289 | 238 | 50 | 148 | 146 | 92 | -18 | -85 | -82 | -121 | ||||||||
Depreciation of property, plant and equipment | ' | ' | -9 | ' | ' | ' | ' | ' | ' | ' | ' | -51 | -51 | -33 | -5 | -32 | -31 | -21 | -1 | -6 | -6 | -3 | -3 | -13 | -14 | -9 | ||||||||
Amortization of intangible assets | ' | ' | -38 | -64 | [1] | -48 | [1] | -47 | [1] | -48 | [1] | -48 | [1] | -47 | [1] | -50 | [1] | -48 | [1] | -207 | -193 | -178 | -26 | -146 | -132 | -120 | -11 | -61 | -61 | -59 | -1 | ' | ' | 1 |
Operating income (loss) | ' | ' | 34 | -41 | [1] | 8 | [1] | 57 | [1] | 51 | [1] | 41 | [1] | 7 | [1] | 22 | [1] | 39 | [1] | 75 | 109 | -2 | 18 | 92 | 126 | 97 | 38 | 81 | 79 | 30 | -22 | -98 | -96 | -129 |
Total assets | 6,252 | 5,278 | ' | 6,252 | ' | ' | ' | 5,278 | ' | ' | ' | 6,252 | 5,278 | ' | ' | 3,426 | 2,343 | ' | ' | 2,444 | 2,436 | ' | ' | 382 | 499 | ' | ||||||||
Capital expenditures | ' | ' | $11 | ' | ' | ' | ' | ' | ' | ' | ' | $34 | $32 | $37 | $10 | $12 | $12 | $33 | $1 | $3 | $2 | $3 | ' | $19 | $18 | $1 | ||||||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Segment_Information_LongLived_
Segment Information - Long-Lived Assets and Revenue by Geographical Areas (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | ||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |||||||||
Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | Reportable Geographical Components [Member] | |||||||||||||||||||||
United States [Member] | United States [Member] | United States [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | All Other Territories [Member] | All Other Territories [Member] | All Other Territories [Member] | United States [Member] | United Kingdom [Member] | All Other Territories [Member] | |||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenue | $556 | $764 | [1] | $663 | [1] | $675 | [1] | $769 | [1] | $731 | [1] | $651 | [1] | $623 | [1] | $775 | [1] | $2,871 | $2,780 | $215 | $1,161 | $1,113 | $78 | $383 | $342 | $263 | $1,327 | $1,325 | $2,311 | $936 | $293 | $1,082 |
Long-lived Assets | ' | $180 | ' | ' | ' | $152 | ' | ' | ' | $180 | $152 | ' | $106 | $113 | ' | $18 | $19 | ' | $56 | $20 | ' | ' | ' | ' | ||||||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |
Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | |
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Customer Concentration | 9.00% | 18.00% | 19.00% | 9.00% |
Additional_Financial_Informati1
Additional Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 |
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' | ' |
Interest payments | $34 | $206 | $193 | $176 |
Income and withholding taxes, net of refunds | 9 | 26 | 42 | 19 |
Settlement of an income tax audit | ' | ' | $15 | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ($44) | ($16) | ||
Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | 1 | [1] | ' | [1] |
Foreign Currency Forward Exchange Contracts [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | -23 | [1] | -5 | [1] |
Contractual Obligations [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | -13 | [2] | ' | |
Contractual Obligations [Member] | Other Non-Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | -9 | [2] | -11 | [2] |
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | ' | ' | ||
Level 1 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | ' | [1] | ' | [1] |
Level 1 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | ' | [1] | ' | [1] |
Level 1 [Member] | Contractual Obligations [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | ' | [2] | ' | |
Level 1 [Member] | Contractual Obligations [Member] | Other Non-Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | ' | [2] | ' | [2] |
Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | -22 | -5 | ||
Level 2 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | 1 | [1] | ' | [1] |
Level 2 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | -23 | [1] | -5 | [1] |
Level 2 [Member] | Contractual Obligations [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | ' | [2] | ' | |
Level 2 [Member] | Contractual Obligations [Member] | Other Non-Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | ' | [2] | ' | [2] |
Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | -22 | -11 | ||
Level 3 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | ' | [1] | ' | [1] |
Level 3 [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Foreign Currency Forward Exchange Contracts | ' | [1] | ' | [1] |
Level 3 [Member] | Contractual Obligations [Member] | Other Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | -13 | [2] | ' | |
Level 3 [Member] | Contractual Obligations [Member] | Other Non-Current Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contractual Obligations | ($9) | [2] | ($11) | [2] |
[1] | The fair value of the foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates. | |||
[2] | This represents purchase obligations and contingent consideration related to the Company's various acquisitions. This is based on a discounted cash flow approach and it is adjusted to fair value on a recurring basis and any adjustments are included as a component of operating income in the statement of operations. These amounts were mainly calculated using unobservable inputs such as future earnings performance of the Company's various acquisitions and the expected timing of the payment. The change represents the increase in contingent consideration on a previous acquisition. |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Net Assets and Liabilities Classified as Level 3 (Detail) (Successor [Member], Level 3 [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Successor [Member] | Level 3 [Member] | ' |
Schedule Of Reconciliation Of Changes In Fair Value Of Assets And Liabilities [Line Items] | ' |
Balance at September 30, 2012 | $11 |
Additions | 15 |
Payments | -4 |
Balance at September 30, 2013 | $22 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Fair value of debt | $3,060 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Events [Member], USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 01, 2013 | Sep. 30, 2013 | Jul. 01, 2018 |
sqft | Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ' | ' | ' |
Square footage of new worldwide headquarters property | 300,000 | ' | ' |
Initial term of office lease | '16 years | ' | ' |
Lease period | 'From on or about January 1, 2014 to July 31, 2029 | ' | ' |
Lease beginning date | 1-Jan-14 | ' | ' |
Lease expiration date | 31-Jul-29 | ' | ' |
Option to extend the lease period | 'The Company to extend the term for either five years or 10 years. | ' | ' |
Lease extension term 1 | '5 years | ' | ' |
Lease extension term 2 | '10 years | ' | ' |
Additional annual rent expense | ' | $16 | ' |
Letter of credit posted | ' | $10 | $0 |
Guaranty expiration date | ' | 'October 1, 2021 | ' |
Quarterly_Financial_Informatio2
Quarterly Financial Information - Quarterly Information (Detail) (Successor [Member], USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||
Successor [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Parent Company Only Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenues | $556 | $764 | [1] | $663 | [1] | $675 | [1] | $769 | [1] | $731 | [1] | $651 | [1] | $623 | [1] | $775 | [1] | ' | $2,871 | $2,780 | |||
Costs and expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Cost of revenues | -288 | -391 | [1] | -371 | [1] | -329 | [1] | -408 | [1] | -368 | [1] | -353 | [1] | -318 | [1] | -420 | [1] | ' | -1,499 | -1,459 | |||
Selling, general and administrative expenses | -196 | [2] | -350 | [1],[3] | -236 | [1],[3] | -242 | [1],[3] | -262 | [1],[3] | -274 | [1],[4] | -244 | [1],[4] | -233 | [1],[4] | -268 | [1],[4] | ' | -1,090 | [2] | -1,019 | [2] |
Amortization of intangible assets | -38 | -64 | [1] | -48 | [1] | -47 | [1] | -48 | [1] | -48 | [1] | -47 | [1] | -50 | [1] | -48 | [1] | ' | -207 | -193 | |||
Total costs and expenses | -522 | -805 | [1] | -655 | [1] | -618 | [1] | -718 | [1] | -690 | [1] | -644 | [1] | -601 | [1] | -736 | [1] | ' | -2,796 | -2,671 | |||
Operating income | 34 | -41 | [1] | 8 | [1] | 57 | [1] | 51 | [1] | 41 | [1] | 7 | [1] | 22 | [1] | 39 | [1] | ' | 75 | 109 | |||
Loss on extinguishment of debt | ' | ' | -2 | [1] | ' | -83 | [1] | ' | ' | ' | ' | ' | -85 | ' | |||||||||
Interest expense, net | -62 | -54 | [1] | -47 | [1] | -49 | [1] | -53 | [1] | -56 | [1] | -56 | [1] | -56 | [1] | -57 | [1] | -62 | -203 | -225 | |||
Other income (expense), net | ' | -1 | [1] | -2 | [1] | -4 | [1] | -5 | [1] | 2 | [1] | 6 | [1] | 2 | [1] | -2 | [1] | ' | -12 | 8 | |||
(Loss) from before income taxes | -28 | -96 | [1] | -43 | [1] | 4 | [1] | -90 | [1] | -13 | [1] | -43 | [1] | -32 | [1] | -20 | [1] | ' | -225 | -108 | |||
Income tax (expense) benefit | -3 | 39 | [1] | -19 | [1] | ' | 11 | [1] | -4 | [1] | 11 | [1] | -2 | [1] | -6 | [1] | ' | 31 | -1 | ||||
Net loss | -31 | -57 | [1] | -62 | [1] | 4 | [1] | -79 | [1] | -17 | [1] | -32 | [1] | -34 | [1] | -26 | [1] | ' | -194 | -109 | |||
Less: income attributable to noncontrolling interest | ' | ' | -1 | [1] | -2 | [1] | -1 | [1] | -1 | [1] | ' | -2 | [1] | ' | ' | -4 | -3 | ||||||
Net loss attributable to Warner Music Group Corp. | ($31) | ($57) | [1] | ($63) | [1] | $2 | [1] | ($80) | [1] | ($18) | [1] | ($32) | [1] | ($36) | [1] | ($26) | [1] | ' | ($198) | ($112) | |||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. | ||||||||||||||||||||||
[2] | Includes depreciation expense of: $ (51 ) $ (51 ) $ (9 ) $ (33 ) | ||||||||||||||||||||||
[3] | Includes depreciation expense of $ (13 ) $ (13 ) $ (12 ) $ (13 ) | ||||||||||||||||||||||
[4] | Includes depreciation expense of $ (14 ) $ (12 ) $ (13 ) $ (12 ) |
Quarterly_Financial_Informatio3
Quarterly Financial Information - Quarterly Information (Parenthetical) (Detail) (Successor [Member], USD $) | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | ||||||||
Successor [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Parent Company Only Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Depreciation expense | ($13) | [1] | ($13) | [1] | ($12) | [1] | ($13) | [1] | ($14) | [1] | ($12) | [1] | ($13) | [1] | ($12) | [1] |
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Guarantor_And_NonGuarantor_Sub2
Guarantor And Non-Guarantor Subsidiaries Financial Information - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2013 | |
13.75% Holdings Notes Due 2019 [Member] | ' |
Parent Company Only Financial Information [Line Items] | ' |
Interest rate | 13.75% |
Maturity date | '2019 |
6.00% Senior Secured Notes Due 2021 [Member] | ' |
Parent Company Only Financial Information [Line Items] | ' |
Interest rate | 6.00% |
Maturity date | '2021 |
6.25% Senior Secured Notes Due 2021 [Member] | ' |
Parent Company Only Financial Information [Line Items] | ' |
Interest rate | 6.25% |
Maturity date | '2021 |
11.5% Senior Notes Due 2018 [Member] | ' |
Parent Company Only Financial Information [Line Items] | ' |
Interest rate | 11.50% |
Maturity date | '2018 |
Guarantor_And_NonGuarantor_Sub3
Guarantor And Non-Guarantor Subsidiaries Financial Information - Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $155 | $302 |
Accounts receivable, net | 511 | 398 |
Inventories | 33 | 28 |
Royalty advances expected to be recouped within one year | 93 | 116 |
Deferred tax assets | 43 | 51 |
Prepaid and other current assets | 59 | 44 |
Total current assets | 894 | 939 |
Royalty advances expected to be recouped after one year | 173 | 142 |
Investments in and advances to (from) consolidated subsidiaries | ' | ' |
Property, plant and equipment, net | 180 | 152 |
Goodwill | 1,668 | 1,380 |
Intangible assets subject to amortization, net | 3,107 | 2,499 |
Intangible assets not subject to amortization | 120 | 102 |
Due (to) from parent companies | ' | ' |
Other assets | 110 | 64 |
Total assets | 6,252 | 5,278 |
Current liabilities: | ' | ' |
Accounts payable | 280 | 156 |
Accrued royalties | 1,147 | 997 |
Accrued liabilities | 321 | 253 |
Accrued interest | 75 | 89 |
Deferred revenue | 139 | 101 |
Current portion of long-term debt | 13 | ' |
Other current liabilities | 25 | 10 |
Total current liabilities | 2,000 | 1,606 |
Long-term debt | 2,854 | 2,206 |
Deferred tax liabilities, net | 439 | 375 |
Other noncurrent liabilities | 216 | 147 |
Total liabilities | 5,509 | 4,334 |
Total Warner Music Group Corp. equity (deficit) | 726 | 927 |
Noncontrolling interest | 17 | 17 |
Total equity (deficit) | 743 | 944 |
Total liabilities and equity | 6,252 | 5,278 |
WMG Acquisition Corp. (issuer) [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | ' | 44 |
Accounts receivable, net | ' | ' |
Inventories | ' | ' |
Royalty advances expected to be recouped within one year | ' | ' |
Deferred tax assets | ' | ' |
Prepaid and other current assets | 5 | 7 |
Total current assets | 5 | 51 |
Royalty advances expected to be recouped after one year | ' | ' |
Investments in and advances to (from) consolidated subsidiaries | 2,811 | 3,133 |
Property, plant and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets subject to amortization, net | ' | ' |
Intangible assets not subject to amortization | ' | ' |
Due (to) from parent companies | 799 | ' |
Other assets | 68 | 32 |
Total assets | 3,683 | 3,216 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Accrued royalties | ' | ' |
Accrued liabilities | ' | ' |
Accrued interest | 65 | 79 |
Deferred revenue | ' | ' |
Current portion of long-term debt | 13 | ' |
Other current liabilities | ' | ' |
Total current liabilities | 78 | 79 |
Long-term debt | 2,704 | 2,056 |
Deferred tax liabilities, net | ' | ' |
Other noncurrent liabilities | 22 | 11 |
Total liabilities | 2,804 | 2,146 |
Total Warner Music Group Corp. equity (deficit) | 879 | 1,070 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | 879 | 1,070 |
Total liabilities and equity | 3,683 | 3,216 |
Guarantor Subsidiaries [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | 16 | 105 |
Accounts receivable, net | 185 | 158 |
Inventories | 10 | 11 |
Royalty advances expected to be recouped within one year | 59 | 67 |
Deferred tax assets | 21 | 35 |
Prepaid and other current assets | 8 | 8 |
Total current assets | 299 | 384 |
Royalty advances expected to be recouped after one year | 109 | 82 |
Investments in and advances to (from) consolidated subsidiaries | 930 | 621 |
Property, plant and equipment, net | 101 | 108 |
Goodwill | 1,379 | 1,375 |
Intangible assets subject to amortization, net | 1,007 | 1,097 |
Intangible assets not subject to amortization | 75 | 75 |
Due (to) from parent companies | -27 | 176 |
Other assets | 14 | 12 |
Total assets | 3,887 | 3,930 |
Current liabilities: | ' | ' |
Accounts payable | 96 | 81 |
Accrued royalties | 570 | 591 |
Accrued liabilities | 94 | 108 |
Accrued interest | ' | ' |
Deferred revenue | 56 | 63 |
Current portion of long-term debt | ' | ' |
Other current liabilities | 23 | 14 |
Total current liabilities | 839 | 857 |
Long-term debt | ' | ' |
Deferred tax liabilities, net | 128 | 159 |
Other noncurrent liabilities | 68 | 47 |
Total liabilities | 1,035 | 1,063 |
Total Warner Music Group Corp. equity (deficit) | 2,852 | 2,867 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | 2,852 | 2,867 |
Total liabilities and equity | 3,887 | 3,930 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | 139 | 143 |
Accounts receivable, net | 326 | 240 |
Inventories | 23 | 17 |
Royalty advances expected to be recouped within one year | 34 | 49 |
Deferred tax assets | 22 | 16 |
Prepaid and other current assets | 46 | 29 |
Total current assets | 590 | 494 |
Royalty advances expected to be recouped after one year | 64 | 60 |
Investments in and advances to (from) consolidated subsidiaries | ' | ' |
Property, plant and equipment, net | 79 | 44 |
Goodwill | 289 | 5 |
Intangible assets subject to amortization, net | 2,100 | 1,402 |
Intangible assets not subject to amortization | 45 | 27 |
Due (to) from parent companies | -772 | -176 |
Other assets | 21 | 13 |
Total assets | 2,416 | 1,869 |
Current liabilities: | ' | ' |
Accounts payable | 184 | 75 |
Accrued royalties | 577 | 406 |
Accrued liabilities | 227 | 145 |
Accrued interest | ' | ' |
Deferred revenue | 83 | 38 |
Current portion of long-term debt | ' | ' |
Other current liabilities | -4 | -7 |
Total current liabilities | 1,067 | 657 |
Long-term debt | ' | ' |
Deferred tax liabilities, net | 311 | 216 |
Other noncurrent liabilities | 133 | 81 |
Total liabilities | 1,511 | 954 |
Total Warner Music Group Corp. equity (deficit) | 888 | 898 |
Noncontrolling interest | 17 | 17 |
Total equity (deficit) | 905 | 915 |
Total liabilities and equity | 2,416 | 1,869 |
Eliminations [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Inventories | ' | ' |
Royalty advances expected to be recouped within one year | ' | ' |
Deferred tax assets | ' | ' |
Prepaid and other current assets | ' | ' |
Total current assets | ' | ' |
Royalty advances expected to be recouped after one year | ' | ' |
Investments in and advances to (from) consolidated subsidiaries | -3,741 | -3,754 |
Property, plant and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets subject to amortization, net | ' | ' |
Intangible assets not subject to amortization | ' | ' |
Due (to) from parent companies | ' | ' |
Other assets | ' | ' |
Total assets | -3,741 | -3,754 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Accrued royalties | ' | ' |
Accrued liabilities | ' | ' |
Accrued interest | ' | ' |
Deferred revenue | ' | ' |
Current portion of long-term debt | ' | ' |
Other current liabilities | 6 | 3 |
Total current liabilities | 6 | 3 |
Long-term debt | ' | ' |
Deferred tax liabilities, net | ' | ' |
Other noncurrent liabilities | -7 | 8 |
Total liabilities | -1 | 11 |
Total Warner Music Group Corp. equity (deficit) | -3,740 | -3,765 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | -3,740 | -3,765 |
Total liabilities and equity | -3,741 | -3,754 |
WMG Acquisition Corp. Consolidated [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | 155 | 292 |
Accounts receivable, net | 511 | 398 |
Inventories | 33 | 28 |
Royalty advances expected to be recouped within one year | 93 | 116 |
Deferred tax assets | 43 | 51 |
Prepaid and other current assets | 59 | 44 |
Total current assets | 894 | 929 |
Royalty advances expected to be recouped after one year | 173 | 142 |
Investments in and advances to (from) consolidated subsidiaries | ' | ' |
Property, plant and equipment, net | 180 | 152 |
Goodwill | 1,668 | 1,380 |
Intangible assets subject to amortization, net | 3,107 | 2,499 |
Intangible assets not subject to amortization | 120 | 102 |
Due (to) from parent companies | ' | ' |
Other assets | 103 | 57 |
Total assets | 6,245 | 5,261 |
Current liabilities: | ' | ' |
Accounts payable | 280 | 156 |
Accrued royalties | 1,147 | 997 |
Accrued liabilities | 321 | 253 |
Accrued interest | 65 | 79 |
Deferred revenue | 139 | 101 |
Current portion of long-term debt | 13 | ' |
Other current liabilities | 25 | 10 |
Total current liabilities | 1,990 | 1,596 |
Long-term debt | 2,704 | 2,056 |
Deferred tax liabilities, net | 439 | 375 |
Other noncurrent liabilities | 216 | 147 |
Total liabilities | 5,349 | 4,174 |
Total Warner Music Group Corp. equity (deficit) | 879 | 1,070 |
Noncontrolling interest | 17 | 17 |
Total equity (deficit) | 896 | 1,087 |
Total liabilities and equity | 6,245 | 5,261 |
WMG Holdings Corp. (issuer) [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | ' | 10 |
Accounts receivable, net | ' | ' |
Inventories | ' | ' |
Royalty advances expected to be recouped within one year | ' | ' |
Deferred tax assets | ' | ' |
Prepaid and other current assets | ' | ' |
Total current assets | ' | 10 |
Royalty advances expected to be recouped after one year | ' | ' |
Investments in and advances to (from) consolidated subsidiaries | 879 | 1,070 |
Property, plant and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets subject to amortization, net | ' | ' |
Intangible assets not subject to amortization | ' | ' |
Due (to) from parent companies | ' | ' |
Other assets | 7 | 6 |
Total assets | 886 | 1,086 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Accrued royalties | ' | ' |
Accrued liabilities | ' | ' |
Accrued interest | 10 | 10 |
Deferred revenue | ' | ' |
Current portion of long-term debt | ' | ' |
Other current liabilities | ' | ' |
Total current liabilities | 10 | 10 |
Long-term debt | 150 | 150 |
Deferred tax liabilities, net | ' | ' |
Other noncurrent liabilities | ' | ' |
Total liabilities | 160 | 160 |
Total Warner Music Group Corp. equity (deficit) | 726 | 926 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | 726 | 926 |
Total liabilities and equity | 886 | 1,086 |
Warner Music Group Corp. [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Inventories | ' | ' |
Royalty advances expected to be recouped within one year | ' | ' |
Deferred tax assets | ' | ' |
Prepaid and other current assets | ' | ' |
Total current assets | ' | ' |
Royalty advances expected to be recouped after one year | ' | ' |
Investments in and advances to (from) consolidated subsidiaries | 726 | 926 |
Property, plant and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets subject to amortization, net | ' | ' |
Intangible assets not subject to amortization | ' | ' |
Due (to) from parent companies | ' | ' |
Other assets | ' | 1 |
Total assets | 726 | 927 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Accrued royalties | ' | ' |
Accrued liabilities | ' | ' |
Accrued interest | ' | ' |
Deferred revenue | ' | ' |
Current portion of long-term debt | ' | ' |
Other current liabilities | ' | ' |
Total current liabilities | ' | ' |
Long-term debt | ' | ' |
Deferred tax liabilities, net | ' | ' |
Other noncurrent liabilities | ' | ' |
Total liabilities | ' | ' |
Total Warner Music Group Corp. equity (deficit) | 726 | 927 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | 726 | 927 |
Total liabilities and equity | 726 | 927 |
Eliminations [Member] | ' | ' |
Current assets: | ' | ' |
Cash and equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Inventories | ' | ' |
Royalty advances expected to be recouped within one year | ' | ' |
Deferred tax assets | ' | ' |
Prepaid and other current assets | ' | ' |
Total current assets | ' | ' |
Royalty advances expected to be recouped after one year | ' | ' |
Investments in and advances to (from) consolidated subsidiaries | -1,605 | -1,996 |
Property, plant and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets subject to amortization, net | ' | ' |
Intangible assets not subject to amortization | ' | ' |
Due (to) from parent companies | ' | ' |
Other assets | ' | ' |
Total assets | -1,605 | -1,996 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Accrued royalties | ' | ' |
Accrued liabilities | ' | ' |
Accrued interest | ' | ' |
Deferred revenue | ' | ' |
Current portion of long-term debt | ' | ' |
Other current liabilities | ' | ' |
Total current liabilities | ' | ' |
Long-term debt | ' | ' |
Deferred tax liabilities, net | ' | ' |
Other noncurrent liabilities | ' | ' |
Total liabilities | ' | ' |
Total Warner Music Group Corp. equity (deficit) | -1,605 | -1,996 |
Noncontrolling interest | ' | ' |
Total equity (deficit) | -1,605 | -1,996 |
Total liabilities and equity | ($1,605) | ($1,996) |
Guarantor_And_NonGuarantor_Sub4
Guarantor And Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | ||||||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |||||||||||||
WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | |||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Revenues | $556 | $764 | [1] | $663 | [1] | $675 | [1] | $769 | [1] | $731 | [1] | $651 | [1] | $623 | [1] | $775 | [1] | $2,871 | $2,780 | ' | ' | ' | $280 | $1,370 | $1,265 | $308 | $1,717 | $1,714 | ($32) | ($216) | ($199) | $556 | $2,871 | $2,780 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,311 | ' | $994 | $1,464 | ($147) | $2,311 | ' | ' | ' | ||||
Costs and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Cost of revenues | -288 | -391 | [1] | -371 | [1] | -329 | [1] | -408 | [1] | -368 | [1] | -353 | [1] | -318 | [1] | -420 | [1] | -1,499 | -1,459 | ' | ' | ' | -134 | -691 | -632 | -182 | -1,003 | -1,006 | 28 | 195 | 179 | -288 | -1,499 | -1,459 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,261 | ' | -497 | -900 | 136 | -1,261 | ' | ' | ' | ||||
Selling, general and administrative expenses | -196 | [2] | -350 | [1],[3] | -236 | [1],[3] | -242 | [1],[3] | -262 | [1],[3] | -274 | [1],[4] | -244 | [1],[4] | -233 | [1],[4] | -268 | [1],[4] | -1,090 | [2] | -1,019 | [2] | ' | ' | ' | -109 | -507 | -492 | -90 | -603 | -561 | 3 | 20 | 34 | -196 | -1,090 | -1,019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -874 | [2] | ' | -377 | -512 | 15 | -874 | ' | ' | ' |
Amortization of intangible assets | -38 | -64 | [1] | -48 | [1] | -47 | [1] | -48 | [1] | -48 | [1] | -47 | [1] | -50 | [1] | -48 | [1] | -207 | -193 | ' | ' | ' | -24 | -118 | -117 | -14 | -89 | -76 | ' | ' | ' | -38 | -207 | -193 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -178 | ' | -95 | -83 | ' | -178 | ' | ' | ' | ||||
Total costs and expenses | -522 | -805 | [1] | -655 | [1] | -618 | [1] | -718 | [1] | -690 | [1] | -644 | [1] | -601 | [1] | -736 | [1] | -2,796 | -2,671 | ' | ' | ' | -267 | -1,316 | -1,241 | -286 | -1,695 | -1,643 | 31 | 215 | 213 | -522 | -2,796 | -2,671 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,313 | ' | -969 | -1,495 | 151 | -2,313 | ' | ' | ' | ||||
Operating income (loss) | 34 | -41 | [1] | 8 | [1] | 57 | [1] | 51 | [1] | 41 | [1] | 7 | [1] | 22 | [1] | 39 | [1] | 75 | 109 | ' | ' | ' | 13 | 54 | 24 | 22 | 22 | 71 | -1 | -1 | 14 | 34 | 75 | 109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | 25 | -31 | 4 | -2 | ' | ' | ' | ||||
Interest (expense) income, net | -62 | ' | ' | ' | ' | ' | ' | ' | ' | -203 | -225 | -48 | -154 | -196 | 2 | 6 | 7 | -3 | -33 | -14 | ' | ' | ' | -49 | -181 | -203 | -13 | -22 | -22 | ' | ' | ' | ' | ' | ' | -151 | -128 | 6 | -9 | ' | -131 | -20 | ' | ' | ||||||||||||
Loss on extinguishment of debt | ' | ' | -2 | [1] | ' | -83 | [1] | ' | ' | ' | ' | -85 | ' | ' | -85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Equity gains (losses) from consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 | -11 | 107 | 5 | -47 | 35 | ' | ' | ' | -38 | 58 | -142 | ' | ' | ' | -18 | -176 | -90 | -31 | -198 | -112 | 49 | 374 | 202 | ' | -3 | 5 | ' | -2 | ' | -152 | -172 | 324 | ||||||||||||
Other income (expense), net | ' | -1 | [1] | -2 | [1] | -4 | [1] | -5 | [1] | 2 | [1] | 6 | [1] | 2 | [1] | -2 | [1] | -12 | 8 | ' | 43 | ' | 3 | -28 | 3 | -3 | -27 | 5 | ' | ' | ' | ' | -12 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4 | -12 | 13 | ' | 5 | ' | ' | ' | ||||
Loss before income taxes | -28 | -96 | [1] | -43 | [1] | 4 | [1] | -90 | [1] | -13 | [1] | -43 | [1] | -32 | [1] | -20 | [1] | -225 | -108 | -15 | -207 | -89 | 23 | -15 | 69 | 16 | -38 | 62 | -39 | 57 | -128 | -15 | -203 | -86 | -31 | -198 | -112 | -31 | -198 | -112 | 49 | 374 | 202 | -148 | -127 | 24 | -27 | 2 | -128 | -172 | -172 | 324 | ||||
Income tax (expense) benefit | -3 | 39 | [1] | -19 | [1] | ' | 11 | [1] | -4 | [1] | 11 | [1] | -2 | [1] | -6 | [1] | 31 | -1 | -3 | 31 | -1 | -4 | ' | -5 | ' | 34 | -3 | 4 | -34 | 8 | -3 | 31 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | -25 | -20 | -25 | 45 | -25 | ' | -2 | ' | |||||
Net (loss) income | -31 | -57 | [1] | -62 | [1] | 4 | [1] | -79 | [1] | -17 | [1] | -32 | [1] | -34 | [1] | -26 | [1] | -194 | -109 | -18 | -176 | -90 | 19 | -15 | 64 | 16 | -4 | 59 | -35 | 23 | -120 | -18 | -172 | -87 | -31 | -198 | -112 | -31 | -198 | -112 | 49 | 374 | 202 | -175 | -152 | 4 | -52 | 47 | -153 | -172 | -174 | 324 | ||||
Less: (income) loss attributable to noncontrolling interests | ' | ' | -1 | [1] | -2 | [1] | -1 | [1] | -1 | [1] | ' | -2 | [1] | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | 1 | ' | 1 | ' | ' | ' | |||||||
Net (loss) income attributable to Warner Music Group Corp. | ($31) | ($57) | [1] | ($63) | [1] | $2 | [1] | ($80) | [1] | ($18) | [1] | ($32) | [1] | ($36) | [1] | ($26) | [1] | ($198) | ($112) | ($18) | ($176) | ($90) | $19 | ($15) | $64 | $16 | ($8) | $56 | ($35) | $23 | ($120) | ($18) | ($176) | ($90) | ($31) | ($198) | ($112) | ($31) | ($198) | ($112) | $49 | $374 | $202 | ($174) | ($152) | $4 | ($51) | $47 | ($152) | ($172) | ($174) | $324 | ||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes depreciation expense of: $ (51 ) $ (51 ) $ (9 ) $ (33 ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Includes depreciation expense of $ (13 ) $ (13 ) $ (12 ) $ (13 ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes depreciation expense of $ (14 ) $ (12 ) $ (13 ) $ (12 ) |
Guarantor_And_NonGuarantor_Sub5
Guarantor And Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | ||||||||
Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |||||||||
WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | |||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net (loss) income | ($31) | ($57) | [1] | ($62) | [1] | $4 | [1] | ($79) | [1] | ($17) | [1] | ($32) | [1] | ($34) | [1] | ($26) | [1] | ($194) | ($109) | ($18) | ($176) | ($90) | $19 | ($15) | $64 | $16 | ($4) | $59 | ($35) | $23 | ($120) | ($18) | ($172) | ($87) | ($31) | ($198) | ($112) | ($31) | ($198) | ($112) | $49 | $374 | $202 | ($175) | ($152) | $4 | ($52) | $47 | ($153) | ($172) | ($174) | $324 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Foreign currency translation adjustment | -35 | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -19 | -35 | -3 | -19 | ' | ' | ' | -35 | -3 | -19 | 35 | 3 | 19 | -35 | -3 | -19 | -35 | -3 | -19 | -35 | -3 | -19 | 70 | 6 | 38 | 9 | 9 | ' | 9 | -9 | 9 | 9 | 9 | -18 | ||||||||
Minimum pension liability | 1 | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -7 | 1 | 2 | -7 | ' | ' | ' | 1 | 2 | -7 | -1 | -2 | 7 | 1 | 2 | -7 | 1 | 2 | -7 | 1 | 2 | -7 | -2 | -4 | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Deferred gains (losses) on derivative financial instruments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | 1 | -1 | ' | 1 | ' | ' | ' | -1 | ' | -1 | 1 | ' | 1 | -1 | ' | 1 | -1 | ' | 1 | -1 | ' | -2 | 2 | ' | 2 | 2 | 2 | ' | -2 | 2 | 2 | 2 | -4 | ||||||||
Other comprehensive income, net of tax: | -33 | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -26 | -33 | -2 | -26 | 1 | ' | ' | -34 | -2 | -26 | 33 | 2 | 26 | -33 | -2 | -26 | -33 | -2 | -26 | -33 | -2 | -26 | 66 | 4 | 52 | 11 | 11 | 2 | 9 | -11 | 11 | 11 | 11 | -22 | ||||||||
Total comprehensive (loss) income | -64 | ' | ' | ' | ' | ' | ' | ' | ' | -196 | -135 | -51 | -178 | -116 | 20 | -15 | 64 | -18 | -6 | 33 | -2 | 25 | -94 | -51 | -174 | -113 | -64 | -200 | -138 | -64 | -200 | -138 | 115 | 378 | 254 | -164 | -141 | 6 | -43 | 36 | -142 | -161 | -163 | 302 | ||||||||
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | 1 | ' | 1 | ' | ' | ' | ||||||||
Comprehensive (loss) income attributable to Warner Music Group Corp. | ($64) | ' | ' | ' | ' | ' | ' | ' | ' | ($200) | ($138) | ($51) | ($178) | ($116) | $20 | ($15) | $64 | ($18) | ($10) | $30 | ($2) | $25 | ($94) | ($51) | ($178) | ($116) | ($64) | ($200) | ($138) | ($64) | ($200) | ($138) | $115 | $378 | $254 | ($163) | ($141) | $6 | ($42) | $36 | ($141) | ($161) | ($163) | $302 | ||||||||
[1] | The Company's business is seasonal. Therefore, quarterly operating results are not necessarily indicative of the results that may be expected for the full fiscal year. |
Guarantor_And_NonGuarantor_Sub6
Guarantor And Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Cash Flows (Detail) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 | Jul. 19, 2011 |
6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | 9.5% Senior Subordinated Notes [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | USD ($) | WMG Acquisition Corp. (issuer) [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | WMG Acquisition Corp. Consolidated [Member] | WMG Holdings Corp. (issuer) [Member] | Warner Music Group Corp. [Member] | Eliminations [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | 9.5% Senior Subordinated Notes [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | 9.5% Senior Subordinated Notes [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | USD ($) | USD ($) | USD ($) | 9.5% Senior Subordinated Notes [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | 9.5% Senior Subordinated Notes [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ' | ' | ($31) | ($194) | ($109) | ' | ' | ' | ($18) | ($176) | ($90) | ' | ' | ' | $19 | ($15) | $64 | $16 | ($4) | $59 | ($35) | $23 | ($120) | ' | ' | ' | ($18) | ($172) | ($87) | ' | ' | ' | ($31) | ($198) | ($112) | ($31) | ($198) | ($112) | $49 | $374 | $202 | ' | ' | ' | ($175) | ($152) | $4 | ($52) | $47 | ($153) | ($172) | ($174) | $324 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | 85 | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 47 | 258 | 244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 155 | 154 | 20 | 103 | 90 | 0 | ' | ' | ' | ' | ' | 47 | 258 | 244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 211 | ' | 121 | 90 | 0 | 211 | ' | ' | 0 |
Deferred income taxes | ' | ' | -2 | -73 | -26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -73 | -26 | 0 | ' | ' | ' | ' | ' | -2 | -73 | -26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -15 | ' | ' | -15 | 0 | -15 | ' | ' | 0 |
Non-cash interest (income) expense | ' | ' | 2 | 13 | -2 | ' | ' | ' | 1 | 11 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 1 | 11 | -3 | ' | ' | ' | 1 | 2 | 1 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 9 | 8 | 1 | ' | 0 | 9 | ' | ' | 0 |
Non-cash share-based compensation expense | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | 24 | ' | 0 | 24 | ' | ' | 0 |
Other non-cash adjustments | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | -2 | ' | 0 | -2 | ' | ' | 0 |
Equity losses (gains), including distributions | ' | ' | ' | 3 | ' | ' | ' | ' | -33 | 11 | -107 | ' | ' | ' | -5 | 50 | -35 | ' | ' | ' | 38 | -58 | 142 | ' | ' | ' | ' | 3 | ' | ' | ' | ' | 18 | 176 | 90 | 31 | 198 | 112 | -49 | -374 | -202 | ' | ' | ' | ' | 3 | -5 | ' | 2 | ' | 152 | 172 | -324 |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | -68 | -15 | -16 | ' | ' | ' | ' | ' | 8 | ' | ' | ' | -40 | -28 | 22 | -28 | 13 | -46 | 0 | ' | ' | ' | ' | ' | -68 | -15 | -16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 119 | -7 | 41 | 85 | 0 | 119 | 0 | 0 | 0 |
Inventories | ' | ' | -2 | -5 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | 1 | -1 | -5 | ' | 0 | ' | ' | ' | ' | ' | -2 | -5 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 10 | ' | 4 | 6 | 0 | 10 | 0 | 0 | 0 |
Royalty advances | ' | ' | 26 | -1 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | -18 | 37 | 15 | 17 | 10 | 0 | ' | ' | ' | ' | ' | 26 | -1 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -16 | ' | -12 | -4 | 0 | -16 | 0 | 0 | 0 |
Accounts payable and accrued liabilities | ' | ' | 29 | 73 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 64 | 42 | 25 | -37 | 26 | 2 | 46 | -29 | ' | ' | ' | 29 | 73 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -147 | ' | -52 | -40 | -55 | -147 | 0 | 0 | 0 |
Royalties payable | ' | ' | -73 | 6 | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -22 | 4 | -67 | 28 | 18 | 0 | ' | ' | ' | ' | ' | -73 | 6 | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 4 | ' | -28 | 32 | 0 | 4 | 0 | 0 | 0 |
Accrued interest | ' | ' | 30 | -14 | 34 | ' | ' | ' | 29 | -14 | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 29 | -14 | 28 | ' | ' | ' | 1 | ' | 6 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -34 | -31 | ' | ' | 0 | -31 | -3 | ' | 0 |
Other current balance sheet changes | ' | ' | 8 | 5 | -7 | ' | ' | ' | 2 | 15 | -6 | ' | ' | ' | 3 | 42 | 33 | 3 | -49 | -38 | 0 | -3 | 4 | ' | ' | ' | 8 | 5 | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 13 | ' | 15 | -2 | 0 | 13 | ' | ' | 0 |
Other noncurrent balance sheet changes | ' | ' | -30 | -1 | -16 | ' | ' | ' | -7 | -7 | 5 | ' | ' | ' | 41 | -24 | -25 | -4 | 38 | 7 | -5 | -8 | 3 | ' | ' | ' | 25 | -1 | -10 | ' | ' | ' | 4 | ' | ' | -59 | ' | -6 | 0 | ' | ' | ' | ' | ' | 11 | 13 | 36 | -45 | 6 | 10 | 23 | -22 | 0 |
Net cash provided by (used in) operating activities | ' | ' | -64 | 159 | 209 | ' | ' | ' | -26 | -75 | -165 | ' | ' | ' | 51 | 223 | 295 | -23 | 31 | 100 | 0 | 0 | 0 | ' | ' | ' | 2 | 179 | 230 | ' | ' | ' | -7 | -20 | -15 | -59 | 0 | -6 | 0 | 0 | 0 | ' | ' | ' | 12 | -166 | 147 | 55 | 0 | 36 | 0 | -24 | 0 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments and acquisitions of businesses | ' | ' | ' | -737 | -8 | ' | ' | ' | ' | -719 | ' | ' | ' | ' | ' | -9 | ' | ' | -9 | -8 | ' | ' | ' | ' | ' | ' | ' | -737 | -8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -59 | ' | ' | -59 | 0 | -59 | ' | ' | 0 |
Purchase of Predecessor | ' | ' | -1,278 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -50 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -50 | ' | ' | ' | ' | ' | 0 | ' | ' | -1,228 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of publishing rights | ' | ' | -3 | -37 | -32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -33 | -24 | ' | -4 | -8 | 0 | ' | ' | ' | ' | ' | -3 | -37 | -32 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -59 | ' | -40 | -19 | 0 | -59 | ' | ' | 0 |
Capital expenditures | ' | ' | -11 | -34 | -32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -25 | -22 | -4 | -9 | -10 | 0 | ' | ' | ' | ' | ' | -11 | -34 | -32 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -37 | ' | -26 | -11 | 0 | -37 | ' | ' | 0 |
Advance to consolidated subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 173 | ' | ' | ' | ' | ' | -173 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the sale of music catalog | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the sale of building | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances to issuer | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245 | 192 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -245 | -192 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166 | ' | ' | -166 | ' | ' | ' | 0 |
Net cash used in investing activities | ' | ' | -1,292 | -808 | -58 | ' | ' | ' | 0 | -474 | 192 | ' | ' | ' | 113 | -67 | -32 | -4 | -22 | -26 | -173 | -245 | -192 | ' | ' | ' | -64 | -808 | -58 | ' | ' | ' | 0 | 0 | 0 | -1,228 | ' | 0 | 0 | 0 | 0 | ' | ' | ' | -155 | 166 | -66 | -89 | -166 | -155 | 0 | 0 | 0 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Contribution from Parent | ' | ' | 1,099 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,099 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of Predecessor stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | 3 | ' | 0 | 3 | ' | 3 | 0 |
Distribution to noncontrolling interest holder | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | -4 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | -1 | 0 | -1 | ' | ' | 0 |
Capital Contribution by Parent to Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127 | ' | ' | -127 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend by Holding Corp. to Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -160 | ' | -6 | 160 | ' | 6 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend by Acquisition Corp to Holdings Corp | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12 | ' | ' | ' | ' | -160 | ' | -27 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -160 | -12 | -27 | ' | ' | ' | 160 | 12 | 27 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in due to (from) to issuer | ' | ' | ' | ' | ' | ' | ' | ' | -173 | ' | ' | ' | ' | ' | ' | -245 | -192 | ' | ' | ' | 173 | 245 | 192 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | -166 | ' | 166 | ' | ' | ' | 0 |
Proceeds from Acquisition Corp Term Loan Facility, net | ' | ' | ' | 1,412 | ' | ' | ' | ' | ' | 1,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Term Loan | ' | ' | ' | -110 | ' | ' | ' | ' | ' | -110 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -110 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from draw down of the Revolving Credit Facility | ' | ' | ' | 136 | ' | ' | ' | ' | ' | 136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of the Revolving Credit Facility | ' | ' | ' | -136 | ' | ' | ' | ' | ' | -136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing costs paid | ' | ' | -70 | -129 | ' | ' | ' | ' | -62 | -129 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -62 | -129 | ' | ' | ' | ' | -8 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs paid | ' | ' | ' | -62 | ' | ' | ' | ' | ' | -60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -60 | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the issuance of Acquisition Corp. Senior Unsecured Notes | ' | ' | 747 | ' | ' | ' | ' | ' | 747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of Acquisition Corp Senior Secured Notes | ' | ' | 157 | ' | ' | ' | 500 | 227 | 157 | ' | ' | ' | 500 | 227 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 157 | ' | ' | ' | 500 | 227 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the issuance of Holdings Corp. Senior Notes | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Acquisition Corp Senior Secured Notes | -50 | -17.5 | ' | ' | ' | ' | -50 | -23 | ' | ' | ' | ' | -50 | -23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -50 | -23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Holdings Senior Discount Notes | ' | ' | -258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -258 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Acquisition Corp Senior Subordinated Notes | ' | ' | -626 | ' | ' | -1,250 | ' | ' | -626 | ' | ' | -1,250 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -626 | ' | ' | -1,250 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash (used in) provided by financing activities | ' | ' | 1,199 | 511 | -3 | ' | ' | ' | 43 | 505 | 0 | ' | ' | ' | -160 | -245 | -219 | 0 | -4 | -3 | 173 | 245 | 192 | ' | ' | ' | 56 | 501 | -30 | ' | ' | ' | 11 | 10 | 21 | 1,132 | 0 | 6 | 0 | 0 | 0 | ' | ' | ' | 5 | 0 | -163 | -1 | 166 | 2 | 0 | 3 | 0 |
Effect of foreign currency exchange rate changes on cash | ' | ' | -8 | -9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -9 | ' | 0 | ' | ' | ' | ' | ' | -8 | -9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 18 | ' | ' | 18 | 0 | 18 | ' | ' | 0 |
Net (decrease) increase in cash and equivalents | ' | ' | -165 | -147 | 148 | ' | ' | ' | 17 | -44 | 27 | ' | ' | ' | 4 | -89 | 44 | -35 | -4 | 71 | 0 | 0 | 0 | ' | ' | ' | -14 | -137 | 142 | ' | ' | ' | 4 | -10 | 6 | -155 | ' | 0 | 0 | 0 | 0 | ' | ' | ' | -120 | 0 | -82 | -17 | 0 | -99 | 0 | -21 | 0 |
Cash and equivalents at beginning of period | ' | ' | 319 | 302 | 154 | ' | ' | ' | 0 | 44 | 17 | ' | ' | ' | 57 | 105 | 61 | 107 | 143 | 72 | 0 | 0 | 0 | ' | ' | ' | 164 | 292 | 150 | ' | ' | ' | 0 | 10 | 4 | 155 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | 439 | 0 | 139 | 124 | 0 | 263 | 0 | 176 | 0 |
Cash and equivalents at end of period | ' | ' | $154 | $155 | $302 | ' | ' | ' | $17 | $0 | $44 | ' | ' | ' | $61 | $16 | $105 | $72 | $139 | $143 | $0 | $0 | $0 | ' | ' | ' | $150 | $155 | $292 | ' | ' | ' | $4 | $0 | $10 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | $319 | $0 | $57 | $107 | $0 | $164 | $0 | $155 | $0 |
Guarantor_And_NonGuarantor_Sub7
Guarantor And Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Cash Flows (Parenthetical) (Detail) | Sep. 30, 2013 |
6.00% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.00% |
6.25% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.25% |
Successor [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.00% |
Successor [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.25% |
WMG Acquisition Corp. Consolidated [Member] | Successor [Member] | 9.5% Senior Subordinated Notes [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 9.50% |
WMG Acquisition Corp. Consolidated [Member] | Successor [Member] | 6.00% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.00% |
WMG Acquisition Corp. Consolidated [Member] | Successor [Member] | 6.25% Senior Secured Notes Due 2021 [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Interest rate | 6.25% |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | 3 Months Ended | 12 Months Ended | 10 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 19, 2011 | |||||
Allowance for Doubtful Accounts [Member] | Allowance for Doubtful Accounts [Member] | Allowance for Doubtful Accounts [Member] | Allowance for Doubtful Accounts [Member] | Allowance for Sales Returns [Member] | Allowance for Sales Returns [Member] | Allowance for Sales Returns [Member] | Allowance for Sales Returns [Member] | Valuation Allowance of Deferred Tax Assets [Member] | Valuation Allowance of Deferred Tax Assets [Member] | Valuation Allowance of Deferred Tax Assets [Member] | Valuation Allowance of Deferred Tax Assets [Member] | ||||||
Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | Predecessor [Member] | ||||||
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Balance at Beginning of period | ' | $5 | ' | $20 | ' | $58 | $40 | [1] | $87 | ' | $244 | $190 | [1] | $489 | |||
Additions Charged to Cost and Expenses | 2 | [1] | 3 | 9 | 3 | 49 | [1] | 166 | 185 | 147 | 190 | [1] | 53 | 55 | 61 | ||
Deductions | -2 | [1] | -6 | -4 | -5 | -9 | [1] | -171 | -167 | -178 | ' | -1 | -1 | -17 | |||
Balance at End of period | ' | $2 | $5 | $18 | $40 | [1] | $53 | $58 | $56 | $190 | [1] | $296 | $244 | $533 | |||
[1] | In purchase accounting, we adjusted our accounts and notes receivable and deferred tax assets to fair value resulting in the elimination of historical allowances for doubtful accounts, reserves for sales returns and allowances and allowances for deferred tax assets. |