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 | |
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Net cash (used in) provided by operating activities | | | (166 | ) | | | 147 | | | | 55 | | | | — | | | | 36 | | | | — | | | | (24 | ) | | | — | | | | 12 | |
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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 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
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Net cash used in investing activities | | | 166 | | | | (66 | ) | | | (89 | ) | | | (166 | ) | | | (155 | ) | | | — | | | | — | | | | — | | | | (155 | ) |
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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 | | | | — | | | | — | | | | — | | | | — | | | | — | |
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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 | |
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Net decrease in cash and equivalents | | | — | | | | (82 | ) | | | (17 | ) | | | — | | | | (99 | ) | | | — | | | | (21 | ) | | | — | | | | (120 | ) |
Cash and equivalents at beginning of period | | | — | | | | 139 | | | | 124 | | | | — | | | | 263 | | | | — | | | | 176 | | | | — | | | | 439 | |
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Cash and equivalents at end of period | | $ | — | | | $ | 57 | | | $ | 107 | | | $ | — | | | $ | 164 | | | $ | — | | | $ | 155 | | | $ | — | | | $ | 319 | |
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