Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Nov. 05, 2014 | Mar. 31, 2014 | Nov. 05, 2014 | Mar. 31, 2014 |
Common stock, Class A | Common stock, Class A | Common stock, Class B | Common stock, Class B | ||
Entity Information [Line Items] | ' | ' | ' | ' | ' |
Entity Public Float | ' | ' | $898.80 | ' | $32,100 |
Amendment Flag | 'false | ' | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' | ' | ' |
Entity Central Index Key | '0001339947 | ' | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' | ' |
Entity Registrant Name | 'Viacom Inc. | ' | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 50,875,550 | ' | 359,591,362 | ' |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $13,783 | $13,794 | $13,887 |
Expenses: | ' | ' | ' |
Operating | 6,542 | 6,799 | 6,993 |
Selling, general and administrative | 2,899 | 2,829 | 2,757 |
Depreciation and amortization | 217 | 237 | 236 |
Asset impairment | 43 | 7 | 0 |
Restructuring | 0 | 86 | 0 |
Total expenses | 9,701 | 9,958 | 9,986 |
Operating income | 4,082 | 3,836 | 3,901 |
Interest expense, net | -615 | -464 | -417 |
Equity in net earnings of investee companies | 69 | 41 | 12 |
Loss on extinguishment of debt | -11 | 0 | -21 |
Other items, net | -11 | 106 | -5 |
Earnings from continuing operations before provision for income taxes | 3,514 | 3,519 | 3,470 |
Provision for income taxes | -1,050 | -1,070 | -1,085 |
Net earnings from continuing operations | 2,464 | 2,449 | 2,385 |
Discontinued operations, net of tax | -1 | -12 | -364 |
Net earnings (Viacom and noncontrolling interests) | 2,463 | 2,437 | 2,021 |
Net earnings attributable to noncontrolling interests | -72 | -42 | -40 |
Net earnings attributable to Viacom | 2,391 | 2,395 | 1,981 |
Amounts attributable to Viacom: | ' | ' | ' |
Net earnings from continuing operations | 2,392 | 2,407 | 2,345 |
Discontinued operations, net of tax | ($1) | ($12) | ($364) |
Basic earnings per share attributable to Viacom: | ' | ' | ' |
Continuing operations (in usd per share) | $5.54 | $4.95 | $4.42 |
Discontinued operations (in usd per share) | ($0.01) | ($0.02) | ($0.69) |
Net earnings (in usd per share) | $5.53 | $4.93 | $3.73 |
Diluted earnings per share attributable to Viacom: | ' | ' | ' |
Continuing operations (in usd per share) | $5.43 | $4.86 | $4.36 |
Discontinued operations (in usd per share) | $0 | ($0.02) | ($0.67) |
Net earnings (in usd per share) | $5.43 | $4.84 | $3.69 |
Weighted average number of common shares outstanding: | ' | ' | ' |
Basic (shares) | 432.1 | 486.2 | 530.7 |
Diluted (shares) | 440.2 | 494.8 | 537.5 |
Dividends declared per share of Class A and Class B common stock | $1.26 | $1.15 | $1.05 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings (Viacom and noncontrolling interests) | $2,463 | $2,437 | $2,021 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustments | -85 | -42 | -41 |
Defined benefit pension plans | -104 | 190 | -63 |
Cash flow hedges | -2 | 9 | 6 |
Available for sale securities | 0 | 3 | -1 |
Other comprehensive income (loss) (Viacom and noncontrolling interests) | -191 | 160 | -99 |
Comprehensive income | 2,272 | 2,597 | 1,922 |
Less: Comprehensive income attributable to noncontrolling interests | 73 | 39 | 41 |
Comprehensive income attributable to Viacom | $2,199 | $2,558 | $1,881 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,000 | $2,403 |
Receivables, net | 3,066 | 2,987 |
Inventory, net | 846 | 770 |
Prepaid and other assets | 340 | 566 |
Total current assets | 5,252 | 6,726 |
Property and equipment, net | 1,016 | 1,040 |
Inventory, net | 3,897 | 3,945 |
Goodwill | 11,535 | 11,079 |
Intangibles, net | 399 | 279 |
Other assets | 1,018 | 760 |
Total assets | 23,117 | 23,829 |
Current liabilities: | ' | ' |
Accounts payable | 475 | 316 |
Accrued expenses | 969 | 1,074 |
Participants' share and residuals | 993 | 1,110 |
Program obligations | 703 | 576 |
Deferred revenue | 259 | 230 |
Current portion of debt | 18 | 18 |
Other liabilities | 518 | 466 |
Total current liabilities | 3,935 | 3,790 |
Noncurrent portion of debt | 12,751 | 11,867 |
Participants' share and residuals | 403 | 437 |
Program obligations | 459 | 527 |
Deferred tax liabilities, net | 266 | 649 |
Other liabilities | 1,340 | 1,169 |
Redeemable noncontrolling interest | 216 | 200 |
Commitments and contingencies | ' | ' |
Viacom stockholders' equity: | ' | ' |
Additional paid-in capital | 9,772 | 9,490 |
Treasury stock, 377.0 and 336.3 common shares held in treasury, respectively | -19,225 | -15,825 |
Retained earnings | 13,465 | 11,629 |
Accumulated other comprehensive loss | -293 | -101 |
Total Viacom stockholders' equity | 3,719 | 5,193 |
Noncontrolling interests | 28 | -3 |
Total equity | 3,747 | 5,190 |
Total liabilities and equity | 23,117 | 23,829 |
Common stock, Class A | ' | ' |
Viacom stockholders' equity: | ' | ' |
Common stock value | 0 | 0 |
Common stock, Class B | ' | ' |
Viacom stockholders' equity: | ' | ' |
Common stock value | $0 | $0 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Treasury Shares | 377,000,000 | 336,300,000 |
Common stock, Class A | ' | ' |
Common stock, par value | 0.001 | 0.001 |
Common Stock Authorized | 375,000,000 | 375,000,000 |
Common stock, outstanding | 50,900,000 | 51,100,000 |
Common stock, Class B | ' | ' |
Common stock, par value | 0.001 | 0.001 |
Common Stock Authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, outstanding | 363,300,000 | 398,200,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES [Abstract] | ' | ' | ' |
Net earnings (Viacom and noncontrolling interests) | $2,463 | $2,437 | $2,021 |
Discontinued operations, net of tax | 1 | 12 | 364 |
Net earnings from continuing operations | 2,464 | 2,449 | 2,385 |
Reconciling items: | ' | ' | ' |
Depreciation and amortization | 217 | 237 | 236 |
Impairment of Intangible Assets (Excluding Goodwill) | 43 | 7 | 0 |
Feature film and program amortization | 4,206 | 4,371 | 4,380 |
Equity-based compensation | 122 | 128 | 122 |
Equity in net earnings and distributions from investee companies | -39 | 15 | -6 |
Gain on sale of HBO Pacific Partners and LAPTV | 0 | -111 | 0 |
Deferred income taxes | -290 | 494 | -87 |
Operating assets and liabilities, net of acquisitions: | ' | ' | ' |
Receivables | -106 | -423 | 209 |
Inventory, program rights and participations | -4,245 | -4,063 | -4,492 |
Accounts payable and other current liabilities | 252 | -31 | -306 |
Other, net | -27 | 41 | 56 |
Discontinued operations, net | 0 | -31 | 1 |
Cash provided by operations | 2,597 | 3,083 | 2,498 |
INVESTING ACTIVITIES | ' | ' | ' |
Acquisitions and investments, net | -732 | 124 | -18 |
Capital expenditures | -123 | -160 | -154 |
Discontinued operations, net | 0 | -299 | -84 |
Net cash flow used in investing activities | -855 | -335 | -256 |
FINANCING ACTIVITIES | ' | ' | ' |
Borrowings | 1,484 | 3,732 | 2,116 |
Debt repayments | -600 | 0 | -892 |
Commercial paper | 0 | 0 | -423 |
Purchase of treasury stock | -3,529 | -4,664 | -2,809 |
Dividends paid | -541 | -555 | -554 |
Excess tax benefits on equity-based compensation awards | 84 | 97 | 37 |
Exercise of stock options | 173 | 403 | 268 |
Other, net | -171 | -172 | -156 |
Net cash flow used in financing activities | -3,100 | -1,159 | -2,413 |
Effect of exchange rate changes on cash and cash equivalents | -45 | -34 | -2 |
Net change in cash and cash equivalents | -1,403 | 1,555 | -173 |
Cash and cash equivalents at beginning of period | 2,403 | 848 | 1,021 |
Cash and cash equivalents at end of period | $1,000 | $2,403 | $848 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock (shares) | Common Stock/ Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Viacom Stockholdersb Equity | Noncontrolling Interests |
In Millions | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Equity, at beginning of period at Sep. 30, 2011 | $8,633 | ' | $8,615 | ($8,225) | $8,418 | ($164) | $8,644 | ($11) |
Shares issued, at beginning of period at Sep. 30, 2011 | ' | 558.3 | ' | ' | ' | ' | ' | ' |
Net earnings | 2,021 | ' | 0 | 0 | 1,981 | 0 | 1,981 | 40 |
Other comprehensive income (loss), net of income tax benefit of $36 | -99 | ' | 0 | 0 | 0 | -100 | -100 | 1 |
Noncontrolling interests | -59 | ' | 0 | 0 | -20 | 0 | -20 | -39 |
Dividends declared | -559 | ' | 0 | 0 | -559 | 0 | -559 | 0 |
Purchase of treasury stock | -2,800 | ' | 0 | -2,800 | 0 | 0 | -2,800 | 0 |
Purchase of treasury stock, shares | ' | -59.9 | ' | ' | ' | ' | ' | ' |
Equity-based compensation and other | 302 | ' | 302 | 0 | 0 | 0 | 302 | 0 |
Equity based compensation and other, shares | ' | 8.6 | ' | ' | ' | ' | ' | ' |
Equity, at end of period at Sep. 30, 2012 | 7,439 | ' | 8,917 | -11,025 | 9,820 | -264 | 7,448 | -9 |
Shares issued, at end of period at Sep. 30, 2012 | ' | 507 | ' | ' | ' | ' | ' | ' |
Net earnings | 2,437 | ' | 0 | 0 | 2,395 | 0 | 2,395 | 42 |
Other comprehensive income (loss), net of income tax benefit of $36 | 160 | ' | 0 | 0 | 0 | 163 | 163 | -3 |
Noncontrolling interests | -57 | ' | 0 | 0 | -24 | 0 | -24 | -33 |
Dividends declared | -562 | ' | 0 | 0 | -562 | 0 | -562 | 0 |
Purchase of treasury stock | -4,800 | ' | 0 | -4,800 | 0 | 0 | -4,800 | 0 |
Purchase of treasury stock, shares | ' | -69.2 | ' | ' | ' | ' | ' | ' |
Equity-based compensation and other | 573 | ' | 573 | 0 | 0 | 0 | 573 | 0 |
Equity based compensation and other, shares | ' | 11.5 | ' | ' | ' | ' | ' | ' |
Equity, at end of period at Sep. 30, 2013 | 5,190 | ' | 9,490 | -15,825 | 11,629 | -101 | 5,193 | -3 |
Shares issued, at end of period at Sep. 30, 2013 | ' | 449.3 | ' | ' | ' | ' | ' | ' |
Net earnings | 2,463 | ' | 0 | 0 | 2,391 | 0 | 2,391 | 72 |
Other comprehensive income (loss), net of income tax benefit of $36 | -191 | ' | 0 | 0 | 0 | -192 | -192 | 1 |
Noncontrolling interests | -50 | ' | 0 | 0 | -8 | 0 | -8 | -42 |
Dividends declared | -547 | ' | 0 | 0 | -547 | 0 | -547 | 0 |
Purchase of treasury stock | -3,400 | ' | 0 | -3,400 | 0 | 0 | -3,400 | 0 |
Purchase of treasury stock, shares | ' | -40.7 | ' | ' | ' | ' | ' | ' |
Equity-based compensation and other | 282 | ' | 282 | 0 | 0 | 0 | 282 | 0 |
Equity based compensation and other, shares | ' | 5.6 | ' | ' | ' | ' | ' | ' |
Equity, at end of period at Sep. 30, 2014 | $3,747 | ' | $9,772 | ($19,225) | $13,465 | ($293) | $3,719 | $28 |
Shares issued, at end of period at Sep. 30, 2014 | ' | 414.2 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Tax | $68 | $119 | $36 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
Description of Business | |
Viacom Inc. is a leading global entertainment content company that connects with audiences in more than 165 countries and territories and creates compelling television programming, motion pictures, short-form videos, apps, games, brands for consumer products, social media and other entertainment content. Viacom operates through two reporting segments: Media Networks, which includes Music, Nickelodeon, Entertainment and BET Networks, and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Insurge Pictures, MTV Films, Nickelodeon Movies and Paramount Television brands. References in this document to “Viacom”, “Company”, “we”, “us”, or “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise. | |
The consolidated financial statements present the Company’s financial results for the years ended September 30, 2014 (“2014”), September 30, 2013 (“2013”) and September 30, 2012 (“2012”). | |
Use of Estimates | |
Preparing financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, allowance for doubtful accounts, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the 2014 presentation. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 - Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive revenue recognition model that supersedes the current revenue recognition requirements and most industry-specific guidance. The underlying core principle of ASU 2014-09 is that a company should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. ASU 2014-09 will be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and allows adoption either under a full retrospective or a modified retrospective approach. Early adoption is not permitted. We will adopt ASU 2014-09 during the first quarter of fiscal 2018. We are currently evaluating the impact of the new standard. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation | ||
Our consolidated financial statements include the accounts of Viacom Inc., its subsidiaries and variable interest entities (“VIEs”) where we are considered the primary beneficiary, after elimination of intercompany accounts and transactions. Investments in business entities in which Viacom lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Our proportionate share of net income or loss of the entity is recorded in Equity in net earnings of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation (“CBS”) and National Amusements Inc. (“NAI”) have not been eliminated. | ||
Business Combinations | ||
We account for business combinations using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, 100% of the assets, liabilities and certain contingent liabilities acquired, including amounts attributed to noncontrolling interests, are recorded at fair value. Any transaction costs are expensed as incurred. | ||
Foreign Currency Translation | ||
Assets and liabilities of subsidiaries with a functional currency other than the United States (“U.S.”) Dollar are translated into U.S. Dollars using period-end exchange rates, while results of operations are translated at average exchange rates during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Substantially all of our foreign operations use the local currency as the functional currency. Foreign subsidiaries using the U.S. Dollar as the functional currency include remeasurement adjustments in earnings, which are reflected within Other items, net in the Consolidated Statements of Earnings. | ||
Revenue Recognition | ||
We recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. This includes the evaluation of multiple element arrangements for bundled advertising sales and content licenses, which involves allocating the consideration among individual deliverables within the bundled arrangement. | ||
Advertising Revenues: Revenues from the sale of advertising earned by the Media Networks segment is recognized, net of agency commissions, when the advertisement is aired and the contracted audience rating is met. For advertising sold based on impression guarantees, audience deficiency may result in an obligation to deliver additional units. To the extent we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience rating has been satisfied. | ||
Feature Film Revenues: Revenue is recognized from theatrical distribution of motion pictures upon exhibition. For home entertainment product revenue, including sales to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue from the licensing of feature films for exhibition in television markets is recognized upon availability for airing by the licensee. Revenue for digital transactional video-on-demand and download-to-own arrangements are recognized as the feature films are exhibited based on end-customer purchases as reported by the distributor. | ||
Affiliate Fees: Affiliate fees from cable television, satellite and telecommunications operators are recognized by the Media Networks segment as the service is provided to the distributor. Fees associated with certain distribution arrangements are recognized upon program availability. | ||
Ancillary Revenues: Revenue associated with consumer products and brand licensing is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. Revenue from licensing of our content for download-to-own and download-to-rent services is recognized when we are notified by the multi-platform retailer that the product has been downloaded and all other revenue recognition criteria are met. | ||
Gross versus Net Revenue: We earn and recognize revenues as a distributor on behalf of third parties and through outsourced agency agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of whether we act as the principal or agent in the transaction. To the extent we act as the principal in a transaction, revenues are reported on a gross basis. Determining whether we act as principal or agent in a transaction involves judgment and is based on an evaluation of whether we have the substantial risks and rewards of ownership under the terms of an arrangement. | ||
Revenue Allowances: We record a provision for sales returns and allowances at the time of sale based upon an estimate of future returns, rebates and other incentives (“estimated returns”). In determining estimated returns, we consider numerous sources of qualitative and quantitative evidence including forecasted sales data, customers’ rights of return, units shipped and units remaining at retail, historical return rates for similar product, current economic trends, competitive environment, promotions and sales strategies. Reserves for accounts receivable are based on amounts estimated to be uncollectible. Our reserve for sales returns and allowances was $199 million and $261 million at September 30, 2014 and 2013, respectively. Our allowance for doubtful accounts was $30 million and $33 million at September 30, 2014 and 2013, respectively. | ||
Advertising Expense | ||
We expense advertising costs as they are incurred. We incurred total advertising expenses of $1.020 billion in 2014, $1.117 billion in 2013 and $1.205 billion in 2012. | ||
Equity-Based Compensation | ||
We measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value received is recognized in earnings over the period during which an employee is required to provide service. | ||
Income Taxes | ||
Our provision for income taxes includes the current tax owed on the current period earnings, as well as a deferred provision which reflects the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in existing tax laws and rates, their related interpretations, as well as the uncertainty generated by the prospect of tax legislation in the future may affect the amounts of deferred tax liabilities or the realizability of deferred tax assets. | ||
For tax positions we have taken or expect to take in a tax return, we apply a more likely than not assessment (i.e., there is a greater than 50 percent chance) about whether the tax position will be sustained upon examination by the appropriate tax authority with full knowledge of all relevant information. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the position. Interest and penalties related to uncertain tax positions are included in the Provision for income taxes in the Consolidated Statements of Earnings. Liabilities for uncertain tax positions are classified as Other liabilities – noncurrent in the Consolidated Balance Sheets. | ||
Earnings per Common Share | ||
Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares are excluded from the calculation of diluted earnings per common share. | ||
Comprehensive Income | ||
Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to defined benefit plans, unrealized gains and losses on certain derivative financial instruments, and unrealized gains and losses on investments in equity securities which are publicly traded. | ||
Cash and Cash Equivalents | ||
All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. | ||
Inventory | ||
Inventories related to film and original media network programming content (which include direct production costs, production overhead, acquisition costs and development costs) are stated at the lower of amortized cost or fair value. Acquired program rights and obligations are recorded based on the gross amount of the liability when the license period has begun, and when the program is accepted and available for airing. Acquired programming is stated at the lower of unamortized cost or net realizable value. Film and programming inventories are included as a component of Inventory, net, in the Consolidated Balance Sheets. Film and programming costs, including inventory amortization, development costs, participations and residuals and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. | ||
Film inventory: Film inventories are amortized and estimated liabilities for residuals and participations are accrued using an individual-film-forecast-computation method based on the ratio of current period to estimated remaining total revenues (“ultimate revenues”). Ultimate revenues for feature films include revenues from all sources that are estimated to be earned within 10 years from the date of a film’s initial theatrical release. For acquired film libraries, our estimate of ultimate revenues is for a period within 20 years from the date of acquisition. These estimates are periodically reviewed and adjustments, if any, will result in changes to inventory amortization rates, estimated accruals for participations and residuals or possibly the recognition of an impairment charge to operating income. Film development costs that have not been set for production are expensed within three years unless they are abandoned earlier, in which case these projects are written down to their estimated fair value in the period the decision to abandon the project is determined. We have a rigorous greenlight process designed to manage the risk of loss or abandonment. We have entered into film financing arrangements that involve the sale of a partial copyright interest in a film. Amounts received under these arrangements are deducted from the film’s cost. | ||
Original programming: Capitalized original program costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s life cycle based upon the ratio of current period to estimated remaining total gross revenues (“ultimate revenues”) for each title. Original programming development costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the original programming is less than the unamortized production cost or the programming is abandoned. | ||
Acquired programming: The costs incurred in acquiring programs are capitalized and amortized over the license period or projected useful life of the programming if shorter, commencing upon availability, based on estimated future airings. If initial airings are expected to generate higher revenues an accelerated method of amortization is used. Net realizable value of acquired rights programming is evaluated quarterly by us on a daypart basis, which is defined as an aggregation of programs broadcast during a particular time of day or an aggregation of programs of a similar type. We aggregate similar programming based on the specific demographic targeted by each respective program service. Net realizable value is determined by estimating advertising revenues to be derived from the future airing of the programming within the daypart as well as an allocation of affiliate fee revenue to the programming. An impairment charge may be necessary if our estimates of future cash flows of similar programming are insufficient or if programming is abandoned. | ||
Home entertainment inventory: Home entertainment inventory is valued at the lower of cost or net realizable value. Cost is determined using the average cost method. | ||
Property and Equipment | ||
Property and equipment is stated at cost. Depreciation is calculated using the straight-line method. Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease. Costs associated with repairs and maintenance of property and equipment are expensed as incurred. | ||
Goodwill, Intangible Assets and Other Long-Lived Assets | ||
Goodwill represents the residual difference between the fair value of consideration paid for a business and the net assets acquired. Goodwill is not amortized, but rather is tested annually for impairment, on August 31 each year, or sooner when circumstances indicate impairment may exist. Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or a business which is one level below that operating segment. | ||
Identifiable intangible assets with finite lives are amortized over their estimated useful lives, which range up to 20 years, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate impairment may exist. Amortizable intangible assets and other long-lived assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. | ||
Investments | ||
Our investments primarily consist of investments in equity. Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other investments are carried at fair value, to the extent publicly traded, with unrealized gains and losses recorded in other comprehensive income, or at cost. We monitor our investments for impairment at least annually and make appropriate reductions in carrying values if we determine that an impairment charge is required based on qualitative and quantitative information. Our investments are included in Other assets – noncurrent in the Consolidated Balance Sheets. | ||
Guarantees | ||
At the inception of a guarantee, we recognize a liability for the fair value of an obligation assumed by issuing the guarantee. The related liability is subsequently reduced as utilized or extinguished and increased if there is a probable loss associated with the guarantee which exceeds the value of the recorded liability. | ||
Treasury Stock | ||
Treasury stock is accounted for using the cost method. | ||
Fair Value Measurements | ||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. | |
• | Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
• | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |
Our recurring fair value measures include marketable securities and derivative instruments and our non-recurring fair value measures include goodwill and intangible assets. | ||
Derivative Financial Instruments | ||
Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivatives and the hedged items are recorded in current earnings as part of Other items, net in the Consolidated Statements of Earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets and subsequently recognized in earnings when the hedged items impact income. The fair value of derivative financial instruments is included in Prepaid and other assets and Other liabilities – current in the Consolidated Balance Sheets. Changes in the fair value of derivatives not designated as hedges and the ineffective portion of cash flow hedges are recorded in earnings. We do not hold or enter into financial instruments for speculative trading purposes. | ||
Pension Benefits | ||
Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. The expense we recognize is determined using certain assumptions, including the expected long-term rate of return and discount rate, among others. We recognize the funded status of our defined benefit plans (other than a multiemployer plan) as an asset or liability in the Consolidated Balance Sheets and recognize the changes in the funded status in the year in which the changes occur through Accumulated other comprehensive loss in the Consolidated Balance Sheets. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2014 | |
Receivables [Abstract] | ' |
Accounts Receivable | ' |
ACCOUNTS RECEIVABLE | |
We had $482 million and $379 million of noncurrent trade receivables as of September 30, 2014 and 2013, respectively. The accounts receivable were primarily in the Filmed Entertainment segment, included within Other assets in our Consolidated Balance Sheets, and principally related to long-term television license arrangements. Such amounts are due in accordance with the underlying terms of the respective agreements and are principally from investment grade companies with which we have historically done business under similar terms, for which credit loss allowances are generally not considered necessary. |
Acquisition_and_Investments
Acquisition and Investments | 12 Months Ended | |||||
Sep. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisitions and Investments | ' | |||||
ACQUISITION & INVESTMENTS | ||||||
Acquisition | ||||||
On September 10, 2014, we completed the acquisition of Channel 5 Broadcasting Limited ("Channel 5"), a UK television public service broadcaster, for £450 million. The acquisition will complement our pay television networks and increase our investment in content produced in the UK. | ||||||
The following table summarizes our estimated allocation of the purchase price as of the acquisition date: | ||||||
Purchase Price Allocation | ||||||
(in millions) | ||||||
Inventory, net | $ | 161 | ||||
Other current assets | 102 | |||||
Goodwill | 474 | |||||
Intangibles, net | 211 | |||||
Other assets | 69 | |||||
Total assets acquired | 1,017 | |||||
Program obligations and other current liabilities | 106 | |||||
Program obligations | 64 | |||||
Other liabilities | 100 | |||||
Total liabilities assumed | 270 | |||||
$ | 747 | |||||
The goodwill, which is not deductible for tax purposes, reflects the Company-specific synergies arising from the acquisition, as well as the value of the workforce. Intangible assets primarily consist of a broadcast license with a useful life of 20 years and trade names with useful lives ranging from 4 to 20 years. | ||||||
The operating results of Channel 5 in the current and prior year are not material. | ||||||
Investments | ||||||
We had equity method investments totaling $207 million and $164 million, as of September 30, 2014 and 2013, respectively. We hold an equity interest of approximately 50% in EPIX, a joint venture formed with Lionsgate and Metro-Goldwyn-Mayer to exhibit certain motion pictures on behalf of the equity partners’ movie studios through a premium pay television channel and video-on-demand services available on multiple platforms. We also hold an equity interest of 50% in Viacom 18, a joint venture in India with Network 18 Media and Investments Limited. In addition, we had cost method investments totaling $81 million and $61 million as of September 30, 2014 and 2013, respectively. | ||||||
Variable Interest Entities | ||||||
In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a VIE. In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||
Unconsolidated Variable Interest Entities: Our investment in Viacom 18 qualifies as a VIE. In connection with our investment, we do not have the power to direct matters that most significantly impact the activities of Viacom 18 and therefore we do not qualify as the primary beneficiary. Our carrying value in Viacom 18 was $68 million and $54 million as of September 30, 2014 and 2013, respectively. We and our venture partner each have a commitment to guarantee up to approximately $86 million of bank debt of Viacom 18. There were no borrowings outstanding at September 30, 2014 subject to this guarantee. Our risk of loss is limited to our carrying value and the aforementioned commitment. | ||||||
Consolidated Variable Interest Entities: Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $138 million in assets and $54 million in liabilities as of September 30, 2014, and $77 million in assets and $56 million in liabilities as of September 30, 2013. We have certain rights and obligations related to our investments, including the guarantee of certain third-party bank debt. The consolidated VIEs’ revenues, expenses and operating income were not significant for all periods presented. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property And Equipment | ' | ||||||||||
PROPERTY AND EQUIPMENT | |||||||||||
Property and Equipment, net | September 30, | Estimated | |||||||||
(in millions) | Life | ||||||||||
2014 | 2013 | (in years) | |||||||||
Land | $ | 248 | $ | 248 | — | ||||||
Buildings | 435 | 431 | up to 40 | ||||||||
Capital leases | 266 | 277 | up to 15 | ||||||||
Equipment and other | 1,852 | 1,773 | up to 15 | ||||||||
Property and equipment | 2,801 | 2,729 | |||||||||
Less: Accumulated depreciation | (1,785 | ) | (1,689 | ) | |||||||
Property and equipment, net | $ | 1,016 | $ | 1,040 | |||||||
Depreciation expense, including assets under capital leases, was $177 million in 2014, $174 million in 2013 and $171 million in 2012. Depreciation expense related to capital leases was $21 million in 2014, $21 million in 2013 and $25 million in 2012. Accumulated depreciation of capital leases was $156 million and $148 million at September 30, 2014 and 2013, respectively. |
Inventory
Inventory | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
INVENTORY | ||||||||
Inventory | September 30, | |||||||
(in millions) | 2014 | 2013 | ||||||
Film inventory: | ||||||||
Released, net of amortization | $ | 664 | $ | 570 | ||||
Completed, not yet released | 131 | 40 | ||||||
In process and other | 436 | 653 | ||||||
Total film inventory, net of amortization | 1,231 | 1,263 | ||||||
Original programming: | ||||||||
Released, net of amortization | 1,409 | 1,343 | ||||||
In process and other | 631 | 590 | ||||||
Total original programming, net of amortization | 2,040 | 1,933 | ||||||
Acquired program rights, net of amortization | 1,367 | 1,391 | ||||||
Home entertainment inventory | 105 | 128 | ||||||
Total inventory, net | 4,743 | 4,715 | ||||||
Less current portion | (846 | ) | (770 | ) | ||||
Total inventory-noncurrent, net | $ | 3,897 | $ | 3,945 | ||||
We expect to amortize approximately $1.4 billion of original programming and film inventory, including released and completed, not yet released, during the fiscal year ending September 30, 2015 using the individual-film-forecast-computation method. In addition, we expect to amortize 87% of unamortized released original programming and film inventory, excluding acquired film libraries, at September 30, 2014, within the next three years. As of September 30, 2014, unamortized film libraries of $39 million remain to be amortized based on the respective film ultimates, where available, or on a straight-line basis over a remaining life of two years. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill And Intangibles | ' | |||||||||||
GOODWILL AND INTANGIBLES | ||||||||||||
Goodwill | ||||||||||||
The following table details the change in goodwill by segment for 2014 and 2013: | ||||||||||||
Goodwill | Media | Filmed | Total | |||||||||
(in millions) | Networks | Entertainment | ||||||||||
Balance at September 30, 2012 | $ | 9,452 | $ | 1,593 | $ | 11,045 | ||||||
Acquisitions | 54 | — | 54 | |||||||||
Foreign currency translation | (20 | ) | — | (20 | ) | |||||||
Balance at September 30, 2013 | 9,486 | 1,593 | 11,079 | |||||||||
Acquisitions | 479 | — | 479 | |||||||||
Dispositions | (5 | ) | — | (5 | ) | |||||||
Foreign currency translation | (18 | ) | — | (18 | ) | |||||||
Balance at September 30, 2014 | $ | 9,942 | $ | 1,593 | $ | 11,535 | ||||||
Intangibles | ||||||||||||
The following table details our intangible asset balances by major asset classes: | ||||||||||||
Intangibles | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Subscriber agreements | $ | 57 | $ | 58 | ||||||||
Film distribution and fulfillment services | — | 280 | ||||||||||
Trade names, licenses and other intangible assets | 484 | 438 | ||||||||||
Total finite-lived intangible assets | 541 | 776 | ||||||||||
Accumulated amortization on finite-lived intangible assets: | ||||||||||||
Subscriber agreements | (38 | ) | (35 | ) | ||||||||
Film distribution and fulfillment services | — | (268 | ) | |||||||||
Trade names, licenses and other intangible assets | (159 | ) | (249 | ) | ||||||||
Total accumulated amortization on finite-lived intangible assets | (197 | ) | (552 | ) | ||||||||
Finite-lived intangible assets, net | $ | 344 | $ | 224 | ||||||||
Indefinite-lived intangible assets | 55 | 55 | ||||||||||
Total intangibles, net | $ | 399 | $ | 279 | ||||||||
See Note 14 for information regarding an impairment of a trade name in 2014. | ||||||||||||
Amortization expense relating to intangible assets was $40 million for 2014 and $63 million for 2013 and 2012. We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2014 to be as follows for each of the next five fiscal years: | ||||||||||||
Amortization of Intangibles (in millions) | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||
Amortization expense | $33 | $31 | $30 | $27 | $24 | |||||||
Debt
Debt | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
DEBT | |||||||||||||
Our total debt consists of the following: | |||||||||||||
Debt | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | |||||||||||
Senior Notes and Debentures: | |||||||||||||
Senior notes due September 2014, 4.375% | $ | — | $ | 599 | |||||||||
Senior notes due February 2015, 1.250% | 600 | 600 | |||||||||||
Senior notes due September 2015, 4.250% | 250 | 250 | |||||||||||
Senior notes due April 2016, 6.250% | 917 | 917 | |||||||||||
Senior notes due December 2016, 2.500% | 399 | 398 | |||||||||||
Senior notes due April 2017, 3.500% | 498 | 497 | |||||||||||
Senior notes due October 2017, 6.125% | 499 | 499 | |||||||||||
Senior notes due September 2018, 2.500% | 498 | 497 | |||||||||||
Senior notes due April 2019, 2.200% | 400 | — | |||||||||||
Senior notes due September 2019, 5.625% | 552 | 552 | |||||||||||
Senior notes due March 2021, 4.500% | 495 | 494 | |||||||||||
Senior notes due December 2021, 3.875% | 593 | 592 | |||||||||||
Senior notes due June 2022, 3.125% | 296 | 296 | |||||||||||
Senior notes due March 2023, 3.250% | 298 | 298 | |||||||||||
Senior notes due September 2023, 4.250% | 1,238 | 1,237 | |||||||||||
Senior notes due April 2024, 3.875% | 546 | — | |||||||||||
Senior debentures due April 2036, 6.875% | 1,072 | 1,072 | |||||||||||
Senior debentures due October 2037, 6.750% | 76 | 76 | |||||||||||
Senior debentures due February 2042, 4.500% | 245 | 245 | |||||||||||
Senior debentures due March 2043, 4.375% | 1,089 | 1,085 | |||||||||||
Senior debentures due June 2043, 4.875% | 249 | 249 | |||||||||||
Senior debentures due September 2043, 5.850% | 1,242 | 1,242 | |||||||||||
Senior debentures due April 2044, 5.250% | 549 | — | |||||||||||
Capital lease and other obligations | 168 | 190 | |||||||||||
Total debt | 12,769 | 11,885 | |||||||||||
Less current portion | (18 | ) | (18 | ) | |||||||||
Total noncurrent portion of debt | $ | 12,751 | $ | 11,867 | |||||||||
The amounts classified in the current portion of debt consist of the portion of capital leases payable in the next twelve months. The Senior Notes due in February 2015 and September 2015 are classified as long-term debt as we have the intent as well as the ability, through utilization of our $2.5 billion revolving credit facility, to refinance this debt. | |||||||||||||
Senior Notes and Debentures | |||||||||||||
In March 2014, we issued a total of $1.5 billion of senior notes and debentures as follows: | |||||||||||||
• | 2.200% Senior Notes due April 2019 with an aggregate principal amount of $400 million at a price equal to 99.947% of the principal amount. | ||||||||||||
• | 3.875% Senior Notes due April 2024 with an aggregate principal amount of $550 million at a price equal to 99.192% of the principal amount. | ||||||||||||
• | 5.250% Senior Debentures due April 2044 with an aggregate principal amount of $550 million at a price equal to 99.831% of the principal amount. | ||||||||||||
The proceeds, net of discount and other issuance fees and expenses, from the issuance of the senior notes and debentures were $1.484 billion. | |||||||||||||
In April 2014, we redeemed all $600 million of our outstanding Senior Notes due September 2014 at a redemption price equal to the sum of the principal amount and a make-whole amount, together totaling $611 million, and accrued and unpaid interest of $1 million. As a result of the redemption, we recognized a pre-tax extinguishment loss of $11 million. | |||||||||||||
Our outstanding senior notes and debentures provide for certain covenant packages typical for an investment grade company. There is one acceleration trigger for certain of the senior notes and debentures in the event of a change in control under certain specified circumstances coupled with ratings downgrades due to the change in control. | |||||||||||||
At September 30, 2014 and 2013, the total unamortized net discount related to the fixed rate senior notes and debentures was $419 million and $425 million, respectively. | |||||||||||||
The fair value of our senior notes and debentures was approximately $13.7 billion and $12.3 billion as of September 30, 2014 and 2013, respectively. The valuation of our publicly traded debt is based on quoted prices in active markets. | |||||||||||||
Credit Facility | |||||||||||||
We have a revolving credit agreement in the amount of $2.5 billion with a maturity date of November 2017. The credit facility is used for general corporate purposes and to support commercial paper outstanding, if any. The borrowing rate under the credit facility is LIBOR plus a margin ranging from 0.75% to 1.75% based on our current public debt rating. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of September 30, 2014. | |||||||||||||
At September 30, 2014 and 2013, there were no amounts outstanding under our credit facility. | |||||||||||||
Commercial Paper | |||||||||||||
At September 30, 2014 and 2013, there was no commercial paper outstanding. | |||||||||||||
Scheduled Debt Maturities | |||||||||||||
Our scheduled maturities of debt at face value for each of the next five fiscal years and thereafter, excluding capital leases, outstanding at September 30, 2014 are as follows: | |||||||||||||
Maturities of Debt Excluding Capital Leases | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | After 5 | |||||||
(in millions) | Years | ||||||||||||
Debt | $898 | $918 | $900 | $1,000 | $950 | $8,402 | |||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||||||||||
Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded plan provides a defined benefit based on a percentage of eligible compensation for periods of service. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. | ||||||||||||||||||||||||
The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plans utilizing a measurement date as of September 30, 2014 and 2013, respectively: | ||||||||||||||||||||||||
Change in Benefit Obligation | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Benefit obligation, beginning of period | $ | 893 | $ | 1,139 | ||||||||||||||||||||
Service cost | — | 8 | ||||||||||||||||||||||
Interest cost | 46 | 43 | ||||||||||||||||||||||
Actuarial loss/ (gain) | 159 | (203 | ) | |||||||||||||||||||||
Curtailment gain | — | (65 | ) | |||||||||||||||||||||
Benefits paid | (38 | ) | (29 | ) | ||||||||||||||||||||
Benefit obligation, end of period | $ | 1,060 | $ | 893 | ||||||||||||||||||||
Change in Plan Assets | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Fair value of plan assets, beginning of period | $ | 638 | $ | 576 | ||||||||||||||||||||
Actual return on plan assets | 46 | 85 | ||||||||||||||||||||||
Employer contributions | 10 | 6 | ||||||||||||||||||||||
Benefits paid | (38 | ) | (29 | ) | ||||||||||||||||||||
Fair value of plan assets, end of period | $ | 656 | $ | 638 | ||||||||||||||||||||
Funded status (in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Funded status* | $ | (404 | ) | $ | (255 | ) | ||||||||||||||||||
* These unfunded amounts are included in Other liabilities – noncurrent in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
Accumulated Benefit Obligation | ||||||||||||||||||||||||
The accumulated benefit obligation includes no assumption about future compensation levels since our plans are frozen. Included in the change in benefit obligation table above are the following funded and unfunded plans with an accumulated benefit obligation equal to or in excess of plan assets at the end of the fiscal year. | ||||||||||||||||||||||||
Funded Plans | Unfunded Plans | Total Plans | ||||||||||||||||||||||
Accumulated Benefit Obligation | September 30, | September 30, | September 30, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accumulated benefit obligation | $ | 761 | $ | 641 | $ | 299 | $ | 252 | $ | 1,060 | $ | 893 | ||||||||||||
Fair value of plan assets | 656 | 638 | — | — | 656 | 638 | ||||||||||||||||||
Funded Status | $ | (105 | ) | $ | (3 | ) | $ | (299 | ) | $ | (252 | ) | $ | (404 | ) | $ | (255 | ) | ||||||
Net Periodic Benefit Costs | ||||||||||||||||||||||||
Our net periodic benefit cost under Viacom’s pension plans consists of the following: | ||||||||||||||||||||||||
Net Periodic Benefit Costs | Year Ended September 30, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Service cost | $ | — | $ | 8 | $ | 32 | ||||||||||||||||||
Interest cost | 46 | 43 | 47 | |||||||||||||||||||||
Expected return on plan assets | (50 | ) | (45 | ) | (37 | ) | ||||||||||||||||||
Recognized actuarial loss | 2 | 9 | 19 | |||||||||||||||||||||
Prior service cost | — | 1 | — | |||||||||||||||||||||
Net periodic benefit costs | $ | (2 | ) | $ | 16 | $ | 61 | |||||||||||||||||
The items reflected in Accumulated other comprehensive loss in the Consolidated Balance Sheets and not yet recognized as a component of net periodic benefit cost are: | ||||||||||||||||||||||||
Unrecognized Benefit Cost | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrecognized actuarial loss | $ | 271 | $ | 110 | ||||||||||||||||||||
The amounts recognized in other comprehensive income during the year are: | ||||||||||||||||||||||||
Other Comprehensive Income | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
Net actuarial loss | $ | 163 | ||||||||||||||||||||||
Recognized actuarial loss | (2 | ) | ||||||||||||||||||||||
Total pretax loss | $ | 161 | ||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
Key Assumptions | 2014 | 2013 | ||||||||||||||||||||||
Weighted-average assumptions - benefit obligations | ||||||||||||||||||||||||
Discount rate | 4.5 | % | 5.25 | % | ||||||||||||||||||||
Weighted-average assumptions - net periodic costs | ||||||||||||||||||||||||
Discount rate | 5.25 | % | 3.91 | % | ||||||||||||||||||||
Expected long-term return on plan assets | 8 | % | 8 | % | ||||||||||||||||||||
Rate of compensation increase* | N/A | 4 | % | |||||||||||||||||||||
* The rate of increase in compensation level assumption is not applicable due to the freeze of the pension plans. | ||||||||||||||||||||||||
Two key assumptions used in accounting for pension liabilities and expenses are the discount rate and expected rate of return on plan assets. The discount rate reflects the estimated rate at which the pension benefit obligations could effectively be settled. We used investment grade corporate bond yields to support our discount rate assumption. The expected long-term returns on plan assets were based upon the target asset allocation and return estimates for equity and debt securities. The expected rate of return for equities was based upon the risk-free rate plus a premium for equity securities. The expected return on debt securities was based upon an analysis of current and historical yields on portfolios of similar quality and duration. | ||||||||||||||||||||||||
Investment Policies and Strategies | ||||||||||||||||||||||||
The Viacom Investments Committee is responsible for managing the investment of assets under the funded pension plan in a prudent manner with regard to preserving principal while providing reasonable returns. The Viacom Investments Committee has established an investment policy through careful study of the returns and risks associated with alternative investment strategies in relation to the current and projected liabilities of the plan, after consulting with an outside investment advisor as it deems appropriate. The investment advisor’s role is to provide guidance to the Viacom Investments Committee on matters pertaining to the investment of plan assets including investment policy, investment selection, monitoring the plan’s performance and compliance with the plan’s investment policies. | ||||||||||||||||||||||||
The investment policy establishes target asset allocations based upon an analysis of the timing and amount of projected benefit payments, the expected returns and risk of the asset classes and the correlation of those returns. Our practice is to review asset allocations regularly with our investment advisor and rebalance as necessary. The range of target asset allocations under our investment policy are 55-75% domestic and non-U.S. equity securities, 25-40% domestic and non-U.S. debt securities and 0-10% in cash and other instruments. | ||||||||||||||||||||||||
The investment advisor implements the investment policy through investments in mutual funds and other pooled asset portfolios. Investments will be diversified within asset classes with the intent to minimize the risk of large losses to the plan. | ||||||||||||||||||||||||
The percentage of asset allocations of our funded pension plan at September 30, 2014 and 2013, by asset category were as follows: | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
Asset Allocations of Funded Pension Plan | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 65 | % | 71 | % | ||||||||||||||||||||
Debt securities | 30 | 29 | ||||||||||||||||||||||
Cash and Cash Equivalents | 5 | — | ||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||
Viacom Class B common stock represents approximately 3% of the plan assets fair values at September 30, 2014 and 2013. | ||||||||||||||||||||||||
Fair Value Measurement of Plan Assets | ||||||||||||||||||||||||
The following table sets forth the plan’s assets at fair value as of September 30, 2014 and 2013. For investments held at the end of the reporting period that are measured at fair value on a recurring basis, there were no transfers between levels from 2013 to 2014. The funded pension plan has no investments classified within level 3 of the valuation hierarchy. | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | ||||||||||||||||||||||
Fair Value of Plan Assets | September 30, | September 30, | September 30, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Cash and Cash Equivalents (1) | $ | 32 | $ | — | $ | 2 | $ | — | $ | 30 | $ | — | ||||||||||||
Equity Securities | ||||||||||||||||||||||||
Common and preferred stock | 48 | 22 | 48 | 22 | — | — | ||||||||||||||||||
U.S. large cap funds (2) | — | 201 | — | 201 | — | — | ||||||||||||||||||
U.S. small / mid cap funds (2) | — | 80 | — | 80 | — | — | ||||||||||||||||||
World ex-U.S. funds (2) | — | 148 | — | 148 | — | — | ||||||||||||||||||
World funds (3) | 304 | — | — | — | 304 | — | ||||||||||||||||||
Emerging markets funds (3) | 73 | — | — | — | 73 | — | ||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. treasury securities | 14 | — | — | — | 14 | — | ||||||||||||||||||
Municipal & government issued bonds | 1 | — | — | — | 1 | — | ||||||||||||||||||
Corporate bonds | 46 | — | — | — | 46 | — | ||||||||||||||||||
Mortgage-backed & asset-backed securities | 44 | — | — | — | 44 | — | ||||||||||||||||||
Emerging markets funds(2) | 27 | 26 | 27 | 26 | — | — | ||||||||||||||||||
High yield funds (2) | — | 52 | — | 52 | — | — | ||||||||||||||||||
Core fixed income funds (2) | — | 109 | — | 109 | — | — | ||||||||||||||||||
Multi-strategy funds (4) | 67 | — | — | — | 67 | — | ||||||||||||||||||
Total | $ | 656 | $ | 638 | $ | 77 | $ | 638 | $ | 579 | $ | — | ||||||||||||
(1) Assets categorized as Level 2 reflect investments in money market funds. | ||||||||||||||||||||||||
(2) Assets reflect mutual funds. | ||||||||||||||||||||||||
(3) Assets reflect common/collective trust funds. | ||||||||||||||||||||||||
(4) Reflects investments in common/collective trust funds and limited partnerships | ||||||||||||||||||||||||
Money market funds are carried at amortized cost which approximates fair value due to the short-term maturity of these investments. Common and preferred stocks are reported at fair value based on quoted market prices on national securities exchanges. Investments in registered investment companies (mutual funds) are stated at the respective funds’ net asset value ("NAV"), which is determined based on market values at the closing price on the last business day of the year and is a quoted price in an active market. The fair value of common/ collective trust funds are based on their NAV at period-end. The fair value of U.S. Treasury securities and bonds is determined based on quoted market prices on national security exchanges, when available, or using valuation models which include certain other observable inputs including recent trading activity and broker quoted prices. Corporate bonds include securities of diverse industries, substantially all investment grade. Mortgage-backed and asset-backed securities are valued using valuation models which incorporate available dealer quotes and market information. The fair value of limited partnerships is valued at period-end based on its underlying investments. | ||||||||||||||||||||||||
Future Benefit Payments | ||||||||||||||||||||||||
The estimated future benefit payments for the next ten fiscal years are as follows: | ||||||||||||||||||||||||
Future Benefit Payments | ||||||||||||||||||||||||
(in millions) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||
Pension benefits | $36 | $39 | $42 | $45 | $48 | $275 | ||||||||||||||||||
Postretirement Health Care and Life Insurance Plans | ||||||||||||||||||||||||
Eligible employees participate in Viacom-sponsored health and welfare plans that provide certain postretirement health care and life insurance benefits to retired employees and their covered dependents. Most of the health and welfare plans are contributory and contain cost-sharing features such as deductibles and coinsurance which are adjusted annually. Claims are paid either through certain trusts funded by Viacom or by our own funds. The amounts related to these plans were not material for all periods presented. | ||||||||||||||||||||||||
401(k) Plans | ||||||||||||||||||||||||
Viacom has defined contribution (401(k)) plans for the benefit of substantially all our employees meeting certain eligibility requirements. Our costs recognized for such plans were $47 million in 2014, $42 million in 2013 and $23 million in 2012. In 2013, we increased the employer matching contribution and introduced a discretionary profit sharing contribution. | ||||||||||||||||||||||||
Multiemployer Benefit Plans | ||||||||||||||||||||||||
We contribute to various multiemployer pension plans under the terms of collective bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans such that (i) contributions made by us to these plans may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||||
While no multiemployer pension plan that we contributed to is considered individually significant to us, we were listed on two Form 5500s as providing more than 5% of total contributions to each plan based on current information available. The most recent filed zone status (which denotes the financial health of a plan) under the Pension Protection Act of 2006 for these two plans is green, indicating that the plans are at least 80% funded. Total contributions that we made to multiemployer pension plans were $52 million in 2014, $43 million in 2013 and $42 million in 2012. | ||||||||||||||||||||||||
We also contribute to various other multiemployer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions that we made to these non-pension multiemployer benefit plans were $74 million in 2014, $69 million in 2013 and $70 million in 2012. |
Redeemable_NCI
Redeemable NCI | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ' | |||||||||||
Redeemable Noncontrolling Interest | ' | |||||||||||
REDEEMABLE NONCONTROLLING INTEREST | ||||||||||||
We are subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary. The put option expires in January 2016 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The activity reflected within redeemable noncontrolling interest for the fiscal years 2014, 2013 and 2012 is presented below. | ||||||||||||
Redeemable Noncontrolling Interest | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 200 | $ | 179 | $ | 152 | ||||||
Net earnings | 20 | 14 | 16 | |||||||||
Distributions | (17 | ) | (13 | ) | (16 | ) | ||||||
Translation adjustment | 5 | (4 | ) | 7 | ||||||||
Redemption value adjustment | 8 | 24 | 20 | |||||||||
Ending balance | $ | 216 | $ | 200 | $ | 179 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Commitments | ||||||||
Our commitments primarily consist of programming and talent commitments, operating and capital lease arrangements, and purchase obligations for goods and services. These arrangements result from our normal course of business and represent obligations that may be payable over several years. | ||||||||
Our programming and talent commitments that are not recorded on the balance sheet, which aggregated to approximately $1.873 billion as of September 30, 2014, included $1.6 billion relating to media networks programming and $273 million for talent contracts. At September 30, 2014, we have recorded, on the balance sheet, programming commitments of $1.162 billion. Amounts expected to be paid over the next five fiscal years, beginning with fiscal year 2015, are as follows: $703 million, $283 million, $119 million, $48 million and $9 million. | ||||||||
We have long-term noncancelable operating and capital lease commitments for office space, equipment, transponders, studio facilities and vehicles. | ||||||||
At September 30, 2014, minimum rental payments under noncancelable leases by fiscal year are as follows: | ||||||||
Noncancelable Lease Commitments | Capital | Operating | ||||||
(in millions) | ||||||||
2015 | $ | 23 | $ | 247 | ||||
2016 | 25 | 228 | ||||||
2017 | 25 | 202 | ||||||
2018 | 25 | 173 | ||||||
2019 | 25 | 72 | ||||||
2020 and thereafter | 17 | 954 | ||||||
Total minimum payments | $ | 140 | $ | 1,876 | ||||
Amounts representing interest | (20 | ) | ||||||
Total | $ | 120 | ||||||
Future minimum operating lease payments have been reduced by future minimum sublease income of $37 million. Rent expense amounted to $227 million in 2014, $205 million in 2013 and $201 million in 2012. | ||||||||
We also have purchase obligations which include agreements to purchase goods or services in the future that totaled $1.177 billion as of September 30, 2014. | ||||||||
Our collaborative arrangements principally relate to contractual arrangements with other studios to jointly finance and distribute theatrical productions (“co-financing arrangements”). A co-financing arrangement typically involves joint ownership of the film asset with each partner responsible for distribution of the film in specific territories. The partners share in the profits and losses of the film in accordance with their respective ownership interest. The amounts recorded in the Consolidated Statements of Earnings related to collaborative arrangements were not material. | ||||||||
Contingencies | ||||||||
Guarantees: In the course of our business, we both provide and receive the benefit of indemnities that are intended to allocate certain risks associated with business transactions. | ||||||||
Leases - We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. (“Famous Players”). In addition, we have certain indemnities provided by the acquirer of Famous Players. These lease commitments amounted to approximately $381 million as of September 30, 2014. The amount of lease commitments varies over time depending on expiration or termination of individual underlying leases, or of the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We have recorded a liability of $192 million with respect to such obligations as of September 30, 2014. We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models. | ||||||||
Other - We have indemnification obligations with respect to letters of credit and surety bonds primarily used as security against non-performance in the normal course of business. The outstanding letters of credit and surety bonds at September 30, 2014 were $36 million and are not recorded on our Consolidated Balance Sheet. | ||||||||
See Note 4 for information regarding our guarantee of the debt of Viacom 18. | ||||||||
Legal Matters: Litigation is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the legal matters described below and other litigation to which we are a party are not likely, in the aggregate, to have a material adverse effect on our results of continuing operations, financial position or operating cash flows. | ||||||||
In February 2013, Cablevision Systems Corporation filed a lawsuit in the United States District Court for the Southern District of New York alleging that Viacom’s industry standard practice of offering discounts for additional network distribution constituted a “tying” arrangement in violation of federal and New York state antitrust laws. Similar arrangements have been upheld by numerous federal and state courts, including in a federal case in which Cablevision itself advocated for the legality of such arrangements. We believe the lawsuit is without merit. In July 2014, Viacom answered the amended complaint and asserted counterclaims against Cablevision for having fraudulently induced Viacom to renew their affiliate agreement at the end of 2012 on terms which Cablevision intended to challenge in the courts. Cablevision answered the counterclaims in September 2014. | ||||||||
In August 2012, a complaint was filed in the United States District Court for the District of Delaware by a Viacom Class B stockholder against us and each member of our Board of Directors. The complaint purported to be a derivative action alleging that, between 2008 and 2011, we violated the terms of our 2007 Senior Executive Short-Term Incentive Plan (the “2007 Plan”) by improperly using subjective criteria to increase the bonuses paid to Messrs. Redstone, Dauman and Dooley in each of those years. The plaintiff alleged that during this period Messrs. Redstone, Dauman and Dooley were paid more than the 2007 Plan permitted and the plaintiff sought to recover the amount of the claimed overpayment, plus interest, for the Company. The plaintiff also alleged that adoption of the Viacom 2012 Senior Executive Short-Term Incentive Plan (the “2012 Plan”) required the vote of all Viacom stockholders and not just holders of our voting Class A common stock. Accordingly, the plaintiff sought to enjoin any payment under the 2012 Plan until a new vote on that plan that included Class B stockholders occurred. In July 2013, the District Court granted our motion to dismiss the complaint. In June 2014, the United States Court of Appeals for the Third Circuit affirmed the decision of the District Court to dismiss the case, and the matter is now fully resolved. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
Common Stock | ||||||||||||
The Viacom Board of Directors has the power to issue shares of authorized but unissued Class A common stock and Class B common stock without further stockholder action, subject to the requirements of applicable law and stock exchanges. Viacom’s certificate of incorporation authorizes 375 million shares of Class A common stock and 5 billion shares of Class B common stock. The number of authorized shares of Class A common stock and Class B common stock could be increased with the approval of the stockholders of a majority of the outstanding shares of Class A common stock and without any action by the holders of shares of Class B common stock. | ||||||||||||
The following is a description of the material terms of Viacom’s capital stock. The following description is not meant to be complete and is qualified by reference to Viacom’s certificate of incorporation and bylaws and Delaware General Corporation Law. | ||||||||||||
Voting Rights: Holders of Class A common stock are entitled to one vote per share. Holders of Class B common stock do not have any voting rights, except as required by Delaware law. Generally, all matters to be voted on by Viacom stockholders must be approved by a majority of the aggregate voting power of the shares of Class A common stock present in person or represented by proxy at a meeting of stockholders, except in certain limited circumstances and as required by Delaware law. | ||||||||||||
Dividends: Stockholders of Class A common stock and Class B common stock will share ratably in any cash dividend declared by the Board of Directors, subject to any preferential rights of any outstanding preferred stock. | ||||||||||||
Conversion: So long as there are 5,000 shares of Class A common stock outstanding, each share of Class A common stock will be convertible at the option of the holder of such share into one share of Class B common stock. | ||||||||||||
Liquidation Rights: In the event of liquidation, dissolution or winding-up of Viacom, all stockholders of common stock, regardless of class, will be entitled to share ratably in any assets available for distributions to stockholders of shares of Viacom common stock subject to the preferential rights of any outstanding preferred stock. | ||||||||||||
Split, Subdivisions or Combination: In the event of a split, subdivision or combination of the outstanding shares of Class A common stock or Class B common stock, the outstanding shares of the other class of common stock will be divided proportionally. | ||||||||||||
Preemptive Rights: Shares of Class A common stock and Class B common stock do not entitle a stockholder to any preemptive rights enabling a stockholder to subscribe for or receive shares of stock of any class or any other securities convertible into shares of stock of any class of Viacom. | ||||||||||||
Preferred Stock | ||||||||||||
Our capital stock includes 25 million authorized shares of preferred stock with a par value of $0.001 per share. At September 30, 2014 and 2013, none of the 25 million authorized shares of the preferred stock were issued and outstanding. | ||||||||||||
Stock Repurchase Program | ||||||||||||
During 2014, we repurchased 40.7 million shares for an aggregate price of $3.4 billion. From October 1, 2014 through November 12, 2014, we repurchased an additional 3.6 million shares for an aggregate price of $260 million. As of November 12, 2014, we had $6.24 billion of remaining capacity in our $20.0 billion stock repurchase program. During 2013 and 2012, we repurchased 69.2 million and 59.9 million shares under the program for an aggregate price of $4.8 billion and $2.8 billion, respectively. | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
The components of Accumulated other comprehensive loss are as follows: | ||||||||||||
Accumulated Other Comprehensive Loss | September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Foreign currency translation adjustments | $ | (106 | ) | $ | (20 | ) | $ | 19 | ||||
Defined benefit pension plans | (186 | ) | (82 | ) | (272 | ) | ||||||
Cash flow hedges | (1 | ) | 1 | (8 | ) | |||||||
Available for sale securities | — | — | (3 | ) | ||||||||
Total | $ | (293 | ) | $ | (101 | ) | $ | (264 | ) | |||
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Equity Based Compensation | ' | ||||||||||||||||||||
EQUITY-BASED COMPENSATION | |||||||||||||||||||||
Our 2006 Long-Term Management Incentive Plan, as amended and restated effective January 1, 2011 (the “LTMIP”), provides for various types of equity awards, including stock options, stock appreciation rights, restricted shares, restricted share units (“RSUs”), unrestricted shares of Class B common stock, phantom shares, dividend equivalents, performance share units (“PSUs”), performance-based RSUs (“PRSUs”) and other awards, or a combination of any of the above. In addition, our equity plans for outside directors provide for an annual grant of RSUs. We have primarily granted stock options and RSUs to employees. Certain senior executives have also received PSUs and PRSUs. | |||||||||||||||||||||
Stock options generally vest ratably over a four-year period from the date of grant and expire eight to ten years after the date of grant. Employee RSUs typically vest ratably over a four-year period from the date of the grant. Director RSUs typically vest one year from the date of grant. The target number of PSUs granted to an executive representing the right to receive a corresponding number of shares of Class B common stock, subject to adjustment depending on the total shareholder return (“TSR”) of our Class B common stock measured against the TSR of the common stock of the companies comprising the S&P 500 Index at the start of the measurement period. The measurement period is at least three years. The number of shares of Class B common stock an executive is entitled to receive at the end of the applicable measurement period ranges from 0% to 300% of the target PSU award. If Viacom’s percentile rank of TSR relative to the TSR for the companies in the S&P 500 Index is less than the 25th percentile, the target grant is forfeited unless we have achieved a specified level of earnings per share set in advance for the measurement period, in which case the executive would receive a percentage of the target award. The PRSUs vest in four equal annual installments and will deliver, at the time of vesting, 75% to 125% of the target number of shares of Class B common stock underlying the PRSUs, depending on our achievement of certain financial targets over specified periods. RSUs, PSUs and PRSUs accrue dividends each time we declare a quarterly cash dividend while the award is outstanding, which are paid upon vesting on the number of shares delivered and are forfeited if the award does not vest. | |||||||||||||||||||||
Upon the exercise of a stock option award or the vesting of RSUs, PSUs or PRSUs, shares of Class B common stock are issued from authorized but unissued shares or from treasury stock. At September 30, 2014, we had 377.0 million shares in treasury. The aggregate number of equity awards authorized and available under the LTMIP for future grants as of September 30, 2014 was approximately 24.0 million, assuming that outstanding PSU and PRSU awards are paid at target except for those awards for which the measurement period has been completed. | |||||||||||||||||||||
Presented below is a summary of the compensation cost we recognized in the accompanying Consolidated Statements of Earnings: | |||||||||||||||||||||
Equity-Based Compensation Expense | Year Ended September 30, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Recognized in earnings: | |||||||||||||||||||||
Stock options | $ | 37 | $ | 42 | $ | 41 | |||||||||||||||
RSUs, PSUs and PRSUs | 85 | 86 | 81 | ||||||||||||||||||
Total compensation cost in earnings | $ | 122 | $ | 128 | $ | 122 | |||||||||||||||
Tax benefit recognized | $ | 40 | $ | 41 | $ | 39 | |||||||||||||||
Capitalized equity-based compensation expense | $ | 6 | $ | 6 | $ | 10 | |||||||||||||||
Stock Options | |||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of volatility is principally based upon implied volatilities from traded options. The expected term, representing the period of time that options granted are expected to be outstanding, is estimated using a lattice-based model incorporating historical post vest exercise and employee termination behavior. The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. The expected dividend yield is estimated by dividing the expected annual dividend by the market price of our common stock at the date of grant. Below are the weighted average fair value of awards granted in the periods presented and the weighted average of the applicable assumptions used to value stock options at grant date. | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
Key Assumptions | 2014 | 2013 | 2012 | ||||||||||||||||||
Weighted average fair value of grants | $ | 16.52 | $ | 13.02 | $ | 10.17 | |||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Expected stock price volatility | 25 | % | 25.7 | % | 30.7 | % | |||||||||||||||
Expected term of options (in years) | 4.6 | 4.7 | 5 | ||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.8 | % | 0.8 | % | |||||||||||||||
Expected dividend yield | 1.6 | % | 1.7 | % | 2.3 | % | |||||||||||||||
The following table summarizes information about our stock option transactions: | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Stock Options | Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||
(number of options in thousands) | average | average | average | ||||||||||||||||||
exercise | exercise | exercise | |||||||||||||||||||
price | price | price | |||||||||||||||||||
Outstanding at the beginning of the period | 21,441.90 | $ | 42.85 | 29,269.50 | $ | 40.22 | 35,375.70 | $ | 40.91 | ||||||||||||
Granted | 2,040.70 | 84.46 | 2,363.30 | 69.56 | 3,110.00 | 47.37 | |||||||||||||||
Exercised | (4,233.2 | ) | 40.71 | (9,792.1 | ) | 41.23 | (6,398.8 | ) | 41.94 | ||||||||||||
Forfeited or expired | (190.9 | ) | 54.21 | (398.8 | ) | 47.61 | (2,817.4 | ) | 52.94 | ||||||||||||
Outstanding at the end of the period | 19,058.50 | $ | 47.67 | 21,441.90 | $ | 42.85 | 29,269.50 | $ | 40.22 | ||||||||||||
Exercisable at the end of the period | 12,656.10 | $ | 38.75 | 13,024.60 | $ | 37.43 | 19,004.60 | $ | 39.32 | ||||||||||||
The weighted average remaining contractual life of stock options outstanding and exercisable at September 30, 2014 was 4 years and 3 years, respectively. The aggregate intrinsic value of stock options outstanding and exercisable at September 30, 2014 was $573 million and $483 million, respectively. | |||||||||||||||||||||
The following table summarizes information relating to stock option exercises during the periods presented: | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
Stock Option Exercises | 2014 | 2013 | 2012 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Proceeds from stock option exercises | $ | 173 | $ | 403 | $ | 268 | |||||||||||||||
Intrinsic value | $ | 182 | $ | 270 | $ | 51 | |||||||||||||||
Excess Tax benefit | $ | 53 | $ | 77 | $ | — | |||||||||||||||
Total unrecognized compensation cost related to unvested stock option awards at September 30, 2014 was approximately $65 million and is expected to be recognized on a straight-line basis over a weighted-average period of 3 years. | |||||||||||||||||||||
Other Equity-Based Awards | |||||||||||||||||||||
The grant date fair value for RSUs and PRSUs is based on our stock price on the date of the grant. The grant date fair value for the PSUs subject to the market and performance condition indicated earlier in this note is computed using a Monte Carlo model to estimate the total return ranking of Viacom among the S&P 500 Index companies on the date of grant over the measurement periods. Compensation cost assumes all performance goals will be met and is being recognized as the requisite service period is fulfilled. | |||||||||||||||||||||
The following table summarizes activity relating to our RSUs, PSUs and PRSUs: | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||
RSUs, PSUs and PRSUs | Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||
(number of shares in thousands) | of | average | of | average | of | average | |||||||||||||||
shares | grant date | shares | grant date | shares | grant date | ||||||||||||||||
fair | fair | fair | |||||||||||||||||||
value | value | value | |||||||||||||||||||
Unvested at the beginning of the period | 4,311.40 | $ | 53.54 | 5,721.50 | $ | 44.22 | 7,200.70 | $ | 38.58 | ||||||||||||
Granted* | 1,570.80 | 81.86 | 1,750.20 | 62.51 | 2,846.50 | 45.02 | |||||||||||||||
Vested | (2,593.8 | ) | 53.88 | (3,005.2 | ) | 41.49 | (4,028.4 | ) | 35.27 | ||||||||||||
Forfeited | (150.1 | ) | 55.2 | (155.1 | ) | 44.33 | (297.3 | ) | 36.62 | ||||||||||||
Unvested at the end of the period | 3,138.30 | $ | 67.35 | 4,311.40 | $ | 53.54 | 5,721.50 | $ | 44.22 | ||||||||||||
* Grant activity includes 0.2 million, 0.2 million and 0.3 million of performance-based share units at target for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
The total weighted average remaining contractual life and aggregate intrinsic value of unvested RSUs, PSUs and PRSUs at September 30, 2014 was 1 year and $241 million, respectively. | |||||||||||||||||||||
The fair value of RSUs, PSUs and PRSUs vested was $212 million in 2014, $175 million in 2013 and $187 million in 2012. Total unrecognized compensation cost related to these awards at September 30, 2014 was approximately $135 million and is expected to be recognized over a weighted-average period of 3 years. |
Restructuring_Asset_Impairment
Restructuring, Asset Impairment and Other Charges | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring, Asset Impairment And Other Charges | ' | ||||||||||||
RESTRUCTURING, ASSET IMPAIRMENT & OTHER CHARGES | |||||||||||||
In 2014, we made strategic decisions to realign certain channels in several international markets, resulting in a non-cash impairment charge of $43 million related to an international trade name at Media Networks. See Note 20 for additional information regarding the impairment. | |||||||||||||
In 2013 we engaged in a global business transformation initiative, which included the migration of certain financial processing systems to an enterprise-wide general ledger system, as well as undertook a strategic review of some of our brands. This resulted in restructuring, asset impairment and other charges of $106 million that included severance charges of $86 million ($61 million at Media Networks and $25 million at Filmed Entertainment), a $7 million impairment charge resulting from the decision to abandon an intangible asset and $13 million of charges related to management’s decision to cease use of certain original and acquired programming on one of our Media Networks channels. The programming charge represented the acceleration of amortization of such programming into the 2013 fiscal fourth quarter and was included within Operating expenses in the Consolidated Statement of Earnings. | |||||||||||||
The restructuring charges gave rise to certain future liabilities, the components of which are detailed below for 2014, 2013 and 2012. The payments during 2014 reflected in the table below are related to the 2013 restructuring plan. The remaining liability at September 30, 2014 relates predominantly to severance payments yet to be paid out with respect to the 2013 plan pursuant to the respective underlying contractual arrangements. We expect the balance of the severance will be paid in fiscal 2015. | |||||||||||||
Restructuring Liability | Media | Filmed Entertainment | Total | ||||||||||
(in millions) | Networks | ||||||||||||
September 30, 2011 | $ | 80 | $ | 44 | $ | 124 | |||||||
Severance payments | (39 | ) | (31 | ) | (70 | ) | |||||||
Lease payments | (3 | ) | (4 | ) | (7 | ) | |||||||
30-Sep-12 | 38 | 9 | 47 | ||||||||||
Additions | 61 | 25 | 86 | ||||||||||
Severance payments | (20 | ) | (7 | ) | (27 | ) | |||||||
Lease payments | (3 | ) | — | (3 | ) | ||||||||
30-Sep-13 | 76 | 27 | 103 | ||||||||||
Severance payments | (36 | ) | (16 | ) | (52 | ) | |||||||
Lease payments | (1 | ) | — | (1 | ) | ||||||||
Revisions to initial estimates | (9 | ) | — | (9 | ) | ||||||||
30-Sep-14 | $ | 30 | $ | 11 | $ | 41 | |||||||
Other_Items_Net
Other Items, Net | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Items, net | ' | |||||||||||
OTHER ITEMS, NET | ||||||||||||
The items included in other items, net are as follows: | ||||||||||||
Other Items, net | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Gain on sale of HBO Pacific Partners and LAPTV | $ | — | $ | 111 | $ | — | ||||||
Other investment gains | — | 46 | — | |||||||||
Impairment of investment | — | (23 | ) | — | ||||||||
Foreign exchange loss | (14 | ) | (23 | ) | (8 | ) | ||||||
Other gains/(losses) | 3 | (5 | ) | 3 | ||||||||
Other items, net | $ | (11 | ) | $ | 106 | $ | (5 | ) | ||||
In 2013, we completed the sales of our 20% interest in HBO Pacific Partners, V.O.F. (“HBO Pacific Partners”) and our 22.5% interest in LAPTV, LLC (“LAPTV”), partnerships that own pay television channels under various brand names and that were accounted for under the equity method. The sales resulted in aggregate total proceeds of $124 million and a gain of $111 million. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Tax Disclosure | ' | |||||||||||
INCOME TAXES | ||||||||||||
Earnings from continuing operations before provision for income taxes consist of the following: | ||||||||||||
Earnings from Continuing Operations before Provision for Income Taxes | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 2,924 | $ | 3,040 | $ | 2,984 | ||||||
International | 590 | 479 | 486 | |||||||||
Pre-tax earnings from continuing operations | $ | 3,514 | $ | 3,519 | $ | 3,470 | ||||||
The provision for income taxes from continuing operations consists of the following: | ||||||||||||
Provision for Income Taxes from Continuing Operations | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current provision for income taxes: | ||||||||||||
Federal | $ | 1,049 | $ | 401 | $ | 872 | ||||||
State and local | 122 | 23 | 117 | |||||||||
International | 169 | 152 | 183 | |||||||||
Total current provision for income taxes | 1,340 | 576 | 1,172 | |||||||||
Deferred provision for income taxes | (290 | ) | 494 | (87 | ) | |||||||
Provision for income taxes | $ | 1,050 | $ | 1,070 | $ | 1,085 | ||||||
A reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate is as follows: | ||||||||||||
Year Ended September 30, | ||||||||||||
Effective Tax Rate | 2014 | 2013 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State and local taxes, net of federal benefit | 1.9 | 2.2 | 2.2 | |||||||||
Effect of international operations | (3.6 | ) | (2.6 | ) | (0.8 | ) | ||||||
Qualified production activities deduction | (3.2 | ) | (2.1 | ) | (3.0 | ) | ||||||
Change in valuation allowance | (0.3 | ) | (1.8 | ) | (1.4 | ) | ||||||
All other, net | 0.1 | (0.3 | ) | (0.7 | ) | |||||||
Effective tax rate, continuing operations | 29.9 | % | 30.4 | % | 31.3 | % | ||||||
We recognized net discrete tax benefits of $49 million in 2014, $54 million in 2013 and $94 million in 2012, which served to reduce the provision for income taxes for those periods. The benefits in 2014 are principally related to the reversal of deferred taxes on earnings deemed permanently reinvested and the recognition of capital loss carryforwards. The benefits in 2013 principally reflect the release of tax reserves with respect to certain effectively settled tax positions, as well as the recognition of certain capital loss carryforward and tax credit benefits. The benefits in 2012 include certain operating and capital loss carryforward benefits as well as the release of tax reserves with respect to certain effectively settled tax positions. | ||||||||||||
The tax effects of the items recorded as deferred tax assets and liabilities are: | ||||||||||||
Deferred Taxes | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Accrued liabilities | $ | 175 | $ | 199 | ||||||||
Postretirement and other employee benefits | 391 | 294 | ||||||||||
Tax credit and loss carryforwards | 356 | 274 | ||||||||||
All other | 213 | 188 | ||||||||||
Total deferred tax assets | 1,135 | 955 | ||||||||||
Valuation allowance | (308 | ) | (277 | ) | ||||||||
Total deferred tax assets, net | $ | 827 | $ | 678 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, equipment and intangible assets | $ | (498 | ) | $ | (436 | ) | ||||||
Unbilled revenue | (142 | ) | (133 | ) | ||||||||
Financing obligations | (121 | ) | (120 | ) | ||||||||
Film & TV production expenditures | (252 | ) | (535 | ) | ||||||||
Total deferred tax liabilities | (1,013 | ) | (1,224 | ) | ||||||||
Deferred taxes, net | $ | (186 | ) | $ | (546 | ) | ||||||
We have recorded valuation allowances for certain deferred tax assets, which are primarily related to capital losses in the U.S. and net operating losses in foreign jurisdictions, as sufficient uncertainty exists regarding the future realization of these assets. | ||||||||||||
We have $386 million of U.S. tax loss carryforwards at September 30, 2014. The utilization of these carryforwards as an available offset to future taxable income is subject to limitations under U.S. federal income tax laws. These carryforwards begin to expire in fiscal year 2015. In addition, we have $661 million of tax losses in various international jurisdictions that are primarily from countries with unlimited carry forward periods and $86 million of tax losses that expire in the fiscal years 2015 through 2031. The pre-valuation allowance deferred tax asset amount related to these U.S. and international tax loss carryforwards is $356 million. | ||||||||||||
The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: | ||||||||||||
Deferred Tax Assets / (Liabilities) | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Current deferred tax assets | $ | 8 | $ | 58 | ||||||||
Noncurrent deferred tax assets | 105 | 45 | ||||||||||
Current deferred tax liabilities | (33 | ) | — | |||||||||
Noncurrent deferred tax liabilities | (266 | ) | (649 | ) | ||||||||
Deferred taxes, net | $ | (186 | ) | $ | (546 | ) | ||||||
Current and noncurrent deferred tax assets are included within Prepaid and other assets and Other assets, respectively and current deferred tax liabilities are included within Other liabilities-current in the Consolidated Balance Sheets. | ||||||||||||
As of September 30, 2014, we have not made any provision for U.S. income taxes on approximately $2.5 billion of unremitted earnings of our international subsidiaries since these earnings are permanently reinvested outside the U.S. If these earnings were to be remitted in the future, the related U.S. income tax liability may be reduced by any foreign income taxes previously paid on these earnings. Under current U.S. tax laws, repatriating unremitted earnings could result in incremental taxes of 10% -15% on the repatriated amounts depending on the territory. To the extent that any tax reform legislation were to lower the U.S. federal statutory income tax rate from its current 35%, there could be a corresponding reduction in the estimate of incremental taxes that would result from repatriating unremitted earnings. | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: | ||||||||||||
Unrecognized Tax Benefits | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of the period | $ | 159 | $ | 207 | $ | 212 | ||||||
Gross additions based on tax positions related to the current year | 25 | 29 | 28 | |||||||||
Gross additions for tax positions of prior years | 10 | 5 | 24 | |||||||||
Gross reductions for tax positions of prior years | (5 | ) | (50 | ) | (44 | ) | ||||||
Settlements | — | (25 | ) | (2 | ) | |||||||
Expiration of the statute of limitation | (4 | ) | (7 | ) | (11 | ) | ||||||
Balance at end of the period | $ | 185 | $ | 159 | $ | 207 | ||||||
The total amount of unrecognized tax benefits at September 30, 2014, if recognized, would favorably affect the effective tax rate. | ||||||||||||
As discussed in Note 2, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of the Provision for income taxes in the Consolidated Statements of Earnings. We recognized interest and penalties of $10 million in 2014, $9 million in 2013 and $15 million in 2012. We had accruals of $40 million and $35 million related to interest and penalties recorded as a component of Other liabilities – noncurrent in the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively. | ||||||||||||
We and our subsidiaries file income tax returns with the Internal Revenue Service (“IRS”) and various state and international jurisdictions. The IRS concluded its examination of our U.S. consolidated income tax returns through 2009 in 2013. Currently, there are no material potential income tax liabilities still in dispute with respect to the IRS examination of 2010. The IRS began its examination of our 2011 and 2012 U.S. consolidated federal income tax returns in the fourth quarter of fiscal 2014. Tax authorities are also conducting examinations of Viacom subsidiaries in various state and local jurisdictions, including New York State and New York City. Due to potential resolution of unrecognized tax positions involving multiple tax periods and jurisdictions, it is reasonably possible that a reduction of up to $100 million of unrecognized income tax benefits may occur within 12 months, some of which, depending on the nature of the settlement, may affect our income tax provision and therefore benefit the resulting effective tax rate. The majority of these uncertain tax positions, when recognized in the financial statements, would be recorded in the Consolidated Statements of Earnings as part of the Provision for income taxes. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
DISCONTINUED OPERATIONS | |
Net losses from discontinued operations were $1 million, $12 million and $364 million for the three-year period ending September 30, 2014, respectively, principally related to Harmonix, which was sold in December 2010. | |
Discontinued operations for the year ended September 30, 2012 principally reflects a $383 million pre-tax charge related to the earn-out dispute with the former shareholders of Harmonix. For tax purposes, the disposal of Harmonix and related earn-out payment generated tax benefits of approximately $250 million, of which approximately $103 million was utilized as of September 30, 2014. The remaining benefit will be available to offset qualifying future cash taxes. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis | ||||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2013: | ||||||||||||||||
Financial Asset (Liability) | Total | Quoted Prices In | Significant Other | Significant | ||||||||||||
(in millions) | Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||
Identical Assets | Level 2 | Level 3 | ||||||||||||||
Level 1 | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Marketable securities | $ | 107 | $ | 107 | $ | — | $ | — | ||||||||
Derivatives | (8 | ) | — | (8 | ) | — | ||||||||||
Total | $ | 99 | $ | 107 | $ | (8 | ) | $ | — | |||||||
30-Sep-13 | ||||||||||||||||
Marketable securities | $ | 89 | $ | 89 | $ | — | $ | — | ||||||||
Derivatives | (2 | ) | — | (2 | ) | — | ||||||||||
Total | $ | 87 | $ | 89 | $ | (2 | ) | $ | — | |||||||
The fair value for marketable securities is determined utilizing a market approach based on quoted market prices in active markets at period end. These investments are included within Prepaid and other assets in the Consolidated Balance Sheets. | ||||||||||||||||
The fair value for derivatives is determined utilizing a market-based approach. We use derivative financial instruments to modify our exposure to market risks from changes in foreign exchange rates and interest rates. We conduct business in various countries outside the United States, resulting in exposure to movements in foreign exchange rates when translating from the foreign local currency to the U.S. Dollar. We use foreign currency forward contracts to economically hedge anticipated cash flows and foreign currency balances in such currencies as the British Pound, the Indian Rupee, the Euro, the Brazilian Real, the Japanese Yen, the Australian Dollar, the Singapore Dollar and the Canadian Dollar. We also enter into forward contracts to hedge future production costs or programming obligations. The change in fair value of non-designated foreign exchange contracts is included in current period earnings as part of Other items, net in the Consolidated Statements of Earnings. We manage the use of foreign exchange derivatives centrally. | ||||||||||||||||
At September 30, 2014 and 2013, the notional value of all foreign exchange contracts was $628 million and $196 million, respectively. In 2014, $390 million related to our foreign currency balances, $154 million related to anticipated investing cash flows and $84 million related to future production costs. In 2013, $178 million related to our foreign currency balances and $18 million related to future production costs and programming obligations. | ||||||||||||||||
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis | ||||||||||||||||
Certain assets, such as intangible assets and investments, are recorded at fair value only if an impairment charge is recognized. | ||||||||||||||||
In 2014, we recognized an impairment charge of $43 million related to an international trade name at Media Networks. See Note 14 for additional information regarding the impairment. The fair value of the trade name (Level 3) was $28 million calculated utilizing the relief-from-royalty method. Under this method, fair value is calculated as the discounted cash flows based on applying a royalty rate to the revenues derived from the trade name. The royalty rate was derived from market data. | ||||||||||||||||
In 2013, we recognized an impairment loss to write-down a cost method investment to its fair value. The impairment charge is included in Other items, net, in the Consolidated Statement of Earnings. The fair value of the investment (Level 3) was based on a discounted cash flow analysis. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
EARNINGS PER SHARE | |||||||||
The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive shares: | |||||||||
Weighted Average Number of Common Shares Outstanding and | Year Ended September 30, | ||||||||
Anti-Dilutive Common Shares | |||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||
Weighted average number of common shares outstanding, basic | 432.1 | 486.2 | 530.7 | ||||||
Dilutive effect of equity awards | 8.1 | 8.6 | 6.8 | ||||||
Weighted average number of common shares outstanding, diluted | 440.2 | 494.8 | 537.5 | ||||||
Anti-dilutive common shares | 1.1 | 3.2 | 12.5 | ||||||
Supplemental_Cash_Flow
Supplemental Cash Flow | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
Supplemental Cash Flow | ' | |||||||||||
SUPPLEMENTAL CASH FLOW | ||||||||||||
Our supplemental cash flow information is as follows: | ||||||||||||
Supplemental Cash Flow Information | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Cash paid for interest* | $ | 568 | $ | 475 | $ | 409 | ||||||
Cash paid for income taxes | $ | 1,021 | $ | 463 | $ | 1,069 | ||||||
* Includes cash payments related to discontinued operations of $28 million and $3 million in 2013 and 2012, respectively. | ||||||||||||
Cash paid for income taxes in the year ended September 30, 2014 increased from 2013, which included a benefit from the retroactive reenactment of legislation allowing for accelerated tax deductions on certain qualified film and television productions. |
Reporting_Segments
Reporting Segments | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Reporting Segments | ' | |||||||||||||||||||
REPORTING SEGMENTS | ||||||||||||||||||||
The following tables set forth our financial performance by reporting segment. Our reporting segments have been determined in accordance with our internal management structure. We manage our operations through two reporting segments: (i) Media Networks and (ii) Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films exhibition rights by Media Networks. The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the tables below. | ||||||||||||||||||||
Our measure of segment performance is adjusted operating income. Adjusted operating income is defined as operating income, before equity-based compensation and certain other items identified as affecting comparability, including restructuring, asset impairment and other charges, when applicable. | ||||||||||||||||||||
Revenues by Segment | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 10,171 | $ | 9,656 | $ | 9,194 | ||||||||||||||
Filmed Entertainment | 3,725 | 4,282 | 4,820 | |||||||||||||||||
Eliminations | (113 | ) | (144 | ) | (127 | ) | ||||||||||||||
Total revenues | $ | 13,783 | $ | 13,794 | $ | 13,887 | ||||||||||||||
Adjusted Operating Income | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 4,271 | $ | 4,096 | $ | 3,889 | ||||||||||||||
Filmed Entertainment | 205 | 234 | 325 | |||||||||||||||||
Corporate expenses | (227 | ) | (251 | ) | (192 | ) | ||||||||||||||
Equity-based compensation | (122 | ) | (128 | ) | (122 | ) | ||||||||||||||
Eliminations | (2 | ) | (9 | ) | 1 | |||||||||||||||
Asset impairment | (43 | ) | (7 | ) | — | |||||||||||||||
Restructuring and other charges | — | (99 | ) | — | ||||||||||||||||
Operating income | 4,082 | 3,836 | 3,901 | |||||||||||||||||
Interest expense, net | (615 | ) | (464 | ) | (417 | ) | ||||||||||||||
Equity in net earnings of investee companies | 69 | 41 | 12 | |||||||||||||||||
Loss on extinguishment of debt | (11 | ) | — | (21 | ) | |||||||||||||||
Other items, net | (11 | ) | 106 | (5 | ) | |||||||||||||||
Earnings from continuing operations before provision for income taxes | $ | 3,514 | $ | 3,519 | $ | 3,470 | ||||||||||||||
Depreciation and Amortization | Total Assets | |||||||||||||||||||
Depreciation and Amortization and Total Assets | Year Ended September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
Media Networks | $ | 148 | $ | 144 | $ | 144 | $ | 17,647 | $ | 16,653 | ||||||||||
Filmed Entertainment | 64 | 89 | 87 | 5,440 | 5,647 | |||||||||||||||
Corporate/Eliminations | 5 | 4 | 5 | 30 | 1,529 | |||||||||||||||
Total | $ | 217 | $ | 237 | $ | 236 | $ | 23,117 | $ | 23,829 | ||||||||||
Capital Expenditures | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 85 | $ | 103 | $ | 101 | ||||||||||||||
Filmed Entertainment | 34 | 53 | 46 | |||||||||||||||||
Corporate | 4 | 4 | 7 | |||||||||||||||||
Total capital expenditures | $ | 123 | $ | 160 | $ | 154 | ||||||||||||||
Revenues by Component | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Advertising | $ | 4,953 | $ | 4,855 | $ | 4,756 | ||||||||||||||
Feature film | 3,173 | 3,742 | 4,366 | |||||||||||||||||
Affiliate fees | 4,660 | 4,245 | 3,889 | |||||||||||||||||
Ancillary | 1,110 | 1,096 | 1,003 | |||||||||||||||||
Eliminations | (113 | ) | (144 | ) | (127 | ) | ||||||||||||||
Total revenues | $ | 13,783 | $ | 13,794 | $ | 13,887 | ||||||||||||||
Revenues generated from international markets were 26%, 26% and 29% of total consolidated revenues in 2014, 2013 and 2012, respectively. Our principal international businesses are in Europe. The United Kingdom and Germany together accounted for approximately 45% of total revenues in the Europe, Middle East and Africa (“EMEA”) region in each of the three years ended September 30, 2014. | ||||||||||||||||||||
Revenues* | Long-lived Assets** | |||||||||||||||||||
Geographic Information | Year Ended September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
United States | $ | 10,252 | $ | 10,152 | $ | 9,804 | $ | 5,018 | $ | 4,982 | ||||||||||
EMEA | 2,046 | 2,173 | 2,423 | 406 | 418 | |||||||||||||||
All other | 1,485 | 1,469 | 1,660 | 110 | 75 | |||||||||||||||
Total | $ | 13,783 | $ | 13,794 | $ | 13,887 | $ | 5,534 | $ | 5,475 | ||||||||||
*Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. | ||||||||||||||||||||
**Reflects total assets less current assets, deferred tax assets, goodwill, intangibles and investments. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Related Party Transactions | ' | |||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
NAI, directly and through a wholly-owned subsidiary, is the controlling stockholder of both Viacom and CBS. Sumner M. Redstone, the controlling stockholder, Chairman and Chief Executive Officer of NAI, serves as our Executive Chairman and Founder and as the Executive Chairman and Founder of CBS. Shari Redstone, who is Sumner Redstone’s daughter, is the President and a director of NAI, and serves as non-executive Vice Chair of the Board of Directors of both Viacom and CBS. George Abrams, one of our directors, serves on the boards of both NAI and Viacom, and Frederic Salerno, another of our directors, serves on the boards of both Viacom and CBS. Philippe Dauman, our President and Chief Executive Officer, also serves on the boards of both NAI and Viacom. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee. | ||||||||||||
Viacom and NAI Related Party Transactions | ||||||||||||
NAI licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the years ended September 30, 2014, 2013 and 2012, Paramount earned revenues from NAI in connection with these licenses in the aggregate amounts of approximately $15 million, $19 million and $19 million, respectively. | ||||||||||||
Viacom and CBS Corporation Related Party Transactions | ||||||||||||
In the ordinary course of business, we are involved in transactions with CBS and its various businesses that result in the recognition of revenues and expenses by us. Transactions with CBS are settled in cash. | ||||||||||||
Our Filmed Entertainment segment earns revenues and recognizes expenses associated with its distribution of certain television products into the home entertainment market on behalf of CBS. Pursuant to its agreement with CBS, Paramount distributes CBS’s library of television and other content on DVD and Blu-ray disc on a worldwide basis. Under the terms of the agreement, Paramount is entitled to retain a fee based on a percentage of gross receipts and is generally responsible for all out-of-pocket costs, which are recoupable prior to any participation amounts paid. Paramount also earns revenues from CBS through leasing of studio space and licensing of certain film products. | ||||||||||||
Our Media Networks segment recognizes advertising revenues and purchases television programming from CBS. The cost of the programming purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated. | ||||||||||||
Both of our segments recognize advertising expenses related to the placement of advertisements with CBS. | ||||||||||||
The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements: | ||||||||||||
CBS Related Party Transactions | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Consolidated Statements of Earnings | ||||||||||||
Revenues | $ | 213 | $ | 264 | $ | 285 | ||||||
Operating expenses | $ | 296 | $ | 327 | $ | 347 | ||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Consolidated Balance Sheets | ||||||||||||
Accounts receivable | $ | 5 | $ | 5 | ||||||||
Accounts payable | $ | 2 | $ | 3 | ||||||||
Participants' share and residuals, current | 100 | 115 | ||||||||||
Program obligations, current | 87 | 99 | ||||||||||
Program obligations, noncurrent | 104 | 139 | ||||||||||
Other liabilities | 9 | 15 | ||||||||||
Total due to CBS | $ | 302 | $ | 371 | ||||||||
Other Related Party Transactions | ||||||||||||
In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows: | ||||||||||||
Other Related Party Transactions | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Consolidated Statements of Earnings | ||||||||||||
Revenues | $ | 196 | $ | 216 | $ | 309 | ||||||
Operating expenses | $ | 71 | $ | 63 | $ | 120 | ||||||
Selling, general and administrative | $ | (14 | ) | $ | (17 | ) | $ | (16 | ) | |||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Consolidated Balance Sheets | ||||||||||||
Accounts receivable | $ | 84 | $ | 84 | ||||||||
Other assets | 1 | 1 | ||||||||||
Total due from other related parties | $ | 85 | $ | 85 | ||||||||
Accounts payable | $ | 2 | $ | 4 | ||||||||
Other liabilities | 37 | 26 | ||||||||||
Total due to other related parties | $ | 39 | $ | 30 | ||||||||
All other related party transactions are not material in the periods presented. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data Unaudited | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited): | ||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year Ended | |||||||||||||||
(in millions, except per share information) | September 30, 2014 | |||||||||||||||||||
Revenues | $ | 3,197 | $ | 3,174 | $ | 3,421 | $ | 3,991 | $ | 13,783 | ||||||||||
Operating income | $ | 960 | $ | 872 | $ | 1,086 | $ | 1,164 | $ | 4,082 | ||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ | 557 | $ | 511 | $ | 654 | $ | 742 | $ | 2,464 | ||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 557 | $ | 511 | $ | 653 | $ | 742 | $ | 2,463 | ||||||||||
Net earnings from continuing operations attributable to Viacom | $ | 547 | $ | 502 | $ | 611 | $ | 732 | $ | 2,392 | ||||||||||
Net earnings attributable to Viacom | $ | 547 | $ | 502 | $ | 610 | $ | 732 | $ | 2,391 | ||||||||||
Basic net earnings per share, continuing operations attributable to Viacom | $ | 1.23 | $ | 1.15 | $ | 1.43 | $ | 1.74 | $ | 5.54 | ||||||||||
Basic net earnings per share attributable to Viacom | $ | 1.23 | $ | 1.15 | $ | 1.43 | $ | 1.74 | $ | 5.53 | ||||||||||
Diluted net earnings per share, continuing operations attributable to Viacom | $ | 1.2 | $ | 1.13 | $ | 1.4 | $ | 1.72 | $ | 5.43 | ||||||||||
Diluted net earnings per share attributable to Viacom | $ | 1.2 | $ | 1.13 | $ | 1.4 | $ | 1.72 | $ | 5.43 | ||||||||||
2013 | First | Second | Third | Fourth | Year Ended | |||||||||||||||
(in millions, except per share information) | September 30, 2013 | |||||||||||||||||||
Revenues | $ | 3,314 | $ | 3,135 | $ | 3,693 | $ | 3,652 | $ | 13,794 | ||||||||||
Operating income | $ | 797 | $ | 847 | $ | 1,085 | $ | 1,107 | $ | 3,836 | ||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ | 482 | $ | 489 | $ | 666 | $ | 812 | $ | 2,449 | ||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 479 | $ | 486 | $ | 662 | $ | 810 | $ | 2,437 | ||||||||||
Net earnings from continuing operations attributable to Viacom | $ | 473 | $ | 481 | $ | 647 | $ | 806 | $ | 2,407 | ||||||||||
Net earnings attributable to Viacom | $ | 470 | $ | 478 | $ | 643 | $ | 804 | $ | 2,395 | ||||||||||
Basic net earnings per share, continuing operations attributable to Viacom | $ | 0.94 | $ | 0.98 | $ | 1.34 | $ | 1.72 | $ | 4.95 | ||||||||||
Basic net earnings per share attributable to Viacom | $ | 0.94 | $ | 0.97 | $ | 1.33 | $ | 1.72 | $ | 4.93 | ||||||||||
Diluted net earnings per share, continuing operations attributable to Viacom | $ | 0.93 | $ | 0.96 | $ | 1.32 | $ | 1.69 | $ | 4.86 | ||||||||||
Diluted net earnings per share attributable to Viacom | $ | 0.92 | $ | 0.96 | $ | 1.31 | $ | 1.68 | $ | 4.84 | ||||||||||
Schedule_ll_Disclosure
Schedule ll - Disclosure | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule Of Valuation And Qualifying Accounts | ' | |||||||||||||||
VIACOM INC. | ||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(in millions) | Beginning of | Additions - expense | Deductions | End of period | ||||||||||||
period | and other | |||||||||||||||
Year Ended September 30, 2014: | ||||||||||||||||
Allowance for doubtful accounts | $ | 33 | $ | 2 | $ | (5 | ) | $ | 30 | |||||||
Sales returns and allowances | $ | 261 | $ | 468 | $ | (530 | ) | $ | 199 | |||||||
Deferred tax valuation allowance | $ | 277 | $ | 54 | $ | (23 | ) | $ | 308 | |||||||
Year Ended September 30, 2013: | ||||||||||||||||
Allowance for doubtful accounts | $ | 36 | $ | 8 | $ | (11 | ) | $ | 33 | |||||||
Sales returns and allowances | $ | 282 | $ | 503 | $ | (524 | ) | $ | 261 | |||||||
Deferred tax valuation allowance | $ | 324 | $ | 75 | $ | (122 | ) | $ | 277 | |||||||
Year Ended September 30, 2012: | ||||||||||||||||
Allowance for doubtful accounts | $ | 49 | $ | 6 | $ | (19 | ) | $ | 36 | |||||||
Sales returns and allowances | $ | 309 | $ | 595 | $ | (622 | ) | $ | 282 | |||||||
Deferred tax valuation allowance | $ | 222 | $ | 161 | $ | (59 | ) | $ | 324 | |||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
Our consolidated financial statements include the accounts of Viacom Inc., its subsidiaries and variable interest entities (“VIEs”) where we are considered the primary beneficiary, after elimination of intercompany accounts and transactions. Investments in business entities in which Viacom lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Our proportionate share of net income or loss of the entity is recorded in Equity in net earnings of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation (“CBS”) and National Amusements Inc. (“NAI”) have not been eliminated. | ||
Business Combinations | ' | |
Business Combinations | ||
We account for business combinations using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, 100% of the assets, liabilities and certain contingent liabilities acquired, including amounts attributed to noncontrolling interests, are recorded at fair value. Any transaction costs are expensed as incurred. | ||
Foreign Currency Transactions | ' | |
Foreign Currency Translation | ||
Assets and liabilities of subsidiaries with a functional currency other than the United States (“U.S.”) Dollar are translated into U.S. Dollars using period-end exchange rates, while results of operations are translated at average exchange rates during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Substantially all of our foreign operations use the local currency as the functional currency. Foreign subsidiaries using the U.S. Dollar as the functional currency include remeasurement adjustments in earnings, which are reflected within Other items, net in the Consolidated Statements of Earnings. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
We recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. This includes the evaluation of multiple element arrangements for bundled advertising sales and content licenses, which involves allocating the consideration among individual deliverables within the bundled arrangement. | ||
Advertising Revenues: Revenues from the sale of advertising earned by the Media Networks segment is recognized, net of agency commissions, when the advertisement is aired and the contracted audience rating is met. For advertising sold based on impression guarantees, audience deficiency may result in an obligation to deliver additional units. To the extent we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience rating has been satisfied. | ||
Feature Film Revenues: Revenue is recognized from theatrical distribution of motion pictures upon exhibition. For home entertainment product revenue, including sales to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue from the licensing of feature films for exhibition in television markets is recognized upon availability for airing by the licensee. Revenue for digital transactional video-on-demand and download-to-own arrangements are recognized as the feature films are exhibited based on end-customer purchases as reported by the distributor. | ||
Affiliate Fees: Affiliate fees from cable television, satellite and telecommunications operators are recognized by the Media Networks segment as the service is provided to the distributor. Fees associated with certain distribution arrangements are recognized upon program availability. | ||
Ancillary Revenues: Revenue associated with consumer products and brand licensing is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. Revenue from licensing of our content for download-to-own and download-to-rent services is recognized when we are notified by the multi-platform retailer that the product has been downloaded and all other revenue recognition criteria are met. | ||
Gross versus Net Revenue: We earn and recognize revenues as a distributor on behalf of third parties and through outsourced agency agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of whether we act as the principal or agent in the transaction. To the extent we act as the principal in a transaction, revenues are reported on a gross basis. Determining whether we act as principal or agent in a transaction involves judgment and is based on an evaluation of whether we have the substantial risks and rewards of ownership under the terms of an arrangement. | ||
Sales Returns, Allowances & Uncollectible Accounts | ' | |
Revenue Allowances: We record a provision for sales returns and allowances at the time of sale based upon an estimate of future returns, rebates and other incentives (“estimated returns”). In determining estimated returns, we consider numerous sources of qualitative and quantitative evidence including forecasted sales data, customers’ rights of return, units shipped and units remaining at retail, historical return rates for similar product, current economic trends, competitive environment, promotions and sales strategies. Reserves for accounts receivable are based on amounts estimated to be uncollectible. | ||
Advertising Expense | ' | |
Advertising Expense | ||
We expense advertising costs as they are incurred. | ||
Equity-Based Compensation | ' | |
Equity-Based Compensation | ||
We measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value received is recognized in earnings over the period during which an employee is required to provide service. | ||
Provision for Income Taxes | ' | |
Income Taxes | ||
Our provision for income taxes includes the current tax owed on the current period earnings, as well as a deferred provision which reflects the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in existing tax laws and rates, their related interpretations, as well as the uncertainty generated by the prospect of tax legislation in the future may affect the amounts of deferred tax liabilities or the realizability of deferred tax assets. | ||
For tax positions we have taken or expect to take in a tax return, we apply a more likely than not assessment (i.e., there is a greater than 50 percent chance) about whether the tax position will be sustained upon examination by the appropriate tax authority with full knowledge of all relevant information. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the position. Interest and penalties related to uncertain tax positions are included in the Provision for income taxes in the Consolidated Statements of Earnings. Liabilities for uncertain tax positions are classified as Other liabilities – noncurrent in the Consolidated Balance Sheets. | ||
Earnings Per Share | ' | |
Earnings per Common Share | ||
Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares are excluded from the calculation of diluted earnings per common share. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to defined benefit plans, unrealized gains and losses on certain derivative financial instruments, and unrealized gains and losses on investments in equity securities which are publicly traded. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. | ||
Inventory | ' | |
Inventory | ||
Inventories related to film and original media network programming content (which include direct production costs, production overhead, acquisition costs and development costs) are stated at the lower of amortized cost or fair value. Acquired program rights and obligations are recorded based on the gross amount of the liability when the license period has begun, and when the program is accepted and available for airing. Acquired programming is stated at the lower of unamortized cost or net realizable value. Film and programming inventories are included as a component of Inventory, net, in the Consolidated Balance Sheets. Film and programming costs, including inventory amortization, development costs, participations and residuals and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. | ||
Film inventory: Film inventories are amortized and estimated liabilities for residuals and participations are accrued using an individual-film-forecast-computation method based on the ratio of current period to estimated remaining total revenues (“ultimate revenues”). Ultimate revenues for feature films include revenues from all sources that are estimated to be earned within 10 years from the date of a film’s initial theatrical release. For acquired film libraries, our estimate of ultimate revenues is for a period within 20 years from the date of acquisition. These estimates are periodically reviewed and adjustments, if any, will result in changes to inventory amortization rates, estimated accruals for participations and residuals or possibly the recognition of an impairment charge to operating income. Film development costs that have not been set for production are expensed within three years unless they are abandoned earlier, in which case these projects are written down to their estimated fair value in the period the decision to abandon the project is determined. We have a rigorous greenlight process designed to manage the risk of loss or abandonment. We have entered into film financing arrangements that involve the sale of a partial copyright interest in a film. Amounts received under these arrangements are deducted from the film’s cost. | ||
Original programming: Capitalized original program costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s life cycle based upon the ratio of current period to estimated remaining total gross revenues (“ultimate revenues”) for each title. Original programming development costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the original programming is less than the unamortized production cost or the programming is abandoned. | ||
Acquired programming: The costs incurred in acquiring programs are capitalized and amortized over the license period or projected useful life of the programming if shorter, commencing upon availability, based on estimated future airings. If initial airings are expected to generate higher revenues an accelerated method of amortization is used. Net realizable value of acquired rights programming is evaluated quarterly by us on a daypart basis, which is defined as an aggregation of programs broadcast during a particular time of day or an aggregation of programs of a similar type. We aggregate similar programming based on the specific demographic targeted by each respective program service. Net realizable value is determined by estimating advertising revenues to be derived from the future airing of the programming within the daypart as well as an allocation of affiliate fee revenue to the programming. An impairment charge may be necessary if our estimates of future cash flows of similar programming are insufficient or if programming is abandoned. | ||
Home entertainment inventory: Home entertainment inventory is valued at the lower of cost or net realizable value. Cost is determined using the average cost method. | ||
Property and Equipment | ' | |
Property and Equipment | ||
Property and equipment is stated at cost. Depreciation is calculated using the straight-line method. Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease. Costs associated with repairs and maintenance of property and equipment are expensed as incurred. | ||
Impairment | ' | |
Goodwill, Intangible Assets and Other Long-Lived Assets | ||
Goodwill represents the residual difference between the fair value of consideration paid for a business and the net assets acquired. Goodwill is not amortized, but rather is tested annually for impairment, on August 31 each year, or sooner when circumstances indicate impairment may exist. Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or a business which is one level below that operating segment. | ||
Identifiable intangible assets with finite lives are amortized over their estimated useful lives, which range up to 20 years, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate impairment may exist. Amortizable intangible assets and other long-lived assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. | ||
Investments | ' | |
Investments | ||
Our investments primarily consist of investments in equity. Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other investments are carried at fair value, to the extent publicly traded, with unrealized gains and losses recorded in other comprehensive income, or at cost. We monitor our investments for impairment at least annually and make appropriate reductions in carrying values if we determine that an impairment charge is required based on qualitative and quantitative information. Our investments are included in Other assets – noncurrent in the Consolidated Balance Sheets. | ||
Guarantees | ' | |
Guarantees | ||
At the inception of a guarantee, we recognize a liability for the fair value of an obligation assumed by issuing the guarantee. The related liability is subsequently reduced as utilized or extinguished and increased if there is a probable loss associated with the guarantee which exceeds the value of the recorded liability. | ||
Treasury Stock | ' | |
Treasury Stock | ||
Treasury stock is accounted for using the cost method. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. | |
• | Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
• | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |
Our recurring fair value measures include marketable securities and derivative instruments and our non-recurring fair value measures include goodwill and intangible assets. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivatives and the hedged items are recorded in current earnings as part of Other items, net in the Consolidated Statements of Earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets and subsequently recognized in earnings when the hedged items impact income. The fair value of derivative financial instruments is included in Prepaid and other assets and Other liabilities – current in the Consolidated Balance Sheets. Changes in the fair value of derivatives not designated as hedges and the ineffective portion of cash flow hedges are recorded in earnings. We do not hold or enter into financial instruments for speculative trading purposes. | ||
Pension and Other Postretirement Benefits | ' | |
Pension Benefits | ||
Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. The expense we recognize is determined using certain assumptions, including the expected long-term rate of return and discount rate, among others. We recognize the funded status of our defined benefit plans (other than a multiemployer plan) as an asset or liability in the Consolidated Balance Sheets and recognize the changes in the funded status in the year in which the changes occur through Accumulated other comprehensive loss in the Consolidated Balance Sheets. | ||
Collaborative Arrangements | ' | |
Our collaborative arrangements principally relate to contractual arrangements with other studios to jointly finance and distribute theatrical productions (“co-financing arrangements”). A co-financing arrangement typically involves joint ownership of the film asset with each partner responsible for distribution of the film in specific territories. The partners share in the profits and losses of the film in accordance with their respective ownership interest. The amounts recorded in the Consolidated Statements of Earnings related to collaborative arrangements were not material. |
Acquisition_and_Investments_Ta
Acquisition and Investments (Tables) | 12 Months Ended | |||||
Sep. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Purchase Price Allocation | ' | |||||
The following table summarizes our estimated allocation of the purchase price as of the acquisition date: | ||||||
Purchase Price Allocation | ||||||
(in millions) | ||||||
Inventory, net | $ | 161 | ||||
Other current assets | 102 | |||||
Goodwill | 474 | |||||
Intangibles, net | 211 | |||||
Other assets | 69 | |||||
Total assets acquired | 1,017 | |||||
Program obligations and other current liabilities | 106 | |||||
Program obligations | 64 | |||||
Other liabilities | 100 | |||||
Total liabilities assumed | 270 | |||||
$ | 747 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property Plant And Equipment (Table) | ' | ||||||||||
Property and Equipment, net | September 30, | Estimated | |||||||||
(in millions) | Life | ||||||||||
2014 | 2013 | (in years) | |||||||||
Land | $ | 248 | $ | 248 | — | ||||||
Buildings | 435 | 431 | up to 40 | ||||||||
Capital leases | 266 | 277 | up to 15 | ||||||||
Equipment and other | 1,852 | 1,773 | up to 15 | ||||||||
Property and equipment | 2,801 | 2,729 | |||||||||
Less: Accumulated depreciation | (1,785 | ) | (1,689 | ) | |||||||
Property and equipment, net | $ | 1,016 | $ | 1,040 | |||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Balances | ' | |||||||
Inventory | September 30, | |||||||
(in millions) | 2014 | 2013 | ||||||
Film inventory: | ||||||||
Released, net of amortization | $ | 664 | $ | 570 | ||||
Completed, not yet released | 131 | 40 | ||||||
In process and other | 436 | 653 | ||||||
Total film inventory, net of amortization | 1,231 | 1,263 | ||||||
Original programming: | ||||||||
Released, net of amortization | 1,409 | 1,343 | ||||||
In process and other | 631 | 590 | ||||||
Total original programming, net of amortization | 2,040 | 1,933 | ||||||
Acquired program rights, net of amortization | 1,367 | 1,391 | ||||||
Home entertainment inventory | 105 | 128 | ||||||
Total inventory, net | 4,743 | 4,715 | ||||||
Less current portion | (846 | ) | (770 | ) | ||||
Total inventory-noncurrent, net | $ | 3,897 | $ | 3,945 | ||||
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Changes in Goodwill | ' | |||||||||||
The following table details the change in goodwill by segment for 2014 and 2013: | ||||||||||||
Goodwill | Media | Filmed | Total | |||||||||
(in millions) | Networks | Entertainment | ||||||||||
Balance at September 30, 2012 | $ | 9,452 | $ | 1,593 | $ | 11,045 | ||||||
Acquisitions | 54 | — | 54 | |||||||||
Foreign currency translation | (20 | ) | — | (20 | ) | |||||||
Balance at September 30, 2013 | 9,486 | 1,593 | 11,079 | |||||||||
Acquisitions | 479 | — | 479 | |||||||||
Dispositions | (5 | ) | — | (5 | ) | |||||||
Foreign currency translation | (18 | ) | — | (18 | ) | |||||||
Balance at September 30, 2014 | $ | 9,942 | $ | 1,593 | $ | 11,535 | ||||||
Intangible Asset Balances | ' | |||||||||||
The following table details our intangible asset balances by major asset classes: | ||||||||||||
Intangibles | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Subscriber agreements | $ | 57 | $ | 58 | ||||||||
Film distribution and fulfillment services | — | 280 | ||||||||||
Trade names, licenses and other intangible assets | 484 | 438 | ||||||||||
Total finite-lived intangible assets | 541 | 776 | ||||||||||
Accumulated amortization on finite-lived intangible assets: | ||||||||||||
Subscriber agreements | (38 | ) | (35 | ) | ||||||||
Film distribution and fulfillment services | — | (268 | ) | |||||||||
Trade names, licenses and other intangible assets | (159 | ) | (249 | ) | ||||||||
Total accumulated amortization on finite-lived intangible assets | (197 | ) | (552 | ) | ||||||||
Finite-lived intangible assets, net | $ | 344 | $ | 224 | ||||||||
Indefinite-lived intangible assets | 55 | 55 | ||||||||||
Total intangibles, net | $ | 399 | $ | 279 | ||||||||
Future Amortization Expense | ' | |||||||||||
We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2014 to be as follows for each of the next five fiscal years: | ||||||||||||
Amortization of Intangibles (in millions) | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||
Amortization expense | $33 | $31 | $30 | $27 | $24 | |||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt Balances | ' | ||||||||||||
Our total debt consists of the following: | |||||||||||||
Debt | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | |||||||||||
Senior Notes and Debentures: | |||||||||||||
Senior notes due September 2014, 4.375% | $ | — | $ | 599 | |||||||||
Senior notes due February 2015, 1.250% | 600 | 600 | |||||||||||
Senior notes due September 2015, 4.250% | 250 | 250 | |||||||||||
Senior notes due April 2016, 6.250% | 917 | 917 | |||||||||||
Senior notes due December 2016, 2.500% | 399 | 398 | |||||||||||
Senior notes due April 2017, 3.500% | 498 | 497 | |||||||||||
Senior notes due October 2017, 6.125% | 499 | 499 | |||||||||||
Senior notes due September 2018, 2.500% | 498 | 497 | |||||||||||
Senior notes due April 2019, 2.200% | 400 | — | |||||||||||
Senior notes due September 2019, 5.625% | 552 | 552 | |||||||||||
Senior notes due March 2021, 4.500% | 495 | 494 | |||||||||||
Senior notes due December 2021, 3.875% | 593 | 592 | |||||||||||
Senior notes due June 2022, 3.125% | 296 | 296 | |||||||||||
Senior notes due March 2023, 3.250% | 298 | 298 | |||||||||||
Senior notes due September 2023, 4.250% | 1,238 | 1,237 | |||||||||||
Senior notes due April 2024, 3.875% | 546 | — | |||||||||||
Senior debentures due April 2036, 6.875% | 1,072 | 1,072 | |||||||||||
Senior debentures due October 2037, 6.750% | 76 | 76 | |||||||||||
Senior debentures due February 2042, 4.500% | 245 | 245 | |||||||||||
Senior debentures due March 2043, 4.375% | 1,089 | 1,085 | |||||||||||
Senior debentures due June 2043, 4.875% | 249 | 249 | |||||||||||
Senior debentures due September 2043, 5.850% | 1,242 | 1,242 | |||||||||||
Senior debentures due April 2044, 5.250% | 549 | — | |||||||||||
Capital lease and other obligations | 168 | 190 | |||||||||||
Total debt | 12,769 | 11,885 | |||||||||||
Less current portion | (18 | ) | (18 | ) | |||||||||
Total noncurrent portion of debt | $ | 12,751 | $ | 11,867 | |||||||||
Scheduled Maturities of Debt | ' | ||||||||||||
Our scheduled maturities of debt at face value for each of the next five fiscal years and thereafter, excluding capital leases, outstanding at September 30, 2014 are as follows: | |||||||||||||
Maturities of Debt Excluding Capital Leases | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | After 5 | |||||||
(in millions) | Years | ||||||||||||
Debt | $898 | $918 | $900 | $1,000 | $950 | $8,402 | |||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Change in Benefit Obligation Rollforward | ' | |||||||||||||||||||||||
The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plans utilizing a measurement date as of September 30, 2014 and 2013, respectively: | ||||||||||||||||||||||||
Change in Benefit Obligation | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Benefit obligation, beginning of period | $ | 893 | $ | 1,139 | ||||||||||||||||||||
Service cost | — | 8 | ||||||||||||||||||||||
Interest cost | 46 | 43 | ||||||||||||||||||||||
Actuarial loss/ (gain) | 159 | (203 | ) | |||||||||||||||||||||
Curtailment gain | — | (65 | ) | |||||||||||||||||||||
Benefits paid | (38 | ) | (29 | ) | ||||||||||||||||||||
Benefit obligation, end of period | $ | 1,060 | $ | 893 | ||||||||||||||||||||
Change in Plan Assets | ' | |||||||||||||||||||||||
Change in Plan Assets | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Fair value of plan assets, beginning of period | $ | 638 | $ | 576 | ||||||||||||||||||||
Actual return on plan assets | 46 | 85 | ||||||||||||||||||||||
Employer contributions | 10 | 6 | ||||||||||||||||||||||
Benefits paid | (38 | ) | (29 | ) | ||||||||||||||||||||
Fair value of plan assets, end of period | $ | 656 | $ | 638 | ||||||||||||||||||||
Funded Status | ' | |||||||||||||||||||||||
Funded status (in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Funded status* | $ | (404 | ) | $ | (255 | ) | ||||||||||||||||||
Accumulated Benefit Obligation | ' | |||||||||||||||||||||||
The accumulated benefit obligation includes no assumption about future compensation levels since our plans are frozen. Included in the change in benefit obligation table above are the following funded and unfunded plans with an accumulated benefit obligation equal to or in excess of plan assets at the end of the fiscal year. | ||||||||||||||||||||||||
Funded Plans | Unfunded Plans | Total Plans | ||||||||||||||||||||||
Accumulated Benefit Obligation | September 30, | September 30, | September 30, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accumulated benefit obligation | $ | 761 | $ | 641 | $ | 299 | $ | 252 | $ | 1,060 | $ | 893 | ||||||||||||
Fair value of plan assets | 656 | 638 | — | — | 656 | 638 | ||||||||||||||||||
Funded Status | $ | (105 | ) | $ | (3 | ) | $ | (299 | ) | $ | (252 | ) | $ | (404 | ) | $ | (255 | ) | ||||||
Net Periodic Benefit Costs | ' | |||||||||||||||||||||||
Our net periodic benefit cost under Viacom’s pension plans consists of the following: | ||||||||||||||||||||||||
Net Periodic Benefit Costs | Year Ended September 30, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Service cost | $ | — | $ | 8 | $ | 32 | ||||||||||||||||||
Interest cost | 46 | 43 | 47 | |||||||||||||||||||||
Expected return on plan assets | (50 | ) | (45 | ) | (37 | ) | ||||||||||||||||||
Recognized actuarial loss | 2 | 9 | 19 | |||||||||||||||||||||
Prior service cost | — | 1 | — | |||||||||||||||||||||
Net periodic benefit costs | $ | (2 | ) | $ | 16 | $ | 61 | |||||||||||||||||
Unrecognized Pension Cost | ' | |||||||||||||||||||||||
The items reflected in Accumulated other comprehensive loss in the Consolidated Balance Sheets and not yet recognized as a component of net periodic benefit cost are: | ||||||||||||||||||||||||
Unrecognized Benefit Cost | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrecognized actuarial loss | $ | 271 | $ | 110 | ||||||||||||||||||||
Amounts Recognized in Other Comprehensive Income | ' | |||||||||||||||||||||||
The amounts recognized in other comprehensive income during the year are: | ||||||||||||||||||||||||
Other Comprehensive Income | Year Ended | |||||||||||||||||||||||
(in millions) | September 30, | |||||||||||||||||||||||
Net actuarial loss | $ | 163 | ||||||||||||||||||||||
Recognized actuarial loss | (2 | ) | ||||||||||||||||||||||
Total pretax loss | $ | 161 | ||||||||||||||||||||||
Key Assumptions | ' | |||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
Key Assumptions | 2014 | 2013 | ||||||||||||||||||||||
Weighted-average assumptions - benefit obligations | ||||||||||||||||||||||||
Discount rate | 4.5 | % | 5.25 | % | ||||||||||||||||||||
Weighted-average assumptions - net periodic costs | ||||||||||||||||||||||||
Discount rate | 5.25 | % | 3.91 | % | ||||||||||||||||||||
Expected long-term return on plan assets | 8 | % | 8 | % | ||||||||||||||||||||
Rate of compensation increase* | N/A | 4 | % | |||||||||||||||||||||
* The rate of increase in compensation level assumption is not applicable due to the freeze of the pension plans. | ||||||||||||||||||||||||
Asset Allocations of Funded Pension Plan | ' | |||||||||||||||||||||||
The percentage of asset allocations of our funded pension plan at September 30, 2014 and 2013, by asset category were as follows: | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
Asset Allocations of Funded Pension Plan | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 65 | % | 71 | % | ||||||||||||||||||||
Debt securities | 30 | 29 | ||||||||||||||||||||||
Cash and Cash Equivalents | 5 | — | ||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||
Fair Value of Plan Assets at Period End | ' | |||||||||||||||||||||||
The following table sets forth the plan’s assets at fair value as of September 30, 2014 and 2013. For investments held at the end of the reporting period that are measured at fair value on a recurring basis, there were no transfers between levels from 2013 to 2014. The funded pension plan has no investments classified within level 3 of the valuation hierarchy. | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | ||||||||||||||||||||||
Fair Value of Plan Assets | September 30, | September 30, | September 30, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Cash and Cash Equivalents (1) | $ | 32 | $ | — | $ | 2 | $ | — | $ | 30 | $ | — | ||||||||||||
Equity Securities | ||||||||||||||||||||||||
Common and preferred stock | 48 | 22 | 48 | 22 | — | — | ||||||||||||||||||
U.S. large cap funds (2) | — | 201 | — | 201 | — | — | ||||||||||||||||||
U.S. small / mid cap funds (2) | — | 80 | — | 80 | — | — | ||||||||||||||||||
World ex-U.S. funds (2) | — | 148 | — | 148 | — | — | ||||||||||||||||||
World funds (3) | 304 | — | — | — | 304 | — | ||||||||||||||||||
Emerging markets funds (3) | 73 | — | — | — | 73 | — | ||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. treasury securities | 14 | — | — | — | 14 | — | ||||||||||||||||||
Municipal & government issued bonds | 1 | — | — | — | 1 | — | ||||||||||||||||||
Corporate bonds | 46 | — | — | — | 46 | — | ||||||||||||||||||
Mortgage-backed & asset-backed securities | 44 | — | — | — | 44 | — | ||||||||||||||||||
Emerging markets funds(2) | 27 | 26 | 27 | 26 | — | — | ||||||||||||||||||
High yield funds (2) | — | 52 | — | 52 | — | — | ||||||||||||||||||
Core fixed income funds (2) | — | 109 | — | 109 | — | — | ||||||||||||||||||
Multi-strategy funds (4) | 67 | — | — | — | 67 | — | ||||||||||||||||||
Total | $ | 656 | $ | 638 | $ | 77 | $ | 638 | $ | 579 | $ | — | ||||||||||||
(1) Assets categorized as Level 2 reflect investments in money market funds. | ||||||||||||||||||||||||
(2) Assets reflect mutual funds. | ||||||||||||||||||||||||
(3) Assets reflect common/collective trust funds. | ||||||||||||||||||||||||
(4) Reflects investments in common/collective trust funds and limited partnerships | ||||||||||||||||||||||||
Future Benefit Payments | ' | |||||||||||||||||||||||
The estimated future benefit payments for the next ten fiscal years are as follows: | ||||||||||||||||||||||||
Future Benefit Payments | ||||||||||||||||||||||||
(in millions) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||
Pension benefits | $36 | $39 | $42 | $45 | $48 | $275 | ||||||||||||||||||
Redeemable_NCI_Tables
Redeemable NCI (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ' | |||||||||||
Redeemable Noncontrolling Interest | ' | |||||||||||
The activity reflected within redeemable noncontrolling interest for the fiscal years 2014, 2013 and 2012 is presented below. | ||||||||||||
Redeemable Noncontrolling Interest | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 200 | $ | 179 | $ | 152 | ||||||
Net earnings | 20 | 14 | 16 | |||||||||
Distributions | (17 | ) | (13 | ) | (16 | ) | ||||||
Translation adjustment | 5 | (4 | ) | 7 | ||||||||
Redemption value adjustment | 8 | 24 | 20 | |||||||||
Ending balance | $ | 216 | $ | 200 | $ | 179 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Noncancelable Lease Commitments | ' | |||||||
At September 30, 2014, minimum rental payments under noncancelable leases by fiscal year are as follows: | ||||||||
Noncancelable Lease Commitments | Capital | Operating | ||||||
(in millions) | ||||||||
2015 | $ | 23 | $ | 247 | ||||
2016 | 25 | 228 | ||||||
2017 | 25 | 202 | ||||||
2018 | 25 | 173 | ||||||
2019 | 25 | 72 | ||||||
2020 and thereafter | 17 | 954 | ||||||
Total minimum payments | $ | 140 | $ | 1,876 | ||||
Amounts representing interest | (20 | ) | ||||||
Total | $ | 120 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule Of Accumulated Other Comprehensive Income Table | ' | |||||||||||
The components of Accumulated other comprehensive loss are as follows: | ||||||||||||
Accumulated Other Comprehensive Loss | September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Foreign currency translation adjustments | $ | (106 | ) | $ | (20 | ) | $ | 19 | ||||
Defined benefit pension plans | (186 | ) | (82 | ) | (272 | ) | ||||||
Cash flow hedges | (1 | ) | 1 | (8 | ) | |||||||
Available for sale securities | — | — | (3 | ) | ||||||||
Total | $ | (293 | ) | $ | (101 | ) | $ | (264 | ) | |||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Compensation Cost Recognized in Earnings Table | ' | ||||||||||||||||||||
Presented below is a summary of the compensation cost we recognized in the accompanying Consolidated Statements of Earnings: | |||||||||||||||||||||
Equity-Based Compensation Expense | Year Ended September 30, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Recognized in earnings: | |||||||||||||||||||||
Stock options | $ | 37 | $ | 42 | $ | 41 | |||||||||||||||
RSUs, PSUs and PRSUs | 85 | 86 | 81 | ||||||||||||||||||
Total compensation cost in earnings | $ | 122 | $ | 128 | $ | 122 | |||||||||||||||
Tax benefit recognized | $ | 40 | $ | 41 | $ | 39 | |||||||||||||||
Capitalized equity-based compensation expense | $ | 6 | $ | 6 | $ | 10 | |||||||||||||||
Weighted Average Fair Value of Awards and Assumptions Table | ' | ||||||||||||||||||||
Below are the weighted average fair value of awards granted in the periods presented and the weighted average of the applicable assumptions used to value stock options at grant date. | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
Key Assumptions | 2014 | 2013 | 2012 | ||||||||||||||||||
Weighted average fair value of grants | $ | 16.52 | $ | 13.02 | $ | 10.17 | |||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Expected stock price volatility | 25 | % | 25.7 | % | 30.7 | % | |||||||||||||||
Expected term of options (in years) | 4.6 | 4.7 | 5 | ||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.8 | % | 0.8 | % | |||||||||||||||
Expected dividend yield | 1.6 | % | 1.7 | % | 2.3 | % | |||||||||||||||
Stock Options Transactions Table | ' | ||||||||||||||||||||
The following table summarizes information about our stock option transactions: | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Stock Options | Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||
(number of options in thousands) | average | average | average | ||||||||||||||||||
exercise | exercise | exercise | |||||||||||||||||||
price | price | price | |||||||||||||||||||
Outstanding at the beginning of the period | 21,441.90 | $ | 42.85 | 29,269.50 | $ | 40.22 | 35,375.70 | $ | 40.91 | ||||||||||||
Granted | 2,040.70 | 84.46 | 2,363.30 | 69.56 | 3,110.00 | 47.37 | |||||||||||||||
Exercised | (4,233.2 | ) | 40.71 | (9,792.1 | ) | 41.23 | (6,398.8 | ) | 41.94 | ||||||||||||
Forfeited or expired | (190.9 | ) | 54.21 | (398.8 | ) | 47.61 | (2,817.4 | ) | 52.94 | ||||||||||||
Outstanding at the end of the period | 19,058.50 | $ | 47.67 | 21,441.90 | $ | 42.85 | 29,269.50 | $ | 40.22 | ||||||||||||
Exercisable at the end of the period | 12,656.10 | $ | 38.75 | 13,024.60 | $ | 37.43 | 19,004.60 | $ | 39.32 | ||||||||||||
Stock Option Exercises Table | ' | ||||||||||||||||||||
The following table summarizes information relating to stock option exercises during the periods presented: | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
Stock Option Exercises | 2014 | 2013 | 2012 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||
Proceeds from stock option exercises | $ | 173 | $ | 403 | $ | 268 | |||||||||||||||
Intrinsic value | $ | 182 | $ | 270 | $ | 51 | |||||||||||||||
Excess Tax benefit | $ | 53 | $ | 77 | $ | — | |||||||||||||||
Summary of activity related to RSUs PSUs and PRSUs | ' | ||||||||||||||||||||
The following table summarizes activity relating to our RSUs, PSUs and PRSUs: | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||
RSUs, PSUs and PRSUs | Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||
(number of shares in thousands) | of | average | of | average | of | average | |||||||||||||||
shares | grant date | shares | grant date | shares | grant date | ||||||||||||||||
fair | fair | fair | |||||||||||||||||||
value | value | value | |||||||||||||||||||
Unvested at the beginning of the period | 4,311.40 | $ | 53.54 | 5,721.50 | $ | 44.22 | 7,200.70 | $ | 38.58 | ||||||||||||
Granted* | 1,570.80 | 81.86 | 1,750.20 | 62.51 | 2,846.50 | 45.02 | |||||||||||||||
Vested | (2,593.8 | ) | 53.88 | (3,005.2 | ) | 41.49 | (4,028.4 | ) | 35.27 | ||||||||||||
Forfeited | (150.1 | ) | 55.2 | (155.1 | ) | 44.33 | (297.3 | ) | 36.62 | ||||||||||||
Unvested at the end of the period | 3,138.30 | $ | 67.35 | 4,311.40 | $ | 53.54 | 5,721.50 | $ | 44.22 | ||||||||||||
* Grant activity includes 0.2 million, 0.2 million and 0.3 million of performance-based share units at target for 2014, 2013 and 2012, respectively. |
Restructuring_Asset_Impairment1
Restructuring, Asset Impairment and Other Charges (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring, Asset Impairment and Other Charges | ' | ||||||||||||
The restructuring charges gave rise to certain future liabilities, the components of which are detailed below for 2014, 2013 and 2012. The payments during 2014 reflected in the table below are related to the 2013 restructuring plan. The remaining liability at September 30, 2014 relates predominantly to severance payments yet to be paid out with respect to the 2013 plan pursuant to the respective underlying contractual arrangements. We expect the balance of the severance will be paid in fiscal 2015. | |||||||||||||
Restructuring Liability | Media | Filmed Entertainment | Total | ||||||||||
(in millions) | Networks | ||||||||||||
September 30, 2011 | $ | 80 | $ | 44 | $ | 124 | |||||||
Severance payments | (39 | ) | (31 | ) | (70 | ) | |||||||
Lease payments | (3 | ) | (4 | ) | (7 | ) | |||||||
30-Sep-12 | 38 | 9 | 47 | ||||||||||
Additions | 61 | 25 | 86 | ||||||||||
Severance payments | (20 | ) | (7 | ) | (27 | ) | |||||||
Lease payments | (3 | ) | — | (3 | ) | ||||||||
30-Sep-13 | 76 | 27 | 103 | ||||||||||
Severance payments | (36 | ) | (16 | ) | (52 | ) | |||||||
Lease payments | (1 | ) | — | (1 | ) | ||||||||
Revisions to initial estimates | (9 | ) | — | (9 | ) | ||||||||
30-Sep-14 | $ | 30 | $ | 11 | $ | 41 | |||||||
Other_Items_Net_Tables
Other Items, Net (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Items, net | ' | |||||||||||
The items included in other items, net are as follows: | ||||||||||||
Other Items, net | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Gain on sale of HBO Pacific Partners and LAPTV | $ | — | $ | 111 | $ | — | ||||||
Other investment gains | — | 46 | — | |||||||||
Impairment of investment | — | (23 | ) | — | ||||||||
Foreign exchange loss | (14 | ) | (23 | ) | (8 | ) | ||||||
Other gains/(losses) | 3 | (5 | ) | 3 | ||||||||
Other items, net | $ | (11 | ) | $ | 106 | $ | (5 | ) | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Pre-tax Earnings from Continuing Operations | ' | |||||||||||
Earnings from continuing operations before provision for income taxes consist of the following: | ||||||||||||
Earnings from Continuing Operations before Provision for Income Taxes | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 2,924 | $ | 3,040 | $ | 2,984 | ||||||
International | 590 | 479 | 486 | |||||||||
Pre-tax earnings from continuing operations | $ | 3,514 | $ | 3,519 | $ | 3,470 | ||||||
Provision for Income Taxes from Continuing Operations | ' | |||||||||||
The provision for income taxes from continuing operations consists of the following: | ||||||||||||
Provision for Income Taxes from Continuing Operations | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current provision for income taxes: | ||||||||||||
Federal | $ | 1,049 | $ | 401 | $ | 872 | ||||||
State and local | 122 | 23 | 117 | |||||||||
International | 169 | 152 | 183 | |||||||||
Total current provision for income taxes | 1,340 | 576 | 1,172 | |||||||||
Deferred provision for income taxes | (290 | ) | 494 | (87 | ) | |||||||
Provision for income taxes | $ | 1,050 | $ | 1,070 | $ | 1,085 | ||||||
Effective Tax Rate | ' | |||||||||||
A reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate is as follows: | ||||||||||||
Year Ended September 30, | ||||||||||||
Effective Tax Rate | 2014 | 2013 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State and local taxes, net of federal benefit | 1.9 | 2.2 | 2.2 | |||||||||
Effect of international operations | (3.6 | ) | (2.6 | ) | (0.8 | ) | ||||||
Qualified production activities deduction | (3.2 | ) | (2.1 | ) | (3.0 | ) | ||||||
Change in valuation allowance | (0.3 | ) | (1.8 | ) | (1.4 | ) | ||||||
All other, net | 0.1 | (0.3 | ) | (0.7 | ) | |||||||
Effective tax rate, continuing operations | 29.9 | % | 30.4 | % | 31.3 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The tax effects of the items recorded as deferred tax assets and liabilities are: | ||||||||||||
Deferred Taxes | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Accrued liabilities | $ | 175 | $ | 199 | ||||||||
Postretirement and other employee benefits | 391 | 294 | ||||||||||
Tax credit and loss carryforwards | 356 | 274 | ||||||||||
All other | 213 | 188 | ||||||||||
Total deferred tax assets | 1,135 | 955 | ||||||||||
Valuation allowance | (308 | ) | (277 | ) | ||||||||
Total deferred tax assets, net | $ | 827 | $ | 678 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, equipment and intangible assets | $ | (498 | ) | $ | (436 | ) | ||||||
Unbilled revenue | (142 | ) | (133 | ) | ||||||||
Financing obligations | (121 | ) | (120 | ) | ||||||||
Film & TV production expenditures | (252 | ) | (535 | ) | ||||||||
Total deferred tax liabilities | (1,013 | ) | (1,224 | ) | ||||||||
Deferred taxes, net | $ | (186 | ) | $ | (546 | ) | ||||||
The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: | ||||||||||||
Deferred Tax Assets / (Liabilities) | September 30, | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Current deferred tax assets | $ | 8 | $ | 58 | ||||||||
Noncurrent deferred tax assets | 105 | 45 | ||||||||||
Current deferred tax liabilities | (33 | ) | — | |||||||||
Noncurrent deferred tax liabilities | (266 | ) | (649 | ) | ||||||||
Deferred taxes, net | $ | (186 | ) | $ | (546 | ) | ||||||
Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: | ||||||||||||
Unrecognized Tax Benefits | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of the period | $ | 159 | $ | 207 | $ | 212 | ||||||
Gross additions based on tax positions related to the current year | 25 | 29 | 28 | |||||||||
Gross additions for tax positions of prior years | 10 | 5 | 24 | |||||||||
Gross reductions for tax positions of prior years | (5 | ) | (50 | ) | (44 | ) | ||||||
Settlements | — | (25 | ) | (2 | ) | |||||||
Expiration of the statute of limitation | (4 | ) | (7 | ) | (11 | ) | ||||||
Balance at end of the period | $ | 185 | $ | 159 | $ | 207 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |||||||||||||||
Financial Asset (Liability) | ' | |||||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2013: | ||||||||||||||||
Financial Asset (Liability) | Total | Quoted Prices In | Significant Other | Significant | ||||||||||||
(in millions) | Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||
Identical Assets | Level 2 | Level 3 | ||||||||||||||
Level 1 | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Marketable securities | $ | 107 | $ | 107 | $ | — | $ | — | ||||||||
Derivatives | (8 | ) | — | (8 | ) | — | ||||||||||
Total | $ | 99 | $ | 107 | $ | (8 | ) | $ | — | |||||||
30-Sep-13 | ||||||||||||||||
Marketable securities | $ | 89 | $ | 89 | $ | — | $ | — | ||||||||
Derivatives | (2 | ) | — | (2 | ) | — | ||||||||||
Total | $ | 87 | $ | 89 | $ | (2 | ) | $ | — | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Common Shares Outstanding and Anti-dilutive common shares | ' | ||||||||
The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive shares: | |||||||||
Weighted Average Number of Common Shares Outstanding and | Year Ended September 30, | ||||||||
Anti-Dilutive Common Shares | |||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||
Weighted average number of common shares outstanding, basic | 432.1 | 486.2 | 530.7 | ||||||
Dilutive effect of equity awards | 8.1 | 8.6 | 6.8 | ||||||
Weighted average number of common shares outstanding, diluted | 440.2 | 494.8 | 537.5 | ||||||
Anti-dilutive common shares | 1.1 | 3.2 | 12.5 | ||||||
Supplemental_Cash_Flow_Tables
Supplemental Cash Flow (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
Supplemental Cash Flow Information (Tables) | ' | |||||||||||
Our supplemental cash flow information is as follows: | ||||||||||||
Supplemental Cash Flow Information | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Cash paid for interest* | $ | 568 | $ | 475 | $ | 409 | ||||||
Cash paid for income taxes | $ | 1,021 | $ | 463 | $ | 1,069 | ||||||
* Includes cash payments related to discontinued operations of $28 million and $3 million in 2013 and 2012, respectively. |
Reporting_Segments_Tables
Reporting Segments (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Revenues by Segment | ' | |||||||||||||||||||
Revenues by Segment | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 10,171 | $ | 9,656 | $ | 9,194 | ||||||||||||||
Filmed Entertainment | 3,725 | 4,282 | 4,820 | |||||||||||||||||
Eliminations | (113 | ) | (144 | ) | (127 | ) | ||||||||||||||
Total revenues | $ | 13,783 | $ | 13,794 | $ | 13,887 | ||||||||||||||
Adjusted Operating Income (Loss) | ' | |||||||||||||||||||
Adjusted Operating Income | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 4,271 | $ | 4,096 | $ | 3,889 | ||||||||||||||
Filmed Entertainment | 205 | 234 | 325 | |||||||||||||||||
Corporate expenses | (227 | ) | (251 | ) | (192 | ) | ||||||||||||||
Equity-based compensation | (122 | ) | (128 | ) | (122 | ) | ||||||||||||||
Eliminations | (2 | ) | (9 | ) | 1 | |||||||||||||||
Asset impairment | (43 | ) | (7 | ) | — | |||||||||||||||
Restructuring and other charges | — | (99 | ) | — | ||||||||||||||||
Operating income | 4,082 | 3,836 | 3,901 | |||||||||||||||||
Interest expense, net | (615 | ) | (464 | ) | (417 | ) | ||||||||||||||
Equity in net earnings of investee companies | 69 | 41 | 12 | |||||||||||||||||
Loss on extinguishment of debt | (11 | ) | — | (21 | ) | |||||||||||||||
Other items, net | (11 | ) | 106 | (5 | ) | |||||||||||||||
Earnings from continuing operations before provision for income taxes | $ | 3,514 | $ | 3,519 | $ | 3,470 | ||||||||||||||
Depreciation and Amortization Total Assets | ' | |||||||||||||||||||
Depreciation and Amortization | Total Assets | |||||||||||||||||||
Depreciation and Amortization and Total Assets | Year Ended September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
Media Networks | $ | 148 | $ | 144 | $ | 144 | $ | 17,647 | $ | 16,653 | ||||||||||
Filmed Entertainment | 64 | 89 | 87 | 5,440 | 5,647 | |||||||||||||||
Corporate/Eliminations | 5 | 4 | 5 | 30 | 1,529 | |||||||||||||||
Total | $ | 217 | $ | 237 | $ | 236 | $ | 23,117 | $ | 23,829 | ||||||||||
Capital Expenditure | ' | |||||||||||||||||||
Capital Expenditures | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Media Networks | $ | 85 | $ | 103 | $ | 101 | ||||||||||||||
Filmed Entertainment | 34 | 53 | 46 | |||||||||||||||||
Corporate | 4 | 4 | 7 | |||||||||||||||||
Total capital expenditures | $ | 123 | $ | 160 | $ | 154 | ||||||||||||||
Revenues by Component | ' | |||||||||||||||||||
Revenues by Component | Year Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Advertising | $ | 4,953 | $ | 4,855 | $ | 4,756 | ||||||||||||||
Feature film | 3,173 | 3,742 | 4,366 | |||||||||||||||||
Affiliate fees | 4,660 | 4,245 | 3,889 | |||||||||||||||||
Ancillary | 1,110 | 1,096 | 1,003 | |||||||||||||||||
Eliminations | (113 | ) | (144 | ) | (127 | ) | ||||||||||||||
Total revenues | $ | 13,783 | $ | 13,794 | $ | 13,887 | ||||||||||||||
Schedule of Revenue and Long LIved Assets Attributed to Foreign Countries by Geographical Area | ' | |||||||||||||||||||
Revenues* | Long-lived Assets** | |||||||||||||||||||
Geographic Information | Year Ended September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||
United States | $ | 10,252 | $ | 10,152 | $ | 9,804 | $ | 5,018 | $ | 4,982 | ||||||||||
EMEA | 2,046 | 2,173 | 2,423 | 406 | 418 | |||||||||||||||
All other | 1,485 | 1,469 | 1,660 | 110 | 75 | |||||||||||||||
Total | $ | 13,783 | $ | 13,794 | $ | 13,887 | $ | 5,534 | $ | 5,475 | ||||||||||
*Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. | ||||||||||||||||||||
**Reflects total assets less current assets, deferred tax assets, goodwill, intangibles and investments. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Related Parties Transactions (Tables) | ' | |||||||||||
The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements: | ||||||||||||
CBS Related Party Transactions | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Consolidated Statements of Earnings | ||||||||||||
Revenues | $ | 213 | $ | 264 | $ | 285 | ||||||
Operating expenses | $ | 296 | $ | 327 | $ | 347 | ||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Consolidated Balance Sheets | ||||||||||||
Accounts receivable | $ | 5 | $ | 5 | ||||||||
Accounts payable | $ | 2 | $ | 3 | ||||||||
Participants' share and residuals, current | 100 | 115 | ||||||||||
Program obligations, current | 87 | 99 | ||||||||||
Program obligations, noncurrent | 104 | 139 | ||||||||||
Other liabilities | 9 | 15 | ||||||||||
Total due to CBS | $ | 302 | $ | 371 | ||||||||
These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows: | ||||||||||||
Other Related Party Transactions | Year Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Consolidated Statements of Earnings | ||||||||||||
Revenues | $ | 196 | $ | 216 | $ | 309 | ||||||
Operating expenses | $ | 71 | $ | 63 | $ | 120 | ||||||
Selling, general and administrative | $ | (14 | ) | $ | (17 | ) | $ | (16 | ) | |||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Consolidated Balance Sheets | ||||||||||||
Accounts receivable | $ | 84 | $ | 84 | ||||||||
Other assets | 1 | 1 | ||||||||||
Total due from other related parties | $ | 85 | $ | 85 | ||||||||
Accounts payable | $ | 2 | $ | 4 | ||||||||
Other liabilities | 37 | 26 | ||||||||||
Total due to other related parties | $ | 39 | $ | 30 | ||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data Unaudited (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||||
2014 | First | Second | Third | Fourth | Year Ended | |||||||||||||||
(in millions, except per share information) | September 30, 2014 | |||||||||||||||||||
Revenues | $ | 3,197 | $ | 3,174 | $ | 3,421 | $ | 3,991 | $ | 13,783 | ||||||||||
Operating income | $ | 960 | $ | 872 | $ | 1,086 | $ | 1,164 | $ | 4,082 | ||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ | 557 | $ | 511 | $ | 654 | $ | 742 | $ | 2,464 | ||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 557 | $ | 511 | $ | 653 | $ | 742 | $ | 2,463 | ||||||||||
Net earnings from continuing operations attributable to Viacom | $ | 547 | $ | 502 | $ | 611 | $ | 732 | $ | 2,392 | ||||||||||
Net earnings attributable to Viacom | $ | 547 | $ | 502 | $ | 610 | $ | 732 | $ | 2,391 | ||||||||||
Basic net earnings per share, continuing operations attributable to Viacom | $ | 1.23 | $ | 1.15 | $ | 1.43 | $ | 1.74 | $ | 5.54 | ||||||||||
Basic net earnings per share attributable to Viacom | $ | 1.23 | $ | 1.15 | $ | 1.43 | $ | 1.74 | $ | 5.53 | ||||||||||
Diluted net earnings per share, continuing operations attributable to Viacom | $ | 1.2 | $ | 1.13 | $ | 1.4 | $ | 1.72 | $ | 5.43 | ||||||||||
Diluted net earnings per share attributable to Viacom | $ | 1.2 | $ | 1.13 | $ | 1.4 | $ | 1.72 | $ | 5.43 | ||||||||||
2013 | First | Second | Third | Fourth | Year Ended | |||||||||||||||
(in millions, except per share information) | September 30, 2013 | |||||||||||||||||||
Revenues | $ | 3,314 | $ | 3,135 | $ | 3,693 | $ | 3,652 | $ | 13,794 | ||||||||||
Operating income | $ | 797 | $ | 847 | $ | 1,085 | $ | 1,107 | $ | 3,836 | ||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ | 482 | $ | 489 | $ | 666 | $ | 812 | $ | 2,449 | ||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 479 | $ | 486 | $ | 662 | $ | 810 | $ | 2,437 | ||||||||||
Net earnings from continuing operations attributable to Viacom | $ | 473 | $ | 481 | $ | 647 | $ | 806 | $ | 2,407 | ||||||||||
Net earnings attributable to Viacom | $ | 470 | $ | 478 | $ | 643 | $ | 804 | $ | 2,395 | ||||||||||
Basic net earnings per share, continuing operations attributable to Viacom | $ | 0.94 | $ | 0.98 | $ | 1.34 | $ | 1.72 | $ | 4.95 | ||||||||||
Basic net earnings per share attributable to Viacom | $ | 0.94 | $ | 0.97 | $ | 1.33 | $ | 1.72 | $ | 4.93 | ||||||||||
Diluted net earnings per share, continuing operations attributable to Viacom | $ | 0.93 | $ | 0.96 | $ | 1.32 | $ | 1.69 | $ | 4.86 | ||||||||||
Diluted net earnings per share attributable to Viacom | $ | 0.92 | $ | 0.96 | $ | 1.31 | $ | 1.68 | $ | 4.84 | ||||||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Details) | 12 Months Ended |
Sep. 30, 2014 | |
segment | |
country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of Countries in which Entity Operates | 165 |
Number of Operating Segments | 2 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Percentage of acquired business recorded at fair value | 100.00% | ' | ' |
Reserve for sales returns and allowances | $199 | $261 | ' |
Allowance for doubtful accounts | 30 | 33 | ' |
Advertising expense incurred by the Company | $1,020 | $1,117 | $1,205 |
Estimated number of years film inventory earned | '10 years | ' | ' |
Estimate in years of ultimate revenue of acquired film library | '20 years | ' | ' |
Number of years film development costs expensed | '3 years | ' | ' |
Finite-lived intangible asset useful life | '20 years | ' | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Noncurrent trade receivables | $482 | $379 |
Acquisition_and_Investments_Pu
Acquisition and Investments - Purchase Price Allocation (Details) (Channel 5 broadcasting Limited, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Sep. 10, 2014 | Sep. 10, 2014 |
Channel 5 broadcasting Limited | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Inventory, net | ' | $161 |
Other current assets | ' | 102 |
Goodwill | ' | 474 |
Intangibles, net | ' | 211 |
Other assets | ' | 69 |
Total assets acquired | ' | 1,017 |
Program obligations and other current liabilities | ' | 106 |
Program obligations | ' | 64 |
Other liabilities | ' | 100 |
Total liabilities assumed | ' | 270 |
Total purchase price allocation | $747 | ' |
Acquisition_and_Investments_De
Acquisition and Investments (Details) | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 10, 2014 | Sep. 10, 2014 | Sep. 10, 2014 | Sep. 10, 2014 | |
USD ($) | USD ($) | EPIX | Viacom 18 | Viacom 18 | Channel 5 broadcasting Limited | Channel 5 broadcasting Limited | Channel 5 broadcasting Limited | Channel 5 broadcasting Limited | |
USD ($) | USD ($) | GBP (£) | Licensing Agreements | Trade Names | Trade Names | ||||
Minimum | Maximum | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire businesses | ' | ' | ' | ' | ' | £ 450,000,000 | ' | ' | ' |
Finite-lived intangible asset useful life | '20 years | ' | ' | ' | ' | ' | '20 years | '4 years | '20 years |
Value of equity method investments | 207,000,000 | 164,000,000 | ' | ' | ' | ' | ' | ' | ' |
Equity interest in investees | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' |
Value of cost investments | 81,000,000 | 61,000,000 | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated VIE asset carrying value | ' | ' | ' | 68,000,000 | 54,000,000 | ' | ' | ' | ' |
Viacom 18 Bank debt guarantee | ' | ' | ' | 86,000,000 | ' | ' | ' | ' | ' |
Consolidated VIE assets | 138,000,000 | 77,000,000 | ' | ' | ' | ' | ' | ' | ' |
Consolidated VIE liabilities | $54,000,000 | $56,000,000 | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | $2,801 | $2,729 | ' |
Less: Accumulated depreciation | -1,785 | -1,689 | ' |
Property and equipment, net | 1,016 | 1,040 | ' |
Depreciation expense | 177 | 174 | 171 |
Amortization of capital leases | 21 | 21 | 25 |
Accumulated amortization of capital leases | 156 | 148 | ' |
Land | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 248 | 248 | ' |
Buildings | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 435 | 431 | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Capital leases | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 266 | 277 | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Equipment and other | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | $1,852 | $1,773 | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Inventory_Details
Inventory (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Film inventory: | ' | ' |
Released, net of amortization | $664,000,000 | $570,000,000 |
Completed, not yet released | 131,000,000 | 40,000,000 |
In process and other | 436,000,000 | 653,000,000 |
Original programming: | ' | ' |
Released, net of amortization | 1,409,000,000 | 1,343,000,000 |
In process and other | 631,000,000 | 590,000,000 |
Acquired program rights, net of amortization | 1,367,000,000 | 1,391,000,000 |
Home entertainment inventory | 105,000,000 | 128,000,000 |
Total inventory, net | 4,743,000,000 | 4,715,000,000 |
Less current portion | -846,000,000 | -770,000,000 |
Total inventory-noncurrent, net | 3,897,000,000 | 3,945,000,000 |
Amount of OP and FI expected to be amortized in following fiscal year | 1,400,000,000 | ' |
Percentage of amortization of unamortized released OP and FI within 3 years | 87.00% | ' |
Unamortized inventory in years | '3 years | ' |
Amount of unamortized film libraries at year-end | 39,000,000 | ' |
Unamortized film library inventory in years | '2 years | ' |
Film Inventory | ' | ' |
Film inventory: | ' | ' |
Total inventory, net of amortization | 1,231,000,000 | 1,263,000,000 |
Original Programming | ' | ' |
Film inventory: | ' | ' |
Total inventory, net of amortization | $2,040,000,000 | $1,933,000,000 |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets - Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | $11,079 | $11,045 |
Acquisitions | 479 | 54 |
Dispositions | -5 | ' |
Foreign currency translation | -18 | -20 |
Ending balance | 11,535 | 11,079 |
Media Networks | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | 9,486 | 9,452 |
Acquisitions | 479 | 54 |
Dispositions | -5 | ' |
Foreign currency translation | -18 | -20 |
Ending balance | 9,942 | 9,486 |
Filmed Entertainment | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | 1,593 | 1,593 |
Acquisitions | 0 | 0 |
Dispositions | 0 | ' |
Foreign currency translation | 0 | 0 |
Ending balance | $1,593 | $1,593 |
Goodwill_and_Intangibles_Intan
Goodwill and Intangibles - Intangibles (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite lived intangible assets - gross | $541 | $776 |
Finite lived intangible assets - accumulated amortization | -197 | -552 |
Finite lived intangible assets, net | 344 | 224 |
Trademarks and other, indefinite lived | 55 | 55 |
Total intangibles, net | 399 | 279 |
Subscriber agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite lived intangible assets - gross | 57 | 58 |
Finite lived intangible assets - accumulated amortization | -38 | -35 |
Film distribution and fulfillment services | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite lived intangible assets - gross | 0 | 280 |
Finite lived intangible assets - accumulated amortization | 0 | -268 |
Trade names, licenses and other intangible assets | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite lived intangible assets - gross | 484 | 438 |
Finite lived intangible assets - accumulated amortization | ($159) | ($249) |
Goodwill_and_Intangibles_Amort
Goodwill and Intangibles -Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $40 | $63 | $63 |
2015 | 33 | ' | ' |
2016 | 31 | ' | ' |
2017 | 30 | ' | ' |
2018 | 27 | ' | ' |
2019 | $24 | ' | ' |
Debt_Details
Debt (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Sep. 30, 2014 | |
Revolving Credit Agreement | Bank Credit Facilities | Bank Credit Facilities | Senior notes due April 2019, 2.200% | Senior notes due April 2019, 2.200% | Senior notes due April 2024, 3.875% | Senior notes due April 2024, 3.875% | Senior debentures due April 2044, 5.250% | Senior debentures due April 2044, 5.250% | Senior notes due September 2014, 4.375% | Senior notes due September 2014, 4.375% | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Credit Facility Capacity | ' | ' | ' | ' | $2,500,000,000 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of senior notes | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coupon rate | ' | ' | ' | ' | ' | ' | ' | 2.20% | 2.20% | 3.88% | 3.88% | 5.25% | 5.25% | ' | 4.38% |
Principal amount of senior notes | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | 550,000,000 | ' | 550,000,000 | ' | ' |
Rate of Carrying value of Debt | ' | ' | ' | ' | ' | ' | ' | ' | 99.95% | ' | 99.19% | ' | 99.83% | ' | ' |
Net cash proceeds from offerings | 1,484,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior debt repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 611,000,000 | ' |
Debt Instrument, Increase, Accrued Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Loss on extinguishment of debt | ' | 11,000,000 | 0 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' |
Unamortized net discount related to senior notes and debentures | ' | 419,000,000 | 425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of Company's senior notes and debentures | ' | 13,700,000,000 | 12,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility margin rate minimum | ' | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility margin rate maximum | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage credit facility | ' | '3.0x | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper - amount outstanding | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Interest Coverage Ratio | ' | 'The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met at September 30, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Debt_Schedule_Details
Debt - Debt Schedule (Details) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Capital lease and other obligations | $168 | ' | $190 |
Total debt | 12,769 | ' | 11,885 |
Less current portion | -18 | ' | -18 |
Total noncurrent portion of debt | 12,751 | ' | 11,867 |
Senior notes due September 2014, 4.375% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 0 | ' | 599 |
Coupon rate | 4.38% | ' | ' |
Senior notes due February 2015, 1.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 600 | ' | 600 |
Coupon rate | 1.25% | ' | ' |
Senior notes due September 2015, 4.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 250 | ' | 250 |
Coupon rate | 4.25% | ' | ' |
Senior notes due April 2016, 6.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 917 | ' | 917 |
Coupon rate | 6.25% | ' | ' |
Senior notes due December 2016, 2.500% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 399 | ' | 398 |
Coupon rate | 2.50% | ' | ' |
Senior notes due April 2017, 3.500% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 498 | ' | 497 |
Coupon rate | 3.50% | ' | ' |
Senior notes due October 2017, 6.125% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 499 | ' | 499 |
Coupon rate | 6.13% | ' | ' |
Senior notes due September 2018, 2.500% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 498 | ' | 497 |
Coupon rate | 2.50% | ' | ' |
Senior notes due April 2019, 2.200% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 400 | ' | 0 |
Coupon rate | 2.20% | 2.20% | ' |
Senior notes due September 2019, 5.625% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 552 | ' | 552 |
Coupon rate | 5.63% | ' | ' |
Senior notes due March 2021, 4.500% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 495 | ' | 494 |
Coupon rate | 4.50% | ' | ' |
Senior notes due December 2021, 3.875% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 593 | ' | 592 |
Coupon rate | 3.88% | ' | ' |
Senior notes due June 2022, 3.125% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 296 | ' | 296 |
Coupon rate | 3.13% | ' | ' |
Senior notes due March 2023, 3.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 298 | ' | 298 |
Coupon rate | 3.25% | ' | ' |
Senior notes due September 2023, 4.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 1,238 | ' | 1,237 |
Coupon rate | 4.25% | ' | ' |
Senior notes due April 2024, 3.875% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 546 | ' | 0 |
Coupon rate | 3.88% | 3.88% | ' |
Senior debentures due April 2036, 6.875% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 1,072 | ' | 1,072 |
Coupon rate | 6.88% | ' | ' |
Senior debentures due October 2037, 6.750% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 76 | ' | 76 |
Coupon rate | 6.75% | ' | ' |
Senior debentures due February 2042, 4.500% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 245 | ' | 245 |
Coupon rate | 4.50% | ' | ' |
Senior debentures due March 2043, 4.375% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 1,089 | ' | 1,085 |
Coupon rate | 4.38% | ' | ' |
Senior debentures due June 2043, 4.875% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 249 | ' | 249 |
Coupon rate | 4.88% | ' | ' |
Senior debentures due September 2043, 5.850% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | 1,242 | ' | 1,242 |
Coupon rate | 5.85% | ' | ' |
Senior debentures due April 2044, 5.250% | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior notes and debentures | $549 | ' | $0 |
Coupon rate | 5.25% | 5.25% | ' |
Debt_Maturities_of_Debt_Exclud
Debt - Maturities of Debt Excluding Capital Leases (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Year 1 | $898 |
Year 2 | 918 |
Year 3 | 900 |
Year 4 | 1,000 |
Year 5 | 950 |
After 5 Years | $8,402 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Viacom Class B Percentage Of Plan Assets Fair Values | 3.00% | ' | ' |
401K Matching Contribution | $47 | $42 | $23 |
Certified Zone Status | 'Green | ' | ' |
Funded Status of Multiemployer Plans | 'At least 80 percent | ' | ' |
Number Of Listings On Form 5500 | 2 | ' | ' |
Number Of Green Filed Zone Statuses | 2 | ' | ' |
Equity securities | ' | ' | ' |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Defined Benefit Plan, Minimum Range | 55.00% | ' | ' |
Defined Benefit Plan, maximum range | 75.00% | ' | ' |
Debt securities | ' | ' | ' |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Defined Benefit Plan, Minimum Range | 25.00% | ' | ' |
Defined Benefit Plan, maximum range | 40.00% | ' | ' |
Cash and Cash Equivalents | ' | ' | ' |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Defined Benefit Plan, Minimum Range | 0.00% | ' | ' |
Defined Benefit Plan, maximum range | 10.00% | ' | ' |
Multiemployer Pension Plans | ' | ' | ' |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Multiemployer Plan Period Contributions | 52 | 43 | 42 |
Non Pension Multiemployer Plans | ' | ' | ' |
Target Allocation - Defined Benefit Plan Asset Allocations | ' | ' | ' |
Multiemployer Plan Period Contributions | $74 | $69 | $70 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits - Change in Benefit Obligation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation, beginning of period | $893 | $1,139 | ' |
Service cost | 0 | 8 | 32 |
Interest cost | 46 | 43 | 47 |
Actuarial loss/ (gain) | 159 | -203 | ' |
Curtailment gain | 0 | -65 | ' |
Benefits paid | -38 | -29 | ' |
Benefit obligation, end of period | $1,060 | $893 | $1,139 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits - Change in Plan Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets, beginning of period | $638 | $576 |
Actual return on plan assets | 46 | 85 |
Employer contributions | 10 | 6 |
Benefits paid | -38 | -29 |
Fair value of plan assets, end of period | $656 | $638 |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefits - Funded Status (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Funded status | ($404) | ($255) |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefits - Accumulated Benefit Obligation (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | $1,060 | $893 |
Fair value of plan assets | 656 | 638 |
Funded Status | -404 | -255 |
Funded Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | 761 | 641 |
Fair value of plan assets | 656 | 638 |
Funded Status | -105 | -3 |
Unfunded Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | 299 | 252 |
Fair value of plan assets | 0 | 0 |
Funded Status | ($299) | ($252) |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Service cost | $0 | $8 | $32 |
Interest cost | 46 | 43 | 47 |
Expected return on plan assets | -50 | -45 | -37 |
Recognized actuarial loss | 2 | 9 | 19 |
Prior service cost | 0 | 1 | 0 |
Net periodic benefit costs | ($2) | $16 | $61 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefits - Unrecognized Benefit Cost (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Unrecognized actuarial loss | $271 | $110 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefits - Other Comprehensive Income (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ' |
Net actuarial loss | $163 |
Recognized actuarial loss | -2 |
Total pretax loss | $161 |
Recovered_Sheet1
Pension and Other Postretirement Benefits - Key Assumptions (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Weighted-average assumptions - benefit obligations | ' | ' |
Discount rate | 4.50% | 5.25% |
Weighted-average assumptions - net periodic costs | ' | ' |
Discount rate | 5.25% | 3.91% |
Expected long-term return on plan assets | 8.00% | 8.00% |
Rate of compensation increase | ' | 4.00% |
Recovered_Sheet2
Pension and Other Postretirement Benefits - Asset Allocations of Funded Pension Plan (Details) | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Asset Allocation Weighted Average | 100.00% | 100.00% |
Equity securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Asset Allocation Weighted Average | 65.00% | 71.00% |
Debt securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Asset Allocation Weighted Average | 30.00% | 29.00% |
Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Asset Allocation Weighted Average | 5.00% | 0.00% |
Recovered_Sheet3
Pension and Other Postretirement Benefits - Fair Value of Plan Assets (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Cash And Cash Equivalents | $32 | $0 |
Common and preferred stock | 48 | 22 |
US Large Cap | 0 | 201 |
US Small Mid Cap | 0 | 80 |
World Ex US | 0 | 148 |
World funds | 304 | 0 |
Emerging markets funds | 73 | 0 |
U.S. treasury securities | 14 | 0 |
Municipal & government issued bonds | 1 | 0 |
Corporate bonds | 46 | 0 |
Mortgage-backed & asset-backed securities | 44 | 0 |
Emerging market funds | 27 | 26 |
High yield funds | 0 | 52 |
Core fixed income funds | 0 | 109 |
Multi strategy funds | 67 | 0 |
Total | 656 | 638 |
Level 1 | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Cash And Cash Equivalents | 2 | 0 |
Common and preferred stock | 48 | 22 |
US Large Cap | 0 | 201 |
US Small Mid Cap | 0 | 80 |
World Ex US | 0 | 148 |
World funds | 0 | 0 |
Emerging markets funds | 0 | 0 |
U.S. treasury securities | 0 | 0 |
Municipal & government issued bonds | 0 | 0 |
Corporate bonds | 0 | 0 |
Mortgage-backed & asset-backed securities | 0 | 0 |
Emerging market funds | 27 | 26 |
High yield funds | 0 | 52 |
Core fixed income funds | 0 | 109 |
Multi strategy funds | 0 | 0 |
Total | 77 | 638 |
Level 2 | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Cash And Cash Equivalents | 30 | 0 |
Common and preferred stock | 0 | 0 |
US Large Cap | 0 | 0 |
US Small Mid Cap | 0 | 0 |
World Ex US | 0 | 0 |
World funds | 304 | 0 |
Emerging markets funds | 73 | 0 |
U.S. treasury securities | 14 | 0 |
Municipal & government issued bonds | 1 | 0 |
Corporate bonds | 46 | 0 |
Mortgage-backed & asset-backed securities | 44 | 0 |
Emerging market funds | 0 | 0 |
High yield funds | 0 | 0 |
Core fixed income funds | 0 | 0 |
Multi strategy funds | 67 | 0 |
Total | $579 | $0 |
Recovered_Sheet4
Pension and Other Postretirement Benefits - Future Benefit Payments (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | ' |
2015 | $36 |
2016 | 39 |
2017 | 42 |
2018 | 45 |
2019 | 48 |
2020 - 2024 | $275 |
Redeemable_NCI_Details
Redeemable NCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' | ' |
Beginning balance | $200 | $179 | $152 |
Net earnings | 20 | 14 | 16 |
Distributions | -17 | -13 | -16 |
Translation adjustment | 5 | -4 | 7 |
Redemption value adjustment | 8 | 24 | 20 |
Ending balance | $216 | $200 | $179 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Minimum Rental Payments (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
2015 | $247 |
2016 | 228 |
2017 | 202 |
2018 | 173 |
2019 | 72 |
2020 and thereafter | 954 |
Total minimum payments | 1,876 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
2015 | 23 |
2016 | 25 |
2017 | 25 |
2018 | 25 |
2019 | 25 |
2020 and thereafter | 17 |
Total minimum payments | 140 |
Amounts representing interest | -20 |
Total | $120 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Commitments [Line Items] | ' | ' | ' |
Programming and talent commitments not recorded on balance sheet | $1,177 | ' | ' |
Programming commitments recorded on balance sheet | 1,162 | ' | ' |
Future minimum sublease income | 37 | ' | ' |
Rent expense | 227 | 205 | 201 |
Period end lease indemnifications | 381 | ' | ' |
Recorded liability for lease indemnifications | 192 | ' | ' |
Outstanding letters of credit | 36 | ' | ' |
Total programming and talent commitments | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming and talent commitments not recorded on balance sheet | 1,873 | ' | ' |
Media Networks Programming Commitments | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming and talent commitments not recorded on balance sheet | 1,600 | ' | ' |
Talent Contracts Commitments | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming and talent commitments not recorded on balance sheet | 273 | ' | ' |
Fiscal Year One | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming commitments recorded on balance sheet | 703 | ' | ' |
Fiscal Year Two | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming commitments recorded on balance sheet | 283 | ' | ' |
Fiscal Year Three | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming commitments recorded on balance sheet | 119 | ' | ' |
Fiscal Year Four | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming commitments recorded on balance sheet | 48 | ' | ' |
Fiscal Year Five | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' |
Programming commitments recorded on balance sheet | $9 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Subsequent Event | Common Class A | Common Class A | Common Class B | Common Class B | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Authorized | ' | ' | ' | ' | 375,000,000 | 375,000,000 | 5,000,000,000 | 5,000,000,000 |
Minimum Class A Shares Needed For Conversion | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion shares | 1 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Shares Authorized | 25,000,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Par Or Stated Value Per Share | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Shares Outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' |
Open Market Shares Acquired During Period | 40,700,000 | 69,200,000 | 59,900,000 | 3,600,000 | ' | ' | ' | ' |
Open Market Dollar Value Of Shares Repurchased | $3,400,000,000 | $4,800,000,000 | $2,800,000,000 | $260,000,000 | ' | ' | ' | ' |
Stock repurchase program remaining capacity | ' | ' | ' | 6,240,000,000 | ' | ' | ' | ' |
Stock repurchase program authorized amount | $20,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Accumulate
Stockholders' Equity - Accumulated Other Comprehensive income (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Equity [Abstract] | ' | ' | ' |
Foreign currency translation adjustments | ($106) | ($20) | $19 |
Defined benefit pension plans | -186 | -82 | -272 |
Cash flow hedges | -1 | 1 | -8 |
Available for sale securities | 0 | 0 | -3 |
Total | ($293) | ($101) | ($264) |
Equity_Based_Compensation_Deta
Equity Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum Percentage of Target Award | 0.00% | ' | ' |
Maximum Percentage of Target Award | 300.00% | ' | ' |
Minimum Vested Percentage of Target Award | 75.00% | ' | ' |
Maximum Vested Percentage of Target Award | 125.00% | ' | ' |
Treasury Shares | 377 | 336.3 | ' |
Future equity awards authorized under LTMIP | 24 | ' | ' |
Stock Options [Abstract] | ' | ' | ' |
Weighted average remaining contractual life of stock options outstanding | '4 years | ' | ' |
Weighted average remaining contractual life of stock options exercisable | '3 years | ' | ' |
Aggregate intrinsic value of stock options outstanding | $573 | ' | ' |
Aggregate intrinsic value of stock options exercisable | 483 | ' | ' |
Unrecognized compensation costs related to unvested stock options | 65 | ' | ' |
Weighted average period of unrecognized compensation recognition related to unvested stock options | '3 years | ' | ' |
Other Equity Based Awards [Abstract] | ' | ' | ' |
Weighted average remaining contractual life of unvested RSUs, PSUs, and PRSUs | '1 year | ' | ' |
Aggregate intrinsic value of unvested RSUs, PSUs, and PRSUs | $241 | ' | ' |
Fair value of RSUs, PSUs, and PRSUs vested | 212 | 175 | 187 |
Unrecognized compensation costs related to RSUs, PSUs, and PRSUs | $135 | ' | ' |
Weighted average period of unrecognized compensation recognition related to RSUs, PSUs, and PRSUs | '3 years | ' | ' |
Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '4 years | ' | ' |
Employee Stock Option | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiration period | '8 years | ' | ' |
Employee Stock Option | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiration period | '10 years | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '4 years | ' | ' |
Performance Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Measurement period | '3 years | ' | ' |
Annual installments | 4 | ' | ' |
Director | Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '1 year | ' | ' |
EquityBased_Compensation_Compe
Equity-Based Compensation - Compensation Cost (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Recognized in earnings | $122 | $128 | $122 |
Tax benefit recognized | 40 | 41 | 39 |
Capitalized equity-based compensation expense | 6 | 6 | 10 |
Stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Recognized in earnings | 37 | 42 | 41 |
RSUs, PSUs and PRSUs | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Recognized in earnings | $85 | $86 | $81 |
EquityBased_Compensation_Stock
Equity-Based Compensation - Stock Options Key Assumptions (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Weighted average fair value of grants | $16.52 | $13.02 | $10.17 |
Weighted average assumptions: | ' | ' | ' |
Expected stock price volatility | 25.00% | 25.70% | 30.70% |
Expected term of options (in years) | '4 years 7 months 6 days | '4 years 8 months 12 days | '5 years |
Risk-free interest rate | 1.50% | 0.80% | 0.80% |
Expected dividend yield | 1.60% | 1.70% | 2.30% |
EquityBased_Compensation_Stock1
Equity-Based Compensation - Stock Options (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Options | ' | ' | ' |
Outstanding at the beginning of the period | 21,441,900 | 29,269,500 | 35,375,700 |
Granted | 2,040,700 | 2,363,300 | 3,110,000 |
Exercised | -4,233,200 | -9,792,100 | -6,398,800 |
Forfeited or expired | -190,900 | -398,800 | -2,817,400 |
Outstanding at the end of the period | 19,058,500 | 21,441,900 | 29,269,500 |
Exercisable at the end of the period | 12,656,100 | 13,024,600 | 19,004,600 |
Weighted average exercise price | ' | ' | ' |
Outstanding at the beginning of the period | $42.85 | $40.22 | $40.91 |
Granted | $84.46 | $69.56 | $47.37 |
Exercised | $40.71 | $41.23 | $41.94 |
Forfeited or expired | $54.21 | $47.61 | $52.94 |
Outstanding at the end of the period | $47.67 | $42.85 | $40.22 |
Exercisable at the end of the period | $38.75 | $37.43 | $39.32 |
EquityBased_Compensation_Stock2
Equity-Based Compensation - Stock Option Exercises (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Proceeds from stock option exercises | $173 | $403 | $268 |
Intrinsic value | 182 | 270 | 51 |
Excess Tax benefit | $53 | $77 | $0 |
EquityBased_Compensation_Equit
Equity-Based Compensation Equity-Based Compensation - Other Equity-Based Awards (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Number of shares | ' | ' | ' |
Unvested at the beginning of the period | 4,311,400 | 5,721,500 | 7,200,700 |
Granted | 1,570,800 | 1,750,200 | 2,846,500 |
Vested | -2,593,800 | -3,005,200 | -4,028,400 |
Forfeited | -150,100 | -155,100 | -297,300 |
Unvested at the end of the period | 3,138,300 | 4,311,400 | 5,721,500 |
Weighted average grant date fair value | ' | ' | ' |
Unvested at the beginning of the period | $53.54 | $44.22 | $38.58 |
Granted | $81.86 | $62.51 | $45.02 |
Vested | $53.88 | $41.49 | $35.27 |
Forfeited | $55.20 | $44.33 | $36.62 |
Unvested at the end of the period | $67.35 | $53.54 | $44.22 |
PRSUs Included In Grant Activity | 200,000 | 200,000 | 300,000 |
Restructuring_Asset_Impairment2
Restructuring, Asset Impairment and Other Charges - Reserve Rollforward (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Reserve Rollforward | ' | ' | ' |
Restructuring Reserve, Beginning Balance | $103 | $47 | $124 |
Additions | 0 | 86 | 0 |
Severance payments | -52 | -27 | -70 |
Lease payments | -1 | -3 | -7 |
Revisions to initial estimates | -9 | ' | ' |
Restructuring Reserve, Ending Balance | 41 | 103 | 47 |
Media Networks | ' | ' | ' |
Restructuring Reserve Rollforward | ' | ' | ' |
Restructuring Reserve, Beginning Balance | 76 | 38 | 80 |
Additions | ' | 61 | ' |
Severance payments | -36 | -20 | -39 |
Lease payments | -1 | -3 | -3 |
Revisions to initial estimates | -9 | ' | ' |
Restructuring Reserve, Ending Balance | 30 | 76 | 38 |
Filmed Entertainment | ' | ' | ' |
Restructuring Reserve Rollforward | ' | ' | ' |
Restructuring Reserve, Beginning Balance | 27 | 9 | 44 |
Additions | ' | 25 | ' |
Severance payments | -16 | -7 | -31 |
Lease payments | 0 | 0 | -4 |
Revisions to initial estimates | 0 | ' | ' |
Restructuring Reserve, Ending Balance | $11 | $27 | $9 |
Restructuring_Asset_Impairment3
Restructuring, Asset Impairment and Other Charges Restructuring, Asset Impairment and Other Charges (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Asset impairment | $43 | $7 | $0 |
Total segment charges | ' | 106 | ' |
Restructuring | 0 | 86 | 0 |
Media Networks | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Asset impairment | 43 | 7 | ' |
Restructuring | ' | 61 | ' |
Programming inventory | ' | 13 | ' |
Filmed Entertainment | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring | ' | $25 | ' |
Other_Items_Net_Details
Other Items, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Gain on sale of HBO Pacific Partners and LAPTV | ' | $0 | $111 | $0 |
Other investment gains | ' | 0 | 46 | 0 |
Impairment of investment | ' | 0 | -23 | 0 |
Foreign exchange loss | ' | -14 | -23 | -8 |
Other gains/(losses) | ' | 3 | -5 | 3 |
Other items, net | ' | -11 | 106 | -5 |
Proceeds from Sale of Equity Method Investments | $124 | ' | ' | ' |
LAPTV | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 22.50% | ' | 22.50% | ' |
HBO Pacific Partners | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 20.00% | ' | 20.00% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Recognized Net Discrete Tax Benefits | $49,000,000 | $54,000,000 | $94,000,000 |
Tax losses in various foreign jurisdictions | 386,000,000 | ' | ' |
Foreign Tax Losses With Unlimited Carryforward Periods | 661,000,000 | ' | ' |
Foreign Tax Losses With Limited Carryforward Periods | 86,000,000 | ' | ' |
Tax credit and loss carryforwards | 356,000,000 | 274,000,000 | ' |
Unremitted Earnings Of International Subsidiaries | 2,500,000,000 | ' | ' |
Undistributed earnings of foreign subsidiaries, incremental tax percentage,minimum | 10.00% | ' | ' |
Undistributed earnings of foreign subsidiaries, incremental tax percentage,maximum | 15.00% | ' | ' |
Interest and Penalties | 10,000,000 | 9,000,000 | 15,000,000 |
Interest and Penalties Accrual | 40,000,000 | 35,000,000 | ' |
Future Unrecognized tax benefits | $100,000,000 | ' | ' |
Income_Taxes_Earnings_from_Con
Income Taxes - Earnings from Continuing Operations before Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $2,924 | $3,040 | $2,984 |
International | 590 | 479 | 486 |
Earnings from continuing operations before provision for income taxes | $3,514 | $3,519 | $3,470 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes from Continuing Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current provision for income taxes: | ' | ' | ' |
Federal | $1,049 | $401 | $872 |
State and local | 122 | 23 | 117 |
International | 169 | 152 | 183 |
Total current provision for income taxes | 1,340 | 576 | 1,172 |
Deferred provision for income taxes | -290 | 494 | -87 |
Provision for income taxes | $1,050 | $1,070 | $1,085 |
Income_Taxes_Effective_Tax_Rat
Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal benefit | 1.90% | 2.20% | 2.20% |
Effect of international operations | -3.60% | -2.60% | -0.80% |
Qualified production activities deduction | -3.20% | -2.10% | -3.00% |
Change in valuation allowance | -0.30% | -1.80% | -1.40% |
All other, net | 0.10% | -0.30% | -0.70% |
Effective tax rate, continuing operations | 29.90% | 30.40% | 31.30% |
Income_Taxes_Deferred_Taxes_De
Income Taxes - Deferred Taxes (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued liabilities | $175 | $199 |
Postretirement and other employee benefits | 391 | 294 |
Tax credit and loss carryforwards | 356 | 274 |
All other | 213 | 188 |
Total deferred tax assets | 1,135 | 955 |
Valuation allowance | -308 | -277 |
Total deferred tax assets, net | 827 | 678 |
Deferred tax liabilities: | ' | ' |
Property, equipment and intangible assets | -498 | -436 |
Unbilled revenue | -142 | -133 |
Financing obligations | -121 | -120 |
Film & TV production expenditures | -252 | -535 |
Total deferred tax liabilities | -1,013 | -1,224 |
Deferred taxes, net | ($186) | ($546) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets/Liabilities (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred tax assets | $8 | $58 |
Noncurrent deferred tax assets | 105 | 45 |
Current deferred tax liabilities | -33 | 0 |
Deferred Tax Liabilities, Net, Noncurrent | -266 | -649 |
Deferred taxes, net | ($186) | ($546) |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of the period | $159 | $207 | $212 |
Gross additions based on tax positions related to the current year | 25 | 29 | 28 |
Gross additions for tax positions of prior years | 10 | 5 | 24 |
Gross reductions for tax positions of prior years | -5 | -50 | -44 |
Settlements | 0 | -25 | -2 |
Expiration of the statute of limitation | -4 | -7 | -11 |
Balance at end of the period | $185 | $159 | $207 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Net earnings losses from discontinued operations | $1 | $12 | $364 |
Adjustment amount to prior period gain loss on disposal | ' | ' | 383 |
Disposed Business | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Tax benefit on disposal | 250 | ' | ' |
Tax benefit not previously utilized | $103 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Financial Instruments [Line Items] | ' | ' | ' |
Marketable securities | $107 | $89 | ' |
Derivatives | -8 | -2 | ' |
Total | 99 | 87 | ' |
Derivative, Notional Amount | 628 | 196 | ' |
Asset impairment | 43 | 7 | 0 |
Expected Foreign Currency Net Cash Flows | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 154 | ' | ' |
Foreign Currency Balances In Foreign Operations | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 390 | 178 | ' |
Future Production Costs | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 84 | ' | ' |
Future Production Costs And Programming Obligations | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Derivative, Notional Amount | ' | 18 | ' |
Quoted Prices In Active Markets for Identical Assets Level 1 | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Marketable securities | 107 | 89 | ' |
Derivatives | 0 | 0 | ' |
Total | 107 | 89 | ' |
Significant Other Observable Inputs Level 2 | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Marketable securities | 0 | 0 | ' |
Derivatives | -8 | -2 | ' |
Total | -8 | -2 | ' |
Significant Unobservable Inputs Level 3 | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Marketable securities | 0 | 0 | ' |
Derivatives | 0 | 0 | ' |
Total | 0 | 0 | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | $28 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average number of common shares outstanding, basic | 432.1 | 486.2 | 530.7 |
Dilutive effect of equity awards | 8.1 | 8.6 | 6.8 |
Weighted average number of common shares outstanding, diluted | 440.2 | 494.8 | 537.5 |
Anti-dilutive common shares | 1.1 | 3.2 | 12.5 |
Supplemental_Cash_Flow_Details
Supplemental Cash Flow (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Cash paid for interest | $568 | $475 | $409 |
Cash paid for income taxes | 1,021 | 463 | 1,069 |
Cash payment for accrued interest | ' | $28 | $3 |
Reporting_Segments_Details
Reporting Segments (Details) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of Reportable Segments | 2 | ' | ' |
International | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage Of Total Consolidated Revenues | 26.00% | 26.00% | 29.00% |
United Kingdom And Germany | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage Of Total Consolidated Revenues | 45.00% | 45.00% | 45.00% |
Reporting_Segments_Revenues_by
Reporting Segments - Revenues by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $3,991 | $3,421 | $3,174 | $3,197 | $3,652 | $3,693 | $3,135 | $3,314 | $13,783 | $13,794 | $13,887 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | -113 | -144 | -127 |
Media Networks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,171 | 9,656 | 9,194 |
Filmed Entertainment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $3,725 | $4,282 | $4,820 |
Reporting_Segment_Adjusted_Ope
Reporting Segment - Adjusted Operating Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ($122) | ($128) | ($122) |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | -43 | -7 | 0 |
Restructuring and other charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -99 | 0 |
Operating income | 1,164 | 1,086 | 872 | 960 | 1,107 | 1,085 | 847 | 797 | 4,082 | 3,836 | 3,901 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -615 | -464 | -417 |
Equity in net earnings of investee companies | ' | ' | ' | ' | ' | ' | ' | ' | 69 | 41 | 12 |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | -11 | 0 | -21 |
Other items, net | ' | ' | ' | ' | ' | ' | ' | ' | -11 | 106 | -5 |
Earnings from continuing operations before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 3,514 | 3,519 | 3,470 |
Media Networks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted operating income by Segment | ' | ' | ' | ' | ' | ' | ' | ' | 4,271 | 4,096 | 3,889 |
Filmed Entertainment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted operating income by Segment | ' | ' | ' | ' | ' | ' | ' | ' | 205 | 234 | 325 |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -227 | -251 | -192 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ($2) | ($9) | $1 |
Reporting_Segments_Depreciatio
Reporting Segments - Depreciation and Amortization and Total Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | $217 | $237 | $236 |
Total assets | 23,117 | 23,829 | ' |
Media Networks | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 148 | 144 | 144 |
Total assets | 17,647 | 16,653 | ' |
Filmed Entertainment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 64 | 89 | 87 |
Total assets | 5,440 | 5,647 | ' |
Corporate expenses | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 5 | 4 | 5 |
Total assets | $30 | $1,529 | ' |
Reporting_Segments_Capital_Exp
Reporting Segments - Capital Expenditures (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | $123 | $160 | $154 |
Media Networks | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 85 | 103 | 101 |
Filmed Entertainment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 34 | 53 | 46 |
Corporate expenses | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | $4 | $4 | $7 |
Reporting_Segments_Revenues_by1
Reporting Segments - Revenues by Component (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising | ' | ' | ' | ' | ' | ' | ' | ' | $4,953 | $4,855 | $4,756 |
Feature film | ' | ' | ' | ' | ' | ' | ' | ' | 3,173 | 3,742 | 4,366 |
Affiliate fees | ' | ' | ' | ' | ' | ' | ' | ' | 4,660 | 4,245 | 3,889 |
Ancillary | ' | ' | ' | ' | ' | ' | ' | ' | 1,110 | 1,096 | 1,003 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | -113 | -144 | -127 |
Total revenues | $3,991 | $3,421 | $3,174 | $3,197 | $3,652 | $3,693 | $3,135 | $3,314 | $13,783 | $13,794 | $13,887 |
Reporting_Segments_Geographic_
Reporting Segments - Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $3,991 | $3,421 | $3,174 | $3,197 | $3,652 | $3,693 | $3,135 | $3,314 | $13,783 | $13,794 | $13,887 |
Long-Lived Assets | 5,534 | ' | ' | ' | 5,475 | ' | ' | ' | 5,534 | 5,475 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,252 | 10,152 | 9,804 |
Long-Lived Assets | 5,018 | ' | ' | ' | 4,982 | ' | ' | ' | 5,018 | 4,982 | ' |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,046 | 2,173 | 2,423 |
Long-Lived Assets | 406 | ' | ' | ' | 418 | ' | ' | ' | 406 | 418 | ' |
All other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,485 | 1,469 | 1,660 |
Long-Lived Assets | $110 | ' | ' | ' | $75 | ' | ' | ' | $110 | $75 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
NAI | ' | ' | ' |
Consolidated Statements of Earnings | ' | ' | ' |
Revenues | $15 | $19 | $19 |
CBS | ' | ' | ' |
Consolidated Statements of Earnings | ' | ' | ' |
Revenues | 213 | 264 | 285 |
Operating expenses | 296 | 327 | 347 |
Consolidated Balance Sheets | ' | ' | ' |
Accounts receivable | 5 | 5 | ' |
Accounts payable | 2 | 3 | ' |
Participants' share and residuals, current | 100 | 115 | ' |
Program obligations, current | 87 | 99 | ' |
Program obligations, noncurrent | 104 | 139 | ' |
Other liabilities | 9 | 15 | ' |
Total due to other related parties | 302 | 371 | ' |
Other Related Parties | ' | ' | ' |
Consolidated Statements of Earnings | ' | ' | ' |
Revenues | 196 | 216 | 309 |
Operating expenses | 71 | 63 | 120 |
Selling, general and administrative | -14 | -17 | -16 |
Consolidated Balance Sheets | ' | ' | ' |
Accounts receivable | 84 | 84 | ' |
Other assets | 1 | 1 | ' |
Total due from other related parties | 85 | 85 | ' |
Accounts payable | 2 | 4 | ' |
Other liabilities | 37 | 26 | ' |
Total due to other related parties | $39 | $30 | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data Unaudited (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $3,991 | $3,421 | $3,174 | $3,197 | $3,652 | $3,693 | $3,135 | $3,314 | $13,783 | $13,794 | $13,887 |
Operating income | 1,164 | 1,086 | 872 | 960 | 1,107 | 1,085 | 847 | 797 | 4,082 | 3,836 | 3,901 |
Net earnings from continuing operations (Viacom and noncontrolling interests) | 742 | 654 | 511 | 557 | 812 | 666 | 489 | 482 | 2,464 | 2,449 | 2,385 |
Net earnings (Viacom and noncontrolling interests) | 742 | 653 | 511 | 557 | 810 | 662 | 486 | 479 | 2,463 | 2,437 | 2,021 |
Net earnings from continuing operations | 732 | 611 | 502 | 547 | 806 | 647 | 481 | 473 | 2,392 | 2,407 | 2,345 |
Net earnings attributable to Viacom | $732 | $610 | $502 | $547 | $804 | $643 | $478 | $470 | $2,391 | $2,395 | $1,981 |
Basic net earnings per share, continuing operations attributable to Viacom (in usd per share) | $1.74 | $1.43 | $1.15 | $1.23 | $1.72 | $1.34 | $0.98 | $0.94 | $5.54 | $4.95 | $4.42 |
Basic net earnings per share attributable to Viacom (in usd per share) | $1.74 | $1.43 | $1.15 | $1.23 | $1.72 | $1.33 | $0.97 | $0.94 | $5.53 | $4.93 | $3.73 |
Diluted net earnings per share, continuing operations attributable to Viacom (in usd per share) | $1.72 | $1.40 | $1.13 | $1.20 | $1.69 | $1.32 | $0.96 | $0.93 | $5.43 | $4.86 | $4.36 |
Diluted net earnings per share attributable to Viacom (in usd per share) | $1.72 | $1.40 | $1.13 | $1.20 | $1.68 | $1.31 | $0.96 | $0.92 | $5.43 | $4.84 | $3.69 |
Schedule_ll_Details
Schedule ll (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for doubtful accounts | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Beginning of period | $33 | $36 | $49 |
Additions - expense and other | 2 | 8 | 6 |
Deductions | -5 | -11 | -19 |
End of period | 30 | 33 | 36 |
Sales returns and allowances | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Beginning of period | 261 | 282 | 309 |
Additions - expense and other | 468 | 503 | 595 |
Deductions | -530 | -524 | -622 |
End of period | 199 | 261 | 282 |
Deferred tax valuation allowance | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Beginning of period | 277 | 324 | 222 |
Additions - expense and other | 54 | 75 | 161 |
Deductions | -23 | -122 | -59 |
End of period | $308 | $277 | $324 |