Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 31, 2019 | Mar. 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-32686 | ||
Entity Registrant Name | VIACOM INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-3515052 | ||
Entity Address, Address Line One | 1515 Broadway | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10036 | ||
City Area Code | 212 | ||
Local Phone Number | 258-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | None. | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Central Index Key | 0001339947 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common stock, Class A | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | ||
Trading Symbol | VIA | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 324.1 | ||
Entity Common Stock, Shares Outstanding | 49,430,485 | ||
Common stock, Class B | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock, $0.001 par value | ||
Trading Symbol | VIAB | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 9,900 | ||
Entity Common Stock, Shares Outstanding | 353,976,998 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 12,838 | $ 12,943 | $ 13,263 |
Expenses: | |||
Operating | 6,838 | 6,879 | 7,436 |
Selling, general and administrative | 3,146 | 3,054 | 3,002 |
Depreciation and amortization | 215 | 213 | 223 |
Restructuring and Other Corporate Matters Expense | 177 | 225 | 237 |
Total expenses | 10,376 | 10,371 | 10,898 |
Gain on asset sale | 0 | 0 | 127 |
Operating income | 2,462 | 2,572 | 2,492 |
Interest expense, net | (489) | (560) | (618) |
Equity in net earnings of investee companies | 10 | 9 | 81 |
Gain on sale of EPIX | 0 | 0 | 285 |
Other items, net | 24 | (24) | (28) |
Earnings from continuing operations before provision for income taxes | 2,007 | 1,997 | 2,212 |
Provision for income taxes | (445) | (269) | (293) |
Net earnings from continuing operations | 1,562 | 1,728 | 1,919 |
Discontinued operations, net of tax | 26 | 31 | 3 |
Net earnings (Viacom and noncontrolling interests) | 1,588 | 1,759 | 1,922 |
Net earnings attributable to noncontrolling interests | (40) | (40) | (48) |
Net earnings attributable to Viacom | 1,548 | 1,719 | 1,874 |
Amounts attributable to Viacom: | |||
Net earnings from continuing operations | 1,522 | 1,688 | 1,871 |
Discontinued operations, net of tax | 26 | 31 | 3 |
Net earnings attributable to Viacom | $ 1,548 | $ 1,719 | $ 1,874 |
Basic earnings per share attributable to Viacom: | |||
Continuing operations (in usd per share) | $ 3.77 | $ 4.19 | $ 4.68 |
Discontinued operations (in usd per share) | 0.07 | 0.08 | 0.01 |
Net earnings (in usd per share) | 3.84 | 4.27 | 4.69 |
Diluted earnings per share attributable to Viacom: | |||
Continuing operations (in usd per share) | 3.77 | 4.19 | 4.67 |
Discontinued operations (in usd per share) | 0.06 | 0.08 | 0.01 |
Net earnings (in usd per share) | $ 3.83 | $ 4.27 | $ 4.68 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 403.4 | 402.7 | 399.9 |
Diluted (shares) | 403.8 | 403 | 400.6 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (Viacom and noncontrolling interests) | $ 1,588 | $ 1,759 | $ 1,922 |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustments | (108) | (166) | 29 |
Defined benefit pension plans | (178) | 40 | 37 |
Cash flow hedges | 3 | (1) | 7 |
Available-for-sale securities | 0 | 48 | 0 |
Other comprehensive income/(loss) (Viacom and noncontrolling interests) | (283) | (79) | 73 |
Comprehensive income | 1,305 | 1,680 | 1,995 |
Less: Comprehensive income attributable to noncontrolling interests | 39 | 37 | 47 |
Comprehensive income attributable to Viacom | $ 1,266 | $ 1,643 | $ 1,948 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 760 | $ 1,557 |
Receivables, net | 3,299 | 3,141 |
Inventory, net | 775 | 896 |
Prepaid and other assets | 460 | 482 |
Total current assets | 5,294 | 6,076 |
Property and equipment, net | 922 | 919 |
Inventory, net | 4,023 | 3,848 |
Goodwill | 11,857 | 11,609 |
Intangibles, net | 354 | 313 |
Other assets | 1,221 | 1,018 |
Total assets | 23,671 | 23,783 |
Current liabilities: | ||
Accounts payable | 482 | 433 |
Accrued expenses | 927 | 848 |
Participants' share and residuals | 740 | 719 |
Program obligations | 667 | 662 |
Deferred revenue | 438 | 398 |
Current portion of debt | 98 | 567 |
Other liabilities | 472 | 427 |
Total current liabilities | 3,824 | 4,054 |
Noncurrent portion of debt | 8,640 | 9,515 |
Participants' share and residuals | 492 | 523 |
Program obligations | 297 | 498 |
Deferred tax liabilities, net | 265 | 296 |
Other liabilities | 1,392 | 1,186 |
Redeemable noncontrolling interest | 241 | 246 |
Commitments and contingencies | ||
Viacom stockholders' equity: | ||
Additional paid-in capital | 10,181 | 10,145 |
Treasury stock, 392.5 and 393.1 common shares held in treasury, respectively | (20,541) | (20,562) |
Retained earnings | 19,887 | 18,561 |
Accumulated other comprehensive loss | (1,073) | (737) |
Total Viacom stockholders' equity | 8,454 | 7,407 |
Noncontrolling interests | 66 | 58 |
Total equity | 8,520 | 7,465 |
Total liabilities and equity | 23,671 | 23,783 |
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) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Treasury Shares | 392,500,000 | 393,100,000 |
Common stock, Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock Authorized | 375,000,000 | 375,000,000 |
Common stock, outstanding | 49,400,000 | 49,400,000 |
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 | 354,300,000 | 353,700,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES [Abstract] | |||
Net earnings (Viacom and noncontrolling interests) | $ 1,588 | $ 1,759 | $ 1,922 |
Discontinued operations, net of tax | (26) | (31) | (3) |
Net earnings from continuing operations (Viacom and noncontrolling interests) | 1,562 | 1,728 | 1,919 |
Reconciling items: | |||
Depreciation and amortization | 215 | 213 | 223 |
Feature film and program amortization | 4,539 | 4,785 | 4,739 |
Equity-based compensation | 64 | 57 | 68 |
Gain on marketable securities | (32) | 0 | 0 |
Gain on asset sales | 0 | (16) | (412) |
Deferred income taxes | 40 | (45) | (174) |
Operating assets and liabilities, net of acquisitions: | |||
Receivables | (196) | (250) | (132) |
Production and programming | (4,664) | (4,606) | (4,412) |
Accounts payable and other current liabilities | 120 | (45) | (207) |
Other, net | (72) | 1 | 93 |
Net cash provided by operating activities | 1,576 | 1,822 | 1,705 |
INVESTING ACTIVITIES | |||
Acquisitions and investments, net | (424) | (112) | (378) |
Capital expenditures | (194) | (178) | (195) |
Proceeds received from asset sales | 5 | 57 | 848 |
Grantor trust proceeds | (5) | (9) | (54) |
Net cash provided by/(used in) investing activities | (608) | (224) | 329 |
FINANCING ACTIVITIES | |||
Borrowings | 0 | 0 | 2,569 |
Debt repayments | (1,320) | (1,000) | (3,352) |
Dividends paid | (322) | (322) | (319) |
Exercise of stock options | 0 | 2 | 172 |
Other, net | (102) | (90) | (114) |
Net cash used in financing activities | (1,744) | (1,410) | (1,044) |
Effect of exchange rate changes on cash and cash equivalents | (21) | (20) | 20 |
Net change in cash and cash equivalents | (797) | 168 | 1,010 |
Cash and cash equivalents at beginning of period | 1,557 | 1,389 | 379 |
Cash and cash equivalents at end of period | $ 760 | $ 1,557 | $ 1,389 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock (shares) | Common Stock/ Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Viacom Stockholders’ Equity | Noncontrolling Interests | ||
Equity, at beginning of period at Sep. 30, 2016 | $ 4,330 | $ 10,139 | $ (20,798) | $ 15,628 | $ (692) | $ 4,277 | $ 53 | |||
Shares issued, at beginning of period at Sep. 30, 2016 | 397 | |||||||||
Net earnings | 1,922 | 0 | 0 | 1,874 | 0 | 1,874 | 48 | |||
Other comprehensive income (loss), net of income tax benefit / expense | 73 | 0 | 0 | 0 | 74 | 74 | (1) | |||
Noncontrolling interests | (73) | 0 | 0 | (57) | 0 | (57) | (16) | |||
Dividends declared ($0.80 per share for both Class A and Class B) | (321) | 0 | 0 | (321) | 0 | (321) | 0 | |||
Equity-based compensation and other | 188 | (20) | 208 | 0 | 0 | 188 | 0 | |||
Equity based compensation and other, shares | 5.4 | |||||||||
Equity, at end of period at Sep. 30, 2017 | 6,119 | 10,119 | (20,590) | 17,124 | (618) | 6,035 | 84 | |||
Shares issued, at end of period at Sep. 30, 2017 | 402.4 | |||||||||
Net earnings | 1,759 | 0 | 0 | 1,719 | 0 | 1,719 | 40 | |||
Other comprehensive income (loss), net of income tax benefit / expense | (79) | 0 | 0 | 0 | (76) | (76) | (3) | |||
Noncontrolling interests | (63) | 0 | 0 | 0 | 0 | 0 | (63) | |||
Dividends declared ($0.80 per share for both Class A and Class B) | (325) | 0 | 0 | (325) | 0 | (325) | 0 | |||
Equity-based compensation and other | 54 | 26 | 28 | (43) | 54 | 0 | ||||
Equity-based compensation and other | Accounting Standards Update 2018-02 [Member] | 43 | |||||||||
Equity based compensation and other, shares | 0.7 | |||||||||
Equity, at end of period at Sep. 30, 2018 | 7,465 | 10,145 | (20,562) | 18,561 | (737) | 7,407 | 58 | |||
Equity, at end of period (ASC 606, ASU 2016-16 and ASU 2016-01 [Member]) at Sep. 30, 2018 | 7,524 | 10,145 | (20,562) | 18,674 | (791) | 7,466 | 58 | |||
Shares issued, at end of period at Sep. 30, 2018 | 403.1 | |||||||||
Shares issued, at end of period (ASC 606, ASU 2016-16 and ASU 2016-01, Shares [Member]) at Sep. 30, 2018 | 403.1 | |||||||||
Net earnings | 1,588 | 0 | 0 | 1,548 | 0 | 1,548 | 40 | |||
Other comprehensive income (loss), net of income tax benefit / expense | (283) | 0 | 0 | 0 | (282) | (282) | (1) | |||
Noncontrolling interests | (38) | 0 | 0 | (7) | 0 | (7) | (31) | |||
Dividends declared ($0.80 per share for both Class A and Class B) | (326) | 0 | 0 | (326) | 0 | (326) | 0 | |||
Equity-based compensation and other | 55 | 36 | 21 | (2) | [1] | 0 | [1] | 55 | 0 | |
Equity based compensation and other, shares | 0.6 | |||||||||
Equity, at end of period at Sep. 30, 2019 | 8,520 | 10,181 | (20,541) | 19,887 | (1,073) | 8,454 | 66 | |||
Shares issued, at end of period at Sep. 30, 2019 | 403.7 | |||||||||
Adoption of New Accounting Pronouncements(2) | $ 59 | $ 0 | $ 0 | $ 113 | $ (54) | $ 59 | $ 0 | |||
Stock Issued During Period, Shares, Issued for Services | 0 | |||||||||
[1] | (in millions) Common Stock (shares) Common Stock/ Additional Paid-In Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss Total Viacom Stockholders’ Equity Noncontrolling Interests Total Equity September 30, 2016 397.0 $ 10,139 $ (20,798 ) $ 15,628 $ (692 ) $ 4,277 $ 53 $ 4,330 Net earnings — — — 1,874 — 1,874 48 1,922 Other comprehensive income/(loss), net of income tax expense of $27 — — — — 74 74 (1 ) 73 Noncontrolling interests — — — (57 ) — (57 ) (16 ) (73 ) Dividends declared ($0.80 per share for both Class A and Class B) — — — (321 ) — (321 ) — (321 ) Equity-based compensation and other 5.4 (20 ) 208 — — 188 — 188 September 30, 2017 402.4 10,119 (20,590 ) 17,124 (618 ) 6,035 84 6,119 Net earnings — — — 1,719 — 1,719 40 1,759 Other comprehensive loss, net of income tax expense of $77 — — — — (76 ) (76 ) (3 ) (79 ) Noncontrolling interests — — — — — — (63 ) (63 ) Dividends declared ($0.80 per share for both Class A and Class B) — — — (325 ) — (325 ) — (325 ) Equity-based compensation and other (1) 0.7 26 28 43 (43 ) 54 — 54 September 30, 2018 403.1 10,145 (20,562 ) 18,561 (737 ) 7,407 58 7,465 Adoption of New Accounting Pronouncements (2) — — — 113 (54 ) 59 — 59 Adjusted beginning balance, October 1, 2018 403.1 10,145 (20,562 ) 18,674 (791 ) 7,466 58 7,524 Net earnings — — — 1,548 — 1,548 40 1,588 Other comprehensive loss, net of income tax benefit of $54 — — — — (282 ) (282 ) (1 ) (283 ) Noncontrolling interests — — — (7 ) — (7 ) (31 ) (38 ) Dividends declared ($0.80 per share for both Class A and Class B) — — — (326 ) — (326 ) — (326 ) Equity-based compensation and other 0.6 36 21 (2 ) — 55 — 55 September 30, 2019 403.7 $ 10,181 $ (20,541 ) $ 19,887 $ (1,073 ) $ 8,454 $ 66 $ 8,520 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Tax | $ 54 | $ 77 | $ (27) |
Common Stock, Dividends, Per Share, Declared | $ 0.80 | $ 0.80 | $ 0.80 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Description of Business Viacom creates entertainment experiences that drive conversation and culture around the world. Through television, film, direct-to-consumer streaming, digital media, live events, merchandise and solutions, our brands connect with diverse, young and young at heart audiences in more than 180 countries. Viacom operates through two reportable segments: Media Networks and Filmed Entertainment . The Media Networks segment provides entertainment content, services and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment develops, produces, finances, acquires and distributes films, television programming and other entertainment content in various markets and media worldwide through its Paramount Pictures, Paramount Players, Paramount Animation and Paramount Television divisions. It partners on various projects with key Viacom brands, including Nickelodeon Movies, MTV Films, and BET Films. References in this document to “Viacom,” “Company,” “we,” “us” and “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, 2019 (“ 2019 ”), September 30, 2018 (“ 2018 ”) and September 30, 2017 (“ 2017 ”). Use of Estimates Preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. Recently Adopted Accounting Pronouncements Revenue Recognition On October 1, 2018, we adopted ASC Topic 606 - Revenue from Contracts with Customers, a comprehensive revenue recognition model that supersedes the previous revenue recognition requirements. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The new standard impacts the timing of revenue recognition for renewals and extensions of existing licensing agreements for intellectual property, which are now recognized as revenue when the renewal term begins rather than when the agreement is extended or renewed under previous guidance. We adopted the standard using the modified retrospective method for all contracts not completed as of the date of adoption, which resulted in a cumulative effect adjustment of $106 million to decrease the opening retained earnings balance for our 2019 fiscal year, substantially all related to television license arrangements in our Filmed Entertainment segment. The following tables present the amount each applicable financial statement line item on our Consolidated Statement of Earnings and Consolidated Balance Sheet would have increased/(decreased) if renewals and extensions of existing licensing agreements for intellectual property were recognized under previous accounting guidance: Consolidated Statement of Earnings Impact (in millions, except per share amounts) Year Ended September 30, 2019 Revenues $ (90 ) Operating expenses (51 ) Operating income (39 ) Provision for income taxes (9 ) Net earnings from continuing operations $ (30 ) Net earnings (Viacom and noncontrolling interests) $ (30 ) Net earnings attributable to Viacom $ (30 ) Basic EPS from continuing operations $ (0.07 ) Diluted EPS from continuing operations $ (0.07 ) Consolidated Balance Sheet Impact (in millions) September 30, 2019 ASSETS Receivables, net $ (18 ) Inventory, net (8 ) Prepaid and other assets (1 ) Other assets 103 LIABILITIES AND EQUITY Accrued expenses $ 1 Participants’ share and residuals (current) 6 Other liabilities (current) (39 ) Participants’ share and residuals (noncurrent) 43 Other liabilities (noncurrent) (11 ) Retained earnings 76 In addition, the adoption of ASC 606 resulted in a classification change on the Consolidated Balance Sheet in which reserves related to sales returns and allowances were reclassified to Other Liabilities - current . Such amount, which was $56 million as of September 30, 2019 , was previously presented as a reduction to Receivables, net . Income Taxes On October 1, 2018, we adopted ASU 2016-16 - Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under previous GAAP in which the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use. Under the modified retrospective method, we recorded a net cumulative adjustment of $165 million to increase the opening retained earnings balance for our 2019 fiscal year, principally related to deferred tax assets that will be amortized over the next 12 to 15 years . Financial Instruments On October 1, 2018, we adopted ASU 2016-01 - Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. Among other provisions, the new guidance requires the fair value measurement of equity investments. For equity investments without readily determinable fair values, entities have the option to either measure these investments at fair value or to apply a measurement alternative at cost adjusted for changes in observable prices minus impairment. All changes in measurement are recognized in net income. We adopted the standard for our marketable securities using the modified retrospective method, which resulted in a transition adjustment to reclassify $54 million , net of tax, of accumulated other comprehensive income related to our marketable securities to increase the opening retained earnings balance. For our investments without readily determinable fair values, or non-marketable securities, we have adopted the standard prospectively and elected to apply the measurement alternative described above. Gains and losses resulting from the movements in fair value of equity investments are recorded in the Consolidated Statements of Earnings. Statement of Cash Flows On October 1, 2018, we adopted ASU 2016-15 - Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard impacts our Consolidated Statements of Cash Flows by increasing cash flow from operating activities and decreasing cash flow from financing activities in periods when debt prepayment or debt extinguishment costs are paid. We adopted the standard retrospectively, which resulted in $33 million reclassified from Net cash provided by operating activities to Net cash used in financing activities in 2017. Pension Benefits On October 1, 2018, we adopted ASU 2017-07 - Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires the service cost component of net periodic cost to be presented in the income statement with other current compensation costs for related employees. The other components of net periodic cost are required to be presented in the income statement outside of operating income. We adopted the standard retrospectively, which resulted in $2 million and $3 million of other components of net periodic costs in 2018 and 2017, respectively, reclassified from Selling, general and administrative to Other items, net in the Consolidated Statements of Earnings. As a practical expedient, we used amounts previously disclosed in the prior comparative period’s interim consolidated financial statements as the adjustments that were applied retrospectively. Accounting Pronouncements Not Yet Adopted Films Costs and License Agreements In March 2019, the FASB issued ASU 2019-02 - Improvements to Accounting for Costs of Films and License Agreements for Program Materials. ASU 2019-02 aligns the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The guidance also requires that an entity test a film or license agreement for program material for impairment at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements. Further, the guidance requires that an entity reassess estimates of the use of a film in a film group and account for changes, if any, prospectively. The guidance will be effective for the first interim period of our 2021 fiscal year, with early adoption permitted. We are currently evaluating the impact of the new standard on our consolidated financial statements. Financial Instruments In June 2016, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. Subsequently, ASU 2018-19 has been issued that amends and/or clarifies the application of ASU 2016-13. Among other provisions, the ASU introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. The guidance will be effective for the first interim period of our 2021 fiscal year, with early adoption in fiscal year 2020 permitted. We are currently evaluating the impact of the new standard. Leases In February 2016, the FASB issued ASU 2016-02 - Leases. Subsequent ASUs have also been issued that amend and/or clarify the application of ASU 2016-02. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for most leases. For income statement purposes, leases will be classified as either operating or finance, generally resulting in straight-line expense recognition for operating leases (similar to current operating leases) and accelerated expense recognition for financing leases (similar to current capital leases). The guidance will be effective for the first interim period of our 2020 fiscal year. We will apply the modified retrospective method of adoption as of October 1, 2019 and are in the process of finalizing the impact of this guidance; however, since we have a significant amount of minimum lease commitments (See Note 11), it is expected that the impact of recognizing right-of-use assets and lease liabilities will be material to the Consolidated Balance Sheet. The adoption is not expected to have a material impact on the Consolidated Statement of Earnings. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
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. 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 and Remeasurement 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 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. Effective July 1, 2018, Argentina has been designated as a highly inflationary economy. Subsidiaries’ transactions denominated in currencies other than their functional currency will result in remeasurement gains and losses, which are reflected within Other items, net in the Consolidated Statements of Earnings. Revenue Recognition We recognize revenue when control of a good or service is transferred to a customer. We consider control to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Significant judgments in the determination of the amount and timing of revenue from contracts with customers include the identification of distinct performance obligations in contracts containing bundled advertising sales and content licenses and the allocation of the consideration among individual performance obligations within these arrangements based on their relative standalone selling prices. Advertising Revenues : Revenue from the sale of advertising earned by the Media Networks segment is recognized when the advertisement is aired. Advertising revenues are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. To the extent amounts billed exceed the amount of revenue recognized by applying the measure of progress, such amounts are deferred until the impression guarantee has been satisfied. For arrangements that do not include impression guarantees, the individual spots are the performance obligation, and consideration is allocated among the individual advertising spots based on relative standalone selling prices. Affiliate Revenues : In the Media Networks segment, content is primarily distributed through its live network feeds via content license arrangements with affiliate partners, including cable television operators, direct-to-home satellite operators and mobile networks. We also license our content through television, subscription video-on-demand (“SVOD”) and over-the-top (“OTT”) distributors, syndication and transactional video-on-demand. As discussed further in the Filmed Entertainment Revenues section below, revenue associated with these arrangements is recognized upon a transfer of control, which occurs upon delivery and availability for use by the licensee. Affiliate revenues from cable television operators, direct-to-home satellite television operators and mobile networks are recognized by the Media Networks segment as the live feeds are provided to the distributor, representing a transfer of control. The performance obligation under such affiliate agreements is a license to our content via the continuous delivery of live linear feeds, and may also include a license to programming for video-on-demand (“VOD”) viewing. Both performance obligations are satisfied over the term of the agreement. The majority of our affiliate revenues relate to sales-based royalties for which we receive a contractual rate per subscriber. Revenue for these contracts is recognized when the sale to the end customer occurs, which is generally concurrent with the delivery of the linear feeds based on the number of subscribers the customer has at the time of delivery. Consumer Products, Recreation and Live Events Revenues : Revenue associated with consumer products, recreation and live event contracts is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. When consumer products and recreation agreements include minimum guaranteed consideration, revenue is recognized as sales occur by the licensee or ratably if the sales-based consideration is not expected to exceed a minimum guaranteed amount of consideration. For live events, we recognize revenue when the event is held. Filmed Entertainment Revenues : In the Filmed Entertainment segment, we license our content through theatrical releases, television, SVOD and OTT distributors, and through transactional video-on-demand. We also distribute our films through DVD and Blu-ray sales through wholesale and retail partners. Revenue from the licensing of film and television exhibition rights, including broadcast and cable television networks, SVOD and other OTT services, is recognized upon a transfer of control, which occurs upon delivery and availability for use by the licensee. Each individual title delivered represents a separate performance obligation. For renewals or extensions of licensing arrangements, revenue related to the renewal or extension is recognized upon the start of the renewal or extension period to the extent the content has been delivered to the customer. SVOD and other OTT arrangements include content made available to distributors on one or more dates for a fixed fee. Consideration for such arrangements is allocated among the titles and episodes based on relative standalone selling prices. Estimation of standalone selling prices requires judgment, which can impact the timing and amount of revenue that we recognize. In determining the transaction price of a contract, an adjustment is made if payment from our customer occurs either significantly before or after performance, resulting in a significant financing component. Applying a practical expedient in the new standard, we do not assess whether a significant financing component exists if the period between when we perform our obligations under the contract and when the customer pays is one year or less. In transactional video-on-demand and similar arrangements, our performance obligation is to provide the content to our distribution customers that provide our content to end users. These contracts provide for sales-based royalties based on the number of underlying transactions with end users. Revenue for transactional video-on-demand and similar arrangements is recognized as the content is exhibited based on end-customer purchases as reported by distributors. Similarly, revenue from licensing of our content through electronic sell-through means is recognized as each title is downloaded by the end customer, as the customer is able to use the license immediately upon download. For sales of DVDs and Blu-ray discs to wholesalers and retailers, revenue is recognized upon the later of physical delivery to the customer or the date that restrictions on sales by the retailers are lifted. Theatrical revenue is recognized from theatrical distribution of films during the exhibition period. These agreements take the form of sales-based royalties and revenue is recognized when the sale to the end customer occurs. 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 sales returns and allowances are recorded as a liability in the Consolidated Balance Sheet. Our reserve for sales returns and allowances was $56 million and $64 million at September 30, 2019 and 2018 , respectively. Subsequent to the adoption of ASC 606, the reserve for sales returns and allowances is presented in Other Liabilities - current , and prior to the adoption it was presented as a reduction to Receivables, net. Reserves for accounts receivable are based on amounts estimated to be uncollectible and are recorded as a contra-receivable. Our allowance for doubtful accounts was $47 million and $45 million at September 30, 2019 and 2018 , respectively. Gross versus Net Revenue : We earn and recognize revenues under certain third-party distribution and outsourced advertising sales agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of which party controls the good or service being transferred to the customer. Advertising Expense We expense advertising costs as they are incurred. We incurred total advertising expenses of $1.118 billion in 2019 , $917 million in 2018 and $1.335 billion in 2017 . 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. Deferred tax assets and deferred tax liabilities are classified as noncurrent and are included in Other Assets and Deferred tax liabilities, net , respectively, within the Consolidated Balance Sheets. We have elected to account for the effects of global intangible low tax income as a component of income tax expense in the period the tax arises. 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 and unrealized gains and losses on certain derivative financial instruments. Prior to the adoption of ASU 2016-01 comprehensive income also included unrealized gains and losses on publicly traded investments in equity securities. 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 television productions (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, television and acquired programming inventories are included as a component of Inventory, net , in the Consolidated Balance Sheets. Film, television and acquired programming costs, including inventory amortization, development costs, residuals and participations and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. Film and television production costs : We use an individual-film-forecast-computation method to amortize film costs and to accrue estimated liabilities for residuals and participations 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. The estimate of ultimate revenues impacts the timing of amortization and accrual of residuals and participations. Our estimate of ultimate revenues for feature films includes 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 residuals and participations 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. Capitalized original programming costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s ultimate revenues based on genre and historical experience, beginning with the month of initial exhibition. Original programming costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the television program is less than the unamortized production cost or abandoned. Acquired programming : Costs incurred in acquiring program rights, including advances, 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 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 consideration paid for a business and the fair value of 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 based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. Investments Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other equity investments are carried at fair value, where readily determinable values exist. For equity investments without readily determinable fair values, we have elected to apply the measurement alternative and account for the equity investments initially at cost with subsequent adjustments for changes in observable prices less impairment. Gains and losses resulting from the changes in fair value of equity investments are recorded in the Consolidated Statements of Earnings. Prior to the adoption of ASU 2016-01, we recorded the unrealized gains and losses on publicly traded equity investments in other comprehensive income, and accounted for all other equity investments, not accounted for under the equity method, at cost. We monitor our investments for impairment 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. Certain assets are measured and recorded at fair value on a non-recurring basis. Film and television production costs, goodwill, intangible assets, and equity method investments are recorded at fair value only if an impairment charge is recognized. Impairment charges, if applicable, are determined using discounted cash flows, which is a Level 3 valuation technique. 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. Cash flows from derivative instruments are classified in the same category as the cash flows from the related assets, liabilities or forecasted transactions in the Consolidated Statements of Cash Flows. Pension Benefits Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans, which are currently frozen to future benefit accruals. The expense is determined using certain assumptions, including, among others, the expected long-term rate of return and discount rate. Net periodic benefit cost, other than service cost, if any, is presented in the Consolidated Statements of Earnings within Other items, net. 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. |
CBS Merger Agreement (Notes)
CBS Merger Agreement (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
CBS Merger Agreement [Abstract] | |
CBS Merger Agreement [Text Block] | CBS MERGER AGREEMENT On August 13, 2019, Viacom entered into an Agreement and Plan of Merger with CBS Corporation, (“CBS”) (as it may be further amended or supplemented from time to time, the “merger agreement”), pursuant to which Viacom will merge with and into CBS (the “merger”), with CBS continuing as the surviving company and being renamed ViacomCBS Inc. (“ViacomCBS”). ViacomCBS will be a leading global, multiplatform, premium content powerhouse, with the assets, capabilities and scale to be one of the most important content producers and providers in the world and an indispensable player in the global media ecosystem. Through its premium content scale, broadcast and cable leadership positions in markets across the U.S., Europe, Latin America and Asia, global production capabilities, major Hollywood film studio, portfolio of streaming products, and industry-leading advertising and marketing solutions, ViacomCBS will be positioned to serve consumers, the creative community, commercial partners and employees, while creating long-term value for shareholders. The strength and scale of ViacomCBS’ assets will enable it to pursue a growth strategy driven by one agenda - to maximize the value of the content it creates, whether for its own platforms or for others. As a result of the merger, at the effective time of the merger (the “effective time”), (1) each share of Viacom Class A common stock issued and outstanding immediately prior to the effective time, other than shares held directly by Viacom as treasury shares or held by CBS, will be converted automatically into 0.59625 shares of ViacomCBS Class A common stock and (2) each share of Viacom Class B common stock issued and outstanding immediately prior to the effective time, other than shares held directly by Viacom as treasury shares or held by CBS, will be converted automatically into 0.59625 shares of ViacomCBS Class B common stock. |
Acquisition and Investments
Acquisition and Investments | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition and Investments | ACQUISITIONS AND INVESTMENTS Pluto TV Acquisition On March 1, 2019, we acquired Pluto Inc., the provider of the leading free streaming television service Pluto TV in the U.S., for $324 million , net of cash acquired. The purchase price excludes $18 million of post-combination expenses that are subject to continuous employment and will be recognized over the required service period in the Consolidated Statements of Earnings within Selling, general and administrative expenses . Pluto TV expands our presence across next-generation distribution platforms and accelerates the growth of our advanced marketing solutions business. Pluto TV is available across mobile devices, desktops, streaming players and game consoles and is integrated across a growing number of Smart TVs and other video and broadband platforms. The following table summarizes our allocation of the purchase price as of the acquisition date for Pluto TV. Purchase Price Allocation (in millions) Receivables $ 31 Prepaid and other assets 3 Goodwill 277 Intangible assets 41 Other assets, noncurrent 8 Assets acquired 360 Accounts payable 27 Accrued expenses 4 Other liabilities 5 Liabilities assumed 36 $ 324 The goodwill, which is not deductible for tax purposes, reflects the Company-specific synergies arising from the acquisition and is included in the Media Networks segment. Intangible assets consist of distribution relationships, developed technology and trade names with useful lives of 5 years . The operating results of Pluto TV from the date of acquisition through September 30, 2019 were no t material. Other Acquisitions In 2018, the Company acquired WhoSay Inc., a leading influence marketing firm, VidCon LLC, a host of conferences dedicated to online video, and Awesomeness TV Holdings, LLC, a multi-platform media company serving global Gen-Z audiences as a digital-first destination for original programming, for total consideration of $87 million , net of cash acquired. The operating results of these acquisitions were not material. On November 15, 2016, we acquired Televisión Federal S.A. (“Telefe”), one of the main free-to-air channels and biggest content producers in Argentina, for $336 million , net of cash acquired. The operating results of Telefe were not material. Investments Our investments as of September 30, 2019 and 2018 were $496 million and $410 million , respectively, which comprise of marketable securities, non-marketable equity investments and equity-method investments which are included within Other assets, noncurrent on our Consolidated Balance Sheets. The fair value of our marketable securities was $112 million and $80 million as of September 30, 2019 and 2018 , respectively, as determined utilizing a market approach based on quoted market prices in active markets at period end (Level 1 in the fair value hierarchy). During the year ended September 30, 2019 , the unrealized gain on marketable securities of $32 million was included in Other items, net in the Consolidated Statement of Earnings. The carrying value of non-marketable equity investments was $139 million as of September 30, 2019 . During the years ended September 30, 2018 and 2017, we recognized impairment losses of $46 million and $10 million , respectively, to write off certain cost method investments. The impairments were included in Other Items, net in the Consolidated Statements of Earnings. As of September 30, 2019 and 2018 , our equity-method investments were $245 million and $241 million , respectively. In 2018, we completed a sale of a 1% equity interest in Viacom18 to our joint venture partner for $20 million , resulting in a gain of $16 million . The gain on asset sale was included in Other items, net in the Consolidated Statements of Earnings. On May 11, 2017, we completed the sale of our 49.76% interest in EPIX, a premium entertainment network, to Metro-Goldwyn-Mayer. The sale resulted in proceeds of $593 million , net of transaction costs of $4 million , and a gain of $285 million . In addition, prior to the closing of the sale, EPIX paid a dividend, of which our pro rata share was $37 million . 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. Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $106 million in assets and $9 million in liabilities as of September 30, 2019 , and $72 million in assets and $5 million in liabilities as of September 30, 2018 . In 2017, a consolidated VIE completed the sale of broadcast spectrum in connection with the FCC’s broadcast spectrum auction. The sale resulted in proceeds of $147 million , a portion of which was used to repay outstanding debt, and a pre-tax gain of $127 million , with $11 million attributable to the noncontrolling interest. Other than the sale of broadcast spectrum, 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, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | PROPERTY AND EQUIPMENT Property and Equipment, net (in millions) September 30, Estimated Life (in years) 2019 2018 Land $ 251 $ 251 — Buildings 484 468 up to 40 Capital leases 136 193 up to 15 Equipment and other 2,200 2,101 up to 20 Property and equipment 3,071 3,013 Accumulated depreciation (2,149 ) (2,094 ) Property and equipment, net $ 922 $ 919 Depreciation expense, including assets under capital leases, was $175 million in 2019 , $182 million in 2018 , and $194 million in 2017 . Depreciation expense related to capital leases was $13 million in 2019 , $15 million in 2018 and $16 million in 2017 . Accumulated depreciation of capital leases was $128 million and $172 million at September 30, 2019 and 2018 , respectively. |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory (in millions) September 30, 2019 2018 Film inventory: Released, net of amortization $ 409 $ 454 Completed, not yet released 94 11 In process and other 861 713 1,364 1,178 Television production: Released, net of amortization 56 6 In process and other 185 201 241 207 Original programming: Released, net of amortization 1,120 1,124 In process and other 893 757 2,013 1,881 Acquired program rights, net of amortization 1,119 1,411 Home entertainment inventory 61 67 Total inventory, net 4,798 4,744 Less current portion 775 896 Noncurrent portion $ 4,023 $ 3,848 We expect to amortize approximately $1.4 billion of film inventory, television production and original programming, including released and completed, not yet released, during the fiscal year ending September 30, 2020 using the individual-film-forecast-computation method. In addition, we expect to amortize 87% of unamortized released film and television costs, excluding acquired film libraries, at September 30, 2019 , within the next three years . |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangibles | GOODWILL AND INTANGIBLES Goodwill The following table details the change in goodwill by segment for 2019 and 2018 : Goodwill (in millions) Media Networks Filmed Entertainment Total Balance at September 30, 2017 $ 10,072 $ 1,593 $ 11,665 Acquisitions 56 — 56 Foreign currency translation (112 ) — (112 ) Balance at September 30, 2018 10,016 1,593 11,609 Acquisitions 286 — 286 Foreign currency translation (38 ) — (38 ) Balance at September 30, 2019 $ 10,264 $ 1,593 $ 11,857 Intangibles The following table details our intangible asset balances by major asset classes: Intangibles (in millions) September 30, 2019 2018 Finite-lived intangible assets: Trade names $ 203 $ 194 Licenses 148 149 Subscriber agreements 56 55 Other intangible assets 249 185 656 583 Accumulated amortization on finite-lived intangible assets: Trade names (99 ) (87 ) Licenses (34 ) (28 ) Subscriber agreements (53 ) (51 ) Other intangible assets (150 ) (138 ) (336 ) (304 ) Finite-lived intangible assets, net 320 279 Indefinite-lived intangible assets 34 34 Total intangibles, net $ 354 $ 313 Amortization expense relating to intangible assets was $40 million for 2019 , $31 million for 2018 and $29 million for 2017 . We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2019 to be as follows for each of the next five fiscal years: Amortization of Intangibles (in millions) 2020 2021 2022 2023 2024 Amortization expense $ 43 $ 35 $ 33 $ 30 $ 28 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our total debt consists of the following: Debt (in millions) September 30, 2019 2018 Senior Notes and Debentures: Senior notes due September 2019, 5.625% $ — $ 550 Senior notes due December 2019, 2.750% 90 252 Senior notes due March 2021, 4.500% 498 497 Senior notes due December 2021, 3.875% 597 596 Senior notes due February 2022, 2.250% 49 102 Senior notes due June 2022, 3.125% 194 194 Senior notes due March 2023, 3.250% 181 181 Senior notes due September 2023, 4.250% 1,241 1,239 Senior notes due April 2024, 3.875% 489 488 Senior notes due October 2026, 3.450% 123 474 Senior debentures due December 2034, 4.850% 86 281 Senior debentures due April 2036, 6.875% 1,069 1,068 Senior debentures due October 2037, 6.750% 75 75 Senior debentures due February 2042, 4.500% 45 62 Senior debentures due March 2043, 4.375% 1,108 1,102 Senior debentures due June 2043, 4.875% 18 32 Senior debentures due September 2043, 5.850% 1,231 1,230 Senior debentures due April 2044, 5.250% 345 345 Junior Debentures: Junior subordinated debentures due February 2057, 5.875% 643 642 Junior subordinated debentures due February 2057, 6.250% 643 642 Capital lease and other obligations 13 30 Total debt 8,738 10,082 Less current portion 98 567 Noncurrent portion $ 8,640 $ 9,515 The amounts classified in the current portion of debt include the portion of capital leases payable in the next twelve months. Notes and Debentures In 2019, we redeemed $1.128 billion of senior notes and debentures for a redemption price of $1.100 billion . As a result, we recognized a net pre-tax extinguishment gain of $18 million , net of $10 million of unamortized debt costs and transaction fees, included in Other items, net in the Consolidated Statements of Earnings. We also repaid the $220 million aggregate principal amount of our 5.625% Senior Notes. In 2018, we redeemed $1.039 billion of senior notes and debentures for a redemption price of $1.000 billion . As a result, we recognized a net pre-tax extinguishment gain of $25 million , net of $14 million of unamortized debt discount and transaction fees included within Other items, net in the Consolidated Statements of Earnings. In 2017, we redeemed $3.331 billion of senior notes and debentures for a redemption price of $3.333 billion . As a result, we recognized a net pre-tax extinguishment loss of $20 million included within Other items, net in the Consolidated Statements of Earnings, which included $18 million of unamortized debt discount and issuance fees. In 2017, we issued $2.6 billion of junior debentures and senior notes. Our 5.875% Junior subordinated debentures due February 2057 and 6.250% Junior subordinated debentures due February 2057 accrue interest at the stated fixed rates until February 28, 2022 and February 28, 2027, respectively, on which dates the rates will switch to floating rates based on three-month LIBOR plus 3.895% and 3.899% , respectively, reset quarterly. These debentures can be called by us at any time after the expiration of the fixed-rate period. The interest rate payable on our 2.250% Senior notes due February 2022 and 3.450% Senior notes due October 2026, collectively the “Senior Notes”, will be subject to adjustment from time to time if Moody’s Investors Services, Inc. or S&P Global Ratings downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Senior Notes. The interest rate on these Senior Notes would increase by 0.25% upon each credit agency downgrade up to a maximum of 2.00%, and would similarly be decreased for subsequent upgrades. Our outstanding notes and debentures provide for certain covenant packages typical for an investment grade company. There is an acceleration trigger for the majority of the notes and debentures in the event of a change in control under specified circumstances coupled with ratings downgrades due to the change in control, as well as certain optional redemption provisions for our junior debentures. The pending merger with CBS does not constitute a change in control. At September 30, 2019 and 2018 , the total unamortized discount and issuance fees and expenses related to our outstanding notes and debentures was $409 million and $431 million , respectively. The fair value of our notes and debentures was approximately $10.1 billion and $10.5 billion as of September 30, 2019 and 2018 , respectively. The valuation of our publicly traded debt is based on quoted prices in active markets (Level 1 in the fair value hierarchy). Credit Facility In February 2019, we amended our revolving credit agreement, originally dated as of October 8, 2010, to, among other things, extend the maturity date of the $2.5 billion revolving credit facility from November 18, 2019 to February 11, 2024. The credit facility is used for general corporate purposes and to support commercial paper outstanding, if any. The borrowing rate under the amended credit facility is LIBOR plus a margin ranging from 1% to 1.625% based on our current public debt rating. The credit facility has one principal financial covenant that requires our total consolidated leverage to be less than 4.50x (which we may elect to increase to 5.0x for up to four consecutive quarters following a qualifying acquisition) as of the last day of each fiscal quarter. We met this covenant as of September 30, 2019. Total consolidated leverage is the ratio of our consolidated indebtedness as of the last day of each quarter to the consolidated EBITDA (each as defined in the amended credit agreement) for the trailing twelve-month period. As of September 30, 2019, there were no amounts outstanding under the credit facility. Commercial Paper At September 30, 2019 and 2018 , there was no commercial paper outstanding. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [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, which are currently frozen to future benefit accruals. The funded plan provides a defined benefit based on a percentage of eligible compensation for periods of service. 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, 2019 and 2018 , respectively: Change in Benefit Obligation (in millions) Year Ended 2019 2018 Benefit obligation, beginning of period $ 945 $ 999 Interest cost 38 35 Actuarial loss/(gain) 189 (47 ) Benefits paid (44 ) (42 ) Benefit obligation, end of period $ 1,128 $ 945 Change in Plan Assets (in millions) Year Ended 2019 2018 Fair value of plan assets, beginning of period $ 543 $ 544 Actual return on plan assets 10 29 Employer contributions 20 12 Benefits paid (44 ) (42 ) Fair value of plan assets, end of period $ 529 $ 543 Funded status (in millions) September 30, 2019 2018 Funded status $ (599 ) $ (402 ) Substantially all of the unfunded amounts are included within Other liabilities – noncurrent in the Consolidated Balance Sheets as of September 30, 2019 and 2018 . 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 tables 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 (in millions) September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation $ 771 $ 637 $ 357 $ 308 $ 1,128 $ 945 Fair value of plan assets 529 543 — — 529 543 Funded status (242 ) (94 ) (357 ) (308 ) (599 ) (402 ) Net Periodic Benefit Costs Net periodic benefit cost is presented in the Consolidated Statements of Earnings within Other items, net. Our net periodic benefit cost under Viacom’s pension plans consists of the following: Net Periodic Benefit Costs (in millions) Year Ended September 30, 2019 2018 2017 Interest cost $ 38 $ 35 $ 33 Expected return on plan assets (40 ) (40 ) (37 ) Recognized actuarial loss 6 7 7 Net periodic benefit costs $ 4 $ 2 $ 3 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 (in millions) September 30, 2019 2018 Unrecognized actuarial loss $ 494 $ 281 Unrecognized actuarial loss of $12 million is expected to be recognized as a component of net periodic benefit cost during the fiscal year ended September 30, 2020 . The amounts recognized in other comprehensive income are: Other Comprehensive Income (in millions) Year Ended September 30, 2019 2018 2017 Net actuarial loss/(gain) $ 219 $ (36 ) $ (32 ) Recognized actuarial loss (6 ) (7 ) (7 ) Total pre-tax loss/(gain) $ 213 $ (43 ) $ (39 ) Year Ended Key Assumptions 2019 2018 Weighted-average assumptions - benefit obligations Discount rate 3.26 % 4.38 % Weighted-average assumptions - net periodic costs Discount rate 4.15 % 3.54 % Expected long-term return on plan assets 7.50 % 7.50 % 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. Interest cost is measured by applying the specific spot rates along the yield curve to the corresponding cash flows. 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. The estimated impact of a 25 basis point change in the discount rate would change the accumulated benefit obligation by approximately $46 million . The impact of a 25 basis point change in the expected rate of return on plan assets would change net periodic benefit cost by approximately $1 million . Investment Policies and Strategies The strategy of the Investments Committee (the “Committee”) is to manage the assets held in the funded pension plan in a prudent manner with a goal of preserving principal while providing reasonable risk appropriate returns. The investment policy adopted by the Committee 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. The Committee retains an independent investment advisor to monitor compliance with the investment policy and it is the Committee’s practice to regularly review the asset allocations with this advisor and rebalance as necessary to maintain compliance with the plan’s investment policies. The current ranges of target asset allocations under our investment policy are 70 - 90% return seeking, 10 - 30% liability hedging and 0 - 10% in cash and equivalents. In addition to monitoring compliance with the investment policy and providing guidance on recommended changes to the portfolio allocation strategy, the investment advisor is authorized to select funds and managers where the Committee does not make such selection. Investments will be diversified within asset classes with the intent to minimize the risk of large losses to the plan. The percentage of asset allocation of our funded pension plan at September 30, 2019 , by asset category was as follows: September 30, Asset Allocation of Funded Pension Plan 2019 Return seeking 71 % Liability hedging 22 Cash and cash equivalents 7 Total 100 % Viacom Class B common stock represents approximately 1% and 2% of the fair value of plan assets at September 30, 2019 and 2018 , respectively. Fair Value Measurement of Plan Assets The following table sets forth the plan’s assets at fair value as of September 30, 2019 and 2018 . 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 2018 to 2019 . 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 (in millions) September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Cash and Cash Equivalents (1) $ 36 $ 5 $ — $ — $ 36 $ 5 Return Seeking Equity Securities: Viacom Class B Common Stock 6 9 6 9 — — Core Fixed Income U.S. treasury securities — 15 — — — 15 Municipal & government issued bonds — 1 — — — 1 Corporate bonds (2) — 44 — — — 44 Mortgage-backed & asset-backed securities — 47 — — — 47 Fair value of plan assets in the fair value hierarchy 42 121 6 9 36 112 Investments measured at net asset value (3) (4) Return Seeking Diversified equity and credit funds 327 — Equity securities - world funds — 318 Equity securities - emerging markets — 27 Debt securities - emerging markets — 19 Debt securities - multi-strategy 45 58 Liability Hedging Treasury US rate funds (TURF) 115 — Total fair value of plan assets $ 529 $ 543 (1) Assets categorized as Level 2 reflect investments in money market funds. (2) Securities of diverse industries, substantially all investment grade. (3) Reflects investments in common/collective trust funds and limited partnerships. (4) In accordance with the accounting guidance, certain investments that are measured at fair value using net asset value per share practical expedient have not been classified in the fair value hierarchy. 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. 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) 2020 2021 2022 2023 2024 2025-2029 Pension benefits $ 45 $ 47 $ 49 $ 53 $ 55 $ 311 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 $48 million in 2019 , $52 million in 2018 and $53 million in 2017 . 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 one Form 5500 as providing more than 5% of total contributions to the 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 this plan is green, indicating that the plan is at least 80% funded. Total contributions that we made to multiemployer pension plans were $62 million in 2019 , $61 million in 2018 and $49 million in 2017 . 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 $86 million in 2019 , $69 million in 2018 and $57 million in 2017 . |
Redeemable NCI
Redeemable NCI | 12 Months Ended |
Sep. 30, 2019 | |
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 December 2022 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The activity reflected within redeemable noncontrolling interest for the fiscal years 2019 , 2018 and 2017 is presented below. Redeemable Noncontrolling Interest (in millions) Year Ended September 30, 2019 2018 2017 Beginning balance $ 246 $ 248 $ 211 Net earnings 17 20 17 Distributions (16 ) (16 ) (16 ) Translation adjustment (13 ) (6 ) 7 Redemption value adjustment 7 — 29 Ending balance $ 241 $ 246 $ 248 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments Our commitments under contractual obligations result from our normal course of business and represent obligations that may be payable over several years. The following table summarizes the Company’s significant commitments and expected payments by fiscal year as of September 30, 2019 : Contractual Obligations (in millions) Total 2020 2021 2022 2023 2024 Thereafter Off-Balance Sheet Arrangements Programming and talent commitments (1) $ 1,981 $ 676 $ 462 $ 382 $ 261 $ 140 $ 60 Operating leases (2) 1,398 183 168 148 115 107 677 Purchase obligations (3) 1,207 525 403 218 27 18 16 On-Balance Sheet Arrangements Capital lease obligations (4) $ 15 $ 8 $ 6 $ — $ — $ — $ 1 Debt (5) 9,134 90 500 845 1,432 492 5,775 Interest payments (6) 8,620 457 444 421 399 343 6,556 Other long-term obligations (7) 2,196 1,407 511 200 62 16 — (1) Programming and talent commitments include $1.449 billion relating to media networks programming and $532 million for talent contracts. (2) Operating leases include long-term non-cancelable operating lease commitments for office space, equipment, transponders, studio facilities and vehicles. (3) Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including open purchase orders. (4) Capital lease obligations include capital leases for satellite transponders. (5) Represents face value at maturity. (6) Interest payments on our junior subordinated debentures subsequent to the expiration of their fixed-rate periods have been included based on their current fixed rates. (7) Other long-term obligations principally consist of participations, residuals and programming obligations for content that is available for airing. Future minimum operating lease payments have been reduced by future minimum sublease income of $27 million . Future capital lease payments include $1 million of interest. Rent expense amounted to $248 million in 2019 , $266 million in 2018 and $267 million in 2017 . Our collaborative arrangements principally relate to contractual arrangements with other studios to jointly finance and distribute film or television programming, collectively referred to as films (“co-financing arrangements”). In co-financing arrangements, each partner is responsible for distribution of the film in specific territories or distribution windows. The partners’ share in the profits and losses of the film is included within participations expense under the individual-film-forecast-computation method. Such amounts recorded in the Consolidated Statements of Earnings 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 $106 million as of September 30, 2019 , and are presented in the Consolidated Balance Sheets within Other liabilities . 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 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, 2019 were $36 million and are not recorded on our Consolidated Balance Sheet. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 , none of the 25 million authorized shares of the preferred stock were issued and outstanding. Stock Repurchase Program There is $4.9 billion of remaining capacity under our $20.0 billion stock repurchase program. In the three years ended September 30, 2019 , we did not repurchase any shares of Class B common stock. Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss are as follows: Accumulated Other Comprehensive Loss (in millions) September 30, 2019 2018 2017 Foreign currency translation adjustments $ (675 ) $ (568 ) $ (405 ) Defined benefit pension plans (407 ) (229 ) (221 ) Cash flow hedges 9 6 8 Available for sale securities — 54 — Total $ (1,073 ) $ (737 ) $ (618 ) |
Revenues (Notes)
Revenues (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Note [Text Block] | REVENUES Contract Balances The timing of revenue recognition, billings and cash collections results in receivables and contract liabilities in the Consolidated Balance Sheets. Current receivables were $3.299 billion and $3.117 billion as of September 30, 2019 and October 1, 2018, respectively. Noncurrent receivables are principally related to long-term television license arrangements at Filmed Entertainment and SVOD and other OTT arrangements at Media Networks . Noncurrent receivables, included within Other assets - noncurrent in our Consolidated Balance Sheets, were $416 million and $380 million as of September 30, 2019 and October 1, 2018, respectively. Such amounts are due in accordance with the underlying terms of the respective agreements. We have determined that credit loss allowances are generally not considered necessary for these amounts. When consideration is received from a customer prior to satisfying, or partially satisfying, a performance obligation under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when control of the products or services is transferred to the customer. Our contract liabilities primarily relate to advertising sales arrangements where revenues have been deferred due to impression guarantees, consumer products arrangements with minimum guarantees and advance payments under content licensing arrangements. Contract liabilities are primarily short term and shown as Deferred revenue in our Consolidated Balance Sheets. Current deferred revenue was $438 million and $402 million as of September 30, 2019 and October 1, 2018, respectively. Noncurrent deferred revenue, included within Other liabilities in our Consolidated Balance Sheets, was $53 million and $67 million as of September 30, 2019 and October 1, 2018, respectively. Revenue recognized in the year ended September 30, 2019 relating to contract liabilities as of September 30, 2018 was $342 million . Performance Obligations Satisfied in Previous Periods Under certain contracts we provide licenses to functional intellectual property where revenue is recognized based on sales to the end customer. These types of contracts can result in recognition of revenue in a period subsequent to the period in which our performance obligation is satisfied, and are primarily entered into by our Filmed Entertainment reporting segment. We recognized approximately $167 million of revenue during the year ended September 30, 2019 from performance obligations satisfied, or partially satisfied, prior to September 30, 2018. These revenues were primarily related to the distribution of film and television content through transactional electronic sell-through and VOD. Future Performance Obligations As of September 30, 2019 , unrecognized revenues attributable to performance obligations not yet satisfied under various long-term contracts were approximately $2.7 billion . This revenue is generally expected to be recognized over a period of up to 10 years, but the majority will be recognized over the next three years . Our most significant remaining performance obligations relate to film and television content licensing arrangements, as well as affiliate and other arrangements that contain minimum guarantees. The amount disclosed does not include: (i) revenues related to performance obligations that are part of a contract that have an original expected duration of one year or less and (ii) content license contracts for which variable consideration is determined based on the customer's subsequent sale or usage. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Based Compensation | EQUITY-BASED COMPENSATION Our 2016 Long-Term Management Incentive Plan, (the “LTMIP”), provides for various types of equity awards, including stock options, stock appreciation rights, restricted shares, unrestricted shares of Class B common stock, phantom shares, dividend equivalents, time-vested and performance-based share units, 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 time-vested restricted share units (“RSUs”). We have primarily granted stock options and RSUs to employees. Certain senior executives have also received performance-based share units. Stock options generally vest ratably over a four -year period from the date of grant and expire eight 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 performance share units (“PSUs”) granted to executives and currently outstanding represent the right to receive a corresponding number of shares of Class B common stock depending on the Company’s performance against specific pre-determined goals that include 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 and/or a specified level of earnings per share set for one or more performance periods within the measurement period. The measurement period is 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 200% 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, and for PSUs including an earnings per share goal if earnings per share performance is less than 80% of the target earnings per share, the target grant is forfeited. No other performance-based share units were outstanding as of September 30, 2019 . In connection with the merger, at the effective time the outstanding PSU awards will convert to time-based RSUs and shall no longer be subject to the market-based performance condition. As a result of the change in terms, a modification charge of $2 million was recognized and is included in Restructuring and other corporate matters . Outstanding share units accrue dividends each time we declare a quarterly cash dividend, 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 share units, shares of Class B common stock are issued from authorized but unissued shares or from treasury stock. At September 30, 2019 , we had 392.5 million shares in treasury. The aggregate number of equity awards authorized and available under the LTMIP for future grants as of September 30, 2019 was approximately 24 million , assuming that outstanding PSU 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 (in millions) Year Ended September 30, 2019 2018 2017 Recognized in earnings: Stock options $ 13 $ 14 $ 15 Share units 39 39 39 Compensation cost included in SG&A expense 52 53 54 Compensation cost included in Restructuring and other corporate matters (1) 12 4 14 Total compensation cost in earnings $ 64 $ 57 $ 68 Tax benefit recognized $ 10 $ 12 $ 23 Capitalized equity-based compensation expense $ 4 $ 3 $ 2 (1) See Note 15 for additional information. 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 2019 2018 2017 Weighted average fair value of grants $ 7.31 $ 8.83 $ 7.48 Weighted average assumptions: Expected stock price volatility 30.1 % 36.7 % 28.4 % Expected term of options (in years) 5.0 5.3 4.9 Risk-free interest rate 2.9 % 2.5 % 1.9 % Expected dividend yield 2.6 % 2.6 % 2.3 % The following table summarizes information about our stock option transactions: Year Ended Year Ended Year Ended Stock Options (number of options in thousands) Options Weighted average exercise price Options Weighted average exercise price Options Weighted average exercise price Outstanding at the beginning of the period 15,740.6 $ 50.43 15,591.5 $ 52.85 19,596.2 $ 51.54 Granted 2,941.7 30.86 2,415.1 31.02 2,874.8 34.86 Exercised — — (59.8 ) 30.12 (4,814.7 ) 35.72 Forfeited or expired (5,067.6 ) 56.08 (2,206.2 ) 46.86 (2,064.8 ) 55.25 Outstanding at the end of the period 13,614.7 $ 44.10 15,740.6 $ 50.43 15,591.5 $ 52.85 Exercisable at the end of the period 7,780.1 $ 53.17 10,999.5 $ 57.20 9,331.8 $ 57.85 The weighted average remaining contractual life of stock options outstanding and exercisable at September 30, 2019 was 4 years and 2 years, respectively. The following table summarizes information relating to stock option exercises during the periods presented: Year Ended September 30, Stock Option Exercises (in millions) 2019 2018 2017 Proceeds from stock option exercises $ — $ 2 $ 172 Intrinsic value $ — $ — $ 42 Excess tax benefit/(shortfall) $ — $ — $ (3 ) Total unrecognized compensation cost related to unvested stock option awards at September 30, 2019 was approximately $31 million and is expected to be recognized on a straight-line basis over a weighted-average period of 2 years. Share Unit Awards The grant date fair value for the PSUs subject to the market and/or a 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 for PSUs is being recognized as the requisite service period is fulfilled and assumes all performance goals will be met for performance periods not yet completed. The grant date fair value for RSUs and other performance-based share units is based on our stock price on the date of the grant. The following table summarizes activity relating to our share unit transactions: Year Ended Year Ended Year Ended Share units (number of shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested at the beginning of the period 2,825.9 $ 35.28 2,553.2 $ 40.71 2,507.6 $ 58.05 Granted (1) 2,308.5 30.74 1,554.6 32.42 1,550.5 34.86 Vested (904.8 ) 37.94 (931.9 ) 47.88 (941.2 ) 55.84 Forfeited (303.2 ) 33.67 (350.0 ) 28.61 (563.7 ) 76.53 Unvested at the end of the period 3,926.4 $ 32.24 2,825.9 $ 35.28 2,553.2 $ 40.71 (1) Grant activity includes 0.7 million , 0.2 million and 0.1 million of performance-based share units at target and shares earned for awards for which the performance period has been completed for 2019 , 2018 and 2017 , respectively. The total weighted average remaining contractual life and aggregate intrinsic value of unvested share units at September 30, 2019 was 1 year and $94 million , respectively. The fair value of share units vested was $25 million in 2019 , $26 million in 2018 and $33 million in 2017 . Total unrecognized compensation cost related to these awards at September 30, 2019 was approximately $81 million and is expected to be recognized over a weighted-average period of 2 |
Restructuring and Other Corpora
Restructuring and Other Corporate Matters | 12 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Programming Charges | RESTRUCTURING AND OTHER CORPORATE MATTERS In the year ended September 30, 2019 , we recognized restructuring charges of $73 million comprised of costs related to our 2018 program of cost transformation initiatives to improve our margins, as well as severance and other compensation charges of $41 million , recognized in the fourth fiscal quarter, substantially all in connection with the recently announced and pending merger. The restructuring charges, as detailed in the table below, included severance charges and exit costs principally resulting from vacating certain leased properties. In addition, we recognized expenses of $3 million of restructuring-related costs comprised of third-party professional services associated with the cost transformation initiatives, $40 million in connection with the settlement of a commercial dispute and $20 million of merger-related costs comprised primarily of legal and investment banking fees and other merger-related compensation charges. Restructuring and Other Corporate Matters (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 23 $ 14 $ 45 $ 82 Exit Costs 32 — — 32 Restructuring 55 14 45 114 Restructuring-related costs — — 3 3 Legal settlement 40 — — 40 Merger-related costs (1) — — 20 20 Total $ 95 $ 14 $ 68 $ 177 (1) Severance and merger-related costs include $10 million and $2 million , respectively, of equity-based compensation. In the year ended September 30, 2018, we recognized restructuring costs of $176 million , resulting from the program of cost transformation initiatives described above. Restructuring and Other Corporate Matters (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 133 $ 4 $ 1 $ 138 Exit costs 38 — — 38 Restructuring 171 4 1 176 Restructuring-related costs 1 — 48 49 Total $ 172 $ 4 $ 49 $ 225 (1) Includes equity-based compensation expense of $4 million . During 2017, we recognized restructuring costs of $237 million , resulting from the execution of our flagship brand strategy and strategic initiatives at Paramount. The charges, as detailed in the table below, include severance charges and a non-cash intangible asset impairment charge resulting from the decision to abandon an international trade name. The following table presents the restructuring costs incurred in 2017 by reportable segment: Restructuring (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 142 $ 50 $ 20 $ 212 Asset impairment 22 — — 22 Lease termination — 3 — 3 Restructuring $ 164 $ 53 $ 20 $ 237 (1) Includes equity-based compensation expense of $14 million . Our severance liability by reportable segment is as follows: Severance liability (in millions) Media Networks Filmed Entertainment Corporate Total September 30, 2017 $ 119 $ 45 $ 44 $ 208 Accruals 129 4 1 134 Severance payments (99 ) (26 ) (22 ) (147 ) September 30, 2018 149 23 23 195 Accruals 24 14 34 72 Severance payments (88 ) (24 ) (18 ) (130 ) September 30, 2019 $ 85 $ 13 $ 39 $ 137 As of September 30, 2019 , of the remaining $137 million liability, $111 million is classified within Other liabilities – current in the Consolidated Balance Sheet, with the remaining $26 million classified within Other liabilities – noncurrent . We expect to substantially complete these restructuring actions by December 31, 2019. Amounts classified as noncurrent are expected to be substantially paid through 2021, in accordance with applicable contractual terms. In addition, during 2019 and 2018, we made payments of $31 million and $14 million |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings from continuing operations before provision for income taxes consist of the following: Earnings from Continuing Operations before Provision for Income Taxes (in millions) Year Ended September 30, 2019 2018 2017 United States $ 1,325 $ 1,351 $ 1,647 International 682 646 565 Pre-tax earnings from continuing operations $ 2,007 $ 1,997 $ 2,212 The provision for income taxes from continuing operations consists of the following: Provision for Income Taxes from Continuing Operations (in millions) Year Ended September 30, 2019 2018 2017 Current provision for income taxes: Federal $ 210 $ 148 $ 312 State and local 42 32 43 International 153 134 112 Total current provision for income taxes 405 314 467 Deferred provision for income taxes 40 (45 ) (174 ) Provision for income taxes $ 445 $ 269 $ 293 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 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % 35.0 % State and local taxes, net of federal benefit 2.2 1.8 1.4 Effect of international operations 1.0 (3.5 ) (5.5 ) Bankruptcy of an investee (2.0 ) — — Qualified production activities deduction — (0.8 ) (3.0 ) Change in valuation allowance (0.1 ) — (1.4 ) Tax accounting method change — (3.9 ) — Tax Cuts and Jobs Act enactment — (7.3 ) — Foreign tax credits on distribution of securities — — (12.6 ) All other, net 0.1 2.7 (0.7 ) Effective tax rate, continuing operations 22.2 % 13.5 % 13.2 % We recognized a net discrete tax benefit of $47 million in 2019 , $200 million in 2018 and $340 million in 2017 , which served to reduce the provision for income taxes for those periods. The benefit in 2019 is principally related to the bankruptcy of an investee. The benefit in 2018 is principally related to the impact of the Tax Cuts and Jobs Act (the “Act”), as well as a tax accounting method change granted by the Internal Revenue Service (“IRS”). The impact of the Act includes a net discrete tax benefit of $226 million on our deferred tax balances and a tax expense of $81 million recorded on a net basis for the one-time transition tax on the deemed repatriation of indefinitely reinvested earnings of our international subsidiaries. The benefit in 2017 is principally related to the recognition of foreign tax credits realized during the fourth fiscal quarter of 2017 on the distribution to Viacom’s U.S. group of certain securities, the reversal of a valuation allowance on capital loss carryforwards in connection with the sale of our investment in EPIX and the release of tax reserves with respect to certain effectively settled tax positions. Total discrete tax benefits for all years provided may also include the impact of the gains on asset sales, restructuring and other corporate matters, programming charges, the net impact on debt extinguishment, investment impairment and gain on marketable securities. The Act provided for a reduction of the federal corporate income tax rate from 35% to 21% and a “transition tax” to be levied on the deemed repatriation of indefinitely reinvested earnings of international subsidiaries. In fiscal 2018, our federal statutory tax rate was a prorated rate of 24.5% . Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, provided a measurement period of one year from the date of enactment for which provisional amounts could be recorded. We completed our analysis with regard to the Act and therefore do not have any remaining provisional amounts recorded in the Consolidated Balance Sheet. The tax effects of the items recorded as deferred tax assets and liabilities are: Deferred Taxes (in millions) September 30, 2019 2018 Deferred tax assets: Accrued liabilities $ 82 $ 118 Postretirement and other employee benefits 204 167 Tax credit and loss carryforwards 118 131 All other 97 104 Total deferred tax assets 501 520 Valuation allowance (114 ) (87 ) Total deferred tax assets, net $ 387 $ 433 Deferred tax liabilities: Property, equipment and intangible assets $ (248 ) $ (419 ) Unbilled revenue (60 ) (80 ) Financing obligations (70 ) (70 ) Film & TV production expenditures (80 ) (124 ) Total deferred tax liabilities (458 ) (693 ) Deferred taxes, net $ (71 ) $ (260 ) We have recorded valuation allowances for certain deferred tax assets, which are primarily related to net operating losses in foreign jurisdictions, as sufficient uncertainty exists regarding the future realization of these assets. We have U.S. federal and state net operating loss carryforwards of $160 million and foreign tax credit carryforwards of $6 million at September 30, 2019 . The utilization of these carryforwards as an available offset to future tax is subject to limitations under current U.S. federal and state income tax laws. These carryforwards begin to expire in fiscal year 2029. In addition, we have $189 million of tax losses in various international jurisdictions that are primarily from countries with unlimited carryforward periods and $448 million of tax losses that expire in the fiscal years 2020 through 2036. The pre-valuation allowance deferred tax asset amount related to these U.S. and international carryforwards is $118 million . The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: Deferred Tax Assets / (Liabilities) (in millions) September 30, 2019 2018 Deferred tax assets $ 194 $ 36 Deferred tax liabilities (265 ) (296 ) Deferred taxes, net $ (71 ) $ (260 ) Deferred tax assets are included within Other assets in the Consolidated Balance Sheets. As a result of the enactment of the Act, the Company recorded a provisional transition tax on $999 million of previously indefinitely reinvested foreign earnings and repatriated substantially all of these earnings to the U.S. during fiscal year 2018. As a result of the enactment of the Act, cash from earnings of our international subsidiaries generated after December 31, 2017 can be repatriated to the U.S. without incremental U.S. federal tax under the Act. Therefore, beginning January 1, 2018, the Company no longer provides U.S. deferred income taxes on the unremitted future earnings of its international subsidiaries. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: Unrecognized Tax Benefits (in millions) Year Ended September 30, 2019 2018 2017 Balance at beginning of the period $ 179 $ 159 $ 164 Gross additions based on tax positions related to the current year 11 13 36 Gross additions for tax positions of prior years 8 39 6 Gross reductions for tax positions of prior years (12 ) (24 ) (14 ) Settlements — (3 ) (8 ) Expiration of the statute of limitation — (5 ) (25 ) Balance at end of the period $ 186 $ 179 $ 159 The total amount of unrecognized tax benefits at September 30, 2019 , 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 $11 million in 2019 , $9 million in 2018 and $9 million in 2017 . We had accruals of $27 million and $21 million related to interest and penalties recorded as a component of Other liabilities – noncurrent in the Consolidated Balance Sheets at September 30, 2019 and 2018 , respectively. We and our subsidiaries file income tax returns with the IRS and various state and international jurisdictions. The IRS began its examination of our 2014 and 2015 U.S. consolidated federal income tax returns in fiscal 2017. Tax authorities are also conducting examinations of Viacom subsidiaries in various international, state and local jurisdictions. Due to potential resolution of unrecognized tax positions involving multiple tax periods and jurisdictions, it is reasonably possible that a reduction of up to $85 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2019 | |
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 Anti-Dilutive Common Shares (in millions) Year Ended September 30, 2019 2018 2017 Weighted average number of common shares outstanding, basic 403.4 402.7 399.9 Dilutive effect of equity awards 0.4 0.3 0.7 Weighted average number of common shares outstanding, diluted 403.8 403.0 400.6 Anti-dilutive common shares 18.3 18.6 15.2 |
Supplemental Cash Flow
Supplemental Cash Flow | 12 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow | SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION Our supplemental cash flow information is as follows: Supplemental Cash Flow Information (in millions) Year Ended September 30, 2019 2018 2017 Cash paid for interest $ 509 $ 574 $ 635 Cash paid for income taxes $ 289 $ 133 $ 476 Cash paid for income taxes in 2018 reflects the benefits from the retroactive reenactment of legislation allowing for accelerated tax deductions on certain qualified film and television productions and a lower corporate U.S. income tax rate as a result of the Act. Foreign Exchange Contracts The fair value of our foreign exchange contracts was a liability of $9 million and $8 million as of September 30, 2019 and 2018 , respectively, as determined utilizing a market-based approach (Level 2 in the fair value hierarchy). 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 U.S., 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 Euro, the Canadian Dollar and the Australian Dollar. We also enter into forward contracts to hedge future production costs and programming obligations. We manage the use of foreign exchange derivatives centrally. The notional value of all foreign exchange contracts was $818 million and $642 million as of September 30, 2019 and 2018 , respectively. As of September 30, 2019 , $517 million related to future production costs and $301 million related to our foreign currency balances. As of September 30, 2018 , $345 million related to future production costs and $297 million |
Reportable Segments
Reportable Segments | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | REPORTABLE SEGMENTS The following tables set forth our financial performance by reportable segment. Our reportable segments have been determined in accordance with our internal management structure. We manage our operations through two reportable 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 licensing of Filmed Entertainment’s feature film and television content 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, when applicable. Revenues by Segment (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 9,883 $ 10,011 $ 10,096 Filmed Entertainment 3,079 3,041 3,289 Eliminations (124 ) (109 ) (122 ) Total revenues $ 12,838 $ 12,943 $ 13,263 Adjusted Operating Income/(Loss) (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 2,940 $ 3,128 $ 3,300 Filmed Entertainment 78 (39 ) (280 ) Corporate expenses (249 ) (238 ) (221 ) Eliminations (1 ) (1 ) 1 Equity-based compensation (52 ) (53 ) (54 ) Programming charges (1) (77 ) — (144 ) Restructuring and other corporate matters (2) (177 ) (225 ) (237 ) Gain on asset sale — — 127 Operating income 2,462 2,572 2,492 Interest expense, net (489 ) (560 ) (618 ) Equity in net earnings of investee companies 10 9 81 Gain on sale of EPIX — — 285 Other items, net 24 (24 ) (28 ) Earnings from continuing operations before provision for income taxes $ 2,007 $ 1,997 $ 2,212 (1) Included in Operating expenses in the Consolidated Statements of Earnings. (2) Includes equity-based compensation expense of $12 million , $4 million and $14 million for the years ended September 30, 2019 , 2018 and 2017 , respectively. Depreciation and Amortization Total Assets Depreciation and Amortization and Total Assets (in millions) Year Ended September 30, September 30, 2019 2018 2017 2019 2018 Media Networks $ 173 $ 169 $ 175 $ 17,743 $ 17,576 Filmed Entertainment 37 39 44 5,509 5,297 Corporate/Eliminations 5 5 4 419 910 Total $ 215 $ 213 $ 223 $ 23,671 $ 23,783 Capital Expenditures (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 143 $ 121 $ 164 Filmed Entertainment 46 51 27 Corporate 5 6 4 Total capital expenditures $ 194 $ 178 $ 195 During the first quarter of fiscal 2019, we changed our presentation of revenues by component to better align the revenue classification to the inherent nature of the underlying revenue transactions. Amounts previously reported as ancillary revenues in Media Networks were renamed to consumer products, recreation and live events. Further, certain components of Media Networks revenue, including syndication and download-to-own revenues, previously reported within ancillary revenues were reclassified to affiliate revenues. Amounts previously reported as feature film revenues in Filmed Entertainment were disaggregated among (i) theatrical, (ii) home entertainment and (iii) licensing. Prior period amounts have been recast to conform to the current presentation. Revenues by Component (in millions) Year Ended September 30, 2019 2018 2017 Media Networks: Advertising $ 4,652 $ 4,751 $ 4,862 Affiliate 4,828 4,802 4,824 Consumer products, recreation & live events 403 458 410 Filmed Entertainment: Theatrical 567 695 808 Home entertainment 646 622 849 Licensing 1,606 1,529 1,315 Ancillary 260 195 317 Eliminations (124 ) (109 ) (122 ) Total revenues $ 12,838 $ 12,943 $ 13,263 Revenues generated from international markets were approximately 27% , 29% and 28% of total consolidated revenues in 2019 , 2018 and 2017 , respectively. Our principal international businesses are in Europe. The United Kingdom and Germany together accounted for approximately 50% , 51% and 51% of total revenues in the Europe, Middle East and Africa (“EMEA”) region in 2019 , 2018 and 2017 , respectively. Revenues (1) Long-lived Assets (2) Geographic Information (in millions) Year Ended September 30, September 30, 2019 2018 2017 2019 2018 United States $ 9,349 $ 9,178 $ 9,497 $ 5,028 $ 4,777 EMEA 2,146 2,389 2,260 222 374 All other 1,343 1,376 1,506 226 187 Total $ 12,838 $ 12,943 $ 13,263 $ 5,476 $ 5,338 (1) Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. (2) Excludes deferred tax assets, goodwill, other intangible assets and investments. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS National Amusements, Inc. (“National Amusements”), directly and indirectly, is the controlling stockholder of both Viacom and CBS. National Amusements owns shares in Viacom representing approximately 79.8% of the voting interest in Viacom and approximately 10% of Viacom’s combined common stock. National Amusements is controlled by Sumner M. Redstone, our Chairman Emeritus, who is the Chairman and Chief Executive Officer of National Amusements, through the Sumner M. Redstone National Amusements Trust (the “SMR Trust”), which owns shares in National Amusements representing 80% of the voting interest of National Amusements. The shares representing the other 20% of the voting interest of National Amusements are held through a trust controlled by Shari E. Redstone, who is Mr. Redstone’s daughter, the non-executive Vice Chair of Viacom’s Board of Directors, the non-executive Vice Chair of CBS’s board of directors, and the President and a member of the Board of Directors of National Amusements. The shares of National Amusements held by the SMR Trust are voted solely by Mr. Redstone until such time as his incapacity or death. Upon Mr. Redstone’s incapacity or death, Ms. Redstone will also become a trustee of the SMR Trust and the shares of National Amusements held by the SMR Trust will be voted by the trustees of the SMR Trust. The current trustees include Mr. Redstone, who is also a member of the Board of Directors of National Amusements and serves as Chairman Emeritus of CBS. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee. On August 13, 2019, Viacom entered into a Merger Agreement with CBS. See Note 3 for further detail. Viacom and National Amusements Related Party Transactions National Amusements licenses films in the ordinary course of business for its movie theaters from all major studios, including Paramount. During the years ended September 30, 2019 , 2018 and 2017 , Paramount earned revenues from National Amusements in connection with these licenses in the aggregate amounts of approximately $6 million , $7 million and $7 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 (in millions) Year Ended September 30, 2019 2018 2017 Consolidated Statements of Earnings Revenues $ 112 $ 117 $ 138 Operating expenses $ 95 $ 142 $ 174 September 30, 2019 2018 Consolidated Balance Sheets Accounts receivable $ 7 $ 7 Participants’ share and residuals, current $ 42 $ 58 Program obligations, current 26 38 Program obligations, noncurrent 16 32 Other liabilities 1 2 Total due to CBS $ 85 $ 130 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 (in millions) Year Ended September 30, 2019 2018 2017 Consolidated Statements of Earnings Revenues $ 48 $ 49 $ 131 Operating expenses $ 6 $ 16 $ 67 Selling, general and administrative $ — $ — $ (7 ) September 30, 2019 2018 Consolidated Balance Sheets Accounts receivable $ 26 $ 43 Other assets 2 3 Total due from other related parties $ 28 $ 46 Accounts payable $ 5 $ 7 Other liabilities 1 2 Total due to other related parties $ 6 $ 9 All other related party transactions are not material in the periods presented. |
Quarterly Financial Data Unaudi
Quarterly Financial Data Unaudited | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | QUARTERLY FINANCIAL DATA (unaudited): 2019 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,090 $ 2,958 $ 3,357 $ 3,433 $ 12,838 Operating income $ 602 $ 573 $ 757 $ 530 $ 2,462 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 331 $ 368 $ 544 $ 319 $ 1,562 Net earnings (Viacom and noncontrolling interests) $ 334 $ 381 $ 550 $ 323 $ 1,588 Net earnings from continuing operations attributable to Viacom $ 318 $ 363 $ 538 $ 303 $ 1,522 Net earnings attributable to Viacom $ 321 $ 376 $ 544 $ 307 $ 1,548 Basic earnings per share, continuing operations attributable to Viacom $ 0.79 $ 0.90 $ 1.33 $ 0.75 $ 3.77 Basic earnings per share attributable to Viacom $ 0.80 $ 0.93 $ 1.35 $ 0.76 $ 3.84 Diluted earnings per share, continuing operations attributable to Viacom $ 0.79 $ 0.90 $ 1.33 $ 0.75 $ 3.77 Diluted earnings per share attributable to Viacom $ 0.80 $ 0.93 $ 1.35 $ 0.76 $ 3.83 The following are certain items identified as affecting comparability in 2019 : • Restructuring and other corporate matters: ◦ A pre-tax charge of $71 million , $24 million and $22 million ( $55 million , $18 million and $22 million after tax), comprised of restructuring and related costs in the first, second and fourth quarters, respectively. ◦ A pre-tax charge of $40 million ( $31 million after tax) in connection with the settlement of a commercial dispute in the second quarter. ◦ A pre-tax charge of $20 million ( $19 million after tax) related to merger-related costs associated with the pending merger with CBS in the fourth quarter. • A pre-tax charge of $77 million ( $59 million after tax) of programming charges in the first quarter. • A pre-tax debt extinguishment gain of $18 million ( $14 million after tax) resulting from the retirement of debt in the first quarter. • A pre-tax loss on marketable securities of $46 million ( $35 million after tax) in the first quarter and a pre-tax gain of $38 million ( $29 million after tax), $29 million ( $22 million after tax) and $11 million ( $8 million after tax) in the second through fourth quarters, respectively. • A net discrete tax benefit of $32 million in the third quarter and $15 million in the fourth quarter principally related to the tax benefit triggered by the bankruptcy of an investee. 2018 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,073 $ 3,148 $ 3,237 $ 3,485 $ 12,943 Operating income (1) $ 718 $ 456 $ 752 $ 646 $ 2,572 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 551 $ 264 $ 514 $ 399 $ 1,728 Net earnings (Viacom and noncontrolling interests) $ 553 $ 274 $ 525 $ 407 $ 1,759 Net earnings from continuing operations attributable to Viacom $ 535 $ 256 $ 511 $ 386 $ 1,688 Net earnings attributable to Viacom $ 537 $ 266 $ 522 $ 394 $ 1,719 Basic earnings per share, continuing operations attributable to Viacom $ 1.33 $ 0.64 $ 1.27 $ 0.96 $ 4.19 Basic earnings per share attributable to Viacom $ 1.33 $ 0.66 $ 1.30 $ 0.98 $ 4.27 Diluted earnings per share, continuing operations attributable to Viacom $ 1.33 $ 0.64 $ 1.27 $ 0.96 $ 4.19 Diluted earnings per share attributable to Viacom $ 1.33 $ 0.66 $ 1.29 $ 0.98 $ 4.27 (1) Pursuant to the adoption of ASU 2017-07, $1 million was retrospectively reclassified from Selling, general and administrative to Other items, net in both the first and fourth quarter. The following are certain items identified as affecting comparability in 2018 : • Restructuring and other corporate matters: ◦ A pre-tax charge of $185 million ( $141 million after tax), reflecting $123 million of severance, $40 million of exit costs and $22 million related costs comprised of third-party professional services in the second quarter. ◦ A pre-tax charge of $15 million ( $11 million after tax), comprised of third-party professional services in the third quarter. ◦ A pre-tax charge of $25 million ( $18 million after tax), reflecting $15 million of severance, reduction of $2 million related to exit costs and $12 million of other related costs in the fourth quarter. • A pre-tax debt extinguishment gain of $25 million ( $19 million after tax) resulting from the retirement of debt in the first quarter. • A pre-tax and after tax gain of $16 million resulting from the sale of 1% equity interest in Viacom18 to our joint venture partner in the second quarter. • A pre-tax impairment loss of $46 million ( $36 million after tax) in connection with the write-off of a cost method investment in the second quarter. • A net discrete tax benefit of $103 million , $46 million , $47 million , and $4 million |
Schedule ll - Valuation and Qua
Schedule ll - Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | VIACOM INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions) Beginning of period Additions - expense and other Deductions End of period Year Ended September 30, 2019 (1) : Allowance for doubtful accounts $ 45 $ 20 $ (18 ) $ 47 Deferred tax valuation allowance $ 87 $ 37 $ (10 ) $ 114 Year Ended September 30, 2018: Allowance for doubtful accounts $ 49 $ 22 $ (26 ) $ 45 Sales returns and allowances $ 79 $ 148 $ (163 ) $ 64 Deferred tax valuation allowance $ 156 $ 5 $ (74 ) $ 87 Year Ended September 30, 2017: Allowance for doubtful accounts $ 44 $ 26 $ (21 ) $ 49 Sales returns and allowances $ 93 $ 186 $ (200 ) $ 79 Deferred tax valuation allowance $ 195 $ 19 $ (58 ) $ 156 (1) Pursuant to the adoption of ASC 606, sales returns and allowances were reclassified to Other Liabilities - current on the Consolidated Balance Sheet, which was previously presented as a reduction to Receivables, net |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
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. |
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 Translation and Remeasurement | Foreign Currency Translation and Remeasurement 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 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. Effective July 1, 2018, Argentina has been designated as a highly inflationary economy. Subsidiaries’ transactions denominated in currencies other than their functional currency will result in remeasurement gains and losses, which are reflected within Other items, net |
Revenue Recognition | Revenue Recognition We recognize revenue when control of a good or service is transferred to a customer. We consider control to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Significant judgments in the determination of the amount and timing of revenue from contracts with customers include the identification of distinct performance obligations in contracts containing bundled advertising sales and content licenses and the allocation of the consideration among individual performance obligations within these arrangements based on their relative standalone selling prices. Advertising Revenues : Revenue from the sale of advertising earned by the Media Networks segment is recognized when the advertisement is aired. Advertising revenues are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. To the extent amounts billed exceed the amount of revenue recognized by applying the measure of progress, such amounts are deferred until the impression guarantee has been satisfied. For arrangements that do not include impression guarantees, the individual spots are the performance obligation, and consideration is allocated among the individual advertising spots based on relative standalone selling prices. Affiliate Revenues : In the Media Networks segment, content is primarily distributed through its live network feeds via content license arrangements with affiliate partners, including cable television operators, direct-to-home satellite operators and mobile networks. We also license our content through television, subscription video-on-demand (“SVOD”) and over-the-top (“OTT”) distributors, syndication and transactional video-on-demand. As discussed further in the Filmed Entertainment Revenues section below, revenue associated with these arrangements is recognized upon a transfer of control, which occurs upon delivery and availability for use by the licensee. Affiliate revenues from cable television operators, direct-to-home satellite television operators and mobile networks are recognized by the Media Networks segment as the live feeds are provided to the distributor, representing a transfer of control. The performance obligation under such affiliate agreements is a license to our content via the continuous delivery of live linear feeds, and may also include a license to programming for video-on-demand (“VOD”) viewing. Both performance obligations are satisfied over the term of the agreement. The majority of our affiliate revenues relate to sales-based royalties for which we receive a contractual rate per subscriber. Revenue for these contracts is recognized when the sale to the end customer occurs, which is generally concurrent with the delivery of the linear feeds based on the number of subscribers the customer has at the time of delivery. Consumer Products, Recreation and Live Events Revenues : Revenue associated with consumer products, recreation and live event contracts is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. When consumer products and recreation agreements include minimum guaranteed consideration, revenue is recognized as sales occur by the licensee or ratably if the sales-based consideration is not expected to exceed a minimum guaranteed amount of consideration. For live events, we recognize revenue when the event is held. Filmed Entertainment Revenues : In the Filmed Entertainment segment, we license our content through theatrical releases, television, SVOD and OTT distributors, and through transactional video-on-demand. We also distribute our films through DVD and Blu-ray sales through wholesale and retail partners. Revenue from the licensing of film and television exhibition rights, including broadcast and cable television networks, SVOD and other OTT services, is recognized upon a transfer of control, which occurs upon delivery and availability for use by the licensee. Each individual title delivered represents a separate performance obligation. For renewals or extensions of licensing arrangements, revenue related to the renewal or extension is recognized upon the start of the renewal or extension period to the extent the content has been delivered to the customer. SVOD and other OTT arrangements include content made available to distributors on one or more dates for a fixed fee. Consideration for such arrangements is allocated among the titles and episodes based on relative standalone selling prices. Estimation of standalone selling prices requires judgment, which can impact the timing and amount of revenue that we recognize. In determining the transaction price of a contract, an adjustment is made if payment from our customer occurs either significantly before or after performance, resulting in a significant financing component. Applying a practical expedient in the new standard, we do not assess whether a significant financing component exists if the period between when we perform our obligations under the contract and when the customer pays is one year or less. In transactional video-on-demand and similar arrangements, our performance obligation is to provide the content to our distribution customers that provide our content to end users. These contracts provide for sales-based royalties based on the number of underlying transactions with end users. Revenue for transactional video-on-demand and similar arrangements is recognized as the content is exhibited based on end-customer purchases as reported by distributors. Similarly, revenue from licensing of our content through electronic sell-through means is recognized as each title is downloaded by the end customer, as the customer is able to use the license immediately upon download. For sales of DVDs and Blu-ray discs to wholesalers and retailers, revenue is recognized upon the later of physical delivery to the customer or the date that restrictions on sales by the retailers are lifted. Theatrical revenue is recognized from theatrical distribution of films during the exhibition period. These agreements take the form of sales-based royalties and revenue is recognized when the sale to the end customer occurs. 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 sales returns and allowances are recorded as a liability in the Consolidated Balance Sheet. Our reserve for sales returns and allowances was $56 million and $64 million at September 30, 2019 and 2018 , respectively. Subsequent to the adoption of ASC 606, the reserve for sales returns and allowances is presented in Other Liabilities - current , and prior to the adoption it was presented as a reduction to Receivables, net. Reserves for accounts receivable are based on amounts estimated to be uncollectible and are recorded as a contra-receivable. Our allowance for doubtful accounts was $47 million and $45 million at September 30, 2019 and 2018 , respectively. Gross versus Net Revenue : We earn and recognize revenues under certain third-party distribution and outsourced advertising sales agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of which party controls the good or service being transferred to the customer. |
Revenue Allowances | 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 sales returns and allowances are recorded as a liability in the Consolidated Balance Sheet. Our reserve for sales returns and allowances was $56 million and $64 million at September 30, 2019 and 2018 , respectively. Subsequent to the adoption of ASC 606, the reserve for sales returns and allowances is presented in Other Liabilities - current , and prior to the adoption it was presented as a reduction to Receivables, net. Reserves for accounts receivable are based on amounts estimated to be uncollectible and are recorded as a contra-receivable. Our allowance for doubtful accounts was $47 million and $45 million at September 30, 2019 and 2018 , respectively. |
Advertising Expense | Advertising Expense We expense advertising costs as they are incurred. We incurred total advertising expenses of $1.118 billion in 2019 , $917 million in 2018 and $1.335 billion in 2017 . |
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. |
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. Deferred tax assets and deferred tax liabilities are classified as noncurrent and are included in Other Assets and Deferred tax liabilities, net , respectively, within the Consolidated Balance Sheets. We have elected to account for the effects of global intangible low tax income as a component of income tax expense in the period the tax arises. 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 | 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 and unrealized gains and losses on certain derivative financial instruments. Prior to the adoption of ASU 2016-01 comprehensive income also included unrealized gains and losses on publicly traded investments in equity securities. |
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 television productions (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, television and acquired programming inventories are included as a component of Inventory, net , in the Consolidated Balance Sheets. Film, television and acquired programming costs, including inventory amortization, development costs, residuals and participations and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. Film and television production costs : We use an individual-film-forecast-computation method to amortize film costs and to accrue estimated liabilities for residuals and participations 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. The estimate of ultimate revenues impacts the timing of amortization and accrual of residuals and participations. Our estimate of ultimate revenues for feature films includes 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 residuals and participations 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. Capitalized original programming costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s ultimate revenues based on genre and historical experience, beginning with the month of initial exhibition. Original programming costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the television program is less than the unamortized production cost or abandoned. Acquired programming : Costs incurred in acquiring program rights, including advances, 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 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. |
Goodwill, Intangible Assets and Other Long-Lived Assets | Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the residual difference between the consideration paid for a business and the fair value of 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 based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. |
Investments | Investments Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other equity investments are carried at fair value, where readily determinable values exist. For equity investments without readily determinable fair values, we have elected to apply the measurement alternative and account for the equity investments initially at cost with subsequent adjustments for changes in observable prices less impairment. Gains and losses resulting from the changes in fair value of equity investments are recorded in the Consolidated Statements of Earnings. Prior to the adoption of ASU 2016-01, we recorded the unrealized gains and losses on publicly traded equity investments in other comprehensive income, and accounted for all other equity investments, not accounted for under the equity method, at cost. We monitor our investments for impairment 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. Certain assets are measured and recorded at fair value on a non-recurring basis. Film and television production costs, goodwill, intangible assets, and equity method investments are recorded at fair value only if an impairment charge is recognized. Impairment charges, if applicable, are determined using discounted cash flows, which is a Level 3 valuation technique. |
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 |
Pension Benefits | Pension Benefits Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans, which are currently frozen to future benefit accruals. The expense is determined using certain assumptions, including, among others, the expected long-term rate of return and discount rate. Net periodic benefit cost, other than service cost, if any, is presented in the Consolidated Statements of Earnings within Other items, net. 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. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Tables (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer - Tables - PL & SOE [Abstract] | |
Statement of Earnings Under Previous Revenue Recognition Guidance [Table Text Block] | Consolidated Statement of Earnings Impact (in millions, except per share amounts) Year Ended September 30, 2019 Revenues $ (90 ) Operating expenses (51 ) Operating income (39 ) Provision for income taxes (9 ) Net earnings from continuing operations $ (30 ) Net earnings (Viacom and noncontrolling interests) $ (30 ) Net earnings attributable to Viacom $ (30 ) Basic EPS from continuing operations $ (0.07 ) Diluted EPS from continuing operations $ (0.07 ) |
Balance Sheet Effect Under Previous Revenue Recognition Guidance [Table Text Block] | Consolidated Balance Sheet Impact (in millions) September 30, 2019 ASSETS Receivables, net $ (18 ) Inventory, net (8 ) Prepaid and other assets (1 ) Other assets 103 LIABILITIES AND EQUITY Accrued expenses $ 1 Participants’ share and residuals (current) 6 Other liabilities (current) (39 ) Participants’ share and residuals (noncurrent) 43 Other liabilities (noncurrent) (11 ) Retained earnings 76 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Acquisition [Abstract] | |
Pluto TV Purchase Price Allocation | The following table summarizes our allocation of the purchase price as of the acquisition date for Pluto TV. Purchase Price Allocation (in millions) Receivables $ 31 Prepaid and other assets 3 Goodwill 277 Intangible assets 41 Other assets, noncurrent 8 Assets acquired 360 Accounts payable 27 Accrued expenses 4 Other liabilities 5 Liabilities assumed 36 $ 324 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment (Table) | Property and Equipment, net (in millions) September 30, Estimated Life (in years) 2019 2018 Land $ 251 $ 251 — Buildings 484 468 up to 40 Capital leases 136 193 up to 15 Equipment and other 2,200 2,101 up to 20 Property and equipment 3,071 3,013 Accumulated depreciation (2,149 ) (2,094 ) Property and equipment, net $ 922 $ 919 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory (in millions) September 30, 2019 2018 Film inventory: Released, net of amortization $ 409 $ 454 Completed, not yet released 94 11 In process and other 861 713 1,364 1,178 Television production: Released, net of amortization 56 6 In process and other 185 201 241 207 Original programming: Released, net of amortization 1,120 1,124 In process and other 893 757 2,013 1,881 Acquired program rights, net of amortization 1,119 1,411 Home entertainment inventory 61 67 Total inventory, net 4,798 4,744 Less current portion 775 896 Noncurrent portion $ 4,023 $ 3,848 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table details the change in goodwill by segment for 2019 and 2018 : Goodwill (in millions) Media Networks Filmed Entertainment Total Balance at September 30, 2017 $ 10,072 $ 1,593 $ 11,665 Acquisitions 56 — 56 Foreign currency translation (112 ) — (112 ) Balance at September 30, 2018 10,016 1,593 11,609 Acquisitions 286 — 286 Foreign currency translation (38 ) — (38 ) Balance at September 30, 2019 $ 10,264 $ 1,593 $ 11,857 |
Intangibles | The following table details our intangible asset balances by major asset classes: Intangibles (in millions) September 30, 2019 2018 Finite-lived intangible assets: Trade names $ 203 $ 194 Licenses 148 149 Subscriber agreements 56 55 Other intangible assets 249 185 656 583 Accumulated amortization on finite-lived intangible assets: Trade names (99 ) (87 ) Licenses (34 ) (28 ) Subscriber agreements (53 ) (51 ) Other intangible assets (150 ) (138 ) (336 ) (304 ) Finite-lived intangible assets, net 320 279 Indefinite-lived intangible assets 34 34 Total intangibles, net $ 354 $ 313 |
Amortization of Intangibles | We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2019 to be as follows for each of the next five fiscal years: Amortization of Intangibles (in millions) 2020 2021 2022 2023 2024 Amortization expense $ 43 $ 35 $ 33 $ 30 $ 28 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Our total debt consists of the following: Debt (in millions) September 30, 2019 2018 Senior Notes and Debentures: Senior notes due September 2019, 5.625% $ — $ 550 Senior notes due December 2019, 2.750% 90 252 Senior notes due March 2021, 4.500% 498 497 Senior notes due December 2021, 3.875% 597 596 Senior notes due February 2022, 2.250% 49 102 Senior notes due June 2022, 3.125% 194 194 Senior notes due March 2023, 3.250% 181 181 Senior notes due September 2023, 4.250% 1,241 1,239 Senior notes due April 2024, 3.875% 489 488 Senior notes due October 2026, 3.450% 123 474 Senior debentures due December 2034, 4.850% 86 281 Senior debentures due April 2036, 6.875% 1,069 1,068 Senior debentures due October 2037, 6.750% 75 75 Senior debentures due February 2042, 4.500% 45 62 Senior debentures due March 2043, 4.375% 1,108 1,102 Senior debentures due June 2043, 4.875% 18 32 Senior debentures due September 2043, 5.850% 1,231 1,230 Senior debentures due April 2044, 5.250% 345 345 Junior Debentures: Junior subordinated debentures due February 2057, 5.875% 643 642 Junior subordinated debentures due February 2057, 6.250% 643 642 Capital lease and other obligations 13 30 Total debt 8,738 10,082 Less current portion 98 567 Noncurrent portion $ 8,640 $ 9,515 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Change in Benefit Obligation | 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, 2019 and 2018 , respectively: Change in Benefit Obligation (in millions) Year Ended 2019 2018 Benefit obligation, beginning of period $ 945 $ 999 Interest cost 38 35 Actuarial loss/(gain) 189 (47 ) Benefits paid (44 ) (42 ) Benefit obligation, end of period $ 1,128 $ 945 |
Change in Plan Assets | Change in Plan Assets (in millions) Year Ended 2019 2018 Fair value of plan assets, beginning of period $ 543 $ 544 Actual return on plan assets 10 29 Employer contributions 20 12 Benefits paid (44 ) (42 ) Fair value of plan assets, end of period $ 529 $ 543 |
Funded Status | Funded status (in millions) September 30, 2019 2018 Funded status $ (599 ) $ (402 ) |
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 tables 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 (in millions) September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation $ 771 $ 637 $ 357 $ 308 $ 1,128 $ 945 Fair value of plan assets 529 543 — — 529 543 Funded status (242 ) (94 ) (357 ) (308 ) (599 ) (402 ) |
Net Periodic Benefit Costs | Our net periodic benefit cost under Viacom’s pension plans consists of the following: Net Periodic Benefit Costs (in millions) Year Ended September 30, 2019 2018 2017 Interest cost $ 38 $ 35 $ 33 Expected return on plan assets (40 ) (40 ) (37 ) Recognized actuarial loss 6 7 7 Net periodic benefit costs $ 4 $ 2 $ 3 |
Unrecognized Benefit 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 (in millions) September 30, 2019 2018 Unrecognized actuarial loss $ 494 $ 281 |
Other Comprehensive Income | The amounts recognized in other comprehensive income are: Other Comprehensive Income (in millions) Year Ended September 30, 2019 2018 2017 Net actuarial loss/(gain) $ 219 $ (36 ) $ (32 ) Recognized actuarial loss (6 ) (7 ) (7 ) Total pre-tax loss/(gain) $ 213 $ (43 ) $ (39 ) |
Key Assumptions | Year Ended Key Assumptions 2019 2018 Weighted-average assumptions - benefit obligations Discount rate 3.26 % 4.38 % Weighted-average assumptions - net periodic costs Discount rate 4.15 % 3.54 % Expected long-term return on plan assets 7.50 % 7.50 % |
Asset Allocations of Funded Pension Plan | The percentage of asset allocation of our funded pension plan at September 30, 2019 , by asset category was as follows: September 30, Asset Allocation of Funded Pension Plan 2019 Return seeking 71 % Liability hedging 22 Cash and cash equivalents 7 Total 100 % |
Fair Value of Plan Assets | The following table sets forth the plan’s assets at fair value as of September 30, 2019 and 2018 . 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 2018 to 2019 . 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 (in millions) September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Cash and Cash Equivalents (1) $ 36 $ 5 $ — $ — $ 36 $ 5 Return Seeking Equity Securities: Viacom Class B Common Stock 6 9 6 9 — — Core Fixed Income U.S. treasury securities — 15 — — — 15 Municipal & government issued bonds — 1 — — — 1 Corporate bonds (2) — 44 — — — 44 Mortgage-backed & asset-backed securities — 47 — — — 47 Fair value of plan assets in the fair value hierarchy 42 121 6 9 36 112 Investments measured at net asset value (3) (4) Return Seeking Diversified equity and credit funds 327 — Equity securities - world funds — 318 Equity securities - emerging markets — 27 Debt securities - emerging markets — 19 Debt securities - multi-strategy 45 58 Liability Hedging Treasury US rate funds (TURF) 115 — Total fair value of plan assets $ 529 $ 543 (1) Assets categorized as Level 2 reflect investments in money market funds. (2) Securities of diverse industries, substantially all investment grade. (3) Reflects investments in common/collective trust funds and limited partnerships. (4) In accordance with the accounting guidance, certain investments that are measured at fair value using net asset value per share practical expedient have not been classified in the fair value hierarchy. |
Future Benefit Payments | The estimated future benefit payments for the next ten fiscal years are as follows: Future Benefit Payments (in millions) 2020 2021 2022 2023 2024 2025-2029 Pension benefits $ 45 $ 47 $ 49 $ 53 $ 55 $ 311 |
Redeemable NCI (Tables)
Redeemable NCI (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The activity reflected within redeemable noncontrolling interest for the fiscal years 2019 , 2018 and 2017 is presented below. Redeemable Noncontrolling Interest (in millions) Year Ended September 30, 2019 2018 2017 Beginning balance $ 246 $ 248 $ 211 Net earnings 17 20 17 Distributions (16 ) (16 ) (16 ) Translation adjustment (13 ) (6 ) 7 Redemption value adjustment 7 — 29 Ending balance $ 241 $ 246 $ 248 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations | The following table summarizes the Company’s significant commitments and expected payments by fiscal year as of September 30, 2019 : Contractual Obligations (in millions) Total 2020 2021 2022 2023 2024 Thereafter Off-Balance Sheet Arrangements Programming and talent commitments (1) $ 1,981 $ 676 $ 462 $ 382 $ 261 $ 140 $ 60 Operating leases (2) 1,398 183 168 148 115 107 677 Purchase obligations (3) 1,207 525 403 218 27 18 16 On-Balance Sheet Arrangements Capital lease obligations (4) $ 15 $ 8 $ 6 $ — $ — $ — $ 1 Debt (5) 9,134 90 500 845 1,432 492 5,775 Interest payments (6) 8,620 457 444 421 399 343 6,556 Other long-term obligations (7) 2,196 1,407 511 200 62 16 — (1) Programming and talent commitments include $1.449 billion relating to media networks programming and $532 million for talent contracts. (2) Operating leases include long-term non-cancelable operating lease commitments for office space, equipment, transponders, studio facilities and vehicles. (3) Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including open purchase orders. (4) Capital lease obligations include capital leases for satellite transponders. (5) Represents face value at maturity. (6) Interest payments on our junior subordinated debentures subsequent to the expiration of their fixed-rate periods have been included based on their current fixed rates. (7) Other long-term obligations principally consist of participations, residuals and programming obligations for content that is available for airing. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | The components of Accumulated other comprehensive loss are as follows: Accumulated Other Comprehensive Loss (in millions) September 30, 2019 2018 2017 Foreign currency translation adjustments $ (675 ) $ (568 ) $ (405 ) Defined benefit pension plans (407 ) (229 ) (221 ) Cash flow hedges 9 6 8 Available for sale securities — 54 — Total $ (1,073 ) $ (737 ) $ (618 ) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Cost Recognized in Earnings | Presented below is a summary of the compensation cost we recognized in the accompanying Consolidated Statements of Earnings: Equity-Based Compensation Expense (in millions) Year Ended September 30, 2019 2018 2017 Recognized in earnings: Stock options $ 13 $ 14 $ 15 Share units 39 39 39 Compensation cost included in SG&A expense 52 53 54 Compensation cost included in Restructuring and other corporate matters (1) 12 4 14 Total compensation cost in earnings $ 64 $ 57 $ 68 Tax benefit recognized $ 10 $ 12 $ 23 Capitalized equity-based compensation expense $ 4 $ 3 $ 2 (1) |
Weighted Average Fair Value of Awards and Assumptions | 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 2019 2018 2017 Weighted average fair value of grants $ 7.31 $ 8.83 $ 7.48 Weighted average assumptions: Expected stock price volatility 30.1 % 36.7 % 28.4 % Expected term of options (in years) 5.0 5.3 4.9 Risk-free interest rate 2.9 % 2.5 % 1.9 % Expected dividend yield 2.6 % 2.6 % 2.3 % |
Stock Option Transactions | The following table summarizes information about our stock option transactions: Year Ended Year Ended Year Ended Stock Options (number of options in thousands) Options Weighted average exercise price Options Weighted average exercise price Options Weighted average exercise price Outstanding at the beginning of the period 15,740.6 $ 50.43 15,591.5 $ 52.85 19,596.2 $ 51.54 Granted 2,941.7 30.86 2,415.1 31.02 2,874.8 34.86 Exercised — — (59.8 ) 30.12 (4,814.7 ) 35.72 Forfeited or expired (5,067.6 ) 56.08 (2,206.2 ) 46.86 (2,064.8 ) 55.25 Outstanding at the end of the period 13,614.7 $ 44.10 15,740.6 $ 50.43 15,591.5 $ 52.85 Exercisable at the end of the period 7,780.1 $ 53.17 10,999.5 $ 57.20 9,331.8 $ 57.85 |
Stock Option Exercises | The following table summarizes information relating to stock option exercises during the periods presented: Year Ended September 30, Stock Option Exercises (in millions) 2019 2018 2017 Proceeds from stock option exercises $ — $ 2 $ 172 Intrinsic value $ — $ — $ 42 Excess tax benefit/(shortfall) $ — $ — $ (3 ) |
Share Units | The following table summarizes activity relating to our share unit transactions: Year Ended Year Ended Year Ended Share units (number of shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested at the beginning of the period 2,825.9 $ 35.28 2,553.2 $ 40.71 2,507.6 $ 58.05 Granted (1) 2,308.5 30.74 1,554.6 32.42 1,550.5 34.86 Vested (904.8 ) 37.94 (931.9 ) 47.88 (941.2 ) 55.84 Forfeited (303.2 ) 33.67 (350.0 ) 28.61 (563.7 ) 76.53 Unvested at the end of the period 3,926.4 $ 32.24 2,825.9 $ 35.28 2,553.2 $ 40.71 (1) Grant activity includes 0.7 million , 0.2 million and 0.1 million of performance-based share units at target and shares earned for awards for which the performance period has been completed for 2019 , 2018 and 2017 , respectively. |
Restructuring and Other Corpo_2
Restructuring and Other Corporate Matters (Tables) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring and other corporate matters (Table) | Restructuring and Other Corporate Matters (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 23 $ 14 $ 45 $ 82 Exit Costs 32 — — 32 Restructuring 55 14 45 114 Restructuring-related costs — — 3 3 Legal settlement 40 — — 40 Merger-related costs (1) — — 20 20 Total $ 95 $ 14 $ 68 $ 177 (1) Severance and merger-related costs include $10 million and $2 million , respectively, of equity-based compensation. | Restructuring and Other Corporate Matters (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 133 $ 4 $ 1 $ 138 Exit costs 38 — — 38 Restructuring 171 4 1 176 Restructuring-related costs 1 — 48 49 Total $ 172 $ 4 $ 49 $ 225 (1) Includes equity-based compensation expense of $4 million . | The following table presents the restructuring costs incurred in 2017 by reportable segment: Restructuring (in millions) Year Ended Media Networks Filmed Entertainment Corporate Total Severance (1) $ 142 $ 50 $ 20 $ 212 Asset impairment 22 — — 22 Lease termination — 3 — 3 Restructuring $ 164 $ 53 $ 20 $ 237 (1) Includes equity-based compensation expense of $14 million . |
Severance Liability Rollforward (Table) | Our severance liability by reportable segment is as follows: Severance liability (in millions) Media Networks Filmed Entertainment Corporate Total September 30, 2017 $ 119 $ 45 $ 44 $ 208 Accruals 129 4 1 134 Severance payments (99 ) (26 ) (22 ) (147 ) September 30, 2018 149 23 23 195 Accruals 24 14 34 72 Severance payments (88 ) (24 ) (18 ) (130 ) September 30, 2019 $ 85 $ 13 $ 39 $ 137 |
Income Taxes (Tables)
Income Taxes (Tables) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income taxes [Line Items] | |||
Deferred Tax Assets and Liabilities included in the Balance Sheets [Table Text Block] | The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: Deferred Tax Assets / (Liabilities) (in millions) September 30, 2019 2018 Deferred tax assets $ 194 $ 36 Deferred tax liabilities (265 ) (296 ) Deferred taxes, net $ (71 ) $ (260 ) | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% |
Foreign Earnings Repatriated | $ 999 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 81 | ||
Earnings from Continuing Operations before Provision for Income Taxes | Earnings from continuing operations before provision for income taxes consist of the following: Earnings from Continuing Operations before Provision for Income Taxes (in millions) Year Ended September 30, 2019 2018 2017 United States $ 1,325 $ 1,351 $ 1,647 International 682 646 565 Pre-tax earnings from continuing operations $ 2,007 $ 1,997 $ 2,212 | ||
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 (in millions) Year Ended September 30, 2019 2018 2017 Current provision for income taxes: Federal $ 210 $ 148 $ 312 State and local 42 32 43 International 153 134 112 Total current provision for income taxes 405 314 467 Deferred provision for income taxes 40 (45 ) (174 ) Provision for income taxes $ 445 $ 269 $ 293 | ||
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 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % 35.0 % State and local taxes, net of federal benefit 2.2 1.8 1.4 Effect of international operations 1.0 (3.5 ) (5.5 ) Bankruptcy of an investee (2.0 ) — — Qualified production activities deduction — (0.8 ) (3.0 ) Change in valuation allowance (0.1 ) — (1.4 ) Tax accounting method change — (3.9 ) — Tax Cuts and Jobs Act enactment — (7.3 ) — Foreign tax credits on distribution of securities — — (12.6 ) All other, net 0.1 2.7 (0.7 ) Effective tax rate, continuing operations 22.2 % 13.5 % 13.2 % | ||
Deferred Tax Assets / (Liabilities) | The tax effects of the items recorded as deferred tax assets and liabilities are: Deferred Taxes (in millions) September 30, 2019 2018 Deferred tax assets: Accrued liabilities $ 82 $ 118 Postretirement and other employee benefits 204 167 Tax credit and loss carryforwards 118 131 All other 97 104 Total deferred tax assets 501 520 Valuation allowance (114 ) (87 ) Total deferred tax assets, net $ 387 $ 433 Deferred tax liabilities: Property, equipment and intangible assets $ (248 ) $ (419 ) Unbilled revenue (60 ) (80 ) Financing obligations (70 ) (70 ) Film & TV production expenditures (80 ) (124 ) Total deferred tax liabilities (458 ) (693 ) Deferred taxes, net $ (71 ) $ (260 ) | ||
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 (in millions) Year Ended September 30, 2019 2018 2017 Balance at beginning of the period $ 179 $ 159 $ 164 Gross additions based on tax positions related to the current year 11 13 36 Gross additions for tax positions of prior years 8 39 6 Gross reductions for tax positions of prior years (12 ) (24 ) (14 ) Settlements — (3 ) (8 ) Expiration of the statute of limitation — (5 ) (25 ) Balance at end of the period $ 186 $ 179 $ 159 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Weighted Average Number of 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 Anti-Dilutive Common Shares (in millions) Year Ended September 30, 2019 2018 2017 Weighted average number of common shares outstanding, basic 403.4 402.7 399.9 Dilutive effect of equity awards 0.4 0.3 0.7 Weighted average number of common shares outstanding, diluted 403.8 403.0 400.6 Anti-dilutive common shares 18.3 18.6 15.2 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information (Tables) | Our supplemental cash flow information is as follows: Supplemental Cash Flow Information (in millions) Year Ended September 30, 2019 2018 2017 Cash paid for interest $ 509 $ 574 $ 635 Cash paid for income taxes $ 289 $ 133 $ 476 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Revenues by Segment (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 9,883 $ 10,011 $ 10,096 Filmed Entertainment 3,079 3,041 3,289 Eliminations (124 ) (109 ) (122 ) Total revenues $ 12,838 $ 12,943 $ 13,263 |
Adjusted Operating Income (Loss) | Adjusted Operating Income/(Loss) (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 2,940 $ 3,128 $ 3,300 Filmed Entertainment 78 (39 ) (280 ) Corporate expenses (249 ) (238 ) (221 ) Eliminations (1 ) (1 ) 1 Equity-based compensation (52 ) (53 ) (54 ) Programming charges (1) (77 ) — (144 ) Restructuring and other corporate matters (2) (177 ) (225 ) (237 ) Gain on asset sale — — 127 Operating income 2,462 2,572 2,492 Interest expense, net (489 ) (560 ) (618 ) Equity in net earnings of investee companies 10 9 81 Gain on sale of EPIX — — 285 Other items, net 24 (24 ) (28 ) Earnings from continuing operations before provision for income taxes $ 2,007 $ 1,997 $ 2,212 (1) Included in Operating expenses in the Consolidated Statements of Earnings. (2) Includes equity-based compensation expense of $12 million , $4 million and $14 million for the years ended September 30, 2019 , 2018 and 2017 , respectively. |
Depreciation and Amortization and Total Assets | Depreciation and Amortization Total Assets Depreciation and Amortization and Total Assets (in millions) Year Ended September 30, September 30, 2019 2018 2017 2019 2018 Media Networks $ 173 $ 169 $ 175 $ 17,743 $ 17,576 Filmed Entertainment 37 39 44 5,509 5,297 Corporate/Eliminations 5 5 4 419 910 Total $ 215 $ 213 $ 223 $ 23,671 $ 23,783 |
Capital Expenditures | Capital Expenditures (in millions) Year Ended September 30, 2019 2018 2017 Media Networks $ 143 $ 121 $ 164 Filmed Entertainment 46 51 27 Corporate 5 6 4 Total capital expenditures $ 194 $ 178 $ 195 |
Revenues by Component | Revenues by Component (in millions) Year Ended September 30, 2019 2018 2017 Media Networks: Advertising $ 4,652 $ 4,751 $ 4,862 Affiliate 4,828 4,802 4,824 Consumer products, recreation & live events 403 458 410 Filmed Entertainment: Theatrical 567 695 808 Home entertainment 646 622 849 Licensing 1,606 1,529 1,315 Ancillary 260 195 317 Eliminations (124 ) (109 ) (122 ) Total revenues $ 12,838 $ 12,943 $ 13,263 |
Geographic Information | Revenues (1) Long-lived Assets (2) Geographic Information (in millions) Year Ended September 30, September 30, 2019 2018 2017 2019 2018 United States $ 9,349 $ 9,178 $ 9,497 $ 5,028 $ 4,777 EMEA 2,146 2,389 2,260 222 374 All other 1,343 1,376 1,506 226 187 Total $ 12,838 $ 12,943 $ 13,263 $ 5,476 $ 5,338 (1) Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. (2) Excludes deferred tax assets, goodwill, other intangible assets and investments. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |
Related Persons Transactions Disclosure [Table Text Block] | The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements: CBS Related Party Transactions (in millions) Year Ended September 30, 2019 2018 2017 Consolidated Statements of Earnings Revenues $ 112 $ 117 $ 138 Operating expenses $ 95 $ 142 $ 174 September 30, 2019 2018 Consolidated Balance Sheets Accounts receivable $ 7 $ 7 Participants’ share and residuals, current $ 42 $ 58 Program obligations, current 26 38 Program obligations, noncurrent 16 32 Other liabilities 1 2 Total due to CBS $ 85 $ 130 |
Related Parties Transactions Disclosure [Table Text Block] | 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 (in millions) Year Ended September 30, 2019 2018 2017 Consolidated Statements of Earnings Revenues $ 48 $ 49 $ 131 Operating expenses $ 6 $ 16 $ 67 Selling, general and administrative $ — $ — $ (7 ) September 30, 2019 2018 Consolidated Balance Sheets Accounts receivable $ 26 $ 43 Other assets 2 3 Total due from other related parties $ 28 $ 46 Accounts payable $ 5 $ 7 Other liabilities 1 2 Total due to other related parties $ 6 $ 9 |
Quarterly Financial Data Unau_2
Quarterly Financial Data Unaudited (Tables) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Quarterly Financial Data | 2019 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,090 $ 2,958 $ 3,357 $ 3,433 $ 12,838 Operating income $ 602 $ 573 $ 757 $ 530 $ 2,462 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 331 $ 368 $ 544 $ 319 $ 1,562 Net earnings (Viacom and noncontrolling interests) $ 334 $ 381 $ 550 $ 323 $ 1,588 Net earnings from continuing operations attributable to Viacom $ 318 $ 363 $ 538 $ 303 $ 1,522 Net earnings attributable to Viacom $ 321 $ 376 $ 544 $ 307 $ 1,548 Basic earnings per share, continuing operations attributable to Viacom $ 0.79 $ 0.90 $ 1.33 $ 0.75 $ 3.77 Basic earnings per share attributable to Viacom $ 0.80 $ 0.93 $ 1.35 $ 0.76 $ 3.84 Diluted earnings per share, continuing operations attributable to Viacom $ 0.79 $ 0.90 $ 1.33 $ 0.75 $ 3.77 Diluted earnings per share attributable to Viacom $ 0.80 $ 0.93 $ 1.35 $ 0.76 $ 3.83 | 2018 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,073 $ 3,148 $ 3,237 $ 3,485 $ 12,943 Operating income (1) $ 718 $ 456 $ 752 $ 646 $ 2,572 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 551 $ 264 $ 514 $ 399 $ 1,728 Net earnings (Viacom and noncontrolling interests) $ 553 $ 274 $ 525 $ 407 $ 1,759 Net earnings from continuing operations attributable to Viacom $ 535 $ 256 $ 511 $ 386 $ 1,688 Net earnings attributable to Viacom $ 537 $ 266 $ 522 $ 394 $ 1,719 Basic earnings per share, continuing operations attributable to Viacom $ 1.33 $ 0.64 $ 1.27 $ 0.96 $ 4.19 Basic earnings per share attributable to Viacom $ 1.33 $ 0.66 $ 1.30 $ 0.98 $ 4.27 Diluted earnings per share, continuing operations attributable to Viacom $ 1.33 $ 0.64 $ 1.27 $ 0.96 $ 4.19 Diluted earnings per share attributable to Viacom $ 1.33 $ 0.66 $ 1.29 $ 0.98 $ 4.27 |
Basis of Presentation Statement
Basis of Presentation Statement of Earnings - Previous Revenue Recognition Effect (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenues | $ 3,433 | $ 3,357 | $ 2,958 | $ 3,090 | $ 3,485 | $ 3,237 | $ 3,148 | $ 3,073 | $ 12,838 | $ 12,943 | $ 13,263 |
Costs and Expenses | 10,376 | 10,371 | 10,898 | ||||||||
Operating income | 530 | 757 | 573 | 602 | 646 | 752 | 456 | 718 | 2,462 | 2,572 | 2,492 |
Income Tax Expense (Benefit) | 445 | 269 | 293 | ||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | 319 | 544 | 368 | 331 | 399 | 514 | 264 | 551 | 1,562 | 1,728 | 1,919 |
Net earnings (Viacom and noncontrolling interests) | 323 | 550 | 381 | 334 | 407 | 525 | 274 | 553 | 1,588 | 1,759 | 1,922 |
Net Income (Loss) Attributable to Parent | $ 307 | $ 544 | $ 376 | $ 321 | $ 394 | $ 522 | $ 266 | $ 537 | $ 1,548 | $ 1,719 | $ 1,874 |
Continuing operations (in usd per share) | $ 0.75 | $ 1.33 | $ 0.90 | $ 0.79 | $ 0.96 | $ 1.27 | $ 0.64 | $ 1.33 | $ 3.77 | $ 4.19 | $ 4.68 |
Continuing operations (in usd per share) | $ 0.75 | $ 1.33 | $ 0.90 | $ 0.79 | $ 0.96 | $ 1.27 | $ 0.64 | $ 1.33 | $ 3.77 | $ 4.19 | $ 4.67 |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenues | $ (90) | ||||||||||
Costs and Expenses | (51) | ||||||||||
Operating income | (39) | ||||||||||
Income Tax Expense (Benefit) | (9) | ||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | (30) | ||||||||||
Net earnings (Viacom and noncontrolling interests) | (30) | ||||||||||
Net Income (Loss) Attributable to Parent | $ (30) | ||||||||||
Continuing operations (in usd per share) | $ (0.07) | ||||||||||
Continuing operations (in usd per share) | $ (0.07) |
Basis of Presentation Balance S
Basis of Presentation Balance Sheet - Previous Revenue Recognition effect (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Receivables, Net, Current | $ 3,299 | $ 3,117 | $ 3,141 |
Inventory, net | 775 | 896 | |
Prepaid Expense and Other Assets, Current | 460 | 482 | |
Other Assets, Noncurrent | 1,221 | 1,018 | |
Accrued Liabilities, Current | 927 | 848 | |
Participants Share And Residuals Current | 740 | 719 | |
Other Liabilities, Current | 472 | 427 | |
Participants' share and residuals, noncurrent1 | 492 | 523 | |
Other Liabilities, Noncurrent | 1,392 | 1,186 | |
Retained earnings | 19,887 | $ 18,561 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Receivables, Net, Current | (18) | ||
Inventory, net | (8) | ||
Prepaid Expense and Other Assets, Current | (1) | ||
Other Assets, Noncurrent | 103 | ||
Accrued Liabilities, Current | 1 | ||
Participants Share And Residuals Current | 6 | ||
Other Liabilities, Current | (39) | ||
Participants' share and residuals, noncurrent1 | 43 | ||
Other Liabilities, Noncurrent | (11) | ||
Retained earnings | $ 76 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019USD ($)country | Dec. 31, 2018USD ($) | Jun. 30, 2019 | Sep. 30, 2019USD ($)Segmentcountry | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2018USD ($) | |
Number of Countries in which Entity Operates | country | 180 | 180 | |||||
Number of Reportable Segments | Segment | 2 | ||||||
Retained earnings | $ 19,887 | $ 19,887 | $ 18,561 | ||||
Net Cash Provided by (Used in) Operating Activities | 1,576 | 1,822 | $ 1,705 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 4 | 2 | 3 | ||||
Accounting Standards Update 2014-09 [Member] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 106 | ||||||
Accounting Standards Update 2016-16 | |||||||
Retained earnings | $ 165 | ||||||
Accounting Standards Update 2016-15 [Member] | |||||||
Net Cash Provided by (Used in) Operating Activities | 33 | ||||||
Accounting Standards Update 2016-01 [Member] | |||||||
Accumulated Other Comprehensive Income (Loss), Equity Securities, Available-for-sale, Adjustment, after Tax | 54 | 54 | |||||
Accounting Standards Update 2017-07 [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1 | $ 1 | $ 2 | $ 3 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||
Contract with Customer, Right to Recover Product, Current | 56 | 56 | |||||
Retained earnings | $ 76 | $ 76 | |||||
Minimum [Member] | Accounting Standards Update 2016-16 | |||||||
Amortization Period of Deferred Tax Assets | 12 years | ||||||
Maximum [Member] | Accounting Standards Update 2016-16 | |||||||
Amortization Period of Deferred Tax Assets | 15 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Percentage of acquired business recorded at fair value | 100.00% | ||
Reserve for sales returns and allowances | $ 56 | $ 64 | |
Allowance for doubtful accounts | 47 | 45 | |
Advertising expense incurred by the Company | $ 1,118 | $ 917 | $ 1,335 |
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 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years |
CBS Merger Agreement (Details)
CBS Merger Agreement (Details) | 12 Months Ended |
Sep. 30, 2019shares | |
ViacomCBS Class A Shares [Member] | |
Conversion of Stock, Shares Converted | 0.59625 |
ViacomCBS Class B Shares [Member] [Member] | |
Conversion of Stock, Shares Converted | 0.59625 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) | Mar. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ 319,000,000 | $ 544,000,000 | $ 368,000,000 | $ 331,000,000 | $ 399,000,000 | $ 514,000,000 | $ 264,000,000 | $ 551,000,000 | $ 1,562,000,000 | $ 1,728,000,000 | $ 1,919,000,000 | |
PlutoTV [Domain] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 324,000,000 | |||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | $ 18,000,000 | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||||||||
Net earnings from continuing operations (Viacom and noncontrolling interests) | $ 0 | |||||||||||
WhoSay, VidCon, Awesomeness TV [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 87,000,000 | |||||||||||
Telefe [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 336,000,000 |
Acquisition - Purchase Price Al
Acquisition - Purchase Price Allocation (Details) - PlutoTV [Domain] - USD ($) $ in Millions | Nov. 15, 2016 | Mar. 01, 2019 |
Business Acquisition [Line Items] | ||
Receivables | $ 31 | |
Prepaid and other assets | 3 | |
Goodwill | 277 | |
Intangible assets | 41 | |
Other assets, noncurrent | 8 | |
Assets acquired | 360 | |
Accounts payable | 27 | |
Accrued expenses | $ 4 | |
Other liabilities | 5 | |
Liabilities assumed | 36 | |
Purchase Price Allocation | $ 324 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | May 11, 2017 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Investments [Line Items] | |||||||||
Investments | $ 496 | $ 496 | $ 410 | ||||||
Marketable Securities, Gain (Loss) | (11) | $ (29) | $ (38) | $ 46 | (32) | ||||
Equity Securities without Readily Determinable Fair Value, Amount | 139 | 139 | |||||||
Cost-method Investments, Other than Temporary Impairment | $ 46 | 46 | $ 10 | ||||||
Value of equity method investments | 245 | 245 | 241 | ||||||
Gain on sale of equity method investment | 0 | 0 | 285 | ||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 106 | 106 | 72 | ||||||
Proceeds received from asset sales | 5 | 57 | 848 | ||||||
Gain on asset sale | $ 0 | 0 | $ 127 | ||||||
Viacom18 | |||||||||
Investments [Line Items] | |||||||||
Equity interest in investees | 1.00% | 1.00% | |||||||
Proceeds from sale of equity method investment | $ 20 | ||||||||
Gain on sale of equity method investment | $ 16 | 16 | |||||||
EPIX | |||||||||
Investments [Line Items] | |||||||||
Equity interest in investees | 49.76% | ||||||||
Proceeds from sale of equity method investment | $ 593 | ||||||||
Transaction costs associated with disposition of equity method investment | 4 | ||||||||
Gain on sale of equity method investment | 285 | ||||||||
Proceeds from Equity Method Investment, Distribution | $ 37 | ||||||||
Operating and Broadcast Rights | |||||||||
Investments [Line Items] | |||||||||
Proceeds received from asset sales | 147 | ||||||||
Gain on asset sale | 127 | ||||||||
Gain on asset sale, NCI portion | 11 | ||||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||
Investments [Line Items] | |||||||||
Marketable Securities | $ 112 | 112 | 80 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||||
Investments [Line Items] | |||||||||
Liabilities | $ 9 | $ 9 | $ 5 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 3,071 | $ 3,013 |
Accumulated depreciation | (2,149) | (2,094) |
Property and equipment, net | 922 | 919 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | 251 | 251 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 484 | 468 |
Property, Plant and Equipment, Useful Life | 40 years | |
Capital leases | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 136 | 193 |
Property, Plant and Equipment, Useful Life | 15 years | |
Equipment and other | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 2,200 | $ 2,101 |
Property, Plant and Equipment, Useful Life | 20 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property and Equipment [Abstract] | |||
Depreciation expense | $ 175 | $ 182 | $ 194 |
Amortization of capital leases | 13 | 15 | $ 16 |
Accumulated amortization of capital leases | $ 128 | $ 172 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Film inventory: | ||
Released, net of amortization | $ 409 | $ 454 |
Completed, not yet released | 94 | 11 |
In process and other | 861 | 713 |
Television production: | ||
Released, net of amortization | 56 | 6 |
In process and other | 185 | 201 |
Original programming: | ||
Released, net of amortization | 1,120 | 1,124 |
In process and other | 893 | 757 |
Acquired program rights, net of amortization | 1,119 | 1,411 |
Home entertainment inventory | 61 | 67 |
Total inventory, net | 4,798 | 4,744 |
Less current portion | 775 | 896 |
Noncurrent portion | 4,023 | 3,848 |
Film Inventory | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | 1,364 | 1,178 |
Television Productions | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | 241 | 207 |
Original Programming | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | $ 2,013 | $ 1,881 |
Inventory - Narrative (Details)
Inventory - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2017 | |
Amortization Of Inventory Costs In Upcoming Fiscal Year | $ 1,400 | ||
Percent To Be Amortized Over Three Years Of Inventory Costs | 87.00% | ||
Unamortized Inventory In Years | 3 years | ||
Programming charges | $ 77 | $ 77 | $ 144 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 11,609 | $ 11,665 |
Acquisitions | 286 | 56 |
Foreign currency translation | (38) | (112) |
Ending balance | 11,857 | 11,609 |
Media Networks | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,016 | 10,072 |
Acquisitions | 286 | 56 |
Foreign currency translation | (38) | (112) |
Ending balance | 10,264 | 10,016 |
Filmed Entertainment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,593 | 1,593 |
Acquisitions | 0 | 0 |
Foreign currency translation | 0 | 0 |
Ending balance | $ 1,593 | $ 1,593 |
Intangibles (Details)
Intangibles (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | $ 656 | $ 583 |
Finite lived intangible assets - accumulated amortization | (336) | (304) |
Finite-lived intangible assets, net | 320 | 279 |
Indefinite-lived intangible assets | 34 | 34 |
Total intangibles, net | 354 | 313 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 203 | 194 |
Finite lived intangible assets - accumulated amortization | (99) | (87) |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 148 | 149 |
Finite lived intangible assets - accumulated amortization | (34) | (28) |
Subscriber agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 56 | 55 |
Finite lived intangible assets - accumulated amortization | (53) | (51) |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 249 | 185 |
Finite lived intangible assets - accumulated amortization | $ (150) | $ (138) |
Goodwill and Intangibles Intang
Goodwill and Intangibles Intangibles - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 40 | $ 31 | $ 29 |
Amortization of Intangibles (De
Amortization of Intangibles (Details) $ in Millions | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 43 |
2021 | 35 |
2022 | 33 |
2023 | 30 |
2024 | $ 28 |
Debt Schedule (Details)
Debt Schedule (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Capital lease and other obligations | $ 13 | $ 30 |
Total debt | 8,738 | 10,082 |
Less current portion | 98 | 567 |
Noncurrent portion | 8,640 | 9,515 |
Senior notes due September 2019, 5.625% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 0 | 550 |
Coupon rate | 5.625% | |
Senior notes due December 2019, 2.750% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 90 | 252 |
Coupon rate | 2.75% | |
Senior notes due March 2021, 4.500% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 498 | 497 |
Coupon rate | 4.50% | |
Senior notes due December 2021, 3.875% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 597 | 596 |
Coupon rate | 3.875% | |
Senior notes due February 2022, 2.250% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 49 | 102 |
Coupon rate | 2.25% | |
Senior notes due June 2022, 3.125% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 194 | 194 |
Coupon rate | 3.125% | |
Senior notes due March 2023, 3.250% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 181 | 181 |
Coupon rate | 3.25% | |
Senior notes due September 2023, 4.250% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,241 | 1,239 |
Coupon rate | 4.25% | |
Senior notes due April 2024, 3.875% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 489 | 488 |
Coupon rate | 3.875% | |
Senior notes due October 2026, 3.450% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 123 | 474 |
Coupon rate | 3.45% | |
Senior debentures due December 2034, 4.850% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 86 | 281 |
Coupon rate | 4.85% | |
Senior debentures due April 2036, 6.875% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,069 | 1,068 |
Coupon rate | 6.875% | |
Senior debentures due October 2037, 6.750% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 75 | 75 |
Coupon rate | 6.75% | |
Senior debentures due February 2042, 4.500% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 45 | 62 |
Coupon rate | 4.50% | |
Senior debentures due March 2043, 4.375% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,108 | 1,102 |
Coupon rate | 4.375% | |
Senior debentures due June 2043, 4.875% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 18 | 32 |
Coupon rate | 4.875% | |
Senior debentures due September 2043, 5.850% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,231 | 1,230 |
Coupon rate | 5.85% | |
Senior debentures due April 2044, 5.250% | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 345 | 345 |
Coupon rate | 5.25% | |
Junior subordinated debentures due February 2057, 5.875% | ||
Debt Instrument [Line Items] | ||
Junior Subordinated Notes | $ 643 | 642 |
Coupon rate | 5.875% | |
Junior subordinated debentures due February 2057, 6.250% | ||
Debt Instrument [Line Items] | ||
Junior Subordinated Notes | $ 643 | $ 642 |
Coupon rate | 6.25% |
Notes and Debentures - Narrativ
Notes and Debentures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Feb. 28, 2027 | Feb. 28, 2022 | |
Debt Instrument [Line Items] | |||||||
Repayments of Debt | $ 220 | ||||||
Gain (Loss) on Extinguishment of Debt | $ 18 | $ 25 | |||||
Unamortized net discount related to senior notes and debentures | 409 | $ 431 | |||||
Fair value of senior notes and debentures | $ 10,100 | 10,500 | |||||
Junior Debentures And Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 2,600 | ||||||
Senior Notes due February 2022, 2.250% and October 2026, 3.450% | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate Terms | The interest rate on these Senior Notes would increase by 0.25% upon each credit agency downgrade up to a maximum of 2.00%, and would similarly be decreased for subsequent upgrades. | ||||||
Senior Notes and Senior and Junior Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 1,128 | 1,039 | 3,331 | ||||
Repayments of Debt | 1,100 | 1,000 | 3,333 | ||||
Gain (Loss) on Extinguishment of Debt | 18 | 25 | (20) | ||||
Write off of Deferred Debt Issuance Cost | $ 10 | $ 14 | $ 18 | ||||
Junior subordinated debentures due February 2057, 5.875% | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 5.875% | ||||||
Debt Instrument, Interest Rate Terms | Our 5.875% junior subordinated debentures accrue interest at a fixed rate of 5.875% until February 28, 2022, on which date the rate will switch to a floating rate based on three-month LIBOR plus 3.895%, reset quarterly. | ||||||
Junior subordinated debentures due February 2057, 5.875% | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 3.899% | 3.895% | |||||
Junior subordinated debentures due February 2057, 6.250% | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 6.25% | ||||||
Debt Instrument, Interest Rate Terms | Our 6.250% junior subordinated debentures accrue interest at a fixed rate of 6.250% until February 28, 2027, on which date the rate will switch to a floating rate based on three-month LIBOR plus 3.899%, reset quarterly. | ||||||
Senior notes due February 2022, 2.250% | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 2.25% | ||||||
Senior notes due October 2026, 3.450% | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 3.45% |
Credit Facility - Narrative (De
Credit Facility - Narrative (Details) - Revolving Credit Agreement - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 0 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 | |
Debt Instrument Margin Rate, Percentage Rate, Range Minimum | 1.00% | |
Debt Instrument Margin Rate, Percentage Rate, Range Maximum | 1.625% | |
Line of Credit Facility, Covenant Terms | The credit facility has one principal financial covenant that requires our total consolidated leverage to be less than 4.50x (which we may elect to increase to 5.0x for up to four consecutive quarters following a qualifying acquisition) as of the last day of each fiscal quarter. We met this covenant as of September 30, 2019. Total consolidated leverage is the ratio of our consolidated indebtedness as of the last day of each quarter to the consolidated EBITDA (each as defined in the amended credit agreement) for the trailing twelve-month period. |
Commercial Paper - Narrative (D
Commercial Paper - Narrative (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Disclosure [Abstract] | ||
Commercial Paper, at Carrying Value | $ 0 | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of period | $ 945 | $ 999 | |
Interest cost | 38 | 35 | $ 33 |
Actuarial loss/(gain) | 189 | (47) | |
Benefits paid | (44) | (42) | |
Benefit obligation, end of period | $ 1,128 | $ 945 | $ 999 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | $ 543 | $ 544 |
Actual return on plan assets | 10 | 29 |
Employer contributions | 20 | 12 |
Benefits paid | (44) | (42) |
Fair value of plan assets, end of period | $ 529 | $ 543 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Funded Status (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Retirement Benefits [Abstract] | ||
Funded status | $ (599) | $ (402) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,128 | $ 945 |
Fair value of plan assets | 529 | 543 |
Funded status | (599) | (402) |
Funded Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 771 | 637 |
Fair value of plan assets | 529 | 543 |
Funded status | (242) | (94) |
Unfunded Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 357 | 308 |
Fair value of plan assets | 0 | 0 |
Funded status | $ (357) | $ (308) |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 38 | $ 35 | $ 33 |
Expected return on plan assets | (40) | (40) | (37) |
Recognized actuarial loss | 6 | 7 | 7 |
Net periodic benefit costs | $ 4 | $ 2 | $ 3 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Unrecognized Benefit Cost (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | |
Unrecognized actuarial loss | $ 494 | $ 281 |
Unrecognized actuarial loss, next fiscal year | $ 12 | |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 71.00% | |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 22.00% | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 7.00% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net actuarial loss | $ 219 | $ (36) | $ (32) |
Recognized actuarial loss | (6) | (7) | (7) |
Total pre-tax loss | $ 213 | $ (43) | $ (39) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Key Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted-average assumptions - benefit obligations | ||
Discount rate | 3.26% | 4.38% |
Weighted-average assumptions - net periodic costs | ||
Discount rate | 4.15% | 3.54% |
Expected long-term return on plan assets | 7.50% | 7.50% |
Defined Benefit Plan Effect Of Twenty-Five Basis Point Change On Accumulated Benefit Obligation | $ 46 | |
Defined Benefit Plan Effect Of Twenty Five Basis Point Of Discount Rate Or Expected Rate of Return On Plan Assets | $ 1 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Asset Allocations of Funded Pension Plan (Details) | Sep. 30, 2019 | Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percent Of Plan Assets Of Company Stock | 1.00% | 2.00% |
Minimum | Return seeking | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | |
Minimum | Liability hedging | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% | |
Minimum | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |
Maximum [Member] | Return seeking | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 90.00% | |
Maximum [Member] | Liability hedging | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | |
Maximum [Member] | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash and Cash Equivalents | [1] | $ 36 | $ 5 |
Viacom Class B Common Stock | 6 | 9 | |
U.S. treasury securities | 0 | 15 | |
Municipal & government issued bonds | 0 | 1 | |
Corporate bonds | [2] | 0 | 44 |
Mortgage-backed & asset-backed securities | 0 | 47 | |
Fair value of plan assets in the fair value hierarchy | 42 | 121 | |
Diversified equity and credit funds | [3],[4] | 327 | 0 |
Equity securities - world funds | [3],[4] | 0 | 318 |
Equity securities - emerging markets | [3],[4] | 0 | 27 |
Debt securities - emerging markets | [3],[4] | 0 | 19 |
Debt securities - multi-strategy | [3],[4] | 45 | 58 |
Treasury US rate funds (TURF) | 115 | 0 | |
Total fair value of plan assets | 529 | 543 | |
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | |
Viacom Class B Common Stock | 6 | 9 | |
U.S. treasury securities | 0 | 0 | |
Municipal & government issued bonds | 0 | 0 | |
Corporate bonds | 0 | 0 | |
Mortgage-backed & asset-backed securities | 0 | 0 | |
Fair value of plan assets in the fair value hierarchy | 6 | 9 | |
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash and Cash Equivalents | [1] | 36 | 5 |
Viacom Class B Common Stock | 0 | 0 | |
U.S. treasury securities | 0 | 15 | |
Municipal & government issued bonds | 0 | 1 | |
Corporate bonds | [2] | 0 | 44 |
Mortgage-backed & asset-backed securities | 0 | 47 | |
Fair value of plan assets in the fair value hierarchy | $ 36 | $ 112 | |
[1] | Assets categorized as Level 2 reflect investments in money market funds. | ||
[2] | Securities of diverse industries, substantially all investment grade. | ||
[3] | In accordance with the accounting guidance, certain investments that are measured at fair value using net asset value per share practical expedient have not been classified in the fair value hierarchy. | ||
[4] | Reflects investments in common/collective trust funds and limited partnerships. |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Future Benefit Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 45 |
2021 | 47 |
2022 | 49 |
2023 | 53 |
2024 | 55 |
2025 - 2029 | $ 311 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - 401(k) Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 48 | $ 52 | $ 53 |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits - Multiemployer Benefit Plans - Narrative (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Multiemployer Plans [Line Items] | |||
Number Of Listings On Form 5500 | 1 | ||
Number Of Green Filed Zone Statuses | 1 | ||
Multiemployer Plans, Pension | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 62 | $ 61 | $ 49 |
Multiemployer Plans, Postretirement Benefit | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 86 | $ 69 | $ 57 |
Redeemable NCI (Details)
Redeemable NCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 246 | $ 248 | $ 211 |
Net earnings | 17 | 20 | 17 |
Distributions | (16) | (16) | (16) |
Translation adjustment | (13) | (6) | 7 |
Redemption value adjustment | 7 | 0 | 29 |
Ending balance | $ 241 | $ 246 | $ 248 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations Table (Details) $ in Millions | Sep. 30, 2019USD ($) | |
Off-Balance Sheet Arrangements | Programming and Talent Commitments | ||
Other Commitments [Line Items] | ||
Contractual Obligation | $ 1,981 | [1] |
Contractual Obligation, Due in Next Fiscal Year | 676 | [1] |
Contractual Obligation, Due in Second Year | 462 | [1] |
Contractual Obligation, Due in Third Year | 382 | [1] |
Contractual Obligation, Due in Fourth Year | 261 | [1] |
Contractual Obligation, Due in Fifth Year | 140 | [1] |
Contractual Obligation, Due after Fifth Year | 60 | [1] |
Off-Balance Sheet Arrangements | Programming and Talent Commitments | Media Networks Programming Commitments | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 1,449 | |
Off-Balance Sheet Arrangements | Programming and Talent Commitments | Talent Contracts Commitments | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 532 | |
Off-Balance Sheet Arrangements | Operating Leases | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 1,398 | [2] |
Contractual Obligation, Due in Next Fiscal Year | 183 | [2] |
Contractual Obligation, Due in Second Year | 168 | [2] |
Contractual Obligation, Due in Third Year | 148 | [2] |
Contractual Obligation, Due in Fourth Year | 115 | [2] |
Contractual Obligation, Due in Fifth Year | 107 | [2] |
Contractual Obligation, Due after Fifth Year | 677 | [2] |
Off-Balance Sheet Arrangements | Purchase Obligations | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 1,207 | [3] |
Contractual Obligation, Due in Next Fiscal Year | 525 | [3] |
Contractual Obligation, Due in Second Year | 403 | [3] |
Contractual Obligation, Due in Third Year | 218 | [3] |
Contractual Obligation, Due in Fourth Year | 27 | [3] |
Contractual Obligation, Due in Fifth Year | 18 | [3] |
Contractual Obligation, Due after Fifth Year | 16 | [3] |
On-Balance Sheet Arrangements | Capital Lease Obligations | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 15 | [4] |
Contractual Obligation, Due in Next Fiscal Year | 8 | [4] |
Contractual Obligation, Due in Second Year | 6 | [4] |
Contractual Obligation, Due in Third Year | 0 | [4] |
Contractual Obligation, Due in Fourth Year | 0 | [4] |
Contractual Obligation, Due in Fifth Year | 0 | [4] |
Contractual Obligation, Due after Fifth Year | 1 | [4] |
On-Balance Sheet Arrangements | Debt | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 9,134 | [5] |
Contractual Obligation, Due in Next Fiscal Year | 90 | [5] |
Contractual Obligation, Due in Second Year | 500 | [5] |
Contractual Obligation, Due in Third Year | 845 | [5] |
Contractual Obligation, Due in Fourth Year | 1,432 | [5] |
Contractual Obligation, Due in Fifth Year | 492 | [5] |
Contractual Obligation, Due after Fifth Year | 5,775 | [5] |
On-Balance Sheet Arrangements | Interest Payments | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 8,620 | [6] |
Contractual Obligation, Due in Next Fiscal Year | 457 | [6] |
Contractual Obligation, Due in Second Year | 444 | [6] |
Contractual Obligation, Due in Third Year | 421 | [6] |
Contractual Obligation, Due in Fourth Year | 399 | [6] |
Contractual Obligation, Due in Fifth Year | 343 | [6] |
Contractual Obligation, Due after Fifth Year | 6,556 | [6] |
On-Balance Sheet Arrangements | Other Long-Term Obligations | ||
Other Commitments [Line Items] | ||
Contractual Obligation | 2,196 | [7] |
Contractual Obligation, Due in Next Fiscal Year | 1,407 | [7] |
Contractual Obligation, Due in Second Year | 511 | [7] |
Contractual Obligation, Due in Third Year | 200 | [7] |
Contractual Obligation, Due in Fourth Year | 62 | [7] |
Contractual Obligation, Due in Fifth Year | 16 | [7] |
Contractual Obligation, Due after Fifth Year | $ 0 | [7] |
[1] | Programming and talent commitments include $1.449 billion relating to media networks programming and $532 million for talent contracts. | |
[2] | Operating leases include long-term non-cancelable operating lease commitments for office space, equipment, transponders, studio facilities and vehicles. | |
[3] | Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including open purchase orders. | |
[4] | Capital lease obligations include capital leases for satellite transponders. | |
[5] | Represents face value at maturity. | |
[6] | Interest payments on our junior subordinated debentures subsequent to the expiration of their fixed-rate periods have been included based on their current fixed rates. | |
[7] | Other long-term obligations principally consist of participations, residuals and programming obligations for content that is available for airing. |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Future minimum sublease income | $ 27 | ||
Interest included in future capital lease payments | 1 | ||
Rent expense | 248 | $ 266 | $ 267 |
Recorded liability for lease indemnifications | 106 | ||
Outstanding letters of credit | $ 36 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class of Stock [Line Items] | |||
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 | $ 0.001 | ||
Preferred Stock Shares Outstanding | 0 | 0 | |
Stock repurchase program remaining capacity | $ 4,900 | ||
Stock repurchase program authorized amount | $ 20,000 | ||
Treasury Stock, Shares, Acquired | 0 | 0 | 0 |
Purchase of treasury stock | $ 0 | $ 0 | $ 0 |
Common Class A | |||
Class of Stock [Line Items] | |||
Common Stock Authorized | 375,000,000 | 375,000,000 | |
Common Class B | |||
Class of Stock [Line Items] | |||
Common Stock Authorized | 5,000,000,000 | 5,000,000,000 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Equity [Abstract] | |||
Foreign currency translation adjustments | $ (675) | $ (568) | $ (405) |
Defined benefit pension plans | (407) | (229) | (221) |
Cash flow hedges | 9 | 6 | 8 |
Available for sale securities | 0 | 54 | 0 |
Total | $ (1,073) | $ (737) | $ (618) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 | |
Receivables, Net, Current | $ 3,299 | $ 3,117 | $ 3,141 |
Deferred Revenue, Current | 438 | 402 | $ 398 |
Contract with Customer, Liability, Revenue Recognized | 342 | ||
Revenue, Remaining Performance Obligation, Amount | $ 2,700 | ||
Revenue, remaining performance obligation, period | 10 years | ||
Revenue, remaining performance obligation, period - Period when majority of Unsatisfied revenue will be recognized | 3 years | ||
Other Noncurrent Assets [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | $ 416 | 380 | |
Contract liabilities, noncurrent (included in Other liabilities) [Member] | |||
Contract with Customer, Liability | 53 | $ 67 | |
Filmed Entertainment [Member] | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 167 |
Equity Based Compensation - Nar
Equity Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ / shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restructuring Reserves Period Expense | $ 177 | $ 225 | $ 237 |
Treasury Shares | 392.5 | 393.1 | |
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 | 2 years | ||
Unrecognized compensation costs related to unvested stock options | $ 31 | ||
Weighted average period of unrecognized compensation recognition related to unvested stock options | 2 years | ||
Other Equity Based Awards [Abstract] | |||
Weighted average remaining contractual life of unvested share units | 1 year | ||
Aggregate intrinsic value of unvested share units | $ 94 | ||
Fair value of share units vested | $ 25 | $ 26 | $ 33 |
Unrecognized compensation costs related to share units | $ 81 | ||
Weighted average period of unrecognized compensation recognition related to share units | 2 years | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 8 years | ||
Award vesting period | 4 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 | ||
Minimum Percentage of Target Award | 0.00% | ||
Maximum Percentage of Target Award | 200.00% | ||
Terms of 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, and for PSUs including an earnings per share goal if earnings per share performance is less than 80% of the target earnings per share, the target grant is forfeited. | ||
Restructuring Reserves Period Expense | $ 2 | ||
Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
Equity-Based Compensation - Com
Equity-Based Compensation - Compensation Cost Table (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Recognized in earnings | $ 64 | $ 57 | $ 68 | |
Restructuring and Other Corporate Matters Expense | 177 | 225 | 237 | |
Tax benefit recognized | 10 | 12 | 23 | |
Capitalized equity-based compensation expense | 4 | 3 | 2 | |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Recognized in earnings | 13 | 14 | 15 | |
Share units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Recognized in earnings | 39 | 39 | 39 | |
Compensation cost included in SG&A expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Recognized in earnings | 52 | 53 | $ 54 | |
Restructuring Charges [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Recognized in earnings | [1] | $ 12 | $ 4 | |
[1] | See Note 15 for additional information |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options Key Assumptions (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average fair value of grants | $ 7.31 | $ 8.83 | $ 7.48 |
Weighted average assumptions: | |||
Expected stock price volatility | 30.10% | 36.70% | 28.40% |
Expected term of options (in years) | 5 years | 5 years 3 months 18 days | 4 years 10 months 24 days |
Risk-free interest rate | 2.90% | 2.50% | 1.90% |
Expected dividend yield | 2.60% | 2.60% | 2.30% |
Equity-Based Compensation - S_2
Equity-Based Compensation - Stock Options (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Options | |||
Outstanding at the beginning of the period | 15,740,600 | 15,591,500 | 19,596,200 |
Granted | 2,941,700 | 2,415,100 | 2,874,800 |
Exercised | 0 | (59,800) | (4,814,700) |
Forfeited or expired | (5,067,600) | (2,206,200) | (2,064,800) |
Outstanding at the end of the period | 13,614,700 | 15,740,600 | 15,591,500 |
Exercisable at the end of the period | 7,780,100 | 10,999,500 | 9,331,800 |
Weighted average exercise price | |||
Outstanding at the beginning of the period | $ 50.43 | $ 52.85 | $ 51.54 |
Granted | 30.86 | 31.02 | 34.86 |
Exercised | 0 | 30.12 | 35.72 |
Forfeited or expired | 56.08 | 46.86 | 55.25 |
Outstanding at the end of the period | 44.10 | 50.43 | 52.85 |
Exercisable at the end of the period | $ 53.17 | $ 57.20 | $ 57.85 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Proceeds from stock option exercises | $ 0 | $ 2 | $ 172 |
Intrinsic value | 0 | 0 | 42 |
Excess tax benefit/(shortfall) | $ 0 | $ 0 | $ (3) |
Equity-Based Compensation - Sha
Equity-Based Compensation - Share Units Table (Details) - $ / shares | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Number of shares | ||||
Unvested at the beginning of the period | 2,825,900 | 2,553,200 | 2,507,600 | |
Granted | [1] | 2,308,500 | 1,554,600 | 1,550,500 |
Vested | (904,800) | (931,900) | (941,200) | |
Forfeited | (303,200) | (350,000) | (563,700) | |
Unvested at the end of the period | 3,926,400 | 2,825,900 | 2,553,200 | |
Weighted average grant date fair value | ||||
Unvested at the beginning of the period | $ 35.28 | $ 40.71 | $ 58.05 | |
Granted | 30.74 | 32.42 | 34.86 | |
Vested | 37.94 | 47.88 | 55.84 | |
Forfeited | 33.67 | 28.61 | 76.53 | |
Unvested at the end of the period | $ 32.24 | $ 35.28 | $ 40.71 | |
Performance-based share units included In Grant Activity | 700,000 | 200,000 | 100,000 | |
[1] | Grant activity includes 0.7 million , 0.2 million and 0.1 million of performance-based share units at target and shares earned for awards for which the performance period has been completed for 2019 , 2018 and 2017 , respectively. |
Restructuring and Other Corpo_3
Restructuring and Other Corporate Matters - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (177) | $ (225) | $ (237) | ||||||
Restructuring Reserve Settled with Cash Exit Costs | 31 | 14 | |||||||
Allocated Share-Based Compensation Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (12) | ||||||||
Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (22) | $ (24) | $ (71) | $ (25) | $ (15) | $ (185) | (114) | (176) | (237) |
Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (15) | (123) | (82) | (138) | (212) | ||||
Restructuring Reserve | 137 | 195 | 137 | 195 | 208 | ||||
Restructuring Reserve, Current | 111 | 111 | |||||||
Restructuring Reserve, Noncurrent | 26 | 26 | |||||||
Employee Severance [Member] | Allocated Share-Based Compensation Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (10) | (4) | $ (14) | ||||||
Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (12) | $ (22) | $ (49) | ||||||
Legal Settlement [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (40) | (40) | |||||||
Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (20) | (20) | |||||||
Merger-related costs [Member] | Allocated Share-Based Compensation Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (2) | ||||||||
2018 Restructuring Plan [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (73) | ||||||||
2018 Restructuring Plan [Member] | Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | (3) | ||||||||
Pending Merger [Member] | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other corporate matters | $ (41) |
Restructuring and Other Corpo_4
Restructuring and Other Corporate Matters Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 177 | $ 225 | $ 237 | ||||||
Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 15 | $ 123 | 82 | 138 | 212 | ||||
Other Exit Activities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | (2) | 40 | 32 | 38 | |||||
Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 22 | $ 24 | $ 71 | 25 | $ 15 | 185 | 114 | 176 | 237 |
Restructuring Charges [Member] | 2018 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 73 | ||||||||
Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 12 | $ 22 | 49 | ||||||
Other Related Costs [Member] | 2018 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 3 | ||||||||
Asset Impairment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 22 | ||||||||
Contract Termination [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 3 | ||||||||
Legal Settlement [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 40 | 40 | |||||||
Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 20 | 20 | |||||||
Media Networks | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 95 | 172 | |||||||
Media Networks | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 23 | 133 | 142 | ||||||
Media Networks | Other Exit Activities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 32 | 38 | |||||||
Media Networks | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 55 | 171 | 164 | ||||||
Media Networks | Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 1 | ||||||||
Media Networks | Other Related Costs [Member] | 2018 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Media Networks | Asset Impairment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 22 | ||||||||
Media Networks | Contract Termination [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Media Networks | Legal Settlement [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 40 | ||||||||
Media Networks | Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Filmed Entertainment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 14 | 4 | |||||||
Filmed Entertainment | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 14 | 4 | 50 | ||||||
Filmed Entertainment | Other Exit Activities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | 0 | |||||||
Filmed Entertainment | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 14 | 4 | 53 | ||||||
Filmed Entertainment | Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Filmed Entertainment | Other Related Costs [Member] | 2018 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Filmed Entertainment | Asset Impairment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Filmed Entertainment | Contract Termination [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 3 | ||||||||
Filmed Entertainment | Legal Settlement [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Filmed Entertainment | Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Corporate | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 68 | 49 | |||||||
Corporate | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 45 | 1 | 20 | ||||||
Corporate | Other Exit Activities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | 0 | |||||||
Corporate | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 45 | 1 | 20 | ||||||
Corporate | Other Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 48 | ||||||||
Corporate | Other Related Costs [Member] | 2018 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 3 | ||||||||
Corporate | Asset Impairment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Corporate | Contract Termination [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Corporate | Legal Settlement [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 0 | ||||||||
Corporate | Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 20 | ||||||||
Allocated Share-Based Compensation Expense [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 12 | ||||||||
Allocated Share-Based Compensation Expense [Member] | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | 10 | $ 4 | $ 14 | ||||||
Allocated Share-Based Compensation Expense [Member] | Merger-related costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Other Corporate Matters Expense | $ 2 |
Severance Liability Rollforward
Severance Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve Rollforward | ||
Restructuring Reserve Settled with Cash Exit Costs | $ 31 | $ 14 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 195 | 208 |
Accruals | 72 | 134 |
Severance payments | (130) | (147) |
Restructuring Reserve, Ending Balance | 137 | 195 |
Restructuring Reserve, Current | 111 | |
Restructuring Reserve, Noncurrent | 26 | |
Employee Severance [Member] | Media Networks | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 149 | 119 |
Accruals | 24 | 129 |
Severance payments | (88) | (99) |
Restructuring Reserve, Ending Balance | 85 | 149 |
Employee Severance [Member] | Filmed Entertainment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 23 | 45 |
Accruals | 14 | 4 |
Severance payments | (24) | (26) |
Restructuring Reserve, Ending Balance | 13 | 23 |
Employee Severance [Member] | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 23 | 44 |
Accruals | 34 | 1 |
Severance payments | (18) | (22) |
Restructuring Reserve, Ending Balance | $ 39 | $ 23 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Contingency [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% | |||||||
Recognized Net Discrete Tax Benefits | $ 15,000,000 | $ 32,000,000 | $ 4,000,000 | $ 47,000,000 | $ 46,000,000 | $ 103,000,000 | $ 47,000,000 | $ 200,000,000 | $ 340,000,000 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 226,000,000 | |||||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 81,000,000 | |||||||||
Foreign Tax Losses With Unlimited Carryforward Periods | 189,000,000 | 189,000,000 | ||||||||
Foreign Tax Losses With Limited Carryforward Periods | 448,000,000 | 448,000,000 | ||||||||
Tax credit and loss carryforwards | 118,000,000 | 131,000,000 | 118,000,000 | 131,000,000 | ||||||
Foreign Earnings Repatriated | 999,000,000 | |||||||||
Interest and Penalties | 11,000,000 | 9,000,000 | $ 9,000,000 | |||||||
Interest and Penalties Accrual | 27,000,000 | $ 21,000,000 | 27,000,000 | $ 21,000,000 | ||||||
Future Unrecognized tax benefits | 85,000,000 | 85,000,000 | ||||||||
The Act [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||||||||
United States | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating Loss Carryforwards | 160,000,000 | 160,000,000 | ||||||||
Foreign Tax Authority [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Operating Loss Carryforwards | $ 6,000,000 | $ 6,000,000 |
Income Taxes - Earnings from Co
Income Taxes - Earnings from Continuing Operations before Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,325 | $ 1,351 | $ 1,647 |
International | 682 | 646 | 565 |
Earnings from continuing operations before provision for income taxes | $ 2,007 | $ 1,997 | $ 2,212 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current provision for income taxes: | |||
Federal | $ 210 | $ 148 | $ 312 |
State and local | 42 | 32 | 43 |
International | 153 | 134 | 112 |
Total current provision for income taxes | 405 | 314 | 467 |
Deferred provision for income taxes | 40 | (45) | (174) |
Provision for income taxes | $ 445 | $ 269 | $ 293 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 24.50% | 35.00% |
State and local taxes, net of federal benefit | 2.20% | 1.80% | 1.40% |
Effect of international operations | 1.00% | (3.50%) | (5.50%) |
Bankruptcy of an investee | (2.00%) | 0.00% | 0.00% |
Qualified production activities deduction | 0.00% | (0.80%) | (3.00%) |
Change in valuation allowance | (0.10%) | 0.00% | (1.40%) |
Tax accounting method change | 0.00% | (3.90%) | 0.00% |
Tax Cuts and Jobs Act enactment | 0.00% | (7.30%) | 0.00% |
Foreign tax credits on distribution of securities | 0.00% | 0.00% | (12.60%) |
All other, net | 0.10% | 2.70% | (0.70%) |
Effective tax rate, continuing operations | 22.20% | 13.50% | 13.20% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Accrued liabilities | $ 82 | $ 118 |
Postretirement and other employee benefits | 204 | 167 |
Tax credit and loss carryforwards | 118 | 131 |
All other | 97 | 104 |
Total deferred tax assets | 501 | 520 |
Valuation allowance | (114) | (87) |
Total deferred tax assets, net | 387 | 433 |
Deferred tax liabilities: | ||
Property, equipment and intangible assets | (248) | (419) |
Unbilled revenue | (60) | (80) |
Financing obligations | (70) | (70) |
Film & TV production expenditures | (80) | (124) |
Total deferred tax liabilities | (458) | (693) |
Deferred taxes, net | $ (71) | $ (260) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets/Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 194 | $ 36 |
Deferred tax liabilities | (265) | (296) |
Deferred taxes, net | $ (71) | $ (260) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of the period | $ 179 | $ 159 | $ 164 |
Gross additions based on tax positions related to the current year | 11 | 13 | 36 |
Gross additions for tax positions of prior years | 8 | 39 | 6 |
Gross reductions for tax positions of prior years | (12) | (24) | (14) |
Settlements | 0 | (3) | (8) |
Expiration of the statute of limitation | 0 | (5) | (25) |
Balance at end of the period | $ 186 | $ 179 | $ 159 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares outstanding, basic | 403.4 | 402.7 | 399.9 |
Dilutive effect of equity awards | 0.4 | 0.3 | 0.7 |
Weighted average number of common shares outstanding, diluted | 403.8 | 403 | 400.6 |
Anti-dilutive common shares | 18.3 | 18.6 | 15.2 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative, Notional Amount | $ 818 | $ 642 | |
Cash paid for interest | 509 | 574 | $ 635 |
Cash paid for income taxes | 289 | 133 | $ 476 |
Level 2 | |||
Derivative, Fair Value, Net | (9) | (8) | |
Foreign Currency Balances In Foreign Operations [Member] | |||
Derivative, Notional Amount | 301 | 297 | |
Future Production Costs [Member] | |||
Derivative, Notional Amount | $ 517 | $ 345 |
Reportable Segments Reportable
Reportable Segments Reportable Segments - Narrative (Details) | 12 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Reportable Segments - Revenues
Reportable Segments - Revenues by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,433 | $ 3,357 | $ 2,958 | $ 3,090 | $ 3,485 | $ 3,237 | $ 3,148 | $ 3,073 | $ 12,838 | $ 12,943 | $ 13,263 |
Eliminations | (124) | (109) | (122) | ||||||||
Media Networks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 9,883 | 10,011 | 10,096 | ||||||||
Filmed Entertainment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,079 | $ 3,041 | $ 3,289 |
Reportable Segments - Adjusted
Reportable Segments - Adjusted Operating Income/(Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Equity-based compensation | $ 64 | $ 57 | $ 68 | |||||||||
Programming charges | $ (77) | (77) | (144) | |||||||||
Restructuring and Other Corporate Matters Expense | (177) | (225) | (237) | |||||||||
Gain on asset sale | 0 | 0 | 127 | |||||||||
Operating income | $ 530 | $ 757 | $ 573 | $ 602 | $ 646 | $ 752 | $ 456 | $ 718 | 2,462 | 2,572 | 2,492 | |
Interest expense, net | (489) | (560) | (618) | |||||||||
Equity in net earnings of investee companies | 10 | 9 | 81 | |||||||||
Gain on sale of EPIX | 0 | 0 | 285 | |||||||||
Other items, net | 24 | (24) | (28) | |||||||||
Earnings from continuing operations before provision for income taxes | 2,007 | 1,997 | 2,212 | |||||||||
Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Eliminations | (1) | (1) | 1 | |||||||||
Media Networks | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Adjusted operating income by Segment | 2,940 | 3,128 | 3,300 | |||||||||
Restructuring and Other Corporate Matters Expense | (95) | (172) | ||||||||||
Filmed Entertainment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Adjusted operating income by Segment | 78 | (39) | (280) | |||||||||
Restructuring and Other Corporate Matters Expense | (14) | (4) | ||||||||||
Corporate expenses | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Corporate expenses | (249) | (238) | (221) | |||||||||
Compensation cost included in SG&A expense | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Equity-based compensation | 52 | 53 | 54 | |||||||||
Operating Expense [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Programming charges | [1] | (77) | 0 | (144) | ||||||||
Employee Severance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and Other Corporate Matters Expense | $ (15) | $ (123) | (82) | (138) | (212) | |||||||
Employee Severance [Member] | Media Networks | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and Other Corporate Matters Expense | (23) | (133) | (142) | |||||||||
Employee Severance [Member] | Filmed Entertainment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and Other Corporate Matters Expense | (14) | (4) | (50) | |||||||||
Allocated Share-Based Compensation Expense [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and Other Corporate Matters Expense | (12) | |||||||||||
Allocated Share-Based Compensation Expense [Member] | Employee Severance [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and Other Corporate Matters Expense | $ (10) | $ (4) | $ (14) | |||||||||
[1] | Included in Operating expenses in the Consolidated Statements of Earnings. |
Reportable Segments - Depreciat
Reportable Segments - Depreciation and Amortization and Total Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 215 | $ 213 | $ 223 |
Total assets | 23,671 | 23,783 | |
Media Networks | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 173 | 169 | 175 |
Total assets | 17,743 | 17,576 | |
Filmed Entertainment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 37 | 39 | 44 |
Total assets | 5,509 | 5,297 | |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5 | 5 | $ 4 |
Total assets | $ 419 | $ 910 |
Reportable Segments - Capital E
Reportable Segments - Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 194 | $ 178 | $ 195 |
Media Networks | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 143 | 121 | 164 |
Filmed Entertainment | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 46 | 51 | 27 |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 5 | $ 6 | $ 4 |
Reportable Segments - Revenue_2
Reportable Segments - Revenues by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 3,433 | $ 3,357 | $ 2,958 | $ 3,090 | $ 3,485 | $ 3,237 | $ 3,148 | $ 3,073 | $ 12,838 | $ 12,943 | $ 13,263 |
Advertising | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 4,652 | 4,751 | 4,862 | ||||||||
Affiliate | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 4,828 | 4,802 | 4,824 | ||||||||
Revenue Reconciling Items | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | (124) | (109) | (122) | ||||||||
Media Networks [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 9,883 | 10,011 | 10,096 | ||||||||
Media Networks [Member] | Consumer products, recreation and live events [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 403 | 458 | 410 | ||||||||
Film Entertainment [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 3,079 | 3,041 | 3,289 | ||||||||
Film Entertainment [Member] | Theatrical [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 567 | 695 | 808 | ||||||||
Film Entertainment [Member] | Home entertainment [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 646 | 622 | 849 | ||||||||
Film Entertainment [Member] | License fees [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 1,606 | 1,529 | 1,315 | ||||||||
Film Entertainment [Member] | Ancillary | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 260 | $ 195 | $ 317 |
Reportable Segments Reportabl_2
Reportable Segments Reportable Segments - International Markets - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
International | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Total Consolidated Revenues | 27.00% | 29.00% | 28.00% |
United Kingdom And Germany | |||
Segment Reporting Information [Line Items] | |||
Percentage of Total EMEA Revenues | 50.00% | 51.00% | 51.00% |
Reportable Segments - Geographi
Reportable Segments - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 3,433 | $ 3,357 | $ 2,958 | $ 3,090 | $ 3,485 | $ 3,237 | $ 3,148 | $ 3,073 | $ 12,838 | $ 12,943 | $ 13,263 | |
Long-Lived Assets | [1] | 5,476 | 5,338 | 5,476 | 5,338 | |||||||
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | 9,349 | 9,178 | 9,497 | ||||||||
Long-Lived Assets | [1] | 5,028 | 4,777 | 5,028 | 4,777 | |||||||
EMEA | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | 2,146 | 2,389 | 2,260 | ||||||||
Long-Lived Assets | [1] | 222 | 374 | 222 | 374 | |||||||
All other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | 1,343 | 1,376 | $ 1,506 | ||||||||
Long-Lived Assets | [1] | $ 226 | $ 187 | $ 226 | $ 187 | |||||||
[1] | Excludes deferred tax assets, goodwill, other intangible assets and investments. | |||||||||||
[2] | Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | |||
Ownership Percent Of Class A Stock By Controlling Stockholder | 79.80% | ||
Ownership Percent Of Class A And Class B Stock By Controlling Stockholder | 10.00% | ||
Percentage Of Voting Interest Controlled By The Chairman Of The Controlling Stockholder Entity | 80.00% | ||
Percentage Of Voting Interest Controlled By Non-Chairman Member Of The Controlling Stockholder Entity | 20.00% | ||
NAI | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 6 | $ 7 | $ 7 |
Related Party Transactions - Ta
Related Party Transactions - Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CBS | |||
Consolidated Statements of Earnings | |||
Revenues | $ 112 | $ 117 | $ 138 |
Operating expenses | 95 | 142 | 174 |
Consolidated Balance Sheets | |||
Accounts receivable | 7 | 7 | |
Participants’ share and residuals, current | 42 | 58 | |
Program obligations, current | 26 | 38 | |
Program obligations, noncurrent | 16 | 32 | |
Other liabilities | 1 | 2 | |
Total due to other related parties | 85 | 130 | |
Other Related Parties | |||
Consolidated Statements of Earnings | |||
Revenues | 48 | 49 | 131 |
Operating expenses | 6 | 16 | 67 |
Selling, general and administrative | 0 | 0 | $ (7) |
Consolidated Balance Sheets | |||
Accounts receivable | 26 | 43 | |
Other assets | 2 | 3 | |
Total due from other related parties | 28 | 46 | |
Accounts payable | 5 | 7 | |
Other liabilities | 1 | 2 | |
Total due to other related parties | $ 6 | $ 9 |
Quarterly Financial Data Unau_3
Quarterly Financial Data Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,433 | $ 3,357 | $ 2,958 | $ 3,090 | $ 3,485 | $ 3,237 | $ 3,148 | $ 3,073 | $ 12,838 | $ 12,943 | $ 13,263 |
Operating income | 530 | 757 | 573 | 602 | 646 | 752 | 456 | 718 | 2,462 | 2,572 | 2,492 |
Net earnings from continuing operations (Viacom and noncontrolling interests) | 319 | 544 | 368 | 331 | 399 | 514 | 264 | 551 | 1,562 | 1,728 | 1,919 |
Net earnings (Viacom and noncontrolling interests) | 323 | 550 | 381 | 334 | 407 | 525 | 274 | 553 | 1,588 | 1,759 | 1,922 |
Net earnings from continuing operations | 303 | 538 | 363 | 318 | 386 | 511 | 256 | 535 | 1,522 | 1,688 | 1,871 |
Net earnings attributable to Viacom | $ 307 | $ 544 | $ 376 | $ 321 | $ 394 | $ 522 | $ 266 | $ 537 | $ 1,548 | $ 1,719 | $ 1,874 |
Basic earnings per share, continuing operations attributable to Viacom (in usd per share) | $ 0.75 | $ 1.33 | $ 0.90 | $ 0.79 | $ 0.96 | $ 1.27 | $ 0.64 | $ 1.33 | $ 3.77 | $ 4.19 | $ 4.68 |
Basic earnings per share attributable to Viacom (in usd per share) | 0.76 | 1.35 | 0.93 | 0.80 | 0.98 | 1.30 | 0.66 | 1.33 | 3.84 | 4.27 | 4.69 |
Diluted earnings per share, continuing operations attributable to Viacom (in usd per share) | 0.75 | 1.33 | 0.90 | 0.79 | 0.96 | 1.27 | 0.64 | 1.33 | 3.77 | 4.19 | 4.67 |
Diluted earnings per share attributable to Viacom (in usd per share) | $ 0.76 | $ 1.35 | $ 0.93 | $ 0.80 | $ 0.98 | $ 1.29 | $ 0.66 | $ 1.33 | $ 3.83 | $ 4.27 | $ 4.68 |
Quarterly Financial Data Unau_4
Quarterly Financial Data Unaudited (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | $ 177 | $ 225 | $ 237 | ||||||||
Programming charges | $ 77 | 77 | 144 | ||||||||
Programming Inventory Restructure, Net of Tax | 59 | ||||||||||
Gain (Loss) on Extinguishment of Debt | 18 | $ 25 | |||||||||
Gain (Loss) on Extinguishment of Debt, Net of Tax | 14 | 19 | |||||||||
Marketable Securities, Gain (Loss) | $ 11 | $ 29 | $ 38 | (46) | 32 | ||||||
Marketable Securities, Gain (Loss), Net of Tax | 8 | 22 | 29 | (35) | |||||||
Recognized Net Discrete Tax Benefits | 15 | $ 32 | $ 4 | $ 47 | $ 46 | $ 103 | 47 | 200 | 340 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 4 | 2 | 3 | ||||||||
Gain on sale of equity method investment | 0 | 0 | 285 | ||||||||
Cost-method Investments, Other than Temporary Impairment | 46 | 46 | 10 | ||||||||
Cost-method Investments, Other than Temporary Impairment, Net of Tax | 36 | ||||||||||
Restructuring Charges [Member] | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | 22 | 24 | 71 | 25 | 15 | 185 | 114 | 176 | 237 | ||
Restructuring and Other Corporate Matters Expense, Net of Tax | 22 | 18 | 55 | 18 | $ 11 | 141 | |||||
Employee Severance | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | 15 | 123 | 82 | 138 | 212 | ||||||
Other Exit Activities | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | (2) | 40 | 32 | 38 | |||||||
Other Related Costs [Member] | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | $ 12 | 22 | 49 | ||||||||
Legal Settlement [Member] | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | 40 | 40 | |||||||||
Restructuring and Other Corporate Matters Expense, Net of Tax | $ 31 | ||||||||||
Merger-related costs [Member] | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Restructuring and Other Corporate Matters Expense | 20 | 20 | |||||||||
Restructuring and Other Corporate Matters Expense, Net of Tax | $ 19 | ||||||||||
Viacom18 | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Gain on sale of equity method investment | $ 16 | $ 16 | |||||||||
Equity Method Investment, Ownership Percentage | 1.00% | 1.00% | |||||||||
Accounting Standards Update 2017-07 [Member] | |||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1 | $ 1 | $ 2 | $ 3 |
Schedule ll - Valuation and Q_2
Schedule ll - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | $ 45 | $ 49 | $ 44 |
Additions - expense and other | 20 | 22 | 26 |
Deductions | (18) | (26) | (21) |
End of period | 47 | 45 | 49 |
Sales Returns and Allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 64 | 79 | 93 |
Additions - expense and other | 148 | 186 | |
Deductions | (163) | (200) | |
End of period | 64 | 79 | |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 87 | 156 | 195 |
Additions - expense and other | 37 | 5 | 19 |
Deductions | (10) | (74) | (58) |
End of period | $ 114 | $ 87 | $ 156 |