Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following analysis details the changes in goodwill for each reportable segment:


	Recorded Music		Music Publishing		Total
	(in millions)
Balances at September 30, 2018	$	1,228	$	464	$	1,692
Acquisitions	89		—		89
Other adjustments	(20)		—		(20)
Balances at September 30, 2019	$	1,297	$	464	$	1,761
Acquisitions	47		—		47
Other adjustments	23		—		23
Balances at September 30, 2020	$	1,367	$	464	$	1,831

The increase in goodwill during the fiscal year ended September 30, 2020 primarily relates to an acquisition in August 2020, which resulted in goodwill of $47 million. The increase in goodwill during the fiscal year ended September 30, 2019 primarily relates to the EMP acquisition, which resulted in an increase in goodwill of $89 million. Please refer to Note 5 of our consolidated financial statements for further discussion. The other adjustments during both the fiscal years ended September 30, 2020 and September 30, 2019 primarily represent foreign currency movements.

The Company performs its annual goodwill impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s goodwill may not be recoverable. The performance of the annual fiscal 2020 impairment analysis did not result in an impairment of the Company’s goodwill.

Intangible Assets

Intangible assets consist of the following:


	Weighted-Average Useful Life	September 30, 2020		September 30, 2019
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	10 years	$	876	$	855
Music publishing copyrights	26 years	1,597		1,539
Artist and songwriter contracts	13 years	862		841
Trademarks	16 years	81		53
Other intangible assets	6 years	84		59
Total gross intangible assets subject to amortization		3,500		3,347
Accumulated amortization		(1,847)		(1,624)
Total net intangible assets subject to amortization		1,653		1,723
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	154		151
Total net intangible assets		$	1,807	$	1,874

The Company performs its annual indefinite-lived intangible assets impairment test in accordance with ASC 350 during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company’s indefinite-lived intangible assets may not be recoverable. The performance of the annual fiscal 2020 impairment analysis did not result in an impairment of the Company’s indefinite-lived intangible assets.

Amortization

Based on the amount of intangible assets subject to amortization at September 30, 2020, the expected amortization for each of the next five fiscal years and thereafter are as follows (in millions):


2021	$	192
2022	189
2023	152
2024	118
2025	111
Thereafter	891
Total	$	1,653

The life of all acquired intangible assets is evaluated based on the expected future cash flows associated with the asset. The expected amortization expense above reflects estimated useful lives assigned to the Company’s identifiable, finite-lived intangible assets primarily established in the accounting for the Merger and the PLG Acquisition.