Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2022

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, 2020	$	1,367	$	464	$	1,831
Acquisitions	(7)		—		(7)
Other adjustments	6		—		6
Balances at September 30, 2021	$	1,366	$	464	$	1,830
Acquisitions	160		—		160
Other adjustments	(70)		—		(70)
Balances at September 30, 2022	$	1,456	$	464	$	1,920

The increase in goodwill during the fiscal year ended September 30, 2022 primarily relates to the acquisition of 300 Entertainment as described in Note 5. The decrease in goodwill during the fiscal year ended September 30, 2021 includes purchase price allocations for acquisitions closed during the fiscal year ended September 30, 2021 offset by measurement period adjustments for acquisitions which closed during the fiscal year ended September 30, 2020. The other adjustments during both the fiscal years ended September 30, 2022 and September 30, 2021 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 2022 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, 2022		September 30, 2021
		(in millions)
Intangible assets subject to amortization:
Recorded music catalog	12 years	$	1,316	$	1,206
Music publishing copyrights	25 years	1,889		1,730
Artist and songwriter contracts	13 years	1,014		997
Trademarks	14 years	103		96
Other intangible assets	6 years	89		96
Total gross intangible assets subject to amortization		4,411		4,125
Accumulated amortization		(2,172)		(2,108)
Total net intangible assets subject to amortization		2,239		2,017
Intangible assets not subject to amortization:
Trademarks and tradenames	Indefinite	145		154
Total net intangible assets		$	2,384	$	2,171

The increase in intangible assets during the fiscal year ended September 30, 2022 primarily relates to the acquisition of 300 Entertainment, which resulted in an increase in intangible assets as described in Note 5, and an acquisition of music-related assets within music publishing copyrights for approximately $250 million. The increase in intangible assets is partially offset by foreign currency movements.

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 2022 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, 2022, the expected amortization for each of the next five fiscal years and thereafter are as follows:


Fiscal Year Ended September 30,	Amortization Expense
	(in millions)
2023	$	235
2024	198
2025	193
2026	172
2027	150
Thereafter	1,291
Total	$	2,239