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Revenue Recognition | 3 Months Ended
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Dec. 31, 2022
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The Company’s revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:
| Three Months Ended December 31, |  |
| 2022 |  | 2021 |  |  |  |
| (in millions)
Revenue by Type |  |  |  |  |  |  |
Digital | $ | 803 |  |  | $ | 870 |  |  |  |  |
Physical | 133 |  |  | 195 |  |  |  |  |
Total Digital and Physical | 936 |  |  | 1,065 |  |  |  |  |
Artist services and expanded-rights | 206 |  |  | 232 |  |  |  |  |
Licensing | 97 |  |  | 89 |  |  |  |  |
Total Recorded Music | 1,239 |  |  | 1,386 |  |  |  |  |
Performance | 45 |  |  | 38 |  |  |  |  |
Digital | 149 |  |  | 133 |  |  |  |  |
Mechanical | 14 |  |  | 14 |  |  |  |  |
Synchronization | 39 |  |  | 42 |  |  |  |  |
Other | 3 |  |  | 2 |  |  |  |  |
Total Music Publishing | 250 |  |  | 229 |  |  |  |  |
Intersegment eliminations | (1) |  |  | (1) |  |  |  |  |
Total Revenues | $ | 1,488 |  |  | $ | 1,614 |  |  |  |  |
Revenue by Geographical Location |  |  |  |  |  |  |
U.S. Recorded Music | $ | 539 |  |  | $ | 608 |  |  |  |  |
U.S. Music Publishing | 133 |  |  | 115 |  |  |  |  |
Total U.S. | 672 |  |  | 723 |  |  |  |  |
International Recorded Music | 700 |  |  | 778 |  |  |  |  |
International Music Publishing | 117 |  |  | 114 |  |  |  |  |
Total International | 817 |  |  | 892 |  |  |  |  |
Intersegment eliminations | (1) |  |  | (1) |  |  |  |  |
Total Revenues | $ | 1,488 |  |  | $ | 1,614 |  |  |  |  |
Sales Returns and Uncollectible Accounts Based on management’s analysis of sales returns, refund liabilities of $26 million and $19 million were established at December 31, 2022 and September 30, 2022, respectively. Based on management’s analysis of estimated credit losses, reserves of $21 million and $19 million were established at December 31, 2022 and September 30, 2022, respectively. Deferred Revenue Deferred revenue increased by $103 million during the three months ended December 31, 2022 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $144 million were recognized during the three months ended December 31, 2022 related to the balance of deferred revenue at September 30, 2022. There were no other significant changes to deferred revenue during the reporting period. Performance Obligations For the three months ended December 31, 2022 and December 31, 2021, the Company recognized revenue of $27 million and $37 million, respectively, from performance obligations satisfied in previous periods. Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2022 are as follows:
| Rest of FY23 |  | FY24 |  | FY25 |  | Thereafter |  | Total
| (in millions)
Remaining performance obligations | $ | 547 |  |  | $ | 367 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 920 |
Total | $ | 547 |  |  | $ | 367 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 920 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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