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Revenue Recognition
 3 Months Ended
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,
20222021
(in millions)
Revenue by Type
Digital$803 $870 
Physical133 195 
Total Digital and Physical936 1,065 
Artist services and expanded-rights206 232 
Licensing97 89 
Total Recorded Music1,239 1,386 
Performance45 38 
Digital149 133 
Mechanical14 14 
Synchronization39 42 
Other3 2 
Total Music Publishing250 229 
Intersegment eliminations(1)(1)
Total Revenues$1,488 $1,614 
Revenue by Geographical Location
U.S. Recorded Music$539 $608 
U.S. Music Publishing133 115 
Total U.S.672 723 
International Recorded Music700 778 
International Music Publishing117 114 
Total International817 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 FY23FY24FY25ThereafterTotal
(in millions)
Remaining performance obligations$547 $367 $5 $1 $920 
Total$547 $367 $5 $1 $920