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Revenue Recognition
 3 Months Ended
Dec. 31, 2023
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,
20232022
(in millions)
Revenue by Type
Digital$908 $803 
Physical154 133 
Total Digital and Physical1,062 936 
Artist services and expanded-rights204 206 
Licensing179 97 
Total Recorded Music1,445 1,239 
Performance51 45 
Digital196 149 
Mechanical15 14 
Synchronization39 39 
Other3 3 
Total Music Publishing304 250 
Intersegment eliminations(1)(1)
Total Revenues$1,748 $1,488 
Revenue by Geographical Location
U.S. Recorded Music$627 $539 
U.S. Music Publishing172 133 
Total U.S.799 672 
International Recorded Music818 700 
International Music Publishing132 117 
Total International950 817 
Intersegment eliminations(1)(1)
Total Revenues$1,748 $1,488 
Sales Returns and Uncollectible Accounts
Based on management’s analysis of sales returns, refund liabilities of $25 million and $19 million were established at December 31, 2023 and September 30, 2023, respectively.
Based on management’s analysis of estimated credit losses, reserves of $19 million and $19 million were established at December 31, 2023 and September 30, 2023, respectively.
Deferred Revenue
Deferred revenue increased by $160 million during the three months ended December 31, 2023 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $151 million were recognized during the three months ended December 31, 2023 related to the balance of deferred revenue at September 30, 2023. There were no other significant changes to deferred revenue during the reporting period.
Performance Obligations
For the three months ended December 31, 2023 and December 31, 2022, the Company recognized revenue of $30 million and $27 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, 2023 are as follows:
Rest of FY24
FY25
FY26
ThereafterTotal
(in millions)
Remaining performance obligations$468 $226 $22 $6 $722 
Total$468 $226 $22 $6 $722