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Segment Information
 3 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
Based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent the reportable segments of the Company. Information as to each of these operations is set forth below. The Company evaluates performance based on several factors, of which the primary financial measure is operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets adjusted to exclude the impact of non-cash stock-based compensation and other related expenses and certain items that affect comparability including but not limited to gains or losses on divestitures and expenses related to restructuring and transformation initiatives, which includes costs associated with the Company’s financial transformation initiative to upgrade our information technology and finance infrastructure (“Adjusted OIBDA”). Items excluded are not viewed to contribute directly to management’s evaluation of operating results.

    During the three months ended December 31, 2023, the Company changed the measure used to evaluate segment profitability from OIBDA to Adjusted OIBDA which is consistent with how the Company's CODM evaluates the results of operations and makes strategic decisions about the business. For these reasons, the Company believes that Adjusted OIBDA represents the most relevant measure of segment profit and loss. All disclosures relating to segment profitability, including those for the three months ended December 31, 2022, have been revised as a result of this change. Hereafter, the Company will revise other prior quarterly and year-to-date periods for fiscal year 2023 when they are subsequently reported in later filings for comparative purposes.
The accounting policies of the Company’s business segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results.
Recorded
Music		Music
Publishing		Corporate
expenses and
eliminations		Total
Three Months Ended(in millions)
December 31, 2023    
Revenues$1,445 $304 $(1)$1,748 
Adjusted OIBDA
412 86 (47)451 
December 31, 2022
Revenues$1,239 $250 (1)1,488 
Adjusted OIBDA
299 72 (36)335 
Adjusted OIBDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of the Company’s Adjusted OIBDA to operating income is presented below.
For the Three Months Ended
December 31,
20232022
Operating income354 265 
Amortization expense55 63 
Depreciation expense26 21 
Transformation initiatives and other related costs
19 12 
Net gain on divestitures
(17)(41)
Non-cash stock-based compensation and other related costs
14 15 
Adjusted OIBDA$451 $335 
In connection with the aforementioned change in segment profitability measure, the Company has also revised disclosures relating to segment profitability for the fiscal years ended September 30, 2023, 2022 and 2021, as presented below, to be comparable to the current period presentation.
Recorded
Music		Music
Publishing		Corporate
expenses and
eliminations		Total
Twelve Months Ended
(in millions)
September 30, 2023    
Revenues$4,955 $1,088 $(6)$6,037 
Adjusted OIBDA
1,093 296 (154)1,235 
September 30, 2022
Revenues$4,966 $958 $(5)$5,919 
Adjusted OIBDA
1,046 233 (130)1,149 
September 30, 2021
Revenues$4,544 $761 (4)$5,301 
Adjusted OIBDA
975 179 (136)1,018 
For the Twelve Months Ended September 30,
202320222021
Operating income790 714 609 
Amortization expense245 263 229 
Depreciation expense87 76 77 
Restructuring
42 8 18 
Transformation initiatives and other related costs
53 46 36 
Executive transition costs
7 — — 
Net gain on divestitures
(41)— — 
COVID-19 related costs
— — 1 
Non-cash stock-based compensation and other related costs
52 42 48 
Adjusted OIBDA$1,235 $1,149 $1,018