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Revenue Recognition | 9 Months Ended
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Jun. 30, 2024
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 June 30, |  | Nine Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (in millions)
Revenue by Type |  |  |  |  |  |  |
Digital | $ | 882 |  |  | $ | 846 |  |  | $ | 2,638 |  |  | $ | 2,445 |
Physical | 120 |  |  | 126 |  |  | 385 |  |  | 377 |
Total digital and physical | 1,002 |  |  | 972 |  |  | 3,023 |  |  | 2,822 |
Artist services and expanded-rights | 159 |  |  | 218 |  |  | 489 |  |  | 555 |
Licensing | 90 |  |  | 92 |  |  | 373 |  |  | 287 |
Total Recorded Music | 1,251 |  |  | 1,282 |  |  | 3,885 |  |  | 3,664 |
Performance | 52 |  |  | 40 |  |  | 155 |  |  | 130 |
Digital | 194 |  |  | 182 |  |  | 577 |  |  | 477 |
Mechanical | 13 |  |  | 16 |  |  | 43 |  |  | 46 |
Synchronization | 42 |  |  | 41 |  |  | 129 |  |  | 126 |
Other | 4 |  |  | 4 |  |  | 11 |  |  | 11 |
Total Music Publishing | 305 |  |  | 283 |  |  | 915 |  |  | 790 |
Intersegment eliminations | (2) |  |  | (1) |  |  | (4) |  |  | (3) |
Total revenues | $ | 1,554 |  |  | $ | 1,564 |  |  | $ | 4,796 |  |  | $ | 4,451 |
Revenue by geographical location |  |  |  |  |  |  |
U.S. Recorded Music | $ | 517 |  |  | $ | 557 |  |  | $ | 1,652 |  |  | $ | 1,618 |
U.S. Music Publishing | 161 |  |  | 147 |  |  | 503 |  |  | 415 |
Total U.S. | 678 |  |  | 704 |  |  | 2,155 |  |  | 2,033 |
International Recorded Music | 734 |  |  | 725 |  |  | 2,233 |  |  | 2,046 |
International Music Publishing | 144 |  |  | 136 |  |  | 412 |  |  | 375 |
Total international | 878 |  |  | 861 |  |  | 2,645 |  |  | 2,421 |
Intersegment eliminations | (2) |  |  | (1) |  |  | (4) |  |  | (3) |
Total revenues | $ | 1,554 |  |  | $ | 1,564 |  |  | $ | 4,796 |  |  | $ | 4,451 |
Sales Returns and Uncollectible Accounts Based on management’s analysis of sales returns, refund liabilities of $19 million and $19 million were established at June 30, 2024 and September 30, 2023, respectively. Based on management’s analysis of estimated credit losses, reserves of $23 million and $19 million were established at June 30, 2024 and September 30, 2023, respectively. Deferred Revenue Deferred revenue increased by $391 million during the nine months ended June 30, 2024 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $314 million were recognized during the nine months ended June 30, 2024 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 June 30, 2024 and June 30, 2023, the Company recognized revenue of $35 million and $27 million, respectively, from performance obligations satisfied in previous periods. For the nine months ended June 30, 2024 and June 30, 2023, the Company recognized revenue of $109 million and $68 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 June 30, 2024 are as follows:
| Rest of FY24 |  | FY25 |  | FY26 |  | Thereafter |  | Total
| (in millions)
Remaining performance obligations | $ | 158 |  |  | $ | 302 |  |  | $ | 27 |  |  | $ | 6 |  |  | $ | 493 |
Total | $ | 158 |  |  | $ | 302 |  |  | $ | 27 |  |  | $ | 6 |  |  | $ | 493 |

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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