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Segment Information
 9 Months Ended
Jun. 30, 2024
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 design and implement new information technology and upgrade our 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 and nine months ended June 30, 2023, 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)
June 30, 2024    
Revenues$1,251 $305 $(2)$1,554 
Adjusted OIBDA
281 79 (44)316 
June 30, 2023
Revenues$1,282 $283 $(1)$1,564 
Adjusted OIBDA
264 74 (41)297 
Recorded
Music		Music
Publishing		Corporate
expenses and
eliminations		Total
Nine Months Ended(in millions)
June 30, 2024
Revenues$3,885 $915 $(4)$4,796 
Adjusted OIBDA
965 247 (133)1,079 
June 30, 2023
Revenues3,664 790 (3)4,451 
Adjusted OIBDA
812 222 (116)918 
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
June 30,		For the Nine Months Ended
June 30,
2024202320242023
Operating income$207 $189 $680 $578 
Amortization expense55 64 167 188 
Depreciation expense25 22 77 65 
Restructuring and impairments1 — 96 41 
Transformation initiatives and other related costs18 13 56 39 
Executive transition costs— 1 — 4 
Net gain on divestitures(1)— (32)(41)
Non-cash stock-based compensation and other related costs11 8 35 44 
Adjusted OIBDA$316 $297 $1,079 $918