Restructuring and Impairments

6 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Strategic Restructuring Plan

In 2024, the Company announced a strategic restructuring plan (the “Strategic Restructuring Plan”) designed to free up additional funds to invest in music and accelerate the Company’s growth for the next decade. The Company expects to incur total non-recurring restructuring charges of approximately $240 million or approximately $160 million of total non-recurring after tax charges. The expected pre-tax charges include approximately $158 million of severance and other contract termination costs, along with approximately $82 million of non-cash impairment charges. The majority of severance payments and other termination costs are expected to be paid by the end of fiscal year 2026.

For the three months ended March 31, 2025, total severance and other contract termination costs recorded in connection with the Strategic Restructuring Plan were $7 million, all of which was recognized in our Recorded Music segment. For the six months ended March 31, 2025, total severance and other contract termination costs recorded in connection with the Strategic Restructuring Plan were $8 million, of which $9 million of expense was recognized in our Recorded Music segment while there was a $1 million benefit recognized at Corporate due to a change in estimate. Additionally, for the three and six months ended March 31, 2025, the Company recognized $6 million and $32 million of impairment losses, respectively, all of which were recognized in our Recorded Music segment. Impairment charges recognized during the period primarily relate to the write-off of certain long-form audiovisual production assets and lease termination costs for office closures. The Company continues to review its operations for additional cost

savings and efficiencies. Our ongoing review could result in additional costs and charges which may be significant.

As of March 31, 2025, total cumulative restructuring and impairment charges recognized in connection with the Strategic Restructuring Plan were $218 million with $208 million of costs recognized in our Recorded Music segment and $10 million recognized at Corporate. These costs are composed of $136 million of severance and other contract termination costs, of which $7 million was non-cash, and $82 million of non-cash impairment charges.

The below table sets forth the activity for the six months ended March 31, 2025 in the restructuring accrual associated with the Strategic Restructuring Plan included within accrued liabilities in the accompanying condensed consolidated balance sheets.


	Severance Costs		Contract Termination Costs		Total
	(in millions)
Balance at September 30, 2024	$	99	$	5	$	104
Restructuring charges	1		7		8
Cash payments	(47)		(4)		(51)
Foreign currency movements	(1)		—		(1)
Balance at March 31, 2025	$	52	$	8	$	60