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Segment Information | 9 Months Ended
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Jun. 30, 2025
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. 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, 2024. 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, 2025 |  |  |  |  |  |  |
Revenues | $ | 1,354 |  |  | $ | 336 |  |  | $ | (1) |  |  | $ | 1,689 |
Adjusted OIBDA | 321 |  |  | 96 |  |  | (44) |  |  | 373 |
June 30, 2024 |  |  |  |  |  |  |
Revenues | $ | 1,251 |  |  | $ | 305 |  |  | $ | (2) |  |  | $ | 1,554 |
Adjusted OIBDA | 281 |  |  | 79 |  |  | (44) |  |  | 316 |
| Recorded Music |  | Music Publishing |  | Corporate expenses and eliminations |  | Total
Nine Months Ended | (in millions)
June 30, 2025 |  |  |  |  |  |  |
Revenues | $ | 3,874 |  |  | $ | 969 |  |  | $ | (4) |  |  | $ | 4,839 |
Adjusted OIBDA | 914 |  |  | 264 |  |  | (139) |  |  | 1,039 |
June 30, 2024 |  |  |  |  |  |  |
Revenues | 3,885 |  |  | 915 |  |  | (4) |  |  | 4,796 |
Adjusted OIBDA | 965 |  |  | 247 |  |  | (133) |  |  | 1,079 |
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,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating income |  | $ | 169 |  |  | $ | 207 |  |  | $ | 551 |  |  | $ | 680 |
Amortization expense |  | 67 |  |  | 55 |  |  | 186 |  |  | 167 |
Depreciation expense |  | 29 |  |  | 25 |  |  | 86 |  |  | 77 |
Restructuring and impairments |  | 69 |  |  | 1 |  |  | 109 |  |  | 96 |
Transformation initiative costs |  | 19 |  |  | 18 |  |  | 54 |  |  | 56 |
Executive transition costs |  | 4 |  |  | — |  |  | 4 |  |  | — |
Net gain on divestitures |  | — |  |  | (1) |  |  | — |  |  | (32) |
Non-cash stock-based compensation and other related costs |  | 16 |  |  | 11 |  |  | 49 |  |  | 35 |
Adjusted OIBDA |  | $ | 373 |  |  | $ | 316 |  |  | $ | 1,039 |  |  | $ | 1,079 |

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- Definition The entire disclosure for reporting segments including data and tables. 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