SEC Info - Warner Music Group Corp. - ‘10-K’ for 9/30/16

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   2.72M 
 3: EX-10.12    Material Contract                                   HTML     39K 
 4: EX-10.17    Material Contract                                   HTML     37K 
 5: EX-10.41    Material Contract                                   HTML    905K 
 6: EX-10.44    Material Contract                                   HTML   1.14M 
 2: EX-10.8     Material Contract                                   HTML     78K 
 7: EX-21.1     Subsidiaries List                                   HTML     56K 
 8: EX-31.1     Certification -- §302 - SOA'02                      HTML     36K 
 9: EX-31.2     Certification -- §302 - SOA'02                      HTML     37K 
10: EX-32.1     Certification -- §906 - SOA'02                      HTML     33K 
11: EX-32.2     Certification -- §906 - SOA'02                      HTML     33K 
18: R1          Document and Entity Information                     HTML     61K 
19: R2          Consolidated Balance Sheets                         HTML    131K 
20: R3          Consolidated Balance Sheets (Parenthetical)         HTML     43K 
21: R4          Consolidated Statements of Operations               HTML     85K 
22: R5          Consolidated Statements of Operations               HTML     36K 
                (Parenthetical)                                                  
23: R6          Consolidated Statements of Comprehensive Loss       HTML     54K 
24: R7          Consolidated Statements of Cash Flows               HTML    148K 
25: R8          Consolidated Statements of Cash Flows               HTML     42K 
                (Parenthetical)                                                  
26: R9          Consolidated Statement of Equity                    HTML     60K 
27: R10         Description of Business                             HTML     50K 
28: R11         Summary of Significant Accounting Policies          HTML     87K 
29: R12         Comprehensive Income (Loss)                         HTML    107K 
30: R13         Property, Plant and Equipment                       HTML     73K 
31: R14         Goodwill and Intangible Assets                      HTML    188K 
32: R15         Debt                                                HTML     91K 
33: R16         Income Taxes                                        HTML    265K 
34: R17         Employee Benefit Plans                              HTML     38K 
35: R18         Restructuring                                       HTML    120K 
36: R19         Share-Based Compensation Plans                      HTML    175K 
37: R20         Related Party Transactions                          HTML     47K 
38: R21         Commitments and Contingencies                       HTML     67K 
39: R22         Derivative Financial Instruments                    HTML     47K 
40: R23         Segment Information                                 HTML    253K 
41: R24         Additional Financial Information                    HTML     35K 
42: R25         Fair Value Measurements                             HTML    138K 
43: R26         Subsequent Events                                   HTML     40K 
44: R27         Quarterly Financial Information                     HTML    262K 
45: R28         Guarantor and Non-Guarantor Subsidiaries Financial  HTML   4.28M 
                Information                                                      
46: R29         Schedule II - Valuation and Qualifying Accounts     HTML    153K 
47: R30         Summary of Significant Accounting Policies          HTML    159K 
                (Policies)                                                       
48: R31         Comprehensive Income (Loss) (Tables)                HTML    104K 
49: R32         Property, Plant and Equipment (Tables)              HTML     71K 
50: R33         Goodwill and Intangible Assets (Tables)             HTML    186K 
51: R34         Debt (Tables)                                       HTML     81K 
52: R35         Income Taxes (Tables)                               HTML    267K 
53: R36         Restructuring (Tables)                              HTML    119K 
54: R37         Share-Based Compensation Plans (Tables)             HTML    163K 
55: R38         Commitments and Contingencies (Tables)              HTML     51K 
56: R39         Segment Information (Tables)                        HTML    251K 
57: R40         Fair Value Measurements (Tables)                    HTML    133K 
58: R41         Quarterly Financial Information (Tables)            HTML    260K 
59: R42         Guarantor and Non-Guarantor Subsidiaries Financial  HTML   4.29M 
                Information (Tables)                                             
60: R43         Description of Business - Additional Information    HTML     42K 
                (Detail)                                                         
61: R44         Summary of Significant Accounting Policies -        HTML     58K 
                Additional Information (Detail)                                  
62: R45         Comprehensive Income (Loss) - Schedule of           HTML     52K 
                Accumulated Other Comprehensive Loss (Detail)                    
63: R46         Comprehensive Income (Loss) - Schedule of           HTML     36K 
                Accumulated Other Comprehensive Loss                             
                (Parenthetical) (Detail)                                         
64: R47         Property, Plant and Equipment - Schedule of         HTML     54K 
                Property, Plant and Equipment (Detail)                           
65: R48         Property, Plant and Equipment - Additional          HTML     34K 
                Information (Detail)                                             
66: R49         Goodwill and Intangible Assets - Changes in         HTML     47K 
                Goodwill for Each Reportable Segment (Detail)                    
67: R50         Goodwill and Intangible Assets - Schedule of        HTML     60K 
                Intangible Assets (Detail)                                       
68: R51         Goodwill and Intangible Assets - Expected           HTML     48K 
                Amortization of Intangible Assets (Detail)                       
69: R52         Debt - Long-term Debt (Detail)                      HTML     62K 
70: R53         Debt - Long-term Debt (Parenthetical) (Detail)      HTML    126K 
71: R54         Debt - Debt Redemptions - Additional Information    HTML     59K 
                (Detail)                                                         
72: R55         Debt - Open Market Purchases - Additional           HTML     42K 
                Information (Detail)                                             
73: R56         Debt - Notes Offering - Additional Information      HTML     45K 
                (Detail)                                                         
74: R57         Debt - 2014 Debt Refinancing - Additional           HTML     67K 
                Information (Detail)                                             
75: R58         Debt - Interest Rates - Additional Information      HTML     55K 
                (Detail)                                                         
76: R59         Debt - Additional Information (Detail)              HTML     56K 
77: R60         Income Taxes - Schedule of Domestic and Foreign     HTML     43K 
                Pretax (Loss) Income from Continuing Operations                  
                (Detail)                                                         
78: R61         Income Taxes - Current and Deferred Income Taxes    HTML     59K 
                (Detail)                                                         
79: R62         Income Taxes - Current and Deferred Income Taxes    HTML     33K 
                (Parenthetical) (Detail)                                         
80: R63         Income Taxes - Additional Information (Detail)      HTML     65K 
81: R64         Income Taxes - Differences between U.S. Federal     HTML     61K 
                Statutory Income Tax Rate of 35% and Income Taxes                
                Provided (Detail)                                                
82: R65         Income Taxes - Significant Components of Company's  HTML     67K 
                Net Deferred Tax Assets/(Liabilities) (Detail)                   
83: R66         Income Taxes - Reconciliation of Unrecognized Tax   HTML     42K 
                Benefits Including Interest and Penalties (Detail)               
84: R67         Employee Benefit Plans - Additional Information     HTML     45K 
                (Detail)                                                         
85: R68         Restructuring - Additional Information (Detail)     HTML     53K 
86: R69         Restructuring - Summary of Restructuring Activity   HTML     46K 
                (Detail)                                                         
87: R70         Restructuring - Summary of Charges in Consolidated  HTML     39K 
                Statement of Operations (Detail)                                 
88: R71         Share-Based Compensation Plans - Additional         HTML     74K 
                Information (Detail)                                             
89: R72         Share-Based Compensation Plans - Summary of         HTML     83K 
                Company's Share Awards (Detail)                                  
90: R73         Related Party Transactions - Additional             HTML     63K 
                Information (Detail)                                             
91: R74         Commitments and Contingencies - Additional          HTML     52K 
                Information (Detail)                                             
92: R75         Commitments and Contingencies - Future Minimum      HTML     51K 
                Payments Under Non-Cancelable Operating Leases                   
                (Net of Sublease Income) (Detail)                                
93: R76         Derivative Financial Instruments - Additional       HTML     38K 
                Information (Detail)                                             
94: R77         Segment Information - Additional Information        HTML     44K 
                (Detail)                                                         
95: R78         Segment Information - Schedule of Segment           HTML     74K 
                Information (Detail)                                             
96: R79         Segment Information - Long-Lived Assets and         HTML     51K 
                Revenue by Geographical Areas (Detail)                           
97: R80         Additional Financial Information - Additional       HTML     36K 
                Information (Detail)                                             
98: R81         Fair Value Measurements - Schedule of Fair Value    HTML     41K 
                of Financial Instruments (Detail)                                
99: R82         Fair Value Measurements - Reconciliation of Net     HTML     41K 
                Liabilities Classified as Level 3 (Detail)                       
100: R83         Fair Value Measurements - Additional Information    HTML     36K  
                (Detail)                                                         
101: R84         Subsequent Events - Additional Information          HTML    137K  
                (Detail)                                                         
102: R85         Quarterly Financial Information - Quarterly         HTML     87K  
                Information (Detail)                                             
103: R86         Quarterly Financial Information - Quarterly         HTML     37K  
                Information (Parenthetical) (Detail)                             
104: R87         Guarantor and Non-Guarantor Subsidiaries Financial  HTML     53K  
                Information - Additional Information (Detail)                    
105: R88         Guarantor and Non-Guarantor Subsidiaries Financial  HTML    203K  
                Information - Consolidating Balance Sheet (Detail)               
106: R89         Guarantor and Non-Guarantor Subsidiaries Financial  HTML    158K  
                Information - Consolidating Statement of                         
                Operations (Detail)                                              
107: R90         Guarantor and Non-Guarantor Subsidiaries Financial  HTML     99K  
                Information - Consolidating Statement of                         
                Comprehensive Income (Detail)                                    
108: R91         Guarantor and Non-Guarantor Subsidiaries Financial  HTML    301K  
                Information - Consolidating Statement of Cash                    
                Flows (Detail)                                                   
109: R92         Guarantor And Non-Guarantor Subsidiaries Financial  HTML     46K  
                Information - Consolidating Statement of Cash                    
                Flows (Parenthetical) (Detail)                                   
110: R93         Valuation and Qualifying Accounts (Detail)          HTML     52K  
112: XML         IDEA XML File -- Filing Summary                      XML    203K  
111: EXCEL       IDEA Workbook of Financial Reports                  XLSX    147K  
12: EX-101.INS  XBRL Instance -- wmg-20160930                        XML  14.10M 
14: EX-101.CAL  XBRL Calculations -- wmg-20160930_cal                XML    274K 
15: EX-101.DEF  XBRL Definitions -- wmg-20160930_def                 XML    947K 
16: EX-101.LAB  XBRL Labels -- wmg-20160930_lab                      XML   1.40M 
17: EX-101.PRE  XBRL Presentations -- wmg-20160930_pre               XML   1.39M 
13: EX-101.SCH  XBRL Schema -- wmg-20160930                          XSD    218K 
113: ZIP         XBRL Zipped Folder -- 0001564590-16-029963-xbrl      Zip    375K

‘R42’ — Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

This is an IDEA Financial Report. [ Alternative Formats ]

Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

12 Months Ended

Sep. 30, 2016

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule of Consolidating Balance Sheet

Consolidating Balance Sheet

September 30, 2016

	WMG											WMG		WMG		Warner					Warner
	Acquisition					Non-						Acquisition		Holdings		Music					Music
	Corp.		Guarantor			Guarantor						Corp.		Corp.		Group					Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated		(issuer)		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—	$	180		$	179		$	—		$	359	$	—	$	—	$	—		$	359
Accounts receivable, net		—		177			152			—			329		—		—		—			329
Inventories		—		16			25			—			41		—		—		—			41
Royalty advances expected to be recouped within one year		—		79			49			—			128		—		—		—			128
Prepaid and other current assets		1		13			37			—			51		—		—		—			51
Total current assets		1		465			442			—			908		—		—		—			908
Due (to) from parent companies		750		(312	)		(438	)		—			—		—		—		—			—
Investments in and advances to (from) consolidated subsidiaries		2,260		1,458			—			(3,718	)		—		195		195		(390	)		—
Royalty advances expected to be recouped after one year		—		120			76			—			196		—		—		—			196
Property, plant and equipment, net		—		138			65			—			203		—		—		—			203
Goodwill		—		1,372			255			—			1,627		—		—		—			1,627
Intangible assets subject to amortization, net		—		1,165			1,036			—			2,201		—		—		—			2,201
Intangible assets not subject to amortization		—		71			45			—			116		—		—		—			116
Other assets		37		62			19			—			118		—		—		—			118
Total assets	$	3,048	$	4,539		$	1,500		$	(3,718	)	$	5,369	$	195	$	195	$	(390	)	$	5,369
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—	$	124		$	80		$	—		$	204	$	—	$	—	$	—		$	204
Accrued royalties		—		606			498			—			1,104		—		—		—			1,104
Accrued liabilities		—		112			185			—			297		—		—		—			297
Accrued interest		38		—			—			—			38		—		—		—			38
Deferred revenue		—		143			35			—			178		—		—		—			178
Current portion of long-term debt		—		—			—			—			—		—		—		—			—
Other current liabilities		—		3			18			—			21		—		—		—			21
Total current liabilities		38		988			816			—			1,842		—		—		—			1,842
Long-term debt		2,812		—			—			—			2,812		—		—		—			2,812
Deferred tax liabilities, net		—		109			160			—			269		—		—		—			269
Other noncurrent liabilities		3		126			107			—			236		—		—		—			236
Total liabilities		2,853		1,223			1,083			—			5,159		—		—		—			5,159
Total Warner Music Group Corp. equity (deficit)		195		3,314			404			(3,718	)		195		195		195		(390	)		195
Noncontrolling interest		—		2			13			—			15		—		—		—			15
Total equity (deficit)		195		3,316			417			(3,718	)		210		195		195		(390	)		210
Total liabilities and equity (deficit)	$	3,048	$	4,539		$	1,500		$	(3,718	)	$	5,369	$	195	$	195	$	(390	)	$	5,369

Consolidating Balance Sheet

September 30, 2015

	WMG											WMG		WMG			Warner								Warner
	Acquisition					Non-						Acquisition		Holdings			Music								Music
	Corp.		Guarantor			Guarantor						Corp.		Corp.			Group								Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated		(issuer)			Corp.			Eliminations				Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—	$	73		$	173		$	—		$	246		$	—		$	—		$	—				$	246
Accounts receivable, net		—		170			179			—			349			—			—			—					349
Inventories		—		15			27			—			42			—			—			—					42
Royalty advances expected to be recouped within one year		—		80			50			—			130			—			—			—					130
Prepaid and other current assets		5		9			46			—			60			—			—			—					60
Total current assets		5		347			475			—			827			—			—			—					827
Due (to) from parent companies		863		(174	)		(689	)		—			—			—			—			—					—
Investments in and advances to (from) consolidated subsidiaries		2,365		1,187			—			(3,552	)		—			376			221			(597	)				—
Royalty advances expected to be recouped after one year		—		120			75			—			195			—			—			—					195
Property, plant and equipment, net		—		145			75			—			220			—			—			—					220
Goodwill		—		1,379			253			—			1,632			—			—			—					1,632
Intangible assets subject to amortization, net		—		1,271			1,243			—			2,514			—			—			—					2,514
Intangible assets not subject to amortization		—		71			48			—			119			—			—			—					119
Other assets		39		53			17			—			109			5			—			—					114
Total assets	$	3,272	$	4,399		$	1,497		$	(3,552	)	$	5,616		$	381		$	221		$	(597	)			$	5,621
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—	$	79		$	94		$	—		$	173		$	—		$	—		$	—				$	173
Accrued royalties		—		513			574			—			1,087			—			—			—					1,087
Accrued liabilities		1		269			26			—			296			—			—			—					296
Accrued interest		48		—			—			—			48			10			—			—					58
Deferred revenue		—		140			66			—			206			—			—			—					206
Current portion of long-term debt		13		—			—			—			13			—			—			—					13
Other current liabilities		—		7			18			(1	)		24			—			—			—					24
Total current liabilities		62		1,008			778			(1	)		1,847			10			—			—					1,857
Long-term debt		2,831		—			—			—			2,831			150			—			—					2,981
Deferred tax liabilities, net		—		110			192			—			302			—			—			—					302
Other noncurrent liabilities		3		131			105			3			242			—			—			—					242
Total liabilities		2,896		1,249			1,075			2			5,222			160			—			—					5,382
Total Warner Music Group Corp. equity (deficit)		376		3,149			405			(3,554	)		376			221			221			(597	)				221
Noncontrolling interest		—		1			17			—			18			—			—			—					18
Total equity (deficit)		376		3,150			422			(3,554	)		394			221			221			(597	)				239
Total liabilities and equity (deficit)	$	3,272	$	4,399		$	1,497		$	(3,552	)	$	5,616		$	381		$	221		$	(597	)			$	5,621

Schedule of Consolidating Statement of Operations

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner					Warner
	Acquisition						Non-						Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	1,668		$	1,887		$	(309	)	$	3,246		$	—		$	—	$	—		$	3,246
Costs and expenses:
Cost of revenue		—			(703	)		(1,192	)		188			(1,707	)		—			—		—			(1,707	)
Selling, general and administrative expenses		—			(739	)		(464	)		121			(1,082	)		—			—		—			(1,082	)
Amortization of intangible assets		—			(118	)		(125	)		—			(243	)		—			—		—			(243	)
Total costs and expenses		—			(1,560	)		(1,781	)		309			(3,032	)		—			—		—			(3,032	)
Operating income (loss)		—			108			106			—			214			—			—		—			214
Loss on extinguishment of debt		(4	)		—			—			—			(4	)		(14	)		—		—			(18	)
Interest income (expense), net		(84	)		3			(79	)		1			(159	)		(14	)		—		—			(173	)
Equity gains (losses) from consolidated subsidiaries		162			74			—			(236	)		—			53			25		(78	)		—
Other income (expense), net		(10	)		2			26			—			18			—			—		—			18
Income (loss) before income taxes		64			187			53			(235	)		69			25			25		(78	)		41
Income tax (expense) benefit		(11	)		(20	)		1			19			(11	)		—			—		—			(11	)
Net income (loss)		53			167			54			(216	)		58			25			25		(78	)		30
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—		—			(5	)
Net income (loss) attributable to Warner Music Group Corp.	$	53		$	166		$	50		$	(216	)	$	53		$	25		$	25	$	(78	)	$	25

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2015

	WMG												WMG			WMG			Warner					Warner
	Acquisition						Non-						Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations		Consolidated
	(in millions)
Revenues	$	—		$	1,632		$	1,588		$	(254	)	$	2,966		$	—		$	—		$	—	$	2,966
Costs and expenses:
Cost of revenue		—			(788	)		(866	)		143			(1,511	)		—			—			—		(1,511	)
Selling, general and administrative expenses		1			(675	)		(509	)		110			(1,073	)		—			—			—		(1,073	)
Amortization of intangible assets		—			(122	)		(133	)		—			(255	)		—			—			—		(255	)
Total costs and expenses		1			(1,585	)		(1,508	)		253			(2,839	)		—			—			—		(2,839	)
Operating (loss) income		1			47			80			(1	)		127			—			—			—		127
Loss on extinguishment of debt		—			—			—			—			—			—			—			—		—
Interest income (expense), net		(82	)		6			(83	)		—			(159	)		(22	)		—			—		(181	)
Equity gains (losses) from consolidated subsidiaries		35			(67	)		—			32			—			(69	)		(91	)		160		—
Other income (expense), net		(10	)		1			(12	)		—			(21	)		—			—			—		(21	)
Income (loss) before income taxes		(56	)		(13	)		(15	)		31			(53	)		(91	)		(91	)		160		(75	)
Income tax benefit (expense)		(13	)		(29	)		—			29			(13	)		—			—			—		(13	)
Net income (loss)		(69	)		(42	)		(15	)		60			(66	)		(91	)		(91	)		160		(88	)
Less: income attributable to noncontrolling interest		—			(1	)		(2	)		—			(3	)		—			—			—		(3	)
Net income (loss) attributable to Warner Music Group Corp.	$	(69	)	$	(43	)	$	(17	)	$	60		$	(69	)	$	(91	)	$	(91	)	$	160	$	(91	)

Consolidating Statement of Operations

For The Fiscal Year Ended September 30, 2014

	WMG												WMG			WMG			Warner					Warner
	Acquisition						Non-						Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations		Consolidated
	(in millions)
Revenues	$	—		$	1,498		$	1,804		$	(275	)	$	3,027		$	—		$	—		$	—	$	3,027
Costs and expenses:
Cost of revenue		—			(639	)		(1,089	)		158			(1,570	)		—			—			—		(1,570	)
Selling, general and administrative expenses		(1	)		(633	)		(655	)		117			(1,172	)		—			—			—		(1,172	)
Amortization of intangible assets		—			(120	)		(146	)		—			(266	)		—			—			—		(266	)
Total costs and expenses		(1	)		(1,392	)		(1,890	)		275			(3,008	)		—			—			—		(3,008	)
Operating income (loss)		(1	)		106			(86	)		—			19			—			—			—		19
Loss on extinguishment of debt		(141	)		—			—			—			(141	)		—			—			—		(141	)
Interest income (expense), net		(102	)		9			(88	)		—			(181	)		(22	)		—			—		(203	)
Equity gains (losses) from consolidated subsidiaries		(80	)		113			—			(33	)		—			(286	)		(308	)		594		—
Other income (expense), net		12			(18	)		2			—			(4	)		—			—			—		(4	)
Income (loss) before income taxes		(312	)		210			(172	)		(33	)		(307	)		(308	)		(308	)		594		(329	)
Income tax benefit (expense)		26			(9	)		26			(17	)		26			—			—			—		26
Net income (loss)		(286	)		201			(146	)		(50	)		(281	)		(308	)		(308	)		594		(303	)
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—		(5	)
Net income (loss) attributable to Warner Music Group Corp.	$	(286	)	$	200		$	(150	)	$	(50	)	$	(286	)	$	(308	)	$	(308	)	$	594	$	(308	)

Schedule of Consolidating Statement of Comprehensive Income

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Net income (loss)	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		(44	)		—			(44	)		44			(44	)		(44	)		(44	)		88			(44	)
Minimum pension liability		(7	)		—			(7	)		7			(7	)		(7	)		(7	)		14			(7	)
Deferred (loss) gain on derivative financial instruments		—			(1	)		—			1			—			—			—			—			—
Other comprehensive (loss) income , net of tax:		(51	)		(1	)		(51	)		52			(51	)		(51	)		(51	)		102			(51	)
Total comprehensive (loss) income		2			166			3			(164	)		7			(26	)		(26	)		24			(21	)
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—			(5	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	2		$	165		$	(1	)	$	(164	)	$	2		$	(26	)	$	(26	)	$	24		$	(26	)

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2015

	WMG											WMG			WMG			Warner					Warner
	Acquisition						Non-					Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor					Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations		Consolidated			(issuer)			Corp.			Eliminations		Consolidated
	(in millions)
Net (loss) income	$	(69	)	$	(42	)	$	(15	)	$	60	$	(66	)	$	(91	)	$	(91	)	$	160	$	(88	)
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		(59	)		—			(59	)		59		(59	)		(59	)		(59	)		118		(59	)
Minimum pension liability		—			—			—			—		—			—			—			—		—
Other comprehensive income (loss), net of tax:		(59	)		—			(59	)		59		(59	)		(59	)		(59	)		118		(59	)
Total comprehensive (loss) income		(128	)		(42	)		(74	)		119		(125	)		(150	)		(150	)		278		(147	)
Less: income attributable to noncontrolling interest		—			(1	)		(2	)		—		(3	)		—			—			—		(3	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	(128	)	$	(43	)	$	(76	)	$	119	$	(128	)	$	(150	)	$	(150	)	$	278	$	(150	)

Consolidating Statement of Comprehensive Income

For The Fiscal Year Ended September 30, 2014

	WMG												WMG			WMG			Warner					Warner
	Acquisition						Non-						Acquisition			Holdings			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations		Consolidated
	(in millions)
Net (loss) income	$	(286	)	$	201		$	(146	)	$	(50	)	$	(281	)	$	(308	)	$	(308	)	$	594	$	(303	)
Other comprehensive income (loss), net of tax:
Foreign currency adjustment		(41	)		—			(41	)		41			(41	)		(41	)		(41	)		82		(41	)
Minimum Pension Liability		(6	)		—			(6	)		6			(6	)		(6	)		(6	)		12		(6	)
Other comprehensive income (loss), net of tax:		(47	)		—			(47	)		47			(47	)		(47	)		(47	)		94		(47	)
Total comprehensive (loss) income		(333	)		201			(193	)		(3	)		(328	)		(355	)		(355	)		688		(350	)
Less: income attributable to noncontrolling interest		—			(1	)		(4	)		—			(5	)		—			—			—		(5	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	(333	)	$	200		$	(197	)	$	(3	)	$	(333	)	$	(355	)	$	(355	)	$	688	$	(355	)

Schedule of Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2016

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income (loss)	$	53		$	167		$	54		$	(216	)	$	58		$	25		$	25		$	(78	)	$	30
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		—			156			137			—			293			—			—			—			293
Unrealized gains/losses and remeasurement of foreign denominated loans		—			—			—			—			—			—			—			—			—
Deferred income taxes		—			—			(26	)		—			(26	)		—			—			—			(26	)
Loss on extinguishment of debt		4			—			—			—			4			14			—			—			18
Net gain on divestitures		—			(3	)		(6	)		—			(9	)		—			—			—			(9	)
Gain on sale of real estate		—			—			(24	)		—			(24	)		—			—			—			(24	)
Non-cash interest expense		10			—			—			—			10			1			—			—			11
Non-cash share-based compensation expense		—			23			—			—			23			—			—			—			23
Equity losses (gains), including distributions		(162	)		(74	)		—			236			—			(53	)		(25	)		78			—
Changes in operating assets and liabilities:
Accounts receivable		—			(7	)		24			—			17			—			—			—			17
Inventories		—			—			—			—			—			—			—			—			—
Royalty advances		—			1			(14	)		—			(13	)		—			—			—			(13	)
Accounts payable and accrued liabilities		—			142			(99	)		(20	)		23			—			—			—			23
Royalty payables		—			93			(44	)		—			49			—			—			—			49
Accrued interest		(10	)		—			—			—			(10	)		(10	)		—			—			(20	)
Deferred revenue		—			(4	)		(31	)		—			(35	)		—			—			—			(35	)
Other balance sheet changes		(4	)		(10	)		19			—			5			—			—			—			5
Net cash (used in) provided by operating activities		(109	)		484			(10	)		—			365			(23	)		—			—			342
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(16	)		(9	)		—			(25	)		—			—			—			(25	)
Capital expenditures		—			(30	)		(12	)		—			(42	)		—			—			—			(42	)
Investments and acquisitions of businesses, net		—			(10	)		(18	)		—			(28	)		—			—			—			(28	)
Divestitures, net of cash on hand		—			8			37			—			45			—			—			—			45
Proceeds from the sale of real estate		—			—			42			—			42			—			—			—			42
Advance to Issuer		329			—			—			(329	)		—			—			—			—			—
Net cash (used in) provided by investing activities		329			(48	)		40			(329	)		(8	)		—			—			—			(8	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(183	)		—			—			—			(183	)		183			—			—			—
Repayment of Acquisition Corp. Senior Term Loan Facility		(309	)		—			—			—			(309	)		—			—			—			(309	)
Proceeds from issuance of Acquisition Corp. 5.00% Senior Secured Notes		300			—			—			—			300			—			—			—			300
Repayment of Holdings 13.75% Senior Notes		—			—			—			—			—			(150	)		—			—			(150	)
Repayment of Acquisition Corp. 6.75% Senior Notes		(24	)		—			—			—			(24	)		—			—			—			(24	)
Financing costs paid		—			—			—			—			—			(10	)		—			—			(10	)
Deferred financing costs paid		(4	)		—			—			—			(4	)		—			—			—			(4	)
Distribution to noncontrolling interest holder		—			—			(5	)		—			(5	)		—			—			—			(5	)
Repayment of capital lease obligations		—			—			(14	)		—			(14	)		—			—			—			(14	)
Change in due to (from) issuer		—			(329	)		—			329			—			—			—			—			—
Net cash (used in) provided by financing activities		(220	)		(329	)		(19	)		329			(239	)		23			—			—			(216	)
Effect of exchange rate changes on cash and equivalents		—			—			(5	)		—			(5	)		—			—			—			(5	)
Net increase in cash and equivalents		—			107			6			—			113			—			—			—			113
Cash and equivalents at beginning of period		—			73			173			—			246			—			—			—			246
Cash and equivalents at end of period	$	—		$	180		$	179		$	—		$	359		$	—		$	—		$	—		$	359

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2015

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net (loss) income	$	(69	)	$	(42	)	$	(15	)	$	60		$	(66	)	$	(91	)	$	(91	)	$	160		$	(88	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss on extinguishment of debt		—			—			—			—			—			—			—			—			—
Depreciation and amortization		(1	)		162			148			—			309			—			—			—			309
Unrealized gains/losses and remeasurement of foreign denominated loans		21			55			(48	)		—			28			—			—			—			28
Deferred income taxes		—			—			(11	)		—			(11	)		—			—			—			(11	)
Gain on sale of assets		—			—			—			—			—			—			—			—			—
Non-cash interest expense		10			—			—			—			10			1			—			—			11
Non-cash share-based compensation expense		—			3			—			—			3			—			—			—			3
Equity losses (gains), including distributions		(35	)		67			—			(32	)		—			69			91			(160	)		—
Changes in operating assets and liabilities:
Accounts receivable		—			4			2			—			6			—			—			—			6
Inventories		—			(1	)		(5	)		—			(6	)		—			—			—			(6	)
Royalty advances		—			(23	)		(23	)		—			(46	)		—			—			—			(46	)
Accounts payable and accrued liabilities		—			26			(15	)		(28	)		(17	)		—			—			—			(17	)
Royalty payables		—			(19	)		46			—			27			—			—			—			27
Accrued interest		(2	)		—			—			—			(2	)		—			—			—			(2	)
Deferred revenue		—			(9	)		21			—			12			—			—			—			12
Other balance sheet changes		—			3			(7	)		—			(4	)		—			—			—			(4	)
Net cash provided by (used in) operating activities		(76	)		226			93			—			243			(21	)		—			—			222
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(9	)		(7	)		—			(16	)		—			—			—			(16	)
Capital expenditures		—			(48	)		(15	)		—			(63	)		—			—			—			(63	)
Investments and acquisitions of businesses, net		—			(11	)		(5	)		—			(16	)		—			—			—			(16	)
Advances to issuer		110			—			—			(110	)		—			—			—			—			—
Net cash provided by (used in) investing activities		110			(68	)		(27	)		(110	)		(95	)		—			—			—			(95	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(21	)		—			—			—			(21	)		21			—			—			—
Proceeds from the Revolving Credit Facility		258			—			—			—			258			—			—			—			258
Repayment of the Revolving Credit Facility		(258	)		—			—			—			(258	)		—			—			—			(258	)
Repayment of Acquisition Corp. Senior Term Loan Facility		(13	)		—			—			—			(13	)		—			—			—			(13	)
Proceeds from issuance of Acquisition Corp. 5.625% Senior Secured Notes		—			—			—			—			—			—			—			—			—
Proceeds from issuance of Acquisition Corp. 6.750% Senior Notes		—			—			—			—			—			—			—			—			—
Repayment of Acquisition Corp. 11.5% Senior Notes		—			—			—			—			—			—			—			—			—
Financing costs paid		—			—			—			—			—			—			—			—			—
Deferred financing costs paid		—			—			—			—			—			—			—			—			—
Distribution to noncontrolling interest holder		—			(1	)		(2	)		—			(3	)		—			—			—			(3	)
Repayment of capital lease obligations		—			—			(3	)		—			(3	)		—			—			—			(3	)
Change in due to (from) issuer		—			(110	)		—			110			—			—			—			—			—
Net cash provided by (used in) financing activities		(34	)		(111	)		(5	)		110			(40	)		21			—			—			(19	)
Effect of exchange rate changes on cash and equivalents		—			—			(19	)		—			(19	)		—			—			—			(19	)
Net increase (decrease) in cash and equivalents		—			47			42			—			89			—			—			—			89
Cash and equivalents at beginning of period		—			26			131			—			157			—			—			—			157
Cash and equivalents at end of period	$	—		$	73		$	173		$	—		$	246		$	—		$	—		$	—		$	246

Consolidating Statement of Cash Flows

For The Fiscal Year Ended September 30, 2014

	WMG												WMG			WMG			Warner						Warner
	Acquisition						Non-						Acquisition			Holdings			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Corp.			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			(issuer)			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net (loss) income	$	(286	)	$	201		$	(146	)	$	(50	)	$	(281	)	$	(308	)	$	(308	)	$	594		$	(303	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss on extinguishment of debt		141			—			—			—			141			—			—			—			141
Depreciation and amortization		—			160			161			—			321			—			—			—			321
Unrealized gains/losses and remeasurement of foreign denominated loans		(12	)		(23	)		(4	)		—			(39	)											(39	)
Deferred income taxes		—			—			(55	)		—			(55	)		—			—			—			(55	)
Gain on sale of assets		—			(2	)		—			—			(2	)		—			—			—			(2	)
Non-cash interest expense		12			—			—			—			12			1			—			—			13
Non-cash share-based compensation expense		—			8			—			—			8			—			—			—			8
Equity losses (gains), including distributions		80			(113	)		—			33			—			286			308			(594	)		—
Changes in operating assets and liabilities:
Accounts receivable		—			10			62			—			72			—			—			—			72
Inventories		—			(3	)		(4	)		—			(7	)		—			—			—			(7	)
Royalty advances		—			(9	)		(23	)		—			(32	)		—			—			—			(32	)
Accounts payable and accrued liabilities		—			(162	)		75			—			(87	)		—			—			—			(87	)
Royalty payables		—			(38	)		63			—			25			—			—			—			25
Accrued interest		(15	)		—			—			—			(15	)		—			—			—			(15	)
Deferred revenue		—			107			(12	)		—			95			—			—			—			95
Other balance sheet changes		—			2			(22	)		15			(5	)		—			—			—			(5	)
Net cash provided by (used in) operating activities		(80	)		138			95			(2	)		151			(21	)		—			—			130
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(16	)		(10	)		—			(26	)		—			—			—			(26	)
Capital expenditures		—			(53	)		(23	)		—			(76	)		—			—			—			(76	)
Investments and acquisitions of businesses, net		—			2			(55	)		—			(53	)		—			—			—			(53	)
Advances to issuer		58			—			—			(58	)		—			—			—			—			—
Net cash provided by (used in) investing activities		58			(67	)		(88	)		(58	)		(155	)		—			—			—			(155	)
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(21	)		—			—			—			(21	)		21			—			—			—
Proceeds from the Revolving Credit Facility		600			—			—			—			600			—			—			—			600
Repayment of the Revolving Credit Facility		(600	)		—			—			—			(600	)		—			—			—			(600	)
Repayment of Acquisition Corp. Senior Term Loan Facility		(10	)		—			—			—			(10	)		—			—			—			(10	)
Proceeds from issuance of Acquisition Corp. 5.625% Senior Secured Notes		275			—			—			—			275			—			—			—			275
Proceeds from issuance of Acquisition Corp. 6.750% Senior Notes		660			—			—			—			660			—			—			—			660
Repayment of Acquisition Corp. 11.5% Senior Notes		(765	)		—			—			—			(765	)		—			—			—			(765	)
Financing costs paid		(104	)		—			—			—			(104	)		—			—			—			(104	)
Deferred financing costs paid		(13	)		—			—			—			(13	)		—			—			—			(13	)
Distribution to noncontrolling interest holder		—			(1	)		(2	)		—			(3	)		—			—			—			(3	)
Repayment of capital lease obligations		—			—			(3	)		—			(3	)		—			—			—			(3	)
Change in due to (from) issuer		—			(60	)		—			60			—			—			—			—			—
Net cash provided by (used in) financing activities		22			(61	)		(5	)		60			16			21			—			—			37
Effect of exchange rate changes on cash and equivalents		—			—			(10	)		—			(10	)		—			—			—			(10	)
Net increase (decrease) in cash and equivalents		—			10			(8	)		—			2			—			—			—			2
Cash and equivalents at beginning of period		—			16			139			—			155			—			—			—			155
Cash and equivalents at end of period	$	—		$	26		$	131		$	—		$	157		$	—		$	—		$	—		$	157

Dates Referenced Herein and Documents Incorporated by Reference

This ‘10-K’ Filing	Date	Other Filings

Filed on:	12/8/16	8-K, D
For Period end:	9/30/16
	9/30/15	10-K
	9/30/14	10-K
		List all Filings

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Filing Submission 0001564590-16-029963 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Warner Music Group Corp. – ‘10-K’ for 9/30/16 – ‘R42’

On: Thursday, 12/8/16, at 7:47am ET · For: 9/30/16 · Accession #: 1564590-16-29963 · File #: 1-32502

Previous ‘10-K’: ‘10-K’ on 12/10/15 for 9/30/15 · Next: ‘10-K’ on 12/5/17 for 9/30/17 · Latest: ‘10-K’ on 11/21/23 for 9/30/23

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

‘R42’ — Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

This is an IDEA Financial Report. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

Warner Music Group Corp. – ‘10-K’ for 9/30/16 – ‘R42’

On: Thursday, 12/8/16, at 7:47am ET · For: 9/30/16 · Accession #: 1564590-16-29963 · File #: 1-32502

Previous ‘10-K’: ‘10-K’ on 12/10/15 for 9/30/15 · Next: ‘10-K’ on 12/5/17 for 9/30/17 · Latest: ‘10-K’ on 11/21/23 for 9/30/23

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘R42’ — Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

This is an IDEA Financial Report. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents