2017 Q1 Form 10-Q Financial Statement
#000156459017001057 Filed on February 07, 2017
Income Statement
| Concept | 2017 Q1 | 2016 Q4 | 2015 Q4 |
|---|---|---|---|
| Revenue | $825.0M | $917.0M | $849.0M |
| YoY Change | 10.74% | 8.01% | 2.41% |
| Cost Of Revenue | $415.0M | $496.0M | $449.0M |
| YoY Change | 10.96% | 10.47% | 0.9% |
| Gross Profit | $410.0M | $421.0M | $400.0M |
| YoY Change | 10.51% | 5.25% | 4.17% |
| Gross Profit Margin | 49.7% | 45.91% | 47.11% |
| Selling, General & Admin | $282.0M | $276.0M | $276.0M |
| YoY Change | 10.16% | 0.0% | -6.76% |
| % of Gross Profit | 68.78% | 65.56% | 69.0% |
| Research & Development | |||
| YoY Change | |||
| % of Gross Profit | |||
| Depreciation & Amortization | $13.00M | $63.00M | $75.00M |
| YoY Change | 8.33% | -16.0% | -5.06% |
| % of Gross Profit | 3.17% | 14.96% | 18.75% |
| Operating Expenses | $282.0M | $276.0M | $276.0M |
| YoY Change | 10.16% | 0.0% | -6.76% |
| Operating Profit | $78.00M | $94.00M | $62.00M |
| YoY Change | 50.0% | 51.61% | 169.57% |
| Interest Expense | -$36.00M | -$40.00M | -$45.00M |
| YoY Change | -16.28% | -11.11% | -2.17% |
| % of Operating Profit | -46.15% | -42.55% | -72.58% |
| Other Income/Expense, Net | -$19.00M | $19.00M | $8.000M |
| YoY Change | -186.36% | 137.5% | -188.89% |
| Pretax Income | $23.00M | $41.00M | $25.00M |
| YoY Change | -14.81% | 64.0% | -178.13% |
| Income Tax | $3.000M | $17.00M | -$3.000M |
| % Of Pretax Income | 13.04% | 41.46% | -12.0% |
| Net Earnings | $19.00M | $22.00M | $27.00M |
| YoY Change | 72.73% | -18.52% | -164.29% |
| Net Earnings / Revenue | 2.3% | 2.4% | 3.18% |
| Basic Earnings Per Share | |||
| Diluted Earnings Per Share | $37.25K | $43.14K | $52.94K |
| COMMON SHARES | |||
| Basic Shares Outstanding | 1.055K | 1.055K | 1.055K |
| Diluted Shares Outstanding |
Balance Sheet
| Concept | 2017 Q1 | 2016 Q4 | 2015 Q4 |
|---|---|---|---|
| SHORT-TERM ASSETS | |||
| Cash & Short-Term Investments | $476.0M | $455.0M | $278.0M |
| YoY Change | 50.63% | 63.67% | 91.72% |
| Cash & Equivalents | $476.0M | $455.0M | $278.0M |
| Short-Term Investments | |||
| Other Short-Term Assets | $182.0M | $186.0M | $195.0M |
| YoY Change | -8.54% | -4.62% | -4.88% |
| Inventory | $36.00M | $36.00M | $41.00M |
| Prepaid Expenses | |||
| Receivables | $361.0M | $384.0M | $408.0M |
| Other Receivables | $0.00 | $0.00 | $0.00 |
| Total Short-Term Assets | $1.055B | $1.061B | $922.0M |
| YoY Change | 20.71% | 15.08% | 11.76% |
| LONG-TERM ASSETS | |||
| Property, Plant & Equipment | $197.0M | $195.0M | $217.0M |
| YoY Change | -6.19% | -10.14% | -6.87% |
| Goodwill | |||
| YoY Change | |||
| Intangibles | $2.172B | $2.201B | $2.542B |
| YoY Change | -11.92% | -13.41% | -11.55% |
| Long-Term Investments | |||
| YoY Change | |||
| Other Assets | $266.0M | $271.0M | $105.0M |
| YoY Change | -15.02% | 158.1% | -61.54% |
| Total Long-Term Assets | $4.249B | $4.279B | $4.691B |
| YoY Change | -7.85% | -8.78% | -6.72% |
| TOTAL ASSETS | |||
| Total Short-Term Assets | $1.055B | $1.061B | $922.0M |
| Total Long-Term Assets | $4.249B | $4.279B | $4.691B |
| Total Assets | $5.304B | $5.340B | $5.613B |
| YoY Change | -3.3% | -4.86% | -4.12% |
| SHORT-TERM LIABILITIES | |||
| YoY Change | |||
| Accounts Payable | $200.0M | $152.0M | $161.0M |
| YoY Change | 13.64% | -5.59% | -0.62% |
| Accrued Expenses | $1.456B | $1.531B | $297.0M |
| YoY Change | 3.7% | 415.49% | -79.43% |
| Deferred Revenue | |||
| YoY Change | |||
| Short-Term Debt | $0.00 | $0.00 | $0.00 |
| YoY Change | |||
| Long-Term Debt Due | $13.00M | ||
| YoY Change | 0.0% | ||
| Total Short-Term Liabilities | $1.855B | $1.944B | $1.887B |
| YoY Change | 1.87% | 3.02% | -0.89% |
| LONG-TERM LIABILITIES | |||
| Long-Term Debt | $2.767B | $2.755B | $2.973B |
| YoY Change | -4.55% | -7.33% | -1.06% |
| Other Long-Term Liabilities | $241.0M | $233.0M | $228.0M |
| YoY Change | 0.84% | 2.19% | -10.94% |
| Total Long-Term Liabilities | $3.008B | $2.988B | $3.201B |
| YoY Change | -4.14% | -6.65% | -1.84% |
| TOTAL LIABILITIES | |||
| Total Short-Term Liabilities | $1.855B | $1.944B | $1.887B |
| Total Long-Term Liabilities | $3.008B | $2.988B | $3.201B |
| Total Liabilities | $5.117B | $5.200B | $5.390B |
| YoY Change | -2.79% | -3.53% | -3.04% |
| SHAREHOLDERS EQUITY | |||
| Retained Earnings | -$726.0M | -$747.0M | |
| YoY Change | |||
| Common Stock | $1.128B | $1.128B | |
| YoY Change | |||
| Preferred Stock | |||
| YoY Change | |||
| Treasury Stock (at cost) | |||
| YoY Change | |||
| Treasury Stock Shares | |||
| Shareholders Equity | $170.0M | $124.0M | $223.0M |
| YoY Change | |||
| Total Liabilities & Shareholders Equity | $5.304B | $5.340B | $5.613B |
| YoY Change | -3.3% | -4.86% | -4.12% |
Cashflow Statement
| Concept | 2017 Q1 | 2016 Q4 | 2015 Q4 |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | $19.00M | $22.00M | $27.00M |
| YoY Change | 72.73% | -18.52% | -164.29% |
| Depreciation, Depletion And Amortization | $13.00M | $63.00M | $75.00M |
| YoY Change | 8.33% | -16.0% | -5.06% |
| Cash From Operating Activities | $70.00M | $156.0M | $61.00M |
| YoY Change | -36.94% | 155.74% | 74.29% |
| INVESTING ACTIVITIES | |||
| Capital Expenditures | -$15.00M | -$9.000M | -$17.00M |
| YoY Change | -16.67% | -47.06% | -41.38% |
| Acquisitions | $3.000M | $1.000M | |
| YoY Change | 200.0% | -87.5% | |
| Other Investing Activities | $15.00M | -$3.000M | -$1.000M |
| YoY Change | -63.41% | 200.0% | -87.5% |
| Cash From Investing Activities | $0.00 | -$12.00M | -$18.00M |
| YoY Change | -100.0% | -33.33% | -51.35% |
| FINANCING ACTIVITIES | |||
| Cash Dividend Paid | |||
| YoY Change | |||
| Common Stock Issuance & Retirement, Net | |||
| YoY Change | |||
| Debt Paid & Issued, Net | $3.000M | ||
| YoY Change | 0.0% | ||
| Cash From Financing Activities | -55.00M | -38.00M | -6.000M |
| YoY Change | -41.49% | 533.33% | 100.0% |
| NET CHANGE | |||
| Cash From Operating Activities | 70.00M | 156.0M | 61.00M |
| Cash From Investing Activities | 0.000 | -12.00M | -18.00M |
| Cash From Financing Activities | -55.00M | -38.00M | -6.000M |
| Net Change In Cash | 15.00M | 106.0M | 37.00M |
| YoY Change | -62.5% | 186.49% | -840.0% |
| FREE CASH FLOW | |||
| Cash From Operating Activities | $70.00M | $156.0M | $61.00M |
| Capital Expenditures | -$15.00M | -$9.000M | -$17.00M |
| Free Cash Flow | $85.00M | $165.0M | $78.00M |
| YoY Change | -34.11% | 111.54% | 21.88% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2016Q4 | us-gaap |
Other Liabilities Current
OtherLiabilitiesCurrent
|
86000000 | |
| CY2016Q4 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
1944000000 | |
| CY2016Q4 | us-gaap |
Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
|
268000000 | |
| CY2016Q4 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
233000000 | |
| CY2016Q4 | us-gaap |
Liabilities
Liabilities
|
5200000000 | |
| CY2016Q4 | us-gaap |
Additional Paid In Capital Common Stock
AdditionalPaidInCapitalCommonStock
|
1128000000 | |
| CY2016Q4 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
-747000000 | |
| CY2016Q4 | us-gaap |
Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
|
-257000000 | |
| CY2016Q4 | us-gaap |
Stockholders Equity
StockholdersEquity
|
124000000 | |
| CY2016Q4 | us-gaap |
Minority Interest
MinorityInterest
|
16000000 | |
| CY2016Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
140000000 | |
| CY2016Q4 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
5340000000 | |
| CY2016Q4 | us-gaap |
Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
|
68000000 | |
| CY2016Q4 | us-gaap |
Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
|
276000000 | |
| CY2016Q4 | us-gaap |
Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
|
51000000 | |
| CY2016Q4 | us-gaap |
Costs And Expenses
CostsAndExpenses
|
823000000 | |
| CY2016Q4 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
94000000 | |
| CY2016Q4 | us-gaap |
Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
|
-32000000 | |
| CY2016Q4 | dei |
Entity Filer Category
EntityFilerCategory
|
Non-accelerated Filer | |
| CY2017Q1 | dei |
Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
|
1055 | |
| CY2016Q4 | us-gaap |
Long Term Debt Noncurrent
LongTermDebtNoncurrent
|
2755000000 | |
| CY2016Q4 | us-gaap |
Common Stock Value
CommonStockValue
|
0 | |
| CY2016Q4 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2016Q4 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
10000 | |
| CY2016Q4 | us-gaap |
Revenues
Revenues
|
917000000 | |
| CY2016Q4 | us-gaap |
Cost Of Revenue
CostOfRevenue
|
496000000 | |
| CY2016Q4 | us-gaap |
Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
|
3000000 | |
| CY2015Q4 | us-gaap |
Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
|
2000000 | |
| CY2016Q4 | us-gaap |
Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
|
0 | |
| CY2015Q4 | us-gaap |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
|
0.35 | |
| CY2016Q4 | us-gaap |
Common Stock Shares Issued
CommonStockSharesIssued
|
1055 | |
| CY2016Q4 | us-gaap |
Common Stock Shares Outstanding
CommonStockSharesOutstanding
|
1055 | |
| CY2016Q4 | us-gaap |
Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
|
24000000 | |
| CY2015Q4 | us-gaap |
Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
|
28000000 | |
| CY2015Q4 | us-gaap |
Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
|
-1000000 | |
| CY2015Q4 | us-gaap |
Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
|
8000000 | |
| CY2016Q4 | wmg |
Share Based Compensation Expense Reversal
ShareBasedCompensationExpenseReversal
|
10000000 | |
| CY2015Q4 | wmg |
Share Based Compensation Expense Reversal
ShareBasedCompensationExpenseReversal
|
1000000 | |
| CY2016Q4 | us-gaap |
Number Of Operating Segments
NumberOfOperatingSegments
|
2 | |
| CY2016Q4 | wmg |
Number Of Songwriters And Composers
NumberOfSongwritersAndComposers
|
70000 | |
| CY2016Q4 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
|
-38900000 | |
| CY2016Q4 | us-gaap |
Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
|
2000000 | |
| CY2016Q4 | us-gaap |
Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
|
22000000 | |
| CY2016Q4 | us-gaap |
Payments Of Financing Costs
PaymentsOfFinancingCosts
|
27000000 | |
| CY2016Q4 | us-gaap |
Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
|
12000000 | |
| CY2015Q4 | us-gaap |
Payments To Minority Shareholders
PaymentsToMinorityShareholders
|
3000000 | |
| CY2016Q4 | us-gaap |
Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
|
-38000000 | |
| CY2015Q4 | us-gaap |
Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
|
-6000000 | |
| CY2016Q4 | us-gaap |
Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
|
-10000000 | |
| CY2015Q4 | us-gaap |
Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
|
-5000000 | |
| CY2016Q4 | us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
96000000 | |
| CY2015Q4 | us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
32000000 | |
| CY2015Q3 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
246000000 | |
| CY2015Q4 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
278000000 | |
| CY2016Q4 | us-gaap |
Dividends Common Stock
DividendsCommonStock
|
54000000 | |
| CY2016Q4 | us-gaap |
Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
|
1000000 | |
| CY2016Q4 | us-gaap |
Nature Of Operations
NatureOfOperations
|
<div> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1. Description of Business </p> <p style="margin-bottom:0pt;margin-top:6pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.54%;">Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. The Company is the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music-based content companies. </p> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Acquisition of Warner Music Group by Access Industries </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant to an Agreement and Plan of Merger, dated as of May 6, 2011 (the “Merger Agreement”), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company (“Parent”) and an affiliate of Access Industries, Inc. (“Access”), and Airplanes Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), on July 20, 2011 (the “Merger Closing Date”) Merger Sub merged with and into the Company with the Company surviving as a wholly owned subsidiary of Parent (the “Merger”). In connection with the Merger, the Company delisted its common stock from the New York Stock Exchange (“NYSE”). The Company continues to voluntarily file with the SEC current and periodic reports that would be required to be filed with the SEC pursuant to Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as provided for in certain covenants contained in the agreements governing its outstanding indebtedness. </p> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Acquisition of Parlophone Label Group </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On July 1, 2013, the Company completed its acquisition of Parlophone Label Group (the “PLG Acquisition”).</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. A brief description of these operations is presented below. </p> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Recorded Music Operations </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company’s Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company plays an integral role in virtually all aspects of the recorded music value chain from discovering and developing talent to producing albums and marketing and promoting artists and their products. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the United States, Recorded Music operations are conducted principally through the Company’s major record labels—Warner Bros. Records and Atlantic Records. The Company’s Recorded Music operations also include Rhino, a division that specializes in marketing the Company’s music catalog through compilations and reissuances of previously released music and video titles. The Company also conducts its Recorded Music operations through a collection of additional record labels, including, Asylum, Big Beat, Canvasback, Eastwest, Elektra, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Warner Classics and Warner Music Nashville. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outside the United States, Recorded Music activities are conducted in more than 50 countries through various subsidiaries, affiliates and non-affiliated licensees. Internationally, the Company engages in the same activities as in the United States: discovering and signing artists and distributing, marketing and selling their recorded music. In most cases, the Company also markets and distributes the records of those artists for whom the Company’s domestic record labels have international rights. In certain smaller markets, the Company licenses the right to distribute the Company’s records to non-affiliated third-party record labels. The Company’s international artist services operations include a network of concert promoters through which it provides resources to coordinate tours for the Company’s artists and other artists as well as management companies that guide artists with respect to their careers.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company’s Recorded Music distribution operations include Warner-Elektra-Atlantic Corporation (“WEA Corp.”), which markets and sells music and video products to retailers and wholesale distributors; Alternative Distribution Alliance (“ADA”), which distributes the products of independent labels to retail and wholesale distributors; and various distribution centers and ventures operated internationally.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition to the Company’s Recorded Music products being sold in physical retail outlets, Recorded Music products are also sold in physical form to online physical retailers such as Amazon.com, barnesandnoble.com and bestbuy.com and in digital form to online digital download services such as Apple’s iTunes and Google Play, and are offered by digital streaming services such as Apple Music, Deezer, Napster, Spotify and YouTube, including digital radio services such as iHeart Radio, Pandora and Sirius XM. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has integrated the exploitation of digital content into all aspects of its business, including artist and repertoire (“A&R”), marketing, promotion and distribution. The Company’s business development executives work closely with A&R departments to ensure that while a record is being produced, digital assets are also created with all distribution channels in mind, including streaming services, social networking sites, online portals and music-centered destinations. The Company also works side by side with its online and mobile partners to test new concepts. The Company believes existing and new digital businesses will be a significant source of growth and will provide new opportunities to successfully monetize its assets and create new revenue streams. The proportion of digital revenues attributed to each distribution channel varies by region and proportions may change as the roll out of new technologies continues. As an owner of music content, the Company believes it is well positioned to take advantage of growth in digital distribution and emerging technologies to maximize the value of its assets. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has diversified its revenues beyond its traditional businesses by entering into expanded-rights deals with recording artists in order to partner with artists in other aspects of their careers. Under these agreements, the Company provides services to and participates in artists’ activities outside the traditional recorded music business such as touring, merchandising and sponsorships. The Company has built artist services capabilities and platforms for exploiting this broader set of music-related rights and participating more widely in the monetization of the artist brands it helps create. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company believes that entering into expanded-rights deals and enhancing its artist services capabilities in areas such as concert promotion and management have permitted it to diversify revenue streams and capitalize on other revenue opportunities. This provides for improved long-term relationships with artists and allows the Company to more effectively connect artists and fans. </p> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Music Publishing Operations </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While recorded music is focused on exploiting a particular recording of a composition, music publishing is an intellectual property business focused on the exploitation of the composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, the Company’s Music Publishing business garners a share of the revenues generated from use of the composition. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company’s Music Publishing operations are conducted principally through Warner/Chappell, its global Music Publishing company, headquartered in Los Angeles with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. The Company owns or controls rights to more than one million musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over decades, its award-winning catalog includes over 70,000 songwriters and composers and a diverse range of genres including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative, gospel and other Christian music. Warner/Chappell also administers the music and soundtracks of several third-party television and film producers and studios, including Lucasfilm, Ltd., Hallmark Entertainment and Disney Music Publishing. The Company has an extensive production music library collectively branded as Warner/Chappell Production Music.</p></div> | |
| CY2016Q3 | us-gaap |
Long Term Debt
LongTermDebt
|
2778000000 | |
| CY2016Q4 | us-gaap |
Debt Instrument Face Amount
DebtInstrumentFaceAmount
|
2798000000 | |
| CY2016Q3 | us-gaap |
Debt Instrument Face Amount
DebtInstrumentFaceAmount
|
2815000000 | |
| CY2016Q4 | us-gaap |
Goodwill Other Increase Decrease
GoodwillOtherIncreaseDecrease
|
-17000000 | |
| CY2016Q4 | us-gaap |
Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
|
3221000000 | |
| CY2016Q3 | us-gaap |
Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
|
3322000000 | |
| CY2016Q4 | us-gaap |
Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
|
1135000000 | |
| CY2016Q3 | us-gaap |
Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
|
1121000000 | |
| CY2016Q4 | us-gaap |
Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
|
2201000000 | |
| CY2016Q3 | us-gaap |
Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
|
2317000000 | |
| CY2016Q4 | us-gaap |
Long Term Debt
LongTermDebt
|
2755000000 | |
| CY2016Q4 | us-gaap |
Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
|
8000000 | |
| CY2016Q3 | us-gaap |
Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
|
3000000 | |
| CY2016Q4 | us-gaap |
Deferred Finance Costs Gross
DeferredFinanceCostsGross
|
35000000 | |
| CY2016Q3 | us-gaap |
Deferred Finance Costs Gross
DeferredFinanceCostsGross
|
34000000 | |
| CY2016Q4 | us-gaap |
Longterm Debt Weighted Average Interest Rate
LongtermDebtWeightedAverageInterestRate
|
0.049 | |
| CY2016Q3 | us-gaap |
Longterm Debt Weighted Average Interest Rate
LongtermDebtWeightedAverageInterestRate
|
0.053 | |
| CY2015Q4 | us-gaap |
Longterm Debt Weighted Average Interest Rate
LongtermDebtWeightedAverageInterestRate
|
0.056 | |
| CY2016Q4 | us-gaap |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
|
0.35 | |
| CY2016Q4 | us-gaap |
Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
|
0 | |
| CY2015Q4 | us-gaap |
Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
|
10000000 | |
| CY2016Q4 | us-gaap |
Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax
AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax
|
-2000000 | |
| CY2016Q3 | invest |
Derivative Notional Amount
DerivativeNotionalAmount
|
0 | |
| CY2016Q3 | us-gaap |
Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax
AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax
|
0 | |
| CY2016Q4 | us-gaap |
Derivative Fair Value Of Derivative Asset
DerivativeFairValueOfDerivativeAsset
|
15000000 | |
| CY2016Q4 | us-gaap |
Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
|
9000000 | |
| CY2016Q3 | us-gaap |
Derivative Fair Value Of Derivative Asset
DerivativeFairValueOfDerivativeAsset
|
0 | |
| CY2016Q3 | us-gaap |
Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
|
0 | |
| CY2016Q4 | wmg |
Income Loss From Continuing Operations Before Income Taxes Depreciation And Amortization
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDepreciationAndAmortization
|
157000000 | |
| CY2015Q4 | wmg |
Income Loss From Continuing Operations Before Income Taxes Depreciation And Amortization
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDepreciationAndAmortization
|
137000000 | |
| CY2016Q4 | us-gaap |
Interest Paid
InterestPaid
|
47000000 | |
| CY2015Q4 | us-gaap |
Interest Paid
InterestPaid
|
54000000 | |
| CY2016Q4 | us-gaap |
Income Taxes Paid Net
IncomeTaxesPaidNet
|
9000000 | |
| CY2015Q4 | us-gaap |
Income Taxes Paid Net
IncomeTaxesPaidNet
|
6000000 | |
| CY2016Q4 | us-gaap |
Dividend Payable Date To Be Paid Day Month And Year
DividendPayableDateToBePaidDayMonthAndYear
|
2017-01-03 | |
| CY2016Q4 | us-gaap |
Dividends Cash
DividendsCash
|
54000000 | |
| CY2016Q4 | us-gaap |
Dividends Payable Date Of Record Day Month And Year
DividendsPayableDateOfRecordDayMonthAndYear
|
2016-12-30 | |
| CY2016Q4 | us-gaap |
Fair Value Net Asset Liability
FairValueNetAssetLiability
|
-2000000 | |
| CY2016Q3 | us-gaap |
Contractual Obligation
ContractualObligation
|
4000000 | |
| CY2016Q4 | wmg |
Selling General And Administrative Expense And Adjustments
SellingGeneralAndAdministrativeExpenseAndAdjustments
|
276000000 | |
| CY2016Q4 | wmg |
Other Non Operating Income Expense Excluding Equity Method Investments
OtherNonOperatingIncomeExpenseExcludingEquityMethodInvestments
|
19000000 | |
| CY2015Q4 | wmg |
Selling General And Administrative Expense And Adjustments
SellingGeneralAndAdministrativeExpenseAndAdjustments
|
276000000 | |
| CY2015Q4 | wmg |
Other Non Operating Income Expense Excluding Equity Method Investments
OtherNonOperatingIncomeExpenseExcludingEquityMethodInvestments
|
8000000 | |
| CY2015Q4 | us-gaap |
Proceeds From Payments To Minority Shareholders
ProceedsFromPaymentsToMinorityShareholders
|
-3000000 |
