Earnings per Share

12 Months Ended

Sep. 30, 2024

The Company utilizes the two-class method to report earnings per share. Basic earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, by the weighted average number of outstanding common shares for each class of stock. Diluted earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, by the weighted average number of outstanding common shares, plus dilutive potential common shares, which is calculated using the treasury-stock method. Under the treasury-stock method, potential common shares are excluded from the computation of EPS in periods in which they have an anti-dilutive effect. The potentially dilutive common shares did not have a dilutive effect on the Company’s EPS calculation for the fiscal years ended September 30, 2024, September 30, 2023 and September 30, 2022.

The Company allocates dividends declared to Class A Common Stock and Class B Common Stock based on timing and amounts actually declared for each class of stock and the undistributed earnings are allocated to Class A Common Stock and Class B Common Stock pro rata on a basic weighted average shares outstanding basis since the two classes of stock participate equally on a per share basis upon liquidation.

The following table sets forth the calculation of basic and diluted net income per common share under the two-class method (in millions, except share amounts, which are reflected in thousands, and per share data):


	Fiscal Year Ended September 30,
	2024				2023				2022
	Class A		Class B		Class A		Class B		Class A		Class B
Basic and Diluted EPS:
Numerator
Net income attributable to Warner Music Group Corp.	$	122	$	313	$	119	$	311	$	149	$	402
Less: Net income attributable to participating securities (a)	(6)		—		(6)		—		(7)		—
Net income attributable to common stockholders	$	116	$	313	$	113	$	311	$	142	$	402
Denominator
Weighted average shares outstanding	140,882		376,641		138,070		377,650		133,662		381,046
Basic and Diluted EPS	$	0.83	$	0.83	$	0.82	$	0.82	$	1.06	$	1.06

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(a)Participating securities include unvested restricted stock units, which include the right to receive non-forfeitable dividend equivalents.