Guarantor and Non-Guarantor Subsidiaries Financial Information (Tables)

6 Months Ended

Mar. 31, 2017

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule of Consolidating Balance Sheet

Consolidating Balance Sheet (Unaudited)

March 31, 2017

	WMG											WMG				Warner					Warner
	Acquisition					Non-						Acquisition		WMG		Music					Music
	Corp.		Guarantor			Guarantor						Corp.		Holdings		Group					Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated		Corp.		Corp.		Eliminations			Consolidated
	(in millions)
Assets:
Current assets:
Cash and equivalents	$	—	$	230		$	246		$	—		$	476	$	—	$	—	$	—		$	476
Accounts receivable, net		—		175			186			—			361		—		—		—			361
Inventories		—		12			24			—			36		—		—		—			36
Royalty advances expected to be recouped within one year		—		80			45			—			125		—		—		—			125
Prepaid and other current assets		—		15			42			—			57		—		—		—			57
Total current assets		—		512			543			—			1,055		—		—		—			1,055
Due (to) from parent companies		721		(286	)		(435	)		—			—		—		—		—			—
Investments in and advances to consolidated subsidiaries		2,261		1,592			—			(3,853	)		—		224		224		(448	)		—
Royalty advances expected to be recouped after one year		—		123			71			—			194		—		—		—			194
Property, plant and equipment, net		—		132			65			—			197		—		—		—			197
Goodwill		—		1,372			242			—			1,614		—		—		—			1,614
Intangible assets subject to amortization, net		—		1,114			942			—			2,056		—		—		—			2,056
Intangible assets not subject to amortization		—		71			45			—			116		—		—		—			116
Other assets		3		50			19			—			72		—		—		—			72
Total assets	$	2,985	$	4,680		$	1,492		$	(3,853	)	$	5,304	$	224	$	224	$	(448	)	$	5,304
Liabilities and Deficit:
Current liabilities:
Accounts payable	$	—	$	117		$	83		$	—		$	200	$	—	$	—	$	—		$	200
Accrued royalties		—		649			502			—			1,151		—		—		—			1,151
Accrued liabilities		—		91			169			—			260		—		—		—			260
Accrued interest		45		—			—			—			45		—		—		—			45
Deferred revenue		—		112			63			—			175		—		—		—			175
Other current liabilities		—		3			21			—			24		—		—		—			24
Total current liabilities		45		972			838			—			1,855		—		—		—			1,855
Long-term debt		2,767		—			—			—			2,767		—		—		—			2,767
Deferred tax liabilities, net		—		115			139			—			254		—		—		—			254
Other noncurrent liabilities		3		132			106			—			241		—		—		—			241
Total liabilities		2,815		1,219			1,083			—			5,117		—		—		—			5,117
Total Warner Music Group Corp. equity		170		3,459			394			(3,853	)		170		224		224		(448	)		170
Noncontrolling interest		—		2			15			—			17		—		—		—			17
Total equity		170		3,461			409			(3,853	)		187		224		224		(448	)		187
Total liabilities and equity	$	2,985	$	4,680		$	1,492		$	(3,853	)	$	5,304	$	224	$	224	$	(448	)	$	5,304

Consolidating Balance Sheet

September 30, 2016

	WMG											WMG				Warner					Warner
	Acquisition					Non-						Acquisition		WMG		Music					Music
	Corp.		Guarantor			Guarantor						Corp.		Holdings		Group					Group Corp.
	(issuer)		Subsidiaries			Subsidiaries			Eliminations			Consolidated		Corp.		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		3		62			19			—			84		—		—		—			84
Total assets	$	3,014	$	4,539		$	1,500		$	(3,718	)	$	5,335	$	195	$	195	$	(390	)	$	5,335
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		2,778		—			—			—			2,778		—		—		—			2,778
Deferred tax liabilities, net		—		109			160			—			269		—		—		—			269
Other noncurrent liabilities		3		126			107			—			236		—		—		—			236
Total liabilities		2,819		1,223			1,083			—			5,125		—		—		—			5,125
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)	$	3,014	$	4,539		$	1,500		$	(3,718	)	$	5,335	$	195	$	195	$	(390	)	$	5,335

Schedule of Consolidating Statement of Operations

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2017

	WMG												WMG					Warner					Warner
	Acquisition						Non-						Acquisition			WMG		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	470		$	439		$	(84	)	$	825		$	—	$	—	$	—		$	825
Costs and expenses:
Cost of revenue		—			(204	)		(268	)		57			(415	)		—		—		—			(415	)
Selling, general and administrative expenses		—			(199	)		(110	)		27			(282	)		—		—		—			(282	)
Amortization of intangible assets		—			(26	)		(24	)		—			(50	)		—		—		—			(50	)
Total costs and expenses		—			(429	)		(402	)		84			(747	)		—		—		—			(747	)
Operating income		—			41			37			—			78			—		—		—			78
Interest (expense) income, net		(21	)		1			(16	)		—			(36	)		—		—		—			(36	)
Equity gains (losses) from equity method investments		49			11			—			(60	)		—			19		19		(38	)		—
Other expense, net		(6	)		—			(13	)		—			(19	)		—		—		—			(19	)
Income before income taxes		22			53			8			(60	)		23			19		19		(38	)		23
Income tax (expense) benefit		(3	)		(4	)		(7	)		11			(3	)		—		—		—			(3	)
Net income		19			49			1			(49	)		20			19		19		(38	)		20
Less: income attributable to noncontrolling interest		—			—			(1	)		—			(1	)		—		—		—			(1	)
Net income attributable to Warner Music Group Corp.	$	19		$	49		$	—		$	(49	)	$	19		$	19	$	19	$	(38	)	$	19

Consolidating Statement of Operations (Unaudited)

For The Three Months Ended March 31, 2016

	WMG												WMG						Warner					Warner
	Acquisition						Non-						Acquisition			WMG			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	452		$	382		$	(89	)	$	745		$	—		$	—	$	—		$	745
Costs and expenses:
Cost of revenue		—			(221	)		(196	)		43			(374	)		—			—		—			(374	)
Selling, general and administrative expenses		—			(202	)		(101	)		47			(256	)		—			—		—			(256	)
Amortization of intangible assets		—			(30	)		(33	)		—			(63	)		—			—		—			(63	)
Total costs and expenses		—			(453	)		(330	)		90			(693	)		—			—		—			(693	)
Operating income (loss)		—			(1	)		52			1			52			—			—		—			52
Gain on sales of real estate		—			—			19			—			19			—			—		—			19
Interest (expense) income, net		(21	)		1			(18	)		—			(38	)		(5	)		—		—			(43	)
Equity gains (losses) from equity method investments		58			41			—			(99	)		—			21			11		(32	)		—
Other (expense) income, net		(1	)		(19	)		24			—			4			(5	)		—		—			(1	)
Income (loss) before income taxes		36			22			77			(98	)		37			11			11		(32	)		27
Income tax (expense) benefit		(15	)		(7	)		(12	)		19			(15	)		—			—		—			(15	)
Net income		21			15			65			(79	)		22			11			11		(32	)		12
Less: income attributable to noncontrolling interest		—			—			(1	)		—			(1	)		—			—		—			(1	)
Net income (loss) attributable to Warner Music Group Corp.	$	21		$	15		$	64		$	(79	)	$	21		$	11		$	11	$	(32	)	$	11

Consolidating Statement of Operations (Unaudited)

For The Six Months Ended March 31, 2017

	WMG												WMG					Warner					Warner
	Acquisition						Non-						Acquisition			WMG		Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings		Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.		Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	960		$	960		$	(178	)	$	1,742		$	—	$	—	$	—		$	1,742
Costs and expenses:
Cost of revenue		—			(424	)		(609	)		122			(911	)		—		—		—			(911	)
Selling, general and administrative expenses		(1	)		(375	)		(238	)		56			(558	)		—		—		—			(558	)
Amortization of intangible assets		—			(51	)		(50	)		—			(101	)		—		—		—			(101	)
Total costs and expenses		(1	)		(850	)		(897	)		178			(1,570	)		—		—		—			(1,570	)
Operating (loss) income		(1	)		110			63			—			172			—		—		—			172
Loss on extinguishment of debt		(32	)		—			—			—			(32	)		—		—		—			(32	)
Interest (expense) income, net		(44	)		2			(34	)		—			(76	)		—		—		—			(76	)
Equity gains (losses) from equity method investments		132			51			—			(183	)		—			41		41		(82	)		—
Other income (expense), net		6			3			(9	)		—			—			—		—		—			—
Income before income taxes		61			166			20			(183	)		64			41		41		(82	)		64
Income tax (expense) benefit		(20	)		(22	)		(16	)		38			(20	)		—		—		—			(20	)
Net income		41			144			4			(145	)		44			41		41		(82	)		44
Less: income attributable to noncontrolling interest		—			—			(3	)		—			(3	)		—		—		—			(3	)
Net income attributable to Warner Music Group Corp.	$	41		$	144		$	1		$	(145	)	$	41		$	41	$	41	$	(82	)	$	41

Consolidating Statement of Operations (Unaudited)

For The Six Months Ended March 31, 2016

	WMG												WMG						Warner					Warner
	Acquisition						Non-						Acquisition			WMG			Music					Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group					Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.		Eliminations			Consolidated
	(in millions)
Revenues	$	—		$	900		$	821		$	(127	)	$	1,594		$	—		$	—	$	—		$	1,594
Costs and expenses:
Cost of revenue		—			(442	)		(456	)		75			(823	)		—			—		—			(823	)
Selling, general and administrative expenses		—			(339	)		(245	)		52			(532	)		—			—		—			(532	)
Amortization of intangible assets		—			(61	)		(64	)		—			(125	)		—			—		—			(125	)
Total costs and expenses		—			(842	)		(765	)		127			(1,480	)		—			—		—			(1,480	)
Operating income		—			58			56			—			114			—			—		—			114
Gain on sale of real estate		—			—			19			—			19			—			—		—			19
Interest (expense) income, net		(41	)		2			(39	)		—			(78	)		(10	)		—		—			(88	)
Equity gains (losses) from equity method investments		105			60			—			(165	)		—			53			38		(91	)		—
Other income (expense), net		1			(20	)		31			—			12			(5	)		—		—			7
Income before income taxes		65			100			67			(165	)		67			38			38		(91	)		52
Income tax (expense) benefit		(12	)		(12	)		(8	)		20			(12	)		—			—		—			(12	)
Net income		53			88			59			(145	)		55			38			38		(91	)		40
Less: income attributable to noncontrolling interest		—			—			(2	)		—			(2	)		—			—		—			(2	)
Net income attributable to Warner Music Group Corp.	$	53		$	88		$	57		$	(145	)	$	53		$	38		$	38	$	(91	)	$	38

Schedule of Consolidating Statement of Comprehensive Income

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2017

	WMG										WMG					Warner					Warner
	Acquisition				Non-						Acquisition			WMG		Music					Music
	Corp.		Guarantor		Guarantor						Corp.			Holdings		Group					Group Corp.
	(issuer)		Subsidiaries		Subsidiaries			Eliminations			Consolidated			Corp.		Corp.		Eliminations			Consolidated
	(in millions)
Net income	$	19	$	49	$	1		$	(49	)	$	20		$	19	$	19	$	(38	)	$	20
Other comprehensive income, net of tax:
Foreign currency adjustment		24		—		(50	)		50			24			24		24		(48	)		24
Deferred gains on derivative financial instruments		1		1		—			(1	)		1			1		1		(2	)		1
Other comprehensive income, net of tax:		25		1		(50	)		49			25			25		25		(50	)		25
Total comprehensive income		44		50		(49	)		—			45			44		44		(88	)		45
Less: income attributable to noncontrolling interest		—		—		(1	)		—			(1	)		—		—		—			(1	)
Comprehensive income (loss) attributable to Warner Music Group Corp.	$	44	$	50	$	(50	)	$	—		$	44		$	44	$	44	$	(88	)	$	44

Consolidating Statement of Comprehensive Income (Unaudited)

For The Three Months Ended March 31, 2016

	WMG												WMG						Warner						Warner
	Acquisition						Non-						Acquisition			WMG			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	21		$	15		$	65		$	(79	)	$	22		$	11		$	11		$	(32	)	$	12
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment		(12	)		—			(12	)		12			(12	)		(12	)		(12	)		24			(12	)
Deferred losses on derivative financial instruments		(1	)		(1	)		—			1			(1	)		(1	)		(1	)		2			(1	)
Other comprehensive (loss) income, net of tax:		(13	)		(1	)		(12	)		13			(13	)		(13	)		(13	)		26			(13	)
Total comprehensive (loss) income		8			14			53			(66	)		9			(2	)		(2	)		(6	)		(1	)
Less: income attributable to noncontrolling interest		—			—			(1	)		—			(1	)		—			—			—			(1	)
Comprehensive (loss) income attributable to Warner Music Group Corp.	$	8		$	14		$	52		$	(66	)	$	8		$	(2	)	$	(2	)	$	(6	)	$	(2	)

Consolidating Statement of Comprehensive Income (Unaudited)

For The Six Months Ended March 31, 2017

	WMG												WMG						Warner						Warner
	Acquisition						Non-						Acquisition			WMG			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	41		$	144		$	4		$	(145	)	$	44		$	41		$	41		$	(82	)	$	44
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment		(13	)		—			(13	)		13			(13	)		(13	)		(13	)		26			(13	)
Deferred losses on derivative financial instruments		(1	)		(1	)		—			1			(1	)		(1	)		(1	)		2			(1	)
Other comprehensive (loss) income, net of tax:		(14	)		(1	)		(13	)		14			(14	)		(14	)		(14	)		28			(14	)
Total comprehensive income (loss)		27			143			(9	)		(131	)		30			27			27			(54	)		30
Less: income attributable to noncontrolling interest		—			—			(3	)		—			(3	)		—			—			—			(3	)
Comprehensive income (loss) attributable to Warner Music Group Corp.	$	27		$	143		$	(12	)	$	(131	)	$	27		$	27		$	27		$	(54	)	$	27

Consolidating Statement of Comprehensive Income (Unaudited)

For The Six Months Ended March 31, 2016

	WMG												WMG						Warner						Warner
	Acquisition						Non-						Acquisition			WMG			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.			Eliminations			Consolidated
	(in millions)
Net income	$	53		$	88		$	59		$	(145	)	$	55		$	38		$	38		$	(91	)	$	40
Other comprehensive (loss) income, net of tax:
Foreign currency adjustment		(36	)		—			(36	)		36			(36	)		(36	)		(36	)		72			(36	)
Deferred losses on derivative financial instruments		(2	)		(2	)		—			2			(2	)		(2	)		(2	)		4			(2	)
Other comprehensive (loss) income, net of tax:		(38	)		(2	)		(36	)		38			(38	)		(38	)		(38	)		76			(38	)
Total comprehensive income (loss)		15			86			23			(107	)		17			—			—			(15	)		2
Less: income attributable to noncontrolling interest		—			—			(2	)		—			(2	)		—			—			—			(2	)
Comprehensive income (loss) attributable to Warner Music Group Corp.	$	15		$	86		$	21		$	(107	)	$	15		$	—		$	—		$	(15	)	$	—

Schedule of Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2017

	WMG												WMG						Warner						Warner
	Acquisition						Non-						Acquisition			WMG			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	41		$	144		$	4		$	(145	)	$	44		$	41		$	41		$	(82	)	$	44
Adjustments to reconcile net income to net cash    provided by operating activities:
Depreciation and amortization		—			70			56			—			126			—			—			—			126
Unrealized (gains)/losses and remeasurement of    foreign denominated loans		(11	)		(3	)		13			—			(1	)		—			—			—			(1	)
Deferred income taxes		2			2			(12	)		(4	)		(12	)		—			—			—			(12	)
Loss on extinguishment of debt		32			—			—			—			32			—			—			—			32
Net loss on divestiture and investments		—			5			1			—			6			—			—			—			6
Non-cash interest expense		5			—			—			—			5			—			—			—			5
Equity-based compensation expense		—			17			—			—			17			—			—			—			17
Equity (gains) losses, including distributions		(132	)		(51	)		—			183			—			(41	)		(41	)		82			—
Changes in operating assets and liabilities:
Accounts receivable		—			(2	)		(39	)		—			(41	)		—			—			—			(41	)
Inventories		—			2			1			—			3			—			—			—			3
Royalty advances		—			(4	)		5			—			1			—			—			—			1
Accounts payable and accrued liabilities		—			(5	)		(4	)		(34	)		(43	)		—			—			—			(43	)
Royalty payables		—			54			21			—			75			—			—			—			75
Accrued interest		7			—			—			—			7			—			—			—			7
Deferred revenue		—			(34	)		30			—			(4	)		—			—			—			(4	)
Other balance sheet changes		7			10			(6	)		—			11			—			—			—			11
Net cash (used in) provided by operating activities		(49	)		205			70			—			226			—			—			—			226
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(3	)		(3	)		—			(6	)		—			—			—			(6	)
Capital expenditures		—			(13	)		(5	)		—			(18	)		—			—			—			(18	)
Investments and acquisitions of businesses, net		—			(5	)		(1	)		—			(6	)		—			—			—			(6	)
Divestitures, net		—			7			11			—			18			—			—			—			18
Advances to issuer		87			—			—			(87	)		—			—			—			—			—
Net cash provided (used in) by investing activities		87			(14	)		2			(87	)		(12	)		—			—			—			(12	)
Cash flows from financing activities
Proceeds from issuance of Acquisition Corp. 4.125% Senior Secured Notes		380			—			—			—			380			—			—			—			380
Proceeds from issuance of Acquisition Corp. 4.875% Senior Secured Notes		250			—			—			—			250			—			—			—			250
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility		22			—			—			—			22			—			—			—			22
Repayment of Acquisition Corp. 6.00% Senior Secured Notes		(450	)		—			—			—			(450	)		—			—			—			(450	)
Repayment of Acquisition Corp. 6.25% Senior Secured Notes		(173	)		—			—			—			(173	)		—			—			—			(173	)
Repayment of Acquisition Corp. 5.625% Senior Secured Notes		(28	)		—			—			—			(28	)		—			—			—			(28	)
Call premiums paid on early redemption of debt		(27	)		—			—			—			(27	)		—			—			—			(27	)
Deferred financing costs paid		(12	)		—			—			—			(12	)		—			—			—			(12	)
Distribution to noncontrolling interest holder		—			—			(1	)		—			(1	)		—			—			—			(1	)
Dividends paid		—			(54	)		—			—			(54	)		—			—			—			(54	)
Change in due to (from) issuer		—			(87	)		—			87			—			—			—			—			—
Net cash (used in) provided by financing activities		(38	)		(141	)		(1	)		87			(93	)		—			—			—			(93	)
Effect of exchange rate changes on cash and equivalents		—			—			(4	)		—			(4	)		—			—			—			(4	)
Net increase in cash and equivalents		—			50			67			—			117			—			—			—			117
Cash and equivalents at beginning of period		—			180			179			—			359			—			—			—			359
Cash and equivalents at end of period	$	—		$	230		$	246		$	—		$	476		$	—		$	—		$	—		$	476

Consolidating Statement of Cash Flows (Unaudited)

For The Six Months Ended March 31, 2016

	WMG												WMG						Warner						Warner
	Acquisition						Non-						Acquisition			WMG			Music						Music
	Corp.			Guarantor			Guarantor						Corp.			Holdings			Group						Group Corp.
	(issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated			Corp.			Corp.			Eliminations			Consolidated
	(in millions)
Cash flows from operating activities
Net income	$	53		$	88		$	59		$	(145	)	$	55		$	38		$	38		$	(91	)	$	40
Adjustments to reconcile net income (loss) to net    cashprovided by operating activities:
Depreciation and amortization		—			80			70			—			150			—			—			—			150
Unrealized (gains)/losses and remeasurement of    foreign denominated loans		(1	)		(1	)		—			—			(2	)		—			—			—			(2	)
Deferred income taxes		—			—			(10	)		—			(10	)		—			—			—			(10	)
Gain on sale of real estate		—			—			(19	)		—			(19	)		—			—			—			(19	)
(Gain) Loss on extinguishment of debt		(1	)		—			—			—			(1	)		5			—			—			4
Loss on divestiture of business		—			—			3			—			3			—			—			—			3
Non-cash interest expense		5			—			—			—			5			—			—			—			5
Equity-based compensation expense		—			4			—			—			4			—			—			—			4
Equity (gains) losses, including distributions		(105	)		(60	)		—			165			—			(53	)		(38	)		91			—
Changes in operating assets and liabilities:
Accounts receivable		—			18			7			—			25			—			—			—			25
Inventories		—			—			(1	)		—			(1	)		—			—			—			(1	)
Royalty advances		—			(18	)		(3	)		—			(21	)		—			—			—			(21	)
Accounts payable and accrued liabilities		—			52			(73	)		(20	)		(41	)		—			—			—			(41	)
Royalty payables		—			36			(1	)		—			35			—			—			—			35
Accrued interest		(1	)		—			—			—			(1	)		(4	)		—			—			(5	)
Deferred revenue		—			3			(1	)		—			2			—			—			—			2
Other balance sheet changes		—			—			3			—			3			—			—			—			3
Net cash (used in) provided by operating activities		(50	)		202			34			—			186			(14	)		—			—			172
Cash flows from investing activities
Acquisition of music publishing rights, net		—			(9	)		(3	)		—			(12	)		—			—			—			(12	)
Capital expenditures		—			(15	)		(8	)		—			(23	)		—			—			—			(23	)
Investments and acquisitions of businesses, net		—			(5	)		(3	)		—			(8	)		—			—			—			(8	)
Divestiture of business, net of cash on hand		—			—			6			—			6			—			—			—			6
Proceeds from the sale of real estate		—			—			42			—			42			—			—			—			42
Advances to issuer		163			—			—			(163	)		—			—			—			—			—
Net cash provided by (used in) investing activities		163			(29	)		34			(163	)		5			—			—			—			5
Cash flows from financing activities
Dividend by Acquisition Corp. to Holdings Corp.		(83	)		—			—			—			(83	)		83			—			—			—
Repayment of Acquisition Corp. Senior Term Loan Facility		(6	)		—			—			—			(6	)		—			—			—			(6	)
Repayment of Holdings 13.75% Senior Notes		—			—			—			—			—			(50	)		—			—			(50	)
Call premiums paid on early redemption of debt		—			—			—			—			—			(3	)		—			—			(3	)
Repayment of Acquisition Corp. 6.75% Senior Notes		(24	)		—			—						(24	)		—			—			—			(24	)
Distribution to noncontrolling interest holder		—			—			(3	)		—			(3	)		—			—			—			(3	)
Repayment of capital lease obligations		—			—			(14	)		—			(14	)		—			—			—			(14	)
Change in due to (from) issuer		—			(163	)		—			163			—			—			—			—			—
Net cash (used in) provided by financing activities		(113	)		(163	)		(17	)		163			(130	)		30			—			—			(100	)
Effect of exchange rate changes on cash and equivalents		—			—			(7	)		—			(7	)		—			—			—			(7	)
Net increase in cash and equivalents		—			10			44			—			54			16			—			—			70
Cash and equivalents at beginning of period		—			73			173			—			246			—			—			—			246
Cash and equivalents at end of period	$	—		$	83		$	217		$	—		$	300		$	16		$	—		$	—		$	316