XML 71 R58.htm IDEA: XBRL DOCUMENT v3.8.0.1
Guarantor and Non-Guarantor Subsidiaries Financial Information - Consolidating Statement of Cash Flows Unaudited (Detail) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2016
Cash flows from operating activities      
Net income $ 5 $ 24 $ 24
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 65   63
Unrealized losses/gains and remeasurement of foreign denominated loans 5 (17) (17)
Deferred income taxes 42 (2) (2)
Loss on extinguishment of debt 1 32 32
Net gain on investments (7)    
Non-cash interest expense 1 3 3
Non-cash stock-based compensation expenses     10
Equity-based compensation expense 18 10  
Changes in operating assets and liabilities:      
Accounts receivable (93) (65) (65)
Inventories 2 3 3
Royalty advances (5) 1 1
Accounts payable and accrued liabilities (23) (12) (12)
Royalty payables 141 112 112
Accrued interest (16) (10) (10)
Deferred revenue (3) (1) (1)
Other balance sheet changes 3 15 15
Net cash provided by operating activities 136 156 156
Cash flows from investing activities      
Acquisition of music publishing rights, net (1) (1) (1)
Capital expenditures (16) (8) (8)
Investments and acquisitions of businesses, net (1) (3) (3)
Proceeds from the sale of investments 12    
Net cash (used in) provided by investing activities (6) (12) (12)
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility   22 22
Financing costs paid     (27)
Call premiums paid on early redemption of debt   (27)  
Deferred financing costs paid (1) (12) (12)
Distribution to noncontrolling interest holder (2)    
Net cash (used in) provided by financing activities (3) (38) (38)
Effect of exchange rate changes on cash and equivalents 2 (10) (10)
Net increase in cash and equivalents 129 96 96
Cash and equivalents at beginning of period 647 359 359
Cash and equivalents at end of period 776 455 455
4.125% Senior Secured Notes      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     380
4.875% Senior Secured Notes      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     250
6.00% Senior Secured Notes      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (450)
6.25% Senior Secured Notes      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (173)
5.625% Senior Secured Notes      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (28)
Reportable Legal Entities | Guarantor Subsidiaries      
Cash flows from operating activities      
Net income 34 95 95
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 32   35
Unrealized losses/gains and remeasurement of foreign denominated loans 1   (9)
Net gain on investments (7)    
Non-cash stock-based compensation expenses     10
Equity-based compensation expense 18    
Equity (gains) losses, including distributions (43)   (40)
Changes in operating assets and liabilities:      
Accounts receivable (33)   (19)
Inventories     2
Royalty advances 5   7
Accounts payable and accrued liabilities 65   6
Royalty payables 59   40
Deferred revenue 17   (33)
Other balance sheet changes 37   12
Net cash provided by operating activities 185   106
Cash flows from investing activities      
Capital expenditures (13)   (6)
Investments and acquisitions of businesses, net (1)   (3)
Proceeds from the sale of investments 12    
Net cash (used in) provided by investing activities (2)   (9)
Cash flows from financing activities      
Change in due to (from) issuer (95)   (95)
Net cash (used in) provided by financing activities (95)   (95)
Net increase in cash and equivalents 88   2
Cash and equivalents at beginning of period 347   180
Cash and equivalents at end of period 435 182 182
Reportable Legal Entities | Non-Guarantor Subsidiaries      
Cash flows from operating activities      
Net income 41 3 3
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 33   28
Unrealized losses/gains and remeasurement of foreign denominated loans (2)   13
Deferred income taxes 42   (2)
Changes in operating assets and liabilities:      
Accounts receivable (60)   (46)
Inventories 2   1
Royalty advances (10)   (6)
Accounts payable and accrued liabilities (29)   9
Royalty payables 82   72
Deferred revenue (20)   32
Other balance sheet changes (34)   3
Net cash provided by operating activities 45   107
Cash flows from investing activities      
Acquisition of music publishing rights, net (1)   (1)
Capital expenditures (3)   (2)
Net cash (used in) provided by investing activities (4)   (3)
Cash flows from financing activities      
Distribution to noncontrolling interest holder (2)    
Net cash (used in) provided by financing activities (2)    
Effect of exchange rate changes on cash and equivalents 2   (10)
Net increase in cash and equivalents 41   94
Cash and equivalents at beginning of period 300   179
Cash and equivalents at end of period 341 273 273
Reportable Legal Entities | Warner Music Group Corp.      
Cash flows from operating activities      
Net income 4 22 22
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity (gains) losses, including distributions (4)   (22)
Reportable Legal Entities | WMG Acquisition Corp.      
Cash flows from operating activities      
Net income 4 22 22
Adjustments to reconcile net income to net cash provided by operating activities:      
Unrealized losses/gains and remeasurement of foreign denominated loans 6   (21)
Loss on extinguishment of debt 1 32 32
Non-cash interest expense 1   3
Equity (gains) losses, including distributions (90)   (83)
Changes in operating assets and liabilities:      
Accrued interest (16)   (10)
Net cash provided by operating activities (94)   (57)
Cash flows from investing activities      
Advances (from) to issuer 95   95
Net cash (used in) provided by investing activities 95   95
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility     22
Financing costs paid     (27)
Deferred financing costs paid (1)   (12)
Net cash (used in) provided by financing activities (1)   (38)
Reportable Legal Entities | WMG Acquisition Corp. Consolidated      
Cash flows from operating activities      
Net income 5 24 24
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 65   63
Unrealized losses/gains and remeasurement of foreign denominated loans 5   (17)
Deferred income taxes 42   (2)
Loss on extinguishment of debt 1 32 32
Net gain on investments (7)    
Non-cash interest expense 1   3
Non-cash stock-based compensation expenses     10
Equity-based compensation expense 18    
Changes in operating assets and liabilities:      
Accounts receivable (93)   (65)
Inventories 2   3
Royalty advances (5)   1
Accounts payable and accrued liabilities (23)   (12)
Royalty payables 141   112
Accrued interest (16)   (10)
Deferred revenue (3)   (1)
Other balance sheet changes 3   15
Net cash provided by operating activities 136   156
Cash flows from investing activities      
Acquisition of music publishing rights, net (1)   (1)
Capital expenditures (16)   (8)
Investments and acquisitions of businesses, net (1)   (3)
Proceeds from the sale of investments 12    
Net cash (used in) provided by investing activities (6)   (12)
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility     22
Financing costs paid     (27)
Deferred financing costs paid (1)   (12)
Distribution to noncontrolling interest holder (2)    
Net cash (used in) provided by financing activities (3)   (38)
Effect of exchange rate changes on cash and equivalents 2   (10)
Net increase in cash and equivalents 129   96
Cash and equivalents at beginning of period 647   359
Cash and equivalents at end of period 776 455 455
Reportable Legal Entities | WMG Holdings Corp.      
Cash flows from operating activities      
Net income 4 22 22
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity (gains) losses, including distributions (4)   (22)
Reportable Legal Entities | 4.125% Senior Secured Notes | WMG Acquisition Corp.      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     380
Reportable Legal Entities | 4.125% Senior Secured Notes | WMG Acquisition Corp. Consolidated      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     380
Reportable Legal Entities | 4.875% Senior Secured Notes | WMG Acquisition Corp.      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     250
Reportable Legal Entities | 4.875% Senior Secured Notes | WMG Acquisition Corp. Consolidated      
Cash flows from financing activities      
Proceeds from issuance of Acquisition Corp     250
Reportable Legal Entities | 6.00% Senior Secured Notes | WMG Acquisition Corp.      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (450)
Reportable Legal Entities | 6.00% Senior Secured Notes | WMG Acquisition Corp. Consolidated      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (450)
Reportable Legal Entities | 6.25% Senior Secured Notes | WMG Acquisition Corp.      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (173)
Reportable Legal Entities | 6.25% Senior Secured Notes | WMG Acquisition Corp. Consolidated      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (173)
Reportable Legal Entities | 5.625% Senior Secured Notes | WMG Acquisition Corp.      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (28)
Reportable Legal Entities | 5.625% Senior Secured Notes | WMG Acquisition Corp. Consolidated      
Cash flows from financing activities      
Repayment of Senior Secured Notes     (28)
Eliminations      
Cash flows from operating activities      
Net income (8) (44) (44)
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity (gains) losses, including distributions 8   44
Eliminations | WMG Acquisition Corp.      
Cash flows from operating activities      
Net income (74) $ (96) (96)
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity (gains) losses, including distributions 133   123
Changes in operating assets and liabilities:      
Accounts payable and accrued liabilities (59)   (27)
Cash flows from investing activities      
Advances (from) to issuer (95)   (95)
Net cash (used in) provided by investing activities (95)   (95)
Cash flows from financing activities      
Change in due to (from) issuer 95   95
Net cash (used in) provided by financing activities $ 95   $ 95