Acquisition of EMP (Tables)

9 Months Ended

Jun. 30, 2019

Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed

The table below presents (i) the preliminary estimate of the Acquisition consideration as it relates to the acquisition of EMP by WMG Germany and (ii) the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of October 10, 2018 (in millions):



Purchase Price	€	155
Working Capital	10
Final Purchase Price	€	165
Foreign Currency Rate at October 10, 2018	1.15
Final Purchase Price in U.S. dollars	$	190
Fair value of assets acquired and liabilities assumed
Cash and equivalents	$	7
Accounts receivable, net	3
Inventories	37
Other current assets	5
Property plant and equipment	32
Intangible assets	81
Accounts payable	(18		)
Other current liabilities	(11		)
Deferred revenue	(7		)
Deferred tax liabilities	(25		)
Other noncurrent liabilities	(3		)
Fair value of assets acquired and liabilities assumed	101
Goodwill recorded	89
Total purchase price allocated	$	190

Schedule of Pro Forma Financial Information

The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Acquisition had taken place at the beginning of fiscal 2018.



	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018		Nine Months Ended June 30, 2019		Nine Months Ended June 30, 2018
	(in millions)				(in millions)
Revenue	$	1,058	$	1,011	$	3,356	$	3,153
Operating income	58		29		327		201
Net income attributable to Warner Music Group	$	13	$	321	$	166	$	320