10-Q Filing

WARNER MUSIC GROUP CORP. CIK: 1319161 Q1 2017

Filing Information

Form Type	10-Q
Accession Number	`0001564590-17-001057`
Period End Date	20161231
Filing Date	20170207
Fiscal Year	2017
Fiscal Period	Q1
XBRL Instance	wmg-20161231.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 76 Income Statement 29 Cash Flow Statement 58 Stockholders Equity 14 Comprehensive Income 14

Balance Sheet 76 line items

Line Item	Tag	Value	Unit	Period
Accounts receivable, allowances	`AllowanceForDoubtfulAccountsReceivableCurrent`	$68.00M	USD	Point-in-time
Accounts receivable, allowances	`AllowanceForDoubtfulAccountsReceivableCurrent`	$52.00M	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Cash and equivalents	`CashAndCashEquivalentsAtCarryingValue`	$278.00M	USD	Point-in-time
Cash and equivalents	`CashAndCashEquivalentsAtCarryingValue`	$246.00M	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	10,000.00	shares	Point-in-time
Cash and equivalents	`CashAndCashEquivalentsAtCarryingValue`	$455.00M	USD	Point-in-time
Cash and equivalents	`CashAndCashEquivalentsAtCarryingValue`	$359.00M	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	10,000.00	shares	Point-in-time
Accounts receivable, net of allowances of $68 million and $52 million	`AccountsReceivableNetCurrent`	$329.00M	USD	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	1,055.00	shares	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	1,055.00	shares	Point-in-time
Accounts receivable, net of allowances of $68 million and $52 million	`AccountsReceivableNetCurrent`	$384.00M	USD	Point-in-time
Inventories	`InventoryNet`	$41.00M	USD	Point-in-time
Inventories	`InventoryNet`	$36.00M	USD	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time
Royalty advances expected to be recouped within one year	`AdvanceRoyaltiesCurrent`	$127.00M	USD	Point-in-time
Royalty advances expected to be recouped within one year	`AdvanceRoyaltiesCurrent`	$128.00M	USD	Point-in-time
Prepaid and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$51.00M	USD	Point-in-time
Prepaid and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$59.00M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$908.00M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$1.06B	USD	Point-in-time
Royalty advances expected to be recouped after one year	`AdvanceRoyaltiesNoncurrent`	$188.00M	USD	Point-in-time
Royalty advances expected to be recouped after one year	`AdvanceRoyaltiesNoncurrent`	$196.00M	USD	Point-in-time
Property, plant and equipment, net	`PropertyPlantAndEquipmentNet`	$203.00M	USD	Point-in-time
Property, plant and equipment, net	`PropertyPlantAndEquipmentNet`	$195.00M	USD	Point-in-time
Goodwill	`Goodwill`	$1.63B	USD	Point-in-time
Goodwill	`Goodwill`	$1.61B	USD	Point-in-time
Intangible assets subject to amortization, net	`FiniteLivedIntangibleAssetsNet`	$2.20B	USD	Point-in-time
Intangible assets subject to amortization, net	`FiniteLivedIntangibleAssetsNet`	$2.09B	USD	Point-in-time
Intangible assets not subject to amortization	`IndefiniteLivedIntangibleAssetsExcludingGoodwill`	$116.00M	USD	Point-in-time
Intangible assets not subject to amortization	`IndefiniteLivedIntangibleAssetsExcludingGoodwill`	$115.00M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$83.00M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$84.00M	USD	Point-in-time
Total assets	`Assets`	$5.33B	USD	Point-in-time
Total assets	`Assets`	$5.34B	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$204.00M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$152.00M	USD	Point-in-time
Accrued royalties	`AccruedRoyaltiesCurrent`	$1.10B	USD	Point-in-time
Accrued royalties	`AccruedRoyaltiesCurrent`	$1.18B	USD	Point-in-time
Accrued liabilities	`AccruedLiabilitiesCurrent`	$319.00M	USD	Point-in-time
Accrued liabilities	`AccruedLiabilitiesCurrent`	$297.00M	USD	Point-in-time
Accrued interest	`InterestPayableCurrent`	$28.00M	USD	Point-in-time
Accrued interest	`InterestPayableCurrent`	$38.00M	USD	Point-in-time
Deferred revenue	`DeferredRevenueCurrent`	$175.00M	USD	Point-in-time
Deferred revenue	`DeferredRevenueCurrent`	$178.00M	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	$21.00M	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	$86.00M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$1.94B	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$1.84B	USD	Point-in-time
Long-term debt	`LongTermDebtNoncurrent`	$2.75B	USD	Point-in-time
Long-term debt	`LongTermDebtNoncurrent`	$2.78B	USD	Point-in-time
Deferred tax liabilities, net	`DeferredTaxLiabilitiesNoncurrent`	$268.00M	USD	Point-in-time
Deferred tax liabilities, net	`DeferredTaxLiabilitiesNoncurrent`	$269.00M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$236.00M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$233.00M	USD	Point-in-time
Total liabilities	`Liabilities`	$5.12B	USD	Point-in-time
Total liabilities	`Liabilities`	$5.20B	USD	Point-in-time
Common stock ($0.001 par value; 10,000 shares authorized; 1,055 shares issued and outstanding)	`CommonStockValue`	-	USD	Point-in-time
Common stock ($0.001 par value; 10,000 shares authorized; 1,055 shares issued and outstanding)	`CommonStockValue`	-	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapitalCommonStock`	$1.13B	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapitalCommonStock`	$1.13B	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-747.00M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-715.00M	USD	Point-in-time
Accumulated other comprehensive loss, net	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-257.00M	USD	Point-in-time
Accumulated other comprehensive loss, net	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-218.00M	USD	Point-in-time
Total Warner Music Group Corp. equity	`StockholdersEquity`	$195.00M	USD	Point-in-time
Total Warner Music Group Corp. equity	`StockholdersEquity`	$124.00M	USD	Point-in-time
Noncontrolling interest	`MinorityInterest`	$16.00M	USD	Point-in-time
Noncontrolling interest	`MinorityInterest`	$15.00M	USD	Point-in-time
Total equity	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$210.00M	USD	Point-in-time
Total equity	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$140.00M	USD	Point-in-time
Total liabilities and equity	`LiabilitiesAndStockholdersEquity`	$5.34B	USD	Point-in-time
Total liabilities and equity	`LiabilitiesAndStockholdersEquity`	$5.33B	USD	Point-in-time

Income Statement 29 line items

Line Item	Tag	Value	Unit	Period
Depreciation expense	`Depreciation`	$12.00M	USD	1 Quarter
Revenue	`Revenues`	$917.00M	USD	1 Quarter
Depreciation expense	`Depreciation`	$13.00M	USD	1 Quarter
Revenue	`Revenues`	$849.00M	USD	1 Quarter
Cost of revenue	`CostOfRevenue`	$449.00M	USD	1 Quarter
Cost of revenue	`CostOfRevenue`	$496.00M	USD	1 Quarter
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$276.00M	USD	1 Quarter
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$276.00M	USD	1 Quarter
Amortization expense	`AmortizationOfIntangibleAssets`	$62.00M	USD	1 Quarter
Amortization expense	`AmortizationOfIntangibleAssets`	$51.00M	USD	1 Quarter
Total costs and expenses	`CostsAndExpenses`	$787.00M	USD	1 Quarter
Total costs and expenses	`CostsAndExpenses`	$823.00M	USD	1 Quarter
Operating (loss) income	`OperatingIncomeLoss`	$94.00M	USD	1 Quarter
Operating (loss) income	`OperatingIncomeLoss`	$62.00M	USD	1 Quarter
Loss on extinguishment of debt	`GainsLossesOnExtinguishmentOfDebt`	$-32.00M	USD	1 Quarter
Interest expense, net	`InterestIncomeExpenseNonoperatingNet`	$-45.00M	USD	1 Quarter
Interest expense, net	`InterestIncomeExpenseNonoperatingNet`	$-40.00M	USD	1 Quarter
Other income	`OtherNonoperatingIncomeExpense`	$19.00M	USD	1 Quarter
Other income	`OtherNonoperatingIncomeExpense`	$8.00M	USD	1 Quarter
Income (loss) before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$41.00M	USD	1 Quarter
Income (loss) before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$25.00M	USD	1 Quarter
Income tax (expense) benefit	`IncomeTaxExpenseBenefit`	$-3.00M	USD	1 Quarter
Income tax (expense) benefit	`IncomeTaxExpenseBenefit`	$17.00M	USD	1 Quarter
Net income (loss)	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$28.00M	USD	1 Quarter
Net income (loss)	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$24.00M	USD	1 Quarter
Less: Income attributable to noncontrolling interest	`NetIncomeLossAttributableToNoncontrollingInterest`	$2.00M	USD	1 Quarter
Less: Income attributable to noncontrolling interest	`NetIncomeLossAttributableToNoncontrollingInterest`	$1.00M	USD	1 Quarter
Net income (loss) attributable to Warner Music Group Corp.	`NetIncomeLoss`	$22.00M	USD	1 Quarter
Net income (loss) attributable to Warner Music Group Corp.	`NetIncomeLoss`	$27.00M	USD	1 Quarter

Cash Flow Statement 58 line items

Line Item	Tag	Value	Unit	Period
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$28.00M	USD	1 Quarter
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$24.00M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$75.00M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$63.00M	USD	1 Quarter
Unrealized gains and remeasurement of foreign denominated loans	`ForeignCurrencyTransactionGainLossBeforeTax`	$17.00M	USD	1 Quarter
Unrealized gains and remeasurement of foreign denominated loans	`ForeignCurrencyTransactionGainLossBeforeTax`	$8.00M	USD	1 Quarter
Deferred income taxes	`DeferredIncomeTaxExpenseBenefit`	$-2.00M	USD	1 Quarter
Deferred income taxes	`DeferredIncomeTaxExpenseBenefit`	$-9.00M	USD	1 Quarter
Loss on extinguishment of debt	`GainsLossesOnExtinguishmentOfDebt`	$-32.00M	USD	1 Quarter
Non-cash interest expense	`AmortizationOfFinancingCostsAndDiscounts`	$3.00M	USD	1 Quarter
Non-cash interest expense	`AmortizationOfFinancingCostsAndDiscounts`	$2.00M	USD	1 Quarter
Non-cash share-based compensation expense	`ShareBasedCompensationExpenseReversal`	$10.00M	USD	1 Quarter
Non-cash share-based compensation expense	`ShareBasedCompensationExpenseReversal`	$1.00M	USD	1 Quarter
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$65.00M	USD	1 Quarter
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$63.00M	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$-3.00M	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$1.00M	USD	1 Quarter
Royalty advances	`IncreaseDecreaseInPrepaidRoyalties`	$-1.00M	USD	1 Quarter
Royalty advances	`IncreaseDecreaseInPrepaidRoyalties`	$16.00M	USD	1 Quarter
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-11.00M	USD	1 Quarter
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-12.00M	USD	1 Quarter
Royalty payables	`IncreaseDecreaseInRoyaltiesPayable`	$58.00M	USD	1 Quarter
Royalty payables	`IncreaseDecreaseInRoyaltiesPayable`	$112.00M	USD	1 Quarter
Accrued interest	`IncreaseDecreaseInInterestPayableNet`	$-10.00M	USD	1 Quarter
Accrued interest	`IncreaseDecreaseInInterestPayableNet`	$-11.00M	USD	1 Quarter
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$-1.00M	USD	1 Quarter
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$1.00M	USD	1 Quarter
Other balance sheet changes	`IncreaseDecreaseInOtherOperatingCapitalNet`	$-15.00M	USD	1 Quarter
Other balance sheet changes	`IncreaseDecreaseInOtherOperatingCapitalNet`	$-15.00M	USD	1 Quarter
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivitiesContinuingOperations`	$156.00M	USD	1 Quarter
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivitiesContinuingOperations`	$61.00M	USD	1 Quarter
Acquisition of music publishing rights, net	`PaymentsToAcquireIntangibleAssets`	$1.00M	USD	1 Quarter
Acquisition of music publishing rights, net	`PaymentsToAcquireIntangibleAssets`	$7.00M	USD	1 Quarter
Capital expenditures	`PaymentsToAcquireProductiveAssets`	$8.00M	USD	1 Quarter
Capital expenditures	`PaymentsToAcquireProductiveAssets`	$10.00M	USD	1 Quarter
Investments and acquisitions of businesses, net	`PaymentsToAcquireBusinessesNetOfCashAcquired`	$3.00M	USD	1 Quarter
Investments and acquisitions of businesses, net	`PaymentsToAcquireBusinessesNetOfCashAcquired`	$1.00M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivitiesContinuingOperations`	$-18.00M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivitiesContinuingOperations`	$-12.00M	USD	1 Quarter
Repayment of Acquisition Corp. Senior Term Loan Facility	`RepaymentsOfLongTermDebt`	$3.00M	USD	1 Quarter
Proceeds from issuance of Acquisition Corp. Senior Term Loan Facility	`ProceedsFromIssuanceOfSeniorLongTermDebt`	$22.00M	USD	1 Quarter
Financing costs paid	`PaymentsOfFinancingCosts`	$27.00M	USD	1 Quarter
Deferred financing costs paid	`PaymentsOfDebtIssuanceCosts`	$12.00M	USD	1 Quarter
Distribution to noncontrolling interest holder	`PaymentsToMinorityShareholders`	$3.00M	USD	1 Quarter
Net cash used in financing activities	`NetCashProvidedByUsedInFinancingActivitiesContinuingOperations`	$-38.00M	USD	1 Quarter
Net cash used in financing activities	`NetCashProvidedByUsedInFinancingActivitiesContinuingOperations`	$-6.00M	USD	1 Quarter
Effect of exchange rate changes on cash and equivalents	`EffectOfExchangeRateOnCashAndCashEquivalents`	$-10.00M	USD	1 Quarter
Effect of exchange rate changes on cash and equivalents	`EffectOfExchangeRateOnCashAndCashEquivalents`	$-5.00M	USD	1 Quarter
Net increase (decrease) in cash and equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$32.00M	USD	1 Quarter
Net increase (decrease) in cash and equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$96.00M	USD	1 Quarter
Cash and equivalents at beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$278.00M	USD	Point-in-time
Cash and equivalents at beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$246.00M	USD	Point-in-time
Cash and equivalents at beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$455.00M	USD	Point-in-time
Cash and equivalents at beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$359.00M	USD	Point-in-time
Cash and equivalents at end of period	`CashAndCashEquivalentsAtCarryingValue`	$278.00M	USD	Point-in-time
Cash and equivalents at end of period	`CashAndCashEquivalentsAtCarryingValue`	$246.00M	USD	Point-in-time
Cash and equivalents at end of period	`CashAndCashEquivalentsAtCarryingValue`	$455.00M	USD	Point-in-time
Cash and equivalents at end of period	`CashAndCashEquivalentsAtCarryingValue`	$359.00M	USD	Point-in-time

Stockholders Equity 14 line items

Line Item	Tag	Value	Unit	Period
Beginning balance	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$210.00M	USD	Point-in-time
Beginning balance	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$140.00M	USD	Point-in-time
Beginning balance, shares	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time
Beginning balance, shares	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$28.00M	USD	1 Quarter
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$24.00M	USD	1 Quarter
Dividend	`DividendsCommonStock`	$54.00M	USD	1 Quarter
Other comprehensive loss, net of tax	`OtherComprehensiveIncomeLossNetOfTax`	$-39.00M	USD	1 Quarter
Other comprehensive loss, net of tax	`OtherComprehensiveIncomeLossNetOfTax`	$-25.00M	USD	1 Quarter
Distribution to noncontrolling interest holders	`MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders`	$1.00M	USD	1 Quarter
Ending balance	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$210.00M	USD	Point-in-time
Ending balance	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$140.00M	USD	Point-in-time
Ending balance, shares	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time
Ending balance, shares	`CommonStockSharesOutstanding`	1,055.00	shares	Point-in-time

Comprehensive Income 14 line items

Line Item	Tag	Value	Unit	Period
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$28.00M	USD	1 Quarter
Net income	`IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest`	$24.00M	USD	1 Quarter
Foreign currency adjustment	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-37.00M	USD	1 Quarter
Foreign currency adjustment	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-24.00M	USD	1 Quarter
Deferred (losses) on derivative financial instruments	`OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax`	$-2.00M	USD	1 Quarter
Deferred (losses) on derivative financial instruments	`OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax`	$-1.00M	USD	1 Quarter
Other comprehensive loss, net of tax	`OtherComprehensiveIncomeLossNetOfTax`	$-39.00M	USD	1 Quarter
Other comprehensive loss, net of tax	`OtherComprehensiveIncomeLossNetOfTax`	$-25.00M	USD	1 Quarter
Total comprehensive (loss) income	`ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest`	$3.00M	USD	1 Quarter
Total comprehensive (loss) income	`ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest`	$-15.00M	USD	1 Quarter
Less: Income attributable to noncontrolling interest	`ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest`	$1.00M	USD	1 Quarter
Less: Income attributable to noncontrolling interest	`ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest`	$2.00M	USD	1 Quarter
Comprehensive (loss) income attributable to Warner Music Group Corp.	`ComprehensiveIncomeNetOfTax`	$-17.00M	USD	1 Quarter
Comprehensive (loss) income attributable to Warner Music Group Corp.	`ComprehensiveIncomeNetOfTax`	$2.00M	USD	1 Quarter

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.