Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 31, 2016 | Mar. 31, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Viacom Inc. | ||
Entity Central Index Key | 1,339,947 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Common stock, Class A | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 452.6 | ||
Entity Common Stock, Shares Outstanding | 49,431,379 | ||
Common stock, Class B | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 14,200 | ||
Entity Common Stock, Shares Outstanding | 347,381,178 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 12,488 | $ 13,268 | $ 13,783 |
Expenses: | |||
Operating | 6,684 | 6,868 | 6,542 |
Selling, general and administrative | 2,851 | 2,860 | 2,899 |
Depreciation and amortization | 221 | 222 | 217 |
Asset impairment | 0 | 0 | 43 |
Restructuring | 206 | 206 | 0 |
Total expenses | 9,962 | 10,156 | 9,701 |
Operating income | 2,526 | 3,112 | 4,082 |
Interest expense, net | (616) | (657) | (615) |
Equity in net earnings of investee companies | 87 | 102 | 69 |
Loss on extinguishment of debt | 0 | (18) | (11) |
Other items, net | (7) | (36) | (11) |
Earnings from continuing operations before provision for income taxes | 1,990 | 2,503 | 3,514 |
Provision for income taxes | (519) | (501) | (1,050) |
Net earnings from continuing operations | 1,471 | 2,002 | 2,464 |
Discontinued operations, net of tax | 2 | 0 | (1) |
Net earnings (Viacom and noncontrolling interests) | 1,473 | 2,002 | 2,463 |
Net earnings attributable to noncontrolling interests | (35) | (80) | (72) |
Net earnings attributable to Viacom | 1,438 | 1,922 | 2,391 |
Amounts attributable to Viacom: | |||
Net earnings from continuing operations | 1,436 | 1,922 | 2,392 |
Discontinued operations, net of tax | 2 | 0 | (1) |
Net earnings attributable to Viacom | $ 1,438 | $ 1,922 | $ 2,391 |
Basic earnings per share attributable to Viacom: | |||
Continuing operations (in usd per share) | $ 3.62 | $ 4.78 | $ 5.54 |
Discontinued operations (in usd per share) | 0.01 | 0 | (0.01) |
Net earnings (in usd per share) | 3.63 | 4.78 | 5.53 |
Diluted earnings per share attributable to Viacom: | |||
Continuing operations (in usd per share) | 3.61 | 4.73 | 5.43 |
Discontinued operations (in usd per share) | 0 | 0 | 0 |
Net earnings (in usd per share) | $ 3.61 | $ 4.73 | $ 5.43 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 396.5 | 402.2 | 432.1 |
Diluted (shares) | 398 | 406 | 440.2 |
Dividends declared per share of Class A and Class B common stock | $ 1.4 | $ 1.46 | $ 1.26 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (Viacom and noncontrolling interests) | $ 1,473 | $ 2,002 | $ 2,463 |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustments | (101) | (237) | (85) |
Defined benefit pension plans | (65) | (7) | (104) |
Cash flow hedges | 1 | 1 | (2) |
Other comprehensive loss (Viacom and noncontrolling interests) | (165) | (243) | (191) |
Comprehensive income | 1,308 | 1,759 | 2,272 |
Less: Comprehensive income attributable to noncontrolling interests | 28 | 78 | 73 |
Comprehensive income attributable to Viacom | $ 1,280 | $ 1,681 | $ 2,199 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 379 | $ 506 |
Receivables, net | 2,712 | 2,807 |
Inventory, net | 844 | 786 |
Prepaid and other assets | 587 | 479 |
Total current assets | 4,522 | 4,578 |
Property and equipment, net | 932 | 947 |
Inventory, net | 4,032 | 3,616 |
Goodwill | 11,400 | 11,456 |
Intangibles, net | 315 | 340 |
Other assets | 1,307 | 1,206 |
Total assets | 22,508 | 22,143 |
Current liabilities: | ||
Accounts payable | 453 | 506 |
Accrued expenses | 773 | 748 |
Participants' share and residuals | 801 | 860 |
Program obligations | 692 | 703 |
Deferred revenue | 419 | 481 |
Current portion of debt | 17 | 18 |
Other liabilities | 517 | 537 |
Total current liabilities | 3,672 | 3,853 |
Noncurrent portion of debt | 11,896 | 12,267 |
Participants' share and residuals | 358 | 351 |
Program obligations | 311 | 356 |
Deferred tax liabilities, net | 381 | 150 |
Other liabilities | 1,349 | 1,348 |
Redeemable noncontrolling interest | 211 | 219 |
Commitments and contingencies | ||
Viacom stockholders' equity: | ||
Additional paid-in capital | 10,139 | 10,017 |
Treasury stock, 399.4 and 398.0 common shares held in treasury, respectively | (20,798) | (20,725) |
Retained earnings | 15,628 | 14,780 |
Accumulated other comprehensive loss | (692) | (534) |
Total Viacom stockholders' equity | 4,277 | 3,538 |
Noncontrolling interests | 53 | 61 |
Total equity | 4,330 | 3,599 |
Total liabilities and equity | 22,508 | 22,143 |
Common stock, Class A | ||
Viacom stockholders' equity: | ||
Common stock value | 0 | 0 |
Common stock, Class B | ||
Viacom stockholders' equity: | ||
Common stock value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Treasury Shares | 399,400,000 | 398,000,000 |
Common stock, Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock Authorized | 375,000,000 | 375,000,000 |
Common stock, outstanding | 49,400,000 | 50,100,000 |
Common stock, Class B | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock Authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, outstanding | 347,600,000 | 348,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES [Abstract] | |||
Net earnings (Viacom and noncontrolling interests) | $ 1,473 | $ 2,002 | $ 2,463 |
Discontinued operations, net of tax | (2) | 0 | 1 |
Net earnings from continuing operations | 1,471 | 2,002 | 2,464 |
Reconciling items: | |||
Depreciation and amortization | 221 | 222 | 217 |
Asset impairment | 0 | 0 | 43 |
Feature film and program amortization | 4,568 | 4,925 | 4,206 |
Equity-based compensation | 163 | 101 | 122 |
Equity in net earnings and distributions from investee companies | (83) | (95) | (39) |
Deferred income taxes | 254 | (82) | (290) |
Operating assets and liabilities, net of acquisitions: | |||
Receivables | 149 | 124 | (106) |
Inventory, program rights and participations | (5,102) | (4,826) | (4,245) |
Accounts payable and other current liabilities | (229) | (9) | 252 |
Other, net | (41) | (49) | (27) |
Cash provided by operations | 1,371 | 2,313 | 2,597 |
INVESTING ACTIVITIES | |||
Acquisitions and investments, net | (58) | (115) | (732) |
Capital expenditures | (172) | (142) | (123) |
Grantor trust contributions | (69) | 0 | 0 |
Net cash flow used in investing activities | (299) | (257) | (855) |
FINANCING ACTIVITIES | |||
Borrowings | 0 | 990 | 1,484 |
Debt repayments | (368) | (1,400) | (600) |
Purchase of treasury stock | (100) | (1,548) | (3,529) |
Dividends paid | (635) | (564) | (541) |
Excess tax benefits on equity-based compensation awards | 0 | 43 | 84 |
Exercise of stock options | 11 | 146 | 173 |
Other, net | (81) | (144) | (171) |
Net cash flow used in financing activities | (1,173) | (2,477) | (3,100) |
Effect of exchange rate changes on cash and cash equivalents | (26) | (73) | (45) |
Net change in cash and cash equivalents | (127) | (494) | (1,403) |
Cash and cash equivalents at beginning of period | 506 | 1,000 | 2,403 |
Cash and cash equivalents at end of period | $ 379 | $ 506 | $ 1,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock (shares) | Common Stock/ Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Viacom Stockholders’ Equity | Noncontrolling Interests |
Equity, at beginning of period at Sep. 30, 2013 | $ 5,190 | $ 9,490 | $ (15,825) | $ 11,629 | $ (101) | $ 5,193 | $ (3) | |
Shares issued, at beginning of period at Sep. 30, 2013 | 449.3 | |||||||
Net earnings | 2,463 | 0 | 0 | 2,391 | 0 | 2,391 | 72 | |
Other comprehensive income (loss), net of income tax benefit | (191) | 0 | 0 | 0 | (192) | (192) | 1 | |
Noncontrolling interests | (50) | 0 | 0 | (8) | 0 | (8) | (42) | |
Dividends declared | (547) | 0 | 0 | (547) | 0 | (547) | 0 | |
Purchase of treasury stock | $ (3,400) | 0 | (3,400) | 0 | 0 | (3,400) | 0 | |
Purchase of treasury stock, shares | (40.7) | (40.7) | ||||||
Equity-based compensation and other | $ 282 | 282 | 0 | 0 | 0 | 282 | 0 | |
Equity based compensation and other, shares | 5.6 | |||||||
Equity, at end of period at Sep. 30, 2014 | 3,747 | 9,772 | (19,225) | 13,465 | (293) | 3,719 | 28 | |
Shares issued, at end of period at Sep. 30, 2014 | 414.2 | |||||||
Net earnings | 2,002 | 0 | 0 | 1,922 | 0 | 1,922 | 80 | |
Other comprehensive income (loss), net of income tax benefit | (243) | 0 | 0 | 0 | (241) | (241) | (2) | |
Noncontrolling interests | (63) | 0 | 0 | (18) | 0 | (18) | (45) | |
Dividends declared | (589) | 0 | 0 | (589) | 0 | (589) | 0 | |
Purchase of treasury stock | $ (1,500) | 0 | (1,500) | 0 | 0 | (1,500) | 0 | |
Purchase of treasury stock, shares | (21.1) | (21.1) | ||||||
Equity-based compensation and other | $ 245 | 245 | 0 | 0 | 0 | 245 | 0 | |
Equity based compensation and other, shares | 5 | |||||||
Equity, at end of period at Sep. 30, 2015 | 3,599 | 10,017 | (20,725) | 14,780 | (534) | 3,538 | 61 | |
Shares issued, at end of period at Sep. 30, 2015 | 398.1 | |||||||
Net earnings | 1,473 | 0 | 0 | 1,438 | 0 | 1,438 | 35 | |
Other comprehensive income (loss), net of income tax benefit | (165) | 0 | 0 | 0 | (158) | (158) | (7) | |
Noncontrolling interests | (68) | 0 | 0 | (32) | 0 | (32) | (36) | |
Dividends declared | (558) | 0 | 0 | (558) | 0 | (558) | 0 | |
Purchase of treasury stock | $ (100) | 0 | (100) | 0 | 0 | (100) | 0 | |
Purchase of treasury stock, shares | (2.1) | (2.1) | ||||||
Equity-based compensation and other | $ 149 | 122 | 27 | 0 | 0 | 149 | 0 | |
Equity based compensation and other, shares | 1 | |||||||
Equity, at end of period at Sep. 30, 2016 | $ 4,330 | $ 10,139 | $ (20,798) | $ 15,628 | $ (692) | $ 4,277 | $ 53 | |
Shares issued, at end of period at Sep. 30, 2016 | 397 |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||
Other Comprehensive Income (Loss), Tax | $ (31) | $ (8) | $ (68) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Description of Business Viacom is home to premier global media brands that create compelling television programs, motion pictures, short-form content, applications (“apps”), games, consumer products, social media experiences and other entertainment content for audiences in more than 180 countries. Viacom operates through two reporting segments: Media Networks and Filmed Entertainment . The Media Networks segment provides entertainment content and related branded products for consumers in targeted demographics attractive to advertisers, content distributors and retailers through three brand groups: the Global Entertainment Group, the Nickelodeon Group and BET Networks. On October 31, 2016, we announced that the Global Entertainment Group had been established to combine Viacom International Media Networks, our former Music & Entertainment Group (which included MTV, Comedy Central, VH1, Spike and Logo), as well as TV Land and CMT (which had previously been part of our Kids & Family Group). We also announced that our former Kids & Family Group would be reestablished as the Nickelodeon Group. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Animation, Nickelodeon Movies, MTV Films and Paramount Television brands. References in this document to “Viacom,” “Company,” “we,” “us” and “our” mean Viacom Inc. and our consolidated subsidiaries, unless the context requires otherwise. The consolidated financial statements present the Company’s financial results for the years ended September 30, 2016 (“ 2016 ”), September 30, 2015 (“ 2015 ”) and September 30, 2014 (“ 2014 ”). Use of Estimates Preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, potential outcome of uncertain tax positions, fair value of acquired assets and liabilities, fair value of equity-based compensation and pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the 2016 presentation. Recent Accounting Pronouncements Income Taxes In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16 - Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. We are currently evaluating the impact of the new standard. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15 - Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. We are currently evaluating the impact of the new standard. Financial Instruments In connection with its financial instruments project, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments in June 2016 and ASU 2016-01 - Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities in January 2016. • ASU 2016-13 introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. The guidance will be effective for the first interim period of our 2021 fiscal year, with early adoption in fiscal year 2020 permitted. • ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires the fair value measurement of investments in certain equity securities. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. All changes in measurement will be recognized in net income. The guidance will be effective for the first interim period of our 2019 fiscal year. Early adoption is not permitted, except for certain provisions relating to financial liabilities. We are currently evaluating the impact of the new standards. Equity-Based Compensation In March 2016, the FASB issued ASU 2016-09 - Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, such as requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and allowing a policy election to account for forfeitures as they occur. In addition, all related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows. The guidance will be effective for the first interim period of our 2018 fiscal year, with early adoption permitted. The new standard will impact our financial statements by increasing or decreasing our income tax provision and increasing cash flow from operating activities. Leases In February 2016, the FASB issued ASU 2016-02 - Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for most leases. For income statement purposes, leases will be classified as either operating or finance, generally resulting in straight-line expense recognition for operating leases (similar to current operating leases) and accelerated expense recognition for financing leases (similar to current capital leases). The guidance will be effective for the first interim period of our 2020 fiscal year, with early adoption permitted. We are currently evaluating the impact of the new standard. Revenue Recognition In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers, a comprehensive revenue recognition model that supersedes the current revenue recognition requirements and most industry-specific guidance. Subsequent accounting standard updates have also been issued which amend and/or clarify the application of ASU 2014-09. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The guidance will be effective for the first interim period of our 2019 fiscal year (with early adoption permitted beginning with our 2018 fiscal year), and allows adoption either under a full retrospective or a modified retrospective approach. We are currently evaluating the impact of the new standard. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Our consolidated financial statements include the accounts of Viacom Inc., its subsidiaries and variable interest entities (“VIEs”) where we are considered the primary beneficiary, after elimination of intercompany accounts and transactions. Investments in business entities in which Viacom lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Our proportionate share of net income or loss of the entity is recorded in Equity in net earnings of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation (“CBS”) and National Amusements, Inc. (“National Amusements”) have not been eliminated. Business Combinations We account for business combinations using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, 100% of the assets, liabilities and certain contingent liabilities acquired, including amounts attributed to noncontrolling interests, are recorded at fair value. Any transaction costs are expensed as incurred. Foreign Currency Translation and Remeasurement Assets and liabilities of subsidiaries with a functional currency other than the United States (“U.S.”) Dollar are translated into U.S. Dollars using period-end exchange rates, while results of operations are translated at exchange rates during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Substantially all of our foreign operations use the local currency as the functional currency. Subsidiaries that enter into transactions denominated in currencies other than their functional currency will result in remeasurement gains and losses which are reflected within Other items, net in the Consolidated Statements of Earnings. Revenue Recognition We recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. This includes the evaluation of multiple element arrangements for bundled advertising sales and content licenses, which involves allocating the consideration among individual deliverables within the bundled arrangement. Advertising Revenues : Revenue from the sale of advertising earned by the Media Networks segment is recognized, net of agency commissions, when the advertisement is aired and the contracted audience rating is met. For advertising sold based on impression guarantees, audience deficiency may result in an obligation to deliver additional units. To the extent we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience rating has been satisfied. Film and Television Production Revenues : Theatrical revenue is recognized from theatrical distribution of motion pictures upon exhibition. For sales of DVDs and Blue-ray discs to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue for transactional video-on-demand and similar arrangements are recognized as the films are exhibited based on end-customer purchases as reported by the distributor. Revenue from the licensing of film and television exhibition rights is recognized upon availability for airing by the licensee. Affiliate Revenues : Affiliate revenues from cable television operators, direct-to-home satellite television operators and mobile networks are recognized by the Media Networks segment as the service is provided to the distributor. Fees associated with arrangements with subscription video-on-demand (“SVOD”) and other over-the-top (“OTT”) services are recognized upon program availability. Ancillary Revenues : Revenue associated with consumer products and brand licensing is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. Revenue from licensing of our programming content for download-to-own and download-to-rent services is recognized when we are notified by the multi-platform retailer that the product has been downloaded and all other revenue recognition criteria are met. Multiple-Element Arrangements : We enter into arrangements under which we perform multiple revenue-generating activities. We must allocate consideration to separate units of account in the arrangement, which could impact the timing of revenue recognition. Advertising revenues are principally generated from the sale of advertising time comprised of multiple commercial units. Each advertising spot comprises a deliverable for accounting purposes. Consideration for these arrangements is allocated among the individual advertising spots based on relative fair value using Viacom-specific prices. SVOD and other OTT arrangements include multiple programs made available to distributors on one or more dates for a fixed fee. Consideration for such arrangements is allocated among the programs based on relative fair value using management’s best estimate considering viewing performance and other factors. Gross versus Net Revenue : We earn and recognize revenues as a distributor on behalf of third parties and through outsourced agency agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of who our customer is in the transaction. To the extent the end consumer is our customer, we act as the principal in a transaction and revenues earned from the end user are reported on a gross basis. This determination involves judgment and is based on an evaluation of whether we have the substantial risks and rewards under the terms of an arrangement. Revenue Allowances : We record a provision for sales returns and allowances at the time of sale based upon an estimate of future returns, rebates and other incentives (“estimated returns”). In determining estimated returns, we consider numerous sources of qualitative and quantitative evidence including forecasted sales data, customers’ rights of return, units shipped and units remaining at retail, historical return rates for similar product, current economic trends, competitive environment, promotions and sales strategies. Reserves for accounts receivable are based on amounts estimated to be uncollectible. Our reserve for sales returns and allowances was $93 million and $126 million at September 30, 2016 and 2015 , respectively. Our allowance for doubtful accounts was $44 million and $37 million at September 30, 2016 and 2015 , respectively. Advertising Expense We expense advertising costs as they are incurred. We incurred total advertising expenses of $987 million in 2016 , $748 million in 2015 and $1.020 billion in 2014 . Equity-Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value received is recognized in earnings over the period during which an employee is required to provide service. Income Taxes Our provision for income taxes includes the current tax owed on the current period earnings, as well as a deferred provision which reflects the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in existing tax laws and rates, their related interpretations, as well as the uncertainty generated by the prospect of tax legislation in the future may affect the amounts of deferred tax liabilities or the realizability of deferred tax assets. Deferred tax assets and deferred tax liabilities are classified as noncurrent and are included in Other Assets and Deferred tax liabilities, net , respectively, within the Consolidated Balance Sheets. For tax positions we have taken or expect to take in a tax return, we apply a more likely than not assessment (i.e., there is a greater than 50 percent chance) about whether the tax position will be sustained upon examination by the appropriate tax authority with full knowledge of all relevant information. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the position. Interest and penalties related to uncertain tax positions are included in the Provision for income taxes in the Consolidated Statements of Earnings . Liabilities for uncertain tax positions are classified as Other liabilities – noncurrent in the Consolidated Balance Sheets. Earnings per Common Share Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares are excluded from the calculation of diluted earnings per common share. Comprehensive Income Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to defined benefit plans, unrealized gains and losses on certain derivative financial instruments, and unrealized gains and losses on investments in equity securities which are publicly traded. Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. Inventory Inventories related to film and television productions (which include direct production costs, production overhead, acquisition costs and development costs) are stated at the lower of amortized cost or fair value. Acquired program rights and obligations are recorded based on the gross amount of the liability when the license period has begun, and when the program is accepted and available for airing. Acquired programming is stated at the lower of unamortized cost or net realizable value. Film, television and acquired programming inventories are included as a component of Inventory, net , in the Consolidated Balance Sheets. Film, television and acquired programming costs, including inventory amortization, development costs, residuals and participations and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. Film and Television production costs : We use an individual-film-forecast-computation method to amortize film costs and to accrue estimated liabilities for residuals and participations over the applicable title’s life cycle based upon the ratio of current period to estimated remaining total gross revenues (“ultimate revenues”) for each title. The estimate of ultimate revenues impacts the timing of amortization and accrual of residuals and participations. Our estimate of ultimate revenues for feature films includes revenues from all sources that are estimated to be earned within 10 years from the date of a film’s initial theatrical release. For acquired film libraries, our estimate of ultimate revenues is for a period within 20 years from the date of acquisition. These estimates are periodically reviewed and adjustments, if any, will result in changes to inventory amortization rates, estimated accruals for residuals and participations or possibly the recognition of an impairment charge to operating income. Film development costs that have not been set for production are expensed within three years unless they are abandoned earlier, in which case these projects are written down to their estimated fair value in the period the decision to abandon the project is determined. We have a rigorous greenlight process designed to manage the risk of loss or abandonment. We have entered into film financing arrangements that involve the sale of a partial copyright interest in a film. Amounts received under these arrangements are deducted from the film’s cost. Capitalized original programming costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s ultimate revenues based on genre and historical experience, beginning with the month of initial exhibition. Original programming costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the television program is less than the unamortized production cost or abandoned. Acquired programming : Costs incurred in acquiring program rights, including advances, are capitalized and amortized over the license period or projected useful life of the programming, if shorter, commencing upon availability, based on estimated future airings. If initial airings are expected to generate higher revenues an accelerated method of amortization is used. Net realizable value of acquired rights programming is evaluated quarterly by us on a daypart basis, which is defined as an aggregation of programs broadcast during a particular time of day or an aggregation of programs of a similar type. We aggregate similar programming based on the specific demographic targeted by each respective program service. Net realizable value is determined by estimating advertising revenues to be derived from the future airing of the programming within the daypart as well as an allocation of affiliate revenue to the programming. An impairment charge may be necessary if our estimates of future cash flows of similar programming are insufficient or if programming is abandoned. Home entertainment inventory : Home entertainment inventory is valued at the lower of cost or net realizable value. Cost is determined using the average cost method. Property and Equipment Property and equipment is stated at cost. Depreciation is calculated using the straight-line method. Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease. Costs associated with repairs and maintenance of property and equipment are expensed as incurred. Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the residual difference between the consideration paid for a business and the fair value of the net assets acquired. Goodwill is not amortized, but rather is tested annually for impairment, on August 31 each year, or sooner when circumstances indicate impairment may exist. Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or a business which is one level below that operating segment. Identifiable intangible assets with finite lives are amortized over their estimated useful lives, which range up to 20 years, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate impairment may exist. Amortizable intangible assets and other long-lived assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. Investments Our investments primarily consist of investments in equity. Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other investments are carried at fair value, to the extent publicly traded, with unrealized gains and losses recorded in other comprehensive income, or at cost. We monitor our investments for impairment at least annually and make appropriate reductions in carrying values if we determine that an impairment charge is required based on qualitative and quantitative information. Our investments are included in Other assets – noncurrent in the Consolidated Balance Sheets. Guarantees At the inception of a guarantee, we recognize a liability for the fair value of an obligation assumed by issuing the guarantee. The related liability is subsequently reduced as utilized or extinguished and increased if there is a probable loss associated with the guarantee which exceeds the value of the recorded liability. Treasury Stock Treasury stock is accounted for using the cost method. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: • Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Our recurring fair value measures include marketable securities and derivative instruments and our non-recurring fair value measures include goodwill and intangible assets. Derivative Financial Instruments Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivatives and the hedged items are recorded in current earnings as part of Other items, net in the Consolidated Statements of Earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets and subsequently recognized in earnings when the hedged items impact income. The fair value of derivative financial instruments is included in Prepaid and other assets and Other liabilities – current in the Consolidated Balance Sheets. Changes in the fair value of derivatives not designated as hedges and the ineffective portion of cash flow hedges are recorded in earnings. We do not hold or enter into financial instruments for speculative trading purposes. Pension Benefits Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. The expense we recognize is determined using certain assumptions, including the expected long-term rate of return and discount rate, among others. We recognize the funded status of our defined benefit plans (other than a multiemployer plan) as an asset or liability in the Consolidated Balance Sheets and recognize the changes in the funded status in the year in which the changes occur through Accumulated other comprehensive loss in the Consolidated Balance Sheets. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE We had $547 million and $577 million of noncurrent trade receivables as of September 30, 2016 and 2015 , respectively. Accounts receivables are principally related to long-term television license arrangements at Filmed Entertainment and content distribution arrangements at Media Networks . These amounts are included within Other assets - noncurrent in our Consolidated Balance Sheets. Such amounts are due in accordance with the underlying terms of the respective agreements with companies that are investment grade or with which we have historically done business under similar terms. We have determined that credit loss allowances are generally not considered necessary for these amounts. |
Investments
Investments | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Investments | INVESTMENTS Our equity method investments total $542 million and $434 million , as of September 30, 2016 and 2015 , respectively. We hold an equity interest of 50% in Viacom 18, a joint venture in India that owns and operates regional entertainment channels. In July 2015, we acquired a 50% interest in Prism TV Private Limited (“Prism”) for 9.4 billion rupees ( $149 million ). The purchase price substantially represents the difference between the carrying amount of our investment and our share of the underlying net assets of Prism. The difference includes other intangible assets that will be amortized over their estimated useful lives of 7 to 20 years . Prism has been merged into Viacom 18. We also hold an equity interest of approximately 50% in EPIX, a joint venture formed with Lionsgate and Metro-Goldwyn-Mayer to exhibit certain motion pictures on behalf of the equity partners’ movie studios through a premium pay television channel and video-on-demand services available on multiple platforms. Our cost method investments total $96 million and $71 million as of September 30, 2016 and 2015 , respectively. Variable Interest Entities In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a VIE. In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Consolidated Balance Sheets include amounts related to consolidated VIEs totaling $190 million in assets and $57 million in liabilities as of September 30, 2016 , and $207 million in assets and $54 million in liabilities as of September 30, 2015 . We have certain rights and obligations related to our investments, including the guarantee of certain third-party bank debt. The consolidated VIEs’ revenues, expenses and operating income were not significant for all periods presented. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | PROPERTY AND EQUIPMENT Property and Equipment, net (in millions) September 30, Estimated Life (in years) 2016 2015 Land $ 239 $ 238 — Buildings 432 449 up to 40 Capital leases 204 257 up to 15 Equipment and other 1,958 1,871 up to 20 Property and equipment 2,833 2,815 Less: Accumulated depreciation (1,901 ) (1,868 ) Property and equipment, net $ 932 $ 947 Depreciation expense, including assets under capital leases, was $188 million in 2016 and 2015 , and $177 million in 2014 . Depreciation expense related to capital leases was $18 million in 2016 , $20 million in 2015 and $21 million in 2014 . Accumulated depreciation of capital leases was $147 million and $171 million at September 30, 2016 and 2015 , respectively. |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory (in millions) September 30, 2016 2015 Film inventory: Released, net of amortization $ 632 $ 576 Completed, not yet released 128 55 In process and other 993 806 1,753 1,437 Television productions: Released, net of amortization 16 — In process and other 102 8 118 8 Original programming: Released, net of amortization 1,082 1,161 In process and other 706 599 1,788 1,760 Acquired program rights, net of amortization 1,127 1,108 Home entertainment inventory 90 89 Total inventory, net 4,876 4,402 Less current portion 844 786 Noncurrent portion $ 4,032 $ 3,616 We expect to amortize approximately $1.5 billion of film and television costs, including released and completed, not yet released, during the fiscal year ending September 30, 2017 using the individual-film-forecast-computation method. In addition, we expect to amortize 90% of unamortized released film and television costs, excluding acquired film libraries, at September 30, 2016 , within the next three years . |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangibles | GOODWILL AND INTANGIBLES Goodwill The following table details the change in goodwill by segment for 2016 and 2015 : Goodwill (in millions) Media Networks Filmed Entertainment Total Balance at September 30, 2014 $ 9,942 $ 1,593 $ 11,535 Dispositions (3 ) — (3 ) Foreign currency translation (92 ) — (92 ) Other 16 — 16 Balance at September 30, 2015 9,863 1,593 11,456 Foreign currency translation (52 ) — (52 ) Other (4 ) — (4 ) Balance at September 30, 2016 $ 9,807 $ 1,593 $ 11,400 Intangibles The following table details our intangible asset balances by major asset classes: Intangibles (in millions) September 30, 2016 2015 Finite-lived intangible assets: Trade names $ 182 $ 175 Licenses 127 131 Subscriber agreements 58 54 Other intangible assets 152 152 519 512 Accumulated amortization on finite-lived intangible assets: Trade names (73 ) (63 ) Licenses (13 ) (8 ) Subscriber agreements (47 ) (40 ) Other intangible assets (126 ) (116 ) (259 ) (227 ) Finite-lived intangible assets, net $ 260 $ 285 Indefinite-lived intangible assets 55 55 Total intangibles, net $ 315 $ 340 Amortization expense relating to intangible assets was $33 million for 2016 , $34 million for 2015 and $40 million for 2014 . We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2016 to be as follows for each of the next five fiscal years: Amortization of Intangibles (in millions) 2017 2018 2019 2020 2021 Amortization expense $28 $26 $23 $21 $20 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Our total debt consists of the following: Debt (in millions) September 30, 2016 2015 Senior Notes and Debentures: Senior notes due April 2016, 6.250% $ — $ 368 Senior notes due December 2016, 2.500% 400 399 Senior notes due April 2017, 3.500% 499 498 Senior notes due October 2017, 6.125% 499 499 Senior notes due September 2018, 2.500% 498 497 Senior notes due April 2019, 2.200% 399 398 Senior notes due September 2019, 5.625% 550 550 Senior notes due December 2019, 2.750% 399 398 Senior notes due March 2021, 4.500% 495 494 Senior notes due December 2021, 3.875% 593 592 Senior notes due June 2022, 3.125% 296 296 Senior notes due March 2023, 3.250% 297 297 Senior notes due September 2023, 4.250% 1,235 1,233 Senior notes due April 2024, 3.875% 544 543 Senior debentures due December 2034, 4.850% 593 592 Senior debentures due April 2036, 6.875% 1,066 1,066 Senior debentures due October 2037, 6.750% 75 75 Senior debentures due February 2042, 4.500% 244 244 Senior debentures due March 2043, 4.375% 1,091 1,085 Senior debentures due June 2043, 4.875% 247 246 Senior debentures due September 2043, 5.850% 1,228 1,228 Senior debentures due April 2044, 5.250% 545 544 Capital lease and other obligations 120 143 Total debt 11,913 12,285 Less current portion 17 18 Noncurrent portion $ 11,896 $ 12,267 The amounts classified in the current portion of debt consist of the portion of capital leases payable in the next twelve months. Senior Notes and Debentures In the third quarter of fiscal 2016, we repaid the $368 million aggregate principal amount of our 6.250% Senior Notes due April 2016. Our outstanding senior notes and debentures provide for certain covenant packages typical for an investment grade company. There is one acceleration trigger for certain of the senior notes and debentures in the event of a change in control under certain specified circumstances coupled with ratings downgrades due to the change in control. At September 30, 2016 and 2015 , the total unamortized discount and issuance fees and expenses related to the fixed rate senior notes and debentures was $459 million and $478 million , respectively. The fair value of our senior notes and debentures was approximately $12.8 billion and $12.0 billion as of September 30, 2016 and 2015 , respectively. The valuation of our publicly traded debt is based on quoted prices in active markets. On October 4, 2016, we issued a total of $1.3 billion of senior notes as follows: • $400 million in aggregate principal amount of 2.250% senior notes due 2022 at a price equal to 99.692% of the principal amount (the “2022 Senior Notes”); and • $900 million in aggregate principal amount of 3.450% senior notes due 2026 at a price equal to 99.481% of the principal amount (the “2026 Senior Notes” and, together with the 2022 Senior Notes, the “Senior Notes”). The interest rate payable on the Senior Notes will be subject to adjustment from time to time if Moody’s Investors Services, Inc. or S&P Global Ratings downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Senior Notes. The interest rate on the Senior Notes would increase by 0.25% upon each credit agency downgrade up to a maximum of 2.00% , and would similarly be decreased for subsequent upgrades. The proceeds, net of discount and other issuance fees and expenses, from the issuance of the Senior Notes were $1.285 billion . As discussed below, a portion of the proceeds will be used to redeem the senior notes due in December 2016 and April 2017 and therefore, the senior notes were classified as long-term debt as of September 30, 2016. In October 2016, we delivered notices of redemption to redeem all $400 million of our outstanding 2.500% senior notes due December 2016 and all $500 million of our outstanding 3.500% senior notes due April 2017. The redemption is expected to take place on November 14, 2016. Credit Facility At September 30, 2016 and 2015 , there were no amounts outstanding under our $2.5 billion revolving credit facility due November 2019. The credit facility is used for general corporate purposes and to support commercial paper outstanding, if any. The borrowing rate under the credit facility is LIBOR plus a margin ranging from 1.25% to 2.25% based on our current public debt rating. The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of September 30, 2016. Commercial Paper At September 30, 2016 and 2015 , there was no commercial paper outstanding. Scheduled Debt Maturities Our scheduled maturities of debt at face value for each of the next five fiscal years and thereafter, excluding capital leases, outstanding at September 30, 2016 are as follows: Maturities of Debt Excluding Capital Leases (in millions) Year 1 Year 2 Year 3 Year 4 Year 5 After 5 Years Debt $900 $1,000 $950 $400 $500 $8,502 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded plan provides a defined benefit based on a percentage of eligible compensation for periods of service. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plans utilizing a measurement date as of September 30, 2016 and 2015 , respectively: Change in Benefit Obligation (in millions) Year Ended 2016 2015 Benefit obligation, beginning of period $ 937 $ 1,060 Interest cost 35 43 Actuarial (gain)/loss 86 (38 ) Benefits paid (44 ) (128 ) Benefit obligation, end of period $ 1,014 $ 937 Change in Plan Assets (in millions) Year Ended 2016 2015 Fair value of plan assets, beginning of period $ 493 $ 656 Actual return on plan assets 47 (44 ) Employer contributions 14 9 Benefits paid (44 ) (128 ) Fair value of plan assets, end of period $ 510 $ 493 Funded status (in millions) September 30, 2016 2015 Funded status $ (504 ) $ (444 ) Substantially all of the unfunded amounts are included within Other liabilities in the Consolidated Balance Sheets as of September 30, 2016 and September 30, 2015. In December 2014, we offered certain participants of our funded pension plan the option to receive a one-time lump-sum payment equal to the present value of their respective pension benefit. The settlement triggered a remeasurement of the net pension obligation and settlement accounting. The settlement resulted in the recognition of a non-cash settlement loss of $24 million reclassified from unrecognized actuarial loss included within Accumulated other comprehensive loss in the Consolidated Balance Sheets. The amount paid to the participants making the one-time election totaled $90 million which is included within Benefits paid in the 2015 table above. Accumulated Benefit Obligation The accumulated benefit obligation includes no assumption about future compensation levels since our plans are frozen. Included in the change in benefit obligation tables above are the following funded and unfunded plans with an accumulated benefit obligation equal to or in excess of plan assets at the end of the fiscal year. Funded Plans Unfunded Plans Total Plans Accumulated Benefit Obligation (in millions) September 30, September 30, September 30, 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 684 $ 635 $ 330 $ 302 $ 1,014 $ 937 Fair value of plan assets 510 493 — — 510 493 Funded status $ (174 ) $ (142 ) $ (330 ) $ (302 ) $ (504 ) $ (444 ) Net Periodic Benefit Costs Our net periodic benefit cost under Viacom’s pension plans consists of the following: Net Periodic Benefit Costs (in millions) Year Ended September 30, 2016 2015 2014 Interest cost $ 35 $ 43 $ 46 Expected return on plan assets (38 ) (46 ) (50 ) Recognized actuarial loss 5 8 2 Loss on pension settlement — 24 — Net periodic benefit costs $ 2 $ 29 $ (2 ) The items reflected in Accumulated other comprehensive loss in the Consolidated Balance Sheets and not yet recognized as a component of net periodic benefit cost are: Unrecognized Benefit Cost (in millions) Year Ended 2016 2015 Unrecognized actuarial loss $ 363 $ 291 Unrecognized actuarial loss of $7 million is expected to be recognized as a component of net periodic benefit cost during the fiscal year ended September 30, 2017. The amounts recognized in other comprehensive income during the year are: Other Comprehensive Income (in millions) Year Ended Net actuarial loss $ 77 Recognized actuarial loss (5 ) Total pre-tax loss $ 72 Year Ended Key Assumptions 2016 2015 Weighted-average assumptions - benefit obligations Discount rate 3.92 % 4.50 % Weighted-average assumptions - net periodic costs Discount rate 3.79 % 4.37 % Expected long-term return on plan assets 7.50 % 8.00 % Two key assumptions used in accounting for pension liabilities and expenses are the discount rate and expected rate of return on plan assets. The discount rate reflects the estimated rate at which the pension benefit obligations could effectively be settled. We used investment grade corporate bond yields to support our discount rate assumption. Interest cost in 2016 is measured by applying the specific spot rates along the yield curve to the corresponding cash flows. The expected long-term returns on plan assets were based upon the target asset allocation and return estimates for equity and debt securities. The expected rate of return for equities was based upon the risk-free rate plus a premium for equity securities. The expected return on debt securities was based upon an analysis of current and historical yields on portfolios of similar quality and duration. The estimated impact of a 25 basis point change in the discount rate would change the accumulated benefit obligation by approximately $43 million . The impact of a 25 basis point change in the discount rate or expected rate of return on plan assets would change net periodic benefit cost by approximately $1 million . Investment Policies and Strategies The Viacom Investments Committee is responsible for managing the investment of assets under the funded pension plan in a prudent manner with regard to preserving principal while providing reasonable returns. The Viacom Investments Committee has established an investment policy through careful study of the returns and risks associated with alternative investment strategies in relation to the current and projected liabilities of the plan, after consulting with an outside investment advisor as it deems appropriate. The investment advisor’s role is to provide guidance to the Viacom Investments Committee on matters pertaining to the investment of plan assets including investment policy, investment selection, monitoring the plan’s performance and compliance with the plan’s investment policies. The investment policy establishes target asset allocations based upon an analysis of the timing and amount of projected benefit payments, the expected returns and risk of the asset classes and the correlation of those returns. Our practice is to review asset allocations regularly with our investment advisor and rebalance as necessary. The range of target asset allocations under our investment policy are 55 - 75% domestic and non-U.S. equity securities, 25 - 40% domestic and non-U.S. debt securities and 0 - 10% in cash and other instruments. The investment advisor implements the investment policy through investments in mutual funds and other pooled asset portfolios. Investments will be diversified within asset classes with the intent to minimize the risk of large losses to the plan. The percentage of asset allocations of our funded pension plan at September 30, 2016 and 2015 , by asset category were as follows: September 30, Asset Allocations of Funded Pension Plan 2016 2015 Equity securities 64 % 63 % Debt securities 32 34 Cash and cash equivalents 4 3 Total 100 % 100 % Viacom Class B common stock represents approximately 2% of the fair value of plan assets at September 30, 2016 and 2015 . Fair Value Measurement of Plan Assets The following table sets forth the plan’s assets at fair value as of September 30, 2016 and 2015 . For investments held at the end of the reporting period that are measured at fair value on a recurring basis, there were no transfers between levels from 2015 to 2016 . The funded pension plan has no investments classified within level 3 of the valuation hierarchy. Total Level 1 Level 2 Fair Value of Plan Assets (in millions) September 30, September 30, September 30, 2016 2015 2016 2015 2016 2015 Cash and Cash Equivalents (1) $ 20 $ 15 $ — $ — $ 20 $ 15 Equity Securities Common and preferred stock 10 33 10 33 — — World funds (2) 286 230 — — 286 230 Emerging markets funds (2) 32 46 — — 32 46 Debt Securities U.S. treasury securities 14 10 — — 14 10 Municipal & government issued bonds 1 1 — — 1 1 Corporate bonds 40 46 — — 40 46 Mortgage-backed & asset-backed securities 30 39 — — 30 39 Emerging markets funds (3) 19 19 19 19 — — Multi-strategy funds (4) 58 54 — — 58 54 Total $ 510 $ 493 $ 29 $ 52 $ 481 $ 441 (1) Assets categorized as Level 2 reflect investments in money market funds. (2) Assets reflect common/collective trust funds. (3) Assets reflect mutual funds. (4) Reflects investments in common/collective trust funds and limited partnerships. Money market funds are carried at amortized cost which approximates fair value due to the short-term maturity of these investments. Common and preferred stocks are reported at fair value based on quoted market prices on national securities exchanges. Investments in registered investment companies (mutual funds) are stated at the respective funds’ net asset value (“NAV”), which is determined based on market values at the closing price on the last business day of the year and is a quoted price in an active market. The fair value of common/collective trust funds are based on their NAV at period-end. The fair value of U.S. Treasury securities and bonds is determined based on quoted market prices on national security exchanges, when available, or using valuation models which include certain other observable inputs including recent trading activity and broker quoted prices. Corporate bonds include securities of diverse industries, substantially all investment grade. Mortgage-backed and asset-backed securities are valued using valuation models which incorporate available dealer quotes and market information. The fair value of limited partnerships is valued at period-end based on its underlying investments. Future Benefit Payments The estimated future benefit payments for the next ten fiscal years are as follows: Future Benefit Payments (in millions) 2017 2018 2019 2020 2021 2022-2026 Pension benefits $36 $37 $40 $43 $44 $266 Postretirement Health Care and Life Insurance Plans Eligible employees participate in Viacom-sponsored health and welfare plans that provide certain postretirement health care and life insurance benefits to retired employees and their covered dependents. Most of the health and welfare plans are contributory and contain cost-sharing features such as deductibles and coinsurance which are adjusted annually. Claims are paid either through certain trusts funded by Viacom or by our own funds. The amounts related to these plans were not material for all periods presented. 401(k) Plans Viacom has defined contribution (401(k)) plans for the benefit of substantially all our employees meeting certain eligibility requirements. Our costs recognized for such plans were $44 million in 2016 , $46 million in 2015 and $47 million in 2014 . Multiemployer Benefit Plans We contribute to various multiemployer pension plans under the terms of collective bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans such that (i) contributions made by us to these plans may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. While no multiemployer pension plan that we contributed to is considered individually significant to us, we were listed on two Form 5500s as providing more than 5% of total contributions to each plan based on current information available. The most recent filed zone status (which denotes the financial health of a plan) under the Pension Protection Act of 2006 for these two plans is green, indicating that the plans are at least 80% funded. Total contributions that we made to multiemployer pension plans were $48 million in 2016 , $54 million in 2015 and $52 million in 2014 . We also contribute to various other multiemployer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions that we made to these non-pension multiemployer benefit plans were $73 million in 2016 , $77 million in 2015 and $74 million in 2014 . |
Redeemable NCI
Redeemable NCI | 12 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | REDEEMABLE NONCONTROLLING INTEREST We are subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary. The put option expires in December 2022 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The activity reflected within redeemable noncontrolling interest for the fiscal years 2016 , 2015 and 2014 is presented below. Redeemable Noncontrolling Interest (in millions) Year Ended September 30, 2016 2015 2014 Beginning balance $ 219 $ 216 $ 200 Net earnings 17 15 20 Distributions (19 ) (20 ) (17 ) Translation adjustment (38 ) (10 ) 5 Redemption value adjustment 32 18 8 Ending balance $ 211 $ 219 $ 216 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments Our commitments primarily consist of programming and talent commitments, operating and capital lease arrangements, and purchase obligations for goods and services. These arrangements result from our normal course of business and represent obligations that may be payable over several years. Our programming and talent commitments that are not recorded on the balance sheet, which aggregated to approximately $1.550 billion as of September 30, 2016 , included $1.191 billion relating to media networks programming and $359 million for talent contracts. At September 30, 2016 , we have recorded, on the balance sheet, programming commitments of $1.003 billion . Amounts expected to be paid over the next five fiscal years, beginning with fiscal year 2017 , are as follows: $692 million , $198 million , $84 million , $25 million and $4 million . We have long-term noncancelable operating and capital lease commitments for office space, equipment, transponders, studio facilities and vehicles. At September 30, 2016 , minimum rental payments under noncancelable leases by fiscal year are as follows: Noncancelable Lease Commitments (in millions) Capital Operating 2017 $ 21 $ 228 2018 21 203 2019 22 100 2020 9 144 2021 6 131 2022 and thereafter 1 962 Total minimum payments $ 80 $ 1,768 Amounts representing interest (8 ) Total $ 72 Future minimum operating lease payments have been reduced by future minimum sublease income of $20 million . Rent expense amounted to $266 million in 2016 , $268 million in 2015 and $227 million in 2014 . We also have purchase obligations which include agreements to purchase goods or services in the future that totaled $1.211 billion as of September 30, 2016 . Our collaborative arrangements principally relate to contractual arrangements with other studios to jointly finance and distribute theatrical productions (“co-financing arrangements”). A co-financing arrangement typically involves joint ownership of the film asset with each partner responsible for distribution of the film in specific territories. The partners share in the profits and losses of the film in accordance with their respective ownership interest. The amounts recorded in the Consolidated Statements of Earnings related to collaborative arrangements were not material . Contingencies Guarantees : In the course of our business, we both provide and receive the benefit of indemnities that are intended to allocate certain risks associated with business transactions. Leases - We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. (“Famous Players”). In addition, we have certain indemnities provided by the acquirer of Famous Players. These lease commitments amounted to approximately $230 million as of September 30, 2016 . The amount of lease commitments varies over time depending on expiration or termination of individual underlying leases, or of the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We have recorded a liability of $190 million with respect to such obligations as of September 30, 2016 . We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models. Other - We have indemnification obligations with respect to letters of credit and surety bonds primarily used as security against non-performance in the normal course of business. The outstanding letters of credit and surety bonds at September 30, 2016 were $34 million and are not recorded on our Consolidated Balance Sheet. Legal Matters : Settlement of Various Litigations Involving National Amusements and the Sumner M. Redstone National Amusements Trust Effective August 18, 2016, Viacom entered into an agreement (the “Settlement Agreement”) with National Amusements and NAI Entertainment Holdings LLC (together, “NAI”), various members of the Redstone family and related parties, the directors of the Company, and certain other parties. Pursuant to the Settlement Agreement, which was unanimously approved by our Board, among other matters, all claims among Viacom, NAI and the other parties to the Settlement Agreement that are the subject matter of the Settlement Agreement were dismissed and terminated. Purported Class and Derivative Actions Between June 17, 2016 and August 1, 2016, three substantially similar purported class action complaints were filed in the Delaware Chancery Court by purported Viacom stockholders, against Viacom, Viacom’s directors and NAI and were subsequently consolidated into one action. The action - brought on behalf of the class of all holders of Viacom Class B common stock except the named defendants and any person or entity affiliated with any of the defendants - alleges claims for breaches of fiduciary duty against the incumbent director defendants and NAI, and alleges that Viacom’s new directors aided and abetted these breaches. In addition to damages and attorneys’ fees, the action seeks “such relief as the Court deems just and proper.” All defendants, including Viacom and certain of its directors, have moved to dismiss the action. On July 20, 2016, a purported derivative action was commenced in Delaware Chancery Court by a purported Viacom stockholder against Viacom and its directors. The complaint alleges that Viacom’s directors breached their fiduciary duties to Viacom in connection with compensation paid to Mr. Redstone. These breaches, it is alleged, permitted a waste of corporate assets and the unjust enrichment of Mr. Redstone. We intend to move to dismiss the action. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common Stock The Viacom Board of Directors has the power to issue shares of authorized but unissued Class A common stock and Class B common stock without further stockholder action, subject to the requirements of applicable law and stock exchanges. Viacom’s certificate of incorporation authorizes 375 million shares of Class A common stock and 5 billion shares of Class B common stock. The number of authorized shares of Class A common stock and Class B common stock could be increased with the approval of the stockholders of a majority of the outstanding shares of Class A common stock and without any action by the holders of shares of Class B common stock. The following is a description of the material terms of Viacom’s capital stock. The following description is not meant to be complete and is qualified by reference to Viacom’s certificate of incorporation and bylaws and Delaware General Corporation Law. Voting Rights : Holders of Class A common stock are entitled to one vote per share. Holders of Class B common stock do not have any voting rights, except as required by Delaware law. Generally, all matters to be voted on by Viacom stockholders must be approved by a majority of the aggregate voting power of the shares of Class A common stock present in person or represented by proxy at a meeting of stockholders, except in certain limited circumstances and as required by Delaware law. Dividends : Stockholders of Class A common stock and Class B common stock will share ratably in any cash dividend declared by the Board of Directors, subject to any preferential rights of any outstanding preferred stock. Conversion : So long as there are 5,000 shares of Class A common stock outstanding, each share of Class A common stock will be convertible at the option of the holder of such share into one share of Class B common stock. Liquidation Rights : In the event of liquidation, dissolution or winding-up of Viacom, all stockholders of common stock, regardless of class, will be entitled to share ratably in any assets available for distributions to stockholders of shares of Viacom common stock subject to the preferential rights of any outstanding preferred stock. Split, Subdivisions or Combination : In the event of a split, subdivision or combination of the outstanding shares of Class A common stock or Class B common stock, the outstanding shares of the other class of common stock will be divided proportionally. Preemptive Rights : Shares of Class A common stock and Class B common stock do not entitle a stockholder to any preemptive rights enabling a stockholder to subscribe for or receive shares of stock of any class or any other securities convertible into shares of stock of any class of Viacom. Preferred Stock Our capital stock includes 25 million authorized shares of preferred stock with a par value of $0.001 per share. At September 30, 2016 and 2015 , none of the 25 million authorized shares of the preferred stock were issued and outstanding. Stock Repurchase Program During 2016 , we repurchased 2.1 million shares of Class B common stock for an aggregate price of $100 million , leaving $4.9 billion of remaining capacity under our $20.0 billion stock repurchase program. During 2015 and 2014 , we repurchased 21.1 million and 40.7 million shares under the program for an aggregate price of $1.5 billion and $3.4 billion , respectively. Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss are as follows: Accumulated Other Comprehensive Loss (in millions) September 30, 2016 2015 2014 Foreign currency translation adjustments $ (435 ) $ (341 ) $ (106 ) Defined benefit pension plans (258 ) (193 ) (186 ) Cash flow hedges 1 — (1 ) Total $ (692 ) $ (534 ) $ (293 ) |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Based Compensation | EQUITY-BASED COMPENSATION Our 2016 Long-Term Management Incentive Plan, (the “LTMIP”), provides for various types of equity awards, including stock options, stock appreciation rights, restricted shares, unrestricted shares of Class B common stock, phantom shares, dividend equivalents, time-vested and performance-based share units, and other awards, or a combination of any of the above. In addition, our equity plans for outside directors provide for an annual grant of time-vested restricted share units (“RSUs”). We have primarily granted stock options and RSUs to employees. Certain senior executives have also received performance-based share units. Stock options generally vest ratably over a four -year period from the date of grant and expire eight to ten years after the date of grant. Employee RSUs typically vest ratably over a four -year period from the date of the grant. Director RSUs typically vest one year from the date of grant. The target number of performance share units (“PSUs”) granted to an executive represents the right to receive a corresponding number of shares of Class B common stock, subject to adjustment depending on the total shareholder return (“TSR”) of our Class B common stock measured against the TSR of the common stock of the companies comprising the S&P 500 Index at the start of the measurement period. The measurement period is generally three years . The number of shares of Class B common stock an executive is entitled to receive at the end of the applicable measurement period ranges from 0% to 300% of the target PSU award. If Viacom’s percentile rank of TSR relative to the TSR for the companies in the S&P 500 Index is less than the 25th percentile, the target grant is forfeited unless we have achieved a specified level of earnings per share set in advance for the measurement period, in which case the executive would receive a percentage of the target award. No other performance-based share units were outstanding as of September 30, 2016. Previously granted performance-based share units were designed to vest over three or four years and deliver, at the time of vesting, 75% to 125% of the target number of shares of Class B common stock underlying the awards based on the achievement of certain financial targets. Outstanding share units accrue dividends each time we declare a quarterly cash dividend, which are paid upon vesting on the number of shares delivered and are forfeited if the award does not vest. Upon the exercise of a stock option award or the vesting of share units, shares of Class B common stock are issued from authorized but unissued shares or from treasury stock. At September 30, 2016 , we had 399.4 million shares in treasury. The aggregate number of equity awards authorized and available under the LTMIP for future grants as of September 30, 2016 was approximately 17 million , assuming that outstanding PSU awards are paid at target except for those awards for which the measurement period has been completed. Presented below is a summary of the compensation cost we recognized in the accompanying Consolidated Statements of Earnings: Equity-Based Compensation Expense (in millions) Year Ended September 30, 2016 2015 2014 Recognized in earnings: Stock options $ 29 $ 33 $ 37 Share units 66 68 85 Compensation cost included in SG&A expense 95 101 122 Compensation cost included in restructuring charge* 68 — — Total compensation cost in earnings $ 163 $ 101 $ 122 Tax benefit recognized $ 58 $ 35 $ 40 Capitalized equity-based compensation expense $ 4 $ 5 $ 6 * See Note 14 for additional information regarding the restructuring charge. Stock Options The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of volatility is principally based upon implied volatilities from traded options. The expected term, representing the period of time that options granted are expected to be outstanding, is estimated using a lattice-based model incorporating historical post vest exercise and employee termination behavior. The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. The expected dividend yield is estimated by dividing the expected annual dividend by the market price of our common stock at the date of grant. Below are the weighted average fair value of awards granted in the periods presented and the weighted average of the applicable assumptions used to value stock options at grant date. Year Ended September 30, Key Assumptions 2016 2015 2014 Weighted average fair value of grants $ 8.65 $ 11.34 $ 16.52 Weighted average assumptions: Expected stock price volatility 36.1 % 23.8 % 25.0 % Expected term of options (in years) 5.4 4.8 4.6 Risk-free interest rate 1.5 % 1.6 % 1.5 % Expected dividend yield 4.1 % 2.4 % 1.6 % The following table summarizes information about our stock option transactions: Year Ended Year Ended Year Ended Stock Options (number of options in thousands) Options Weighted average exercise price Options Weighted average exercise price Options Weighted average exercise price Outstanding at the beginning of the period 17,771.3 $ 53.43 19,058.5 $ 47.67 21,441.9 $ 42.85 Granted 3,765.7 38.86 3,303.1 66.35 2,040.7 84.46 Exercised (1,242.5 ) 35.24 (4,097.4 ) 35.53 (4,233.2 ) 40.71 Forfeited or expired (698.3 ) 60.26 (492.9 ) 66.19 (190.9 ) 54.21 Outstanding at the end of the period 19,596.2 $ 51.54 17,771.3 $ 53.43 19,058.5 $ 47.67 Exercisable at the end of the period 12,191.2 $ 49.49 11,109.1 $ 44.83 12,656.1 $ 38.75 The weighted average remaining contractual life of stock options outstanding and exercisable at September 30, 2016 was 4 years and 3 years, respectively. The aggregate intrinsic value of stock options outstanding and exercisable at September 30, 2016 was $17 million . The following table summarizes information relating to stock option exercises during the periods presented: Year Ended September 30, Stock Option Exercises (in millions) 2016 2015 2014 Proceeds from stock option exercises $ 11 $ 146 $ 173 Intrinsic value $ 7 $ 153 $ 182 Excess tax benefit/(shortfall) $ (3 ) $ 39 $ 53 Total unrecognized compensation cost related to unvested stock option awards at September 30, 2016 was approximately $41 million and is expected to be recognized on a straight-line basis over a weighted-average period of 3 years. Share Unit Awards The grant date fair value for the PSUs subject to the market and performance condition indicated earlier in this note is computed using a Monte Carlo model to estimate the total return ranking of Viacom among the S&P 500 Index companies on the date of grant over the measurement periods. Compensation cost for PSUs is being recognized as the requisite service period is fulfilled and assumes all performance goals will be met. The grant date fair value for RSUs and other performance-based share units is based on our stock price on the date of the grant. The following table summarizes activity relating to our share unit transactions: Year Ended Year Ended Year Ended Share units (number of shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested at the beginning of the period 2,645.1 $ 75.68 3,138.3 $ 67.35 4,311.4 $ 53.54 Granted* 1,701.1 44.75 1,430.2 71.22 1,570.8 81.86 Vested (1,144.8 ) 63.83 (1,644.8 ) 57.18 (2,593.8 ) 53.88 Forfeited (693.8 ) 83.12 (278.6 ) 68.17 (150.1 ) 55.20 Unvested at the end of the period 2,507.6 $ 58.05 2,645.1 $ 75.68 3,138.3 $ 67.35 * Grant activity includes 0.4 million , 0.4 million and 0.2 million of performance-based share units at target for 2016 , 2015 and 2014 , respectively. The total weighted average remaining contractual life and aggregate intrinsic value of unvested share units at September 30, 2016 was 2 years and $96 million , respectively. The fair value of share units vested was $46 million in 2016 , $110 million in 2015 and $212 million in 2014 . Total unrecognized compensation cost related to these awards at September 30, 2016 was approximately $104 million and is expected to be recognized over a weighted-average period of 3 years. |
Restructuring and Programming C
Restructuring and Programming Charges | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Programming Charges | RESTRUCTURING AND PROGRAMMING CHARGES In 2016, we recognized a restructuring charge of $206 million in connection with the separation of certain senior executives. The restructuring charge includes the cost of separation payments of $138 million and the acceleration of equity-based compensation expense of $68 million . Separation payments of $48 million were paid in 2016 with the majority of the remaining amount scheduled to be paid in fiscal 2017. We established grantor trusts in our name and funded the trusts with approximately $69 million to facilitate the administration of certain payments. The assets held in the grantor trusts are Company assets and are therefore included in our Consolidated Balance Sheet within Prepaid and other assets and Other assets - noncurrent as of September 30, 2016. In 2015, we recognized a charge consisting of $578 million of programming charges and a $206 million restructuring charge associated with workforce reductions. The programming charges are included within Operating expenses in the Consolidated Statement of Earnings. These charges were recognized in connection with a company-wide review across our worldwide Media Networks, Filmed Entertainment operations and corporate functions. The company-wide review resulted in the implementation of significant strategic and operational improvements aimed at addressing the ratings challenges experienced by our networks and enhancing the effectiveness and efficiency of our operations, including a new programming strategy shifting focus away from repeated acquired programming and toward fresher, first-run original programming specifically targeted to appeal to our youth and family-oriented demographics. As a result of the review, we reorganized our operating segments and the newly structured operating segment management performed a comprehensive strategic review of existing programming, resulting in the identification of programming not aligned with the Company’s new strategy. Decisions were made to cease airing certain programs, alter future airing patterns of certain other programs, and move some programming to secondary networks that would not generate sufficient revenues to support their carrying value. Our restructuring liability for the workforce reductions in 2015 by reporting segment is as follows: (in millions) Media Networks Filmed Entertainment Corporate Total September 30, 2015 $ 87 $ 51 $ 9 $ 147 Severance payments (48 ) (28 ) (4 ) (80 ) Revisions to initial estimates (3 ) (11 ) (1 ) (15 ) September 30, 2016 $ 36 $ 12 $ 4 $ 52 The liability as of September 30, 2016 is related to future severance payments in connection with the restructuring plan undertaken in fiscal 2015. We anticipate that substantially all of the remaining liability associated with the restructuring plan will be paid during fiscal 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES Earnings from continuing operations before provision for income taxes consist of the following: Earnings from Continuing Operations before Provision for Income Taxes (in millions) Year Ended September 30, 2016 2015 2014 United States $ 1,479 $ 2,047 $ 2,924 International 511 456 590 Pre-tax earnings from continuing operations $ 1,990 $ 2,503 $ 3,514 The provision for income taxes from continuing operations consists of the following: Provision for Income Taxes from Continuing Operations (in millions) Year Ended September 30, 2016 2015 2014 Current provision for income taxes: Federal $ 112 $ 404 $ 1,049 State and local 31 65 122 International 122 114 169 Total current provision for income taxes 265 583 1,340 Deferred provision for income taxes 254 (82 ) (290 ) Provision for income taxes $ 519 $ 501 $ 1,050 A reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate is as follows: Year Ended September 30, Effective Tax Rate 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal benefit 1.7 1.8 1.9 Effect of international operations (4.4 ) (2.9 ) (3.6 ) Qualified production activities deduction (1.0 ) (3.0 ) (3.2 ) Change in valuation allowance (1.1 ) (2.7 ) (0.3 ) Tax accounting method change (2.7 ) — — Foreign tax credits of repatriated non-U.S. earnings (0.4 ) (7.4 ) — All other, net (1.0 ) (0.8 ) 0.1 Effective tax rate, continuing operations 26.1 % 20.0 % 29.9 % We recognized a net discrete tax benefit of $102 million in 2016 , $258 million in 2015 and $49 million in 2014 , which served to reduce the provision for income taxes for those periods. The benefit in 2016 is principally related to a tax accounting method change granted by the Internal Revenue Service (“IRS”), the release of tax reserves with respect to certain effectively settled tax positions and the recognition of capital loss carryforwards, partially offset by a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation. During 2015, we reorganized certain non-U.S. subsidiaries in order to facilitate a more efficient movement of non-U.S. cash and to support the expansion of key areas for growth internationally. The benefit in 2015 was principally related to excess foreign tax credits attributable to a taxable repatriation of non-U.S. earnings from reorganized entities and the release of tax reserves with respect to certain effectively settled tax positions. The benefit in 2014 was principally related to the reversal of deferred taxes on earnings deemed permanently reinvested and the recognition of capital loss carryforwards. The tax effects of the items recorded as deferred tax assets and liabilities are: Deferred Taxes (in millions) September 30, 2016 2015 Deferred tax assets: Accrued liabilities $ 193 $ 191 Postretirement and other employee benefits 452 407 Tax credit and loss carryforwards 223 245 All other 184 214 Total deferred tax assets 1,052 1,057 Valuation allowance (195 ) (202 ) Total deferred tax assets, net $ 857 $ 855 Deferred tax liabilities: Property, equipment and intangible assets $ (525 ) $ (527 ) Unbilled revenue (127 ) (146 ) Financing obligations (114 ) (115 ) Film & TV production expenditures (429 ) (166 ) Total deferred tax liabilities (1,195 ) (954 ) Deferred taxes, net $ (338 ) $ (99 ) We have recorded valuation allowances for certain deferred tax assets, which are primarily related to capital losses in the U.S. and net operating losses in foreign jurisdictions, as sufficient uncertainty exists regarding the future realization of these assets. We have $178 million of U.S. tax capital loss carryforwards at September 30, 2016 . The utilization of these carryforwards as an available offset to future taxable income is subject to limitations under U.S. federal income tax laws. These carryforwards begin to expire in fiscal year 2018. In addition, we have $324 million of tax losses in various international jurisdictions that are primarily from countries with unlimited carry forward periods and $426 million of tax losses that expire in the fiscal years 2017 through 2036. The pre-valuation allowance deferred tax asset amount related to these U.S. and international tax loss carryforwards is $223 million . In November 2015, the FASB issued new guidance which requires that all deferred taxes be classified as noncurrent in the balance sheet. We adopted the new guidance on a retrospective basis. The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: Deferred Tax Assets / (Liabilities) (in millions) September 30, 2016 2015 Deferred tax assets $ 43 $ 51 Deferred tax liabilities (381 ) (150 ) Deferred taxes, net $ (338 ) $ (99 ) Deferred tax assets are included within Other assets in the Consolidated Balance Sheets. As of September 30, 2016 , we have not made any provision for U.S. income taxes on approximately $2.2 billion of unremitted earnings of our international subsidiaries since these earnings are permanently reinvested outside the U.S. If these earnings were to be remitted in the future, the related U.S. income tax liability may be reduced by any foreign income taxes previously paid on these earnings. Under current U.S. tax laws, repatriating unremitted earnings could result in incremental taxes of 10% - 15% on the repatriated amounts depending on the territory. To the extent that any tax reform legislation were to lower the U.S. federal statutory income tax rate from its current 35% , there could be a corresponding reduction in the estimate of incremental taxes that would result from repatriating unremitted earnings. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: Unrecognized Tax Benefits (in millions) Year Ended September 30, 2016 2015 2014 Balance at beginning of the period $ 179 $ 185 $ 159 Gross additions based on tax positions related to the current year 21 60 25 Gross additions for tax positions of prior years 13 8 10 Gross reductions for tax positions of prior years (23 ) (63 ) (5 ) Settlements (1 ) (1 ) — Expiration of the statute of limitation (25 ) (10 ) (4 ) Balance at end of the period $ 164 $ 179 $ 185 The total amount of unrecognized tax benefits at September 30, 2016 , if recognized, would favorably affect the effective tax rate. As discussed in Note 2, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of the Provision for income taxes in the Consolidated Statements of Earnings. We recognized interest and penalties of $11 million in 2016 , $8 million in 2015 and $10 million in 2014 . We had accruals of $37 million and $35 million related to interest and penalties recorded as a component of Other liabilities – noncurrent in the Consolidated Balance Sheets at September 30, 2016 and 2015 , respectively. We and our subsidiaries file income tax returns with the IRS and various state and international jurisdictions. Tax authorities are conducting examinations of Viacom subsidiaries in various international and state and local jurisdictions, including New York State and New York City. Due to potential resolution of unrecognized tax positions involving multiple tax periods and jurisdictions, it is reasonably possible that a reduction of up to $100 million of unrecognized income tax benefits may occur within 12 months, some of which, depending on the nature of the settlement, may affect our income tax provision and therefore benefit the resulting effective tax rate. The majority of these uncertain tax positions, when recognized in the financial statements, would be recorded in the Consolidated Statements of Earnings as part of the Provision for income taxes . The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive shares: Weighted Average Number of Common Shares Outstanding and Anti-Dilutive Common Shares (in millions) Year Ended September 30, 2016 2015 2014 Weighted average number of common shares outstanding, basic 396.5 402.2 432.1 Dilutive effect of equity awards 1.5 3.8 8.1 Weighted average number of common shares outstanding, diluted 398.0 406.0 440.2 Anti-dilutive common shares 14.7 6.9 1.1 |
Supplemental Cash Flow
Supplemental Cash Flow | 12 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow | SUPPLEMENTAL CASH FLOW Our supplemental cash flow information is as follows: Supplemental Cash Flow Information (in millions) Year Ended September 30, 2016 2015 2014 Cash paid for interest $ 611 $ 636 $ 568 Cash paid for income taxes $ 275 $ 566 $ 1,021 Cash paid for income taxes in the years ended September 30, 2016 and 2015 includes a benefit from the retroactive reenactment of legislation allowing for accelerated tax deductions on certain qualified film and television productions. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and 2015 : Financial Asset (Liability) (in millions) Total Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 September 30, 2016 Marketable securities $ 114 $ 114 $ — $ — Derivatives (13 ) — (13 ) — Total $ 101 $ 114 $ (13 ) $ — September 30, 2015 Marketable securities $ 100 $ 100 $ — $ — Derivatives (10 ) — (10 ) — Total $ 90 $ 100 $ (10 ) $ — The fair value for marketable securities is determined utilizing a market approach based on quoted market prices in active markets at period end. These investments are included within Prepaid and other assets in the Consolidated Balance Sheets. The fair value for derivatives is determined utilizing a market-based approach. We use derivative financial instruments to modify our exposure to market risks from changes in foreign exchange rates and interest rates. We conduct business in various countries outside the U.S., resulting in exposure to movements in foreign exchange rates when translating from the foreign local currency to the U.S. Dollar. We use foreign currency forward contracts to economically hedge anticipated cash flows and foreign currency balances in such currencies as the British Pound, the Euro, the Brazilian Real, the Japanese Yen, the Australian Dollar, the Singapore Dollar and the Canadian Dollar. We also enter into forward contracts to hedge future production costs or programming obligations. We manage the use of foreign exchange derivatives centrally. At September 30, 2016 and 2015 , the notional value of all foreign exchange contracts was $1.149 billion and $1.040 billion , respectively. In 2016 , $874 million related to our foreign currency balances and $275 million related to future production costs. In 2015 , $769 million related to our foreign currency balances and $271 million related to future production costs. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Certain assets, such as intangible assets and investments, are recorded at fair value only if an impairment charge is recognized. In 2016, we recognized an impairment charge of $115 million related to the expected performance of an unreleased film and, as described in Note 14, in 2015, we recognized charges related to the write-down of certain programming and films. The charges reflect the excess of the unamortized cost of the programs and films over their estimated fair value using discounted cash flows, which is a Level 3 valuation technique. In 2014, we recognized an impairment charge of $43 million related to an international trade name at Media Networks . The fair value of the trade name (Level 3) was $28 million calculated utilizing the relief-from-royalty method. Under this method, fair value is calculated as the discounted cash flows based on applying a royalty rate to the revenues derived from the trade name. The royalty rate was derived from market data. |
Reporting Segments
Reporting Segments | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reporting Segments | REPORTING SEGMENTS The following tables set forth our financial performance by reporting segment. Our reporting segments have been determined in accordance with our internal management structure. We manage our operations through two reporting segments: (i) Media Networks and (ii) Filmed Entertainment . Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films exhibition rights by Media Networks . The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the tables below. Our measure of segment performance is adjusted operating income. Adjusted operating income is defined as operating income, before equity-based compensation and certain other items identified as affecting comparability, including restructuring and programming charges, when applicable. Revenues by Segment (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 9,942 $ 10,490 $ 10,171 Filmed Entertainment 2,662 2,883 3,725 Eliminations (116 ) (105 ) (113 ) Total revenues $ 12,488 $ 13,268 $ 13,783 Adjusted Operating Income/(Loss) (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 3,484 $ 4,143 $ 4,271 Filmed Entertainment (445 ) 111 205 Corporate expenses (213 ) (235 ) (227 ) Eliminations 1 2 (2 ) Equity-based compensation (95 ) (101 ) (122 ) Asset impairment — — (43 ) Restructuring and programming charges (206 ) (784 ) — Loss on pension settlement — (24 ) — Operating income 2,526 3,112 4,082 Interest expense, net (616 ) (657 ) (615 ) Equity in net earnings of investee companies 87 102 69 Loss on extinguishment of debt — (18 ) (11 ) Other items, net (7 ) (36 ) (11 ) Earnings from continuing operations before provision for income taxes $ 1,990 $ 2,503 $ 3,514 Depreciation and Amortization Total Assets Depreciation and Amortization and Total Assets (in millions) Year Ended September 30, September 30, 2016 2015 2014 2016 2015 Media Networks $ 166 $ 162 $ 148 $ 16,410 $ 17,088 Filmed Entertainment 50 53 64 6,391 5,914 Corporate/Eliminations 5 7 5 (293 ) (859 ) Total $ 221 $ 222 $ 217 $ 22,508 $ 22,143 Capital Expenditures (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 141 $ 115 $ 85 Filmed Entertainment 28 22 34 Corporate 3 5 4 Total capital expenditures $ 172 $ 142 $ 123 Revenues by Component (in millions) Year Ended September 30, 2016 2015 2014 Advertising $ 4,809 $ 5,007 $ 4,953 Affiliate 4,556 4,908 4,660 Feature film 2,488 2,692 3,488 Ancillary 751 766 795 Eliminations (116 ) (105 ) (113 ) Total revenues $ 12,488 $ 13,268 $ 13,783 Revenues generated from international markets were approximately 25% , 25% and 26% of total consolidated revenues in 2016 , 2015 , and 2014 , respectively. Our principal international businesses are in Europe. The United Kingdom and Germany together accounted for approximately 57% , 55% , and 45% of total revenues in the Europe, Middle East and Africa (“EMEA”) region in 2016 , 2015 , and 2014 , respectively. Revenues* Long-lived Assets** Geographic Information (in millions) Year Ended September 30, September 30, 2016 2015 2014 2016 2015 United States $ 9,308 $ 9,928 $ 10,252 $ 5,180 $ 4,850 EMEA 2,182 2,193 2,046 348 309 All other 998 1,147 1,485 62 54 Total $ 12,488 $ 13,268 $ 13,783 $ 5,590 $ 5,213 *Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. **Excludes deferred tax assets, goodwill, other intangible assets and investments. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS National Amusements, directly and indirectly, is the controlling stockholder of both Viacom and CBS. National Amusements owns shares in Viacom representing approximately 79.8% of the voting interest in Viacom and approximately 10% of Viacom’s combined common stock. National Amusements is controlled by Sumner M. Redstone, our Chairman Emeritus, who is the Chairman and Chief Executive Officer of National Amusements, through the Sumner M. Redstone National Amusements Trust (the “SMR Trust”), which owns shares in National Amusements representing 80% of the voting interest of National Amusements. The shares representing the other 20% of the voting interest of National Amusements are held through a trust controlled by Shari E. Redstone, who is Mr. Redstone’s daughter and the non-executive Vice Chair of Viacom and the President and a member of the Board of Directors of National Amusements. The shares of National Amusements held by the SMR Trust are voted solely by Mr. Redstone until such time as his incapacity or death. Upon Mr. Redstone’s incapacity or death, (1) Ms. Redstone will also become a trustee of the SMR Trust and (2) the shares of National Amusements held by the SMR Trust will be voted by the trustees of the SMR Trust. The current trustees include Mr. Redstone and David R. Andelman, a member of the boards of directors of National Amusements and CBS. The current Board of Directors of National Amusements includes Mr. Redstone, Ms. Redstone and Mr. Andelman. In addition, Mr. Redstone serves as Chairman Emeritus of CBS and Ms. Redstone serves as non-executive Vice Chair of CBS. Transactions between Viacom and related parties are overseen by our Governance and Nominating Committee. On September 29, 2016, our Board of Directors received a letter from National Amusements requesting that our Board explore a potential combination of Viacom and CBS. Subsequently, the Board formed a special committee of independent directors to consider the request from National Amusements and any proposed transaction, and the special committee has hired independent legal and financial advisers. Viacom and National Amusements Related Party Transactions National Amusements licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the years ended September 30, 2016 , 2015 and 2014 , Paramount earned revenues from National Amusements in connection with these licenses in the aggregate amounts of approximately $8 million , $10 million and $15 million , respectively. Viacom and CBS Corporation Related Party Transactions In the ordinary course of business, we are involved in transactions with CBS and its various businesses that result in the recognition of revenues and expenses by us. Transactions with CBS are settled in cash. Our Filmed Entertainment segment earns revenues and recognizes expenses associated with its distribution of certain television products into the home entertainment market on behalf of CBS. Pursuant to its agreement with CBS, Paramount distributes CBS’s library of television and other content on DVD and Blu-ray disc on a worldwide basis. Under the terms of the agreement, Paramount is entitled to retain a fee based on a percentage of gross receipts and is generally responsible for all out-of-pocket costs, which are recoupable prior to any participation amounts paid. Paramount also earns revenues from CBS through leasing of studio space and licensing of certain film products. Our Media Networks segment recognizes advertising revenues and purchases television programming from CBS. The cost of the programming purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated. Both of our segments recognize advertising expenses related to the placement of advertisements with CBS. The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements: CBS Related Party Transactions (in millions) Year Ended September 30, 2016 2015 2014 Consolidated Statements of Earnings Revenues $ 133 $ 169 $ 213 Operating expenses $ 174 $ 284 $ 296 September 30, 2016 2015 Consolidated Balance Sheets Accounts receivable $ 3 $ 5 Accounts payable $ — $ 1 Participants’ share and residuals, current 66 77 Program obligations, current 61 62 Program obligations, noncurrent 32 55 Other liabilities 2 2 Total due to CBS $ 161 $ 197 Other Related Party Transactions In the ordinary course of business, we are involved in related party transactions with equity investees. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows: Other Related Party Transactions (in millions) Year Ended September 30, 2016 2015 2014 Consolidated Statements of Earnings Revenues $ 125 $ 174 $ 196 Operating expenses $ 72 $ 61 $ 71 Selling, general and administrative $ (15 ) $ (15 ) $ (14 ) September 30, 2016 2015 Consolidated Balance Sheets Accounts receivable $ 67 $ 60 Other assets 1 1 Total due from other related parties $ 68 $ 61 Accounts payable $ 8 $ 5 Other liabilities 69 55 Total due to other related parties $ 77 $ 60 All other related party transactions are not material in the periods presented. |
Quarterly Financial Data Unaudi
Quarterly Financial Data Unaudited | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | QUARTERLY FINANCIAL DATA (unaudited): 2016 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,154 $ 3,001 $ 3,107 $ 3,226 $ 12,488 Operating income $ 839 $ 586 $ 769 $ 332 $ 2,526 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 461 $ 309 $ 440 $ 261 $ 1,471 Net earnings (Viacom and noncontrolling interests) $ 461 $ 309 $ 440 $ 263 $ 1,473 Net earnings from continuing operations attributable to Viacom $ 449 $ 303 $ 432 $ 252 $ 1,436 Net earnings attributable to Viacom $ 449 $ 303 $ 432 $ 254 $ 1,438 Basic earnings per share, continuing operations attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.63 $ 3.62 Basic earnings per share attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.64 $ 3.63 Diluted earnings per share, continuing operations attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.63 $ 3.61 Diluted earnings per share attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.64 $ 3.61 The following are certain items identified as affecting comparability in 2016 : • A pre-tax restructuring charge of $206 million ( $131 million after tax) in the fourth quarter in connection with the separation of certain senior executives. • A net discrete tax expense of $21 million in the first quarter and a net discrete tax benefit of $13 million in the third quarter and $110 million in the fourth quarter. Discrete tax items relate to certain events, such as a change in tax law, tax accounting method change or release of reserves that occurred in the respective period. 2015 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,344 $ 3,078 $ 3,058 $ 3,788 $ 13,268 Operating income $ 935 $ 38 $ 1,084 $ 1,055 $ 3,112 Net earnings/(loss) from continuing operations (Viacom and noncontrolling interests) $ 513 $ (48 ) $ 645 $ 892 $ 2,002 Net earnings/(loss) (Viacom and noncontrolling interests) $ 513 $ (48 ) $ 645 $ 892 $ 2,002 Net earnings/(loss) from continuing operations attributable to Viacom $ 500 $ (53 ) $ 591 $ 884 $ 1,922 Net earnings/(loss) attributable to Viacom $ 500 $ (53 ) $ 591 $ 884 $ 1,922 Basic earnings/(loss) per share, continuing operations attributable to Viacom $ 1.22 $ (0.13 ) $ 1.49 $ 2.22 $ 4.78 Basic earnings/(loss) per share attributable to Viacom $ 1.22 $ (0.13 ) $ 1.49 $ 2.22 $ 4.78 Diluted earnings/(loss) per share, continuing operations attributable to Viacom $ 1.20 $ (0.13 ) $ 1.47 $ 2.21 $ 4.73 Diluted earnings/(loss) per share attributable to Viacom $ 1.20 $ (0.13 ) $ 1.47 $ 2.21 $ 4.73 The following are certain items identified as affecting comparability in 2015 : • A pre-tax non-cash charge of $24 million ( $15 million after tax) in the first quarter in connection with the settlement of pension benefits of certain participants of our funded pension plan. • A pre-tax charge of $784 million ( $520 million after tax) in the second quarter reflecting $578 million of programming charges and a $206 million restructuring charge associated with workforce reductions. • A pre-tax charge of $18 million ( $11 million after tax) in the fourth quarter in connection with a debt extinguishment loss on the redemption of $550 million of the total $918 million outstanding of our 6.250% Senior Notes due April 2016. • A net discrete tax expense of $23 million in the first quarter and a net discrete tax benefit of $281 million in the fourth quarter. |
Schedule ll - Disclosure
Schedule ll - Disclosure | 12 Months Ended |
Sep. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts | VIACOM INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions) Beginning of period Additions - expense and other Deductions End of period Year Ended September 30, 2016: Allowance for doubtful accounts $ 37 $ 13 $ (6 ) $ 44 Sales returns and allowances $ 126 $ 218 $ (251 ) $ 93 Deferred tax valuation allowance $ 202 $ 24 $ (31 ) $ 195 Year Ended September 30, 2015: Allowance for doubtful accounts $ 30 $ 10 $ (3 ) $ 37 Sales returns and allowances $ 199 $ 344 $ (417 ) $ 126 Deferred tax valuation allowance $ 308 $ 14 $ (120 ) $ 202 Year Ended September 30, 2014: Allowance for doubtful accounts $ 33 $ 2 $ (5 ) $ 30 Sales returns and allowances $ 261 $ 468 $ (530 ) $ 199 Deferred tax valuation allowance $ 277 $ 54 $ (23 ) $ 308 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Viacom Inc., its subsidiaries and variable interest entities (“VIEs”) where we are considered the primary beneficiary, after elimination of intercompany accounts and transactions. Investments in business entities in which Viacom lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Our proportionate share of net income or loss of the entity is recorded in Equity in net earnings of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation (“CBS”) and National Amusements, Inc. (“National Amusements”) have not been eliminated. |
Business Combinations | Business Combinations We account for business combinations using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, 100% of the assets, liabilities and certain contingent liabilities acquired, including amounts attributed to noncontrolling interests, are recorded at fair value. Any transaction costs are expensed as incurred. |
Foreign Currency Transactions | Foreign Currency Translation and Remeasurement Assets and liabilities of subsidiaries with a functional currency other than the United States (“U.S.”) Dollar are translated into U.S. Dollars using period-end exchange rates, while results of operations are translated at exchange rates during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Substantially all of our foreign operations use the local currency as the functional currency. Subsidiaries that enter into transactions denominated in currencies other than their functional currency will result in remeasurement gains and losses which are reflected within Other items, net in the Consolidated Statements of Earnings. |
Revenue Recognition | Revenue Recognition We recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. This includes the evaluation of multiple element arrangements for bundled advertising sales and content licenses, which involves allocating the consideration among individual deliverables within the bundled arrangement. Advertising Revenues : Revenue from the sale of advertising earned by the Media Networks segment is recognized, net of agency commissions, when the advertisement is aired and the contracted audience rating is met. For advertising sold based on impression guarantees, audience deficiency may result in an obligation to deliver additional units. To the extent we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience rating has been satisfied. Film and Television Production Revenues : Theatrical revenue is recognized from theatrical distribution of motion pictures upon exhibition. For sales of DVDs and Blue-ray discs to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue for transactional video-on-demand and similar arrangements are recognized as the films are exhibited based on end-customer purchases as reported by the distributor. Revenue from the licensing of film and television exhibition rights is recognized upon availability for airing by the licensee. Affiliate Revenues : Affiliate revenues from cable television operators, direct-to-home satellite television operators and mobile networks are recognized by the Media Networks segment as the service is provided to the distributor. Fees associated with arrangements with subscription video-on-demand (“SVOD”) and other over-the-top (“OTT”) services are recognized upon program availability. Ancillary Revenues : Revenue associated with consumer products and brand licensing is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. Revenue from licensing of our programming content for download-to-own and download-to-rent services is recognized when we are notified by the multi-platform retailer that the product has been downloaded and all other revenue recognition criteria are met. Multiple-Element Arrangements : We enter into arrangements under which we perform multiple revenue-generating activities. We must allocate consideration to separate units of account in the arrangement, which could impact the timing of revenue recognition. Advertising revenues are principally generated from the sale of advertising time comprised of multiple commercial units. Each advertising spot comprises a deliverable for accounting purposes. Consideration for these arrangements is allocated among the individual advertising spots based on relative fair value using Viacom-specific prices. SVOD and other OTT arrangements include multiple programs made available to distributors on one or more dates for a fixed fee. Consideration for such arrangements is allocated among the programs based on relative fair value using management’s best estimate considering viewing performance and other factors. Gross versus Net Revenue : We earn and recognize revenues as a distributor on behalf of third parties and through outsourced agency agreements. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of who our customer is in the transaction. To the extent the end consumer is our customer, we act as the principal in a transaction and revenues earned from the end user are reported on a gross basis. This determination involves judgment and is based on an evaluation of whether we have the substantial risks and rewards under the terms of an arrangement. |
Sales Returns, Allowances & Uncollectible Accounts | Revenue Allowances : We record a provision for sales returns and allowances at the time of sale based upon an estimate of future returns, rebates and other incentives (“estimated returns”). In determining estimated returns, we consider numerous sources of qualitative and quantitative evidence including forecasted sales data, customers’ rights of return, units shipped and units remaining at retail, historical return rates for similar product, current economic trends, competitive environment, promotions and sales strategies. Reserves for accounts receivable are based on amounts estimated to be uncollectible. Our reserve for sales returns and allowances was $93 million and $126 million at September 30, 2016 and 2015 , respectively. Our allowance for doubtful accounts was $44 million and $37 million at September 30, 2016 and 2015 , respectively. |
Advertising Expense | Advertising Expense We expense advertising costs as they are incurred. We incurred total advertising expenses of $987 million in 2016 , $748 million in 2015 and $1.020 billion in 2014 . |
Equity-Based Compensation | Equity-Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value received is recognized in earnings over the period during which an employee is required to provide service. |
Provision for Income Taxes | Income Taxes Our provision for income taxes includes the current tax owed on the current period earnings, as well as a deferred provision which reflects the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in existing tax laws and rates, their related interpretations, as well as the uncertainty generated by the prospect of tax legislation in the future may affect the amounts of deferred tax liabilities or the realizability of deferred tax assets. Deferred tax assets and deferred tax liabilities are classified as noncurrent and are included in Other Assets and Deferred tax liabilities, net , respectively, within the Consolidated Balance Sheets. For tax positions we have taken or expect to take in a tax return, we apply a more likely than not assessment (i.e., there is a greater than 50 percent chance) about whether the tax position will be sustained upon examination by the appropriate tax authority with full knowledge of all relevant information. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the position. Interest and penalties related to uncertain tax positions are included in the Provision for income taxes in the Consolidated Statements of Earnings . Liabilities for uncertain tax positions are classified as Other liabilities – noncurrent in the Consolidated Balance Sheets. |
Earnings Per Share | Earnings per Common Share Basic earnings per common share is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the weighted average number of common shares plus the dilutive effect of equity awards based upon the application of the treasury stock method. Anti-dilutive common shares are excluded from the calculation of diluted earnings per common share. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to defined benefit plans, unrealized gains and losses on certain derivative financial instruments, and unrealized gains and losses on investments in equity securities which are publicly traded. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. |
Inventory | Inventory Inventories related to film and television productions (which include direct production costs, production overhead, acquisition costs and development costs) are stated at the lower of amortized cost or fair value. Acquired program rights and obligations are recorded based on the gross amount of the liability when the license period has begun, and when the program is accepted and available for airing. Acquired programming is stated at the lower of unamortized cost or net realizable value. Film, television and acquired programming inventories are included as a component of Inventory, net , in the Consolidated Balance Sheets. Film, television and acquired programming costs, including inventory amortization, development costs, residuals and participations and impairment charges, if any, are included within Operating expenses in the Consolidated Statements of Earnings. Film and Television production costs : We use an individual-film-forecast-computation method to amortize film costs and to accrue estimated liabilities for residuals and participations over the applicable title’s life cycle based upon the ratio of current period to estimated remaining total gross revenues (“ultimate revenues”) for each title. The estimate of ultimate revenues impacts the timing of amortization and accrual of residuals and participations. Our estimate of ultimate revenues for feature films includes revenues from all sources that are estimated to be earned within 10 years from the date of a film’s initial theatrical release. For acquired film libraries, our estimate of ultimate revenues is for a period within 20 years from the date of acquisition. These estimates are periodically reviewed and adjustments, if any, will result in changes to inventory amortization rates, estimated accruals for residuals and participations or possibly the recognition of an impairment charge to operating income. Film development costs that have not been set for production are expensed within three years unless they are abandoned earlier, in which case these projects are written down to their estimated fair value in the period the decision to abandon the project is determined. We have a rigorous greenlight process designed to manage the risk of loss or abandonment. We have entered into film financing arrangements that involve the sale of a partial copyright interest in a film. Amounts received under these arrangements are deducted from the film’s cost. Capitalized original programming costs are amortized utilizing an individual-film-forecast-computation method over the applicable title’s ultimate revenues based on genre and historical experience, beginning with the month of initial exhibition. Original programming costs that have not been greenlit for production are expensed. An impairment charge is recorded when the fair value of the television program is less than the unamortized production cost or abandoned. Acquired programming : Costs incurred in acquiring program rights, including advances, are capitalized and amortized over the license period or projected useful life of the programming, if shorter, commencing upon availability, based on estimated future airings. If initial airings are expected to generate higher revenues an accelerated method of amortization is used. Net realizable value of acquired rights programming is evaluated quarterly by us on a daypart basis, which is defined as an aggregation of programs broadcast during a particular time of day or an aggregation of programs of a similar type. We aggregate similar programming based on the specific demographic targeted by each respective program service. Net realizable value is determined by estimating advertising revenues to be derived from the future airing of the programming within the daypart as well as an allocation of affiliate revenue to the programming. An impairment charge may be necessary if our estimates of future cash flows of similar programming are insufficient or if programming is abandoned. Home entertainment inventory : Home entertainment inventory is valued at the lower of cost or net realizable value. Cost is determined using the average cost method. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is calculated using the straight-line method. Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease. Costs associated with repairs and maintenance of property and equipment are expensed as incurred. |
Impairment | Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the residual difference between the consideration paid for a business and the fair value of the net assets acquired. Goodwill is not amortized, but rather is tested annually for impairment, on August 31 each year, or sooner when circumstances indicate impairment may exist. Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or a business which is one level below that operating segment. Identifiable intangible assets with finite lives are amortized over their estimated useful lives, which range up to 20 years, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate impairment may exist. Amortizable intangible assets and other long-lived assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. |
Investments | Investments Our investments primarily consist of investments in equity. Investments in which we have a significant influence, but not a controlling interest, are accounted for using the equity method. Other investments are carried at fair value, to the extent publicly traded, with unrealized gains and losses recorded in other comprehensive income, or at cost. We monitor our investments for impairment at least annually and make appropriate reductions in carrying values if we determine that an impairment charge is required based on qualitative and quantitative information. Our investments are included in Other assets – noncurrent in the Consolidated Balance Sheets. |
Guarantees | Guarantees At the inception of a guarantee, we recognize a liability for the fair value of an obligation assumed by issuing the guarantee. The related liability is subsequently reduced as utilized or extinguished and increased if there is a probable loss associated with the guarantee which exceeds the value of the recorded liability. |
Treasury Stock | Treasury Stock Treasury stock is accounted for using the cost method. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: • Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Our recurring fair value measures include marketable securities and derivative instruments and our non-recurring fair value measures include goodwill and intangible assets. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivatives and the hedged items are recorded in current earnings as part of Other items, net in the Consolidated Statements of Earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets and subsequently recognized in earnings when the hedged items impact income. The fair value of derivative financial instruments is included in Prepaid and other assets and Other liabilities – current in the Consolidated Balance Sheets. Changes in the fair value of derivatives not designated as hedges and the ineffective portion of cash flow hedges are recorded in earnings. We do not hold or enter into financial instruments for speculative trading purposes. |
Pension and Other Postretirement Benefits | Pension Benefits Our defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded defined benefit pension plan and unfunded pension plans are currently frozen to future benefit accruals. The expense we recognize is determined using certain assumptions, including the expected long-term rate of return and discount rate, among others. We recognize the funded status of our defined benefit plans (other than a multiemployer plan) as an asset or liability in the Consolidated Balance Sheets and recognize the changes in the funded status in the year in which the changes occur through Accumulated other comprehensive loss in the Consolidated Balance Sheets. |
Collaborative Arrangements | Our collaborative arrangements principally relate to contractual arrangements with other studios to jointly finance and distribute theatrical productions (“co-financing arrangements”). A co-financing arrangement typically involves joint ownership of the film asset with each partner responsible for distribution of the film in specific territories. The partners share in the profits and losses of the film in accordance with their respective ownership interest. The amounts recorded in the Consolidated Statements of Earnings related to collaborative arrangements were not material . |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property Plant And Equipment (Table) | Property and Equipment, net (in millions) September 30, Estimated Life (in years) 2016 2015 Land $ 239 $ 238 — Buildings 432 449 up to 40 Capital leases 204 257 up to 15 Equipment and other 1,958 1,871 up to 20 Property and equipment 2,833 2,815 Less: Accumulated depreciation (1,901 ) (1,868 ) Property and equipment, net $ 932 $ 947 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory (in millions) September 30, 2016 2015 Film inventory: Released, net of amortization $ 632 $ 576 Completed, not yet released 128 55 In process and other 993 806 1,753 1,437 Television productions: Released, net of amortization 16 — In process and other 102 8 118 8 Original programming: Released, net of amortization 1,082 1,161 In process and other 706 599 1,788 1,760 Acquired program rights, net of amortization 1,127 1,108 Home entertainment inventory 90 89 Total inventory, net 4,876 4,402 Less current portion 844 786 Noncurrent portion $ 4,032 $ 3,616 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table details the change in goodwill by segment for 2016 and 2015 : Goodwill (in millions) Media Networks Filmed Entertainment Total Balance at September 30, 2014 $ 9,942 $ 1,593 $ 11,535 Dispositions (3 ) — (3 ) Foreign currency translation (92 ) — (92 ) Other 16 — 16 Balance at September 30, 2015 9,863 1,593 11,456 Foreign currency translation (52 ) — (52 ) Other (4 ) — (4 ) Balance at September 30, 2016 $ 9,807 $ 1,593 $ 11,400 |
Intangible Asset Balances | The following table details our intangible asset balances by major asset classes: Intangibles (in millions) September 30, 2016 2015 Finite-lived intangible assets: Trade names $ 182 $ 175 Licenses 127 131 Subscriber agreements 58 54 Other intangible assets 152 152 519 512 Accumulated amortization on finite-lived intangible assets: Trade names (73 ) (63 ) Licenses (13 ) (8 ) Subscriber agreements (47 ) (40 ) Other intangible assets (126 ) (116 ) (259 ) (227 ) Finite-lived intangible assets, net $ 260 $ 285 Indefinite-lived intangible assets 55 55 Total intangibles, net $ 315 $ 340 |
Future Amortization Expense | We expect our aggregate annual amortization expense for existing intangible assets subject to amortization at September 30, 2016 to be as follows for each of the next five fiscal years: Amortization of Intangibles (in millions) 2017 2018 2019 2020 2021 Amortization expense $28 $26 $23 $21 $20 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Balances | Our total debt consists of the following: Debt (in millions) September 30, 2016 2015 Senior Notes and Debentures: Senior notes due April 2016, 6.250% $ — $ 368 Senior notes due December 2016, 2.500% 400 399 Senior notes due April 2017, 3.500% 499 498 Senior notes due October 2017, 6.125% 499 499 Senior notes due September 2018, 2.500% 498 497 Senior notes due April 2019, 2.200% 399 398 Senior notes due September 2019, 5.625% 550 550 Senior notes due December 2019, 2.750% 399 398 Senior notes due March 2021, 4.500% 495 494 Senior notes due December 2021, 3.875% 593 592 Senior notes due June 2022, 3.125% 296 296 Senior notes due March 2023, 3.250% 297 297 Senior notes due September 2023, 4.250% 1,235 1,233 Senior notes due April 2024, 3.875% 544 543 Senior debentures due December 2034, 4.850% 593 592 Senior debentures due April 2036, 6.875% 1,066 1,066 Senior debentures due October 2037, 6.750% 75 75 Senior debentures due February 2042, 4.500% 244 244 Senior debentures due March 2043, 4.375% 1,091 1,085 Senior debentures due June 2043, 4.875% 247 246 Senior debentures due September 2043, 5.850% 1,228 1,228 Senior debentures due April 2044, 5.250% 545 544 Capital lease and other obligations 120 143 Total debt 11,913 12,285 Less current portion 17 18 Noncurrent portion $ 11,896 $ 12,267 |
Scheduled Maturities of Debt | Our scheduled maturities of debt at face value for each of the next five fiscal years and thereafter, excluding capital leases, outstanding at September 30, 2016 are as follows: Maturities of Debt Excluding Capital Leases (in millions) Year 1 Year 2 Year 3 Year 4 Year 5 After 5 Years Debt $900 $1,000 $950 $400 $500 $8,502 |
Pension and Other Postretirem36
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Change in Benefit Obligation | The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plans utilizing a measurement date as of September 30, 2016 and 2015 , respectively: Change in Benefit Obligation (in millions) Year Ended 2016 2015 Benefit obligation, beginning of period $ 937 $ 1,060 Interest cost 35 43 Actuarial (gain)/loss 86 (38 ) Benefits paid (44 ) (128 ) Benefit obligation, end of period $ 1,014 $ 937 |
Change in Plan Assets | Change in Plan Assets (in millions) Year Ended 2016 2015 Fair value of plan assets, beginning of period $ 493 $ 656 Actual return on plan assets 47 (44 ) Employer contributions 14 9 Benefits paid (44 ) (128 ) Fair value of plan assets, end of period $ 510 $ 493 |
Funded Status | Funded status (in millions) September 30, 2016 2015 Funded status $ (504 ) $ (444 ) |
Accumulated Benefit Obligation | The accumulated benefit obligation includes no assumption about future compensation levels since our plans are frozen. Included in the change in benefit obligation tables above are the following funded and unfunded plans with an accumulated benefit obligation equal to or in excess of plan assets at the end of the fiscal year. Funded Plans Unfunded Plans Total Plans Accumulated Benefit Obligation (in millions) September 30, September 30, September 30, 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 684 $ 635 $ 330 $ 302 $ 1,014 $ 937 Fair value of plan assets 510 493 — — 510 493 Funded status $ (174 ) $ (142 ) $ (330 ) $ (302 ) $ (504 ) $ (444 ) |
Net Periodic Benefit Costs | Our net periodic benefit cost under Viacom’s pension plans consists of the following: Net Periodic Benefit Costs (in millions) Year Ended September 30, 2016 2015 2014 Interest cost $ 35 $ 43 $ 46 Expected return on plan assets (38 ) (46 ) (50 ) Recognized actuarial loss 5 8 2 Loss on pension settlement — 24 — Net periodic benefit costs $ 2 $ 29 $ (2 ) |
Unrecognized Benefit Cost | The items reflected in Accumulated other comprehensive loss in the Consolidated Balance Sheets and not yet recognized as a component of net periodic benefit cost are: Unrecognized Benefit Cost (in millions) Year Ended 2016 2015 Unrecognized actuarial loss $ 363 $ 291 |
Amounts Recognized in Other Comprehensive Income | The amounts recognized in other comprehensive income during the year are: Other Comprehensive Income (in millions) Year Ended Net actuarial loss $ 77 Recognized actuarial loss (5 ) Total pre-tax loss $ 72 |
Key Assumptions | Year Ended Key Assumptions 2016 2015 Weighted-average assumptions - benefit obligations Discount rate 3.92 % 4.50 % Weighted-average assumptions - net periodic costs Discount rate 3.79 % 4.37 % Expected long-term return on plan assets 7.50 % 8.00 % |
Asset Allocations of Funded Pension Plan | The percentage of asset allocations of our funded pension plan at September 30, 2016 and 2015 , by asset category were as follows: September 30, Asset Allocations of Funded Pension Plan 2016 2015 Equity securities 64 % 63 % Debt securities 32 34 Cash and cash equivalents 4 3 Total 100 % 100 % |
Fair Value of Plan Assets at Period End | The following table sets forth the plan’s assets at fair value as of September 30, 2016 and 2015 . For investments held at the end of the reporting period that are measured at fair value on a recurring basis, there were no transfers between levels from 2015 to 2016 . The funded pension plan has no investments classified within level 3 of the valuation hierarchy. Total Level 1 Level 2 Fair Value of Plan Assets (in millions) September 30, September 30, September 30, 2016 2015 2016 2015 2016 2015 Cash and Cash Equivalents (1) $ 20 $ 15 $ — $ — $ 20 $ 15 Equity Securities Common and preferred stock 10 33 10 33 — — World funds (2) 286 230 — — 286 230 Emerging markets funds (2) 32 46 — — 32 46 Debt Securities U.S. treasury securities 14 10 — — 14 10 Municipal & government issued bonds 1 1 — — 1 1 Corporate bonds 40 46 — — 40 46 Mortgage-backed & asset-backed securities 30 39 — — 30 39 Emerging markets funds (3) 19 19 19 19 — — Multi-strategy funds (4) 58 54 — — 58 54 Total $ 510 $ 493 $ 29 $ 52 $ 481 $ 441 (1) Assets categorized as Level 2 reflect investments in money market funds. (2) Assets reflect common/collective trust funds. (3) Assets reflect mutual funds. (4) Reflects investments in common/collective trust funds and limited partnerships |
Future Benefit Payments | The estimated future benefit payments for the next ten fiscal years are as follows: Future Benefit Payments (in millions) 2017 2018 2019 2020 2021 2022-2026 Pension benefits $36 $37 $40 $43 $44 $266 |
Redeemable NCI (Tables)
Redeemable NCI (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The activity reflected within redeemable noncontrolling interest for the fiscal years 2016 , 2015 and 2014 is presented below. Redeemable Noncontrolling Interest (in millions) Year Ended September 30, 2016 2015 2014 Beginning balance $ 219 $ 216 $ 200 Net earnings 17 15 20 Distributions (19 ) (20 ) (17 ) Translation adjustment (38 ) (10 ) 5 Redemption value adjustment 32 18 8 Ending balance $ 211 $ 219 $ 216 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Noncancelable Lease Commitments | At September 30, 2016 , minimum rental payments under noncancelable leases by fiscal year are as follows: Noncancelable Lease Commitments (in millions) Capital Operating 2017 $ 21 $ 228 2018 21 203 2019 22 100 2020 9 144 2021 6 131 2022 and thereafter 1 962 Total minimum payments $ 80 $ 1,768 Amounts representing interest (8 ) Total $ 72 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss Table | The components of Accumulated other comprehensive loss are as follows: Accumulated Other Comprehensive Loss (in millions) September 30, 2016 2015 2014 Foreign currency translation adjustments $ (435 ) $ (341 ) $ (106 ) Defined benefit pension plans (258 ) (193 ) (186 ) Cash flow hedges 1 — (1 ) Total $ (692 ) $ (534 ) $ (293 ) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Cost Recognized in Earnings Table | Presented below is a summary of the compensation cost we recognized in the accompanying Consolidated Statements of Earnings: Equity-Based Compensation Expense (in millions) Year Ended September 30, 2016 2015 2014 Recognized in earnings: Stock options $ 29 $ 33 $ 37 Share units 66 68 85 Compensation cost included in SG&A expense 95 101 122 Compensation cost included in restructuring charge* 68 — — Total compensation cost in earnings $ 163 $ 101 $ 122 Tax benefit recognized $ 58 $ 35 $ 40 Capitalized equity-based compensation expense $ 4 $ 5 $ 6 * See Note 14 for additional information regarding the restructuring charge. |
Weighted Average Fair Value of Awards and Assumptions Table | Below are the weighted average fair value of awards granted in the periods presented and the weighted average of the applicable assumptions used to value stock options at grant date. Year Ended September 30, Key Assumptions 2016 2015 2014 Weighted average fair value of grants $ 8.65 $ 11.34 $ 16.52 Weighted average assumptions: Expected stock price volatility 36.1 % 23.8 % 25.0 % Expected term of options (in years) 5.4 4.8 4.6 Risk-free interest rate 1.5 % 1.6 % 1.5 % Expected dividend yield 4.1 % 2.4 % 1.6 % |
Stock Options Transactions Table | The following table summarizes information about our stock option transactions: Year Ended Year Ended Year Ended Stock Options (number of options in thousands) Options Weighted average exercise price Options Weighted average exercise price Options Weighted average exercise price Outstanding at the beginning of the period 17,771.3 $ 53.43 19,058.5 $ 47.67 21,441.9 $ 42.85 Granted 3,765.7 38.86 3,303.1 66.35 2,040.7 84.46 Exercised (1,242.5 ) 35.24 (4,097.4 ) 35.53 (4,233.2 ) 40.71 Forfeited or expired (698.3 ) 60.26 (492.9 ) 66.19 (190.9 ) 54.21 Outstanding at the end of the period 19,596.2 $ 51.54 17,771.3 $ 53.43 19,058.5 $ 47.67 Exercisable at the end of the period 12,191.2 $ 49.49 11,109.1 $ 44.83 12,656.1 $ 38.75 |
Stock Option Exercises Table | The following table summarizes information relating to stock option exercises during the periods presented: Year Ended September 30, Stock Option Exercises (in millions) 2016 2015 2014 Proceeds from stock option exercises $ 11 $ 146 $ 173 Intrinsic value $ 7 $ 153 $ 182 Excess tax benefit/(shortfall) $ (3 ) $ 39 $ 53 |
Share Units Table | The following table summarizes activity relating to our share unit transactions: Year Ended Year Ended Year Ended Share units (number of shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested at the beginning of the period 2,645.1 $ 75.68 3,138.3 $ 67.35 4,311.4 $ 53.54 Granted* 1,701.1 44.75 1,430.2 71.22 1,570.8 81.86 Vested (1,144.8 ) 63.83 (1,644.8 ) 57.18 (2,593.8 ) 53.88 Forfeited (693.8 ) 83.12 (278.6 ) 68.17 (150.1 ) 55.20 Unvested at the end of the period 2,507.6 $ 58.05 2,645.1 $ 75.68 3,138.3 $ 67.35 * Grant activity includes 0.4 million , 0.4 million and 0.2 million of performance-based share units at target for 2016 , 2015 and 2014 , respectively. |
Restructuring and Related Costs
Restructuring and Related Costs (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserve Rollforward (Table) | Our restructuring liability for the workforce reductions in 2015 by reporting segment is as follows: (in millions) Media Networks Filmed Entertainment Corporate Total September 30, 2015 $ 87 $ 51 $ 9 $ 147 Severance payments (48 ) (28 ) (4 ) (80 ) Revisions to initial estimates (3 ) (11 ) (1 ) (15 ) September 30, 2016 $ 36 $ 12 $ 4 $ 52 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Pre-tax Earnings from Continuing Operations | Earnings from continuing operations before provision for income taxes consist of the following: Earnings from Continuing Operations before Provision for Income Taxes (in millions) Year Ended September 30, 2016 2015 2014 United States $ 1,479 $ 2,047 $ 2,924 International 511 456 590 Pre-tax earnings from continuing operations $ 1,990 $ 2,503 $ 3,514 |
Provision for Income Taxes from Continuing Operations | The provision for income taxes from continuing operations consists of the following: Provision for Income Taxes from Continuing Operations (in millions) Year Ended September 30, 2016 2015 2014 Current provision for income taxes: Federal $ 112 $ 404 $ 1,049 State and local 31 65 122 International 122 114 169 Total current provision for income taxes 265 583 1,340 Deferred provision for income taxes 254 (82 ) (290 ) Provision for income taxes $ 519 $ 501 $ 1,050 |
Effective Tax Rate | A reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate is as follows: Year Ended September 30, Effective Tax Rate 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal benefit 1.7 1.8 1.9 Effect of international operations (4.4 ) (2.9 ) (3.6 ) Qualified production activities deduction (1.0 ) (3.0 ) (3.2 ) Change in valuation allowance (1.1 ) (2.7 ) (0.3 ) Tax accounting method change (2.7 ) — — Foreign tax credits of repatriated non-U.S. earnings (0.4 ) (7.4 ) — All other, net (1.0 ) (0.8 ) 0.1 Effective tax rate, continuing operations 26.1 % 20.0 % 29.9 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the items recorded as deferred tax assets and liabilities are: Deferred Taxes (in millions) September 30, 2016 2015 Deferred tax assets: Accrued liabilities $ 193 $ 191 Postretirement and other employee benefits 452 407 Tax credit and loss carryforwards 223 245 All other 184 214 Total deferred tax assets 1,052 1,057 Valuation allowance (195 ) (202 ) Total deferred tax assets, net $ 857 $ 855 Deferred tax liabilities: Property, equipment and intangible assets $ (525 ) $ (527 ) Unbilled revenue (127 ) (146 ) Financing obligations (114 ) (115 ) Film & TV production expenditures (429 ) (166 ) Total deferred tax liabilities (1,195 ) (954 ) Deferred taxes, net $ (338 ) $ (99 ) The net deferred tax assets and deferred tax liabilities included in the Consolidated Balance Sheets were as follows: Deferred Tax Assets / (Liabilities) (in millions) September 30, 2016 2015 Deferred tax assets $ 43 $ 51 Deferred tax liabilities (381 ) (150 ) Deferred taxes, net $ (338 ) $ (99 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: Unrecognized Tax Benefits (in millions) Year Ended September 30, 2016 2015 2014 Balance at beginning of the period $ 179 $ 185 $ 159 Gross additions based on tax positions related to the current year 21 60 25 Gross additions for tax positions of prior years 13 8 10 Gross reductions for tax positions of prior years (23 ) (63 ) (5 ) Settlements (1 ) (1 ) — Expiration of the statute of limitation (25 ) (10 ) (4 ) Balance at end of the period $ 164 $ 179 $ 185 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Common Shares Outstanding and Anti-dilutive common shares | The following table sets forth the weighted average number of common shares outstanding used in determining basic and diluted earnings per common share and anti-dilutive shares: Weighted Average Number of Common Shares Outstanding and Anti-Dilutive Common Shares (in millions) Year Ended September 30, 2016 2015 2014 Weighted average number of common shares outstanding, basic 396.5 402.2 432.1 Dilutive effect of equity awards 1.5 3.8 8.1 Weighted average number of common shares outstanding, diluted 398.0 406.0 440.2 Anti-dilutive common shares 14.7 6.9 1.1 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information (Tables) | Our supplemental cash flow information is as follows: Supplemental Cash Flow Information (in millions) Year Ended September 30, 2016 2015 2014 Cash paid for interest $ 611 $ 636 $ 568 Cash paid for income taxes $ 275 $ 566 $ 1,021 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Financial Asset (Liability) | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and 2015 : Financial Asset (Liability) (in millions) Total Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 September 30, 2016 Marketable securities $ 114 $ 114 $ — $ — Derivatives (13 ) — (13 ) — Total $ 101 $ 114 $ (13 ) $ — September 30, 2015 Marketable securities $ 100 $ 100 $ — $ — Derivatives (10 ) — (10 ) — Total $ 90 $ 100 $ (10 ) $ — |
Reporting Segments (Tables)
Reporting Segments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Revenues by Segment (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 9,942 $ 10,490 $ 10,171 Filmed Entertainment 2,662 2,883 3,725 Eliminations (116 ) (105 ) (113 ) Total revenues $ 12,488 $ 13,268 $ 13,783 |
Adjusted Operating Income (Loss) | Adjusted Operating Income/(Loss) (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 3,484 $ 4,143 $ 4,271 Filmed Entertainment (445 ) 111 205 Corporate expenses (213 ) (235 ) (227 ) Eliminations 1 2 (2 ) Equity-based compensation (95 ) (101 ) (122 ) Asset impairment — — (43 ) Restructuring and programming charges (206 ) (784 ) — Loss on pension settlement — (24 ) — Operating income 2,526 3,112 4,082 Interest expense, net (616 ) (657 ) (615 ) Equity in net earnings of investee companies 87 102 69 Loss on extinguishment of debt — (18 ) (11 ) Other items, net (7 ) (36 ) (11 ) Earnings from continuing operations before provision for income taxes $ 1,990 $ 2,503 $ 3,514 |
Depreciation and Amortization and Total Assets | Depreciation and Amortization Total Assets Depreciation and Amortization and Total Assets (in millions) Year Ended September 30, September 30, 2016 2015 2014 2016 2015 Media Networks $ 166 $ 162 $ 148 $ 16,410 $ 17,088 Filmed Entertainment 50 53 64 6,391 5,914 Corporate/Eliminations 5 7 5 (293 ) (859 ) Total $ 221 $ 222 $ 217 $ 22,508 $ 22,143 |
Capital Expenditures | Capital Expenditures (in millions) Year Ended September 30, 2016 2015 2014 Media Networks $ 141 $ 115 $ 85 Filmed Entertainment 28 22 34 Corporate 3 5 4 Total capital expenditures $ 172 $ 142 $ 123 |
Revenues by Component | Revenues by Component (in millions) Year Ended September 30, 2016 2015 2014 Advertising $ 4,809 $ 5,007 $ 4,953 Affiliate 4,556 4,908 4,660 Feature film 2,488 2,692 3,488 Ancillary 751 766 795 Eliminations (116 ) (105 ) (113 ) Total revenues $ 12,488 $ 13,268 $ 13,783 |
Schedule of Revenue and Long Lived Assets Attributed to Foreign Countries by Geographical Area | Revenues* Long-lived Assets** Geographic Information (in millions) Year Ended September 30, September 30, 2016 2015 2014 2016 2015 United States $ 9,308 $ 9,928 $ 10,252 $ 5,180 $ 4,850 EMEA 2,182 2,193 2,046 348 309 All other 998 1,147 1,485 62 54 Total $ 12,488 $ 13,268 $ 13,783 $ 5,590 $ 5,213 *Revenue classifications are based on customers’ locations. Transactions within Viacom between geographic areas are not significant. **Excludes deferred tax assets, goodwill, other intangible assets and investments. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties Transactions (Tables) | The following table summarizes the transactions with CBS as included in our Consolidated Financial Statements: CBS Related Party Transactions (in millions) Year Ended September 30, 2016 2015 2014 Consolidated Statements of Earnings Revenues $ 133 $ 169 $ 213 Operating expenses $ 174 $ 284 $ 296 September 30, 2016 2015 Consolidated Balance Sheets Accounts receivable $ 3 $ 5 Accounts payable $ — $ 1 Participants’ share and residuals, current 66 77 Program obligations, current 61 62 Program obligations, noncurrent 32 55 Other liabilities 2 2 Total due to CBS $ 161 $ 197 These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content, distribution of films and provision of certain administrative support services, for which the impact on our Consolidated Financial Statements is as follows: Other Related Party Transactions (in millions) Year Ended September 30, 2016 2015 2014 Consolidated Statements of Earnings Revenues $ 125 $ 174 $ 196 Operating expenses $ 72 $ 61 $ 71 Selling, general and administrative $ (15 ) $ (15 ) $ (14 ) September 30, 2016 2015 Consolidated Balance Sheets Accounts receivable $ 67 $ 60 Other assets 1 1 Total due from other related parties $ 68 $ 61 Accounts payable $ 8 $ 5 Other liabilities 69 55 Total due to other related parties $ 77 $ 60 |
Quarterly Financial Data Unau48
Quarterly Financial Data Unaudited (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 2016 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,154 $ 3,001 $ 3,107 $ 3,226 $ 12,488 Operating income $ 839 $ 586 $ 769 $ 332 $ 2,526 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 461 $ 309 $ 440 $ 261 $ 1,471 Net earnings (Viacom and noncontrolling interests) $ 461 $ 309 $ 440 $ 263 $ 1,473 Net earnings from continuing operations attributable to Viacom $ 449 $ 303 $ 432 $ 252 $ 1,436 Net earnings attributable to Viacom $ 449 $ 303 $ 432 $ 254 $ 1,438 Basic earnings per share, continuing operations attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.63 $ 3.62 Basic earnings per share attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.64 $ 3.63 Diluted earnings per share, continuing operations attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.63 $ 3.61 Diluted earnings per share attributable to Viacom $ 1.13 $ 0.76 $ 1.09 $ 0.64 $ 3.61 2015 (in millions, except per share information) First Second Third Fourth Year Ended Revenues $ 3,344 $ 3,078 $ 3,058 $ 3,788 $ 13,268 Operating income $ 935 $ 38 $ 1,084 $ 1,055 $ 3,112 Net earnings/(loss) from continuing operations (Viacom and noncontrolling interests) $ 513 $ (48 ) $ 645 $ 892 $ 2,002 Net earnings/(loss) (Viacom and noncontrolling interests) $ 513 $ (48 ) $ 645 $ 892 $ 2,002 Net earnings/(loss) from continuing operations attributable to Viacom $ 500 $ (53 ) $ 591 $ 884 $ 1,922 Net earnings/(loss) attributable to Viacom $ 500 $ (53 ) $ 591 $ 884 $ 1,922 Basic earnings/(loss) per share, continuing operations attributable to Viacom $ 1.22 $ (0.13 ) $ 1.49 $ 2.22 $ 4.78 Basic earnings/(loss) per share attributable to Viacom $ 1.22 $ (0.13 ) $ 1.49 $ 2.22 $ 4.78 Diluted earnings/(loss) per share, continuing operations attributable to Viacom $ 1.20 $ (0.13 ) $ 1.47 $ 2.21 $ 4.73 Diluted earnings/(loss) per share attributable to Viacom $ 1.20 $ (0.13 ) $ 1.47 $ 2.21 $ 4.73 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Sep. 30, 2016segmentcountry | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Countries in which Entity Operates | country | 180 |
Number of Operating Segments | segment | 2 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | |||
Percentage of acquired business recorded at fair value | 100.00% | ||
Reserve for sales returns and allowances | $ 93 | $ 126 | |
Allowance for doubtful accounts | 44 | 37 | |
Advertising expense incurred by the Company | $ 987 | $ 748 | $ 1,020 |
Estimated number of years film inventory earned | 10 years | ||
Estimate in years of ultimate revenue of acquired film library | 20 years | ||
Number of years film development costs expensed | 3 years | ||
Finite-lived intangible asset useful life | 20 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Receivables [Abstract] | ||
Noncurrent trade receivables | $ 547 | $ 577 |
Investments (Details)
Investments (Details) $ in Millions, ₨ in Billions | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2015INR (₨) | |
Business Acquisition [Line Items] | ||||
Value of equity method investments | $ 542 | $ 434 | ||
Purchase Price Equity Investment | $ 149 | ₨ 9.4 | ||
Finite-lived intangible asset useful life | 20 years | |||
Value of cost investments | $ 96 | 71 | ||
Consolidated VIE assets | 190 | 207 | ||
Consolidated VIE liabilities | $ 57 | $ 54 | ||
Viacom 18 | ||||
Business Acquisition [Line Items] | ||||
Equity interest in investees | 50.00% | |||
PRISM | ||||
Business Acquisition [Line Items] | ||||
Equity interest in investees | 50.00% | |||
EPIX | ||||
Business Acquisition [Line Items] | ||||
Equity interest in investees | 50.00% | |||
Other Intangible Assets | Minimum | PRISM | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset useful life | 7 years | |||
Other Intangible Assets | Maximum | PRISM | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset useful life | 20 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property Plant And Equipment [Line Items] | |||
Property and equipment gross | $ 2,833 | $ 2,815 | |
Less: Accumulated depreciation | (1,901) | (1,868) | |
Property and equipment, net | 932 | 947 | |
Depreciation expense | 188 | 188 | $ 177 |
Amortization of capital leases | 18 | 20 | $ 21 |
Accumulated amortization of capital leases | 147 | 171 | |
Land | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment gross | 239 | 238 | |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment gross | $ 432 | 449 | |
Property, Plant and Equipment, Useful Life | 40 years | ||
Capital leases | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment gross | $ 204 | 257 | |
Property, Plant and Equipment, Useful Life | 15 years | ||
Equipment and other | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment gross | $ 1,958 | $ 1,871 | |
Property, Plant and Equipment, Useful Life | 20 years |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Film inventory: | ||
Released, net of amortization | $ 632 | $ 576 |
Completed, not yet released | 128 | 55 |
In process and other | 993 | 806 |
Television productions: | ||
Released, net of amortization | 16 | 0 |
In process and other | 102 | 8 |
Original programming: | ||
Released, net of amortization | 1,082 | 1,161 |
In process and other | 706 | 599 |
Acquired program rights, net of amortization | 1,127 | 1,108 |
Home entertainment inventory | 90 | 89 |
Total inventory, net | 4,876 | 4,402 |
Less current portion | 844 | 786 |
Noncurrent portion | 4,032 | 3,616 |
Amount of film and television costs expected to be amortized in following fiscal year | $ 1,500 | |
Percentage of amortization of unamortized released film and television costs within 3 years | 90.00% | |
Unamortized inventory in years | 3 years | |
Film Inventory | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | $ 1,753 | 1,437 |
Television Productions | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | 118 | 8 |
Original Programming | ||
Inventory Net [Line Items] | ||
Total Inventory, Net Of Amortization | $ 1,788 | $ 1,760 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 11,456 | $ 11,535 |
Dispositions | (3) | |
Foreign currency translation | (52) | (92) |
Other | (4) | 16 |
Ending balance | 11,400 | 11,456 |
Media Networks | ||
Goodwill [Roll Forward] | ||
Beginning balance | 9,863 | 9,942 |
Dispositions | (3) | |
Foreign currency translation | (52) | (92) |
Other | (4) | 16 |
Ending balance | 9,807 | 9,863 |
Filmed Entertainment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,593 | 1,593 |
Dispositions | 0 | |
Foreign currency translation | 0 | 0 |
Other | 0 | 0 |
Ending balance | $ 1,593 | $ 1,593 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | $ 519 | $ 512 |
Finite lived intangible assets - accumulated amortization | (259) | (227) |
Finite-lived intangible assets, net | 260 | 285 |
Indefinite-lived intangible assets | 55 | 55 |
Total intangibles, net | 315 | 340 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 182 | 175 |
Finite lived intangible assets - accumulated amortization | (73) | (63) |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 127 | 131 |
Finite lived intangible assets - accumulated amortization | (13) | (8) |
Subscriber agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 58 | 54 |
Finite lived intangible assets - accumulated amortization | (47) | (40) |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets - gross | 152 | 152 |
Finite lived intangible assets - accumulated amortization | $ (126) | $ (116) |
Goodwill and Intangibles - Amor
Goodwill and Intangibles - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 33 | $ 34 | $ 40 |
2,017 | 28 | ||
2,018 | 26 | ||
2,019 | 23 | ||
2,020 | 21 | ||
2,021 | $ 20 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||
Unamortized net discount related to senior notes and debentures | $ 478,000,000 | $ 459,000,000 |
Fair Value of Company's senior notes and debentures | 12,000,000,000 | $ 12,800,000,000 |
Interest coverage credit facility | 3.0x | |
Commercial Paper, at Carrying Value | 0 | $ 0 |
Senior notes due April 2016, 6.250% | ||
Debt Instrument [Line Items] | ||
Early Repayment of Senior Debt | $ 550,000,000 | $ 368,000,000 |
Coupon rate | 6.25% | 6.25% |
Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 0 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 | |
Debt Instrument Margin Rate, Percentage Rate, Range Minimum | 1.25% | |
Debt Instrument Margin Rate, Percentage Rate, Range Maximum | 2.25% | |
Line of Credit Facility, Covenant Terms | The credit facility has one principal financial covenant that requires our interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which we met as of September 30, 2016. |
Debt - Debt Schedule (Details)
Debt - Debt Schedule (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 29, 2015 |
Debt Instrument [Line Items] | |||
Commercial Paper, at Carrying Value | $ 0 | $ 0 | |
Capital lease and other obligations | 120,000,000 | 143,000,000 | |
Total debt | 11,913,000,000 | 12,285,000,000 | |
Less current portion | 17,000,000 | 18,000,000 | |
Noncurrent portion | 11,896,000,000 | 12,267,000,000 | |
Senior notes due April 2016, 6.250% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 368,000,000 | $ 918,000,000 |
Coupon rate | 6.25% | 6.25% | |
Senior notes due December 2016, 2.500% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 400,000,000 | $ 399,000,000 | |
Coupon rate | 2.50% | ||
Senior notes due April 2017, 3.500% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 499,000,000 | 498,000,000 | |
Coupon rate | 3.50% | ||
Senior notes due October 2017, 6.125% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 499,000,000 | 499,000,000 | |
Coupon rate | 6.125% | ||
Senior notes due September 2018, 2.500% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 498,000,000 | 497,000,000 | |
Coupon rate | 2.50% | ||
Senior notes due April 2019, 2.200% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 399,000,000 | 398,000,000 | |
Coupon rate | 2.20% | ||
Senior notes due September 2019, 5.625% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 550,000,000 | 550,000,000 | |
Coupon rate | 5.625% | ||
Senior notes due December 2019, 2.750% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 399,000,000 | 398,000,000 | |
Coupon rate | 2.75% | ||
Senior notes due March 2021, 4.500% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 495,000,000 | 494,000,000 | |
Coupon rate | 4.50% | ||
Senior notes due December 2021, 3.875% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 593,000,000 | 592,000,000 | |
Coupon rate | 3.875% | ||
Senior notes due June 2022, 3.125% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 296,000,000 | 296,000,000 | |
Coupon rate | 3.125% | ||
Senior notes due March 2023, 3.250% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 297,000,000 | 297,000,000 | |
Coupon rate | 3.25% | ||
Senior notes due September 2023, 4.250% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,235,000,000 | 1,233,000,000 | |
Coupon rate | 4.25% | ||
Senior notes due April 2024, 3.875% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 544,000,000 | 543,000,000 | |
Coupon rate | 3.875% | ||
Senior debentures due December 2034, 4.850% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 593,000,000 | 592,000,000 | |
Coupon rate | 4.85% | ||
Senior debentures due April 2036, 6.875% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,066,000,000 | 1,066,000,000 | |
Coupon rate | 6.875% | ||
Senior debentures due October 2037, 6.750% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 75,000,000 | 75,000,000 | |
Coupon rate | 6.75% | ||
Senior debentures due February 2042, 4.500% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 244,000,000 | 244,000,000 | |
Coupon rate | 4.50% | ||
Senior debentures due March 2043, 4.375% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,091,000,000 | 1,085,000,000 | |
Coupon rate | 4.375% | ||
Senior debentures due June 2043, 4.875% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 247,000,000 | 246,000,000 | |
Coupon rate | 4.875% | ||
Senior debentures due September 2043, 5.850% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,228,000,000 | 1,228,000,000 | |
Coupon rate | 5.85% | ||
Senior debentures due April 2044, 5.250% | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 545,000,000 | $ 544,000,000 | |
Coupon rate | 5.25% |
Debt - Maturities of Debt Exclu
Debt - Maturities of Debt Excluding Capital Leases (Details) $ in Millions | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Year 1 | $ 900 |
Year 2 | 1,000 |
Year 3 | 950 |
Year 4 | 400 |
Year 5 | 500 |
After 5 Years | $ 8,502 |
Debt - Subsequent Events (Detai
Debt - Subsequent Events (Details) - USD ($) $ in Millions | Nov. 14, 2016 | Oct. 04, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Senior notes due April 2017, 3.500% | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 499 | $ 498 | ||
Coupon rate | 3.50% | |||
Senior notes due December 2016, 2.500% | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 400 | $ 399 | ||
Coupon rate | 2.50% | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 1,300 | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | |||
Total Senior Debt Issued, Net | $ 1,285 | |||
Subsequent Event | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | |||
Subsequent Event | Senior notes due February 2022, 2.250% | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 400 | |||
Coupon rate | 2.25% | |||
Rate Premium Discount | 99.692% | |||
Subsequent Event | Senior notes due April 2017, 3.500% | ||||
Debt Instrument [Line Items] | ||||
Early Repayment of Senior Debt | $ 500 | |||
Subsequent Event | Senior notes due October 2026, 3.450% | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 900 | |||
Coupon rate | 3.45% | |||
Rate Premium Discount | 99.481% | |||
Subsequent Event | Senior notes due December 2016, 2.500% | ||||
Debt Instrument [Line Items] | ||||
Early Repayment of Senior Debt | $ 400 |
Pension and Other Postretirem62
Pension and Other Postretirement Benefits (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Viacom Class B Percentage Of Plan Assets Fair Values | 2.00% | 2.00% | |
401K Matching Contribution | $ 44 | $ 46 | $ 47 |
Certified Zone Status | Green | ||
Funded Status of Multiemployer Plans | At least 80 percent | ||
Number Of Listings On Form 5500 | 2 | ||
Number Of Green Filed Zone Statuses | 2 | ||
Equity securities | |||
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Defined Benefit Plan, Minimum Range | 55.00% | ||
Defined Benefit Plan, maximum range | 75.00% | ||
Debt securities | |||
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Defined Benefit Plan, Minimum Range | 25.00% | ||
Defined Benefit Plan, maximum range | 40.00% | ||
Cash and cash equivalents | |||
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Defined Benefit Plan, Minimum Range | 0.00% | ||
Defined Benefit Plan, maximum range | 10.00% | ||
Multiemployer Pension Plans | |||
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Multiemployer Plan Period Contributions | $ 48 | 54 | 52 |
Non Pension Multiemployer Plans | |||
Target Allocation - Defined Benefit Plan Asset Allocations | |||
Multiemployer Plan Period Contributions | $ 73 | $ 77 | $ 74 |
Pension and Other Postretirem63
Pension and Other Postretirement Benefits - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of period | $ 937 | $ 1,060 | |
Interest cost | 35 | 43 | $ 46 |
Actuarial (gain)/loss | 86 | (38) | |
Benefits paid | (44) | (128) | |
Benefit obligation, end of period | $ 1,014 | $ 937 | $ 1,060 |
Pension and Other Postretirem64
Pension and Other Postretirement Benefits - Change in Plan Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | $ 656 | $ 493 | $ 656 | |
Actual return on plan assets | 47 | (44) | ||
Employer contributions | 14 | 9 | ||
Benefits paid | (44) | (128) | ||
Fair value of plan assets, end of period | 510 | 493 | $ 656 | |
Loss on pension settlement | (24) | $ 0 | $ (24) | $ 0 |
Defined Benefit Plan One Time Benefits Paid | $ 90 |
Pension and Other Postretirem65
Pension and Other Postretirement Benefits - Funded Status (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Funded status | $ (504) | $ (444) |
Pension and Other Postretirem66
Pension and Other Postretirement Benefits - Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,014 | $ 937 |
Fair value of plan assets | 510 | 493 |
Funded status | (504) | (444) |
Funded Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 684 | 635 |
Fair value of plan assets | 510 | 493 |
Funded status | (174) | (142) |
Unfunded Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 330 | 302 |
Fair value of plan assets | 0 | 0 |
Funded status | $ (330) | $ (302) |
Pension and Other Postretirem67
Pension and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Interest cost | $ 35 | $ 43 | $ 46 | |
Expected return on plan assets | (38) | (46) | (50) | |
Recognized actuarial loss | 5 | 8 | 2 | |
Loss on pension settlement | $ 24 | 0 | 24 | 0 |
Net periodic benefit costs | $ 2 | $ 29 | $ (2) |
Pension and Other Postretirem68
Pension and Other Postretirement Benefits - Unrecognized Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Future Amortization of Gain (Loss) | $ 7 | |
Unrecognized actuarial loss | $ 363 | $ 291 |
Pension and Other Postretirem69
Pension and Other Postretirement Benefits - Other Comprehensive Income (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Net actuarial loss | $ 77 |
Recognized actuarial loss | (5) |
Total pre-tax loss | $ 72 |
Pension and Other Postretirem70
Pension and Other Postretirement Benefits - Key Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted-average assumptions - benefit obligations | ||
Discount rate | 3.92% | 4.50% |
Weighted-average assumptions - net periodic costs | ||
Discount rate | 3.79% | 4.37% |
Expected long-term return on plan assets | 7.50% | 8.00% |
Defined Benefit Plan Effect Of Twenty-Five Basis Point Change On Accumulated Benefit Obligation | $ 43 | |
Defined Benefit Plan Effect Of Twenty Five Basis Point Of Discount Rate Or Expected Rate of Return On Plan Assets | $ 1 |
Pension and Other Postretirem71
Pension and Other Postretirement Benefits - Asset Allocations of Funded Pension Plan (Details) | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percent Of Plan Assets Of Company Stock | 2.00% | 2.00% |
Asset Allocation Weighted Average | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Weighted Average | 64.00% | 63.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Weighted Average | 32.00% | 34.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Weighted Average | 4.00% | 3.00% |
Pension and Other Postretirem72
Pension and Other Postretirement Benefits - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cash And Cash Equivalents | $ 20 | $ 15 |
Common and preferred stock | 10 | 33 |
World funds | 286 | 230 |
Emerging markets funds | 32 | 46 |
U.S. treasury securities | 14 | 10 |
Municipal & government issued bonds | 1 | 1 |
Corporate bonds | 40 | 46 |
Mortgage-backed & asset-backed securities | 30 | 39 |
Emerging market funds | 19 | 19 |
Multi strategy funds | 58 | 54 |
Total | 510 | 493 |
Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cash And Cash Equivalents | 0 | 0 |
Common and preferred stock | 10 | 33 |
World funds | 0 | 0 |
Emerging markets funds | 0 | 0 |
U.S. treasury securities | 0 | 0 |
Municipal & government issued bonds | 0 | 0 |
Corporate bonds | 0 | 0 |
Mortgage-backed & asset-backed securities | 0 | 0 |
Emerging market funds | 19 | 19 |
Multi strategy funds | 0 | 0 |
Total | 29 | 52 |
Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cash And Cash Equivalents | 20 | 15 |
Common and preferred stock | 0 | 0 |
World funds | 286 | 230 |
Emerging markets funds | 32 | 46 |
U.S. treasury securities | 14 | 10 |
Municipal & government issued bonds | 1 | 1 |
Corporate bonds | 40 | 46 |
Mortgage-backed & asset-backed securities | 30 | 39 |
Emerging market funds | 0 | 0 |
Multi strategy funds | 58 | 54 |
Total | $ 481 | $ 441 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits - Future Benefit Payments (Details) $ in Millions | Sep. 30, 2016USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,017 | $ 36 |
2,018 | 37 |
2,019 | 40 |
2,020 | 43 |
2,021 | 44 |
2022 - 2026 | $ 266 |
Redeemable NCI (Details)
Redeemable NCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 219 | $ 216 | $ 200 |
Net earnings | 17 | 15 | 20 |
Distributions | (19) | (20) | (17) |
Translation adjustment | (38) | (10) | 5 |
Redemption value adjustment | 32 | 18 | 8 |
Ending balance | $ 211 | $ 219 | $ 216 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Rental Payments (Details) $ in Millions | Sep. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 228 |
2,018 | 203 |
2,019 | 100 |
2,020 | 144 |
2,021 | 131 |
2022 and thereafter | 962 |
Total minimum payments | 1,768 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | 21 |
2,018 | 21 |
2,019 | 22 |
2,020 | 9 |
2,021 | 6 |
2022 and thereafter | 1 |
Total minimum payments | 80 |
Amounts representing interest | (8) |
Total | $ 72 |
Commitments and Contingencies76
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | $ 1,003 | ||
Future minimum sublease income | 20 | ||
Rent expense | 266 | $ 268 | $ 227 |
Period end lease indemnifications | 230 | ||
Recorded liability for lease indemnifications | 190 | ||
Outstanding letters of credit | 34 | ||
Fiscal Year One | |||
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | 692 | ||
Fiscal Year Two | |||
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | 198 | ||
Fiscal Year Three | |||
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | 84 | ||
Fiscal Year Four | |||
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | 25 | ||
Fiscal Year Five | |||
Other Commitments [Line Items] | |||
Programming commitments recorded on balance sheet | 4 | ||
Programming and Talent Commitments | |||
Other Commitments [Line Items] | |||
Purchase commitments not recorded on balance sheet | 1,550 | ||
Programming and Talent Commitments | Media Networks Programming Commitments | |||
Other Commitments [Line Items] | |||
Purchase commitments not recorded on balance sheet | 1,191 | ||
Programming and Talent Commitments | Talent Contracts Commitments | |||
Other Commitments [Line Items] | |||
Purchase commitments not recorded on balance sheet | 359 | ||
Purchase Obligations | |||
Other Commitments [Line Items] | |||
Purchase commitments not recorded on balance sheet | $ 1,211 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | |||
Minimum Class A Shares Needed For Conversion | 5,000 | ||
Common stock conversion shares | 1 | ||
Preferred Stock Shares Authorized | 25,000,000 | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | ||
Preferred Stock Shares Outstanding | 0 | 0 | |
Stock repurchase program remaining capacity | $ 4,900 | ||
Stock repurchase program authorized amount | $ 20,000 | ||
Treasury Stock, Shares, Acquired | 2,100,000 | 21,100,000 | 40,700,000 |
Purchase of treasury stock | $ (100) | $ (1,500) | $ (3,400) |
Common Class A | |||
Class of Stock [Line Items] | |||
Common Stock Authorized | 375,000,000 | 375,000,000 | |
Common Class B | |||
Class of Stock [Line Items] | |||
Common Stock Authorized | 5,000,000,000 | 5,000,000,000 | |
Common Stock (shares) | |||
Class of Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 2,100,000 | 21,100,000 | 40,700,000 |
Treasury Stock | |||
Class of Stock [Line Items] | |||
Purchase of treasury stock | $ (100) | $ (1,500) | $ (3,400) |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive income (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Equity [Abstract] | |||
Foreign currency translation adjustments | $ (435) | $ (341) | $ (106) |
Defined benefit pension plans | (258) | (193) | (186) |
Cash flow hedges | 1 | 0 | (1) |
Total | $ (692) | $ (534) | $ (293) |
Equity Based Compensation (Deta
Equity Based Compensation (Details) shares in Millions, $ / shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($)annual_installment$ / sharesshares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum Percentage of Target Award | 0.00% | ||
Maximum Percentage of Target Award | 300.00% | ||
Minimum Vested Percentage of Target Award | 75.00% | ||
Maximum Vested Percentage of Target Award | 125.00% | ||
Treasury Shares | shares | 399.4 | 398 | |
Future equity awards authorized under LTMIP | shares | 17 | ||
Stock Options [Abstract] | |||
Weighted average remaining contractual life of stock options outstanding | 4 years | ||
Weighted average remaining contractual life of stock options exercisable | 3 years | ||
Aggregate intrinsic value of stock options exercisable | $ 17 | ||
Unrecognized compensation costs related to unvested stock options | $ 41 | ||
Weighted average period of unrecognized compensation recognition related to unvested stock options | 3 years | ||
Other Equity Based Awards [Abstract] | |||
Weighted average remaining contractual life of unvested share units | 2 years | ||
Aggregate intrinsic value of unvested share units | $ / shares | $ 96 | ||
Fair value of share units vested | $ 46 | $ 110 | $ 212 |
Unrecognized compensation costs related to share units | $ 104 | ||
Weighted average period of unrecognized compensation recognition related to share units | 3 years | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 8 years | ||
Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Measurement period | 3 years | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual installments | annual_installment | 3 | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual installments | annual_installment | 4 | ||
Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
Equity-Based Compensation - Com
Equity-Based Compensation - Compensation Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized in earnings | $ 163 | $ 101 | $ 122 |
Tax benefit recognized | 58 | 35 | 40 |
Capitalized equity-based compensation expense | 4 | 5 | 6 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized in earnings | 29 | 33 | 37 |
Share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized in earnings | 66 | 68 | 85 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized in earnings | 95 | 101 | 122 |
Restructuring Charges [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized in earnings | $ 68 | $ 0 | $ 0 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options Key Assumptions (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average fair value of grants | $ 8.65 | $ 11.34 | $ 16.52 |
Weighted average assumptions: | |||
Expected stock price volatility | 36.10% | 23.80% | 25.00% |
Expected term of options (in years) | 5 years 5 months | 4 years 10 months | 4 years 7 months |
Risk-free interest rate | 1.50% | 1.60% | 1.50% |
Expected dividend yield | 4.10% | 2.40% | 1.60% |
Equity-Based Compensation - S82
Equity-Based Compensation - Stock Options (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Options | |||
Outstanding at the beginning of the period | 17,771,300 | 19,058,500 | 21,441,900 |
Granted | 3,765,700 | 3,303,100 | 2,040,700 |
Exercised | (1,242,500) | (4,097,400) | (4,233,200) |
Forfeited or expired | (698,300) | (492,900) | (190,900) |
Outstanding at the end of the period | 19,596,200 | 17,771,300 | 19,058,500 |
Exercisable at the end of the period | 12,191,200 | 11,109,100 | 12,656,100 |
Weighted average exercise price | |||
Outstanding at the beginning of the period | $ 53.43 | $ 47.67 | $ 42.85 |
Granted | 38.86 | 66.35 | 84.46 |
Exercised | 35.24 | 35.53 | 40.71 |
Forfeited or expired | 60.26 | 66.19 | 54.21 |
Outstanding at the end of the period | 51.54 | 53.43 | 47.67 |
Exercisable at the end of the period | $ 49.49 | $ 44.83 | $ 38.75 |
Equity-Based Compensation - S83
Equity-Based Compensation - Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Proceeds from stock option exercises | $ 11 | $ 146 | $ 173 |
Intrinsic value | 7 | 153 | 182 |
EmployeeServiceShareBasedCompensationTaxEffectFromExerciseOfStockOptions | (3) | $ 39 | $ 53 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 17 |
Equity-Based Compensation - Oth
Equity-Based Compensation - Other Equity-Based Awards (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Number of shares | |||
Unvested at the beginning of the period | 2,645,100 | 3,138,300 | 4,311,400 |
Granted | 1,701,100 | 1,430,200 | 1,570,800 |
Vested | (1,144,800) | (1,644,800) | (2,593,800) |
Forfeited | (693,800) | (278,600) | (150,100) |
Unvested at the end of the period | 2,507,600 | 2,645,100 | 3,138,300 |
Weighted average grant date fair value | |||
Unvested at the beginning of the period | $ 75.68 | $ 67.35 | $ 53.54 |
Granted | 44.75 | 71.22 | 81.86 |
Vested | 63.83 | 57.18 | 53.88 |
Forfeited | 83.12 | 68.17 | 55.20 |
Unvested at the end of the period | $ 58.05 | $ 75.68 | $ 67.35 |
Performance-based share units included In Grant Activity | 400,000 | 400,000 | 200,000 |
Restructuring and Programming85
Restructuring and Programming Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve Rollforward [Line Items] | |||||
Restructuring | $ 206 | $ 206 | $ 206 | $ 206 | $ 0 |
Grantor trust contributions | 69 | 0 | $ 0 | ||
Programming inventory restructure | $ 578 | ||||
2016 Restructuring Plan | |||||
Restructuring Reserve Rollforward [Line Items] | |||||
Restructuring | 206 | ||||
Grantor trust contributions | 69 | ||||
2016 Restructuring Plan | Separation Payments | |||||
Restructuring Reserve Rollforward [Line Items] | |||||
Restructuring | 138 | ||||
Payments for Restructuring | 48 | ||||
2016 Restructuring Plan | Allocated Share-Based Compensation Expense | |||||
Restructuring Reserve Rollforward [Line Items] | |||||
Restructuring | 68 | ||||
2015 Restructuring Plan | |||||
Restructuring Reserve Rollforward [Line Items] | |||||
Restructuring | 206 | ||||
Payments for Restructuring | $ 80 | ||||
Programming inventory restructure | $ 578 |
Restructuring Reserve Rollforwa
Restructuring Reserve Rollforward (Details) - 2015 Restructuring Plan $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Restructuring Reserve Rollforward [Line Items] | |
Restructuring Reserve, Beginning Balance | $ 147 |
Payments for Restructuring | (80) |
Revisions to initial estimates | (15) |
Restructuring Reserve, Ending Balance | 52 |
Media Networks | |
Restructuring Reserve Rollforward [Line Items] | |
Restructuring Reserve, Beginning Balance | 87 |
Payments for Restructuring | (48) |
Revisions to initial estimates | (3) |
Restructuring Reserve, Ending Balance | 36 |
Filmed Entertainment | |
Restructuring Reserve Rollforward [Line Items] | |
Restructuring Reserve, Beginning Balance | 51 |
Payments for Restructuring | (28) |
Revisions to initial estimates | (11) |
Restructuring Reserve, Ending Balance | 12 |
Corporate | |
Restructuring Reserve Rollforward [Line Items] | |
Restructuring Reserve, Beginning Balance | 9 |
Payments for Restructuring | (4) |
Revisions to initial estimates | (1) |
Restructuring Reserve, Ending Balance | $ 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Recognized Net Discrete Tax Benefits | $ 110,000,000 | $ 13,000,000 | $ 281,000,000 | $ 102,000,000 | $ 258,000,000 | $ 49,000,000 |
Tax losses in various foreign jurisdictions | 178,000,000 | 178,000,000 | ||||
Foreign Tax Losses With Unlimited Carryforward Periods | 324,000,000 | 324,000,000 | ||||
Foreign Tax Losses With Limited Carryforward Periods | 426,000,000 | 426,000,000 | ||||
Tax credit and loss carryforwards | 223,000,000 | 245,000,000 | 223,000,000 | $ 245,000,000 | ||
Unremitted Earnings Of International Subsidiaries | $ 2,200,000,000 | $ 2,200,000,000 | ||||
Undistributed earnings of foreign subsidiaries, incremental tax percentage,minimum | 10.00% | 10.00% | ||||
Undistributed earnings of foreign subsidiaries, incremental tax percentage,maximum | 15.00% | 15.00% | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
Interest and Penalties | $ 11,000,000 | $ 8,000,000 | $ 10,000,000 | |||
Interest and Penalties Accrual | $ 37,000,000 | $ 35,000,000 | 37,000,000 | $ 35,000,000 | ||
Future Unrecognized tax benefits | $ 100,000,000 | $ 100,000,000 |
Income Taxes - Earnings from Co
Income Taxes - Earnings from Continuing Operations before Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,479 | $ 2,047 | $ 2,924 |
International | 511 | 456 | 590 |
Earnings from continuing operations before provision for income taxes | $ 1,990 | $ 2,503 | $ 3,514 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current provision for income taxes: | |||
Federal | $ 112 | $ 404 | $ 1,049 |
State and local | 31 | 65 | 122 |
International | 122 | 114 | 169 |
Total current provision for income taxes | 265 | 583 | 1,340 |
Deferred provision for income taxes | 254 | (82) | (290) |
Provision for income taxes | $ 519 | $ 501 | $ 1,050 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal benefit | 1.70% | 1.80% | 1.90% |
Effect of international operations | (4.40%) | (2.90%) | (3.60%) |
Qualified production activities deduction | (1.00%) | (3.00%) | (3.20%) |
Change in valuation allowance | (1.10%) | (2.70%) | (0.30%) |
Tax accounting method change | (2.70%) | 0.00% | 0.00% |
Foreign tax credits of repatriated non-U.S. earnings | (0.40%) | (7.40%) | (0.00%) |
All other, net | (1.00%) | (0.80%) | 0.10% |
Effective tax rate, continuing operations | 26.10% | 20.00% | 29.90% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Accrued liabilities | $ 193 | $ 191 |
Postretirement and other employee benefits | 452 | 407 |
Tax credit and loss carryforwards | 223 | 245 |
All other | 184 | 214 |
Total deferred tax assets | 1,052 | 1,057 |
Valuation allowance | (195) | (202) |
Total deferred tax assets, net | 857 | 855 |
Deferred tax liabilities: | ||
Property, equipment and intangible assets | (525) | (527) |
Unbilled revenue | (127) | (146) |
Financing obligations | (114) | (115) |
Film & TV production expenditures | (429) | (166) |
Total deferred tax liabilities | (1,195) | (954) |
Deferred taxes, net | $ (338) | $ (99) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets/Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 43 | $ 51 |
Deferred tax liabilities | (381) | (150) |
Deferred taxes, net | $ (338) | $ (99) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of the period | $ 179 | $ 185 | $ 159 |
Gross additions based on tax positions related to the current year | 21 | 60 | 25 |
Gross additions for tax positions of prior years | 13 | 8 | 10 |
Gross reductions for tax positions of prior years | (23) | (63) | (5) |
Settlements | (1) | (1) | 0 |
Expiration of the statute of limitation | (25) | (10) | (4) |
Balance at end of the period | $ 164 | $ 179 | $ 185 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares outstanding, basic | 396.5 | 402.2 | 432.1 |
Dilutive effect of equity awards | 1.5 | 3.8 | 8.1 |
Weighted average number of common shares outstanding, diluted | 398 | 406 | 440.2 |
Anti-dilutive common shares | 14.7 | 6.9 | 1.1 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for interest | $ 611 | $ 636 | $ 568 |
Cash paid for income taxes | $ 275 | $ 566 | $ 1,021 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financial Instruments [Line Items] | |||
Marketable securities | $ 114 | $ 100 | |
Derivatives | (13) | (10) | |
Total | 101 | 90 | |
Derivative, Notional Amount | 1,149 | 1,040 | |
Film Cost Impairment | 115 | ||
Asset impairment | 0 | 0 | $ 43 |
Foreign Currency Balances In Foreign Operations | |||
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | 874 | 769 | |
Future Production Costs | |||
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | 275 | 271 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | |||
Financial Instruments [Line Items] | |||
Marketable securities | 114 | 100 | |
Derivatives | 0 | 0 | |
Total | 114 | 100 | |
Significant Other Observable Inputs Level 2 | |||
Financial Instruments [Line Items] | |||
Marketable securities | 0 | 0 | |
Derivatives | (13) | (10) | |
Total | (13) | (10) | |
Significant Unobservable Inputs Level 3 | |||
Financial Instruments [Line Items] | |||
Marketable securities | 0 | 0 | |
Derivatives | 0 | 0 | |
Total | $ 0 | $ 0 | |
Finite-lived Intangible Assets, Fair Value Disclosure | $ 28 |
Reporting Segments (Details)
Reporting Segments (Details) - Segment | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | ||
International | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Total Consolidated Revenues | 25.00% | 25.00% | 26.00% |
Reporting Segments - Revenues b
Reporting Segments - Revenues by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 3,226 | $ 3,107 | $ 3,001 | $ 3,154 | $ 3,788 | $ 3,058 | $ 3,078 | $ 3,344 | $ 12,488 | $ 13,268 | $ 13,783 |
Eliminations | (116) | (105) | (113) | ||||||||
Media Networks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 9,942 | 10,490 | 10,171 | ||||||||
Filmed Entertainment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 2,662 | $ 2,883 | $ 3,725 |
Reporting Segment - Adjusted Op
Reporting Segment - Adjusted Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Equity-based compensation | $ (163) | $ (101) | $ (122) | ||||||||
Asset impairment | 0 | 0 | (43) | ||||||||
Restructuring and programming charges | $ (784) | (206) | (784) | 0 | |||||||
Loss on pension settlement | $ (24) | 0 | (24) | 0 | |||||||
Operating income | $ 332 | $ 769 | $ 586 | $ 839 | $ 1,055 | $ 1,084 | $ 38 | $ 935 | 2,526 | 3,112 | 4,082 |
Interest expense, net | (616) | (657) | (615) | ||||||||
Equity in net earnings of investee companies | 87 | 102 | 69 | ||||||||
Loss on extinguishment of debt | $ (18) | 0 | (18) | (11) | |||||||
Other items, net | (7) | (36) | (11) | ||||||||
Earnings from continuing operations before provision for income taxes | 1,990 | 2,503 | 3,514 | ||||||||
Media Networks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted operating income by Segment | 3,484 | 4,143 | 4,271 | ||||||||
Filmed Entertainment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted operating income by Segment | (445) | 111 | 205 | ||||||||
Corporate expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | (213) | (235) | (227) | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Eliminations | 1 | 2 | (2) | ||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equity-based compensation | $ (95) | $ (101) | $ (122) |
Reporting Segments - Depreciati
Reporting Segments - Depreciation and Amortization and Total Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 221 | $ 222 | $ 217 |
Total assets | 22,508 | 22,143 | |
Media Networks | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 166 | 162 | 148 |
Total assets | 16,410 | 17,088 | |
Filmed Entertainment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 50 | 53 | 64 |
Total assets | 6,391 | 5,914 | |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5 | 7 | $ 5 |
Total assets | $ (293) | $ (859) |
Reporting Segments - Capital Ex
Reporting Segments - Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 172 | $ 142 | $ 123 |
Media Networks | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 141 | 115 | 85 |
Filmed Entertainment | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 28 | 22 | 34 |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 3 | $ 5 | $ 4 |
Reporting Segments - Revenue102
Reporting Segments - Revenues by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Advertising | $ 4,809 | $ 5,007 | $ 4,953 | ||||||||
Affiliate | 4,556 | 4,908 | 4,660 | ||||||||
Feature film | 2,488 | 2,692 | 3,488 | ||||||||
Ancillary | 751 | 766 | 795 | ||||||||
Eliminations | (116) | (105) | (113) | ||||||||
Total revenues | $ 3,226 | $ 3,107 | $ 3,001 | $ 3,154 | $ 3,788 | $ 3,058 | $ 3,078 | $ 3,344 | $ 12,488 | $ 13,268 | $ 13,783 |
Reporting Segments - Geographic
Reporting Segments - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,226 | $ 3,107 | $ 3,001 | $ 3,154 | $ 3,788 | $ 3,058 | $ 3,078 | $ 3,344 | $ 12,488 | $ 13,268 | $ 13,783 |
Long-Lived Assets | 5,590 | 5,213 | $ 5,590 | $ 5,213 | |||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Total Consolidated Revenues | 25.00% | 25.00% | 26.00% | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 9,308 | $ 9,928 | $ 10,252 | ||||||||
Long-Lived Assets | 5,180 | 4,850 | 5,180 | 4,850 | |||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,182 | 2,193 | 2,046 | ||||||||
Long-Lived Assets | 348 | 309 | 348 | 309 | |||||||
All other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 998 | 1,147 | $ 1,485 | ||||||||
Long-Lived Assets | $ 62 | $ 54 | $ 62 | $ 54 | |||||||
United Kingdom And Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Total Consolidated Revenues | 57.00% | 55.00% | 45.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||
OwnershipPercentOfClassAStockByControllingStockholder | 79.80% | ||
OwnershipPercentOfClassAAndClassBStockByControllingStockholder | 10.00% | ||
Consolidated Balance Sheets | |||
Percentage Of Voting Interest Controlled By The Chairman Of The Controlling Stockholder Entity | 80.00% | ||
Percentage Of Voting Interest Controlled By Non-Chairman Member Of The Controlling Stockholder Entity | 20.00% | ||
NAI | |||
Consolidated Statements of Earnings | |||
Revenues | $ 8 | $ 10 | $ 15 |
CBS | |||
Consolidated Statements of Earnings | |||
Revenues | 133 | 169 | 213 |
Operating expenses | 174 | 284 | 296 |
Consolidated Balance Sheets | |||
Accounts receivable | 3 | 5 | |
Accounts payable | 0 | 1 | |
Participants’ share and residuals, current | 66 | 77 | |
Program obligations, current | 61 | 62 | |
Program obligations, noncurrent | 32 | 55 | |
Other liabilities | 2 | 2 | |
Total due to other related parties | 161 | 197 | |
Other Related Parties | |||
Consolidated Statements of Earnings | |||
Revenues | 125 | 174 | 196 |
Operating expenses | 72 | 61 | 71 |
Selling, general and administrative | (15) | (15) | $ (14) |
Consolidated Balance Sheets | |||
Accounts receivable | 67 | 60 | |
Other assets | 1 | 1 | |
Total due from other related parties | 68 | 61 | |
Accounts payable | 8 | 5 | |
Other liabilities | 69 | 55 | |
Total due to other related parties | $ 77 | $ 60 |
Quarterly Financial Data Una105
Quarterly Financial Data Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,226 | $ 3,107 | $ 3,001 | $ 3,154 | $ 3,788 | $ 3,058 | $ 3,078 | $ 3,344 | $ 12,488 | $ 13,268 | $ 13,783 |
Operating income | 332 | 769 | 586 | 839 | 1,055 | 1,084 | 38 | 935 | 2,526 | 3,112 | 4,082 |
Net earnings from continuing operations (Viacom and noncontrolling interests) | 261 | 440 | 309 | 461 | 892 | 645 | (48) | 513 | 1,471 | 2,002 | 2,464 |
Net earnings (Viacom and noncontrolling interests) | 263 | 440 | 309 | 461 | 892 | 645 | (48) | 513 | 1,473 | 2,002 | 2,463 |
Net earnings from continuing operations | 252 | 432 | 303 | 449 | 884 | 591 | (53) | 500 | 1,436 | 1,922 | 2,392 |
Net earnings attributable to Viacom | $ 254 | $ 432 | $ 303 | $ 449 | $ 884 | $ 591 | $ (53) | $ 500 | $ 1,438 | $ 1,922 | $ 2,391 |
Basic net earnings per share, continuing operations attributable to Viacom (in usd per share) | $ 0.63 | $ 1.09 | $ 0.76 | $ 1.13 | $ 2.22 | $ 1.49 | $ (0.13) | $ 1.22 | $ 3.62 | $ 4.78 | $ 5.54 |
Basic net earnings per share attributable to Viacom (in usd per share) | 0.64 | 1.09 | 0.76 | 1.13 | 2.22 | 1.49 | (0.13) | 1.22 | 3.63 | 4.78 | 5.53 |
Diluted net earnings per share, continuing operations attributable to Viacom (in usd per share) | 0.63 | 1.09 | 0.76 | 1.13 | 2.21 | 1.47 | (0.13) | 1.20 | 3.61 | 4.73 | 5.43 |
Diluted net earnings per share attributable to Viacom (in usd per share) | $ 0.64 | $ 1.09 | $ 0.76 | $ 1.13 | $ 2.21 | $ 1.47 | $ (0.13) | $ 1.20 | $ 3.61 | $ 4.73 | $ 5.43 |
Quarterly Financial Data Una106
Quarterly Financial Data Unaudited (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 29, 2015 | |
Quarterly Financial Information Disclosure (Narrative) [Line Items] | ||||||||||
Restructuring | $ 206 | $ 206 | $ 206 | $ 206 | $ 0 | |||||
Restructuring Reserves Period Expense, Net Of Tax | 131 | |||||||||
NetDiscreteTaxExpense | $ 21 | $ 23 | ||||||||
Recognized Net Discrete Tax Benefits | 110 | $ 13 | $ 281 | 102 | 258 | 49 | ||||
Loss on pension settlement | 24 | 0 | 24 | 0 | ||||||
Loss on pension settlement, net of tax | $ 15 | |||||||||
Restructuring Charges | 784 | 206 | 784 | 0 | ||||||
Restructuring Charges, Net Of Tax | 520 | |||||||||
Programming inventory restructure | $ 578 | |||||||||
Loss on extinguishment of debt | 18 | 0 | 18 | $ 11 | ||||||
Loss on extinguishment of debt, net of tax | 11 | |||||||||
Senior notes due April 2016, 6.250% | ||||||||||
Quarterly Financial Information Disclosure (Narrative) [Line Items] | ||||||||||
Early Repayment of Senior Debt | 550 | 368 | ||||||||
Senior Notes | $ 0 | $ 368 | $ 0 | $ 368 | $ 918 | |||||
Coupon rate | 6.25% | 6.25% | 6.25% | 6.25% |
Schedule ll (Details)
Schedule ll (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | $ 37 | $ 30 | $ 33 |
Additions - expense and other | 13 | 10 | 2 |
Deductions | (6) | (3) | (5) |
End of period | 44 | 37 | 30 |
Sales returns and allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 126 | 199 | 261 |
Additions - expense and other | 218 | 344 | 468 |
Deductions | (251) | (417) | (530) |
End of period | 93 | 126 | 199 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 202 | 308 | 277 |
Additions - expense and other | 24 | 14 | 54 |
Deductions | (31) | (120) | (23) |
End of period | $ 195 | $ 202 | $ 308 |