Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 21, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34177 | |
Entity Registrant Name | Warner Bros. Discovery, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 35-2333914 | |
Entity Address, Address Line One | 230 Park Avenue South | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 548-5555 | |
Title of 12(b) Security | Series A Common Stock | |
Trading Symbol | WBD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 2,427,592,861 | |
Entity Central Index Key | 0001437107 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Revenues | $ 9,827 | $ 3,062 | $ 12,986 | $ 5,854 |
Costs and expenses: | ||||
Costs of revenues, excluding depreciation and amortization | 6,625 | 1,055 | 7,861 | 2,024 |
Selling, general and administrative | 3,538 | 952 | 4,578 | 2,003 |
Depreciation and amortization | 2,266 | 341 | 2,791 | 702 |
Restructuring and other charges | 1,033 | 7 | 1,038 | 22 |
Loss (gain) on disposition | 4 | (72) | 4 | (72) |
Total costs and expenses | 13,466 | 2,283 | 16,272 | 4,679 |
Operating (loss) income | (3,639) | 779 | (3,286) | 1,175 |
Interest expense, net | (511) | (157) | (664) | (320) |
Loss from equity investees, net | (43) | (7) | (57) | (11) |
Other (expense) income, net | (51) | 105 | 439 | 173 |
(Loss) income before income taxes | (4,244) | 720 | (3,568) | 1,017 |
Income tax benefit (expense) | 836 | (2) | 635 | (108) |
Net (loss) income | (3,408) | 718 | (2,933) | 909 |
Net income attributable to noncontrolling interests | (7) | (38) | (23) | (84) |
Net income attributable to redeemable noncontrolling interests | (3) | (8) | (6) | (13) |
Net (loss) income available to Warner Bros. Discovery, Inc. | $ (3,418) | $ 672 | $ (2,962) | $ 812 |
Net (loss) income per share allocated to Warner Bros. Discovery, Inc. Series A common stockholders: | ||||
Basic (in dollars per share) | $ (1.50) | $ 1.02 | $ (2.09) | $ 1.23 |
Diluted (in dollars per share) | $ (1.50) | $ 1.01 | $ (2.09) | $ 1.22 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 2,286 | 589 | 1,443 | 587 |
Diluted (in shares) | 2,286 | 664 | 1,443 | 666 |
Advertising | ||||
Revenues: | ||||
Revenues | $ 2,721 | $ 1,634 | $ 4,197 | $ 3,043 |
Distribution | ||||
Revenues: | ||||
Revenues | 4,838 | 1,312 | 6,190 | 2,570 |
Content | ||||
Revenues: | ||||
Revenues | 2,064 | 100 | 2,387 | 212 |
Other | ||||
Revenues: | ||||
Revenues | $ 204 | $ 16 | $ 212 | $ 29 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (3,408) | $ 718 | $ (2,933) | $ 909 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (488) | 108 | (587) | (59) |
Derivatives | (18) | (112) | (36) | 125 |
Comprehensive (loss) income | (3,914) | 714 | (3,556) | 975 |
Comprehensive income attributable to noncontrolling interests | (7) | (38) | (23) | (84) |
Comprehensive income attributable to redeemable noncontrolling interests | (3) | (8) | (6) | (13) |
Comprehensive (loss) income attributable to Warner Bros. Discovery, Inc. | $ (3,924) | $ 668 | $ (3,585) | $ 878 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,575 | $ 3,905 |
Receivables, net | 7,049 | 2,446 |
Prepaid expenses and other current assets | 5,825 | 913 |
Total current assets | 15,449 | 7,264 |
Film and television content rights and games, net | 30,120 | 3,832 |
Property and equipment, net | 5,597 | 1,336 |
Goodwill | 34,273 | 12,912 |
Intangible assets, net | 48,724 | 6,317 |
Other noncurrent assets | 8,077 | 2,766 |
Total assets | 142,240 | 34,427 |
Current liabilities: | ||
Accounts payable | 1,397 | 412 |
Accrued liabilities | 10,279 | 2,230 |
Deferred revenues | 1,663 | 478 |
Current portion of debt | 1,097 | 339 |
Total current liabilities | 14,436 | 3,459 |
Noncurrent portion of debt | 51,388 | 14,420 |
Deferred income taxes | 13,666 | 1,225 |
Other noncurrent liabilities | 9,803 | 1,927 |
Total liabilities | 89,293 | 21,031 |
Commitments and contingencies (See Note 19) | ||
Redeemable noncontrolling interests | 328 | 363 |
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Preferred stock: $0.01 par value; 1,200 and 0 shares authorized, 0 shares issued and outstanding | 0 | |
Additional paid-in capital | 54,439 | 11,086 |
Treasury stock, at cost: 230 and 230 shares | (8,244) | (8,244) |
Retained earnings | 6,614 | 9,580 |
Accumulated other comprehensive loss | (1,453) | (830) |
Total Warner Bros. Discovery, Inc. stockholders' equity | 51,383 | 11,599 |
Noncontrolling interests | 1,236 | 1,434 |
Total equity | 52,619 | 13,033 |
Total liabilities and equity | 142,240 | 34,427 |
Series A-1 Convertible Preferred Stock | ||
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Discovery Series A-1 convertible preferred stock: $0.01 par value; 0 and 8 shares authorized, issued and outstanding | 0 | |
Series C-1 Convertible Preferred Stock | ||
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Discovery Series A-1 convertible preferred stock: $0.01 par value; 0 and 8 shares authorized, issued and outstanding | 0 | |
Series A Common Stock | ||
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Discovery Series A common stock: $0.01 par value; 0 and 1,700 shares authorized; 0 and 170 shares issued; and 0 and 169 shares outstanding | $ 27 | 2 |
Series B Common Stock | ||
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Discovery Series A common stock: $0.01 par value; 0 and 1,700 shares authorized; 0 and 170 shares issued; and 0 and 169 shares outstanding | 0 | |
Series C Common Stock | ||
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Discovery Series A common stock: $0.01 par value; 0 and 1,700 shares authorized; 0 and 170 shares issued; and 0 and 169 shares outstanding | $ 5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 1,200 | |
Preferred stock issued (in shares) | 0 | |
Preferred stock outstanding (in shares) | 0 | |
Treasury stock (in shares) | 230 | 230 |
Series A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 10,800 | 1,700 |
Common stock issued (in shares) | 2,658 | 170 |
Common stock outstanding (in shares) | 2,428 | 169 |
Series A-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 8 | |
Preferred stock issued (in shares) | 8 | |
Preferred stock outstanding (in shares) | 8 | |
Series C-1 Convertible Preferred Stock | ||
Common stock authorized (in shares) | 6 | |
Common stock issued (in shares) | 4 | |
Common stock outstanding (in shares) | 4 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Series B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock authorized (in shares) | 100 | |
Common stock issued (in shares) | 7 | |
Common stock outstanding (in shares) | 7 | |
Series C Common Stock | ||
Common stock authorized (in shares) | 2,000 | |
Common stock issued (in shares) | 559 | |
Common stock outstanding (in shares) | 330 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net (loss) income | $ (2,933) | $ 909 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Content rights amortization and impairment | 6,591 | 1,516 |
Depreciation and amortization | 2,791 | 702 |
Deferred income taxes | (915) | (242) |
Preferred stock conversion premium | 789 | 0 |
Share-based compensation expense | 210 | 95 |
Gain on disposition | 4 | (72) |
Equity in losses of equity method investee companies and cash distributions | 91 | 38 |
Gain on sale of investments | (132) | (20) |
Gain from derivative instruments, net | (496) | 0 |
Other, net | 60 | (100) |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (444) | (141) |
Film and television content rights, games and payables, net | (4,653) | (1,701) |
Accounts payable, accrued liabilities, deferred revenues and other noncurrent liabilities | 8 | 41 |
Foreign currency, prepaid expenses and other assets, net | 363 | 78 |
Cash provided by operating activities | 1,334 | 1,103 |
Investing Activities | ||
Purchases of property and equipment | (307) | (167) |
Cash acquired from business acquisition | 2,419 | 0 |
Proceeds from sales and maturities of investments | 139 | 348 |
Investments in and advances to equity investments | (109) | (105) |
Proceeds from derivative instruments, net | 720 | 0 |
Other investing activities, net | 18 | 120 |
Cash provided by investing activities | 2,880 | 196 |
Financing Activities | ||
Principal repayments of term loans | (3,500) | 0 |
Principal repayments of debt, including premiums to par value | (327) | (339) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (264) | (213) |
Purchase of redeemable noncontrolling interests | 0 | (31) |
Borrowings under commercial paper program | 90 | 0 |
Repayments under commercial paper program | (90) | 0 |
Other financing activities, net | (66) | 45 |
Cash used in financing activities | (4,157) | (538) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (66) | (49) |
Net change in cash, cash equivalents, and restricted cash | (9) | 712 |
Cash, cash equivalents, and restricted cash, beginning of period | 3,905 | 2,122 |
Cash, cash equivalents, and restricted cash, end of period | $ 3,896 | $ 2,834 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Warner Bros. Discovery, Inc. Stockholders’ Equity | Discovery, Inc. Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 13 | 717 | |||||||
Beginning balance at Dec. 31, 2020 | $ 12,000 | $ 10,464 | $ 0 | $ 7 | $ 10,809 | $ (8,244) | $ 8,543 | $ (651) | $ 1,536 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | 186 | 140 | 140 | 46 | |||||
Other comprehensive loss | 70 | 70 | 70 | ||||||
Share-based compensation | 32 | 32 | 32 | ||||||
Tax settlements associated with share-based plans | (68) | (68) | (68) | ||||||
Preferred stock conversion (in shares) | (1) | 11 | |||||||
Dividends paid to noncontrolling interests | (178) | (178) | |||||||
Issuance of stock in connection with share-based plans (in shares) | 8 | ||||||||
Issuance of stock in connection with share-based plans | 186 | 186 | 186 | ||||||
Redeemable noncontrolling interest adjustment to redemptions value | (9) | (9) | (8) | (1) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 12 | 736 | |||||||
Ending balance at Mar. 31, 2021 | 12,219 | 10,815 | $ 0 | $ 7 | 10,951 | (8,244) | 8,682 | (581) | 1,404 |
Beginning balance (in shares) at Dec. 31, 2020 | 13 | 717 | |||||||
Beginning balance at Dec. 31, 2020 | 12,000 | 10,464 | $ 0 | $ 7 | 10,809 | (8,244) | 8,543 | (651) | 1,536 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Other comprehensive loss | 66 | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 12 | 736 | |||||||
Ending balance at Jun. 30, 2021 | 12,951 | 11,538 | $ 0 | $ 7 | 11,000 | (8,244) | 9,360 | (585) | 1,413 |
Beginning balance (in shares) at Mar. 31, 2021 | 12 | 736 | |||||||
Beginning balance at Mar. 31, 2021 | 12,219 | 10,815 | $ 0 | $ 7 | 10,951 | (8,244) | 8,682 | (581) | 1,404 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | 710 | 672 | 672 | 38 | |||||
Other comprehensive loss | (4) | (4) | (4) | ||||||
Share-based compensation | 41 | 41 | 41 | ||||||
Tax settlements associated with share-based plans | (1) | (1) | (1) | ||||||
Dividends paid to noncontrolling interests | (29) | (29) | |||||||
Issuance of stock in connection with share-based plans | 9 | 9 | 9 | ||||||
Redeemable noncontrolling interest adjustment to redemptions value | 6 | 6 | 6 | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 12 | 736 | |||||||
Ending balance at Jun. 30, 2021 | 12,951 | 11,538 | $ 0 | $ 7 | 11,000 | (8,244) | 9,360 | (585) | 1,413 |
Beginning balance (in shares) at Dec. 31, 2021 | 12 | 736 | |||||||
Beginning balance at Dec. 31, 2021 | 13,033 | 11,599 | $ 0 | $ 7 | 11,086 | (8,244) | 9,580 | (830) | 1,434 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | 472 | 456 | 456 | 16 | |||||
Other comprehensive loss | (117) | (117) | (117) | ||||||
Share-based compensation | 53 | 53 | 53 | ||||||
Tax settlements associated with share-based plans | (38) | (38) | (38) | ||||||
Dividends paid to noncontrolling interests | (192) | (192) | |||||||
Issuance of stock in connection with share-based plans (in shares) | 3 | ||||||||
Issuance of stock in connection with share-based plans | 19 | 19 | 19 | ||||||
Redeemable noncontrolling interest adjustment to redemptions value | (3) | (3) | (3) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 12 | 739 | |||||||
Ending balance at Mar. 31, 2022 | 13,227 | 11,969 | $ 0 | $ 7 | 11,120 | (8,244) | 10,033 | (947) | 1,258 |
Beginning balance (in shares) at Dec. 31, 2021 | 12 | 736 | |||||||
Beginning balance at Dec. 31, 2021 | 13,033 | 11,599 | $ 0 | $ 7 | 11,086 | (8,244) | 9,580 | (830) | 1,434 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Other comprehensive loss | (623) | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 2,658 | ||||||||
Ending balance at Jun. 30, 2022 | 52,619 | 51,383 | $ 27 | 54,439 | (8,244) | 6,614 | (1,453) | 1,236 | |
Beginning balance (in shares) at Mar. 31, 2022 | 12 | 739 | |||||||
Beginning balance at Mar. 31, 2022 | 13,227 | 11,969 | $ 0 | $ 7 | 11,120 | (8,244) | 10,033 | (947) | 1,258 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | (3,411) | (3,418) | (3,418) | 7 | |||||
Other comprehensive loss | (506) | (506) | (506) | ||||||
Share-based compensation | 143 | 143 | 143 | ||||||
Conversion and issuance of common stock and noncontrolling interest in connection with the acquisition of the WarnerMedia Business (in shares) | (12) | (739) | |||||||
Conversion and issuance of common stock and noncontrolling interest in connection with the acquisition of the WarnerMedia Business | 43,195 | 43,193 | $ (7) | 43,173 | 2 | ||||
Conversion and issuance of common stock and noncontrolling interest in connection with the acquisition of the WarnerMedia Business (in shares) | 2,658 | ||||||||
Conversion and issuance of common stock and noncontrolling interest in connection with the acquisition of the WarnerMedia Business | $ 27 | ||||||||
Dividends paid to noncontrolling interests | (31) | (31) | |||||||
Issuance of stock in connection with share-based plans | 3 | 3 | 3 | ||||||
Redeemable noncontrolling interest adjustment to redemptions value | (1) | (1) | (1) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 2,658 | ||||||||
Ending balance at Jun. 30, 2022 | $ 52,619 | $ 51,383 | $ 27 | $ 54,439 | $ (8,244) | $ 6,614 | $ (1,453) | $ 1,236 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Warner Bros. Discovery, Inc. (“Warner Bros. Discovery”, “WBD”, the “Company”, “we”, “us” or “our”) is a leading global media and entertainment company that creates and distributes the world’s most differentiated and complete portfolio of content and brands across television, film and streaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, discovery+, CNN, DC, Eurosport, HBO, HBO Max, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Pictures, Warner Bros. Television, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. Merger with the WarnerMedia Business of AT&T On April 8, 2022 (the “Closing Date”), Discovery, Inc. (“Discovery”) completed its merger (the “Merger”) with the WarnerMedia business (the “WarnerMedia Business”, “WM Business” or “WM”) of AT&T Inc. (“AT&T”) and changed its name to “Warner Bros. Discovery, Inc.”. On April 11, 2022, the Company’s shares started trading on the Nasdaq Global Select Market (the “Nasdaq”) under the trading symbol WBD. The Merger was executed through a Reverse Morris Trust type transaction, under which WM was distributed to AT&T’s shareholders via a pro rata distribution, and immediately thereafter, combined with Discovery. (See Note 3.) Prior to the Merger, WarnerMedia Holdings, Inc. distributed $40.5 billion to AT&T (subject to working capital and other adjustments) in a combination of cash, debt securities, and WM's retention of certain debt. Discovery transferred purchase consideration of $42.4 billion in equity to AT&T shareholders. In August 2022, the Company and AT&T finalized the post-closing working capital settlement process, pursuant to section 1.3 of the Separation and Distribution Agreement, which will result in the Company receiving a $1.2 billion payment from AT&T in the third quarter of 2022, which is recorded in prepaid expenses and other current assets on the consolidated balance sheets at June 30, 2022. AT&T shareholders received shares of WBD Series A common stock (“WBD common stock”) in the distribution representing 71% of the combined company and the Company's pre-Merger shareholders continued to own 29% of the combined company, in each case on a fully diluted basis. Discovery was deemed to be the accounting acquirer of the WM Business for accounting purposes under U.S. generally accepted accounting principles (“U.S. GAAP”); therefore, Discovery is considered WBD’s predecessor and the historical financial statements of Discovery prior to April 8, 2022, are reflected in this Quarterly Report on Form 10-Q as WBD’s historical financial statements. Accordingly, the financial results of WBD as of and for any periods prior to April 8, 2022 do not include the financial results of the WM Business and current and future results will not be comparable to historical results. Segments In conjunction with the Merger, the Company reevaluated and changed its segment presentation during the quarter ended June 30, 2022. Accordingly, beginning in the quarter ended June 30, 2022, and for all periods presented, we are reporting results based on the following segments: Studios - Our Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and our networks/DTC services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. Networks - Our Networks segment primarily consists of our domestic and international television networks. Direct-to-consumer (“DTC”) - Our DTC segment primarily consists of our premium pay TV and digital content services. Impact of COVID-19 The Company continues to closely monitor the ongoing impact of COVID-19 on all aspects of its business and geographies, including the impact on its customers, employees, suppliers, vendors, distribution and advertising partners, production facilities, and various other third parties. Certain key sources of revenue for the Studios segment, including theatrical revenues, television production, studio operations and themed entertainment, have been adversely impacted by governmentally imposed shutdowns and related labor interruptions and constraints on consumer activity, particularly in the context of public entertainment venues, such as cinemas and theme parks. The nature and full extent of COVID-19’s effects on our operations and results are not yet known and will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity and the extent of future variants or surges of COVID-19, vaccine distribution and efficacy and other actions to contain the virus or treat its impact, among others. The consolidated financial statements reflect management’s estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. Actual results may differ significantly from these estimates and assumptions. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries in which a controlling interest is maintained, including variable interest entities (“VIE”) for which the Company is the primary beneficiary. Intercompany accounts and transactions between consolidated entities have been eliminated. Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”). Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, business combinations, share-based compensation, income taxes, other financial instruments, contingencies, estimated defined benefit plan liabilities, and the determination of whether the Company should consolidate certain entities. Summary of Significant Accounting Policies There have been no changes to the Company's significant accounting policies described in the 2021 Form 10-K, other than updates to policies as a result of the Merger as described below. Film and Television Content Rights The Company groups its film and television content rights by monetization strategy. For films and television programs predominantly monetized individually, the amount of capitalized film and television production costs and the amount of participations and residuals to be recognized as expense in a particular period are determined using the individual film forecast method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals are based on the proportion of the film’s or television program’s revenues recognized for such period to the film’s or television program’s estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film’s or television program’s remaining life cycle). The process of estimating ultimate revenues requires us to make a series of judgments related to future revenue-generating activities associated with a particular film. Prior to the theatrical release of a film, our estimates are based on factors such as the historical performance of similar films, the star power of the lead actors, the rating and genre of the film, pre-release market research (including test market screenings), international distribution plans and the expected number of theaters in which the film will be released. Subsequent to release, ultimate revenues are updated to reflect initial performance, which is often predictive of future performance. For a film or television program that is predominantly monetized on its own but also monetized with other films and/or programs (such as our DTC or linear services), we make a reasonable estimate of the value attributable to the film or program’s exploitation while monetized with other films/programs and expense such costs as the film or television program is exhibited. For theatrical films, the period over which ultimate revenues from all applicable sources and exhibition windows are estimated does not exceed 10 years from the date of the film’s initial release. For television programs, the ultimate period does not exceed 10 years from delivery of the first episode, or, if still in production, five years from delivery of the most recent episode, if later. Ultimates for produced content monetized on an individual basis are reviewed and updated (as applicable) on a quarterly basis; any adjustments are applied prospectively as of the beginning of the fiscal year of the change. For programs monetized as a group, including licensed programming, the Company’s film groups are generally aligned along the Company’s networks and digital content offerings, except for certain international territories wherein content assets are shared across the various networks in the territory and therefore, the territory is the film group. Amortization expense for each period is generally based on the revenue forecast model, which approximates the proportion that estimated distribution and advertising revenues for the current period represent in relation to the estimated remaining total lifetime revenues. Digital content and premium pay TV amortization for each period is recognized based on estimated viewing patterns as there are generally no direct revenues to associate to the individual content assets and therefore number of views is most representative of the use of the title. Licensed rights to film and television programming are typically amortized over the useful life of the program’s license period on a straight-line basis (or per-play basis, if greater, for certain programming on our ad-supported networks), or accelerated basis for licensed original programs. Quarterly, the Company prepares analyses to support its content amortization expense. Critical assumptions used in determining content amortization for programming predominately monetized as a group include: (i) the grouping of content with similar characteristics, (ii) the application of a quantitative revenue forecast model or viewership model based on the adequacy of historical data, (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the forecast model, and (iv) incorporating secondary streams. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of cable and satellite television subscribers receiving the Company’s networks, the number of subscribers to its digital services, and program usage. Accordingly, the Company continually reviews its estimates and planned usage and revises its assumptions if necessary. Any material adjustments from the Company’s review of the amortization rates for assets in film groups are applied prospectively in the period of the change. Unamortized film costs are tested for impairment whenever events or changes in circumstances indicate that the fair value of a film (or television program) predominately monetized on its own, or a film group, may be less than its unamortized costs. In addition, a change in the predominant monetization strategy is considered a triggering event for impairment testing before a title is accounted for as part of a film group. If the carrying value of an individual feature film or television program, or film group, exceeds the estimated fair value, an impairment charge will be recorded in the amount of the difference. For content that is predominately monetized individually, we utilize estimates including ultimate revenues and additional costs to be incurred (including exploitation and participation costs), in order to determine whether the carrying value of a film or television program is impaired. Game development costs are expensed as incurred before the applicable games reach technological feasibility, or for online hosted arrangements, before the preliminary project phase is complete and it is probable the project will be completed and the software will be used to perform the function intended. Upon release, the capitalized game development costs are amortized based on the proportion of the game’s revenues recognized for such period to the game’s total current and anticipated revenues. Unamortized capitalized game production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in “Film and television content rights and games, net” on the consolidated balance sheets. Inventory Inventory is comprised primarily of DVDs, Blu-ray Discs and game units and is stated at the lower of cost or net realizable value in prepaid expenses and other current assets on the consolidated balance sheets. Cost is determined using the average cost method for the majority of our inventory, with the remaining inventory valued using the standard cost method, which approximates average cost. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost. The Company periodically reviews its inventory for excess and obsolete inventory. The Company's inventory consisted of the following (in millions). June 30, 2022 December 31, 2021 Raw materials $ 6 $ — Work in process 6 — Finished goods 127 1 Total inventory $ 139 $ 1 Defined Benefit Plan The Company maintains a defined benefit pension plan covering certain employees. Defined benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Accounting and Reporting Pronouncements Adopted LIBOR In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance providing optional expedients and exceptions for applying U.S. GAAP to contract modifications, hedging relationships, and other transactions associated with the expected market transition away from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance is for March 12, 2020 through December 31, 2022 and may not be applied to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The Company applied the relevant provisions of the guidance to hedge relationships that were subsequently terminated in the first quarter of 2022. Convertible Instruments In August 2020, the FASB issued guidance simplifying the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This guidance amends the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions, requires the use of the if-converted method for calculating earnings per share for convertible instruments, and makes targeted improvements to the disclosures for convertible instruments and related earnings per share guidance. The Company adopted the guidance effective January 1, 2022, and there was no material impact on its consolidated financial statements. Accounting and Reporting Pronouncements Not Adopted Government Assistance In November 2021, the FASB issued guidance requiring disclosure for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy to other guidance. The annual disclosures include terms and conditions, accounting treatment and impacted financial statement lines reflecting the impact of the transactions. The guidance is effective for annual periods beginning after December 15, 2021. The Company is currently assessing the impact this guidance will have on its consolidated financial statements and related disclosures. |
Equity and Earnings Per Share
Equity and Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Equity And Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Common Stock Issued in Connection with the WarnerMedia Merger In connection with the Merger, each issued and outstanding share of Discovery Series A common stock, Discovery Series B common stock, and Discovery Series C common stock, was reclassified and automatically converted into one share of WBD common stock, and each issued and outstanding share of Discovery Series A-1 convertible preferred stock (“Series A-1 Preferred Stock”) and Series C-1 convertible preferred stock was reclassified and automatically converted into 13.1135 and 19.3648 shares of WBD common stock, respectively. The Merger required the consent of Advance/Newhouse Programming Partnership under Discovery's certificate of incorporation as the sole holder of the Series A-1 Preferred Stock. In connection with Advance/Newhouse Programming Partnership’s entry into the consent agreement and related forfeiture of the significant rights attached to the Series A-1 Preferred Stock in the reclassification of the shares of Series A-1 Preferred Stock into common stock, it received an increase to the number of shares of common stock of the Company into which the Series A-1 Preferred Stock converted. The impact of the issuance of such additional shares of common stock was $789 million and was recorded as a transaction expense in selling, general and administrative expense upon the closing of the Merger. Earnings Per Share All share and per share amounts have been retrospectively adjusted to reflect the reclassification and automatic conversion into WBD common stock, except for Series A-1 Preferred Stock, which has not been recast because the conversion of Series A-1 Preferred Stock into WBD common stock in connection with the Merger was considered a discrete event and treated prospectively. The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ (3,408) $ 718 $ (2,933) $ 909 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (72) (49) (87) Net income attributable to noncontrolling interests (7) (38) (23) (84) Net income attributable to redeemable noncontrolling interests (3) (8) (6) (13) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net income per share $ (3,418) $ 600 $ (3,011) $ 725 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 72 $ — $ 87 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net income per share $ (3,418) $ 672 $ (3,011) $ 812 Denominator — weighted average: Common shares outstanding — basic 2,286 589 1,443 587 Impact of assumed preferred stock conversion — 71 — 71 Dilutive effect of share-based awards — 4 — 8 Common shares outstanding — diluted 2,286 664 1,443 666 Basic net (loss) income per share allocated to common stockholders $ (1.50) $ 1.02 $ (2.09) $ 1.23 Diluted net (loss) income per share allocated to common stockholders $ (1.50) $ 1.01 $ (2.09) $ 1.22 The table below presents the details of share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Anti-dilutive share-based awards 57 16 45 6 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions WarnerMedia On April 8, 2022, the Company completed its Merger with the WarnerMedia Business of AT&T. The Merger was executed through a Reverse Morris Trust type transaction, under which WM was distributed to AT&T’s shareholders via a pro-rata distribution, and immediately thereafter, combined with Discovery. Discovery was deemed to be the accounting acquirer of WM. The Merger combined WM’s content library of popular and valuable intellectual property with Discovery’s global footprint, collection of local-language content and deep regional expertise across more than 220 countries and territories. The Company expects this broad, worldwide portfolio of brands, coupled with its DTC potential and the attractiveness of the combined assets, to result in increased market penetration globally. The Merger is also expected to create significant cost synergies for the Company. Purchase Price The following table summarizes the components of the aggregate purchase consideration paid to acquire WM (in millions) and is subject to adjustments. Fair value of WBD common stock issued to AT&T shareholders (1) $ 42,309 Estimated fair value of share-based compensation awards attributable to pre-combination services (2) 94 Settlement of preexisting relationships (3) (27) Preliminary purchase consideration $ 42,376 (1) The fair value of WBD common stock issued to AT&T shareholders represents approximately 1,732 million shares of the Company’s common stock multiplied by the closing share price for Discovery Series A common stock of $24.43 on the Nasdaq on the Closing Date. The number of shares of WBD common stock issued in the Merger was determined based on the number of fully diluted shares of Discovery, Inc. common stock immediately prior to the closing of the Merger, multiplied by the quotient of 71%/29%. (2) This amount represents the value of AT&T restricted stock unit awards that were not vested and were replaced by WBD restricted stock unit awards with similar terms and conditions as the original AT&T awards. The conversion was based on the ratio of the volume-weighted average per share closing price of AT&T common stock on the ten trading days prior to the Closing Date and the volume-weighted average per share closing price of WBD common stock on the ten trading days following the Closing Date. The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger. See Note 14 for additional information. (3) The amount represents the effective settlement of outstanding payables and receivables between the Company and WM. No gain or loss was recognized upon settlement as amounts were determined to be reflective of fair market value. Balances reflect rounding of dollar and share amounts to millions, which may result in differences for recalculated standalone amounts compared with the amounts presented above. Preliminary Purchase Price Allocation The Company applied the acquisition method of accounting to WM, whereby the excess of the fair value of the purchase price paid over the fair value of identifiable net assets acquired and liabilities assumed was allocated to goodwill. Goodwill reflects the assembled workforce of WM as well as revenue enhancements, cost savings and operating synergies that are expected to result from the Merger. The goodwill recorded as part of the Merger has been provisionally allocated to the Studios, Networks and DTC reportable segments in the amount of $8,912 million, $7,016 million and $5,585 million, respectively, and is not deductible for tax purposes. The purchase price allocation is preliminary and subject to change. The Company is still evaluating the fair value of film and television library, intangible assets, and income taxes, in addition to ensuring all other assets and liabilities and contingencies have been identified and recorded. The Company has estimated the preliminary fair value of assets acquired and liabilities assumed based on information currently available and will continue to adjust those estimates as additional information pertaining to events or circumstances present at the Closing Date becomes available during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments occur, and the Company will finalize its accounting for the Merger within one year of the Closing Date. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred is presented in the table below (in millions). Preliminary Cash $ 2,419 Accounts receivable 4,224 Other current assets 4,619 Film and television library 28,729 Property and equipment 4,260 Goodwill 21,513 Intangible assets 44,889 Other noncurrent assets 5,206 Current liabilities (10,544) Debt assumed (41,671) Deferred income taxes (13,264) Other noncurrent liabilities (8,004) Total consideration paid $ 42,376 The fair values of the assets acquired, and liabilities assumed were preliminarily determined using the income, cost, and market approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market, such as discounted cash flow analyses, and thus represent a Level 3 measurement. Significant inputs used in the discounted cash flow analyses and other areas of judgment include (i) historical and projected financial information, (ii) discount rates used to present value future cash flows, (iii) royalty rates, (iv) number of renewals for affiliate contracts, (v) synergies, including cost savings, (vi) tax rates, (vii) economic useful life of assets, and (viii) attrition rates, as relevant, that market participants would consider when estimating fair values. The following are the preliminary fair value approaches followed: Category Valuation Method Trade names Relief from royalty method of the income approach Film and TV content library Multi-period excess earnings method of the income approach; net book value Affiliate contracts Multi-period excess earnings method of the income approach Franchises Multi-period excess earnings method of the income approach Other intangible assets Multi-period excess earnings method of the income approach Licensed content Net book value method Licensed sports rights Differential method, a form of the incremental income approach In-place advertising networks With-or-without method, a form of the income approach Subscriber relationships Replacement cost method of the cost approach Real estate, property and equipment Cost approach or the income approach, which estimates the value of property based on the income it generates or the market approach, which determines values based on comparable assets purchased under similar conditions Current and noncurrent debt assumed comprising existing debt of WM, the Term Loan, and the Notes Quoted prices for identical or similar securities in active markets The table below presents a summary of intangible assets acquired, exclusive of content assets, and the weighted average useful life of these assets. Fair Value Weighted Average Useful Life in Years Trade names $ 21,084 25 Affiliate, advertising and subscriber relationships 14,700 6 Franchises 7,900 35 Other intangible assets 1,205 Total intangible assets acquired $ 44,889 The Company incurred transaction-related costs of $194 million and $281 million for the three and six months ended June 30, 2022, respectively. These costs were associated with legal and professional services and were recognized as operating expenses on the consolidated statement of operations. Additionally, the expense related to the issuance of additional shares of common stock in connection with the conversion of Advance/Newhouse Programming's Series A-1 Preferred Stock was $789 million and was recorded as a transaction expense in selling, general and administrative expense upon the closing of the Merger. (See Note 2.) As a result of the Merger, WM's assets, liabilities, and operations were included in the Company's consolidated financial statements from the Closing Date. The following table presents WM revenue and earnings as reported within the consolidated financial statements (in millions). Three and Six Months Ended June 30, 2022 Revenues: Advertising $ 1,163 Distribution 3,526 Content 2,835 Other 208 Total revenues $ 7,732 Net loss available to Warner Bros. Discovery, Inc. $ (2,911) Pro Forma Combined Financial Information The following unaudited pro forma combined financial information presents the combined results of the Company and WM as if the Merger had been completed on January 1, 2021. The unaudited pro forma combined financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the Merger had occurred on January 1, 2021, nor is it indicative of future results. The following table presents the Company's pro forma combined revenues and net income (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 10,823 $ 11,211 $ 22,264 $ 21,933 Net loss available to Warner Bros. Discovery, Inc. (2,151) (341) (2,437) (1,912) The unaudited pro forma combined financial information includes, where applicable, adjustments for (i) additional costs of revenues from the fair value step up of film and television library, (ii) additional amortization expense related to acquired intangible assets, (iii) additional depreciation expense from the fair value of property and equipment, (iv) transaction costs and other one-time non-recurring costs, (v) additional interest expense for borrowings related to the Merger and amortization associated with fair value adjustments of debt assumed, (vi) changes to align accounting policies, (vii) elimination of intercompany activity, and (viii) associated tax-related impacts of adjustments. These pro forma adjustments are based on available information as of the date hereof and upon assumptions that the Company believes are reasonable to reflect the impact of the Merger with WM on the Company's historical financial information on a supplemental pro forma basis. Adjustments do not include costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined business. Dispositions In April 2022, the Company completed the sale of its minority interest in Discovery Education for a sale price of $138 million and recorded a gain of $133 million. In June 2021, the Company completed the sale of its Great American Country network to Hicks Equity Partners for a sale price of $90 million and recorded a gain of $76 million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows (in millions). U.S. International Studios Networks DTC Total December 31, 2021 $ 10,813 $ 2,099 $ — $ — $ — $ 12,912 Segment recast (See Note 20) (10,813) (2,059) — 10,555 2,317 — Acquisitions (See Note 3) — — 8,912 7,016 5,585 21,513 Foreign currency translation and other — (40) — (92) (20) (152) June 30, 2022 $ — $ — $ 8,912 $ 17,479 $ 7,882 $ 34,273 The carrying amount of goodwill at the Networks segment included accumulated impairments of $1.6 billion as of June 30, 2022 and December 31, 2021. The carrying amount of goodwill at the Studios and DTC segments did not include any accumulated impairments as of June 30, 2022 and December 31, 2021. Intangible Assets Finite-lived intangible assets consisted of the following (in millions, except years). Weighted June 30, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Trademarks and trade names 32 $ 22,918 $ (1,064) $ 21,854 $ 1,716 $ (858) $ 858 Customer relationships 8 24,029 (6,307) 17,722 9,433 (4,303) 5,130 Franchises 35 7,900 (51) 7,849 — — — Character rights 14 995 (16) 979 — — — Other 6 569 (249) 320 395 (227) 168 Total $ 56,411 $ (7,687) $ 48,724 $ 11,544 $ (5,388) $ 6,156 Amortization expense relating to finite-lived intangible assets was $2,004 million and $268 million for the three months ended June 30, 2022 and 2021, respectively, and $2,439 million and $548 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions). Remaining 2022 2023 2024 2025 2026 Thereafter Amortization expense $ 3,790 $ 6,497 $ 4,976 $ 3,600 $ 2,590 $ 27,271 Indefinite-lived intangible assets not subject to amortization (in millions): June 30, 2022 December 31, 2021 Trademarks $ — $ 161 Impairment Analysis During the second quarter of 2022, the Company performed a qualitative goodwill impairment assessment for all reporting units in conjunction with the change in its segment presentation, and determined that it was more likely than not that the fair value of those reporting units exceeded their carrying values; therefore, no quantitative goodwill impairment analysis was performed. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES Restructuring and other charges by reportable segments and corporate were as follows (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 200 $ — $ 200 $ — Networks 308 7 312 21 DTC 475 — 475 1 Corporate 50 — 51 — Total restructuring and other charges $ 1,033 $ 7 $ 1,038 $ 22 Restructuring charges include content impairments of $496 million, employee terminations of $208 million, and content development write-offs of $329 million for the three months ended June 30, 2022. Content impairments and development write-offs resulted from a global strategic review of content following the Merger. Employee terminations relate to cost reduction efforts and management changes. These charges resulted from activities to integrate WM and establish an efficient cost structure. Changes in restructuring and other liabilities recorded in accrued liabilities by major category and by reportable segment and corporate were as follows (in millions). U.S. Networks International Networks Studios Networks DTC Corporate Total December 31, 2021 $ 4 $ 13 $ — $ — $ — $ 2 $ 19 Segment recast (See Note 20) (4) (13) — 15 — 2 — Acquisitions (See Note 3) — — 40 — 14 55 109 Employee termination accruals, net — — 54 16 13 126 209 Cash paid — — (10) (6) (3) (15) (34) June 30, 2022 $ — $ — $ 84 $ 25 $ 24 $ 170 $ 303 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following table presents the Company’s revenues disaggregated by revenue source (in millions). Three Months Ended June 30, 2022 Studios Networks DTC Corporate Total Revenues: Advertising $ 10 $ 2,624 $ 96 $ (9) $ 2,721 Distribution 4 2,841 1,993 — 4,838 Content 2,636 220 132 (924) 2,064 Other 146 57 4 (3) 204 Total $ 2,796 $ 5,742 $ 2,225 $ (936) $ 9,827 Three Months Ended June 30, 2021 Studios Networks DTC Corporate Total Revenues: Advertising $ — $ 1,601 $ 33 $ — $ 1,634 Distribution — 1,132 180 — 1,312 Content 2 96 2 — 100 Other — 15 1 — 16 Total $ 2 $ 2,844 $ 216 $ — $ 3,062 Six Months Ended June 30, 2022 Studios Networks DTC Corporate Total Revenues: Advertising $ 10 $ 4,054 $ 142 $ (9) $ 4,197 Distribution 4 3,961 2,225 — 6,190 Content 2,641 536 134 (924) 2,387 Other 146 64 5 (3) 212 Total $ 2,801 $ 8,615 $ 2,506 $ (936) $ 12,986 Six Months Ended June 30, 2021 Studios Networks DTC Corporate Total Revenues: Advertising $ — $ 2,993 $ 50 $ — $ 3,043 Distribution — 2,281 289 — 2,570 Content 7 202 3 — 212 Other — 28 1 — 29 Total $ 7 $ 5,504 $ 343 $ — $ 5,854 Reserves for Credit Losses Reserves for accounts receivable reflect expected credit losses, which are estimated based on historical experience, as well as current and expected economic conditions and industry trends. The allowance for credit losses was $138 million at June 30, 2022 and $54 million at December 31, 2021. The increase was primarily attributable to the acquisition of existing WM receivables in the Merger with WM. The corresponding expense for the expected credit losses is reflected in selling, general and administrative expenses. Contract Assets and Liabilities A contract asset is recorded when revenue is recognized in advance of the Company's right to bill and receive consideration and that right is conditioned upon something other than the passage of time. A contract liability, such as deferred revenue, is recorded when the Company has recorded billings in conjunction with its contractual right or when cash is received in advance of the Company's performance. The following table presents contract assets and liabilities on the consolidated balance sheets (in millions). Category Balance Sheet Location June 30, 2022 December 31, 2021 Contract Assets Prepaid expenses and other current assets $ 12 $ — Contract Assets Other noncurrent assets 26 — Contract Liabilities Deferred revenues 1,663 478 Contract Liabilities Other noncurrent liabilities 242 95 The change in deferred revenue for the six months ended June 30, 2022 primarily reflects an increase of $1,476 million related to the Merger and cash payments received for which the performance obligation was not satisfied prior to the end of the period, partially offset by $347 million of revenues recognized that were included in the deferred revenue balance at December 31, 2021. Revenue recognized for the six months ended June 30, 2021 related to the deferred revenue balance at December 31, 2020 was $162 million. Transaction Price Allocated to Remaining Performance Obligations Most of the Company's distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which the guidance allows the application of a practical expedient to record revenues as a function of royalties earned to date instead of estimating incremental royalty contract revenue. Accordingly, in these instances revenue is recognized based upon the royalties earned to date. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts on a monthly basis based on minimum monthly fees; by calculating one twelfth of annual license fees specified in its distribution contracts; or based on the pro-rata fees earned calculated on the license fees specified in the distribution contract. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $2.7 billion as of June 30, 2022 and is expected to be recognized over the next seven years. The Company's content licensing contracts and sports sublicensing deals are licenses of functional intellectual property. The transaction price allocated to remaining performance obligations on these contracts was $5.2 billion as of June 30, 2022 and is expected to be recognized over the next seven years. The Company's brand licensing contracts are licenses of symbolic intellectual property. The transaction price allocated to remaining performance obligations on these contracts was $2.3 billion as of June 30, 2022 and is expected to be recognized over the next 21 years. The Company's advertising contracts are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $595 million as of June 30, 2022 and is expected to be recognized over the next three years. The value of unsatisfied performance obligations disclosed above does not include: (i) contracts involving variable consideration for which revenues are recognized in accordance with the sales or usage-based royalty exception, and (ii) contracts with an original expected length of one year or less, such as most advertising contracts; however for content licensing revenues, including revenues associated with the licensing of theatrical and television product for television and streaming services, the Company has included all contracts regardless of duration. |
Sales of Receivables
Sales of Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
SALES OF RECEIVABLES | SALES OF RECEIVABLES Revolving Receivables Program The Company has a revolving agreement to transfer up to $6,000 million of certain receivables through its bankruptcy-remote subsidiary Warner Bros. Discovery Receivables Funding, LLC to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. The Company services sold receivables for a fee and pays fees to the financial institution in connection with this revolving agreement. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded from time to time. As customers pay their balances the Company’s available capacity under this revolving agreement increases and typically the Company transfers additional receivables into the program. Our bankruptcy-remote consolidated subsidiary held $1,287 million of cash and $1,838 million of pledged receivables as of June 30, 2022 in connection with this revolving agreement. The gross value of the proceeds received results in derecognition of receivables and the obligations assumed are recorded at fair value. The obligation is subsequently adjusted for changes in estimated expected credit losses and interest rates, which are considered Level 3 fair value measurements since the inputs are unobservable. For the three and six months ended June 30, 2022, the Company has recognized a $41 million net loss in selling, general and administrative expense from the revolving receivables program in the consolidated statements of operations. The outstanding portfolio of receivables derecognized from our consolidated balance sheets was $5,700 million as of June 30, 2022. The following table presents a summary of receivables sold (in millions). Three Months Ended June 30, 2022 Gross receivables sold/cash proceeds received $ 3,205 Collections reinvested under revolving agreement (3,505) Net cash proceeds received $ (300) Net receivables sold $ 3,198 Obligations recorded $ 98 The following table presents a summary of the amounts transferred or pledged (in millions): June 30, 2022 Gross receivables pledged as collateral $ 1,838 Restricted cash pledged as collateral $ 1,287 Balance sheet classification: Receivables, net $ 1,629 Prepaid expenses and other current assets $ 1,287 Other noncurrent assets $ 209 Accounts Receivable Factoring The Company has a factoring agreement to sell certain of its non-U.S. trade accounts receivable on a non-recourse basis to a third-party financial institution. The Company accounts for these transactions as sales in accordance with ASC 860, "Transfers and Servicing", when its continuing involvement subsequent to the transfer is limited to providing certain servicing and collection actions on behalf of the purchaser of the designated trade accounts receivable. Proceeds from amounts factored are recorded as an increase to cash and cash equivalents and a reduction to receivables, net in the consolidated balance sheets. Cash received is also reflected as cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring arrangements were $103 million as of June 30, 2022. The impact to the consolidated statements of operations was immaterial for the three and six months ended June 30, 2022. This accounts receivable factoring agreement is separate and distinct from the revolving receivables program. |
Content Rights
Content Rights | 6 Months Ended |
Jun. 30, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
CONTENT RIGHTS | CONTENT RIGHTS For purposes of amortization and impairment, the capitalized content costs are grouped based on their predominant monetization strategy: individually or as a group. The table below presents the components of content rights (in millions). June 30, 2022 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 3,120 $ — $ 3,120 Completed and not released 318 — 318 In production 1,865 — 1,865 Development and pre-production 144 — 144 Television production costs: Released, less amortization 1,585 7,010 8,595 Completed and not released 649 733 1,382 In production 490 3,711 4,201 Development and pre-production 37 19 56 Total theatrical film and television production costs $ 8,208 $ 11,473 $ 19,681 Programming and game costs: Programming costs, less amortization (a) 10,288 Game development costs, less amortization 656 Total film and television content rights and games 30,625 Less: Current content rights and prepaid license fees, net (505) Total noncurrent film and television content rights and games, net $ 30,120 December 31, 2021 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ — $ — $ — Completed and not released — — — In production — — — Development and pre-production — — — Television production costs: Released, less amortization 9 2,432 2,441 Completed and not released — — — In production — 770 770 Development and pre-production — 17 17 Total theatrical film and television production costs $ 9 $ 3,219 3,228 Programming and game costs: Programming costs, less amortization (a) 849 Game development costs, less amortization — Total film and television content rights 4,077 Less: Current content rights and prepaid license fees, net (245) Total noncurrent film and television content rights, net $ 3,832 (a) Includes the costs of licensed programming rights, including payments that have been made prior to the related rights being received (primarily for sports). Content expense consisted of the following (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Monetized individually Content amortization $ 1,927 $ 25 $ 2,177 $ 49 Content impairments 94 — 94 — Total content expense monetized individually $ 2,021 $ 25 $ 2,271 $ 49 Monetized as a group Content amortization $ 3,189 $ 747 $ 3,908 $ 1,466 Content impairments 408 1 412 1 Total content expense monetized as a group $ 3,597 $ 748 $ 4,320 $ 1,467 Total content expense $ 5,618 $ 773 $ 6,591 $ 1,516 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The Company’s equity investments consisted of the following, net of investments recorded in other noncurrent liabilities (in millions). Category Balance Sheet Location Ownership June 30, 2022 December 31, 2021 Equity method investments: The Chernin Group (TCG) 2.0-A, LP Other noncurrent assets 44% $ 352 $ — nC+ Other noncurrent assets 32% 129 151 Other Other noncurrent assets 683 390 Total equity method investments 1,164 541 Investments with readily determinable fair values Other noncurrent assets 45 80 Investments with readily determinable fair values Prepaid expenses and other current assets 14 40 Total investments with readily determinable fair values 59 120 Investments without readily determinable fair values Other noncurrent assets 637 496 Total investments $ 1,860 $ 1,157 Equity Method Investments Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary or the entity is not a VIE and the Company does not have a controlling financial interest. In conjunction with the Merger, the Company acquired $671 million of equity method investments. Impairment losses are recorded in loss from equity investees, net on the consolidated statements of operations. Impairment losses for the three and six months ended June 30, 2022 were not material. Certain of the Company's other equity method investments are VIEs, for which the Company is not the primary beneficiary. As of June 30, 2022, the Company’s maximum exposure for all of its unconsolidated VIEs, including the investment carrying values and unfunded contractual commitments made on behalf of VIEs, was approximately $810 million. The Company's maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $772 million as of June 30, 2022 and $126 million as of December 31, 2021. VIE gains and losses are recorded in loss from equity investees, net on the consolidated statements of operations, and were not material for the three and six months ended June 30, 2022 and 2021. Investments with Readily Determinable Fair Value Investments in entities or other securities in which the Company has no control or significant influence, is not the primary beneficiary, and have a readily determinable fair value are classified as equity investments with readily determinable fair value. The investments are measured at fair value based on a quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs (Level 1). Gains and losses are recorded in other (expense) income, net on the consolidated statements of operations. The gains and losses related to the Company's investments with readily determinable fair values for the three and six months ended June 30, 2022 and 2021 are summarized in the table below (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net (losses) gains recognized during the period on equity securities $ (41) $ 29 $ (61) $ 62 Less: Net gains recognized on equity securities sold — — — 16 Unrealized (losses) gains recognized during reporting period on equity securities still held at the reporting date $ (41) $ 29 $ (61) $ 46 Equity investments without readily determinable fair values assessed under the measurement alternative Equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. In conjunction with the Merger, the Company acquired $156 million in equity method investments without readily determinable fair values. During the six months ended June 30, 2022, the Company did not invest in any material equity investments without readily determinable fair values and concluded there were no indicators that a change in fair value had taken place. As of June 30, 2022, the Company had recorded cumulative upward adjustments of $9 million and cumulative impairments of $88 million for its equity investments without readily determinable fair values. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The table below presents the components of outstanding debt (in millions). Weighted-Average June 30, 2022 December 31, 2021 Term loans with maturities of 3 years or less 2.32 % $ 6,500 $ — Floating rate senior notes with maturities of 5 years or less 2.31 % 500 — Senior notes with maturities of 5 years or less 3.60 % 13,742 4,314 Senior notes with maturities between 5 and 10 years 4.25 % 10,373 4,128 Senior notes with maturities greater than 10 years 5.11 % 21,644 6,745 Total debt 52,759 15,187 Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net (274) (428) Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, 52,485 14,759 Current portion of debt (1,097) (339) Noncurrent portion of debt $ 51,388 $ 14,420 During the three months ended June 30, 2022, the Company repaid $3.5 billion of aggregate principal amount outstanding of its term loans due October 2023 and April 2025. The Company also assumed $41.5 billion of senior notes (at par value) and term loans during the Merger. During the three months ended March 31, 2022, the Company repaid in full at maturity $327 million aggregate principal amount outstanding of its 2.375% Euro Denominated Senior Notes due March 2022. In the third quarter of 2021, the Company redeemed in full $168 million aggregate principal amount outstanding of its 3.300% Senior Notes due May 2022 and $62 million aggregate principal amount outstanding of its 3.500% Senior Notes due June 2022. In the first quarter of 2021, the Company redeemed in full $335 million aggregate principal amount outstanding of its 4.375% Senior Notes due June 2021. The redemptions during 2022 and 2021 resulted in an immaterial loss on extinguishment of debt. As of June 30, 2022, all senior notes are fully and unconditionally guaranteed by the Company, Scripps Networks Interactive, Inc. ("Scripps Networks"), Discovery Communications, LLC ("DCL") (to the extent it is not the primary obligor on such senior notes), and WarnerMedia Holdings, Inc. (to the extent it is not the primary obligor on such senior notes), except for $1.5 billion of senior notes of the legacy WarnerMedia Business assumed by the Company in connection with the Merger and $23 million of un-exchanged senior notes issued by Scripps Networks. Additionally, the term loans of WarnerMedia Holdings, Inc., made under the $10 billion term loan credit agreement (the "Term Loan Credit Agreement"), are fully and unconditionally guaranteed by the Company, Scripps Networks, and DCL. Revolving Credit Facility and Commercial Paper Programs In June 2021, DCL entered into a multicurrency revolving credit agreement (the “Revolving Credit Agreement”), replacing the existing $2.5 billion credit agreement, dated February 4, 2016, as amended. Following the Merger, DCL has the capacity to borrow up to $6.0 billion under the Revolving Credit Agreement (the “Credit Facility”). The Revolving Credit Agreement includes a $150 million sublimit for the issuance of standby letters of credit. DCL may also request additional commitments up to $1 billion from the lenders upon satisfaction of certain conditions. Obligations under the Revolving Credit Agreement are unsecured and are fully and unconditionally guaranteed by the Company, Scripps Networks, and WarnerMedia Holdings, Inc. The Credit Facility will be available on a revolving basis until June 2026, with an option for up to two additional 364-day renewal periods subject to the lenders' consent. The Revolving Credit Agreement contains customary representations and warranties as well as affirmative and negative covenants. Additionally, the Company's commercial paper program is supported by the Credit Facility. Under the commercial paper program, the Company may issue up to $1.5 billion, including up to $500 million of euro-denominated borrowings. Borrowing capacity under the Credit Facility is effectively reduced by any outstanding borrowings under the commercial paper program. As of June 30, 2022 and December 31, 2021, the Company had no outstanding borrowings under the Credit Facility or the commercial paper program. Credit Agreement Financial Covenants |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating and finance leases for transponders, office space, studio facilities, and other equipment. Our leases have remaining lease terms of up to 15 years, some of which include options to extend the leases for up to 10 years . Most leases are not cancelable prior to their expiration. In conjunction with the Merger, the Company acquired $2,493 million and $47 million of operating and finance lease right-of-use assets, respectively. The components of lease cost were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 116 $ 26 $ 138 $ 53 Finance lease cost: Amortization of right-of-use assets $ 20 $ 14 $ 37 $ 28 Interest on lease liabilities 2 2 4 4 Total finance lease cost $ 22 $ 16 $ 41 $ 32 Variable lease cost $ 6 $ 1 $ 7 $ 4 Total lease cost $ 144 $ 43 $ 186 $ 89 Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (142) $ (56) Operating cash flows from finance leases $ (7) $ (4) Financing cash flows from finance leases $ (39) $ (33) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7 $ 7 Finance leases $ 23 $ 59 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 2,918 $ 535 Operating lease liabilities (current) Accrued liabilities $ 335 $ 62 Operating lease liabilities (noncurrent) Other noncurrent liabilities 2,678 567 Total operating lease liabilities $ 3,013 $ 629 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 275 $ 249 Finance lease liabilities (current) Accrued liabilities $ 78 $ 58 Finance lease liabilities (noncurrent) Other noncurrent liabilities 206 197 Total finance lease liabilities $ 284 $ 255 June 30, 2022 December 31, 2021 Weighted average remaining lease term (in years): Operating leases 11 12 Finance leases 5 5 Weighted average discount rate: Operating leases 3.83 % 2.94 % Finance leases 3.13 % 3.57 % Maturities of lease liabilities as of June 30, 2022 were as follows (in millions): Operating Leases Finance Leases 2022 (excluding the two quarters ended June 30, 2022) $ 260 $ 79 2023 425 75 2024 373 57 2025 319 37 2026 289 26 Thereafter 2,070 34 Total lease payments 3,736 308 Less: Imputed interest (723) (24) Total $ 3,013 $ 284 As of June 30, 2022, the Company has additional leases that have not yet commenced with total minimum lease payments of $1,175 million, primarily related to facility leases. The remaining leases will commence between 2022 and 2023, have lease terms of 3 to 27 years, and include options to extend the terms for up to 10 additional years. |
LEASES | LEASES The Company has operating and finance leases for transponders, office space, studio facilities, and other equipment. Our leases have remaining lease terms of up to 15 years, some of which include options to extend the leases for up to 10 years . Most leases are not cancelable prior to their expiration. In conjunction with the Merger, the Company acquired $2,493 million and $47 million of operating and finance lease right-of-use assets, respectively. The components of lease cost were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 116 $ 26 $ 138 $ 53 Finance lease cost: Amortization of right-of-use assets $ 20 $ 14 $ 37 $ 28 Interest on lease liabilities 2 2 4 4 Total finance lease cost $ 22 $ 16 $ 41 $ 32 Variable lease cost $ 6 $ 1 $ 7 $ 4 Total lease cost $ 144 $ 43 $ 186 $ 89 Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (142) $ (56) Operating cash flows from finance leases $ (7) $ (4) Financing cash flows from finance leases $ (39) $ (33) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7 $ 7 Finance leases $ 23 $ 59 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 2,918 $ 535 Operating lease liabilities (current) Accrued liabilities $ 335 $ 62 Operating lease liabilities (noncurrent) Other noncurrent liabilities 2,678 567 Total operating lease liabilities $ 3,013 $ 629 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 275 $ 249 Finance lease liabilities (current) Accrued liabilities $ 78 $ 58 Finance lease liabilities (noncurrent) Other noncurrent liabilities 206 197 Total finance lease liabilities $ 284 $ 255 June 30, 2022 December 31, 2021 Weighted average remaining lease term (in years): Operating leases 11 12 Finance leases 5 5 Weighted average discount rate: Operating leases 3.83 % 2.94 % Finance leases 3.13 % 3.57 % Maturities of lease liabilities as of June 30, 2022 were as follows (in millions): Operating Leases Finance Leases 2022 (excluding the two quarters ended June 30, 2022) $ 260 $ 79 2023 425 75 2024 373 57 2025 319 37 2026 289 26 Thereafter 2,070 34 Total lease payments 3,736 308 Less: Imputed interest (723) (24) Total $ 3,013 $ 284 As of June 30, 2022, the Company has additional leases that have not yet commenced with total minimum lease payments of $1,175 million, primarily related to facility leases. The remaining leases will commence between 2022 and 2023, have lease terms of 3 to 27 years, and include options to extend the terms for up to 10 additional years. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. Cash Flow Hedges On January 1, 2022, the Company discontinued hedge accounting for certain forward starting interest rate swap contracts with a total notional value of $2 billion. The Company previously recognized a gain of $33 million in accumulated other comprehensive loss that will be amortized as an adjustment to interest expense, net over the respective terms of future issuances of debt. Subsequently, the Company unwound and settled the contracts and received cash of $122 million, including an $89 million realized gain for changes in fair market value between the dedesignation date and settlement date that was recognized in other (expense) income, net in the consolidated statements of operations. In connection with the Merger, the Company acquired two cash flow hedging programs to mitigate foreign currency risk including $922 million notional of production expense hedges and $776 million notional of production rebate hedges. These cash flow hedging programs are carried at fair market value using the spot method, with fair market value changes recorded in other comprehensive income until the production airs. Excluded components of the fair market value, including forward points, are included in current earnings. Net Investment Hedges During the three months ended March 31, 2022, the Company unwound and settled certain fixed-to-fixed cross-currency swaps with a total notional value of $705 million associated with the Company's Euro functional subsidiaries. The Company recognized a realized gain of $10 million related to the excluded component of the hedge relationship in other (expense) income, net in the consolidated statements of operations, and recognized a gain of $6 million in accumulated other comprehensive loss. Also during the three months ended March 31, 2022, the Company executed cross currency swaps with a notional value of $664 million with expiration dates in 2025 to replace the aforementioned swaps that matured. During the three months ended June 30, 2022, the Company unwound and settled certain cross-currency swaps with a total notional value of $2 billion and recorded a gain of $78 million. In connection with the Merger, the company also acquired $173 million of Euro denominated debt that is designated as a net investment hedge with all fair market value changes accounted for as currency translation adjustments. No Hedging Designation During the three months ended March 31, 2022, the Company dedesignated, unwound and settled forward starting interest rate swap contracts with a total notional value of $5.0 billion, swaption collars with a total notional value of $2.5 billion, and purchase payer swaptions with a total notional value of $7.5 billion. The Company received cash of $474 million upon settlement, including $142 million in premiums paid at execution during 2021, resulting in a gain of $332 million that was recognized in other (expense) income, net in the consolidated statements of operations. Also during the three months ended March 31, 2022, the Company executed and subsequently settled treasury locks with a total notional value of $14.5 billion. The Company received cash of $90 million upon settlement, resulting in a gain of $90 million that was recognized in other (expense) income, net in the consolidated statements of operations. Finally, during the three months ended March 31, 2022, the Company unwound and settled a foreign exchange forward contract with a notional value of $375 million associated with the Company's Euro denominated debt that was paid in full at maturity. The Company recognized a loss of $48 million in other (expense) income, net in the consolidated statements of operations. The company acquired $322 million of economic hedges to mitigate foreign currency risk for production expenses that are not designated for hedge accounting. The fair market value changes of these derivatives are expensed to other (expense) income, net. The following table summarizes the impact of derivative financial instruments on the Company's consolidated balance sheets (in millions). There were no amounts eligible to be offset under master netting agreements as of June 30, 2022 and December 31, 2021. The fair value of the Company's derivative financial instruments was determined using a market-based approach (Level 2). June 30, 2022 December 31, 2021 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- Accounts payable and accrued liabilities Other non- Notional Prepaid expenses and other current assets Other non- Accounts payable and accrued liabilities Other non- Cash flow hedges: Foreign exchange $ 2,196 $ 31 $ 54 $ 80 $ 15 $ 777 $ 14 $ — $ 2 $ — Interest rate swaps — — — — — 2,000 44 — 11 — Net investment hedges: (a) Cross-currency swaps 1,620 16 29 — 59 3,512 54 61 20 76 No hedging designation: Foreign exchange 806 4 1 — 98 1,020 — — 34 66 Interest rate swaps — — — — — 15,000 126 28 9 5 Cross-currency swaps 139 3 2 — — 139 3 — — 5 Total $ 54 $ 86 $ 80 $ 172 $ 241 $ 89 $ 76 $ 152 (a) Excludes £400 million of sterling notes ($486 million equivalent at June 30, 2022) and €164 million of euro-denominated notes ( $173 million equivalent at June 30, 2022) designated as a net investment hedges. (See Note 10.) The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ (7) $ (7) $ (20) $ 30 Interest rate - derivative adjustments — (134) — 126 Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue — — 1 — Foreign exchange - distribution revenue (2) 2 2 (1) Foreign exchange - costs of revenues 18 — 19 — Interest rate - interest expense, net (1) (1) (1) (1) If current fair valu es of designated cash flow hedges as of June 30, 2022 remained static over the next twelve months, the Company would reclassify $5 million of net deferred losses from accumulated other comprehensive loss into income in the next twelve months. The maximum length of time the Company is hedging exposure to the variability in future cash flows is 33 years. The following table presents the pre-tax impact of derivatives designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other gains (losses) reclassified from accumulated other comprehensive loss to income during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2022 2021 2022 2021 Cross currency swaps $ 52 $ (5) Interest expense, net $ 7 $ 11 Euro-denominated notes (foreign denominated debt) 6 — N/A — — Sterling notes (foreign denominated debt) 41 (3) N/A — — Total $ 99 $ (8) $ 7 $ 11 Six Months Ended June 30, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2022 2021 2022 2021 Cross currency swaps $ 71 $ 47 Interest expense, net $ 22 $ 21 Euro denominated notes (foreign denominated debt) 6 — N/A — — Sterling notes (foreign denominated debt) 54 (8) N/A — — Total $ 131 $ 39 $ 22 $ 21 The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in other (expense) income, net in the consolidated statements of operations (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest rate swaps $ — $ — $ 512 $ — Cross-currency swaps 7 1 7 6 Foreign exchange derivatives (31) (2) (46) (27) Total in other (expense) income, net $ (24) $ (1) $ 473 $ (21) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). June 30, 2022 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 39 $ — $ 39 Equity securities: Money market fund Cash and cash equivalents 2 — — 2 Mutual funds Prepaid expenses and other current assets 26 — — 26 Mutual funds Other noncurrent assets 231 — — 231 Company-owned life insurance contracts Other noncurrent assets — 100 — 100 Total $ 259 $ 139 $ — $ 398 Liabilities Deferred compensation plan Accrued liabilities $ 52 $ — $ — $ 52 Deferred compensation plan Other noncurrent liabilities 615 — — 615 Total $ 667 $ — $ — $ 667 December 31, 2021 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 426 $ — $ 426 Equity securities: Money market funds Cash and cash equivalents 425 — — 425 Mutual funds Prepaid expenses and other current assets 12 — — 12 Company-owned life insurance contracts Prepaid expenses and other current assets — 1 — 1 Mutual funds Other noncurrent assets 215 — — 215 Company-owned life insurance contracts Other noncurrent assets — 32 — 32 Total $ 652 $ 459 $ — $ 1,111 Liabilities Deferred compensation plan Accrued Liabilities $ 21 $ — $ — $ 21 Deferred compensation plan Other noncurrent liabilities 238 — — 238 Total $ 259 $ — $ — $ 259 Equity securities include money market funds, time deposits, investments in mutual funds held in separate trusts, which are owned as part of the Company's supplemental retirement plans, and company-owned life insurance contracts. The fair value of Level 1 equity securities was determined by reference to the quoted market price per share in active markets multiplied by the number of shares held without consideration of transaction costs. The fair value of the deferred compensation plan liability was determined based on the fair value of the related investments elected by employees. Changes in the fair value of the investments are recorded in other (expense) income, net and changes in the deferred compensation liability are recorded in selling, general and administrative expense. Company-owned life insurance contracts are recorded at their cash surrender value, which approximates fair value (Level 2). In addition to the financial instruments listed in the tables above, the Company has other financial instruments, including cash deposits, accounts receivable, accounts payable, term loans, and senior notes. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of June 30, 2022 and December 31, 2021. The estimated fair value of the Company’s outstanding senior notes using quoted prices from over-the-counter markets, considered Level 2 inputs, was $42.1 billion and $17.2 billion as of June 30, 2022 and December 31, 2021, respectively. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company has various incentive plans under which performance-based restricted stock units ("PRSUs"), service-based restricted stock units ("RSUs"), stock options, and stock appreciation rights ("SARs") have been issued. In connection with the Merger, AT&T RSUs subject to time based vesting held by WM employees were replaced with WBD RSUs granted on comparable terms upon closing of the Merger, increasing RSU expense, grants and unrecognized compensation expense for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021. The table below presents the components of share-based compensation expense (in millions), which is recorded in selling, general and administrative expense in the consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 PRSUs $ (1) $ (7) $ 2 $ 12 RSUs $ 128 $ 29 $ 166 $ 51 Stock options $ 23 $ 16 $ 41 $ 26 SARs $ — $ (7) $ 1 $ 6 Total share-based compensation expense $ 150 $ 31 $ 210 $ 95 Tax benefit recognized $ 31 $ 7 $ 40 $ 15 The table below presents awards granted (in millions, except weighted-average grant price). Six Months Ended June 30, 2022 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.4 $ 28.11 RSUs 30.1 $ 24.75 Stock options 0.4 $ 32.90 The table below presents unrecognized compensation cost related to non-vested share-based awards and the weighted-average amortization period over which these expenses will be recognized as of June 30, 2022 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 3 0.5 RSUs 696 2.3 Stock options 188 3.8 Total unrecognized compensation cost $ 887 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax balances as of June 30, 2022 are inclusive of the WM Business as a result of the Merger. Income tax benefit was $836 million and $635 million for the three and six months ended June 30, 2022, respectively, and income tax expense was $2 million and $108 million for the three and six months ended June 30, 2021, respectively. The decrease in the three months ended June 30, 2022 was primarily attributable to a decrease in pre-tax book income, partially offset by an unfavorable tax adjustment related to the preferred stock conversion transaction expense discussed in Note 2, which was not deductible for tax purposes, and a deferred tax benefit of $162 million recorded in the three months ended June 30, 2021 as a result of the UK Finance Act 2021 that was enacted in June 2021. Income tax benefit for the three and six months ended June 30, 2022 reflects an effective income tax rate that differs from the federal statutory tax rate primarily attributable to the effect of foreign operations, which included taxation and allocation of income and losses among multiple foreign jurisdictions, state and local income taxes, and the non-tax deductible preferred stock conversion transaction expense discussed above. On April 8, 2022, the Company completed its merger with the WM business. In connection with the merger, the Company entered into a tax matters agreement (“TMA”) with AT&T. Pursuant to the TMA, the Company is responsible for tax liabilities related to the periods prior to AT&T's ownership of the business (June 14, 2018), and AT&T is responsible for tax liabilities related to the period for which they owned the business (June 15, 2018 through April 8, 2022). The Company is fully indemnified by AT&T for any tax liabilities arising for the period June 15, 2018 through April 8, 2022. As of June 30, 2022, the Company has recorded reserves for uncertain tax positions and the associated interest and penalties payable related to WM of $860 million and $187 million, respectively, through purchase accounting. Indemnification receivables of $286 million were also recorded during the three months ended June 30, 2022. With respect to uncertain tax positions related to jurisdictions that have joint and several liability among members of the AT&T tax filing group during the AT&T ownership period, the Company recognizes only the amount they expect to pay to the taxing authorities after considering the contractual indemnification agreement with AT&T and AT&T’s ability to settle any disputed positions with the taxing authorities. As of June 30, 2022, the Company has not recorded any liabilities for uncertain tax positions or indemnification receivables related to matters that were attributable to jurisdictions that have joint and several liability among members of the AT&T filing group since AT&T was determined to be the primary obligor. As of June 30, 2022 and December 31, 2021, the Company's reserves for uncertain tax positions totaled $1,386 million and $420 million, respectively. The increase in the reserve for uncertain tax positions at June 30, 2022 is primarily attributable to the Merger. It is reasonably possible that the total amount of unrecognized tax benefits related to certain of the Company's uncertain tax positions could decrease by as much as $256 million within the next twelve months as a result of ongoing audits, lapses of statutes of limitations or regulatory developments. As of June 30, 2022 and December 31, 2021, the Company had accrued approximately $258 million and $60 million, respectively, of total interest and penalties payable related to unrecognized tax benefits. The increase in the accrual for interest and penalties payable at June 30, 2022 is primarily attributable to the Merger. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The Company has a defined benefit pension plan that covers certain U.S.-based employees and a non-qualified unfunded Supplemental Executive Retirement Plan that provides defined pension benefits to eligible executives. In connection with the Merger, the Company also assumed four additional U.S. nonqualified pension plans that are noncontributory and unfunded and several non-U.S. pension plans. The four U.S. plans consist of the Time Warner Excess Benefit Plan (the “Excess plan”), the Retirement Accumulation Plan (“RAP”), the Supplemental Executive Retirement Plan (“SERP”) and the Wealth Accumulation Plan (“WAP”) (together, the “U.S. Nonqualified Plans”). The U.S. Nonqualified Plans were closed to new entrants during 2010. The Excess plan and RAP are both frozen to new benefit accruals. SERP and WAP only have retirees remaining. The pension formula for the Excess plan captured pay above compensation limits or benefit limits. RAP is a cash balance type formula and now provides only interest credits. The Company also holds net assets and net liabilities on behalf of other U.S. and non-U.S. pension plans. The plan provisions vary by plan and by country. Some of these plans are unfunded and all are noncontributory. Obligations and Funded Status For all of the acquired defined benefit pension plans, the benefit obligation is the projected benefit obligation, the actuarial present value, as of our April 8, 2022 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefits to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees and their beneficiaries and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels, as applicable. The unfunded status of the acquired U.S. Nonqualified Plans as of April 8, 2022 was a liability of $278 million. The unfunded status represents a pension benefit obligation of $278 million, with no plan assets. The funded status of the acquired non-U.S. pension plans as of April 8, 2022 was a net asset of $146 million. The funded status represents a pension benefit obligation of $659 million less the fair value of the plan assets of $805 million. Total assets (liabilities) recognized for all acquired pension plans on our consolidated balance sheets were as follows (in millions). April 8, 2022 Plan assets, net $ 200 Current portion of employee benefit obligation (27) Noncurrent portion of employee benefit obligation (305) Net amount recognized $ (132) Net Periodic Pension Cost The service cost component of net periodic pension cost is recorded in operating expenses in the consolidated statements of operations, while the remaining components are recorded in other (expense) income, net. Net periodic pension cost was not material for the three and six months ended June 30, 2022 and 2021. Assumptions In determining the projected benefit obligation and the net pension and postretirement benefit cost for the acquired plans, the Company used the following significant weighted-average assumptions. April 8, 2022 U.S. Nonqualified Plans Non-U.S. Pension Plans Discount rate 3.89 % 2.51 % Long-term rate of return on plan assets N/A 1.61 % Rate of compensation increases N/A 5.82 % |
Supplemental Disclosures
Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
SUPPLEMENTAL DISCLOSURES | SUPPLEMENTAL DISCLOSURES The following tables present supplemental information related to the consolidated financial statements (in millions). Accrued Liabilities Accrued liabilities consisted of the following (in millions): June 30, 2022 December 31, 2021 Accrued participation and residuals $ 3,007 $ — Accrued production 1,461 4 Content rights payable 1,453 772 Accrued payroll and related benefits 1,432 533 Other accrued liabilities 2,926 921 Total accrued expenses and other current liabilities $ 10,279 $ 2,230 Other (Expense) Income, net Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency (losses) gain, net $ (81) $ (5) $ (70) $ 47 (Losses) gains on derivative instruments, net (24) (1) 473 (21) Change in the value of investments with readily determinable fair value (70) 29 (90) 46 Gain on sale of equity method investments 133 (1) 133 4 Change in fair value of equity investments without readily determinable fair value — 81 — 81 Other (expense) income, net (9) 2 (7) 16 Total other (expense) income, net $ (51) $ 105 $ 439 $ 173 Supplemental Cash Flow Information Six Months Ended June 30, 2022 2021 Cash paid for taxes, net $ 442 $ 249 Cash paid for interest, net 390 337 Non-cash investing and financing activities: Equity issued for the acquisition of WarnerMedia 42,309 — Accrued purchases of property and equipment 47 32 Assets acquired under finance lease and other arrangements 27 50 Cash, Cash Equivalents, and Restricted Cash June 30, 2022 December 31, 2021 Cash and cash equivalents $ 2,575 $ 3,905 Restricted cash - recorded in prepaid expenses and other current assets (1) 1,321 — Total cash, cash equivalents, and restricted cash $ 3,896 $ 3,905 (1) Restricted cash primarily includes cash posted as collateral related to the Company’s revolving receivables program. (See Note 7.) Other Comprehensive Income (Loss) Adjustments The table below presents the tax effects related to each component of other comprehensive income (loss) and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit (expense) Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (560) $ 2 $ (558) $ 121 $ (2) $ 119 Net investment hedges 97 (27) 70 (13) 2 (11) Total currency translation adjustments (463) (25) (488) 108 — 108 Derivative adjustments: Unrealized (losses) gains (7) — (7) (141) 29 (112) Reclassifications from other comprehensive income to net income (15) 4 (11) (1) 1 — Total derivative adjustments (22) 4 (18) (142) 30 (112) Other comprehensive (loss) income adjustments $ (485) $ (21) $ (506) $ (34) $ 30 $ (4) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (665) $ 2 $ (663) $ (109) $ 14 $ (95) Net investment hedges 119 (41) 78 29 7 36 Reclassifications: Loss on disposition (2) — (2) — — — Total currency translation adjustments (548) (39) (587) (80) 21 (59) Derivative adjustments: Unrealized (losses) gains (20) 1 (19) 156 (33) 123 Reclassifications from other comprehensive income to net income (21) 4 (17) 2 — 2 Total derivative adjustments (41) 5 (36) 158 (33) 125 Other comprehensive (loss) income adjustments $ (589) $ (34) $ (623) $ 78 $ (12) $ 66 Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions). Three Months Ended June 30, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (944) $ 10 $ (13) $ (947) Other comprehensive income (loss) before reclassifications (488) (7) — (495) Reclassifications from accumulated other comprehensive loss to net income — (11) — (11) Other comprehensive income (loss) (488) (18) — (506) Ending balance $ (1,432) $ (8) $ (13) $ (1,453) Three Months Ended June 30, 2021 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (722) $ 156 $ (15) $ (581) Other comprehensive income (loss) 108 (112) — (4) Ending balance $ (614) $ 44 $ (15) $ (585) Six Months Ended June 30, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (845) $ 28 $ (13) $ (830) Other comprehensive (loss) before reclassifications (585) (19) — (604) Reclassifications from accumulated other comprehensive loss to net income (2) (17) — (19) Other comprehensive (loss) (587) (36) — (623) Ending balance $ (1,432) $ (8) $ (13) $ (1,453) Six Months Ended June 30, 2021 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (555) $ (81) $ (15) $ (651) Other comprehensive (loss) income before reclassifications (59) 123 — 64 Reclassifications from accumulated other comprehensive loss to net income — 2 — 2 Other comprehensive (loss) income (59) 125 — 66 Ending balance $ (614) $ 44 $ (15) $ (585) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of business, the Company enters into transactions with related parties. Related parties include entities that share common directorship, such as Liberty Global plc (“Liberty Global”), Liberty Broadband Corporation ("Liberty Broadband") and their subsidiaries and equity method investees (collectively the “Liberty Group”). The Company’s Board of Directors includes Dr. Malone, who is Chairman of the Board of Liberty Global and beneficially owns approximately 30% of the aggregate voting power with respect to the election of directors of Liberty Global. Dr. Malone is also Chairman of the Board of Liberty Broadband and beneficially owns approximately 47% of the aggregate voting power with respect to the election of directors of Liberty Broadband. The majority of the revenue earned from the Liberty Group relates to multi-year network distribution arrangements. Related party transactions also include revenues and expenses for content and services provided to or acquired from equity method investees, or minority partners of consolidated subsidiaries. The table below presents a summary of the transactions with related parties (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues and service charges: Liberty Group $ 535 $ 165 $ 693 $ 340 Equity method investees 179 68 237 124 Other 156 24 189 51 Total revenues and service charges $ 870 $ 257 $ 1,119 $ 515 Expenses $ (166) $ (57) $ (242) $ (114) Distributions to noncontrolling interests and redeemable noncontrolling interests $ (40) $ (30) $ (264) $ (213) The table below presents receivables due from and payables due to related parties (in millions). June 30, 2022 December 31, 2021 Receivables $ 821 $ 172 Payables $ 38 $ 23 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments In the normal course of business, the Company enters into various commitments, which primarily include programming, film licensing, talent arrangements and other agreements, operating and finance leases (see Note 11), arrangements to purchase various goods and services, long-term debt (see Note 10) and future funding commitments to equity method investees (in millions). Long-Term Debt Year Ending December 31, Content Other Purchase Obligations Pension and Other Employee Obligations Principal Interest Total 2022 (remaining six months) $ 5,658 $ 1,148 $ 321 $ — $ 1,133 $ 8,260 2023 6,468 932 463 1,349 2,243 11,455 2024 5,223 463 225 4,271 2,159 12,341 2025 3,807 289 100 9,647 1,863 15,706 2026 2,512 105 67 790 1,729 5,203 Thereafter 10,880 101 232 36,702 27,487 75,402 Total $ 34,548 $ 3,038 $ 1,408 $ 52,759 $ 36,614 $ 128,367 Content purchase obligations include commitments and liabilities associated with third-party producers and sports associations for content that airs on our television networks. Production contracts generally require purchase of a specified number of episodes, and/or payments over the term of the license, and include both programs that have been delivered and are available for airing and programs that have not yet been produced or sporting events that have not yet taken place. If the content is ultimately never produced, our commitments expire without obligation. The commitments disclosed above exclude content liabilities recognized on the consolidated balance sheets. Other purchase obligations include agreements with certain vendors and suppliers for the purchase of goods and services whereby the underlying agreements are enforceable, legally binding and specify all significant terms. Significant purchase obligations include transmission services, television rating services, marketing commitments and research, equipment purchases, and information technology and other services. Some of these contracts do not require the purchase of fixed or minimum quantities and generally may be terminated with a 30-day to 60-day advance notice without penalty, and are not included in the table above past the 30-day to 60-day advance notice period. Other purchase obligations also include future funding commitments to equity method investees. Although the Company had funding commitments to equity method investees as of June 30, 2022, the Company may also provide uncommitted additional funding to its equity method investments in the future. (See Note 9.) Pension and other employee obligations include payments to meet minimum funding requirements of our pension plans in 2022, estimated benefit payments for our SERP that exceed plan assets, and employment agreements primarily with creative talent for the WM broadcast networks. Payments for the SERP have been estimated over a ten Six Flags Guarantee In connection with WM’s former investment in the Six Flags (as defined below) theme parks located in Georgia and Texas (collectively, the “Parks”), in 1997, certain subsidiaries of the Company agreed to guarantee (the “Six Flags Guarantee”) certain obligations of the partnerships that hold the Parks (the “Partnerships”) for the benefit of the limited partners in such Partnerships, including, annual payments made to the Parks or to the limited partners and additional obligations at the end of the respective terms for the Partnerships in 2027 and 2028 (the “Guaranteed Obligations”). The aggregate gross undiscounted estimated future cash flow requirements covered by the Six Flags Guarantee over the remaining term (through 2028) are $544 million. To date, no payments have been made by us pursuant to the Six Flags Guarantee. Six Flags Entertainment Corporation (formerly known as Six Flags, Inc. and Premier Parks Inc.) (“Six Flags”), which has the controlling interest in the Parks, has agreed, pursuant to a subordinated indemnity agreement (the “Subordinated Indemnity Agreement”), to guarantee the performance of the Guaranteed Obligations when due and to indemnify the Company, among others, if the Six Flags Guarantee is called upon. If Six Flags defaults on its indemnification obligations, we have the right to acquire control of the managing partner of the Parks. Six Flags’ obligations to us are further secured by its interest in all limited partnership units held by Six Flags. Based on our evaluation of the current facts and circumstances surrounding the Guaranteed Obligations and the Subordinated Indemnity Agreement, the Company is unable to predict the loss, if any, that may be incurred under the Guaranteed Obligations, and no liability for the arrangements has been recognized as of June 30, 2022. Because of the specific circumstances surrounding the arrangements, and the fact that no active or observable market exists for this type of financial guarantee, the Company is unable to determine a current fair value for the Guaranteed Obligations and related Subordinated Indemnity Agreement. Contingencies Other Contingent Commitments Other contingent commitments primarily include contingent payments for post-production term advance obligations on certain co-financing arrangements, as well as operating lease commitment guarantees, letters of credit, bank guarantees and surety bonds, which generally support performance and payments for a wide range of global contingent and firm obligations, including insurance, litigation appeals, real estate leases and other operational needs. The Company's other contingent commitments at June 30, 2022 were $258 million, with $251 million estimated due in 2026. For other contingent commitments where payment obligations are outside our control, the timing of amounts represents the earliest period in which the payment could be requested. For the remaining other contingent commitments, the timing of amounts presented represents when the maximum contingent commitment will expire but does not mean that we expect to incur an obligation to make any payments within that time period. In addition, these amounts do not reflect the effects of any indemnification rights we might possess. Put Rights The Company has granted put rights to non-controlling interest holders in certain consolidated subsidiaries. Legal Matters |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS The Company’s operating segments are determined based on: (i) financial information reviewed by its chief operating decision maker, the Chief Executive Officer (“CEO”), (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions. In conjunction with the Merger, the Company reevaluated and changed its segment presentation and reportable segments during the quarter ended June 30, 2022. As of June 30, 2022, we classified our operations in three reportable segments: Studios, primarily consisting of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and our networks/DTC services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming; Networks, consisting primarily of our domestic and international television networks; and DTC, consisting primarily of our premium pay TV and digital content services. Goodwill was reallocated to the new segments based on relative fair value. Prior periods have been recast to conform to the current period presentation. The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content licenses. The Company records inter-segment transactions of content licenses at the gross amount. Prior year amounts have been recast to reflect the current presentation. The Company does not report assets by segment because it is not used to allocate resources or evaluate segment performance. The Company evaluates the operating performance of its operating segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding: • employee share-based compensation; • depreciation and amortization; • restructuring, facility consolidation, and other charges; • certain impairment charges; • gains and losses on business and asset dispositions; • certain inter-segment eliminations; • third-party transaction and integration costs; • amortization of purchase accounting fair value step-up for content; • amortization of capitalized interest for content; and • other items impacting comparability. The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring and other charges, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. Certain corporate expenses and inter-segment eliminations related to production studios are excluded from segment results to enable executive management to evaluate segment performance based upon the decisions of segment executives. Adjusted EBITDA should be considered in addition to, but not a substitute for, operating income, net income, and other measures of financial performance reported in accordance with U.S. GAAP. The tables below present summarized financial information for each of the Company's reportable segments and corporate, and inter-segment eliminations (in millions). Revenues Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 2,796 $ 2 $ 2,801 $ 7 Networks 5,742 2,844 8,615 5,504 DTC 2,225 216 2,506 343 Corporate 13 — 13 — Inter-segment eliminations (949) — (949) — Total revenues $ 9,827 $ 3,062 $ 12,986 $ 5,854 Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 239 $ 2 $ 242 $ 4 Networks 2,262 1,538 3,617 2,947 DTC (518) (329) (745) (819) Corporate (305) (94) (409) (178) Inter-segment eliminations (14) — (14) — Adjusted EBITDA $ 1,664 $ 1,117 $ 2,691 $ 1,954 Reconciliation of Net (Loss) Income available to Warner Bros. Discovery, Inc. to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net (loss) income available to Warner Bros. Discovery, Inc. $ (3,418) $ 672 $ (2,962) $ 812 Net income attributable to redeemable noncontrolling interests 3 8 6 13 Net income attributable to noncontrolling interests 7 38 23 84 Income tax (benefit) expense (836) 2 (635) 108 (Loss) income before income taxes (4,244) 720 (3,568) 1,017 Other expense (income), net 51 (105) (439) (173) Loss from equity investees, net 43 7 57 11 Interest expense, net 511 157 664 320 Operating (loss) income (3,639) 779 (3,286) 1,175 Loss (gain) on disposition 4 (72) 4 (72) Restructuring and other charges 1,033 7 1,038 22 Depreciation and amortization 2,266 341 2,791 702 Employee share-based compensation 147 27 204 88 Transaction and integration costs 983 35 1,070 39 Amortization of fair value step-up for content 870 — 870 — Adjusted EBITDA $ 1,664 $ 1,117 $ 2,691 $ 1,954 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS During July and August 2022, the Company repaid $1.3 billion of aggregate principal amount outstanding of its term loan due April 2025. Additionally, during August 2022, the Company issued $300 million of commercial paper. In August 2022, the Company, DCL, Scripps Networks, and WMH entered into Amendment 2 to DCL Revolving Credit Agreement and Amendment 1 to WMH Term Loan Credit Agreement to amend the definition of “Consolidated EBITDA” to add back certain cash restructuring costs, charges or expenses subject to a cap equal to 15% of Consolidated EBITDA (prior to giving effect to such add-back). |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Segments | Segments In conjunction with the Merger, the Company reevaluated and changed its segment presentation during the quarter ended June 30, 2022. Accordingly, beginning in the quarter ended June 30, 2022, and for all periods presented, we are reporting results based on the following segments: Studios - Our Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and our networks/DTC services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. Networks - Our Networks segment primarily consists of our domestic and international television networks. Direct-to-consumer (“DTC”) - Our DTC segment primarily consists of our premium pay TV and digital content services. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries in which a controlling interest is maintained, including variable interest entities (“VIE”) for which the Company is the primary beneficiary. Intercompany accounts and transactions between consolidated entities have been eliminated. |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, business combinations, share-based compensation, income taxes, other financial instruments, contingencies, estimated defined benefit plan liabilities, and the determination of whether the Company should consolidate certain entities. |
Film and Television Content Rights | Film and Television Content Rights The Company groups its film and television content rights by monetization strategy. For films and television programs predominantly monetized individually, the amount of capitalized film and television production costs and the amount of participations and residuals to be recognized as expense in a particular period are determined using the individual film forecast method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals are based on the proportion of the film’s or television program’s revenues recognized for such period to the film’s or television program’s estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film’s or television program’s remaining life cycle). The process of estimating ultimate revenues requires us to make a series of judgments related to future revenue-generating activities associated with a particular film. Prior to the theatrical release of a film, our estimates are based on factors such as the historical performance of similar films, the star power of the lead actors, the rating and genre of the film, pre-release market research (including test market screenings), international distribution plans and the expected number of theaters in which the film will be released. Subsequent to release, ultimate revenues are updated to reflect initial performance, which is often predictive of future performance. For a film or television program that is predominantly monetized on its own but also monetized with other films and/or programs (such as our DTC or linear services), we make a reasonable estimate of the value attributable to the film or program’s exploitation while monetized with other films/programs and expense such costs as the film or television program is exhibited. For theatrical films, the period over which ultimate revenues from all applicable sources and exhibition windows are estimated does not exceed 10 years from the date of the film’s initial release. For television programs, the ultimate period does not exceed 10 years from delivery of the first episode, or, if still in production, five years from delivery of the most recent episode, if later. Ultimates for produced content monetized on an individual basis are reviewed and updated (as applicable) on a quarterly basis; any adjustments are applied prospectively as of the beginning of the fiscal year of the change. For programs monetized as a group, including licensed programming, the Company’s film groups are generally aligned along the Company’s networks and digital content offerings, except for certain international territories wherein content assets are shared across the various networks in the territory and therefore, the territory is the film group. Amortization expense for each period is generally based on the revenue forecast model, which approximates the proportion that estimated distribution and advertising revenues for the current period represent in relation to the estimated remaining total lifetime revenues. Digital content and premium pay TV amortization for each period is recognized based on estimated viewing patterns as there are generally no direct revenues to associate to the individual content assets and therefore number of views is most representative of the use of the title. Licensed rights to film and television programming are typically amortized over the useful life of the program’s license period on a straight-line basis (or per-play basis, if greater, for certain programming on our ad-supported networks), or accelerated basis for licensed original programs. Quarterly, the Company prepares analyses to support its content amortization expense. Critical assumptions used in determining content amortization for programming predominately monetized as a group include: (i) the grouping of content with similar characteristics, (ii) the application of a quantitative revenue forecast model or viewership model based on the adequacy of historical data, (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the forecast model, and (iv) incorporating secondary streams. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of cable and satellite television subscribers receiving the Company’s networks, the number of subscribers to its digital services, and program usage. Accordingly, the Company continually reviews its estimates and planned usage and revises its assumptions if necessary. Any material adjustments from the Company’s review of the amortization rates for assets in film groups are applied prospectively in the period of the change. Unamortized film costs are tested for impairment whenever events or changes in circumstances indicate that the fair value of a film (or television program) predominately monetized on its own, or a film group, may be less than its unamortized costs. In addition, a change in the predominant monetization strategy is considered a triggering event for impairment testing before a title is accounted for as part of a film group. If the carrying value of an individual feature film or television program, or film group, exceeds the estimated fair value, an impairment charge will be recorded in the amount of the difference. For content that is predominately monetized individually, we utilize estimates including ultimate revenues and additional costs to be incurred (including exploitation and participation costs), in order to determine whether the carrying value of a film or television program is impaired. Game development costs are expensed as incurred before the applicable games reach technological feasibility, or for online hosted arrangements, before the preliminary project phase is complete and it is probable the project will be completed and the software will be used to perform the function intended. Upon release, the capitalized game development costs are amortized based on the proportion of the game’s revenues recognized for such period to the game’s total current and anticipated revenues. Unamortized capitalized game production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in “Film and television content rights and games, net” on the consolidated balance sheets. |
Inventory | InventoryInventory is comprised primarily of DVDs, Blu-ray Discs and game units and is stated at the lower of cost or net realizable value in prepaid expenses and other current assets on the consolidated balance sheets. Cost is determined using the average cost method for the majority of our inventory, with the remaining inventory valued using the standard cost method, which approximates average cost. Returned goods included in inventory are valued at estimated realizable value, but not in excess of cost. The Company periodically reviews its inventory for excess and obsolete inventory. |
Defined Benefit Plan | Defined Benefit Plan The Company maintains a defined benefit pension plan covering certain employees. Defined benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. |
Accounting and Reporting Pronouncements Adopted | Accounting and Reporting Pronouncements Adopted LIBOR In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance providing optional expedients and exceptions for applying U.S. GAAP to contract modifications, hedging relationships, and other transactions associated with the expected market transition away from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance is for March 12, 2020 through December 31, 2022 and may not be applied to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The Company applied the relevant provisions of the guidance to hedge relationships that were subsequently terminated in the first quarter of 2022. Convertible Instruments In August 2020, the FASB issued guidance simplifying the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This guidance amends the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions, requires the use of the if-converted method for calculating earnings per share for convertible instruments, and makes targeted improvements to the disclosures for convertible instruments and related earnings per share guidance. The Company adopted the guidance effective January 1, 2022, and there was no material impact on its consolidated financial statements. Accounting and Reporting Pronouncements Not Adopted Government Assistance In November 2021, the FASB issued guidance requiring disclosure for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy to other guidance. The annual disclosures include terms and conditions, accounting treatment and impacted financial statement lines reflecting the impact of the transactions. The guidance is effective for annual periods beginning after December 15, 2021. The Company is currently assessing the impact this guidance will have on its consolidated financial statements and related disclosures. |
Fair Value Measurements | Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. |
Derivatives | The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current | The Company's inventory consisted of the following (in millions). June 30, 2022 December 31, 2021 Raw materials $ 6 $ — Work in process 6 — Finished goods 127 1 Total inventory $ 139 $ 1 |
Equity and Earnings Per Share (
Equity and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity And Earnings Per Share [Abstract] | |
Schedule of Weighted Average Basic And Diluted Shares Outstanding | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ (3,408) $ 718 $ (2,933) $ 909 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (72) (49) (87) Net income attributable to noncontrolling interests (7) (38) (23) (84) Net income attributable to redeemable noncontrolling interests (3) (8) (6) (13) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net income per share $ (3,418) $ 600 $ (3,011) $ 725 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 72 $ — $ 87 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net income per share $ (3,418) $ 672 $ (3,011) $ 812 Denominator — weighted average: Common shares outstanding — basic 2,286 589 1,443 587 Impact of assumed preferred stock conversion — 71 — 71 Dilutive effect of share-based awards — 4 — 8 Common shares outstanding — diluted 2,286 664 1,443 666 Basic net (loss) income per share allocated to common stockholders $ (1.50) $ 1.02 $ (2.09) $ 1.23 Diluted net (loss) income per share allocated to common stockholders $ (1.50) $ 1.01 $ (2.09) $ 1.22 |
Schedule of Basic And Diluted Earnings per Share | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ (3,408) $ 718 $ (2,933) $ 909 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (72) (49) (87) Net income attributable to noncontrolling interests (7) (38) (23) (84) Net income attributable to redeemable noncontrolling interests (3) (8) (6) (13) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net income per share $ (3,418) $ 600 $ (3,011) $ 725 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 72 $ — $ 87 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net income per share $ (3,418) $ 672 $ (3,011) $ 812 Denominator — weighted average: Common shares outstanding — basic 2,286 589 1,443 587 Impact of assumed preferred stock conversion — 71 — 71 Dilutive effect of share-based awards — 4 — 8 Common shares outstanding — diluted 2,286 664 1,443 666 Basic net (loss) income per share allocated to common stockholders $ (1.50) $ 1.02 $ (2.09) $ 1.23 Diluted net (loss) income per share allocated to common stockholders $ (1.50) $ 1.01 $ (2.09) $ 1.22 |
Schedule of Income Available to Warner Bros. Discovery Stockholders | The table below sets forth the Company's calculated earnings per share. Earnings per share amounts may not recalculate due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ (3,408) $ 718 $ (2,933) $ 909 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (72) (49) (87) Net income attributable to noncontrolling interests (7) (38) (23) (84) Net income attributable to redeemable noncontrolling interests (3) (8) (6) (13) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net income per share $ (3,418) $ 600 $ (3,011) $ 725 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 72 $ — $ 87 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net income per share $ (3,418) $ 672 $ (3,011) $ 812 Denominator — weighted average: Common shares outstanding — basic 2,286 589 1,443 587 Impact of assumed preferred stock conversion — 71 — 71 Dilutive effect of share-based awards — 4 — 8 Common shares outstanding — diluted 2,286 664 1,443 666 Basic net (loss) income per share allocated to common stockholders $ (1.50) $ 1.02 $ (2.09) $ 1.23 Diluted net (loss) income per share allocated to common stockholders $ (1.50) $ 1.01 $ (2.09) $ 1.22 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below presents the details of share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Anti-dilutive share-based awards 57 16 45 6 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Components of the Acquisition | The following table summarizes the components of the aggregate purchase consideration paid to acquire WM (in millions) and is subject to adjustments. Fair value of WBD common stock issued to AT&T shareholders (1) $ 42,309 Estimated fair value of share-based compensation awards attributable to pre-combination services (2) 94 Settlement of preexisting relationships (3) (27) Preliminary purchase consideration $ 42,376 (1) The fair value of WBD common stock issued to AT&T shareholders represents approximately 1,732 million shares of the Company’s common stock multiplied by the closing share price for Discovery Series A common stock of $24.43 on the Nasdaq on the Closing Date. The number of shares of WBD common stock issued in the Merger was determined based on the number of fully diluted shares of Discovery, Inc. common stock immediately prior to the closing of the Merger, multiplied by the quotient of 71%/29%. (2) This amount represents the value of AT&T restricted stock unit awards that were not vested and were replaced by WBD restricted stock unit awards with similar terms and conditions as the original AT&T awards. The conversion was based on the ratio of the volume-weighted average per share closing price of AT&T common stock on the ten trading days prior to the Closing Date and the volume-weighted average per share closing price of WBD common stock on the ten trading days following the Closing Date. The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger. See Note 14 for additional information. (3) The amount represents the effective settlement of outstanding payables and receivables between the Company and WM. No gain or loss was recognized upon settlement as amounts were determined to be reflective of fair market value. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred is presented in the table below (in millions). Preliminary Cash $ 2,419 Accounts receivable 4,224 Other current assets 4,619 Film and television library 28,729 Property and equipment 4,260 Goodwill 21,513 Intangible assets 44,889 Other noncurrent assets 5,206 Current liabilities (10,544) Debt assumed (41,671) Deferred income taxes (13,264) Other noncurrent liabilities (8,004) Total consideration paid $ 42,376 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The table below presents a summary of intangible assets acquired, exclusive of content assets, and the weighted average useful life of these assets. Fair Value Weighted Average Useful Life in Years Trade names $ 21,084 25 Affiliate, advertising and subscriber relationships 14,700 6 Franchises 7,900 35 Other intangible assets 1,205 Total intangible assets acquired $ 44,889 |
Schedule of Business Acquisition, Pro Forma Information | The following table presents WM revenue and earnings as reported within the consolidated financial statements (in millions). Three and Six Months Ended June 30, 2022 Revenues: Advertising $ 1,163 Distribution 3,526 Content 2,835 Other 208 Total revenues $ 7,732 Net loss available to Warner Bros. Discovery, Inc. $ (2,911) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 10,823 $ 11,211 $ 22,264 $ 21,933 Net loss available to Warner Bros. Discovery, Inc. (2,151) (341) (2,437) (1,912) |
Summary of Fair Value Categories | The following are the preliminary fair value approaches followed: Category Valuation Method Trade names Relief from royalty method of the income approach Film and TV content library Multi-period excess earnings method of the income approach; net book value Affiliate contracts Multi-period excess earnings method of the income approach Franchises Multi-period excess earnings method of the income approach Other intangible assets Multi-period excess earnings method of the income approach Licensed content Net book value method Licensed sports rights Differential method, a form of the incremental income approach In-place advertising networks With-or-without method, a form of the income approach Subscriber relationships Replacement cost method of the cost approach Real estate, property and equipment Cost approach or the income approach, which estimates the value of property based on the income it generates or the market approach, which determines values based on comparable assets purchased under similar conditions Current and noncurrent debt assumed comprising existing debt of WM, the Term Loan, and the Notes Quoted prices for identical or similar securities in active markets |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows (in millions). U.S. International Studios Networks DTC Total December 31, 2021 $ 10,813 $ 2,099 $ — $ — $ — $ 12,912 Segment recast (See Note 20) (10,813) (2,059) — 10,555 2,317 — Acquisitions (See Note 3) — — 8,912 7,016 5,585 21,513 Foreign currency translation and other — (40) — (92) (20) (152) June 30, 2022 $ — $ — $ 8,912 $ 17,479 $ 7,882 $ 34,273 |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets consisted of the following (in millions, except years). Weighted June 30, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Trademarks and trade names 32 $ 22,918 $ (1,064) $ 21,854 $ 1,716 $ (858) $ 858 Customer relationships 8 24,029 (6,307) 17,722 9,433 (4,303) 5,130 Franchises 35 7,900 (51) 7,849 — — — Character rights 14 995 (16) 979 — — — Other 6 569 (249) 320 395 (227) 168 Total $ 56,411 $ (7,687) $ 48,724 $ 11,544 $ (5,388) $ 6,156 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions). Remaining 2022 2023 2024 2025 2026 Thereafter Amortization expense $ 3,790 $ 6,497 $ 4,976 $ 3,600 $ 2,590 $ 27,271 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets not subject to amortization (in millions): June 30, 2022 December 31, 2021 Trademarks $ — $ 161 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs by Reportable Segment | Restructuring and other charges by reportable segments and corporate were as follows (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 200 $ — $ 200 $ — Networks 308 7 312 21 DTC 475 — 475 1 Corporate 50 — 51 — Total restructuring and other charges $ 1,033 $ 7 $ 1,038 $ 22 |
Schedule of Restructuring and Related Costs Changes in Exit Liabilities | Changes in restructuring and other liabilities recorded in accrued liabilities by major category and by reportable segment and corporate were as follows (in millions). U.S. Networks International Networks Studios Networks DTC Corporate Total December 31, 2021 $ 4 $ 13 $ — $ — $ — $ 2 $ 19 Segment recast (See Note 20) (4) (13) — 15 — 2 — Acquisitions (See Note 3) — — 40 — 14 55 109 Employee termination accruals, net — — 54 16 13 126 209 Cash paid — — (10) (6) (3) (15) (34) June 30, 2022 $ — $ — $ 84 $ 25 $ 24 $ 170 $ 303 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by revenue source (in millions). Three Months Ended June 30, 2022 Studios Networks DTC Corporate Total Revenues: Advertising $ 10 $ 2,624 $ 96 $ (9) $ 2,721 Distribution 4 2,841 1,993 — 4,838 Content 2,636 220 132 (924) 2,064 Other 146 57 4 (3) 204 Total $ 2,796 $ 5,742 $ 2,225 $ (936) $ 9,827 Three Months Ended June 30, 2021 Studios Networks DTC Corporate Total Revenues: Advertising $ — $ 1,601 $ 33 $ — $ 1,634 Distribution — 1,132 180 — 1,312 Content 2 96 2 — 100 Other — 15 1 — 16 Total $ 2 $ 2,844 $ 216 $ — $ 3,062 Six Months Ended June 30, 2022 Studios Networks DTC Corporate Total Revenues: Advertising $ 10 $ 4,054 $ 142 $ (9) $ 4,197 Distribution 4 3,961 2,225 — 6,190 Content 2,641 536 134 (924) 2,387 Other 146 64 5 (3) 212 Total $ 2,801 $ 8,615 $ 2,506 $ (936) $ 12,986 Six Months Ended June 30, 2021 Studios Networks DTC Corporate Total Revenues: Advertising $ — $ 2,993 $ 50 $ — $ 3,043 Distribution — 2,281 289 — 2,570 Content 7 202 3 — 212 Other — 28 1 — 29 Total $ 7 $ 5,504 $ 343 $ — $ 5,854 |
Schedule of Contract Balances | The following table presents contract assets and liabilities on the consolidated balance sheets (in millions). Category Balance Sheet Location June 30, 2022 December 31, 2021 Contract Assets Prepaid expenses and other current assets $ 12 $ — Contract Assets Other noncurrent assets 26 — Contract Liabilities Deferred revenues 1,663 478 Contract Liabilities Other noncurrent liabilities 242 95 |
Sales of Receivables (Tables)
Sales of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Transfer of Financial Assets Accounted for as Sales | The following table presents a summary of receivables sold (in millions). Three Months Ended June 30, 2022 Gross receivables sold/cash proceeds received $ 3,205 Collections reinvested under revolving agreement (3,505) Net cash proceeds received $ (300) Net receivables sold $ 3,198 Obligations recorded $ 98 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents a summary of the amounts transferred or pledged (in millions): June 30, 2022 Gross receivables pledged as collateral $ 1,838 Restricted cash pledged as collateral $ 1,287 Balance sheet classification: Receivables, net $ 1,629 Prepaid expenses and other current assets $ 1,287 Other noncurrent assets $ 209 |
Content Rights (Tables)
Content Rights (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The table below presents the components of content rights (in millions). June 30, 2022 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 3,120 $ — $ 3,120 Completed and not released 318 — 318 In production 1,865 — 1,865 Development and pre-production 144 — 144 Television production costs: Released, less amortization 1,585 7,010 8,595 Completed and not released 649 733 1,382 In production 490 3,711 4,201 Development and pre-production 37 19 56 Total theatrical film and television production costs $ 8,208 $ 11,473 $ 19,681 Programming and game costs: Programming costs, less amortization (a) 10,288 Game development costs, less amortization 656 Total film and television content rights and games 30,625 Less: Current content rights and prepaid license fees, net (505) Total noncurrent film and television content rights and games, net $ 30,120 December 31, 2021 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ — $ — $ — Completed and not released — — — In production — — — Development and pre-production — — — Television production costs: Released, less amortization 9 2,432 2,441 Completed and not released — — — In production — 770 770 Development and pre-production — 17 17 Total theatrical film and television production costs $ 9 $ 3,219 3,228 Programming and game costs: Programming costs, less amortization (a) 849 Game development costs, less amortization — Total film and television content rights 4,077 Less: Current content rights and prepaid license fees, net (245) Total noncurrent film and television content rights, net $ 3,832 (a) Includes the costs of licensed programming rights, including payments that have been made prior to the related rights being received (primarily for sports). |
Schedule of Content Rights Expense | Content expense consisted of the following (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Monetized individually Content amortization $ 1,927 $ 25 $ 2,177 $ 49 Content impairments 94 — 94 — Total content expense monetized individually $ 2,021 $ 25 $ 2,271 $ 49 Monetized as a group Content amortization $ 3,189 $ 747 $ 3,908 $ 1,466 Content impairments 408 1 412 1 Total content expense monetized as a group $ 3,597 $ 748 $ 4,320 $ 1,467 Total content expense $ 5,618 $ 773 $ 6,591 $ 1,516 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s equity investments consisted of the following, net of investments recorded in other noncurrent liabilities (in millions). Category Balance Sheet Location Ownership June 30, 2022 December 31, 2021 Equity method investments: The Chernin Group (TCG) 2.0-A, LP Other noncurrent assets 44% $ 352 $ — nC+ Other noncurrent assets 32% 129 151 Other Other noncurrent assets 683 390 Total equity method investments 1,164 541 Investments with readily determinable fair values Other noncurrent assets 45 80 Investments with readily determinable fair values Prepaid expenses and other current assets 14 40 Total investments with readily determinable fair values 59 120 Investments without readily determinable fair values Other noncurrent assets 637 496 Total investments $ 1,860 $ 1,157 |
Schedule of Unrealized Gains and Losses Related To Common Stock Investments with Readily Determinable Fair Value | The gains and losses related to the Company's investments with readily determinable fair values for the three and six months ended June 30, 2022 and 2021 are summarized in the table below (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net (losses) gains recognized during the period on equity securities $ (41) $ 29 $ (61) $ 62 Less: Net gains recognized on equity securities sold — — — 16 Unrealized (losses) gains recognized during reporting period on equity securities still held at the reporting date $ (41) $ 29 $ (61) $ 46 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). Weighted-Average June 30, 2022 December 31, 2021 Term loans with maturities of 3 years or less 2.32 % $ 6,500 $ — Floating rate senior notes with maturities of 5 years or less 2.31 % 500 — Senior notes with maturities of 5 years or less 3.60 % 13,742 4,314 Senior notes with maturities between 5 and 10 years 4.25 % 10,373 4,128 Senior notes with maturities greater than 10 years 5.11 % 21,644 6,745 Total debt 52,759 15,187 Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net (274) (428) Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, 52,485 14,759 Current portion of debt (1,097) (339) Noncurrent portion of debt $ 51,388 $ 14,420 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Supplemental Cash Flow and Balance Sheet Information | The components of lease cost were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 116 $ 26 $ 138 $ 53 Finance lease cost: Amortization of right-of-use assets $ 20 $ 14 $ 37 $ 28 Interest on lease liabilities 2 2 4 4 Total finance lease cost $ 22 $ 16 $ 41 $ 32 Variable lease cost $ 6 $ 1 $ 7 $ 4 Total lease cost $ 144 $ 43 $ 186 $ 89 Supplemental cash flow information related to leases was as follows (in millions): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (142) $ (56) Operating cash flows from finance leases $ (7) $ (4) Financing cash flows from finance leases $ (39) $ (33) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7 $ 7 Finance leases $ 23 $ 59 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 2,918 $ 535 Operating lease liabilities (current) Accrued liabilities $ 335 $ 62 Operating lease liabilities (noncurrent) Other noncurrent liabilities 2,678 567 Total operating lease liabilities $ 3,013 $ 629 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 275 $ 249 Finance lease liabilities (current) Accrued liabilities $ 78 $ 58 Finance lease liabilities (noncurrent) Other noncurrent liabilities 206 197 Total finance lease liabilities $ 284 $ 255 June 30, 2022 December 31, 2021 Weighted average remaining lease term (in years): Operating leases 11 12 Finance leases 5 5 Weighted average discount rate: Operating leases 3.83 % 2.94 % Finance leases 3.13 % 3.57 % |
Schedule of Finance Lease Maturities | Maturities of lease liabilities as of June 30, 2022 were as follows (in millions): Operating Leases Finance Leases 2022 (excluding the two quarters ended June 30, 2022) $ 260 $ 79 2023 425 75 2024 373 57 2025 319 37 2026 289 26 Thereafter 2,070 34 Total lease payments 3,736 308 Less: Imputed interest (723) (24) Total $ 3,013 $ 284 |
Schedule of Operating Lease Maturities | Maturities of lease liabilities as of June 30, 2022 were as follows (in millions): Operating Leases Finance Leases 2022 (excluding the two quarters ended June 30, 2022) $ 260 $ 79 2023 425 75 2024 373 57 2025 319 37 2026 289 26 Thereafter 2,070 34 Total lease payments 3,736 308 Less: Imputed interest (723) (24) Total $ 3,013 $ 284 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the impact of derivative financial instruments on the Company's consolidated balance sheets (in millions). There were no amounts eligible to be offset under master netting agreements as of June 30, 2022 and December 31, 2021. The fair value of the Company's derivative financial instruments was determined using a market-based approach (Level 2). June 30, 2022 December 31, 2021 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- Accounts payable and accrued liabilities Other non- Notional Prepaid expenses and other current assets Other non- Accounts payable and accrued liabilities Other non- Cash flow hedges: Foreign exchange $ 2,196 $ 31 $ 54 $ 80 $ 15 $ 777 $ 14 $ — $ 2 $ — Interest rate swaps — — — — — 2,000 44 — 11 — Net investment hedges: (a) Cross-currency swaps 1,620 16 29 — 59 3,512 54 61 20 76 No hedging designation: Foreign exchange 806 4 1 — 98 1,020 — — 34 66 Interest rate swaps — — — — — 15,000 126 28 9 5 Cross-currency swaps 139 3 2 — — 139 3 — — 5 Total $ 54 $ 86 $ 80 $ 172 $ 241 $ 89 $ 76 $ 152 (a) Excludes £400 million of sterling notes ($486 million equivalent at June 30, 2022) and €164 million of euro-denominated notes ( $173 million equivalent at |
Schedule of Derivative Instruments Designated as Cash Flow Hedges, Effect on Income and Other Comprehensive Income (Loss) | The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ (7) $ (7) $ (20) $ 30 Interest rate - derivative adjustments — (134) — 126 Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue — — 1 — Foreign exchange - distribution revenue (2) 2 2 (1) Foreign exchange - costs of revenues 18 — 19 — Interest rate - interest expense, net (1) (1) (1) (1) |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table presents the pre-tax impact of derivatives designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other gains (losses) reclassified from accumulated other comprehensive loss to income during the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2022 2021 2022 2021 Cross currency swaps $ 52 $ (5) Interest expense, net $ 7 $ 11 Euro-denominated notes (foreign denominated debt) 6 — N/A — — Sterling notes (foreign denominated debt) 41 (3) N/A — — Total $ 99 $ (8) $ 7 $ 11 Six Months Ended June 30, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2022 2021 2022 2021 Cross currency swaps $ 71 $ 47 Interest expense, net $ 22 $ 21 Euro denominated notes (foreign denominated debt) 6 — N/A — — Sterling notes (foreign denominated debt) 54 (8) N/A — — Total $ 131 $ 39 $ 22 $ 21 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in other (expense) income, net in the consolidated statements of operations (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest rate swaps $ — $ — $ 512 $ — Cross-currency swaps 7 1 7 6 Foreign exchange derivatives (31) (2) (46) (27) Total in other (expense) income, net $ (24) $ (1) $ 473 $ (21) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on Recurring Basis | The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). June 30, 2022 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 39 $ — $ 39 Equity securities: Money market fund Cash and cash equivalents 2 — — 2 Mutual funds Prepaid expenses and other current assets 26 — — 26 Mutual funds Other noncurrent assets 231 — — 231 Company-owned life insurance contracts Other noncurrent assets — 100 — 100 Total $ 259 $ 139 $ — $ 398 Liabilities Deferred compensation plan Accrued liabilities $ 52 $ — $ — $ 52 Deferred compensation plan Other noncurrent liabilities 615 — — 615 Total $ 667 $ — $ — $ 667 December 31, 2021 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 426 $ — $ 426 Equity securities: Money market funds Cash and cash equivalents 425 — — 425 Mutual funds Prepaid expenses and other current assets 12 — — 12 Company-owned life insurance contracts Prepaid expenses and other current assets — 1 — 1 Mutual funds Other noncurrent assets 215 — — 215 Company-owned life insurance contracts Other noncurrent assets — 32 — 32 Total $ 652 $ 459 $ — $ 1,111 Liabilities Deferred compensation plan Accrued Liabilities $ 21 $ — $ — $ 21 Deferred compensation plan Other noncurrent liabilities 238 — — 238 Total $ 259 $ — $ — $ 259 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity-Based Compensation Expense | The table below presents the components of share-based compensation expense (in millions), which is recorded in selling, general and administrative expense in the consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 PRSUs $ (1) $ (7) $ 2 $ 12 RSUs $ 128 $ 29 $ 166 $ 51 Stock options $ 23 $ 16 $ 41 $ 26 SARs $ — $ (7) $ 1 $ 6 Total share-based compensation expense $ 150 $ 31 $ 210 $ 95 Tax benefit recognized $ 31 $ 7 $ 40 $ 15 |
Schedule of Other Share-based Compensation, Activity | The table below presents awards granted (in millions, except weighted-average grant price). Six Months Ended June 30, 2022 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.4 $ 28.11 RSUs 30.1 $ 24.75 Stock options 0.4 $ 32.90 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The table below presents unrecognized compensation cost related to non-vested share-based awards and the weighted-average amortization period over which these expenses will be recognized as of June 30, 2022 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 3 0.5 RSUs 696 2.3 Stock options 188 3.8 Total unrecognized compensation cost $ 887 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Assets (Liabilities) Recognized on Consolidated Balance Sheet | Total assets (liabilities) recognized for all acquired pension plans on our consolidated balance sheets were as follows (in millions). April 8, 2022 Plan assets, net $ 200 Current portion of employee benefit obligation (27) Noncurrent portion of employee benefit obligation (305) Net amount recognized $ (132) |
Schedule of Assumptions Used | April 8, 2022 U.S. Nonqualified Plans Non-U.S. Pension Plans Discount rate 3.89 % 2.51 % Long-term rate of return on plan assets N/A 1.61 % Rate of compensation increases N/A 5.82 % |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): June 30, 2022 December 31, 2021 Accrued participation and residuals $ 3,007 $ — Accrued production 1,461 4 Content rights payable 1,453 772 Accrued payroll and related benefits 1,432 533 Other accrued liabilities 2,926 921 Total accrued expenses and other current liabilities $ 10,279 $ 2,230 |
Schedule of Other Income, Net | Other (Expense) Income, net Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency (losses) gain, net $ (81) $ (5) $ (70) $ 47 (Losses) gains on derivative instruments, net (24) (1) 473 (21) Change in the value of investments with readily determinable fair value (70) 29 (90) 46 Gain on sale of equity method investments 133 (1) 133 4 Change in fair value of equity investments without readily determinable fair value — 81 — 81 Other (expense) income, net (9) 2 (7) 16 Total other (expense) income, net $ (51) $ 105 $ 439 $ 173 |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended June 30, 2022 2021 Cash paid for taxes, net $ 442 $ 249 Cash paid for interest, net 390 337 Non-cash investing and financing activities: Equity issued for the acquisition of WarnerMedia 42,309 — Accrued purchases of property and equipment 47 32 Assets acquired under finance lease and other arrangements 27 50 |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash June 30, 2022 December 31, 2021 Cash and cash equivalents $ 2,575 $ 3,905 Restricted cash - recorded in prepaid expenses and other current assets (1) 1,321 — Total cash, cash equivalents, and restricted cash $ 3,896 $ 3,905 (1) Restricted cash primarily includes cash posted as collateral related to the Company’s revolving receivables program. (See Note 7.) |
Comprehensive Income (Loss) | The table below presents the tax effects related to each component of other comprehensive income (loss) and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit (expense) Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (560) $ 2 $ (558) $ 121 $ (2) $ 119 Net investment hedges 97 (27) 70 (13) 2 (11) Total currency translation adjustments (463) (25) (488) 108 — 108 Derivative adjustments: Unrealized (losses) gains (7) — (7) (141) 29 (112) Reclassifications from other comprehensive income to net income (15) 4 (11) (1) 1 — Total derivative adjustments (22) 4 (18) (142) 30 (112) Other comprehensive (loss) income adjustments $ (485) $ (21) $ (506) $ (34) $ 30 $ (4) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Pretax Tax benefit (expense) Net-of-tax Pretax Tax benefit Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (665) $ 2 $ (663) $ (109) $ 14 $ (95) Net investment hedges 119 (41) 78 29 7 36 Reclassifications: Loss on disposition (2) — (2) — — — Total currency translation adjustments (548) (39) (587) (80) 21 (59) Derivative adjustments: Unrealized (losses) gains (20) 1 (19) 156 (33) 123 Reclassifications from other comprehensive income to net income (21) 4 (17) 2 — 2 Total derivative adjustments (41) 5 (36) 158 (33) 125 Other comprehensive (loss) income adjustments $ (589) $ (34) $ (623) $ 78 $ (12) $ 66 |
Schedule of Accumulated Other Comprehensive Loss | The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions). Three Months Ended June 30, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (944) $ 10 $ (13) $ (947) Other comprehensive income (loss) before reclassifications (488) (7) — (495) Reclassifications from accumulated other comprehensive loss to net income — (11) — (11) Other comprehensive income (loss) (488) (18) — (506) Ending balance $ (1,432) $ (8) $ (13) $ (1,453) Three Months Ended June 30, 2021 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (722) $ 156 $ (15) $ (581) Other comprehensive income (loss) 108 (112) — (4) Ending balance $ (614) $ 44 $ (15) $ (585) Six Months Ended June 30, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (845) $ 28 $ (13) $ (830) Other comprehensive (loss) before reclassifications (585) (19) — (604) Reclassifications from accumulated other comprehensive loss to net income (2) (17) — (19) Other comprehensive (loss) (587) (36) — (623) Ending balance $ (1,432) $ (8) $ (13) $ (1,453) Six Months Ended June 30, 2021 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (555) $ (81) $ (15) $ (651) Other comprehensive (loss) income before reclassifications (59) 123 — 64 Reclassifications from accumulated other comprehensive loss to net income — 2 — 2 Other comprehensive (loss) income (59) 125 — 66 Ending balance $ (614) $ 44 $ (15) $ (585) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions, Revenues and Expenses | The table below presents a summary of the transactions with related parties (in millions). Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues and service charges: Liberty Group $ 535 $ 165 $ 693 $ 340 Equity method investees 179 68 237 124 Other 156 24 189 51 Total revenues and service charges $ 870 $ 257 $ 1,119 $ 515 Expenses $ (166) $ (57) $ (242) $ (114) Distributions to noncontrolling interests and redeemable noncontrolling interests $ (40) $ (30) $ (264) $ (213) |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from and payables due to related parties (in millions). June 30, 2022 December 31, 2021 Receivables $ 821 $ 172 Payables $ 38 $ 23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Significant Contractual Commitments | Long-Term Debt Year Ending December 31, Content Other Purchase Obligations Pension and Other Employee Obligations Principal Interest Total 2022 (remaining six months) $ 5,658 $ 1,148 $ 321 $ — $ 1,133 $ 8,260 2023 6,468 932 463 1,349 2,243 11,455 2024 5,223 463 225 4,271 2,159 12,341 2025 3,807 289 100 9,647 1,863 15,706 2026 2,512 105 67 790 1,729 5,203 Thereafter 10,880 101 232 36,702 27,487 75,402 Total $ 34,548 $ 3,038 $ 1,408 $ 52,759 $ 36,614 $ 128,367 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | Revenues Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 2,796 $ 2 $ 2,801 $ 7 Networks 5,742 2,844 8,615 5,504 DTC 2,225 216 2,506 343 Corporate 13 — 13 — Inter-segment eliminations (949) — (949) — Total revenues $ 9,827 $ 3,062 $ 12,986 $ 5,854 |
Schedule Of Adjusted EBITDA By Segment | Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Studios $ 239 $ 2 $ 242 $ 4 Networks 2,262 1,538 3,617 2,947 DTC (518) (329) (745) (819) Corporate (305) (94) (409) (178) Inter-segment eliminations (14) — (14) — Adjusted EBITDA $ 1,664 $ 1,117 $ 2,691 $ 1,954 |
Schedule of Reconciliation of Net Income available to Discovery, Inc. to total Adjusted EBITDA | Reconciliation of Net (Loss) Income available to Warner Bros. Discovery, Inc. to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net (loss) income available to Warner Bros. Discovery, Inc. $ (3,418) $ 672 $ (2,962) $ 812 Net income attributable to redeemable noncontrolling interests 3 8 6 13 Net income attributable to noncontrolling interests 7 38 23 84 Income tax (benefit) expense (836) 2 (635) 108 (Loss) income before income taxes (4,244) 720 (3,568) 1,017 Other expense (income), net 51 (105) (439) (173) Loss from equity investees, net 43 7 57 11 Interest expense, net 511 157 664 320 Operating (loss) income (3,639) 779 (3,286) 1,175 Loss (gain) on disposition 4 (72) 4 (72) Restructuring and other charges 1,033 7 1,038 22 Depreciation and amortization 2,266 341 2,791 702 Employee share-based compensation 147 27 204 88 Transaction and integration costs 983 35 1,070 39 Amortization of fair value step-up for content 870 — 870 — Adjusted EBITDA $ 1,664 $ 1,117 $ 2,691 $ 1,954 |
Description of Business and B_4
Description of Business and Basis of Presentation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 08, 2022 USD ($) | Apr. 07, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) language countryAndTerritory | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of countries and territories available | countryAndTerritory | 220 | ||||
Number of languages available | language | 50 | ||||
Cash acquired from business acquisition | $ 2,419 | $ 0 | |||
WarnerMedia | |||||
Business Acquisition [Line Items] | |||||
Preliminary purchase consideration | $ 42,376 | ||||
Percentage of voting interests acquired | 29% | ||||
WarnerMedia | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Cash acquired from business acquisition | $ 1,200 | ||||
WarnerMedia | WarnerMedia | |||||
Business Acquisition [Line Items] | |||||
Preliminary purchase consideration | $ 42,400 | ||||
WarnerMedia | AT&T | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 71% | ||||
WarnerMedia | AT&T | |||||
Business Acquisition [Line Items] | |||||
Preliminary purchase consideration | $ 40,500 |
Description of Business and B_5
Description of Business and Basis of Presentation - Schedule of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 6 | $ 0 |
Work in process | 6 | 0 |
Finished goods | 127 | 1 |
Total inventory | $ 139 | $ 1 |
Equity and Earnings Per Share -
Equity and Earnings Per Share - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 08, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | |||||
Selling, general and administrative | $ 3,538 | $ 952 | $ 4,578 | $ 2,003 | |
WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Equity interest issued or issuable (in shares) | 1,732,000,000 | ||||
Series A Common Stock, par value $0.01 per share | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Equity interest issued or issuable (in shares) | 1,700,000,000 | ||||
Series A Common Stock, par value $0.01 per share | AT&T | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Entity shares issued per acquiree share | 1 | ||||
Series B Common Stock | AT&T | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Entity shares issued per acquiree share | 1 | ||||
Series C Common Stock | AT&T | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Entity shares issued per acquiree share | 1 | ||||
Series A-1 Convertible Preferred Stock | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Selling, general and administrative | $ 789 | ||||
Series A-1 Convertible Preferred Stock | AT&T | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Entity shares issued per acquiree share | 13.1135 | ||||
Series C-1 Convertible Preferred Stock | AT&T | WarnerMedia | |||||
Class of Stock [Line Items] | |||||
Entity shares issued per acquiree share | 19.3648 |
Equity and Earnings Per Share_2
Equity and Earnings Per Share (Calculated Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net (loss) income | $ (3,408) | $ 718 | $ (2,933) | $ 909 |
Less: | ||||
Net income attributable to noncontrolling interests | (7) | (38) | (23) | (84) |
Net income attributable to redeemable noncontrolling interests | (3) | (8) | (6) | (13) |
Net (loss) income available to Warner Bros. Discovery, Inc. | (3,418) | 600 | (3,011) | 725 |
Add: | ||||
Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net income per share | $ (3,418) | $ 672 | $ (3,011) | $ 812 |
Denominator — weighted average: | ||||
Common shares outstanding — basic (in shares) | 2,286 | 589 | 1,443 | 587 |
Impact of assumed preferred stock conversion (in shares) | 0 | 71 | 0 | 71 |
Dilutive effect of share-based awards (in shares) | 0 | 4 | 0 | 8 |
Common shares outstanding — diluted (in shares) | 2,286 | 664 | 1,443 | 666 |
Basic net income per share allocated to common stockholders (in dollars per share) | $ (1.50) | $ 1.02 | $ (2.09) | $ 1.23 |
Diluted net income per share allocated to common stockholders (in dollars per share) | $ (1.50) | $ 1.01 | $ (2.09) | $ 1.22 |
Series A-1 Convertible Preferred Stock | ||||
Less: | ||||
Allocation of undistributed income to Series A-1 convertible preferred stock | $ 0 | $ (72) | $ (49) | $ (87) |
Add: | ||||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | $ 0 | $ 72 | $ 0 | $ 87 |
Equity and Earnings Per Share_3
Equity and Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Anti-dilutive share-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 57 | 16 | 45 | 6 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) countryAndTerritory | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) countryAndTerritory | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||
Number of countries and territories available | countryAndTerritory | 220 | 220 | ||
Acquisitions | $ 21,513 | |||
Transaction-related costs incurred | $ 983 | $ 35 | 1,070 | $ 39 |
Networks | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | 7,016 | |||
DTC | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | 5,585 | |||
Studios | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | 8,912 | |||
WarnerMedia | ||||
Business Acquisition [Line Items] | ||||
Transaction-related costs incurred | $ 194 | $ 281 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Preliminary Purchase Price (Details) - WarnerMedia $ / shares in Units, shares in Millions | Apr. 08, 2022 USD ($) d $ / shares shares |
Business Acquisition [Line Items] | |
Fair value of WBD common stock issued to AT&T shareholders | $ 42,309,000,000 |
Estimated fair value of share-based compensation awards attributable to pre-combination services | 94,000,000 |
Settlement of preexisting relationships | (27,000,000) |
Preliminary purchase consideration | $ 42,376,000,000 |
Equity interest issued or issuable (in shares) | shares | 1,732 |
Business acquisition, share price (in dollars per share) | $ / shares | $ 24.43 |
Percentage of voting interests acquired | 29% |
Number of trading days | d | 10 |
Gain (loss) recognized upon settlement | $ 0 |
AT&T | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 71% |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Consideration Paid (Details) - USD ($) $ in Millions | Apr. 08, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 34,273 | $ 12,912 | |
Intangible assets | $ 44,889 | ||
WarnerMedia | |||
Business Acquisition [Line Items] | |||
Cash | 2,419 | ||
Accounts receivable | 4,224 | ||
Other current assets | 4,619 | ||
Film and television library | 28,729 | ||
Property and equipment | 4,260 | ||
Goodwill | 21,513 | ||
Intangible assets | 44,889 | ||
Other noncurrent assets | 5,206 | ||
Current liabilities | (10,544) | ||
Debt assumed | (41,671) | $ (1,500) | |
Deferred income taxes | (13,264) | ||
Other noncurrent liabilities | (8,004) | ||
Preliminary purchase consideration | $ 42,376 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Schedule of Intangible Assets Acquired (Details) $ in Millions | Apr. 08, 2022 USD ($) |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 44,889 |
Trade names | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 21,084 |
Weighted Average Useful Life in Years | 25 years |
Affiliate, advertising and subscriber relationships | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 14,700 |
Weighted Average Useful Life in Years | 6 years |
Franchises | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 7,900 |
Weighted Average Useful Life in Years | 35 years |
Other intangible assets | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 1,205 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions - Schedule of Revenues and Earnings Reported Within Consolidated Financial Statements (Details) - WarnerMedia - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Revenues | $ 7,732 | $ 7,732 |
Net loss available to Warner Bros. Discovery, Inc. | (2,911) | (2,911) |
Advertising | ||
Business Acquisition [Line Items] | ||
Revenues | 1,163 | 1,163 |
Distribution | ||
Business Acquisition [Line Items] | ||
Revenues | 3,526 | 3,526 |
Content | ||
Business Acquisition [Line Items] | ||
Revenues | 2,835 | 2,835 |
Other | ||
Business Acquisition [Line Items] | ||
Revenues | $ 208 | $ 208 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions - Schedule of Pro Forma (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Net loss available to Warner Bros. Discovery, Inc. | $ (2,151) | $ (341) | $ (2,437) | |
WarnerMedia | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 10,823 | $ 11,211 | $ 22,264 | $ 21,933 |
Net loss available to Warner Bros. Discovery, Inc. | $ (1,912) |
Acquisitions and Dispositions_7
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of equity method investments | $ 133 | $ (1) | $ 133 | $ 4 | ||
Loss (gain) on disposition | $ (4) | $ 72 | $ (4) | $ 72 | ||
Discovery Education | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Minority interest sale price | $ 138 | |||||
Gain on sale of equity method investments | $ 133 | |||||
Hicks Equity Partners | Great American Country Network | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale price | $ 90 | |||||
Loss (gain) on disposition | $ 76 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 12,912 | ||||
Segment recast | 0 | ||||
Acquisitions | 21,513 | ||||
Foreign currency translation and other | (152) | ||||
Ending balance | $ 34,273 | 34,273 | |||
Amortization of intangible assets | 2,004 | $ 268 | 2,439 | $ 548 | |
U.S. Networks | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 10,813 | ||||
Segment recast | (10,813) | ||||
Acquisitions | 0 | ||||
Foreign currency translation and other | 0 | ||||
Ending balance | 0 | 0 | |||
Goodwill, accumulated impairments | 1,600 | 1,600 | $ 1,600 | ||
International Networks | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 2,099 | ||||
Segment recast | (2,059) | ||||
Acquisitions | 0 | ||||
Foreign currency translation and other | (40) | ||||
Ending balance | 0 | 0 | |||
Studios | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 0 | ||||
Segment recast | 0 | ||||
Acquisitions | 8,912 | ||||
Foreign currency translation and other | 0 | ||||
Ending balance | 8,912 | 8,912 | |||
Networks | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 0 | ||||
Segment recast | 10,555 | ||||
Acquisitions | 7,016 | ||||
Foreign currency translation and other | (92) | ||||
Ending balance | 17,479 | 17,479 | |||
DTC | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 0 | ||||
Segment recast | 2,317 | ||||
Acquisitions | 5,585 | ||||
Foreign currency translation and other | (20) | ||||
Ending balance | $ 7,882 | $ 7,882 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 56,411 | $ 11,544 |
Accumulated Amortization | (7,687) | (5,388) |
Intangible assets, net | 48,724 | 6,156 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 22,918 | 1,716 |
Accumulated Amortization | (1,064) | (858) |
Intangible assets, net | $ 21,854 | 858 |
Weighted Average Amortization Period | 32 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 24,029 | 9,433 |
Accumulated Amortization | (6,307) | (4,303) |
Intangible assets, net | $ 17,722 | 5,130 |
Weighted Average Amortization Period | 8 years | |
Franchises | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 7,900 | 0 |
Accumulated Amortization | (51) | 0 |
Intangible assets, net | $ 7,849 | 0 |
Weighted Average Amortization Period | 35 years | |
Character rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 995 | 0 |
Accumulated Amortization | (16) | 0 |
Intangible assets, net | $ 979 | 0 |
Weighted Average Amortization Period | 14 years | |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 569 | 395 |
Accumulated Amortization | (249) | (227) |
Intangible assets, net | $ 320 | $ 168 |
Weighted Average Amortization Period | 6 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Expected Future Amortization (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remaining 2022 | $ 3,790 |
2023 | 6,497 |
2024 | 4,976 |
2025 | 3,600 |
2026 | 2,590 |
Thereafter | $ 27,271 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Trademarks | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 0 | $ 161 |
Restructuring and Other Charg_3
Restructuring and Other Charges (By Reporting Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ 1,033 | $ 7 | $ 1,038 | $ 22 |
Operating Segments | Studios | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 200 | 0 | 200 | 0 |
Operating Segments | Networks | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 308 | 7 | 312 | 21 |
Operating Segments | DTC | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 475 | 0 | 475 | 1 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ 50 | $ 0 | $ 51 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 1,033 | $ 7 | $ 1,038 | $ 22 |
Content Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 496 | 501 | ||
Severance And Management Changes | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 208 | |||
Content Development And Abandonment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 329 | $ 329 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Liabilities) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Restructuring Reserve | |
Beginning balance | $ 19 |
Segment recast | 0 |
Acquisitions | 109 |
Employee termination accruals, net | 209 |
Cash paid | (34) |
Ending balance | 303 |
Corporate | |
Restructuring Reserve | |
Beginning balance | 2 |
Segment recast | 2 |
Acquisitions | 55 |
Employee termination accruals, net | 126 |
Cash paid | (15) |
Ending balance | 170 |
U.S. Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 4 |
Segment recast | (4) |
Acquisitions | 0 |
Employee termination accruals, net | 0 |
Cash paid | 0 |
Ending balance | 0 |
International Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 13 |
Segment recast | (13) |
Acquisitions | 0 |
Employee termination accruals, net | 0 |
Cash paid | 0 |
Ending balance | 0 |
Studios | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 0 |
Segment recast | 0 |
Acquisitions | 40 |
Employee termination accruals, net | 54 |
Cash paid | (10) |
Ending balance | 84 |
Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 0 |
Segment recast | 15 |
Acquisitions | 0 |
Employee termination accruals, net | 16 |
Cash paid | (6) |
Ending balance | 25 |
DTC | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 0 |
Segment recast | 0 |
Acquisitions | 14 |
Employee termination accruals, net | 13 |
Cash paid | (3) |
Ending balance | $ 24 |
Revenues - Revenue Recognition
Revenues - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 9,827 | $ 3,062 | $ 12,986 | $ 5,854 |
Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,721 | 1,634 | 4,197 | 3,043 |
Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,838 | 1,312 | 6,190 | 2,570 |
Content | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,064 | 100 | 2,387 | 212 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 204 | 16 | 212 | 29 |
Operating Segments | Studios | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,796 | 2 | 2,801 | 7 |
Operating Segments | Studios | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10 | 0 | 10 | 0 |
Operating Segments | Studios | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4 | 0 | 4 | 0 |
Operating Segments | Studios | Content | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,636 | 2 | 2,641 | 7 |
Operating Segments | Studios | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 146 | 0 | 146 | 0 |
Operating Segments | Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,742 | 2,844 | 8,615 | 5,504 |
Operating Segments | Networks | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,624 | 1,601 | 4,054 | 2,993 |
Operating Segments | Networks | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,841 | 1,132 | 3,961 | 2,281 |
Operating Segments | Networks | Content | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 220 | 96 | 536 | 202 |
Operating Segments | Networks | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57 | 15 | 64 | 28 |
Operating Segments | DTC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,225 | 216 | 2,506 | 343 |
Operating Segments | DTC | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 96 | 33 | 142 | 50 |
Operating Segments | DTC | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,993 | 180 | 2,225 | 289 |
Operating Segments | DTC | Content | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 132 | 2 | 134 | 3 |
Operating Segments | DTC | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4 | 1 | 5 | 1 |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (936) | 0 | (936) | 0 |
Corporate | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (9) | 0 | (9) | 0 |
Corporate | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate | Content | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (924) | 0 | (924) | 0 |
Corporate | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ (3) | $ 0 | $ (3) | $ 0 |
Revenues - Allowance for Credit
Revenues - Allowance for Credit Loss (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Allowance for credit losses | $ 138 | $ 54 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to the contract liability (deferred revenues) | $ 347 | $ 162 |
Increase in deferred revenue related to the Merger and cash payments received | $ 1,476 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Current contract assets | $ 12 | $ 0 |
Noncurrent contract assets | 26 | 0 |
Current contract liabilities | 1,663 | 478 |
Noncurrent contract liabilities | $ 242 | $ 95 |
Revenues - Transaction Price Al
Revenues - Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Annual license fee, monthly percentage | 8% |
Distribution | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,700 |
Remaining performance obligations, expected timing of satisfaction, period | 7 years |
Content Licensing Contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5,200 |
Remaining performance obligations, expected timing of satisfaction, period | 7 years |
Brand Licensing Contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,300 |
Remaining performance obligations, expected timing of satisfaction, period | 21 years |
Advertising | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 595 |
Remaining performance obligations, expected timing of satisfaction, period | 3 years |
Sales of Receivables - Narrativ
Sales of Receivables - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving receivables agreement, maximum transfer amount | $ 6,000 | $ 6,000 |
Loss on revolving receivables program | 41 | 41 |
Outstanding receivables derecognized | 5,700 | 5,700 |
Accounts receivable sold under factoring arrangements | 103 | 103 |
Asset Pledged as Collateral | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Cash | 1,287 | 1,287 |
Pledged receivables | $ 1,838 | $ 1,838 |
Sales of Receivables - Summary
Sales of Receivables - Summary of Receivables Sold (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Receivables [Abstract] | |
Gross receivables sold/cash proceeds received | $ 3,205 |
Collections reinvested under revolving agreement | (3,505) |
Net cash proceeds received | (300) |
Net receivables sold | 3,198 |
Obligations recorded | $ 98 |
Sales of Receivables - Summar_2
Sales of Receivables - Summary of Accounts Serviced (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Prepaid expenses and other current assets | $ 5,825 | $ 913 |
Asset Pledged as Collateral | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Gross receivables pledged as collateral | 1,838 | |
Restricted cash pledged as collateral | 1,287 | |
Asset Pledged as Collateral | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Receivables, net | 1,629 | |
Asset Pledged as Collateral | Prepaid expenses and other current assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Prepaid expenses and other current assets | 1,287 | |
Asset Pledged as Collateral | Other noncurrent assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Other noncurrent assets | $ 209 |
Content Rights - Schedule of Co
Content Rights - Schedule of Content Rights (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Content Rights [Line Items] | ||
Predominantly Monetized Individually | $ 8,208 | $ 9 |
Predominantly Monetized as a Group | 11,473 | 3,219 |
Total | 19,681 | 3,228 |
Programming costs, less amortization | 10,288 | 849 |
Game development costs, less amortization | 656 | 0 |
Total film and television content rights | 30,625 | 4,077 |
Total film and television content rights | (505) | (245) |
Total noncurrent film and television content rights, net | 30,120 | 3,832 |
Theatrical film production costs | ||
Content Rights [Line Items] | ||
Predominantly Monetized Individually, Released, less amortization | 3,120 | 0 |
Predominantly Monetized Individually, Completed and not released | 318 | 0 |
Predominantly Monetized Individually, In production | 1,865 | 0 |
Predominantly Monetized Individually, Development and pre-production | 144 | 0 |
Predominantly Monetized as a Group, Released, less amortization | 0 | 0 |
Predominantly Monetized as a Group, Completed and not released | 0 | 0 |
Predominantly Monetized as a Group, In production | 0 | 0 |
Predominantly Monetized as a Group, Development and pre-production | 0 | 0 |
Total, Released, less amortization | 3,120 | 0 |
Total, Completed and not released | 318 | 0 |
Total, In production | 1,865 | 0 |
Total, Development and pre-production | 144 | 0 |
Television production costs | ||
Content Rights [Line Items] | ||
Predominantly Monetized Individually, Released, less amortization | 1,585 | 9 |
Predominantly Monetized Individually, Completed and not released | 649 | 0 |
Predominantly Monetized Individually, In production | 490 | 0 |
Predominantly Monetized Individually, Development and pre-production | 37 | 0 |
Predominantly Monetized as a Group, Released, less amortization | 7,010 | 2,432 |
Predominantly Monetized as a Group, Completed and not released | 733 | 0 |
Predominantly Monetized as a Group, In production | 3,711 | 770 |
Predominantly Monetized as a Group, Development and pre-production | 19 | 17 |
Total, Released, less amortization | 8,595 | 2,441 |
Total, Completed and not released | 1,382 | 0 |
Total, In production | 4,201 | 770 |
Total, Development and pre-production | $ 56 | $ 17 |
Content Rights (Schedule Of Con
Content Rights (Schedule Of Content Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Monetized individually | ||||
Content amortization | $ 1,927 | $ 25 | $ 2,177 | $ 49 |
Content impairments | 94 | 0 | 94 | 0 |
Total content expense monetized individually | 2,021 | 25 | 2,271 | 49 |
Monetized as a group | ||||
Content amortization | 3,189 | 747 | 3,908 | 1,466 |
Content impairments | 408 | 1 | 412 | 1 |
Total content expense monetized as a group | 3,597 | 748 | 4,320 | 1,467 |
Total content expense | $ 5,618 | $ 773 | $ 6,591 | $ 1,516 |
Content Rights - Narrative (Det
Content Rights - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Content Expense [Line Items] | ||||
Restructuring and other charges | $ 1,033 | $ 7 | $ 1,038 | $ 22 |
Content Impairment | ||||
Content Expense [Line Items] | ||||
Restructuring and other charges | 496 | 501 | ||
Content Development And Abandonment | ||||
Content Expense [Line Items] | ||||
Restructuring and other charges | $ 329 | $ 329 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 637 | $ 496 |
Total investments | 1,860 | 1,157 |
Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments with readily determinable fair values | 59 | 120 |
Other noncurrent assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments: | $ 1,164 | 541 |
Other noncurrent assets | The Chernin Group (TCG) 2.0-A, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 44% | |
Equity method investments: | $ 352 | 0 |
Other noncurrent assets | nC+ | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 32% | |
Equity method investments: | $ 129 | 151 |
Other noncurrent assets | Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments: | 683 | 390 |
Other noncurrent assets | Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments with readily determinable fair values | 45 | 80 |
Prepaid expenses and other current assets | Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments with readily determinable fair values | $ 14 | $ 40 |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Apr. 08, 2022 | Dec. 31, 2021 |
WarnerMedia | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 671 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 772 | $ 126 | |
Variable interest, maximum exposure to loss | $ 810 |
Investments (Common Stock Inves
Investments (Common Stock Investments with Readily Determinable Fair Value ) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments [Abstract] | ||||
Net (losses) gains recognized during the period on equity securities | $ (41) | $ 29 | $ (61) | $ 62 |
Less: Net gains recognized on equity securities sold | 0 | 0 | 0 | 16 |
Unrealized (losses) gains recognized during reporting period on equity securities still held at the reporting date | $ (41) | $ 29 | $ (61) | $ 46 |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Apr. 08, 2022 | Dec. 31, 2021 |
Other Investment Not Readily Marketable [Line Items] | |||
Equity investments without readily determinable fair value | $ 637 | $ 496 | |
Equity securities without readily determinable fair value, cumulative upward adjustment | 9 | ||
Equity securities without readily determinable fair value, cumulative impairments | $ 88 | ||
WarnerMedia | |||
Other Investment Not Readily Marketable [Line Items] | |||
Equity investments without readily determinable fair value | $ 156 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 52,759 | $ 15,187 |
Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net | (274) | (428) |
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, | 52,485 | 14,759 |
Current portion of debt | (1,097) | (339) |
Noncurrent portion of debt | $ 51,388 | 14,420 |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | ||
Term loans with maturities of 3 years or less | Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | $ 6,500 | 0 |
Term loans with maturities of 3 years or less | Weighted Average | Term Loan | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.32% | |
Floating rate senior notes with maturities of 5 years or less | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 0 |
Floating rate senior notes with maturities of 5 years or less | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.31% | |
Senior notes with maturities of 5 years or less | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 13,742 | 4,314 |
Senior notes with maturities of 5 years or less | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.60% | |
Senior notes with maturities between 5 and 10 years | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 10,373 | 4,128 |
Senior notes with maturities between 5 and 10 years | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.25% | |
Senior notes with maturities greater than 10 years | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 21,644 | $ 6,745 |
Senior notes with maturities greater than 10 years | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.11% |
Debt (Long Term Debt) (Details)
Debt (Long Term Debt) (Details) - USD ($) | 3 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Apr. 08, 2022 | Jun. 30, 2021 | |
WarnerMedia | ||||||
Debt Instrument [Line Items] | ||||||
Debt assumed | $ 1,500,000,000 | $ 41,671,000,000 | ||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal repayments of term loans | 3,500,000,000 | |||||
Face amount | $ 10,000,000,000 | |||||
Senior Notes | WarnerMedia | ||||||
Debt Instrument [Line Items] | ||||||
Debt assumed | $ 41,500,000,000 | |||||
Senior Notes | 2.375% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt, amount | $ 327,000,000 | |||||
Debt instrument interest rate | 2.375% | |||||
Senior Notes | 3.30% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt, amount | $ 168,000,000 | |||||
Debt instrument interest rate | 3.30% | |||||
Senior Notes | 3.500% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt, amount | $ 62,000,000 | |||||
Debt instrument interest rate | 3.50% | |||||
Senior Notes | 4.75% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt, amount | $ 335,000,000 | |||||
Debt instrument interest rate | 4.375% | |||||
Senior Notes | Un-exchanged Scripps Senior Notes | Scripps Networks | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of liabilities assumed | $ 23,000,000 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | Apr. 09, 2022 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 04, 2016 USD ($) |
Line of Credit Facility [Line Items] | ||||
Total debt | $ 52,759,000,000 | $ 15,187,000,000 | ||
Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | 1,500,000,000 | |||
Total debt | 0 | $ 0 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Minimum consolidated interest coverage ratio | 3 | |||
Revolving Credit Facility | Closing Of Transaction With WarnerMedia | ||||
Line of Credit Facility [Line Items] | ||||
Maximum consolidated leverage ratio | 5.75 | |||
Revolving Credit Facility | First Anniversary Of Closing | ||||
Line of Credit Facility [Line Items] | ||||
Maximum consolidated leverage ratio | 5 | |||
Revolving Credit Facility | Second Anniversary Of Closing | ||||
Line of Credit Facility [Line Items] | ||||
Maximum consolidated leverage ratio | 4.50 | |||
Revolving Credit Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ 6,000,000,000 | $ 2,500,000,000 | ||
Number of renewal periods | segment | 2 | |||
Term of renewal period | 364 days | |||
Revolving Credit Facility | Commercial Paper | Euro Denominated Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ 500,000,000 | |||
Revolver Sublimit For Standby Letters Of Credit | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ 150,000,000 | |||
Additional Commitments Upon Satisfaction Of Certain Conditions | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ 1,000,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Apr. 08, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, renewal term | 10 years | ||
Operating lease, liability | $ 3,013 | $ 629 | |
Lessee, operating lease, lease not yet commenced, commitment | $ 1,175 | ||
Lessee, operating lease, lease not yet commenced, renewal term | 10 years | ||
WarnerMedia | |||
Lessee, Lease, Description [Line Items] | |||
Operating leases acquired | $ 2,493 | ||
Finance leases acquired | $ 47 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, lease not yet commenced, term of contract | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, lease, remaining term of contract | 15 years | ||
Lessee, operating lease, lease not yet commenced, term of contract | 27 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 116 | $ 26 | $ 138 | $ 53 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 20 | 14 | 37 | 28 |
Interest on lease liabilities | 2 | 2 | 4 | 4 |
Total finance lease cost | 22 | 16 | 41 | 32 |
Variable lease cost | 6 | 1 | 7 | 4 |
Total lease cost | $ 144 | $ 43 | $ 186 | $ 89 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (142) | $ (56) |
Operating cash flows from finance leases | (7) | (4) |
Financing cash flows from finance leases | (39) | (33) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 7 | 7 |
Finance leases | $ 23 | $ 59 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating lease right-of-use assets | $ 2,918 | $ 535 |
Operating lease liabilities (current) | 335 | 62 |
Operating lease liabilities (noncurrent) | 2,678 | 567 |
Total | 3,013 | 629 |
Finance Leases | ||
Finance lease right-of-use assets | 275 | 249 |
Finance lease liabilities (current) | 78 | 58 |
Finance lease liabilities (noncurrent) | 206 | 197 |
Total | $ 284 | $ 255 |
Operating lease, right-of-use asset, statement of financial position | Other noncurrent assets | Other noncurrent assets |
Operating lease, liability, current, statement of financial position | Accrued liabilities | Accrued liabilities |
Operating lease, liability, noncurrent, statement of financial position | Other noncurrent liabilities | Other noncurrent liabilities |
Finance lease, right-of-use asset, statement of financial position | Property and equipment, net | Property and equipment, net |
Finance lease, liability, current, statement of financial position | Accrued liabilities | Accrued liabilities |
Finance lease, liability, noncurrent, statement of financial position | Other noncurrent liabilities | Other noncurrent liabilities |
Weighted average remaining lease term (in years): | ||
Operating leases | 11 years | 12 years |
Finance leases | 5 years | 5 years |
Weighted average discount rate: | ||
Operating lease (in percent) | 3.83% | 2.94% |
Finance lease (in percent) | 3.13% | 3.57% |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (excluding the two quarters ended June 30, 2022) | $ 260 | |
2023 | 425 | |
2024 | 373 | |
2025 | 319 | |
2026 | 289 | |
Thereafter | 2,070 | |
Total lease payments | 3,736 | |
Less: Imputed interest | (723) | |
Total | 3,013 | $ 629 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 (excluding the two quarters ended June 30, 2022) | 79 | |
2023 | 75 | |
2024 | 57 | |
2025 | 37 | |
2026 | 26 | |
Thereafter | 34 | |
Total lease payments | 308 | |
Less: Imputed interest | (24) | |
Total | $ 284 | $ 255 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2022 EUR (€) | Apr. 08, 2022 USD ($) derivative_program | |
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | $ 496 | $ 0 | ||||||
WarnerMedia | ||||||||
Derivative [Line Items] | ||||||||
Number of programs acquired | derivative_program | 2 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net deferred losses on derivative instruments expected to be reclassified from AOCI to income in the next 12 months | $ 5 | |||||||
Maximum length of time hedged in cash flow hedge | 33 years | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 2,000 | |||||||
Proceeds from derivative termination | 122 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other (expense) income, net | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | 89 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | $ 33 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign exchange | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 2,196 | $ 2,196 | $ 777 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Production Expense Hedge | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 922 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Production Rebate Hedge | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 776 | |||||||
Designated as Hedging Instrument | Net investment hedges | Cross-currency swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 1,620 | $ 664 | 1,620 | 3,512 | ||||
Gain (loss) on derivative | 78 | |||||||
Designated as Hedging Instrument | Net investment hedges | Cross-currency swaps | Other (expense) income, net | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | 10 | |||||||
Designated as Hedging Instrument | Net investment hedges | Cross-currency swaps | Euro Functional Subsidiaries | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 705 | |||||||
Designated as Hedging Instrument | Net investment hedges | Cross-currency swaps | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | 6 | |||||||
Designated as Hedging Instrument | Net investment hedges | Foreign exchange | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 173 | 173 | € 164 | |||||
Designated as Hedging Instrument | Net investment hedges | Certain Currency Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 2,000 | 2,000 | ||||||
Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on derivative | 332 | |||||||
Cash received upon settlement | 474 | |||||||
Payments for derivative instrument | 142 | |||||||
Not Designated as Hedging Instrument | Interest rate swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 5,000 | |||||||
Not Designated as Hedging Instrument | Cross-currency swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 139 | 139 | 139 | |||||
Not Designated as Hedging Instrument | Swaption Collar | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 2,500 | |||||||
Not Designated as Hedging Instrument | Purchase Payer Swaption | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 7,500 | |||||||
Not Designated as Hedging Instrument | Treasury Lock | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 14,500 | |||||||
Gain (loss) on derivative | 90 | |||||||
Proceeds from derivative termination | 90 | |||||||
Not Designated as Hedging Instrument | Foreign exchange | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 806 | 375 | $ 806 | $ 1,020 | $ 322 | |||
Gain (loss) on derivative | $ (48) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) € in Millions, £ in Millions | Jun. 30, 2022 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 EUR (€) | Apr. 08, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Derivatives, Fair Value [Line Items] | ||||||
Amounts eligible to be offset under master netting agreements | $ 0 | $ 0 | ||||
Long-term debt, gross | 52,759,000,000 | 15,187,000,000 | ||||
Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets | 54,000,000 | 241,000,000 | ||||
Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets | 86,000,000 | 89,000,000 | ||||
Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability | 80,000,000 | 76,000,000 | ||||
Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability | 172,000,000 | 152,000,000 | ||||
Not Designated as Hedging Instrument | Foreign exchange | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 806,000,000 | $ 322,000,000 | $ 375,000,000 | 1,020,000,000 | ||
Not Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 4,000,000 | 0 | ||||
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 1,000,000 | 0 | ||||
Not Designated as Hedging Instrument | Foreign exchange | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 34,000,000 | ||||
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 98,000,000 | 66,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 0 | 15,000,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swaps | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 0 | 126,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 0 | 28,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swaps | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 9,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 5,000,000 | ||||
Not Designated as Hedging Instrument | Cross-currency swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 139,000,000 | 139,000,000 | ||||
Not Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 3,000,000 | 3,000,000 | ||||
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 2,000,000 | 0 | ||||
Not Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 0 | ||||
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 5,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 2,196,000,000 | 777,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 31,000,000 | 14,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 54,000,000 | 0 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 80,000,000 | 2,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 15,000,000 | 0 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 0 | 2,000,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 0 | 44,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 0 | 0 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 11,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 0 | ||||
Net investment hedges | Designated as Hedging Instrument | Sterling Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt, gross | 486,000,000 | £ 400 | ||||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 173,000,000 | € 164 | ||||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | 1,620,000,000 | $ 664,000,000 | 3,512,000,000 | |||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 16,000,000 | 54,000,000 | ||||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative assets, Fair Value | 29,000,000 | 61,000,000 | ||||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | 0 | 20,000,000 | ||||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, Fair Value | $ 59,000,000 | $ 76,000,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Income and Comprehensive Income (Loss) Impact of Items Designated as Cash Flow Hedges) (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | $ (7) | $ (7) | $ (20) | $ 30 |
Foreign exchange | Advertising | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 0 | 0 | 1 | 0 |
Foreign exchange | Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss | (2) | 2 | 2 | (1) |
Foreign exchange | Cost of Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 18 | 0 | 19 | 0 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | 0 | (134) | 0 | 126 |
Interest rate swaps | Other (expense) income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss | $ (1) | $ (1) | $ (1) | $ (1) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Comprehensive Income (Loss) Impact of Items Designated as Net Investment Hedges) (Details) - Designated as Hedging Instrument - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | $ 99 | $ (8) | $ 131 | $ 39 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 7 | 11 | 22 | 21 |
Euro Denominated Borrowings | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | 6 | 0 | 6 | 0 |
Sterling Notes | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | 41 | (3) | 54 | (8) |
Cross-currency swaps | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | 52 | (5) | 71 | 47 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 7 | $ 11 | $ 22 | $ 21 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items not Designated as Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other (expense) income, net | $ (24) | $ (1) | $ 473 | $ (21) |
Other expense, net | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other (expense) income, net | (24) | (1) | 473 | (21) |
Interest rate swaps | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other (expense) income, net | 0 | 0 | 512 | 0 |
Cross-currency swaps | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other (expense) income, net | 7 | 1 | 7 | 6 |
Foreign exchange | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other (expense) income, net | $ (31) | $ (2) | $ (46) | $ (27) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 398 | $ 1,111 |
Liabilities | 667 | 259 |
Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 39 | 426 |
Equity securities | 2 | 425 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 26 | 12 |
Company-owned life insurance contracts | 1 | |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 231 | 215 |
Company-owned life insurance contracts | 100 | 32 |
Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 52 | 21 |
Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 615 | 238 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 259 | 652 |
Liabilities | 667 | 259 |
Level 1 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Equity securities | 2 | 425 |
Level 1 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 26 | 12 |
Company-owned life insurance contracts | 0 | |
Level 1 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 231 | 215 |
Company-owned life insurance contracts | 0 | 0 |
Level 1 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 52 | 21 |
Level 1 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 615 | 238 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 139 | 459 |
Liabilities | 0 | 0 |
Level 2 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 39 | 426 |
Equity securities | 0 | 0 |
Level 2 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 1 | |
Level 2 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 100 | 32 |
Level 2 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 2 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Equity securities | 0 | 0 |
Level 3 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 0 | |
Level 3 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 0 | 0 |
Level 3 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Level 3 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | $ 42.1 | $ 17.2 |
Share-based Compensation (Equit
Share-based Compensation (Equity-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 150 | $ 31 | $ 210 | $ 95 |
Tax benefit recognized | 31 | 7 | 40 | 15 |
PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | (1) | (7) | 2 | 12 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 128 | 29 | 166 | 51 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 23 | 16 | 41 | 26 |
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 0 | $ (7) | $ 1 | $ 6 |
Share-based Compensation (Award
Share-based Compensation (Awards Granted and Converted During Period) (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 0.4 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 28.11 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 30.1 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 24.75 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, granted (in shares) | shares | 0.4 |
Stock options, weighted-average grant price (in dollars per share) | $ / shares | $ 32.90 |
Share-based Compensation (Unrec
Share-based Compensation (Unrecognized Compensation Cost) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 887 |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3 |
Weighted-Average Amortization Period (years) | 6 months |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 696 |
Weighted-Average Amortization Period (years) | 2 years 3 months 18 days |
RSUs | Cash Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 41 |
Weighted-Average Amortization Period (years) | 2 years 2 months 12 days |
RSUs | Stock Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Amortization Period (years) | 2 years 4 months 24 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 188 |
Weighted-Average Amortization Period (years) | 3 years 9 months 18 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||||
Income tax (benefit) expense | $ (836) | $ 2 | $ (635) | $ 108 | |
Non-cash deferred Income tax benefit | $ 162 | ||||
Unrecognized tax benefits | 1,386 | 1,386 | $ 420 | ||
Unrecognized tax benefits, decreases resulting from current period tax positions | 256 | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | 258 | 258 | $ 60 | ||
WarnerMedia | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits | 860 | 860 | |||
Indemnification assets receivable | 286 | 286 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 187 | $ 187 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Millions | Apr. 08, 2022 USD ($) plan |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | $ 200 |
U.S. Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funded status | 278 |
Projected benefit obligation | $ 278 |
U.S. Nonqualified Plans | WarnerMedia | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of plans assumed | plan | 4 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funded status | $ 146 |
Projected benefit obligation | 659 |
Fair value of plan assets | $ 805 |
Benefit Plans - Asset (Liabilit
Benefit Plans - Asset (Liabilities) Recognized (Details) $ in Millions | Apr. 08, 2022 USD ($) |
Retirement Benefits [Abstract] | |
Fair value of plan assets | $ 200 |
Current portion of employee benefit obligation | (27) |
Noncurrent portion of employee benefit obligation | (305) |
Net amount recognized | $ (132) |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used in Determining Pension Plan and SERP Expense (Details) | Apr. 08, 2022 |
U.S. Nonqualified Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.89% |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 2.51% |
Long-term rate of return on plan assets | 1.61% |
Rate of compensation increases | 5.82% |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Text Block Supplement [Abstract] | ||
Accrued participation and residuals | $ 3,007 | $ 0 |
Accrued production | 1,461 | 4 |
Content rights payable | 1,453 | 772 |
Accrued payroll and related benefits | 1,432 | 533 |
Other accrued liabilities | 2,926 | 921 |
Total accrued expenses and other current liabilities | $ 10,279 | $ 2,230 |
Supplemental Disclosures - Sche
Supplemental Disclosures - Schedule of Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Foreign currency (losses) gain, net | $ (81) | $ (5) | $ (70) | $ 47 |
(Losses) gains on derivative instruments, net | (24) | (1) | 473 | (21) |
Change in the value of investments with readily determinable fair value | (70) | 29 | (90) | 46 |
Gain on sale of equity method investments | 133 | (1) | 133 | 4 |
Change in fair value of equity investments without readily determinable fair value | 0 | 81 | 0 | 81 |
Other (expense) income, net | (9) | 2 | (7) | 16 |
Total other (expense) income, net | $ (51) | $ 105 | $ 439 | $ 173 |
Supplemental Disclosures (Sch_2
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | ||
Cash paid for taxes, net | $ 442 | $ 249 |
Cash paid for interest, net | 390 | 337 |
Non-cash investing and financing activities: | ||
Equity issued for the acquisition of WarnerMedia | 42,309 | 0 |
Accrued purchases of property and equipment | 47 | 32 |
Assets acquired under finance lease and other arrangements | $ 27 | $ 50 |
Supplemental Disclosures (Sch_3
Supplemental Disclosures (Schedule of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 2,575 | $ 3,905 | ||
Restricted cash - recorded in prepaid expenses and other current assets (1) | 1,321 | 0 | ||
Total cash, cash equivalents, and restricted cash | $ 3,896 | $ 3,905 | $ 2,834 | $ 2,122 |
Supplemental Disclosures - Othe
Supplemental Disclosures - Other Comprehensive Income (Loss) Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||||
Other comprehensive income (loss) | $ (506) | $ (117) | $ (4) | $ 70 | ||
Accumulated Other Comprehensive Loss | ||||||
Derivative [Line Items] | ||||||
Unrealized (losses) gains, Net-of-tax | (495) | $ (604) | $ 64 | |||
Reclassifications, Net-of-tax | (11) | (19) | 2 | |||
Other comprehensive (loss) income, Pretax | (485) | (34) | (589) | 78 | ||
Other comprehensive (loss) income, Tax benefit (expense) | (21) | 30 | (34) | (12) | ||
Other comprehensive income (loss) | (506) | $ (117) | (4) | $ 70 | (623) | 66 |
Currency translation | ||||||
Derivative [Line Items] | ||||||
Unrealized (losses) gains, Net-of-tax | (488) | (585) | (59) | |||
Reclassifications, Net-of-tax | 0 | (2) | 0 | |||
Other comprehensive (loss) income, Pretax | (463) | 108 | (548) | (80) | ||
Other comprehensive (loss) income, Tax benefit (expense) | (25) | 0 | (39) | 21 | ||
Other comprehensive income (loss) | (488) | 108 | (587) | (59) | ||
Currency translation | Foreign currency | ||||||
Derivative [Line Items] | ||||||
Unrealized (losses) gains, Pretax | (560) | 121 | (665) | (109) | ||
Unrealized (losses) gains, Tax benefit (expense) | 2 | (2) | 2 | 14 | ||
Unrealized (losses) gains, Net-of-tax | (558) | 119 | (663) | (95) | ||
Currency translation | Foreign currency | Disposal Group, Not Discontinued Operation, Gain (Loss) On Disposal | ||||||
Derivative [Line Items] | ||||||
Reclassifications, Pretax | (2) | 0 | ||||
Reclassifications, Tax benefit (expense) | 0 | 0 | ||||
Reclassifications, Net-of-tax | (2) | 0 | ||||
Currency translation | Net investment hedges | ||||||
Derivative [Line Items] | ||||||
Unrealized (losses) gains, Pretax | 97 | (13) | 119 | 29 | ||
Unrealized (losses) gains, Tax benefit (expense) | (27) | 2 | (41) | 7 | ||
Unrealized (losses) gains, Net-of-tax | 70 | (11) | 78 | 36 | ||
Derivative Adjustments | ||||||
Derivative [Line Items] | ||||||
Unrealized (losses) gains, Pretax | (7) | (141) | (20) | 156 | ||
Unrealized (losses) gains, Tax benefit (expense) | 0 | 29 | 1 | (33) | ||
Unrealized (losses) gains, Net-of-tax | (7) | (112) | (19) | 123 | ||
Reclassifications, Net-of-tax | (11) | (17) | 2 | |||
Other comprehensive (loss) income, Pretax | (22) | (142) | (41) | 158 | ||
Other comprehensive (loss) income, Tax benefit (expense) | 4 | 30 | 5 | (33) | ||
Other comprehensive income (loss) | (18) | (112) | (36) | 125 | ||
Derivative Adjustments | Income Statement Items | ||||||
Derivative [Line Items] | ||||||
Reclassifications, Pretax | (15) | (1) | (21) | 2 | ||
Reclassifications, Tax benefit (expense) | 4 | 1 | 4 | 0 | ||
Reclassifications, Net-of-tax | $ (11) | $ 0 | $ (17) | $ 2 |
Supplemental Disclosures - Accu
Supplemental Disclosures - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Beginning balance | $ 13,227 | $ 13,033 | $ 12,219 | $ 12,000 | $ 13,033 | $ 12,000 |
Other comprehensive income (loss) | (506) | (117) | (4) | 70 | ||
Ending balance | 52,619 | 13,227 | 12,951 | 12,219 | 52,619 | 12,951 |
Accumulated Other Comprehensive Loss | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Beginning balance | (947) | (830) | (581) | (651) | (830) | (651) |
Other comprehensive income (loss) before reclassifications | (495) | (604) | 64 | |||
Reclassifications from accumulated other comprehensive loss to net income | (11) | (19) | 2 | |||
Other comprehensive income (loss) | (506) | (117) | (4) | 70 | (623) | 66 |
Ending balance | (1,453) | (947) | (585) | (581) | (1,453) | (585) |
Currency translation | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Beginning balance | (944) | (845) | (722) | (555) | (845) | (555) |
Other comprehensive income (loss) before reclassifications | (488) | (585) | (59) | |||
Reclassifications from accumulated other comprehensive loss to net income | 0 | (2) | 0 | |||
Other comprehensive income (loss) | (488) | 108 | (587) | (59) | ||
Ending balance | (1,432) | (944) | (614) | (722) | (1,432) | (614) |
Derivative Adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Beginning balance | 10 | 28 | 156 | (81) | 28 | (81) |
Other comprehensive income (loss) before reclassifications | (7) | (112) | (19) | 123 | ||
Reclassifications from accumulated other comprehensive loss to net income | (11) | (17) | 2 | |||
Other comprehensive income (loss) | (18) | (112) | (36) | 125 | ||
Ending balance | (8) | 10 | 44 | 156 | (8) | 44 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Beginning balance | (13) | (13) | (15) | (15) | (13) | (15) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |||
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | 0 | |||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Ending balance | $ (13) | $ (13) | $ (15) | $ (15) | $ (13) | $ (15) |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Jun. 30, 2022 |
Liberty Global | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 30% |
Liberty Broadband | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 47% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions, Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | $ 870 | $ 257 | $ 1,119 | $ 515 |
Expenses | (166) | (57) | (242) | (114) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (40) | (30) | (213) | |
Liberty Group | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | 535 | 165 | 693 | 340 |
Equity method investees | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | 179 | 68 | 237 | 124 |
Other | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | $ 156 | $ 24 | $ 189 | $ 51 |
Related Party Transactions (S_2
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Receivables | $ 821 | $ 172 |
Payables | $ 38 | $ 23 |
Commitments and Contingencies_2
Commitments and Contingencies (Commitments) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Other | ||
2024 | $ 225,000,000 | |
2025 | 100,000,000 | |
2026 | 67,000,000 | |
Thereafter | 232,000,000 | |
Total | 1,408,000,000 | |
Long-Term Debt, Principal | ||
2022 (remaining six months) | 0 | |
2023 | 1,349,000,000 | |
2024 | 4,271,000,000 | |
2025 | 9,647,000,000 | |
2026 | 790,000,000 | |
Thereafter | 36,702,000,000 | |
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, | 52,759,000,000 | $ 15,187,000,000 |
Long-Term Debt, Interest | ||
2022 (remaining six months) | 1,133,000,000 | |
2023 | 2,243,000,000 | |
2024 | 2,159,000,000 | |
2025 | 1,863,000,000 | |
2026 | 1,729,000,000 | |
Thereafter | 27,487,000,000 | |
Total | 36,614,000,000 | |
Total | ||
2022 (remaining six months) | 8,260,000,000 | |
2023 | 11,455,000,000 | |
2024 | 12,341,000,000 | |
2025 | 15,706,000,000 | |
2026 | 5,203,000,000 | |
Thereafter | 75,402,000,000 | |
Total | 128,367,000,000 | |
Other contingent commitment | 258,000,000 | |
Other contingent commitment to be paid in year four | $ 251,000,000 | |
SERP | ||
Total | ||
Defined Benefit Plan, Estimated Payment Period | 10 years | |
Content | ||
Content | ||
2022 (remaining six months) | $ 5,658,000,000 | |
2023 | 6,468,000,000 | |
2024 | 5,223,000,000 | |
2025 | 3,807,000,000 | |
2026 | 2,512,000,000 | |
Thereafter | 10,880,000,000 | |
Total | $ 34,548,000,000 | |
Other Purchase Obligations | Minimum | ||
Total | ||
Contract termination notice, period without penalty | 30 days | |
Other Purchase Obligations | Maximum | ||
Total | ||
Contract termination notice, period without penalty | 60 days | |
Pension and Other Employee Obligations | ||
Other | ||
2022 (remaining six months) | $ 321,000,000 | |
2023 | 463,000,000 | |
Six Flag Guarantee | ||
Total | ||
Gross aggregate undiscounted future cash flow requirements cover by guarantee | 544,000,000 | |
Payments for guarantee obligations | 0 | |
Other Purchase Obligations | ||
Other | ||
2022 (remaining six months) | 1,148,000,000 | |
2023 | 932,000,000 | |
2024 | 463,000,000 | |
2025 | 289,000,000 | |
2026 | 105,000,000 | |
Thereafter | 101,000,000 | |
Total | $ 3,038,000,000 |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 3 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 9,827 | $ 3,062 | $ 12,986 | $ 5,854 |
Operating Segments | Studios | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,796 | 2 | 2,801 | 7 |
Operating Segments | Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,742 | 2,844 | 8,615 | 5,504 |
Operating Segments | DTC | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,225 | 216 | 2,506 | 343 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13 | 0 | 13 | 0 |
Inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (949) | $ 0 | $ (949) | $ 0 |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Adjusted EBITDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | $ 1,664 | $ 1,117 | $ 2,691 | $ 1,954 |
Operating Segments | Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | 2,262 | 1,538 | 3,617 | 2,947 |
Operating Segments | DTC | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | (518) | (329) | (745) | (819) |
Operating Segments | Studios | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | 239 | 2 | 242 | 4 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | (305) | (94) | (409) | (178) |
Inter-segment eliminations | Studios | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBITDA | $ (14) | $ 0 | $ (14) | $ 0 |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Reconciliation of Adjusted EBITDA to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Net (loss) income available to Warner Bros. Discovery, Inc. | $ (3,418) | $ 672 | $ (2,962) | $ 812 |
Net income attributable to redeemable noncontrolling interests | 3 | 8 | 6 | 13 |
Net income attributable to noncontrolling interests | 7 | 38 | 23 | 84 |
Income tax (benefit) expense | (836) | 2 | (635) | 108 |
(Loss) income before income taxes | (4,244) | 720 | (3,568) | 1,017 |
Other (expense) income, net | 51 | (105) | (439) | (173) |
Loss from equity investees, net | 43 | 7 | 57 | 11 |
Interest expense, net | 511 | 157 | 664 | 320 |
Operating (loss) income | (3,639) | 779 | (3,286) | 1,175 |
Loss (gain) on disposition | 4 | (72) | 4 | (72) |
Restructuring and other charges | 1,033 | 7 | 1,038 | 22 |
Depreciation and amortization | 2,266 | 341 | 2,791 | 702 |
Employee share-based compensation | 147 | 27 | 204 | 88 |
Transaction and integration costs | 983 | 35 | 1,070 | 39 |
Amortization of fair value step-up for content | 870 | 0 | 870 | 0 |
Total Adjusted EBITDA | $ 1,664 | $ 1,117 | $ 2,691 | $ 1,954 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Aug. 04, 2022 | Aug. 04, 2022 | Jun. 30, 2022 | |
Term Loan | |||
Subsequent Event [Line Items] | |||
Principal repayments of term loans | $ 3,500,000,000 | ||
Commercial Paper | |||
Subsequent Event [Line Items] | |||
Revolving line of credit, maximum borrowing capacity | $ 1,500,000,000 | ||
Subsequent Event | Revolving Credit Facility, Amendment | |||
Subsequent Event [Line Items] | |||
Consolidated EBITDA, cash restructuring costs, charges, and expenses, percentage | 15% | ||
Subsequent Event | Term Loan | |||
Subsequent Event [Line Items] | |||
Principal repayments of term loans | $ 1,300,000,000 | ||
Subsequent Event | Commercial Paper | |||
Subsequent Event [Line Items] | |||
Revolving line of credit, maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 |