Merger with the WarnerMedia Business of AT&T On April 8, 2022, Discovery, Inc. (“Discovery”) completed its merger (the “Merger”) with the WarnerMedia business of AT&T Inc. (the “WarnerMedia Business”) and changed its name to “Warner Bros. Discovery, Inc.” (“Warner Bros. Discovery”, “WBD”, the “Company”, “we”, “us” or “our”). Purpose of Trending Schedules The trending schedules summarize unaudited pro forma combined financial information to facilitate your review and understanding of the Company’s operating results. The trending schedules set forth important financial measures utilized by the Company defined by U.S. generally accepted accounting principles (“GAAP”). The Company uses non-GAAP financial measures, among other measures, to evaluate the operating performance of our business. These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Pro Forma Combined Financial Information The unaudited pro forma combined financial information in the trending schedules presents the combined results of the Company and the WarnerMedia Business as if the Merger had been completed on January 1, 2021. Our combined Networks, DTC (as defined below), Studios and Corporate and intersegment-eliminations pro forma financial information is based on the historical operating results of the respective segments and includes adjustments in accordance with Article 11 of Regulation S-X to illustrate the effects of the Merger as if it had occurred 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 unaudited pro forma 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) adjustments for transaction costs and other one-time non-recurring costs, (v) changes to align accounting policies, and (vi) adjustments to eliminate intercompany activity. 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 the WarnerMedia Business 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. New Reporting Segments In connection 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: Networks, consisting primarily of our domestic and international television networks Direct-to-Consumer ("DTC"), consisting primarily of our premium pay TV and digital content services Studios, consisting primarily of the production and release of feature films for initial exhibition in theaters and/or on our DTC services, production and initial licensing of television programs to third party 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. New Financial Measures Warner Bros. Discovery previously used the non-GAAP measure of Adjusted OIBDA as an important financial measure, among other measures, to evaluate the operating performance of our business. Adjusted OIBDA was defined as operating income excluding: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) certain inter-segment eliminations related to production studios, (vii) third-party transaction and integration costs, and (viii) other items impacting comparability. Beginning with the period ended June 30, 2022, and for all periods presented, Warner Bros. Discovery will utilize the non-GAAP measure of Adjusted EBITDA, as defined below and in the Notes & Definitions section as an important financial measure, among other measures, to evaluate the operating performance of our business. The Company defines Adjusted EBITDA as operating income excluding: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring, facility consolidation, and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) certain inter-segment eliminations, (vii) third- party transaction and integration costs, (viii) amortization of purchase accounting fair value step-up for content, (ix) amortization of capitalized interest for content, and (x) other items impacting comparability. 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. Pro Forma Updates During the three months ended September 30, 2022, WBD updated the previously issued Trending Schedules to reflect the following pro forma updates: (i) sports rights for the three months ended December 31, 2021 and three months ended March 31, 2022, (ii) HBO content amortization for the three months ended March 31, 2021 through the three months ended March 31, 2022, and (iii) tax effects of Advance/Newhouse Programming Partnership for the three months ended March 31, 2021. Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with U.S. GAAP, this communication may also contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available in the trending schedules and on the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com. Rounding Numbers presented in the following materials are on a rounded basis using actual amounts. Minor differences in totals and percentages may exist due to rounding.
Consolidated statement of operations (GAAP) Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Revenues: Advertising $ 2,660 $ 2,825 $ 2,343 $ 2,761 $ 10,589 $ 2,710 $ 2,899 $ 2,042 Distribution 5,084 5,268 5,313 5,116 20,781 5,348 5,181 4,990 Content 2,835 2,942 3,108 4,307 13,192 3,174 2,510 2,531 Other 143 176 216 229 764 209 233 260 Total revenues 10,722 11,211 10,980 12,413 45,326 11,441 10,823 9,823 Costs and expenses: Costs of revenues, excluding depreciation and amortization 6,263 6,673 5,966 7,131 26,033 6,610 7,252 5,495 Selling, general and administrative 3,690 2,817 2,991 3,455 12,953 3,326 2,985 2,589 Depreciation and amortization 2,158 2,066 1,994 2,118 8,336 1,937 1,841 1,758 Restructuring and other charges 106 7 7 2 122 4 944 1,521 Asset impairment and (gain) loss on disposition and disposal groups — (72) (223) 1 (294) — 4 43 Total costs and expenses 12,217 11,491 10,735 12,707 47,150 11,877 13,026 11,406 Operating (loss) income (1,495) (280) 245 (294) (1,824) (436) (2,203) (1,583) Interest expense, net (620) (726) (653) (590) (2,589) (584) (551) (553) Other income (expense), net 138 277 (470) (223) (278) 577 (76) (106) (Loss) before income taxes (1,977) (729) (878) (1,107) (4,691) (443) (2,830) (2,242) Income tax benefit 255 412 260 265 1,192 102 919 414 Net (loss) (1,722) (317) (618) (842) (3,499) (341) (1,911) (1,828) Net income attributable to noncontrolling interests (50) (47) (41) (53) (191) (19) (11) (22) Net (loss) available to Warner Bros. Discovery, Inc. $ (1,772) $ (364) $ (659) $ (895) $ (3,690) $ (360) $ (1,922) $ (1,850)
Reconciliation of net income to adjusted earnings before interest, taxes, depreciation and amortization (non-GAAP) Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Net (loss) income available to Warner Bros. Discovery, Inc. $ (1,772) $ (364) $ (659) $ (895) $ (3,690) $ (360) $ (1,922) $ (1,850) Net income attributable to noncontrolling interests 50 47 41 53 191 19 11 22 Net income (1,722) (317) (618) (842) (3,499) (341) (1,911) (1,828) Income tax (benefit) (255) (412) (260) (265) (1,192) (102) (919) (414) Other (income) expense, net (138) (277) 470 223 278 (577) 76 106 Interest expense, net 620 726 653 590 2,589 584 551 553 Operating (loss) income (1,495) (280) 245 (294) (1,824) (436) (2,203) (1,583) Asset impairment and (gain) loss on disposition and disposal groups — (72) (223) 1 (294) — 4 43 Restructuring and other charges 106 7 7 2 122 4 944 1,521 Depreciation and amortization 2,158 2,066 1,994 2,118 8,336 1,937 1,841 1,758 Employee share-based compensation 200 112 86 88 486 113 115 113 Transaction and integration costs 793 36 124 280 1,233 305 201 59 Amortization of fair value step-up for content 755 631 435 546 2,367 458 864 513 Adjusted EBITDA(1) $ 2,517 $ 2,500 $ 2,668 $ 2,741 $ 10,426 $ 2,381 $ 1,766 $ 2,424
Consolidated segment results (non-GAAP) Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Revenues: Advertising $ 2,660 $ 2,825 $ 2,343 $ 2,761 $ 10,589 $ 2,710 $ 2,899 $ 2,042 Distribution 5,084 5,268 5,313 5,116 20,781 5,348 5,181 4,990 Content 2,835 2,942 3,108 4,307 13,192 3,174 2,510 2,531 Other 143 176 216 229 764 209 233 260 Total revenues 10,722 11,211 10,980 12,413 45,326 11,441 10,823 9,823 Costs of revenues, excluding depreciation and amortization 5,508 6,042 5,531 6,585 23,666 6,152 6,388 4,982 Selling, general and administrative(2) 2,697 2,669 2,781 3,087 11,234 2,908 2,669 2,417 Adjusted EBITDA 2,517 2,500 2,668 2,741 10,426 2,381 1,766 2,424 Asset impairment and (gain) loss on disposition and disposal groups — (72) (223) 1 (294) — 4 43 Restructuring and other charges 106 7 7 2 122 4 944 1,521 Depreciation and amortization 2,158 2,066 1,994 2,118 8,336 1,937 1,841 1,758 Employee share-based compensation 200 112 86 88 486 113 115 113 Transaction and integration costs 793 36 124 280 1,233 305 201 59 Amortization of fair value step-up for content 755 631 435 546 2,367 458 864 513 Operating (loss) income $ (1,495) $ (280) $ 245 $ (294) $ (1,824) $ (436) $ (2,203) $ (1,583)
Studios segment Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Revenues: Advertising $ 21 $ 27 $ 35 $ 40 $ 123 $ 9 $ 10 $ 8 Distribution 3 5 2 4 14 5 5 4 Content 3,069 3,197 3,173 4,917 14,356 3,352 3,187 2,884 Other 81 104 143 188 516 138 162 192 Total revenues 3,174 3,333 3,353 5,149 15,009 3,504 3,364 3,088 Costs of revenues, excluding depreciation and amortization 2,092 2,244 2,050 3,206 9,592 2,065 2,334 1,756 Selling, general and administrative(2) 652 650 747 723 2,772 629 621 570 Adjusted EBITDA 430 439 556 1,220 2,645 810 409 762 Depreciation and amortization 173 172 173 173 691 136 137 136 Employee share-based compensation 50 11 12 12 85 25 1 1 Restructuring and other charges 38 — — — 38 — 162 562 Transaction and integration costs — — — — — — — 1 Asset impairment and (gain) loss on disposition and disposal groups — — — — — — — 15 Amortization of fair value step-up for content 561 277 361 399 1,598 272 248 236 Operating (loss) income $ (392) $ (21) $ 10 $ 636 $ 233 $ 377 $ (139) $ (189)
Networks segment Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Revenues: Advertising $ 2,646 $ 2,796 $ 2,268 $ 2,683 $ 10,393 $ 2,632 $ 2,802 $ 1,944 Distribution 3,162 3,087 3,065 3,015 12,329 3,132 3,012 2,924 Content 307 219 456 292 1,274 515 241 277 Other 46 62 81 45 234 53 66 69 Total revenues 6,161 6,164 5,870 6,035 24,230 6,332 6,121 5,214 Costs of revenues, excluding depreciation and amortization 2,516 2,722 2,392 2,444 10,074 2,962 3,020 1,906 Selling, general and administrative(2) 770 760 766 873 3,169 784 744 678 Adjusted EBITDA 2,875 2,682 2,712 2,718 10,987 2,586 2,357 2,630 Depreciation and amortization 1,384 1,323 1,269 1,373 5,349 1,282 1,199 1,133 Employee share-based compensation 9 8 11 13 41 9 — — Restructuring and other charges 19 7 7 2 35 4 303 354 Transaction and integration costs 4 — — — 4 (1) 1 1 Amortization of fair value step-up for content 121 280 1 74 476 126 294 2 Inter-segment eliminations — — — — — — (2) 30 Asset impairment and (gain) loss on disposition and disposal groups — (72) — (1) (73) — — — Operating income $ 1,338 $ 1,136 $ 1,424 $ 1,257 $ 5,155 $ 1,166 $ 562 $ 1,110
DTC segment Unaudited; in millions, except for ARPU(3) Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Revenues: Advertising $ 19 $ 37 $ 54 $ 70 $ 180 $ 81 $ 97 $ 106 Distribution 1,919 2,176 2,246 2,097 8,438 2,211 2,164 2,062 Content 112 136 194 191 633 221 143 145 Other 6 3 3 2 14 2 6 4 Total revenues 2,056 2,352 2,497 2,360 9,265 2,515 2,410 2,317 Costs of revenues, excluding depreciation and amortization 1,496 1,655 1,768 1,938 6,857 1,994 2,065 2,118 Selling, general and administrative(2) 1,077 1,008 1,038 1,150 4,273 1,175 903 833 Adjusted EBITDA (517) (311) (309) (728) (1,865) (654) (558) (634) Depreciation and amortization 532 499 483 499 2,013 470 447 426 Employee share-based compensation 5 3 6 2 16 1 (1) (1) Restructuring and other charges 4 1 — — 5 — 472 517 Transaction and integration costs — — — 1 1 1 — — Amortization of fair value step-up for content 73 74 73 73 293 60 81 94 Inter-segment eliminations — — — — — — 10 (10) Asset impairment and (gain) loss on disposition and disposal groups — — — 1 1 — 4 — Operating loss $ (1,131) $ (888) $ (871) $ (1,304) $ (4,194) $ (1,186) $ (1,571) $ (1,660) Subscriber Metrics Quarter Ending 12 Months Ending Quarter Ending 3/31/21 6/30/21 9/31/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Global HBO Max, HBO, and Discovery+ Subscribers(4) 75.8 79.9 86.0 86.0 90.4 92.1 94.9 Global ARPU $ 7.66 $ 7.52 Domestic Subscribers 49.7 48.8 51.1 51.1 53.3 53.0 53.5 Domestic ARPU $ 10.54 $ 10.66 International Subscribers 26.1 31.1 34.9 34.9 37.1 39.1 41.4 International ARPU $ 3.69 $ 3.68
Corporate, and Inter-segment Eliminations Unaudited; in millions Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending Corporate Segment 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Adjusted EBITDA (278) (341) (326) (406) (1,351) (357) (405) (340) Employee share-based compensation 136 90 57 61 344 78 115 113 Depreciation and amortization 69 72 69 73 283 49 58 63 Restructuring and other charges 45 (1) — — 44 — 25 93 Transaction and integration costs 789 36 124 279 1,228 305 200 57 Amortization of fair value step-up for content — — — — — — — — Asset impairment and (gain) loss on disposition and disposal groups — — (223) 1 (222) — — 28 Inter-segment eliminations — — — — — — (8) (20) Operating loss $ (1,317) $ (538) $ (353) $ (820) $ (3,028) $ (789) $ (795) $ (674) Pro Forma Combined Actual 3 Months Ending 12 Months Ending 3 Months Ending Inter-segment Eliminations 3/31/21 6/30/21 9/31/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Inter-segment revenue eliminations $ (675) $ (648) $ (751) $ (1,145) $ (3,219) $ (926) $ (1,088) $ (785) Inter-segment expense eliminations (682) (679) (786) (1,082) (3,229) (922) (1,051) (791) Adjusted EBITDA $ 7 $ 31 $ 35 $ (63) $ 10 $ (4) $ (37) $ 6 Restructuring and other charges — — — — — — (18) (5) Amortization of fair value step-up for content — — — — — — 241 181 Operating loss $ 7 $ 31 $ 35 $ (63) $ 10 $ (4) $ (260) $ (170)
Free Cash Flow (non-GAAP); Net debt (non-GAAP) Reported unless where otherwise noted; unaudited; in millions Reported 3 Months Ending 12 Months Ending 3 Months Ending 3/31/21 6/30/21 9/30/21 12/31/21 12/31/21 3/31/22 6/30/22 9/30/22 Reported Free Cash Flow: Cash provided by (used for) operating activities $ 269 $ 834 $ 811 $ 884 $ 2,798 $ 323 $ 1,011 $ 124 Less: Purchases of property and equipment (90) (77) (106) (100) (373) (85) (222) (316) Reported Free Cash Flow(5) $ 179 $ 757 $ 705 $ 784 $ 2,425 $ 238 $ 789 $ (192) Reported Gross to Net Debt: Current portion of debt $ 351 $ 585 $ 349 $ 339 $ 339 $ 794 $ 1,097 $ 1,257 Plus: Noncurrent portion of debt 15,115 14,899 14,868 14,848 14,848 14,030 51,662 48,887 Plus: Finance leases 222 217 266 255 255 249 284 268 Less: Cash and cash equivalents 2,008 2,834 3,126 3,905 3,905 4,165 3,896 2,513 Reported Net Debt(6) $ 13,680 $ 12,866 $ 12,358 $ 11,544 $ 11,544 $ 10,910 $ 49,147 $ 47,899 LTM EBITDA(7)(*) 3,920 3,910 3,682 3,817 3,817 4,007 9,556 9,312 LTM Leverage Ratio(8) 3.5x 3.3x 3.4x 3.0x 3.0x 2.7x 5.1x 5.1x (*) For the periods ending 3/31/21 through 3/31/22, LTM EBITDA is based on historical Discovery, Inc. standalone Adjusted OIBDA. For the periods ending 6/30/22 and 9/30/22, LTM EBITDA is based on pro forma combined Adjusted EBITDA contained in this trending schedule. For more information, please refer note seven (7) in the Notes and Definitions as well as the New Financial Measures disclosure.
Notes & Definitions 1). Adjusted EBITDA - 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: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring, facility consolidation, and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) certain inter-segment eliminations, (vii) third-party transaction and integration costs, (viii) amortization of purchase accounting fair value step-up for content, (ix) amortization of capitalized interest for content, and (x) 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, 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. 2). Selling, general and administrative (SG&A) - SG&A expenses exclude employee share-based compensation, third-party transaction and integration costs, and amortization of fair value step-up for content. 3). Average Revenue Per Subscriber ("ARPU") - The Company defines ARPU as total subscription revenue plus advertising revenue (net of advertising and programmatic commissions) for the period divided by the daily-average number of paying subscribers for the period. Where daily values are not available, the sum of beginning of period and end of period divided by two is used. Excluded from the ARPU calculation are: (i) HBO Max/HBO Hotel and Bulk Institution subscription revenue and subscribers (i.e., subscribers billed on a bulk basis); (ii) Cinemax subscription revenue and subscribers; (iii) HBO Basic subscription revenue and subscribers (International-only); (iv) Non-discovery+ DTC revenue and subscribers; and (v) Non-Core discovery+ revenue and subscribers. 4). Direct-to-Consumer ("DTC") subscriber - We define a “Core Direct-to-Consumer ("DTC") Subscription” as: (i) a retail subscription to discovery+, HBO or HBO Max for which we have recognized subscription revenue, whether directly or through a third party, from a direct-to-consumer platform; (ii) a wholesale subscription to discovery+, HBO, or HBO Max for which we have recognized subscription revenue from a fixed-fee arrangement with a third party and where the individual user has activated their subscription; and (iii) a wholesale subscription to discovery+, HBO or HBO Max for which we have recognized subscription revenue on a per subscriber basis. We may refer to the aggregate number of Core DTC Subscriptions as “subscribers." The reported number of “subscribers” included herein and the definition of “Core DTC Subscription” as used herein excludes: (i) individuals who subscribe to DTC products, other than discovery+, HBO and HBO Max, that may be offered by us or by certain joint venture partners or affiliated parties from time to time; (ii) a limited number of international discovery+ subscribers that are part of non-strategic partnerships or short-term arrangements as may be identified by the Company from time to time (such subscribers may also be referred to as “non-core” subscribers); (iii) domestic and international Cinemax subscribers, and international basic HBO subscribers; and (iv) users on free trials. Domestic subscriber - We define a Domestic subscriber as a subscription based either in the United States of America or Canada. International subscriber - We define an International subscriber as a subscription based outside of the United States of America or Canada. 5). Free Cash Flow - The Company defines free cash flow as cash flow from operations less acquisitions of property and equipment. The Company believes free cash flow is an important indicator for management and investors of the Company’s liquidity, including its ability to reduce debt, make strategic investments, and return capital to stockholders. For the periods ended March 31, 2021 (3/31/21) through March 31, 2022 (3/31/22), Reported Free Cash Flow represents standalone Discovery, Inc. Free Cash Flow. For the period ended June 30, 2022 (6/30/22), Reported Free Cash Flow represents results for Discovery, Inc. for April 1 - June 30, 2022, and the WarnerMedia Business for April 9 - June 30, 2022. For the period ended September 30, 2022 (9/30/22), Reported Free Cash Flow represents results for standalone Warner Bros. Discovery 6). Net Debt - The Company defines net debt as total debt plus finance leases less cash and cash equivalents, and restricted cash 7). LTM EBITDA - LTM EBITDA is calculated by summing the most recent four quarters of Adjusted EBITDA. For the periods ended March 31, 2021 (3/31/21) through March 31, 2022 (3/31/22), LTM EBITDA is calculated using a four period sum of standalone Discovery, Inc. Adjusted OIBDA. Historical Discovery, Inc. Adjusted OIBDA and reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available on the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com. For the periods ended June 30, 2022 (6/30/22) and September 30, 2022 (9/30/22), LTM EBITDA is calculated using a four period sum of pro forma combined Adjusted EBITDA. Pro forma combined Adjusted EBITDA and reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available in the trending schedules and on the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com. 8). LTM Leverage Ratio - LTM Leverage ratio is calculated by dividing net debt by LTM EBITDA
