Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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) | 2,436,107,460 | |
Entity Central Index Key | 0001437107 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Revenues | $ 10,700 | $ 3,159 |
Costs and expenses: | ||
Costs of revenues, excluding depreciation and amortization | 6,685 | 1,236 |
Selling, general and administrative | 2,388 | 1,040 |
Depreciation and amortization | 2,058 | 525 |
Restructuring | 95 | 5 |
Impairments and loss on dispositions | 31 | 0 |
Total costs and expenses | 11,257 | 2,806 |
Operating (loss) income | (557) | 353 |
Interest expense, net | (571) | (153) |
Loss from equity investees, net | (37) | (14) |
Other (expense) income, net | (73) | 490 |
(Loss) income before income taxes | (1,238) | 676 |
Income tax benefit (expense) | 178 | (201) |
Net (loss) income | (1,060) | 475 |
Net income attributable to noncontrolling interests | (8) | (16) |
Net income attributable to redeemable noncontrolling interests | (1) | (3) |
Net (loss) income available to Warner Bros. Discovery, Inc. | $ (1,069) | $ 456 |
Net (loss) income per share allocated to Warner Bros. Discovery, Inc. Series A common stockholders: | ||
Basic (in dollars per share) | $ (0.44) | $ 0.69 |
Diluted (in dollars per share) | $ (0.44) | $ 0.69 |
Weighted average shares outstanding: | ||
Basic (in shares) | 2,432 | 591 |
Diluted (in shares) | 2,432 | 665 |
Distribution | ||
Revenues: | ||
Revenues | $ 5,163 | $ 1,352 |
Advertising | ||
Revenues: | ||
Revenues | 2,298 | 1,476 |
Content | ||
Revenues: | ||
Revenues | 2,954 | 323 |
Other | ||
Revenues: | ||
Revenues | $ 285 | $ 8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (1,060) | $ 475 |
Currency translation | ||
Change in net unrealized gains (losses) | 426 | (97) |
Less: reclassification adjustment for net (gains) losses included in net income | 0 | (2) |
Net change, net of income tax benefit (expense) of $(5) and $(14) | 426 | (99) |
Pension plan and SERP liability, net of income tax benefit (expense) of $(3) and $— | (9) | 0 |
Derivatives | ||
Change in net unrealized gains (losses) | 3 | (12) |
Less: reclassification adjustment for net (gains) losses included in net income | (2) | (6) |
Net change, net of income tax benefit (expense) of $2 and $1 | 1 | (18) |
Comprehensive (loss) income | (642) | 358 |
Comprehensive income attributable to noncontrolling interests | (8) | (16) |
Comprehensive income attributable to redeemable noncontrolling interests | (1) | (3) |
Comprehensive (loss) income attributable to Warner Bros. Discovery, Inc. | $ (651) | $ 339 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Currency translation | ||
Income tax benefit (expense) | $ (5) | $ (14) |
Income tax benefit (expense) on defined benefit plans | (3) | 0 |
Derivatives | ||
Income tax benefit (expense) | $ 2 | $ 1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,594 | $ 3,731 |
Receivables, net | 6,833 | 6,380 |
Prepaid expenses and other current assets | 4,300 | 3,888 |
Total current assets | 13,727 | 13,999 |
Film and television content rights and games | 25,473 | 26,652 |
Property and equipment, net | 5,325 | 5,301 |
Goodwill | 34,658 | 34,438 |
Intangible assets, net | 43,239 | 44,982 |
Other noncurrent assets | 8,162 | 8,629 |
Total assets | 130,584 | 134,001 |
Current liabilities: | ||
Accounts payable | 1,123 | 1,454 |
Accrued liabilities | 10,158 | 11,504 |
Deferred revenues | 1,603 | 1,694 |
Current portion of debt | 3,496 | 365 |
Total current liabilities | 16,380 | 15,017 |
Noncurrent portion of debt | 45,434 | 48,634 |
Deferred income taxes | 10,211 | 11,014 |
Other noncurrent liabilities | 10,717 | 10,669 |
Total liabilities | 82,742 | 85,334 |
Commitments and contingencies (See Note 16) | ||
Redeemable noncontrolling interests | 309 | 318 |
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Series A common stock: $0.01 par value; 10,800 and 10,800 shares authorized; 2,666 and 2,660 shares issued; and 2,436 and 2,430 shares outstanding | 27 | 27 |
Preferred stock: $0 par value; 1,200 and 1,200 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 54,685 | 54,630 |
Treasury stock, at cost: 230 and 230 shares | (8,244) | (8,244) |
Retained earnings | 1,133 | 2,205 |
Accumulated other comprehensive loss | (1,105) | (1,523) |
Total Warner Bros. Discovery, Inc. stockholders’ equity | 46,496 | 47,095 |
Noncontrolling interests | 1,037 | 1,254 |
Total equity | 47,533 | 48,349 |
Total liabilities and equity | $ 130,584 | $ 134,001 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Warner Bros. Discovery, Inc. stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 10,800 | 10,800 |
Common stock issued (in shares) | 2,666 | 2,660 |
Common stock outstanding (in shares) | 2,436 | 2,430 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 1,200 | 1,200 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 230 | 230 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net (loss) income | $ (1,060) | $ 475 |
Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||
Content rights amortization and impairment | 4,723 | 973 |
Depreciation and amortization | 2,058 | 525 |
Deferred income taxes | (669) | (118) |
Share-based compensation expense | 111 | 60 |
Equity in losses of equity method investee companies and cash distributions | 62 | 21 |
Gain from derivative instruments, net | (23) | (514) |
Other, net | 97 | 33 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (486) | (5) |
Film and television content rights, games and payables, net | (4,051) | (993) |
Accounts payable, accrued liabilities, deferred revenues and other noncurrent liabilities | (1,652) | (124) |
Foreign currency, prepaid expenses and other assets, net | 259 | (10) |
Cash (used in) provided by operating activities | (631) | 323 |
Investing Activities | ||
Purchases of property and equipment | (299) | (85) |
Investments in and advances to equity investments | (13) | (42) |
Proceeds from derivative instruments, net | 20 | 639 |
Other investing activities, net | 35 | 17 |
Cash (used in) provided by investing activities | (257) | 529 |
Financing Activities | ||
Principal repayments of debt, including premiums to par value | (1,606) | (327) |
Borrowings from debt, net of discount and issuance costs | 1,500 | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (237) | (224) |
Borrowings under commercial paper program | 932 | 0 |
Repayments under commercial paper program | (933) | 0 |
Other financing activities, net | (88) | (36) |
Cash used in financing activities | (432) | (587) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 29 | (5) |
Net change in cash, cash equivalents, and restricted cash | (1,291) | 260 |
Cash, cash equivalents, and restricted cash, beginning of period | 3,930 | 3,905 |
Cash, cash equivalents, and restricted cash, end of period | $ 2,639 | $ 4,165 |
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, 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 (loss) available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | 472 | 456 | 456 | 16 | |||||
Other comprehensive income (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 adjustments to redemption 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, 2022 | 2,660 | ||||||||
Beginning balance at Dec. 31, 2022 | 48,349 | 47,095 | $ 27 | 54,630 | (8,244) | 2,205 | (1,523) | 1,254 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests | (1,061) | (1,069) | (1,069) | 8 | |||||
Other comprehensive income (loss) | 418 | 418 | 418 | ||||||
Share-based compensation | 101 | 101 | 101 | ||||||
Tax settlements associated with share-based plans | (53) | (53) | (53) | ||||||
Dividends paid to noncontrolling interests | (225) | (225) | |||||||
Issuance of stock in connection with share-based plans (in shares) | 6 | ||||||||
Issuance of stock in connection with share-based plans | 9 | 9 | 9 | ||||||
Redeemable noncontrolling interest adjustments to redemption value | (3) | (3) | (3) | ||||||
Other adjustments to stockholders' equity | (2) | (2) | (2) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 2,666 | ||||||||
Ending balance at Mar. 31, 2023 | $ 47,533 | $ 46,496 | $ 27 | $ 54,685 | $ (8,244) | $ 1,133 | $ (1,105) | $ 1,037 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 premier global media and entertainment company that combines the WarnerMedia Business’s premium entertainment, sports and news assets with Discovery’s leading non-fiction and international entertainment and sports businesses, thus offering audiences a differentiated portfolio of content, brands and franchises across television, film, streaming and gaming. Some of our iconic brands and franchises include Warner Bros. Pictures Group, Warner Bros. Television Group, DC, HBO, HBO Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings. 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 2 and 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 the Merger. 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 resulted in the Company receiving a $1.2 billion payment from AT&T in the third quarter of 2022 in lieu of adjusting the equity issued as purchase consideration in the Merger. AT&T shareholders received shares of WBD Series A common stock (“WBD common stock”) in the Merger 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 the Company’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 the Company’s historical financial statements. Accordingly, the financial results of the Company 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. 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, 2022 (the “2022 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. Summary of Significant Accounting Policies There have been no changes to the Company's significant accounting policies described in the 2022 Form 10-K. Accounting and Reporting Pronouncements Adopted Supplier Finance Programs In September 2022, the Financial Accounting Standards Board issued guidance updating the disclosure requirements for supplier finance program obligations. This guidance provides specific authoritative guidance for disclosure of supplier finance programs, including key terms of such programs, amounts outstanding, and where the obligations are presented in the statement of financial position. The guidance is effective for annual periods beginning after December 15, 2022, including interim periods, except for the disclosure of roll forward information, which is effective for annual periods beginning after December 15, 2023. Certain components of this guidance must be applied retrospectively, while others may be applied prospectively. The Company adopted the guidance effective January 1, 2023 and has provided the required disclosures in Note 14. |
Equity and Earnings Per Share
Equity and Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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 convertible 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 in the three months ended June 30, 2022. On April 8, 2022, the Company issued 1.7 billion shares of WBD common stock as consideration paid for the acquisition of WM. (See Note 3). 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 (in millions). Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2023 2022 Numerator: Net (loss) income $ (1,060) $ 475 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (49) Net income attributable to noncontrolling interests (8) (16) Net income attributable to redeemable noncontrolling interests (1) (3) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net (loss) income per share $ (1,069) $ 407 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 49 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net (loss) income per share $ (1,069) $ 456 Denominator — weighted average: Common shares outstanding — basic 2,432 591 Impact of assumed preferred stock conversion — 71 Dilutive effect of share-based awards — 3 Common shares outstanding — diluted 2,432 665 Basic net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 Diluted net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 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 March 31, 2023 2022 Anti-dilutive share-based awards 62 33 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
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). 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) Purchase consideration $ 42,376 (1) The fair value of WBD common stock issued to AT&T shareholders represents approximately 1,732 million shares of WBD common stock multiplied by the closing share price for Discovery Series A common stock of $24.43 on 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. (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. 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 resulted in the Company receiving a $1.2 billion payment from AT&T in the third quarter of 2022. 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 $9,129 million, $7,076 million and $5,683 million, respectively, and is not deductible for tax purposes. The purchase price allocation is preliminary and subject to change. 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 reflects measurement period adjustments 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 current period adjustments were $148 million, primarily related to taxes, and were recorded in other noncurrent assets, deferred income taxes and other noncurrent liabilities, with an offset to goodwill. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, measurement period adjustments, and a reconciliation to total consideration transferred is presented in the table below (in millions). Preliminary Measurement Period Updated Preliminary Cash $ 2,419 $ (10) $ 2,409 Accounts receivable 4,224 (60) 4,164 Other current assets 4,619 (149) 4,470 Film and television content rights and games 28,729 (344) 28,385 Property and equipment 4,260 13 4,273 Goodwill 21,513 375 21,888 Intangible assets 44,889 100 44,989 Other noncurrent assets 5,206 309 5,515 Current liabilities (10,544) 7 (10,537) Debt assumed (41,671) (9) (41,680) Deferred income taxes (13,264) 716 (12,548) Other noncurrent liabilities (8,004) (948) (8,952) Total consideration paid $ 42,376 $ — $ 42,376 The preliminary fair values of the assets acquired and liabilities assumed were determined using several valuation approaches including, but not limited to, various cost approaches and income approaches, such as relief from royalty, multi -period excess earnings, and with-or-without. 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 34 Affiliate, advertising and subscriber relationships 14,800 6 Franchises 7,900 35 Other intangible assets 1,205 Total intangible assets acquired $ 44,989 The Company incurred acquisition-related costs of $47 million and $87 million for the three months ended March 31, 2023 and 2022, respectively. These costs were associated with legal and professional services and integration activities and were recognized as operating expenses on the consolidated statement of operations. 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 Months Ended March 31, 2023 Revenues: Distribution $ 3,885 Advertising 1,154 Content 3,338 Other 228 Total revenues 8,605 Inter-segment eliminations (477) Net revenues $ 8,128 Net loss available to Warner Bros. Discovery, Inc. $ (1,047) 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 March 31, 2022 Revenues $ 11,441 Net loss available to Warner Bros. Discovery, Inc. (299) |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In connection with the Merger, the Company has announced and has taken actions to implement projects to achieve cost synergies for the Company. The Company finalized the framework supporting its ongoing restructuring and transformation initiatives during the year ended December 31, 2022, which will include, among other things, strategic content programming assessments, organization restructuring, facility consolidation activities, and other contract termination costs. While the Company’s restructuring efforts are ongoing, the restructuring program is expected to be substantially completed by the end of 2024. Restructuring by reportable segments and corporate and inter-segment eliminations were as follows (in millions). Three Months Ended March 31, 2023 2022 Studios $ 76 $ — Networks 3 4 DTC 9 — Corporate and inter-segment eliminations 7 1 Total restructuring $ 95 $ 5 During the three months ended March 31, 2023, restructuring charges primarily included contract terminations and facility consolidation activities of $56 million, organization restructuring of $35 million, and other charges of $4 million. During the three months ended March 31, 2022, restructuring charges were not material. Changes in restructuring liabilities recorded in accrued liabilities and other noncurrent liabilities by major category and by reportable segment and corporate and inter-segment eliminations were as follows (in millions). Studios Networks DTC Corporate and Inter-Segment Eliminations Total December 31, 2022 $ 156 $ 361 $ 188 $ 159 $ 864 Contract termination accruals, net 25 2 — — 27 Employee termination accruals, net 12 11 5 7 35 Other accruals — 2 — — 2 Cash paid (76) (207) (88) (61) (432) March 31, 2023 $ 117 $ 169 $ 105 $ 105 $ 496 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Studios Networks DTC Corporate and Inter-segment Eliminations Total Revenues: Distribution $ 3 $ 2,995 $ 2,165 $ — $ 5,163 Advertising 3 2,237 103 (45) 2,298 Content 3,027 245 185 (503) 2,954 Other 179 104 2 — 285 Total $ 3,212 $ 5,581 $ 2,455 $ (548) $ 10,700 Three Months Ended March 31, 2022 Studios Networks DTC Corporate and Inter-segment Eliminations Total Revenues: Distribution $ — $ 1,120 $ 232 $ — $ 1,352 Advertising — 1,430 46 — 1,476 Content 5 316 2 — 323 Other — 7 1 — 8 Total $ 5 $ 2,873 $ 281 $ — $ 3,159 Contract Liabilities and Contract Assets The following table presents contract liabilities on the consolidated balance sheets (in millions). Category Balance Sheet Location March 31, 2023 December 31, 2022 Contract liabilities Deferred revenues $ 1,603 $ 1,694 Contract liabilities Other noncurrent liabilities 379 361 For the three months ended March 31, 2023 and 2022, respectively, revenues of $856 million and $295 million were recognized that were included in deferred revenues as of December 31, 2022 and December 31, 2021, respectively. Contract assets were not material as of March 31, 2023 and December 31, 2022. Remaining Performance Obligations As of March 31, 2023, $11,888 million of revenue is expected to be recognized from remaining performance obligations under our long-term contracts. The following table presents a summary of remaining performance obligations by contract type (in millions). Contract Type March 31, 2023 Duration Distribution - fixed price or minimum guarantee $ 4,379 Through 2031 Content licensing and sports sublicensing 4,424 Through 2026 Brand licensing 2,322 Through 2043 Advertising 763 Through 2027 Total $ 11,888 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 | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
SALES OF RECEIVABLES | SALES OF RECEIVABLES Revolving Receivables Program Our bankruptcy-remote consolidated subsidiary held $3,453 million of pledged receivables as of March 31, 2023 in connection with the Company’s revolving receivables program. For the three months ended March 31, 2023, the Company has recognized $33 million in selling, general and administrative expenses from the revolving receivables program in the consolidated statements of operations. The outstanding portfolio of receivables derecognized from our consolidated balance sheets was $5,300 million as of March 31, 2023. The following table presents a summary of receivables sold (in millions). Three Months Ended March 31, 2023 Gross receivables sold/cash proceeds received $ 2,779 Collections reinvested under revolving agreement (2,845) Net cash proceeds remitted $ (66) Net receivables sold $ 2,698 Obligations recorded (Level 3) $ 148 The following table presents a summary of the amounts transferred or pledged (in millions): March 31, 2023 December 31, 2022 Gross receivables pledged as collateral $ 3,453 $ 3,468 Restricted cash pledged as collateral $ — $ 150 Balance sheet classification: Receivables, net $ 3,275 $ 3,015 Prepaid expenses and other current assets $ — $ 150 Other noncurrent assets $ 178 $ 453 Accounts Receivable Factoring Total trade accounts receivable sold under the Company’s factoring arrangement was $72 million for the three months ended March 31, 2023. The impact to the consolidated statements of operations was immaterial for the three months ended March 31, 2023. This accounts receivable factoring agreement is separate and distinct from the revolving receivables program. |
Content Rights
Content Rights | 3 Months Ended |
Mar. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
CONTENT RIGHTS | CONTENT RIGHTS For purposes of amortization and impairment, capitalized content costs are grouped based on their predominant monetization strategy: individually or as a group. Programming rights include content licensed from third parties, such as film, television and sports rights. The table below presents the components of content rights (in millions). March 31, 2023 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 2,032 $ — $ 2,032 Completed and not released 637 — 637 In production 1,545 — 1,545 In development 96 — 96 Television production costs: Released, less amortization 2,216 6,325 8,541 Completed and not released 608 540 1,148 In production 322 4,558 4,880 In development 47 15 62 Total theatrical film and television production costs $ 7,503 $ 11,438 $ 18,941 Programming rights, less amortization 6,763 Game development costs, less amortization 513 Total film and television content rights and games 26,217 Less: Current content rights and prepaid license fees, net (744) Total noncurrent film and television content rights and games $ 25,473 December 31, 2022 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 3,544 $ — $ 3,544 Completed and not released 507 — 507 In production 1,700 — 1,700 In development 95 — 95 Television production costs: Released, less amortization 2,200 6,513 8,713 Completed and not released 939 310 1,249 In production 427 4,424 4,851 In development 30 15 45 Total theatrical film and television production costs $ 9,442 $ 11,262 $ 20,704 Programming rights, less amortization 5,843 Game development costs, less amortization 650 Total film and television content rights and games 27,197 Less: Current content rights and prepaid license fees, net (545) Total noncurrent film and television content rights and games $ 26,652 Content amortization consisted of the following (in millions). Three Months Ended March 31, 2023 2022 Predominately monetized individually $ 1,531 $ 251 Predominately monetized as a group 3,096 718 Total content amortization $ 4,627 $ 969 Content expense includes amortization, impairments, and development expense and is generally a component of costs of revenues on the consolidated statements of operations. For the three months ended March 31, 2023, total content impairments were $96 million. For the three months ended March 31, 2022, content impairments were not material. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The Company’s equity investments consisted of the following, (in millions). Category Balance Sheet Location Ownership March 31, 2023 December 31, 2022 Equity method investments: The Chernin Group (TCG) 2.0-A, LP Other noncurrent assets 44% $ 291 $ 313 nC+ Other noncurrent assets 32% 143 135 Other Other noncurrent assets 590 614 Total equity method investments 1,024 1,062 Investments with readily determinable fair values Other noncurrent assets 53 28 Investments without readily determinable fair values Other noncurrent assets (a) 449 498 Total investments $ 1,526 $ 1,588 (a) Investments without readily determinable fair values included $27 million as of March 31, 2023 and $10 million as of December 31, 2022 that were included in prepaid expenses and other current assets. Equity Method Investments Certain of the Company’s other equity method investments are VIEs, for which the Company is not the primary beneficiary. As of March 31, 2023, 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 $725 million. The Company’s maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $703 million as of March 31, 2023 and $720 million as of December 31, 2022. 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 months ended March 31, 2023 and 2022. Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative During the three months ended March 31, 2023, the Company concluded that its other equity method investments without readily determinable fair values had decreased $68 million in fair value as a result of observable price changes in orderly transactions for the identical or similar investment of the same issuer. The decrease in fair value is recorded in other (expense) income, net on the consolidated statements of operations. (See Note 14). As of March 31, 2023, the Company had recorded cumulative impairments of $297 million for its equity method investments without readily determinable fair values. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The table below presents the components of outstanding debt (in millions). Weighted-Average March 31, 2023 December 31, 2022 Term loans with maturities of 3 years or less 6.01 % $ 2,500 $ 4,000 Floating rate senior notes with maturities of 5 years or less 6.20 % 500 500 Senior notes with maturities of 5 years or less 3.92 % 15,964 12,759 Senior notes with maturities between 5 and 10 years 4.28 % 8,607 10,373 Senior notes with maturities greater than 10 years 5.11 % 21,644 21,644 Total debt 49,215 49,276 Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net (285) (277) Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting 48,930 48,999 Current portion of debt (3,496) (365) Noncurrent portion of debt $ 45,434 $ 48,634 During the three months ended March 31, 2023 the Company issued $1.5 billion of 6.412% fixed rate senior notes due March 2026. After March 2024, the senior notes are redeemable at par plus accrued and unpaid interest. The proceeds were used to pay $1.5 billion of aggregate principal amount outstanding of the Company’s term loan prior to the due date of April 2025. The Company also repaid $106 million of aggregate principal amount outstanding of its senior notes due February 2023. 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. As of March 31, 2023, 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 $1.4 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 $10.0 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 The Company has a multicurrency revolving credit agreement (the “Revolving Credit Agreement”) and has the capacity to borrow up to $6.0 billion under the Revolving Credit Agreement (the “Credit Facility”). The Company may also request additional commitments up to $1.0 billion from the lenders upon the satisfaction of certain conditions. The Company’s commercial paper program is supported by the Credit Facility. Borrowing capacity under the Credit Facility is effectively reduced by any outstanding borrowings under the commercial paper program. As of March 31, 2023 and December 31, 2022, the Company had no outstanding borrowings under its Credit Facility or its commercial paper program. Credit Agreement Financial Covenants |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company is exposed to foreign currency exchange rate and interest rate fluctuations. As part of its risk management strategy, the Company uses derivative financial instruments, primarily foreign currency forward contracts, fixed-to-fixed currency swaps, and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. 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 March 31, 2023 and December 31, 2022. The fair value of the Company’s derivative financial instruments was determined using a market-based approach (Level 2). March 31, 2023 December 31, 2022 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 $ 2,031 $ 55 $ 33 $ 47 $ 21 $ 1,382 $ 49 $ 35 $ 42 $ 25 Cross-currency swaps 495 4 67 — — 482 3 58 — — Net investment hedges: (a) Cross-currency swaps 1,728 20 11 18 49 1,778 20 12 — 73 Fair value hedges: Interest rate swaps 1,500 13 — — 1 — — — — — No hedging designation: Foreign exchange 939 1 1 5 98 976 5 1 3 96 Cross-currency swaps 139 — — 1 — 139 3 — — 3 Total return swaps 373 7 — — — 291 — — 13 — Total $ 100 $ 112 $ 71 $ 169 $ 80 $ 106 $ 58 $ 197 (a) Excludes €164 million of euro-denominated notes ($179 million and $174 million equivalent at March 31, 2023 and December 31, 2022, respectively) designated as net investment hedges. (See Note 9.) Derivatives Designated for Hedge Accounting Cash Flow Hedges The Company uses foreign exchange forward contracts to mitigate the foreign currency risk related to revenues, production rebates and production expenses. The Company uses fixed-to-fixed cross-currency swaps to mitigate foreign currency risk associated with its British Pound Sterling denominated debt. The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive (loss) income (in millions). Three Months Ended March 31, 2023 2022 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 1 $ (13) Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - distribution revenue (1) 4 Foreign exchange - advertising revenue — 1 Foreign exchange - costs of revenues 2 1 Interest rate - interest expense, net 1 — If current fair valu es of designated cash flow hedges as of March 31, 2023 remained static over the next twelve months, the amount the Company would reclassify from accumulated other comprehensive loss into income in the next twelve months would not be material for the current fiscal year. The maximum length of time the Company is hedging exposure to the variability in future cash flows is 32 years. Net Investment Hedges The Company uses fixed-to-fixed cross currency swaps to mitigate foreign currency risk associated with the net assets of non-USD functional entities and foreign denominated debt. The following table presents the pre-tax impact of derivatives designated as net investment hedges on other comprehensive (loss) income (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 months ended March 31, 2023 and 2022. Three Months Ended March 31, 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) 2023 2022 2023 2022 Cross currency swaps $ 22 $ 19 Interest expense, net $ 5 $ 15 Euro-denominated notes (foreign denominated debt) 5 — N/A — — Sterling notes (foreign denominated debt) — 13 N/A — — Total $ 27 $ 32 $ 5 $ 15 Fair Value Hedges During the three months ended March 31, 2023, the Company issued $1.5 billion of 6.412% fixed rate senior notes due March 2026. Simultaneously, the Company entered into a fixed-to-floating interest rate swap designated as a fair value hedge to allow the Company to mitigate the variability in the fair value of its senior notes due to fluctuations in the benchmark interest rate. Changes in the fair value of the senior note and the interest rate swap are recorded in interest expense, net. The following table presents fair value hedge adjustments to hedged borrowings (in millions). Carrying Amount of Cumulative Amount of Fair Value Hedging Adjustments Included in Hedged Borrowings Balance Sheet Location March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Noncurrent portion of debt $ 1,512 $ — $ 12 $ — The following table presents the pretax impact of derivatives designated as fair value hedges on income, including offsetting changes in fair value of the hedged items (in millions). Three Months Ended March 31, 2023 2022 Loss on changes in fair value of hedged fixed rate debt (1) $ (12) $ — Gains on changes in the fair value of derivative contracts (1) 12 — Total in interest expense, net $ — $ — (1) Accrued interest related to the hedged debt and derivative contracts is excluded from the amounts above and was not material as of March 31, 2023. Derivatives Not Designated for Hedge Accounting Prior to the Merger, the Company was exposed to interest rate risk associated with the expected issuance of debt related to the Merger. To mitigate this risk, the Company entered into interest rate swaps and subsequently unwound them prior to the Merger. As part of the Merger, the Company acquired deferred compensation plans that have risk related to the fair value gains and losses on these investments and entered into total return swaps to mitigate this risk. The gains and losses associated with these swaps are recorded to selling, general and administrative expenses, offsetting the deferred compensation investment gains and losses. As production spend occurs or when rebate receivables are recognized, the aforementioned forward contracts designated as cash flow hedges are unwound and de-designated. After de-designation, gains and losses on these derivatives directly impact earnings in the same line as the hedged risk. 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 March 31, 2023 2022 Interest rate swaps $ — $ 512 Foreign exchange derivatives 3 (15) Total in other (expense) income, net $ 3 $ 497 Total return swaps (selling, general and administrative expense) 18 — Total $ 21 $ 497 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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). March 31, 2023 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 148 $ — $ 148 Equity securities: Money market fund Cash and cash equivalents 3 — — 3 Mutual funds Prepaid expenses and other current assets 9 — — 9 Company-owned life insurance contracts Prepaid expenses and other current assets — 3 — 3 Mutual funds Other noncurrent assets 240 — — 240 Company-owned life insurance contracts Other noncurrent assets — 95 — 95 Time deposits Other noncurrent assets — 10 — 10 Total $ 252 $ 256 $ — $ 508 Liabilities Deferred compensation plan Accrued liabilities $ 70 $ — $ — $ 70 Deferred compensation plan Other noncurrent liabilities 603 — — 603 Total $ 673 $ — $ — $ 673 December 31, 2022 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 50 $ — $ 50 Equity securities: Money market funds Cash and cash equivalents 20 — — 20 Mutual funds Prepaid expenses and other current assets 14 — — 14 Company-owned life insurance contracts Prepaid expenses and other current assets — 1 — 1 Mutual funds Other noncurrent assets 243 — — 243 Company-owned life insurance contracts Other noncurrent assets — 94 — 94 Time deposits Other noncurrent assets — 8 — 8 Total $ 277 $ 153 $ — $ 430 Liabilities Deferred compensation plan Accrued liabilities $ 73 $ — $ — $ 73 Deferred compensation plan Other noncurrent liabilities 590 — — 590 Total $ 663 $ — $ — $ 663 In addition to the financial instruments listed in the tables above, the Company holds 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 March 31, 2023 and December 31, 2022. The estimated fair value of the Company’s outstanding senior notes, including accrued interest, using quoted prices from over-the-counter markets, considered Level 2 inputs, was $41.6 billion and $38.0 billion as of March 31, 2023 and December 31, 2022, respectively. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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”), and stock options have been issued. The table below presents awards granted (in millions, except weighted-average grant price). Three Months Ended March 31, 2023 Awards Weighted-Average Grant Price Awards granted: PRSUs 4.0 $ 15.41 RSUs 26.2 $ 15.00 Stock options 2.2 $ 15.02 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 March 31, 2023 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 62 2.1 RSUs 790 2.4 Stock options 160 3.2 Total unrecognized compensation cost $ 1,012 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax benefit was $178 million for the three months ended March 31, 2023, and income tax expense was $201 million for the three months ended March 31, 2022. The decrease in the three months ended March 31, 2023 was primarily attributable to a decrease in pre-tax book income. Income tax benefit for the three months ended March 31, 2023 reflects an effective income tax rate that differs from the federal statutory tax rate primarily attributable to the effect of foreign operations, changes in uncertain tax positions, and state and local income taxes. As of March 31, 2023 and December 31, 2022, the Company’s reserves for uncertain tax positions totaled $2,195 million and $1,929 million, respectively. The increase in the reserve for uncertain tax positions as of March 31, 2023 is primarily attributable to tax reserves that were recorded in 2023 through purchase accounting related 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 $165 million within the next twelve months as a result of ongoing audits, lapses of statutes of limitations or regulatory developments. As of March 31, 2023 and December 31, 2022, the Company had accrued approximately $492 million and $413 million, respectively, of total interest and penalties payable related to unrecognized tax benefits. The increase in the interest and penalties accrual as of March 31, 2023 includes interest and penalty accruals recorded in 2023 through purchase accounting related to the Merger. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Supplemental Disclosures
Supplemental Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL DISCLOSURES | SUPPLEMENTAL DISCLOSURES The following tables present supplemental information related to the consolidated financial statements (in millions). Other (Expense) Income, net Other (expense) income, net, consisted of the following (in millions). Three Months Ended March 31, 2023 2022 Foreign currency (losses) gains, net $ (93) $ 11 Gains on derivative instruments, net 3 497 Change in the value of investments with readily determinable fair value 29 (20) Change in fair value of equity investments without readily determinable fair value (68) — Other income, net 56 2 Total other (expense) income, net $ (73) $ 490 Supplemental Cash Flow Information Three Months Ended March 31, 2023 2022 Cash paid for taxes, net $ 312 $ 97 Cash paid for interest, net 920 186 Non-cash investing and financing activities: Accrued purchases of property and equipment 33 26 Assets acquired under finance lease and other arrangements 29 13 Cash, Cash Equivalents, and Restricted Cash March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,594 $ 3,731 Restricted cash - recorded in prepaid expenses and other current assets (1) 45 199 Total cash, cash equivalents, and restricted cash $ 2,639 $ 3,930 (1) Restricted cash primarily includes cash posted as collateral related to the Company’s revolving receivables and hedging programs. (See Note 6 and Note 10). Goodwill Impairment Analysis During the three months ended March 31, 2023, the Company performed goodwill impairment monitoring procedures for all of its reporting units and identified no indicators of impairment or triggering events. Due to declining levels of global GDP growth, a weakening advertising market associated with the Company’s Networks reporting unit, and execution risk associated with anticipated growth in the Company’s DTC reporting unit, the Company will continue to monitor its reporting units for changes that could impact recoverability. Assets Held for Sale In 2022, the Company classified its Ranch Lot and Knoxville office building and land as assets held for sale. The Company reclassified $209 million to prepaid expenses and other assets on the consolidated balance sheet during 2022 and stopped recording depreciation on the assets. The Knoxville office building and land was sold during the three months ended March 31, 2023. Supplier Finance Programs Consistent with customary industry practice, the Company generally pays certain content producers at or near the completion of the production cycle. In these arrangements, content producers may earn fees upon contractual milestones to be invoiced at or near completion of production. In these instances, the Company accrues the content in progress in accordance with the contractual milestones. Certain of the Company’s content producers sell their related receivables to a bank intermediary who provides payments that coincide with these contractual production milestones upon confirmation with the Company of our obligation to the content producer. This confirmation does not involve a security interest in the underlying content or otherwise result in the payable receiving seniority with respect to other payables of the Company. As of March 31, 2023 and December 31, 2022, the Company has confirmed $246 million and $273 million, respectively, of accrued content producer liabilities. These amounts were outstanding and unpaid by the Company and were recorded in accrued liabilities on the consolidated balance sheets, given the principal purpose of the arrangement is to allow producers access to funds prior to the typical payment due date and the arrangement does not significantly change the nature of the payables and does not significantly extend the payment terms beyond the industry norms. Invoices processed through the program are subject to a one-year maximum tenor. The Company does not incur any fees or expenses associated with the paying agent services, and this service may be terminated by the Company or the financial institution upon 30 days’ notice. At, or near, the production completion date (invoice due date), the Company pays the financial institution the stated amounts for confirmed producer invoices. These payments are reported as cash flows from operating activities. 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 March 31, 2023 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (1,498) $ 14 $ (39) $ (1,523) Other comprehensive income (loss) before reclassifications 426 3 (9) 420 Reclassifications from accumulated other comprehensive loss to net income — (2) — (2) Other comprehensive income (loss) 426 1 (9) 418 Ending balance $ (1,072) $ 15 $ (48) $ (1,105) Three Months Ended March 31, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (845) $ 28 $ (13) $ (830) Other comprehensive income (loss) before reclassifications (97) (12) — (109) Reclassifications from accumulated other comprehensive loss to net income (2) (6) — (8) Other comprehensive income (loss) (99) (18) — (117) Ending balance $ (944) $ 10 $ (13) $ (947) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSIn 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 (collectively the “Liberty Group”). The Company’s Board of Directors includes Dr. John Malone, who is Chairman of the Board of Liberty Global and Liberty Broadband and beneficially owns approximately 30% and 48% of the aggregate voting power with respect to the election of directors of Liberty Global and Liberty Broadband, respectively. 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 March 31, 2023 2022 Revenues and service charges: Liberty Group $ 518 $ 158 Equity method investees 175 58 Other 47 33 Total revenues and service charges $ 740 $ 249 Expenses $ 99 $ 76 Distributions to noncontrolling interests and redeemable noncontrolling interests $ 237 $ 224 The table below presents receivables due from and payables due to related parties (in millions). March 31, 2023 December 31, 2022 Receivables $ 354 $ 338 Payables $ 23 $ 38 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Put Rights The Company has granted put rights to non-controlling interest holders in certain consolidated subsidiaries, but the Company is unable to reasonably predict the ultimate amount or timing of any payment. In 2022, GoldenTree exercised its irrevocable put right for MotorTrend Group LLC (“MTG”), and the Company will be required to purchase GoldenTree’s 32.5% noncontrolling interest. The Company performed an analysis of the redemption value as of December 31, 2022, and both parties have begun the process of determining a fair market value based on their own appraisals. The Company does not expect this process, which is one of potentially several steps to agreeing to a redemption value, will be completed until later in 2023. Accordingly, there has been no change in the classification of MTG as mezzanine equity since the amount or date of the put is not certain. Legal Matters |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2023 | |
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 connection with the Merger, the Company reevaluated and changed its segment presentation and reportable segments during the quarter ended June 30, 2022. 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 and facility consolidation; • 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, 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 inter-segment eliminations (in millions). Revenues Three Months Ended March 31, 2023 2022 Studios $ 3,212 $ 5 Networks 5,581 2,873 DTC 2,455 281 Inter-segment eliminations (548) — Total revenues $ 10,700 $ 3,159 Adjusted EBITDA Three Months Ended March 31, 2023 2022 Studios $ 607 $ 3 Networks 2,293 1,355 DTC 50 (227) Corporate (355) (104) Inter-segment eliminations 16 — Adjusted EBITDA $ 2,611 $ 1,027 Reconciliation of Net (Loss) Income available to Warner Bros. Discovery, Inc. to Adjusted EBITDA Three Months Ended March 31, 2023 2022 Net (loss) income available to Warner Bros. Discovery, Inc. $ (1,069) $ 456 Net income attributable to redeemable noncontrolling interests 1 3 Net income attributable to noncontrolling interests 8 16 Income tax (benefit) expense (178) 201 (Loss) income before income taxes (1,238) 676 Other expense (income), net 73 (490) Loss from equity investees, net 37 14 Interest expense, net 571 153 Operating (loss) income (557) 353 Restructuring 95 5 Impairments and loss on dispositions 31 — Depreciation and amortization 2,058 525 Employee share-based compensation 106 57 Transaction and integration costs 47 87 Amortization of fair value step-up for content 831 — Adjusted EBITDA $ 2,611 $ 1,027 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSIn April 2023, the Company borrowed $750 million under its Credit Facility to fund certain sports rights payments, which is expected to be repaid within the current quarter. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 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, 2022 (the “2022 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. |
Accounting and Reporting Pronouncements Adopted | Accounting and Reporting Pronouncements Adopted Supplier Finance Programs In September 2022, the Financial Accounting Standards Board issued guidance updating the disclosure requirements for supplier finance program obligations. This guidance provides specific authoritative guidance for disclosure of supplier finance programs, including key terms of such programs, amounts outstanding, and where the obligations are presented in the statement of financial position. The guidance is effective for annual periods beginning after December 15, 2022, including interim periods, except for the disclosure of roll forward information, which is effective for annual periods beginning after December 15, 2023. Certain components of this guidance must be applied retrospectively, while others may be applied prospectively. The Company adopted the guidance effective January 1, 2023 and has provided the required disclosures in Note 14. |
Derivatives | In the normal course of business, the Company is exposed to foreign currency exchange rate and interest rate fluctuations. As part of its risk management strategy, the Company uses derivative financial instruments, primarily foreign currency forward contracts, fixed-to-fixed currency swaps, and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. |
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. |
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 connection with the Merger, the Company reevaluated and changed its segment presentation and reportable segments during the quarter ended June 30, 2022. 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. |
Equity and Earnings Per Share (
Equity and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 (in millions). Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2023 2022 Numerator: Net (loss) income $ (1,060) $ 475 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (49) Net income attributable to noncontrolling interests (8) (16) Net income attributable to redeemable noncontrolling interests (1) (3) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net (loss) income per share $ (1,069) $ 407 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 49 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net (loss) income per share $ (1,069) $ 456 Denominator — weighted average: Common shares outstanding — basic 2,432 591 Impact of assumed preferred stock conversion — 71 Dilutive effect of share-based awards — 3 Common shares outstanding — diluted 2,432 665 Basic net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 Diluted net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 |
Schedule of Basic And Diluted Earnings per Share | The table below sets forth the Company’s calculated earnings per share (in millions). Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2023 2022 Numerator: Net (loss) income $ (1,060) $ 475 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (49) Net income attributable to noncontrolling interests (8) (16) Net income attributable to redeemable noncontrolling interests (1) (3) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net (loss) income per share $ (1,069) $ 407 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 49 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net (loss) income per share $ (1,069) $ 456 Denominator — weighted average: Common shares outstanding — basic 2,432 591 Impact of assumed preferred stock conversion — 71 Dilutive effect of share-based awards — 3 Common shares outstanding — diluted 2,432 665 Basic net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 Diluted net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 |
Schedule of Income Available to Warner Bros. Discovery Stockholders | The table below sets forth the Company’s calculated earnings per share (in millions). Earnings per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2023 2022 Numerator: Net (loss) income $ (1,060) $ 475 Less: Allocation of undistributed income to Series A-1 convertible preferred stock — (49) Net income attributable to noncontrolling interests (8) (16) Net income attributable to redeemable noncontrolling interests (1) (3) Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net (loss) income per share $ (1,069) $ 407 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders $ — $ 49 Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net (loss) income per share $ (1,069) $ 456 Denominator — weighted average: Common shares outstanding — basic 2,432 591 Impact of assumed preferred stock conversion — 71 Dilutive effect of share-based awards — 3 Common shares outstanding — diluted 2,432 665 Basic net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 Diluted net (loss) income per share allocated to common stockholders $ (0.44) $ 0.69 |
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 March 31, 2023 2022 Anti-dilutive share-based awards 62 33 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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). 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) Purchase consideration $ 42,376 (1) The fair value of WBD common stock issued to AT&T shareholders represents approximately 1,732 million shares of WBD common stock multiplied by the closing share price for Discovery Series A common stock of $24.43 on 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. (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, measurement period adjustments, and a reconciliation to total consideration transferred is presented in the table below (in millions). Preliminary Measurement Period Updated Preliminary Cash $ 2,419 $ (10) $ 2,409 Accounts receivable 4,224 (60) 4,164 Other current assets 4,619 (149) 4,470 Film and television content rights and games 28,729 (344) 28,385 Property and equipment 4,260 13 4,273 Goodwill 21,513 375 21,888 Intangible assets 44,889 100 44,989 Other noncurrent assets 5,206 309 5,515 Current liabilities (10,544) 7 (10,537) Debt assumed (41,671) (9) (41,680) Deferred income taxes (13,264) 716 (12,548) Other noncurrent liabilities (8,004) (948) (8,952) Total consideration paid $ 42,376 $ — $ 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 34 Affiliate, advertising and subscriber relationships 14,800 6 Franchises 7,900 35 Other intangible assets 1,205 Total intangible assets acquired $ 44,989 |
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 Months Ended March 31, 2023 Revenues: Distribution $ 3,885 Advertising 1,154 Content 3,338 Other 228 Total revenues 8,605 Inter-segment eliminations (477) Net revenues $ 8,128 Net loss available to Warner Bros. Discovery, Inc. $ (1,047) Three Months Ended March 31, 2022 Revenues $ 11,441 Net loss available to Warner Bros. Discovery, Inc. (299) |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs by Reportable Segment | Restructuring by reportable segments and corporate and inter-segment eliminations were as follows (in millions). Three Months Ended March 31, 2023 2022 Studios $ 76 $ — Networks 3 4 DTC 9 — Corporate and inter-segment eliminations 7 1 Total restructuring $ 95 $ 5 |
Schedule of Restructuring and Related Costs Changes in Exit Liabilities | Changes in restructuring liabilities recorded in accrued liabilities and other noncurrent liabilities by major category and by reportable segment and corporate and inter-segment eliminations were as follows (in millions). Studios Networks DTC Corporate and Inter-Segment Eliminations Total December 31, 2022 $ 156 $ 361 $ 188 $ 159 $ 864 Contract termination accruals, net 25 2 — — 27 Employee termination accruals, net 12 11 5 7 35 Other accruals — 2 — — 2 Cash paid (76) (207) (88) (61) (432) March 31, 2023 $ 117 $ 169 $ 105 $ 105 $ 496 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Studios Networks DTC Corporate and Inter-segment Eliminations Total Revenues: Distribution $ 3 $ 2,995 $ 2,165 $ — $ 5,163 Advertising 3 2,237 103 (45) 2,298 Content 3,027 245 185 (503) 2,954 Other 179 104 2 — 285 Total $ 3,212 $ 5,581 $ 2,455 $ (548) $ 10,700 Three Months Ended March 31, 2022 Studios Networks DTC Corporate and Inter-segment Eliminations Total Revenues: Distribution $ — $ 1,120 $ 232 $ — $ 1,352 Advertising — 1,430 46 — 1,476 Content 5 316 2 — 323 Other — 7 1 — 8 Total $ 5 $ 2,873 $ 281 $ — $ 3,159 |
Schedule of Contract Balances | The following table presents contract liabilities on the consolidated balance sheets (in millions). Category Balance Sheet Location March 31, 2023 December 31, 2022 Contract liabilities Deferred revenues $ 1,603 $ 1,694 Contract liabilities Other noncurrent liabilities 379 361 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table presents a summary of remaining performance obligations by contract type (in millions). Contract Type March 31, 2023 Duration Distribution - fixed price or minimum guarantee $ 4,379 Through 2031 Content licensing and sports sublicensing 4,424 Through 2026 Brand licensing 2,322 Through 2043 Advertising 763 Through 2027 Total $ 11,888 |
Sales of Receivables (Tables)
Sales of Receivables (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Transfer of Financial Assets Accounted for as Sales | The following table presents a summary of receivables sold (in millions). Three Months Ended March 31, 2023 Gross receivables sold/cash proceeds received $ 2,779 Collections reinvested under revolving agreement (2,845) Net cash proceeds remitted $ (66) Net receivables sold $ 2,698 Obligations recorded (Level 3) $ 148 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents a summary of the amounts transferred or pledged (in millions): March 31, 2023 December 31, 2022 Gross receivables pledged as collateral $ 3,453 $ 3,468 Restricted cash pledged as collateral $ — $ 150 Balance sheet classification: Receivables, net $ 3,275 $ 3,015 Prepaid expenses and other current assets $ — $ 150 Other noncurrent assets $ 178 $ 453 |
Content Rights (Tables)
Content Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The table below presents the components of content rights (in millions). March 31, 2023 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 2,032 $ — $ 2,032 Completed and not released 637 — 637 In production 1,545 — 1,545 In development 96 — 96 Television production costs: Released, less amortization 2,216 6,325 8,541 Completed and not released 608 540 1,148 In production 322 4,558 4,880 In development 47 15 62 Total theatrical film and television production costs $ 7,503 $ 11,438 $ 18,941 Programming rights, less amortization 6,763 Game development costs, less amortization 513 Total film and television content rights and games 26,217 Less: Current content rights and prepaid license fees, net (744) Total noncurrent film and television content rights and games $ 25,473 December 31, 2022 Predominantly Monetized Individually Predominantly Monetized as a Group Total Theatrical film production costs: Released, less amortization $ 3,544 $ — $ 3,544 Completed and not released 507 — 507 In production 1,700 — 1,700 In development 95 — 95 Television production costs: Released, less amortization 2,200 6,513 8,713 Completed and not released 939 310 1,249 In production 427 4,424 4,851 In development 30 15 45 Total theatrical film and television production costs $ 9,442 $ 11,262 $ 20,704 Programming rights, less amortization 5,843 Game development costs, less amortization 650 Total film and television content rights and games 27,197 Less: Current content rights and prepaid license fees, net (545) Total noncurrent film and television content rights and games $ 26,652 |
Schedule of Content Rights Expense | Content amortization consisted of the following (in millions). Three Months Ended March 31, 2023 2022 Predominately monetized individually $ 1,531 $ 251 Predominately monetized as a group 3,096 718 Total content amortization $ 4,627 $ 969 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s equity investments consisted of the following, (in millions). Category Balance Sheet Location Ownership March 31, 2023 December 31, 2022 Equity method investments: The Chernin Group (TCG) 2.0-A, LP Other noncurrent assets 44% $ 291 $ 313 nC+ Other noncurrent assets 32% 143 135 Other Other noncurrent assets 590 614 Total equity method investments 1,024 1,062 Investments with readily determinable fair values Other noncurrent assets 53 28 Investments without readily determinable fair values Other noncurrent assets (a) 449 498 Total investments $ 1,526 $ 1,588 (a) Investments without readily determinable fair values included $27 million as of March 31, 2023 and $10 million as of December 31, 2022 that were included in prepaid expenses and other current assets. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). Weighted-Average March 31, 2023 December 31, 2022 Term loans with maturities of 3 years or less 6.01 % $ 2,500 $ 4,000 Floating rate senior notes with maturities of 5 years or less 6.20 % 500 500 Senior notes with maturities of 5 years or less 3.92 % 15,964 12,759 Senior notes with maturities between 5 and 10 years 4.28 % 8,607 10,373 Senior notes with maturities greater than 10 years 5.11 % 21,644 21,644 Total debt 49,215 49,276 Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net (285) (277) Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting 48,930 48,999 Current portion of debt (3,496) (365) Noncurrent portion of debt $ 45,434 $ 48,634 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022. The fair value of the Company’s derivative financial instruments was determined using a market-based approach (Level 2). March 31, 2023 December 31, 2022 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 $ 2,031 $ 55 $ 33 $ 47 $ 21 $ 1,382 $ 49 $ 35 $ 42 $ 25 Cross-currency swaps 495 4 67 — — 482 3 58 — — Net investment hedges: (a) Cross-currency swaps 1,728 20 11 18 49 1,778 20 12 — 73 Fair value hedges: Interest rate swaps 1,500 13 — — 1 — — — — — No hedging designation: Foreign exchange 939 1 1 5 98 976 5 1 3 96 Cross-currency swaps 139 — — 1 — 139 3 — — 3 Total return swaps 373 7 — — — 291 — — 13 — Total $ 100 $ 112 $ 71 $ 169 $ 80 $ 106 $ 58 $ 197 (a) Excludes €164 million of euro-denominated notes ($179 million and $174 million equivalent at March 31, 2023 and December 31, 2022, respectively) designated as net investment hedges. (See Note 9.) |
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 (loss) income (in millions). Three Months Ended March 31, 2023 2022 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 1 $ (13) Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - distribution revenue (1) 4 Foreign exchange - advertising revenue — 1 Foreign exchange - costs of revenues 2 1 Interest rate - interest expense, net 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 (loss) income (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 months ended March 31, 2023 and 2022. Three Months Ended March 31, 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) 2023 2022 2023 2022 Cross currency swaps $ 22 $ 19 Interest expense, net $ 5 $ 15 Euro-denominated notes (foreign denominated debt) 5 — N/A — — Sterling notes (foreign denominated debt) — 13 N/A — — Total $ 27 $ 32 $ 5 $ 15 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents fair value hedge adjustments to hedged borrowings (in millions). Carrying Amount of Cumulative Amount of Fair Value Hedging Adjustments Included in Hedged Borrowings Balance Sheet Location March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Noncurrent portion of debt $ 1,512 $ — $ 12 $ — The following table presents the pretax impact of derivatives designated as fair value hedges on income, including offsetting changes in fair value of the hedged items (in millions). Three Months Ended March 31, 2023 2022 Loss on changes in fair value of hedged fixed rate debt (1) $ (12) $ — Gains on changes in the fair value of derivative contracts (1) 12 — Total in interest expense, net $ — $ — (1) Accrued interest related to the hedged debt and derivative contracts is excluded from the amounts above and was not material as of March 31, 2023. |
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 March 31, 2023 2022 Interest rate swaps $ — $ 512 Foreign exchange derivatives 3 (15) Total in other (expense) income, net $ 3 $ 497 Total return swaps (selling, general and administrative expense) 18 — Total $ 21 $ 497 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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). March 31, 2023 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 148 $ — $ 148 Equity securities: Money market fund Cash and cash equivalents 3 — — 3 Mutual funds Prepaid expenses and other current assets 9 — — 9 Company-owned life insurance contracts Prepaid expenses and other current assets — 3 — 3 Mutual funds Other noncurrent assets 240 — — 240 Company-owned life insurance contracts Other noncurrent assets — 95 — 95 Time deposits Other noncurrent assets — 10 — 10 Total $ 252 $ 256 $ — $ 508 Liabilities Deferred compensation plan Accrued liabilities $ 70 $ — $ — $ 70 Deferred compensation plan Other noncurrent liabilities 603 — — 603 Total $ 673 $ — $ — $ 673 December 31, 2022 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 50 $ — $ 50 Equity securities: Money market funds Cash and cash equivalents 20 — — 20 Mutual funds Prepaid expenses and other current assets 14 — — 14 Company-owned life insurance contracts Prepaid expenses and other current assets — 1 — 1 Mutual funds Other noncurrent assets 243 — — 243 Company-owned life insurance contracts Other noncurrent assets — 94 — 94 Time deposits Other noncurrent assets — 8 — 8 Total $ 277 $ 153 $ — $ 430 Liabilities Deferred compensation plan Accrued liabilities $ 73 $ — $ — $ 73 Deferred compensation plan Other noncurrent liabilities 590 — — 590 Total $ 663 $ — $ — $ 663 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Other Share-based Compensation, Activity | The table below presents awards granted (in millions, except weighted-average grant price). Three Months Ended March 31, 2023 Awards Weighted-Average Grant Price Awards granted: PRSUs 4.0 $ 15.41 RSUs 26.2 $ 15.00 Stock options 2.2 $ 15.02 |
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 March 31, 2023 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period PRSUs $ 62 2.1 RSUs 790 2.4 Stock options 160 3.2 Total unrecognized compensation cost $ 1,012 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Income, Net | Other (expense) income, net, consisted of the following (in millions). Three Months Ended March 31, 2023 2022 Foreign currency (losses) gains, net $ (93) $ 11 Gains on derivative instruments, net 3 497 Change in the value of investments with readily determinable fair value 29 (20) Change in fair value of equity investments without readily determinable fair value (68) — Other income, net 56 2 Total other (expense) income, net $ (73) $ 490 |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2023 2022 Cash paid for taxes, net $ 312 $ 97 Cash paid for interest, net 920 186 Non-cash investing and financing activities: Accrued purchases of property and equipment 33 26 Assets acquired under finance lease and other arrangements 29 13 |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,594 $ 3,731 Restricted cash - recorded in prepaid expenses and other current assets (1) 45 199 Total cash, cash equivalents, and restricted cash $ 2,639 $ 3,930 (1) Restricted cash primarily includes cash posted as collateral related to the Company’s revolving receivables and hedging programs. (See Note 6 and Note 10). |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,594 $ 3,731 Restricted cash - recorded in prepaid expenses and other current assets (1) 45 199 Total cash, cash equivalents, and restricted cash $ 2,639 $ 3,930 (1) Restricted cash primarily includes cash posted as collateral related to the Company’s revolving receivables and hedging programs. (See Note 6 and Note 10). |
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 March 31, 2023 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (1,498) $ 14 $ (39) $ (1,523) Other comprehensive income (loss) before reclassifications 426 3 (9) 420 Reclassifications from accumulated other comprehensive loss to net income — (2) — (2) Other comprehensive income (loss) 426 1 (9) 418 Ending balance $ (1,072) $ 15 $ (48) $ (1,105) Three Months Ended March 31, 2022 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Beginning balance $ (845) $ 28 $ (13) $ (830) Other comprehensive income (loss) before reclassifications (97) (12) — (109) Reclassifications from accumulated other comprehensive loss to net income (2) (6) — (8) Other comprehensive income (loss) (99) (18) — (117) Ending balance $ (944) $ 10 $ (13) $ (947) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 Revenues and service charges: Liberty Group $ 518 $ 158 Equity method investees 175 58 Other 47 33 Total revenues and service charges $ 740 $ 249 Expenses $ 99 $ 76 Distributions to noncontrolling interests and redeemable noncontrolling interests $ 237 $ 224 |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from and payables due to related parties (in millions). March 31, 2023 December 31, 2022 Receivables $ 354 $ 338 Payables $ 23 $ 38 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | The tables below present summarized financial information for each of the Company’s reportable segments and inter-segment eliminations (in millions). Revenues Three Months Ended March 31, 2023 2022 Studios $ 3,212 $ 5 Networks 5,581 2,873 DTC 2,455 281 Inter-segment eliminations (548) — Total revenues $ 10,700 $ 3,159 |
Schedule Of Adjusted EBITDA By Segment | Three Months Ended March 31, 2023 2022 Studios $ 607 $ 3 Networks 2,293 1,355 DTC 50 (227) Corporate (355) (104) Inter-segment eliminations 16 — Adjusted EBITDA $ 2,611 $ 1,027 |
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 March 31, 2023 2022 Net (loss) income available to Warner Bros. Discovery, Inc. $ (1,069) $ 456 Net income attributable to redeemable noncontrolling interests 1 3 Net income attributable to noncontrolling interests 8 16 Income tax (benefit) expense (178) 201 (Loss) income before income taxes (1,238) 676 Other expense (income), net 73 (490) Loss from equity investees, net 37 14 Interest expense, net 571 153 Operating (loss) income (557) 353 Restructuring 95 5 Impairments and loss on dispositions 31 — Depreciation and amortization 2,058 525 Employee share-based compensation 106 57 Transaction and integration costs 47 87 Amortization of fair value step-up for content 831 — Adjusted EBITDA $ 2,611 $ 1,027 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) - WarnerMedia - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 08, 2022 | Apr. 07, 2022 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||
Total consideration paid | $ 42,376 | ||
Cash acquired from business acquisition and working capital settlement | $ 1,200 | ||
Percentage of voting interests acquired | 29% | ||
WarnerMedia | |||
Business Acquisition [Line Items] | |||
Total consideration paid | $ 42,400 | ||
AT&T | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 71% | ||
AT&T | |||
Business Acquisition [Line Items] | |||
Total consideration paid | $ 40,500 |
Equity and Earnings Per Share_2
Equity and Earnings Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 08, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||
Selling, general and administrative | $ 2,388 | $ 1,040 | |
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_3
Equity and Earnings Per Share (Calculated Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net (loss) income | $ (1,060) | $ 475 |
Less: | ||
Allocation of undistributed income to Series A-1 convertible preferred stock | 0 | (49) |
Net income attributable to noncontrolling interests | (8) | (16) |
Net income attributable to redeemable noncontrolling interests | (1) | (3) |
Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted net (loss) income per share | (1,069) | 407 |
Add: | ||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 0 | 49 |
Net (loss) income allocated to Warner Bros. Discovery, Inc. Series A common stockholders for diluted net (loss) income per share | $ (1,069) | $ 456 |
Denominator — weighted average: | ||
Common shares outstanding — basic (in shares) | 2,432 | 591 |
Impact of assumed preferred stock conversion (in shares) | 0 | 71 |
Dilutive effect of share-based awards (in shares) | 0 | 3 |
Common shares outstanding — diluted (in shares) | 2,432 | 665 |
Basic net income per share allocated to common stockholders (in dollars per share) | $ (0.44) | $ 0.69 |
Diluted net income per share allocated to common stockholders (in dollars per share) | $ (0.44) | $ 0.69 |
Equity and Earnings Per Share_4
Equity and Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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) | 62 | 33 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Acquisitions) (Details) $ in Millions | 3 Months Ended | |||
Apr. 08, 2022 USD ($) countryAndTerritory | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Number of countries and territories available | countryAndTerritory | 220 | |||
Transaction-related costs incurred | $ 47 | $ 87 | ||
WarnerMedia | ||||
Business Acquisition [Line Items] | ||||
Cash acquired from business acquisition and working capital settlement | $ 1,200 | |||
Impact of measurement period adjustments | 148 | |||
Transaction-related costs incurred | $ 47 | $ 87 | ||
WarnerMedia | Studios | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | $ 9,129 | |||
WarnerMedia | Networks | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | 7,076 | |||
WarnerMedia | DTC | ||||
Business Acquisition [Line Items] | ||||
Acquisitions | $ 5,683 |
Acquisitions and Dispositions_3
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) |
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_4
Acquisitions and Dispositions (Schedule of Consideration Paid) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 08, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 34,658 | $ 34,438 | |
Intangible assets | $ 44,989 | ||
WarnerMedia | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Cash | 2,409 | ||
Accounts receivable | 4,164 | ||
Other current assets | 4,470 | ||
Film and television content rights and games | 28,385 | ||
Property and equipment | 4,273 | ||
Goodwill | 21,888 | ||
Intangible assets | 44,989 | ||
Other noncurrent assets | 5,515 | ||
Current liabilities | (10,537) | ||
Debt assumed | (41,680) | (1,400) | |
Deferred income taxes | (12,548) | ||
Other noncurrent liabilities | (8,952) | ||
Total consideration paid | 42,376 | ||
Measurement Period Adjustments | |||
Cash | (10) | ||
Accounts receivable | (60) | ||
Other current assets | (149) | ||
Film and television content rights and games | (344) | ||
Property and equipment | 13 | ||
Goodwill | 375 | ||
Intangible assets | 100 | ||
Other noncurrent assets | 309 | ||
Current liabilities | 7 | ||
Debt assumed | (9) | ||
Deferred income taxes | 716 | ||
Other noncurrent liabilities | (948) | ||
Total consideration paid | $ 0 | ||
WarnerMedia | Preliminary | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Cash | 2,419 | ||
Accounts receivable | 4,224 | ||
Other current assets | 4,619 | ||
Film and television content rights and games | 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 |
Acquisitions and Dispositions_5
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 | $ 44,989 |
Trade names | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 21,084 |
Weighted Average Useful Life in Years | 34 years |
Affiliate, advertising and subscriber relationships | |
Business Acquisition [Line Items] | |
Fair Value of finite-lived intangible assets | $ 14,800 |
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_6
Acquisitions and Dispositions (Schedule of Revenues and Earnings Reported Within Consolidated Financial Statements) (Details) - WarnerMedia $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 8,128 |
Net loss available to Warner Bros. Discovery, Inc. | (1,047) |
Operating Segments | |
Business Acquisition [Line Items] | |
Revenues | 8,605 |
Inter-segment eliminations | |
Business Acquisition [Line Items] | |
Revenues | (477) |
Distribution | Operating Segments | |
Business Acquisition [Line Items] | |
Revenues | 3,885 |
Advertising | Operating Segments | |
Business Acquisition [Line Items] | |
Revenues | 1,154 |
Content | Operating Segments | |
Business Acquisition [Line Items] | |
Revenues | 3,338 |
Other | Operating Segments | |
Business Acquisition [Line Items] | |
Revenues | $ 228 |
Acquisitions and Dispositions_7
Acquisitions and Dispositions (Schedule of Pro Forma) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Net loss available to Warner Bros. Discovery, Inc. | $ (299) |
WarnerMedia | |
Business Acquisition [Line Items] | |
Revenues | $ 11,441 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 95 | $ 5 |
Operating Segments | Studios | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 76 | 0 |
Operating Segments | Networks | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 3 | 4 |
Operating Segments | DTC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 9 | 0 |
Corporate and Inter-Segment Eliminations | DTC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 7 | $ 1 |
Restructuring (Additional Infor
Restructuring (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 95 | $ 5 |
Content Related Write-Offs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 4 | |
Organization Restructuring Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 35 | |
Contract Terminations And Facility Consolidation Activities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 56 |
Restructuring (Liabilities) (De
Restructuring (Liabilities) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Reserve | |
Beginning balance | $ 864 |
Other accruals | 2 |
Cash paid | (432) |
Ending balance | 496 |
Contract termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 27 |
Employee termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 35 |
Corporate and Inter-Segment Eliminations | |
Restructuring Reserve | |
Beginning balance | 159 |
Other accruals | 0 |
Cash paid | (61) |
Ending balance | 105 |
Corporate and Inter-Segment Eliminations | Contract termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 0 |
Corporate and Inter-Segment Eliminations | Employee termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 7 |
Studios | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 156 |
Other accruals | 0 |
Cash paid | (76) |
Ending balance | 117 |
Studios | Operating Segments | Contract termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 25 |
Studios | Operating Segments | Employee termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 12 |
Networks | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 361 |
Other accruals | 2 |
Cash paid | (207) |
Ending balance | 169 |
Networks | Operating Segments | Contract termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 2 |
Networks | Operating Segments | Employee termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 11 |
DTC | Operating Segments | |
Restructuring Reserve | |
Beginning balance | 188 |
Other accruals | 0 |
Cash paid | (88) |
Ending balance | 105 |
DTC | Operating Segments | Contract termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | 0 |
DTC | Operating Segments | Employee termination accruals, net | |
Restructuring Reserve | |
Termination accruals, net | $ 5 |
Revenues (Revenue Recognition)
Revenues (Revenue Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 10,700 | $ 3,159 |
Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,163 | 1,352 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,298 | 1,476 |
Content | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,954 | 323 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 285 | 8 |
Operating Segments | Studios | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,212 | 5 |
Operating Segments | Studios | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3 | 0 |
Operating Segments | Studios | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3 | 0 |
Operating Segments | Studios | Content | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,027 | 5 |
Operating Segments | Studios | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 179 | 0 |
Operating Segments | Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,581 | 2,873 |
Operating Segments | Networks | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,995 | 1,120 |
Operating Segments | Networks | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,237 | 1,430 |
Operating Segments | Networks | Content | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 245 | 316 |
Operating Segments | Networks | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 104 | 7 |
Operating Segments | DTC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,455 | 281 |
Operating Segments | DTC | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,165 | 232 |
Operating Segments | DTC | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 103 | 46 |
Operating Segments | DTC | Content | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 185 | 2 |
Operating Segments | DTC | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2 | 1 |
Corporate and Inter-Segment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (548) | 0 |
Corporate and Inter-Segment Eliminations | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Inter-Segment Eliminations | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (45) | 0 |
Corporate and Inter-Segment Eliminations | Content | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (503) | 0 |
Corporate and Inter-Segment Eliminations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenues (Schedule of Contract
Revenues (Schedule of Contract Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities - deferred revenues | $ 1,603 | $ 1,694 |
Contract liabilities - other noncurrent liabilities | $ 379 | $ 361 |
Revenues (Contract Balances) (D
Revenues (Contract Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to the contract liability (deferred revenues) | $ 856 | $ 295 |
Revenues (Transaction Price All
Revenues (Transaction Price Allocated to Remaining Performance Obligations) (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 11,888 |
Distribution - fixed price or minimum guarantee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,379 |
Remaining performance obligations, expected timing of satisfaction, period | 8 years 9 months 3 days |
Content licensing and sports sublicensing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,424 |
Remaining performance obligations, expected timing of satisfaction, period | 2 years 9 months |
Brand licensing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,322 |
Remaining performance obligations, expected timing of satisfaction, period | 20 years 9 months 3 days |
Advertising | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 763 |
Remaining performance obligations, expected timing of satisfaction, period | 2 years 9 months |
Sales of Receivables (Narrative
Sales of Receivables (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loss on revolving receivables program | $ 33 |
Outstanding receivables derecognized | 5,300 |
Accounts receivable sold under factoring arrangements | 72 |
Asset Pledged as Collateral | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Cash | $ 3,453 |
Sales of Receivables (Summary o
Sales of Receivables (Summary of Receivables Sold) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Receivables [Abstract] | |
Gross receivables sold/cash proceeds received | $ 2,779 |
Collections reinvested under revolving agreement | (2,845) |
Net cash proceeds remitted | (66) |
Net receivables sold | 2,698 |
Obligations recorded (Level 3) | $ 148 |
Sales of Receivables (Summary_2
Sales of Receivables (Summary of Accounts Serviced) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Restricted cash pledged as collateral | $ 45 | $ 199 |
Asset Pledged as Collateral | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Gross receivables pledged as collateral | 3,453 | 3,468 |
Restricted cash pledged as collateral | 0 | 150 |
Asset Pledged as Collateral | Receivables, net | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Receivables, net | 3,275 | 3,015 |
Asset Pledged as Collateral | Other noncurrent assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Other noncurrent assets | $ 178 | $ 453 |
Content Rights (Schedule of Con
Content Rights (Schedule of Content Rights) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Content Rights [Line Items] | ||
Predominantly Monetized Individually | $ 7,503 | $ 9,442 |
Predominantly Monetized as a Group | 11,438 | 11,262 |
Total | 18,941 | 20,704 |
Programming rights, less amortization | 6,763 | 5,843 |
Game development costs, less amortization | 513 | 650 |
Total film and television content rights and games | 26,217 | 27,197 |
Less: Current content rights and prepaid license fees, net | (744) | (545) |
Total noncurrent film and television content rights and games | 25,473 | 26,652 |
Theatrical film production costs | ||
Content Rights [Line Items] | ||
Predominantly Monetized Individually, Released, less amortization | 2,032 | 3,544 |
Predominantly Monetized Individually, Completed and not released | 637 | 507 |
Predominantly Monetized Individually, In production | 1,545 | 1,700 |
Predominantly Monetized Individually, In development | 96 | 95 |
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, In development | 0 | 0 |
Total, Released, less amortization | 2,032 | 3,544 |
Total, Completed and not released | 637 | 507 |
Total, In production | 1,545 | 1,700 |
Total, In development | 96 | 95 |
Television production costs | ||
Content Rights [Line Items] | ||
Predominantly Monetized Individually, Released, less amortization | 2,216 | 2,200 |
Predominantly Monetized Individually, Completed and not released | 608 | 939 |
Predominantly Monetized Individually, In production | 322 | 427 |
Predominantly Monetized Individually, In development | 47 | 30 |
Predominantly Monetized as a Group, Released, less amortization | 6,325 | 6,513 |
Predominantly Monetized as a Group, Completed and not released | 540 | 310 |
Predominantly Monetized as a Group, In production | 4,558 | 4,424 |
Predominantly Monetized as a Group, In development | 15 | 15 |
Total, Released, less amortization | 8,541 | 8,713 |
Total, Completed and not released | 1,148 | 1,249 |
Total, In production | 4,880 | 4,851 |
Total, In development | $ 62 | $ 45 |
Content Rights (Schedule Of C_2
Content Rights (Schedule Of Content Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Predominately monetized individually | $ 1,531 | $ 251 |
Predominately monetized as a group | 3,096 | 718 |
Total content amortization | $ 4,627 | $ 969 |
Content Rights (Narrative) (Det
Content Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Content Expense [Line Items] | ||
Restructuring | $ 95 | $ 5 |
Content Impairment | ||
Content Expense [Line Items] | ||
Restructuring | $ 96 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments: | $ 1,024 | $ 1,062 |
Investments with readily determinable fair values | 53 | 28 |
Equity investments without readily determinable fair values: | 449 | 498 |
Total investments | $ 1,526 | 1,588 |
The Chernin Group (TCG) 2.0-A, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 44% | |
Equity method investments: | $ 291 | 313 |
nC+ | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 32% | |
Equity method investments: | $ 143 | 135 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments: | 590 | 614 |
Prepaid expenses and other current assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments without readily determinable fair values: | $ 27 | $ 10 |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 1,024 | $ 1,062 |
Variable Interest Entity, Not Primary Beneficiary | ||
Schedule of Equity Method Investments [Line Items] | ||
Variable interest, maximum exposure to loss | 725 | |
Equity method investments | $ 703 | $ 720 |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments [Abstract] | ||
Equity securities without readily determinable fair value, decrease in fair value | $ 68 | $ 0 |
Equity securities without readily determinable fair value, cumulative impairments | $ 297 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total debt | $ 49,215 | $ 49,276 |
Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net | (285) | (277) |
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting | 48,930 | 48,999 |
Current portion of debt | (3,496) | (365) |
Noncurrent portion of debt | $ 45,434 | 48,634 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.412% | |
Term loans with maturities of 3 years or less | Term Loan | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 3 years | |
Total debt | $ 2,500 | 4,000 |
Term loans with maturities of 3 years or less | Weighted Average | Term Loan | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.01% | |
Floating rate senior notes with maturities of 5 years or less | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 5 years | |
Total debt | $ 500 | 500 |
Floating rate senior notes with maturities of 5 years or less | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.20% | |
Senior notes with maturities of 5 years or less | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 5 years | |
Total debt | $ 15,964 | 12,759 |
Senior notes with maturities of 5 years or less | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.92% | |
Senior notes with maturities between 5 and 10 years | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 8,607 | 10,373 |
Senior notes with maturities between 5 and 10 years | Minimum | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 5 years | |
Senior notes with maturities between 5 and 10 years | Maximum | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 10 years | |
Senior notes with maturities between 5 and 10 years | Weighted Average | Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.28% | |
Senior notes with maturities greater than 10 years | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity term | 10 years | |
Total debt | $ 21,644 | $ 21,644 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Apr. 08, 2022 | |
WarnerMedia | |||
Debt Instrument [Line Items] | |||
Debt assumed | $ 1,400,000,000 | $ 41,680,000,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 1,500,000,000 | ||
Debt instrument interest rate | 6.412% | ||
Principal repayments of term loans | $ 106,000,000 | ||
Senior Notes | 2.375% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.375% | ||
Extinguishment of debt, amount | $ 327,000,000 | ||
Senior Notes | Un-exchanged Scripps Senior Notes | Scripps Networks | |||
Debt Instrument [Line Items] | |||
Principal amount of liabilities assumed | 23,000,000 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Face amount | $ 10,000,000,000 | ||
Principal repayments of term loans | $ 1,500,000,000 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | Apr. 08, 2024 | Apr. 08, 2023 | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 09, 2022 USD ($) |
Line of Credit Facility [Line Items] | |||||
Long-term debt, gross | $ 49,215,000,000 | $ 49,276,000,000 | |||
Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt, gross | $ 0 | $ 0 | |||
Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, covenant, consolidated interest coverage ratio, minimum | 3 | ||||
Debt instrument, covenant, adjusted consolidated leverage ratio, maximum | 5.75 | ||||
Term Loan | Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, covenant, adjusted consolidated leverage ratio, maximum | 4.50 | 5 | |||
Revolving Credit Facility | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Revolving line of credit, maximum borrowing capacity | $ 6,000,000,000 | ||||
Debt instrument, covenant, consolidated interest coverage ratio, minimum | 3 | ||||
Debt instrument, covenant, adjusted consolidated leverage ratio, maximum | 5.75 | ||||
Revolving Credit Facility | Line of Credit | Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, covenant, adjusted consolidated leverage ratio, maximum | 4.50 | 5 | |||
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 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Senior Notes | |
Derivative [Line Items] | |
Face amount | $ 1,500,000,000 |
Weighted average interest rate | 6.412% |
Designated as Hedging Instrument | Cash Flow Hedging | |
Derivative [Line Items] | |
Maximum length of time hedged in cash flow hedge | 32 years |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) € in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) |
Derivatives, Fair Value [Line Items] | |||
Amounts eligible to be offset under master netting agreements | $ 0 | $ 0 | |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 100,000,000 | 80,000,000 | |
Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 112,000,000 | 106,000,000 | |
Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 71,000,000 | 58,000,000 | |
Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 169,000,000 | 197,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 939,000,000 | 976,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 1,000,000 | 5,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 1,000,000 | 1,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 5,000,000 | 3,000,000 | |
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 98,000,000 | 96,000,000 | |
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 | 0 | 3,000,000 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 1,000,000 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 3,000,000 | |
Not Designated as Hedging Instrument | Total Return Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 373,000,000 | 291,000,000 | |
Not Designated as Hedging Instrument | Total Return Swap | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 7,000,000 | 0 | |
Not Designated as Hedging Instrument | Total Return Swap | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Total Return Swap | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 13,000,000 | |
Not Designated as Hedging Instrument | Total Return Swap | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 2,031,000,000 | 1,382,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 55,000,000 | 49,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 33,000,000 | 35,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 47,000,000 | 42,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 21,000,000 | 25,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 495,000,000 | 482,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 4,000,000 | 3,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 67,000,000 | 58,000,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 179,000,000 | € 164 | 174,000,000 |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 1,728,000,000 | 1,778,000,000 | |
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 | 20,000,000 | 20,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 11,000,000 | 12,000,000 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 18,000,000 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 49,000,000 | 73,000,000 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 1,500,000,000 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 13,000,000 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swaps | Accounts payable and accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | $ 1,000,000 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Income and Comprehensive Income (Loss) Impact of Items Designated as Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | $ 3 | $ (12) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | 1 | (13) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Distribution | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | (1) | 4 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Advertising | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 0 | 1 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Cost of Revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 2 | 1 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Other (expense) income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | $ 1 | $ 0 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | $ 27 | $ 32 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 5 | 15 |
Sterling Notes | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 0 | 13 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 0 |
Euro Denominated Borrowings | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 5 | 0 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 0 |
Cross-currency swaps | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 22 | 19 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 5 | $ 15 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Hedging Activities Fair Value) (Details) - Long-Term Debt - Noncurrent portion of debt - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Hedged Borrowings | $ 1,512 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustments Included in Hedged Borrowings | $ 12 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Interest Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Loss on changes in fair value of hedged fixed rate debt | $ (12) | $ 0 |
Gains on changes in the fair value of derivative contracts | 12 | 0 |
Total in interest expense, net | $ 0 | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items not Designated as Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | $ 3 | $ 497 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | 21 | 497 |
Other expense, net | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | 3 | 497 |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | 0 | 512 |
Foreign exchange | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | 3 | (15) |
Total Return Swap | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other (expense) income, net | $ 18 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 508 | $ 430 |
Liabilities | 673 | 663 |
Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 148 | 50 |
Equity securities | 3 | 20 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 9 | 14 |
Company-owned life insurance contracts | 3 | 1 |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 10 | 8 |
Equity securities | 240 | 243 |
Company-owned life insurance contracts | 95 | 94 |
Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 70 | 73 |
Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 603 | 590 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 252 | 277 |
Liabilities | 673 | 663 |
Level 1 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Equity securities | 3 | 20 |
Level 1 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 9 | 14 |
Company-owned life insurance contracts | 0 | 0 |
Level 1 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
Equity securities | 240 | 243 |
Company-owned life insurance contracts | 0 | 0 |
Level 1 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 70 | 73 |
Level 1 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 603 | 590 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 256 | 153 |
Liabilities | 0 | 0 |
Level 2 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 148 | 50 |
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 | 3 | 1 |
Level 2 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 10 | 8 |
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 95 | 94 |
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 | 0 |
Level 3 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 0 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | $ 41.6 | $ 38 |
Share-based Compensation (Award
Share-based Compensation (Awards Granted and Converted During Period) (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 4 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 15.41 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 26.2 |
Awards granted, weighted-average grant price (in dollars per share) | $ / shares | $ 15 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, granted (in shares) | shares | 2.2 |
Stock options, weighted-average grant price (in dollars per share) | $ / shares | $ 15.02 |
Share-based Compensation (Unrec
Share-based Compensation (Unrecognized Compensation Cost) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 1,012 |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 62 |
Weighted-Average Amortization Period (years) | 2 years 1 month 6 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 790 |
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 | $ 160 |
Weighted-Average Amortization Period (years) | 3 years 2 months 12 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense | $ (178) | $ 201 | |
Unrecognized tax benefits | 2,195 | $ 1,929 | |
Unrecognized tax benefits, decreases resulting from current period tax positions | 165 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 492 | $ 413 |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Other (Expense) Income, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Foreign currency (losses) gains, net | $ (93) | $ 11 |
Gains on derivative instruments, net | 3 | 497 |
Change in the value of investments with readily determinable fair value | 29 | (20) |
Change in fair value of equity investments without readily determinable fair value | (68) | 0 |
Other income, net | 56 | 2 |
Total other (expense) income, net | $ (73) | $ 490 |
Supplemental Disclosures (Sch_2
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash paid for taxes, net | $ 312 | $ 97 |
Cash paid for interest, net | 920 | 186 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 33 | 26 |
Assets acquired under finance lease and other arrangements | $ 29 | $ 13 |
Supplemental Disclosures (Sch_3
Supplemental Disclosures (Schedule of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 2,594 | $ 3,731 | ||
Restricted cash - recorded in prepaid expenses and other current assets | 45 | 199 | ||
Total cash, cash equivalents, and restricted cash | $ 2,639 | $ 3,930 | $ 4,165 | $ 3,905 |
Supplemental Disclosures (Asset
Supplemental Disclosures (Assets Held for Sale) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Discontinued Operations, Held-for-sale | Ranch Lot And Knoxville Office Building | |
Long-Lived Assets Held-for-sale [Line Items] | |
Assets held for sale | $ 209 |
Supplemental Disclosures (Suppl
Supplemental Disclosures (Supplier Finance Programs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier finance program, termination timing, period | 30 days | |
Supplier finance program, obligation, current | $ 246 | $ 273 |
Supplemental Disclosures (Accum
Supplemental Disclosures (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | $ 48,349 | $ 13,033 |
Other comprehensive income (loss) before reclassifications | (109) | |
Reclassifications from accumulated other comprehensive loss to net income | (8) | |
Other comprehensive income (loss) | 418 | (117) |
Ending balance | 47,533 | 13,227 |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (1,523) | (830) |
Other comprehensive income (loss) before reclassifications | 420 | |
Reclassifications from accumulated other comprehensive loss to net income | (2) | |
Other comprehensive income (loss) | 418 | (117) |
Ending balance | (1,105) | (947) |
Currency translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (1,498) | (845) |
Other comprehensive income (loss) before reclassifications | 426 | (97) |
Reclassifications from accumulated other comprehensive loss to net income | 0 | (2) |
Other comprehensive income (loss) | 426 | (99) |
Ending balance | (1,072) | (944) |
Derivative Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | 14 | 28 |
Other comprehensive income (loss) before reclassifications | 3 | (12) |
Reclassifications from accumulated other comprehensive loss to net income | (2) | (6) |
Other comprehensive income (loss) | 1 | (18) |
Ending balance | 15 | 10 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (39) | (13) |
Other comprehensive income (loss) before reclassifications | (9) | 0 |
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 |
Other comprehensive income (loss) | (9) | 0 |
Ending balance | $ (48) | $ (13) |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Mar. 31, 2023 |
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 | 48% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions, Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 740 | $ 249 |
Expenses | 99 | 76 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 237 | 224 |
Liberty Group | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 518 | 158 |
Equity method investees | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 175 | 58 |
Other | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 47 | $ 33 |
Related Party Transactions (S_2
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | ||
Receivables | $ 354 | $ 338 |
Payables | $ 23 | $ 38 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Dec. 31, 2022 |
MTG Joint Venture | |
Other Commitments [Line Items] | |
Percentage of voting interests acquired | 32.50% |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 10,700 | $ 3,159 |
Operating Segments | Studios | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3,212 | 5 |
Operating Segments | Networks | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 5,581 | 2,873 |
Operating Segments | DTC | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 2,455 | 281 |
Inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ (548) | $ 0 |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Adjusted EBITDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 2,611 | $ 1,027 |
Operating Segments | Networks | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 2,293 | 1,355 |
Operating Segments | DTC | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 50 | (227) |
Operating Segments | Studios | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 607 | 3 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (355) | (104) |
Inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 16 | $ 0 |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Reconciliation of Adjusted EBITDA to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Net (loss) income available to Warner Bros. Discovery, Inc. | $ (1,069) | $ 456 |
Net income attributable to redeemable noncontrolling interests | 1 | 3 |
Net income attributable to noncontrolling interests | 8 | 16 |
Income tax (benefit) expense | (178) | 201 |
(Loss) income before income taxes | (1,238) | 676 |
Other (expense) income, net | 73 | (490) |
Loss from equity investees, net | 37 | 14 |
Interest expense, net | 571 | 153 |
Operating (loss) income | (557) | 353 |
Restructuring | 95 | 5 |
Impairments and loss on dispositions | 31 | 0 |
Depreciation and amortization | 2,058 | 525 |
Employee share-based compensation | 106 | 57 |
Transaction and integration costs | 47 | 87 |
Amortization of fair value step-up for content | 831 | 0 |
Adjusted EBITDA | $ 2,611 | $ 1,027 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Apr. 30, 2023 USD ($) | |
Subsequent Event | Revolving Credit Facility | Line of Credit | |
Subsequent Event [Line Items] | |
Borrowings under revolving credit facility | $ 750 |