WARNER BROS. DISCOVERY, INC., 10-K filed on 2/27/2026
Annual Report
v3.25.4
COVER PAGE - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2025
Feb. 12, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
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    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 28
Entity Common Stock, Shares Outstanding (in shares)   2,479,929,515  
Documents Incorporated by Reference
Certain information required in Item 10 through Item 14 of Part III of this Annual Report on Form 10-K is incorporated herein by reference to the Registrant’s definitive Proxy Statement for its 2026 Annual Meeting of Stockholders, which shall be filed with the Securities and Exchange Commission pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended.
   
Entity Central Index Key 0001437107    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
Series A Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Series A Common Stock    
Trading Symbol WBD    
Security Exchange Name NASDAQ    
Senior Notes Due 2030, 4.302%      
Document Information [Line Items]      
Title of 12(b) Security 4.302% Senior Notes due 2030    
Trading Symbol WBDI30    
Security Exchange Name NASDAQ    
Senior Notes Due 2033, 4.693%      
Document Information [Line Items]      
Title of 12(b) Security 4.693% Senior Notes due 2033    
Trading Symbol WBDI33    
Security Exchange Name NASDAQ    
v3.25.4
AUDIT INFORMATION
12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Washington, District of Columbia
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues:      
Revenues $ 37,296 $ 39,321 $ 41,321
Costs and expenses:      
Costs of revenues, excluding depreciation and amortization 20,885 22,970 24,526
Selling, general and administrative 9,418 9,296 9,696
Depreciation and amortization 5,684 7,037 7,985
Restructuring and other charges 399 447 585
Impairments and loss on dispositions 172 9,603 77
Total costs and expenses 36,558 49,353 42,869
Operating income (loss) 738 (10,032) (1,548)
Interest expense, net (2,085) (2,017) (2,221)
Gain on extinguishment of debt 2,945 632 17
Loss from equity investees, net (24) (121) (82)
Other income (expense), net 65 150 (29)
Income (loss) before income taxes 1,639 (11,388) (3,863)
Income tax (expense) benefit (890) (94) 784
Net income (loss) 749 (11,482) (3,079)
Net (income) loss attributable to noncontrolling interests (24) 129 (38)
Net loss (income) attributable to redeemable noncontrolling interests 2 42 (9)
Net income (loss) available to Warner Bros. Discovery, Inc. $ 727 $ (11,311) $ (3,126)
Net income (loss) per share available to Warner Bros. Discovery, Inc. Series A common stockholders:      
Basic (in dollars per share) $ 0.29 $ (4.62) $ (1.28)
Diluted (in dollars per share) $ 0.29 $ (4.62) $ (1.28)
Weighted average shares outstanding:      
Basic (in shares) 2,475 2,450 2,436
Diluted (in shares) 2,530 2,450 2,436
Distribution      
Revenues:      
Revenues $ 19,262 $ 19,701 $ 20,237
Advertising      
Revenues:      
Revenues 7,306 8,090 8,700
Content      
Revenues:      
Revenues 9,647 10,297 11,203
Other      
Revenues:      
Revenues $ 1,081 $ 1,233 $ 1,181
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 749 $ (11,482) $ (3,079)
Currency translation      
Change in net unrealized gains (losses) 664 (358) 799
Less: Reclassification adjustment for net losses included in net income 2 49 0
Net change, net of income tax (expense) benefit of $(98), $3 and $30 666 (309) 799
Pension plans, net of income tax benefit (expense) of $8, $5 and $(3) (30) (14) (21)
Derivatives      
Change in net unrealized gains 16 32 16
Less: Reclassification adjustment for net losses (gains) included in net income 8 (35) (12)
Net change, net of income tax (expense) benefit of $(10), $2 and $(2) 24 (3) 4
Comprehensive income (loss) 1,409 (11,808) (2,297)
Comprehensive (income) loss attributable to noncontrolling interests (24) 132 (38)
Comprehensive loss (income) attributable to redeemable noncontrolling interests 2 42 (9)
Comprehensive income (loss) attributable to Warner Bros. Discovery, Inc. $ 1,387 $ (11,634) $ (2,344)
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Income tax benefit (expense), currency translation $ (98) $ 3 $ 30
Income tax benefit (expense) on defined benefit plans 8 5 (3)
Income tax benefit (expense) $ (10) $ 2 $ (2)
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 4,566 $ 5,312
Receivables, net 5,294 4,947
Prepaid expenses and other current assets 3,346 3,819
Total current assets 13,206 14,078
Film and television content rights and games 19,114 19,102
Property and equipment, net 6,685 6,087
Goodwill 25,933 25,667
Intangible assets, net 27,764 32,299
Other noncurrent assets 7,383 7,327
Total assets 100,085 104,560
Current liabilities:    
Accounts payable 1,093 1,055
Accrued liabilities 9,626 10,438
Deferred revenues 1,642 1,569
Current portion of debt 139 2,748
Total current liabilities 12,500 15,810
Noncurrent portion of debt 32,428 36,757
Deferred income taxes 6,383 6,985
Other noncurrent liabilities 11,608 10,070
Total liabilities 62,919 69,622
Commitments and contingencies (See Note 22)
Redeemable noncontrolling interests 19 109
Warner Bros. Discovery, Inc. stockholders’ equity:    
Series A common stock: $0.01 par value; 10,800 and 10,800 shares authorized; 2,710 and 2,684 shares issued; and 2,480 and 2,454 shares outstanding 27 27
Preferred stock: $0.01 par value; 1,200 and 1,200 shares authorized, 0 shares issued and outstanding 0 0
Additional paid-in capital 56,055 55,560
Treasury stock, at cost: 230 and 230 shares (8,244) (8,244)
Accumulated deficit (11,512) (12,239)
Accumulated other comprehensive loss (407) (1,067)
Total Warner Bros. Discovery, Inc. stockholders’ equity 35,919 34,037
Noncontrolling interests 1,228 792
Total equity 37,147 34,829
Total liabilities and equity $ 100,085 $ 104,560
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions
Dec. 31, 2025
Dec. 31, 2024
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) 2,710 2,684
Common stock outstanding (in shares) 2,480 2,454
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
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
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Activities      
Net income (loss) $ 749 $ (11,482) $ (3,079)
Adjustments to reconcile net income to cash provided by operating activities:      
Content rights amortization and impairment 11,855 13,946 16,024
Content restructuring impairments and write-offs 0 165 115
Depreciation and amortization 5,684 7,037 7,985
Deferred income taxes (710) (1,732) (2,344)
Equity in losses of equity method investee companies and cash distributions 75 167 157
Gain on extinguishment of debt (2,945) (632) (17)
Share-based compensation expense 769 557 500
Impairments and loss on dispositions 172 9,603 77
Gain from derivative instruments, net (93) (16) (151)
Gain on sale of investments (4) (227) 0
Other, net 69 115 199
Changes in operating assets and liabilities, net of acquisitions and dispositions:      
Receivables, net (336) 1,012 312
Film and television content rights, games and production payables, net (11,401) (12,349) (12,305)
Accounts payable, accrued liabilities, deferred revenues and other noncurrent liabilities 108 (529) (820)
Foreign currency, prepaid expenses and other assets, net 327 (260) 824
Cash provided by operating activities 4,319 5,375 7,477
Investing Activities      
Purchases of property and equipment (1,231) (948) (1,316)
Cash used for business acquisitions 0 0 (50)
Investments in and advances to equity investments (100) (109) (112)
Proceeds from sales and maturities of investments 54 541 0
Proceeds from derivative instruments, net 26 136 121
Other investing activities, net 72 31 98
Cash used in investing activities (1,179) (349) (1,259)
Financing Activities      
Principal repayments of term loans 0 0 (4,000)
Principal repayments of debt, including premiums and discounts to par value (22,664) (5,043) (2,860)
Borrowings from debt, net of discount and issuance costs 18,306 1,617 1,496
Distributions to noncontrolling interests and redeemable noncontrolling interests (198) (193) (301)
Purchase of redeemable noncontrolling interest 0 0 (49)
Proceeds for noncontrolling interest in joint venture 633 0 0
Borrowings under commercial paper program and revolving credit facility 4,228 14,203 5,207
Repayments under commercial paper program and revolving credit facility (4,228) (14,203) (5,214)
Principal repayments of finance and other lease obligations 202 142 132
Other financing activities, net (115) 12 16
Cash used in financing activities (4,240) (3,749) (5,837)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 254 (180) 8
Net change in cash, cash equivalents, and restricted cash (846) 1,097 389
Cash, cash equivalents, and restricted cash, beginning of period 5,416 4,319 3,930
Cash, cash equivalents, and restricted cash, end of period $ 4,570 $ 5,416 $ 4,319
v3.25.4
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Warner Bros. Discovery, Inc.  Stockholders’ Equity
Common Stock
Additional Paid-In Capital
Treasury Stock
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Loss
Noncontrolling Interests
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 [Roll Forward]                
Net (loss) income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests (3,088) (3,126)       (3,126)   38
Other comprehensive income (loss) 782 782         782  
Share-based compensation 452 452   452        
Reclassification of redeemable noncontrolling interest to noncontrolling interest and change in noncontrolling interest ownership (See Note 19) 62 2   2       60
Tax settlements associated with share-based plans (70) (70)   (70)        
Redemption of redeemable noncontrolling interest 73 73   73        
Dividends paid to noncontrolling interests (271)             (271)
Issuance of stock in connection with share-based plans (in shares)     9          
Issuance of stock in connection with share-based plans 26 26   26        
Redeemable noncontrolling interest adjustments to redemption value (4) (4)   1   (5)    
Other adjustments to stockholders' equity (4) (4)   (2)   (2)    
Ending balance (in shares) at Dec. 31, 2023     2,669          
Ending balance at Dec. 31, 2023 46,307 45,226 $ 27 55,112 (8,244) (928) (741) 1,081
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net (loss) income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests (11,440) (11,311)       (11,311)   (129)
Other comprehensive income (loss) (329) (326)         (326) (3)
Share-based compensation 497 497   497        
Tax settlements associated with share-based plans (71) (71)   (71)        
Dividends paid to noncontrolling interests (157)             (157)
Issuance of stock in connection with share-based plans (in shares)     15          
Issuance of stock in connection with share-based plans 43 43   43        
Redeemable noncontrolling interest adjustments to redemption value $ (21) (21)   (21)        
Ending balance (in shares) at Dec. 31, 2024 2,454   2,684          
Ending balance at Dec. 31, 2024 $ 34,829 34,037 $ 27 55,560 (8,244) (12,239) (1,067) 792
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net (loss) income available to Warner Bros. Discovery, Inc. and attributable to noncontrolling interests 751 727       727   24
Other comprehensive income (loss) 660 660         660  
Share-based compensation 629 629   629        
Tax settlements associated with share-based plans (146) (146)   (146)        
Dividends paid to noncontrolling interests (185)             (185)
Issuance of stock in connection with share-based plans (in shares)     26          
Issuance of stock in connection with share-based plans 23 23   23        
Redeemable noncontrolling interest adjustments to redemption value 2 2   2        
Reclassification associated with the expiration of put rights 74             74
Formation of music catalog joint venture and other joint ventures 633 (13)   (13)       646
Tax gain on formation of music catalog joint venture $ (123)             (123)
Ending balance (in shares) at Dec. 31, 2025 2,480   2,710          
Ending balance at Dec. 31, 2025 $ 37,147 $ 35,919 $ 27 $ 56,055 $ (8,244) $ (11,512) $ (407) $ 1,228
v3.25.4
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of Business
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes a differentiated and comprehensive portfolio of content and products across television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products through brands including: Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Games, Adult Swim, Turner Classic Movies, and others.
In the first quarter of 2025, the Company renamed its DTC reportable segment to Streaming and its Networks reportable segment to Global Linear Networks.
In June 2025, the Company announced its plans to separate the Company into two publicly traded companies, Warner Bros. and Discovery Global, and in October 2025, the Company announced that the board of directors would evaluate a broad range of strategic options, including continuing to advance the separation of the Company, a transaction for the entire company or separate transactions for Warner Bros. and/or Discovery Global, as well as an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global.
Termination of Netflix Merger
In January 2026, the Company entered into an amended and restated agreement and plan of merger, by and among the Company, Netflix, Inc. (“Netflix”), Nightingale Sub, Inc., a wholly owned subsidiary of Netflix, and New Topco 25, Inc., a wholly owned subsidiary of WBD (the “Netflix Merger Agreement”), under which Netflix would have acquired the Streaming and Studios segments (subject to certain deviations) and certain other assets and liabilities, including the Company’s film and television studios, HBO Max, and HBO, following the separation and distribution of Discovery Global to the Company’s stockholders (the “Separation Transaction”).
Following the board of directors’ determination that it had received a “Company Superior Proposal,” as defined in the Netflix Merger Agreement, from Paramount Skydance Corporation (“PSKY”) and Netflix’s waiver of its right to propose revisions to the Netflix Merger Agreement, on February 27, 2026, in accordance with the terms of the Netflix Merger Agreement, the Company terminated the Netflix Merger Agreement in connection with entering into the PSKY Merger Agreement (as defined below). In connection with the termination of the Netflix Merger Agreement, PSKY, on behalf of the Company, paid Netflix a termination fee of $2.8 billion in cash (the “Netflix Termination Fee”) as required by the terms of the Netflix Merger Agreement.
PSKY Merger
On February 27, 2026, the Company entered into an agreement and plan of merger, by and among the Company, PSKY and Prince Sub Inc., a wholly owned subsidiary of PSKY (“Merger Sub”) (as may be amended from time to time, the “PSKY Merger Agreement”), pursuant to which and subject to the terms and conditions therein, at the effective time, Merger Sub will merge with and into WBD, with WBD surviving as a wholly owned subsidiary of PSKY (the “PSKY Merger”).
Upon completion of the PSKY Merger, each issued and outstanding share of WBD common stock (subject to certain exceptions) will be converted into the right to receive an amount in cash equal to $31.00, without interest, plus, if the closing date of the PSKY Merger occurs after September 30, 2026, the Ticking Consideration (the “Merger Consideration”).The “Ticking Consideration” will be an amount in cash equal to $0.00277778 multiplied by the number of calendar days elapsed after September 30, 2026 to and including the closing date (which, for the avoidance of doubt, will not exceed $0.25 per 90 calendar day period).
Concurrently with the execution of the PSKY Merger Agreement, Larry J. Ellison and an associated trust entered into a guarantee in favor of WBD to, among other things, jointly and severally guarantee certain payments by PSKY under the PSKY Merger Agreement, including $45.72 billion of the Merger Consideration, and assist WBD with the consummation of the PSKY Merger.
The completion of the PSKY Merger is subject to the receipt of required regulatory approvals, the approval of WBD shareholders, and other customary closing conditions. In addition, PSKY’s obligation to consummate the PSKY Merger is subject to WBD not having completed the separation of its Streaming & Studios business from its Global Linear Networks business nor having declared or made any dividend to WBD’s stockholders to effectuate the separation. There can be no assurance that the PSKY Merger will occur in accordance with the expected plans or anticipated timeline, or at all.
The PSKY Merger Agreement contains certain customary termination rights for WBD and PSKY, including, without limitation, a right for either party to terminate if the PSKY Merger is not completed on or before March 4, 2027, subject to an extension to June 4, 2027 specified in the PSKY Merger Agreement. Termination under specified circumstances will require WBD to pay PSKY a termination fee of $3.0 billion and reimburse PSKY for (i) any payment made by PSKY, which will in no event be more than $1,528 million, in connection with WBD’s obligation to complete the Junior Lien Exchange Offer by December 30, 2026 and (ii) the Netflix Termination Fee, or PSKY to pay WBD a termination fee of $7.0 billion.
Reportable Segments
There have been no changes to the Company’s reportable segments or the composition of the Company’s reportable segments as a result of these actions. Any differences in the composition of our reportable segments as a result of the previously proposed Separation Transaction have not been reflected as our chief operating decision maker (“CODM”), the Chief Executive Officer (“CEO”), has not implemented any corresponding changes to the way our business was managed through December 31, 2025.
As of December 31, 2025, we classified our operations in three reportable segments:
Streaming - Our Streaming segment primarily consists of our premium pay-TV and streaming services.
Studios - Our Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and our networks/streaming services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming.
Global Linear Networks - Our Global Linear Networks segment primarily consists of our domestic and international television networks.
Our segment presentation aligns with our management structure and the financial information management uses to make decisions about operating matters, such as the allocation of resources and business performance assessments.
Labor Disruption
The WGA and SAG-AFTRA went on strike in May and July 2023, respectively, following the expiration of their respective collective bargaining agreements with the AMPTP. The WGA strike ended on September 27, 2023, and a new collective bargaining agreement was ratified on October 9, 2023. The SAG-AFTRA strike ended on November 9, 2023, and a new collective bargaining agreement was ratified on December 5, 2023. As a result of the strikes, we paused certain theatrical and television productions, which resulted in delayed production spending amongst other impacts.
The strikes had a material impact on the operations and results of the Company in 2023. This included a positive impact on cash flow from operations attributed to delayed production spend, and a negative impact on the results of operations attributed to timing and performance of the 2023 film slate, as well as the Company’s ability to produce, license, and deliver content. The Company experienced content completion and delivery delays in the first quarter of 2024 due to the pause in television and theatrical productions in 2023, but did not experience any material impacts for the remainder of 2024.
Basis 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. For each non-wholly owned subsidiary, the Company evaluates its ownership and other interests to determine whether it should consolidate the entity or account for its ownership interest as an unconsolidated investment. As part of its evaluation, the Company makes judgments in determining whether the entity is a VIE and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 10.) If it is concluded that an entity is not a VIE, then the Company considers its proportional voting interests in the entity. The Company consolidates majority-owned subsidiaries in which a controlling financial interest is maintained. A controlling financial interest is determined by majority ownership and the absence of significant third-party participating rights. Ownership interests in entities for which the Company has significant influence that are not consolidated are accounted for as equity method investments.
Intercompany accounts and transactions between consolidated entities have been eliminated.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates.
Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, the determination of ultimate revenues as they relate to amortization of capitalized content rights and accruals of participations and residuals, business combinations, share-based compensation, income taxes, other financial instruments, contingencies, estimated defined benefit plan liabilities, and the determination of whether the Company should consolidate certain entities.
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Foreign Currency
The reporting currency of the Company is the U.S. dollar. Financial statements of subsidiaries whose functional currency is not the U.S. dollar are translated at exchange rates in effect at the balance sheet date for assets and liabilities and at average exchange rates for revenues and expenses for the respective periods. Translation adjustments are recorded in accumulated other comprehensive loss. Cash flows from the Company’s operations in foreign countries are generally translated at the weighted average rate for the respective periods.
The Company is exposed to foreign currency risk to the extent that it enters into transactions denominated in currencies other than its subsidiaries’ respective functional currencies. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Such transactions include affiliate and ad sales arrangements, content licensing arrangements, equipment and other vendor purchases and intercompany transactions. Changes in exchange rates with respect to amounts recorded in the Company’s consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses resulting from the conversion of the transaction currency to functional currency are included in other income (expense), net.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of 90 days or less.
Receivables
The Company’s accounts receivable balances and the related credit losses arise primarily from distribution, advertising and content revenue. Receivables include amounts billed and currently due from customers and are presented net of an estimate for credit losses. To assess collectability, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks, and records a provision for estimated credit losses expected over the lifetime of receivables. The corresponding expense for the expected credit losses is reflected in selling, general and administrative expenses. The Company does not require collateral with respect to trade receivables.
Revolving Receivables Program
The Company has a revolving agreement to transfer up to $5,000 million of certain receivables through its bankruptcy-remote subsidiary, Warner Bros. Discovery Receivables Funding, LLC, to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. The Company services the sold receivables for the financial institution for a fee and pays fees to the financial institution in connection with this revolving agreement. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, the Company’s available capacity under this revolving agreement increases and typically the Company transfers additional receivables into the program.
The Company derecognizes receivables by the amount of the gross value of the proceeds received and the obligations assumed are recorded at fair value. Cash received is reflected as cash provided by operating activities in the consolidated statements of cash flows. The obligations assumed when proceeds are received relate to expected credit losses on sold receivables and estimated fee payments made on outstanding sold receivables already transferred. The obligations are subsequently adjusted for changes in estimated expected credit losses and interest rates, which are considered Level 3 fair value measurements since the inputs are unobservable (See Note 8). In some cases, the Company may have collections that have not yet been remitted to the bank, resulting in a liability. Increases to accounts payable related to program costs and subsequent payments are reported as financing activities in the consolidated statements of cash flows.
Accounts Receivable Factoring
The Company has factoring agreements to sell certain of its non-U.S. trade accounts receivable on a limited recourse basis to a third-party financial institution. The Company accounts for these transactions as sales in accordance with ASC 860, “Transfers and Servicing”, as its continuing involvement subsequent to the transfer is limited to providing certain servicing and collection actions on behalf of the purchaser of the designated trade accounts receivable. Proceeds from amounts factored are recorded as an increase to cash and cash equivalents and a reduction to receivables, net in the consolidated balance sheets. Cash received is also reflected as cash provided by operating activities in the consolidated statements of cash flows. The accounts receivable factoring programs are separate and distinct from the revolving receivables program.
Film and Television Content Rights and Games
The Company capitalizes costs to produce television programs and feature films, including direct production costs, production overhead, interest, acquisition costs and development costs, as well as advances for live programming rights, such as sports. Costs to acquire licensed television series and feature film programming rights are capitalized when the license period has begun and the program is accepted and available for airing. Production incentives received from various jurisdictions where the Company produces content and co-financing partner contributions are recorded as reductions to capitalized production costs. All capitalized content and prepaid license fees are classified as noncurrent assets, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months.
The Company groups its film and television content rights by monetization strategy: content that is predominantly monetized individually and content that is predominantly monetized as a group.
Content Monetized Individually
For films and television programs predominantly monetized individually, the amount of capitalized film and television production costs (net of incentives and co-financing partner contributions) amortized and the amount of participations and residuals to be recognized as expense in a particular period are determined using the individual film forecast method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals are based on the proportion of the film’s or television program’s revenues recognized for such period to the film’s or television program’s estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film’s or television program’s remaining life cycle).
The process of estimating ultimate revenues requires us to make a series of judgments related to future revenue-generating activities associated with a particular film. Prior to the theatrical release of a film, the Company’s estimates are based on factors such as the historical performance of similar films, the star power of the lead actors, the rating and genre of the film, pre-release market research (including test market screenings), international distribution plans, and the expected number of theaters in which the film will be released. Subsequent to release, ultimate revenues are updated to reflect initial performance, which is often predictive of future performance. For television programs that are monetized on an individual basis, ultimate revenues are estimated based on factors including the performance of similar programs in each applicable market, firm commitments in hand from customers that license the program in the future, and the popularity of the program in its initial markets. For a film or television program that is predominantly monetized on its own but also monetized with other films and/or programs (such as on the Company’s streaming or linear services), the Company makes a reasonable estimate of the value attributable to the film or program’s exploitation while monetized with other films/programs, based on relative market rates, and expenses such costs as the film or television program is exhibited. For theatrical films, the period over which ultimate revenues from all applicable sources and exhibition windows are estimated does not exceed 10 years from the date of the film’s initial release. For television programs, the ultimate period does not exceed 10 years from delivery of the first episode, or, if still in production, five years from delivery of the most recent episode, if later. For games, the ultimate period does not exceed two years from the date of the game’s initial release. Ultimates for produced content monetized on an individual basis are reviewed and updated (as applicable) on a quarterly basis; any adjustments are applied prospectively as of the beginning of the fiscal year of the change.
Content Monetized as a Group
For programs monetized as a group, including licensed programming, the Company’s film groups are generally aligned along the Company’s networks and digital content service offerings, except for certain international territories wherein content assets are grouped by genre or territory. Adjustments for projected usage are applied prospectively in the period of the change. Participations and residuals are generally expensed in line with the pattern of usage. Streaming content and premium pay-TV amortization for each period is recognized based on estimated viewing patterns as there are generally little to no direct revenues to associate to the individual content assets. As such, viewership is most representative of the use of the title. Licensed rights to film and television programming are typically amortized over the useful life of the program’s license period on a straight-line or accelerated basis. The Company allocates the cost of multi-year sports programming arrangements over the contract period to each event or season based on its projected advertising revenue and an allocation of distribution revenue (estimated relative value). If annual contractual payments related to each season approximate each season’s estimated relative value, the Company expenses the related contractual payments during the applicable season. Amortization of sports rights takes place when the content airs.
Annually, the Company prepares analyses to support its content amortization expense, and performs quarterly reviews to ensure no changes are required. Critical assumptions used in determining content amortization for programming predominantly monetized as a group include: (i) the grouping of content with similar characteristics, (ii) the application of a quantitative revenue forecast model or historical viewership model based on the adequacy of historical data, and (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the forecast model. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of subscribers receiving the Company’s networks, the number of subscribers to its streaming services, and program usage. Accordingly, the Company reviews its estimates and planned usage at least quarterly and revises its assumptions if necessary. Any material adjustments from the Company’s review of the amortization rates for assets in film groups are applied prospectively in the period of the change.
Unamortized Film Costs Impairment Assessment
Unamortized film costs are tested for impairment whenever events or changes in circumstances indicate that the fair value of a film (or television program) predominantly monetized on its own, or a film group, may be less than its unamortized costs. In addition, a change in the predominant monetization strategy is considered a triggering event for impairment testing before a title is accounted for as part of a film group. If the carrying value of an individual feature film or television program, or film group, exceeds the estimated fair value, an impairment charge will be recorded in the amount of the difference. For content that is predominantly monetized individually, the Company utilizes estimates including ultimate revenues and additional costs to be incurred (including exploitation and participation costs), in order to determine whether the carrying value of a film or television program is impaired.
Game Development Costs
Game development costs are expensed as incurred before the applicable game reaches technological feasibility, or for online hosted arrangements, before the preliminary project phase is complete and it becomes probable that the project will be completed and the software will be used to perform the function intended. Commencing upon a title’s release, the capitalized game development costs are amortized based on the proportion of the game’s revenues recognized for such period to the game’s total current and anticipated revenues, or, if greater, for non-hosted games, on a straight-line basis over the title’s estimated economic life. Unamortized capitalized game production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in “Film and television content rights and games” on the consolidated balance sheets.
Investments
The Company holds investments in equity method investees and equity investments with and without readily determinable fair values. (See Note 10.)
Equity Method Investments
Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary or the entity is not a VIE and the Company does not have a controlling financial interest. Under this method of accounting, the Company typically records its proportionate share of the net earnings or losses of equity method investees in loss from equity investees, net and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances.
The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. (See “Asset Impairment Analysis” below.)
Equity Investments with Readily Determinable Fair Values
Investments in entities or other securities in which the Company has no control or significant influence and is not the primary beneficiary, and have a readily determinable fair value are recorded at fair value based on quoted market prices and are classified as equity securities or equity investments with readily determinable fair value. The investments are measured at fair value based on a quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs (Level 1). Gains and losses are recorded in other income (expense), net on the consolidated statements of operations. (See Note 10 and Note 18.)
Equity Investments without Readily Determinable Fair Values
Equity investments without readily determinable fair values include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. Equity investments without readily determinable fair values are recorded at cost and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. Adjustments for observable price changes are recorded in other income (expense), net. (See Note 10 and Note 18.)
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and impairments. Internal use software costs are capitalized during the application development stage; software costs incurred during the preliminary project and post implementation stages are expensed as incurred. Repairs and maintenance expenditures that do not enhance the use or extend the life of property and equipment are expensed as incurred. Depreciation for most property and equipment is recognized using the straight-line method over the estimated useful lives of the assets. (See Note 18.)
Leases
The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets are included in other noncurrent assets. Finance lease ROU assets are included in property and equipment, net. Operating and finance lease liabilities are included in accrued liabilities and other noncurrent liabilities in the consolidated balance sheets. The Company elected the short-term lease recognition exemption and leases with initial terms of one year or less are not recorded in the consolidated balance sheets.
A rate implicit in the lease when readily determinable is used in arriving at the present value of lease payments. As most of the Company’s leases do not provide sufficient information to determine an implicit rate, the Company uses an incremental borrowing rate based on information available at lease commencement date for most of its leases. The incremental borrowing rate is based on the Company's U.S. dollar denominated senior unsecured borrowing curves using public credit ratings adjusted down to a collateralized basis using a combination of recovery rate and credit notching approaches and translated into major contract currencies as applicable.
The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. The Company does not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. In addition, variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. Lease expense for operating leases and short-term leases is recognized on a straight-line basis. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis.
Defined Benefit Plans
The Company participates in and/or sponsors a qualified defined benefit pension plan that covers certain U.S. based employees and several U.S. and non-U.S. defined benefit pension plans that are noncontributory. Defined benefit plan obligations are based on various assumptions used by the Company’s actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations.
Asset Impairment Analysis
Goodwill
Goodwill is allocated to the Company’s reporting units, which are its operating segments or one level below its operating segments. The Company evaluates goodwill for impairment annually as of October 1, or earlier if an event or other circumstance indicates that it may not recover the carrying value of the asset. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required. If a qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its fair value, a quantitative impairment test is performed. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recorded for the amount by which the carrying amount exceeds the fair value, not to exceed the amount of goodwill recorded for that reporting unit. The Company typically performs a quantitative impairment test at least every three years, irrespective of the outcome of the Company’s qualitative assessment.
Long-lived Assets
Long-lived assets such as amortizing trademarks and trade names; affiliate, advertising, and subscriber relationships; franchises and other intangible assets; lease ROU assets; and property and equipment are not required to be tested for impairment annually, but rather whenever circumstances indicate that the carrying amount of the asset may not be recoverable. If an impairment analysis is required, the impairment test employed is based on whether the Company’s intent is to hold the asset for continued use or to hold the asset for sale.
If the intent is to hold the asset for continued use, the impairment test requires a comparison of undiscounted future cash flows to the carrying value of the asset group. If the carrying value of the asset group exceeds the undiscounted cash flows, an impairment loss would be recognized equal to the excess of the asset group’s carrying value over its fair value, which is typically determined by discounting the future cash flows associated with that asset group.
If the intent is to hold the asset for sale and certain other criteria are met, the impairment test involves comparing the asset’s carrying value to its estimated fair value less costs to sell. If the carrying value of the asset exceeds the fair value, an impairment loss would be recognized equal to the difference.
Significant judgments used for long-lived asset impairment assessments include identifying the appropriate asset groupings that represent the lowest level for which cash flows are largely independent and primary assets within those groupings, determining whether events or circumstances indicate that the carrying amount of the asset may not be recoverable, determining the future cash flows for the assets involved and assumptions applied in determining fair value, which include reasonable discount rates, growth rates, market risk premiums and other assumptions about the economic environment.
Equity Method Investments and Equity Investments Without Readily Determinable Fair Value
Equity method investments are reviewed for indicators of other-than-temporary impairment on a quarterly basis and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. The estimation of fair value and whether an other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. If declines in the value of the equity method investments are determined to be other-than-temporary, a loss is recorded in earnings in the current period as a component of loss from equity investees, net on the consolidated statements of operations.
For equity investments without readily determinable fair value, investments are recorded at cost and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. The Company performs a qualitative assessment on a quarterly basis to determine if any observable price changes have occurred. If the qualitative assessment indicates that an observable price change has occurred, a gain or loss is recorded equal to the difference between the fair value and carrying value in the current period as a component of other income (expense), net. (See Note 10.)
Derivative Instruments
The Company uses derivative financial instruments to mitigate its exposure to market risks from changes in foreign currency exchange rates, interest rates, and from market volatility related to certain investments measured at fair value. At the inception of a derivative contract, the Company designates the derivative based on the Company’s intentions and expectations as to the likely effectiveness as a hedge (see Note 13), as follows:
a hedge of a forecasted transaction or the exposure to variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”);
a hedge of the foreign currency exposure from net investments in foreign operations (“net investment hedge”);
a hedge of the exposure to changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); or
an instrument with no hedging designation.
Cash Flow Hedges
The Company may designate derivative instruments as cash flow hedges to mitigate foreign currency risk arising from third-party revenue agreements, intercompany licensing agreements, production expenses and rebates, or to hedge the interest rate risk for certain senior notes and forecasted debt issuances. For instruments accounted for as cash flow hedges, the change in the fair value of the forward contract is recorded in other comprehensive income (loss) and reclassified into the statements of operations in the same line item in which the hedged item is recorded and in the same period as the hedged item affects earnings.
Net Investment Hedges
The Company may designate derivative instruments as hedges of net investments in foreign operations. The Company assesses the effectiveness of net investment hedges utilizing the spot-method. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded in the currency translation adjustment component of other comprehensive loss. While the change in fair value attributable to hedge effectiveness remains in accumulated other comprehensive loss until the net investment is sold or liquidated, the change in fair value attributable to components excluded from the assessment of hedge effectiveness (e.g., forward points, cross currency basis, etc.) is reflected as a component of interest expense, net in the current period.
Fair Value Hedges
The Company may designate derivative instruments as fair value hedges to mitigate the variability in the fair value of a recognized asset or liability or of an unrecognized firm commitment. For those derivative instruments designated as fair value hedges, the changes in fair value of the derivative instruments, including offsetting changes in fair value of the hedged items are recorded in the statements of operations in the same line item where the hedged risk occurs.
No Hedging Designation
The Company may also enter into derivative instruments that do not qualify for hedge accounting or are not designated as hedges. These instruments are intended to mitigate economic exposures due to exogenous events and changes in foreign currency exchange rates, interest rates, and from market volatility related to certain investments measured at fair value. The changes in fair value of derivatives not designated as hedges are recorded in the statements of operations in the same line item where the risk occurs.
Financial Statement Presentation
Unsettled derivative contracts are recorded at their gross fair values on the consolidated balance sheets. The portion of the fair value that represents cash flows occurring within one year is classified as current, and the portion related to cash flows occurring beyond one year is classified as noncurrent.
Cash flows from designated derivative instruments used as hedges are classified in the consolidated statements of cash flows in the same section as the cash flows of the hedged item. Cash flows from periodic settlement of interest on cross currency swaps and derivative contracts not designated as hedges are reported as investing activities in the consolidated statements of cash flows.
Treasury Stock
When stock is acquired for purposes other than formal or constructive retirement, the purchase price of the acquired stock is recorded in a separate treasury stock account, which is separately reported as a reduction of equity.
When stock is retired or purchased for formal or constructive retirement, the purchase price is initially recorded as a reduction to the par value of the shares repurchased, with any excess purchase price over par value recorded as a reduction to additional paid-in capital related to the series of shares repurchased and any remaining excess purchase price recorded as a reduction to retained earnings. If the purchase price exceeds the amounts allocated to par value and additional paid-in capital related to the series of shares repurchased and retained earnings, the remainder is allocated to additional paid-in capital related to other series of shares.
To determine the cost of treasury stock that is either sold or reissued, the Company uses the last in, first out method. If the proceeds from the re-issuance of treasury stock are greater than the cost, the excess is recorded as additional paid-in capital. If the proceeds from re-issuance of treasury stock are less than the cost, the excess cost first reduces any additional paid-in capital arising from previous treasury stock transactions for that class of stock, and any additional excess is recorded as a reduction of retained earnings.
Revenue Recognition
Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. However, certain revenues include taxes that customers pay to taxing authorities on the Company’s behalf, such as foreign withholding tax. Revenue recognition for each source of revenue is also based on the following policies.
Advertising
Advertising revenues are principally generated from the sale of commercial time on linear (television networks and authenticated TVE applications) and digital platforms (DTC streaming subscription services and websites). A substantial portion of the linear and digital advertising contracts in the U.S. and certain international markets guarantee the advertiser a minimum audience level that either the program in which their advertisements are aired or the advertisement will reach. On the linear platform, the Company provides a service to deliver an advertising campaign which is satisfied by the provision of a minimum number of advertising spots in exchange for a fixed fee over a contract period of one year or less. The Company delivers spots in accordance with these contracts during a variety of day parts and programs. In the agreements governing these advertising campaigns, the Company has also promised to deliver to its customers a guaranteed minimum number of viewers (“impressions”) on a specific television network within a particular demographic (e.g. men aged 18-35). These advertising campaigns are considered to represent a single, distinct performance obligation. Revenues are recognized based on the guaranteed audience level multiplied by the average price per impression. The Company provides the advertiser with advertising until the guaranteed audience level is delivered, and invoiced advertising revenue receivables may exceed the value of the audience delivery. As such, revenues are deferred until the guaranteed audience level is delivered or the rights associated with the guarantee lapse, which is typically less than one year. Audience guarantees are initially developed internally, based on planned programming, historical audience levels, the success of pilot programs, and market trends. Actual audience and delivery information is published by independent ratings services.
For digital advertising contracts, advertising revenues are recognized as the advertising impressions are delivered. Each impression is considered a distinct, individual performance obligation. The Company allocates the consideration to each impression based on its relative standalone selling price.
Distribution
Distribution revenues are generated from fees charged to distributors, which include cable, direct-to-home (“DTH”) satellite, telecommunications and digital service providers, and DTC subscribers. Distributors typically pay royalties via a per-subscriber fee for the right to distribute the Company’s programming under the terms of distribution contracts. The majority of the Company’s distribution fees are collected monthly throughout the year and distribution revenue is recognized over the term of the contracts based on contracted programming rates and reported subscriber levels. The amount of distribution fees due to the Company is reported by distributors based on actual subscriber levels. Such information is generally not received until after the close of the reporting period. In these cases, the Company estimates the number of subscribers receiving the Company’s programming to estimate royalty revenue. Historical adjustments to recorded estimates have not been material. Distribution revenue from fixed-fee contracts is recognized over the contract term based on the continuous delivery of the content to the affiliate. Any monetary incentives provided to distributors other than for distinct goods or services acquired at fair value are recognized as a reduction of revenue over the term.
Although the delivery of linear feeds and digital products, such as video-on-demand (“VOD”) and authenticated TVE applications, are considered distinct performance obligations within a distribution arrangement, on-demand offerings generally match the programs that are airing on the linear network. Therefore, the Company recognizes revenue for licensing arrangements as the license fee is earned and based on continuous delivery for fixed fee contracts.
Revenues associated with digital distribution arrangements are recognized when the Company transfers control of the programming or service to the customer.
For DTC streaming subscription services, the Company recognizes revenue as the service fee is earned over the subscription period.
When linear and DTC distribution arrangements are offered in a bundle deal, consideration is allocated to each deliverable based on its relative standalone selling price, and revenue is recognized as described above.
Content
Content revenues are generated from the release of feature films for initial exhibition in theaters, production of programs licensed for initial television/SVOD exhibition, the additional licensing of feature films and television programs to various television, SVOD and other digital markets, distribution of feature films and television programs in the physical and digital home entertainment market, sales of console games and mobile in-game content, sublicensing of sports rights, and licensing of intellectual property such as characters and brands.
In general, fixed payments for the licensing of intellectual property are recognized as revenue at either the inception of the license term or as sales-based royalties as underlying sales occur if the intellectual property has significant standalone functionality (“functional IP,” such as a produced film or television series), or over the corresponding license term if the licensee’s ability to derive utility is dependent upon our continued support of the intellectual property throughout the license term (“symbolic IP,” such as a character or a brand). Feature films may be produced or acquired for initial exhibition in theaters or direct release on our streaming service. Arrangements with theaters for exhibiting a film over a certain period are generally sales-based royalties and recorded as revenue as the underlying sales of the exhibitors occur.
Television programs are initially produced for broadcast networks, cable networks, premium pay services, first-run syndication or streaming services; revenues are recognized when the programs are available for use by the licensee. Fixed license fee revenues from the subsequent licensing of feature films and television programs in the off-network cable, premium pay, syndication, streaming and international television and streaming markets are also recognized upon availability of the content for use by the licensee. For television/streaming service licenses that include multiple titles with a fixed license fee across all titles, the availability of each title is considered a separate performance obligation, and the fixed fee is allocated to each title based on its estimated relative standalone selling price and recognized as revenue when the title is available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. Certain arrangements (e.g., certain pay-TV/SVOD licenses) may include variable license fees that are based on sales of the licensee; these are recognized as revenue as the applicable underlying sales occur.
Revenues from home entertainment sales of feature films and television programs in physical format are generally recognized at the later of the delivery date or the date when made widely available for sale or rental by retailers (“street date”) based on gross sales less a provision for estimated returns, rebates and pricing allowances. The provision is based on management’s estimates by analyzing vendor sales of our product, historical return trends, current economic conditions and changes in customer demand. Revenues from the licensing of television programs and films for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream.
Revenues from sales of console games generally follow the same recognition methods as film and television programs in the home entertainment market. Revenues from digital sales of in-game purchases are assessed for deferral based on type of digital item purchased (e.g., consumable vs. durable) and estimated life of consumer game play and recognized upon purchase or over time as applicable.
Revenues from the licensing of intellectual property such as characters or brands (e.g., for merchandising or theme parks) are
recognized either straight-line over the license term or as the licensee’s underlying product sales occur (sales-based royalty) depending on which method is most reflective of the earnings process.
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration and that right is conditioned upon something other than the passage of time. A contract liability, such as deferred revenue, is recorded when the Company has recorded billings in conjunction with its contractual right or when cash is received in advance of the Company’s performance.
Deferred revenue primarily consists of TV/SVOD content licensing arrangements where the content has not yet been made available to the customer, consumer products and themed experience licensing arrangements with fixed payments, advance payment for DTC streaming subscriptions, and cash billed/received for television advertising in advance or for which the guaranteed viewership has not been provided. The amounts classified as current are expected to be earned within the next year.
Payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer.
Share-Based Compensation Expense
The Company has incentive plans under which performance-based restricted stock units (“PRSUs”), service-based restricted stock units (“RSUs”), and stock options may be issued. In addition, the Company offers an Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense for all awards is recorded as a component of selling, general and administrative expense. Forfeitures for all awards are recognized as incurred. Excess tax benefits realized from the exercise of stock options and vested RSUs, PRSUs and the ESPP are reported as cash inflows from operating activities on the consolidated statements of cash flows.
PRSUs
PRSUs represent the contingent right to receive shares of WBD common stock, and typically vest over one to three years based on continuous service and the attainment of qualitative and quantitative performance targets. The number of PRSUs that vest typically ranges from 0% to 300% based on a sliding scale where achieving or exceeding the performance target will result in 100% to 300% of the PRSUs vesting and achieving 70% or less of the target will result in no portion of the PRSUs vesting. Additionally, for certain PRSUs, the Company’s Compensation Committee has discretion in determining the final number of units that vest, but may not increase the amount of any PRSU award above 100%. Upon vesting, each PRSU becomes convertible into one share of WBD common stock. Holders of PRSUs do not receive payments of dividends in the event the Company pays a cash dividend until such PRSUs are converted into shares of WBD common stock.
Compensation expense for PRSUs is based on the fair value of WBD common stock on the date of grant. Compensation expense for PRSUs that vest based on achieving subjective operating performance conditions or in situations where the employee may withhold taxes in excess of the maximum statutory requirement, is remeasured at fair value each reporting period until the award is settled. Compensation expense for all PRSUs is recognized ratably over the vesting period only when it is probable that the operating performance conditions will be achieved. The Company records a cumulative adjustment to compensation expense for PRSUs if there is a change in the determination of the probability that the operating performance conditions will be achieved.
RSUs
RSUs represent the contingent right to receive shares of WBD common stock, substantially all of which vest ratably each year over periods of three to five years based on continuous service. Compensation expense for RSUs is based on the fair value of the award on the date of grant and is recognized ratably during the vesting period. RSU awards generally provide for accelerated vesting upon termination from the Company if the employee has reached a specified age and years of service and if the grant has been held at least six months from the grant date.
Stock Options
Stock options are granted with an exercise price equal to or in excess of the closing market price of WBD common stock on the date of grant and vest ratably over three to five years from the grant date based on continuous service and expire seven years from the date of grant. In 2025, certain stock options were granted that vest upon achievement of a market condition in addition to a time-based vesting requirement. Compensation expense for stock options is based on the fair value of the award on the date of grant and is recognized ratably during the vesting period. Stock options generally provide for accelerated vesting upon termination from the Company if the employee has reached a specified age and years of service and if the grant has been held at least six months from the grant date.
The fair value of stock options that have time-based vesting requirements is estimated using the Black-Scholes option-pricing model, and the fair value of stock options that have a market condition is estimated using a Monte Carlo simulation. Because the Black-Scholes option-pricing model and the Monte Carlo simulation require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of awards. For stock options valued using the Black-Scholes option-pricing model, the simplified method is utilized to calculate the expected term, since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The simplified method considers the period from the date of grant through the mid-point between the vesting date and the end of the contractual term of the award. For stock options valued using the Monte Carlo simulation, the expected term represents the time period covered by the market condition. Expected volatility is based on a combination of implied volatilities from traded options on WBD common stock and historical realized volatility of WBD and peer group common stock. The dividend yield is assumed to be zero because the Company has no history of paying cash dividends and no present intention to pay dividends. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the award.
ESPP
The ESPP enables eligible employees to purchase shares of WBD common stock through payroll deductions or other permitted means. The Company recognizes the fair value of the discount associated with shares purchased under the ESPP as share-based compensation expense.
Advertising Costs
Advertising costs are expensed as incurred and are presented in selling, general and administrative expenses. Third-party advertising costs were $2,104 million, $2,152 million and $2,428 million for years ended December 31, 2025, 2024 and 2023, respectively.
Collaborative Arrangements
The Company’s collaborative arrangements primarily relate to arrangements entered into with third parties to jointly finance and distribute certain theatrical and television productions, arrangements entered into with third parties to bundle streaming services, and an arrangement entered into with CBS Broadcasting, Inc. (“CBS”) surrounding the NCAA.
Co-financing arrangements generally represent the assignment of a partial copyright interest in a film or television series to a partner. The Company generally records the amounts received for the assignment of an interest as a reduction of production cost, as the partner assumes the risk for their share of the film or series asset. The substance of these arrangements is that the third-party partner owns an interest in the film or series; therefore, in each period, based on the terms of the arrangement, the Company reflects the estimate of the third-party partner’s interest in the profits or losses incurred on the film or series, using the individual film forecast method, in cost of revenues, excluding depreciation and amortization in the consolidated statements of operations. On occasion, the Company acquires the economic interest in a film from a producing partner and is the distributor; in this case, the Company capitalizes the acquisition cost as a content asset in film and television content rights and games and accounts for the third-party partner’s share in applicable distribution results as described above.
Bundled streaming service arrangements are evaluated at inception to determine whether it is a collaborative agreement based on the facts and circumstances. In the cases of bundled collaborative agreements, the partners share the expenses incurred and revenues generated. In each period, the Company reflects its share of expenses and revenues in the consolidated statements of operations.
The arrangement among Turner, CBS and the NCAA provides Turner and CBS with rights to the NCAA Division I Men’s Basketball Championship Tournament (the “NCAA Tournament”) in the U.S. and its territories and possessions through 2032. The aggregate programming rights fee, production costs, advertising revenues and sponsorship revenues related to the NCAA Tournament and related programming are shared equally by the Company and CBS. However, if the amount paid for the programming rights fee and production costs in any given year exceeds advertising and sponsorship revenues for that year, CBS’ share of such shortfall is limited to specified annual caps. The amount recorded pursuant to the loss cap was $73 million during the year ended December 31, 2025 and was not material during the years ended December 31, 2024 and 2023. In accounting for this arrangement, the Company records advertising revenue for the advertisements aired on its networks and amortizes its share of the programming rights fee based on the estimated relative value of each season over the term of the arrangement.
For our collaborative arrangements entered into with third parties to jointly finance and distribute certain theatrical and television productions, net participation costs of $506 million, $632 million, and $393 million were recorded in cost of revenues, excluding depreciation and amortization for the years ended December 31, 2025, 2024 and 2023, respectively.
Income Taxes
Income taxes are recorded using the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates the Company expects to apply to taxable income in years in which those temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not such assets will be unrealized.
From time to time, the Company engages in transactions in which the tax consequences may be uncertain. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities.
In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for unrecognized tax benefits unless the Company determines that such positions are more likely than not to be sustained upon examination based on their technical merits, including the resolution of any appeals or litigation processes. The Company includes interest and where appropriate, penalties, as a component of income tax expense on the consolidated statements of operations. Significant judgment is exercised in evaluating all relevant information, the technical merits of the tax positions, and the accurate measurement of unrecognized tax benefits when determining the amount of reserve and whether positions taken on the Company’s tax returns are more likely than not to be sustained. This also involves the use of significant estimates and assumptions with respect to the potential outcome of positions taken on tax returns that may be reviewed by tax authorities. The Company adjusts its unrecognized tax benefits periodically because of ongoing examinations by, and settlements with, various taxing authorities, as well as changes in tax laws, regulations and interpretations.
In connection with the WarnerMedia Merger, the Company entered into a tax matters agreement (“TMA”) with AT&T. Pursuant to the TMA, the Company is responsible for tax liabilities of the WarnerMedia Business related to the periods prior to AT&T’s ownership of the WarnerMedia Business (June 14, 2018), and AT&T is responsible for tax liabilities of the WarnerMedia Business related to the period for which they owned the WarnerMedia Business (June 15, 2018 through April 8, 2022). With respect to unrecognized tax benefits related to jurisdictions that have joint and several liability among members of the AT&T tax filing group during the AT&T ownership period, the Company has not recorded any liabilities for unrecognized tax benefits or indemnification receivables related to matters that were attributable to jurisdictions that have joint and several liability among members of the AT&T filing group since AT&T was determined to be the primary obligor.
Concentrations Risk
Customers
No individual customer accounted for more than 10% of total consolidated revenues for 2025, 2024 or 2023. The Company had one customer that represented more than 10% of content revenue in 2025, which totaled 12%. The Company had one customer that represented more than 10% of distribution revenue in 2024, which totaled 13%, and two customers that each represented more than 10% of distribution revenue in 2023, which in aggregate totaled 24%. One customer accounted for 10% of trade receivables as of December 31, 2025 and no individual customer accounted for more than 10% of trade receivables as of December 31, 2024.
Financial Institutions
Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.
Counterparty Credit Risk
The Company is exposed to the risk that the counterparties to outstanding derivative financial instruments will default on their obligations. The Company manages these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with outstanding derivative financial instruments is spread across a relatively broad counterparty base of banks and financial institutions. The Company also has a limited number of arrangements where collateral is required to be posted in the instance that certain fair value thresholds are exceeded. Additionally, the Company may be required to post collateral related to its revolving receivables program. As of December 31, 2025, collateral posted under these arrangements was not material.
Accounting and Reporting Pronouncements Adopted
Income Taxes
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) updating the disclosure requirements for income taxes, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is permitted. The Company prospectively adopted the guidance effective January 1, 2025 and has provided the required annual disclosures in Note 16 and Note 18.
Accounting and Reporting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued guidance updating the disclosure requirements for income statement expenses, primarily through disaggregation of certain types of expenses presented on the income statement. The amendments are effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either: (1) prospectively to financial statements issued for reporting periods after the effective date, or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this guidance will have on its disclosures.
Credit Losses
In July 2025, the FASB issued guidance which provides a practical expedient to simplify the estimation of expected credit losses by assuming that current conditions as of the balance sheet do not change for the remaining life of the asset. This guidance is effective for interim and annual periods beginning after December 15, 2025. Early adoption is permitted, and the standard is to be applied prospectively. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and disclosures.
Accounting for Internal-Use Software
In September 2025, the FASB issued guidance which amends the existing standard for internal-use software to remove all references to prescriptive and sequential software development project stages. Under this guidance, eligible software development costs will begin capitalization when management has authorized and committed to funding the software project, and it is probable that the project will be completed, and the software will be used to perform the function intended. This guidance may be applied prospectively, retrospectively, or with a modified transition approach, and is effective for all annual periods beginning after December 15, 2027, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and disclosures.
Derivatives and Hedging and Revenue from Contracts with Customers
In September 2025, the FASB issued guidance that amends existing standards for derivatives and hedging (“Topic 815”) and revenue from contracts with customers (“Topic 606”). The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. This guidance may be applied prospectively or with a modified retrospective approach, and is effective for all annual periods beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and disclosures.
Derivatives and Hedging: Hedge Accounting Improvements
In November 2025, the FASB issued guidance that improves hedge accounting guidance by clarifying certain aspects and aligning hedge accounting more closely with the economics of an entity’s risk management activities. The update is effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. The updates should be applied prospectively for all hedging relationships as of the date of adoption. The Company does not expect a material impact on our financial statements.
v3.25.4
EQUITY AND EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2025
Equity And Earnings Per Share [Abstract]  
EQUITY AND EARNINGS PER SHARE EQUITY AND EARNINGS PER SHARE
Repurchase Programs
Common Stock
Under the Company’s stock repurchase program, management is authorized to purchase shares of WBD common stock from time to time through open market purchases, privately negotiated transactions at prevailing prices, pursuant to one or more accelerated stock repurchase agreements, or other derivative arrangements as permitted by securities laws and other legal requirements, and subject to stock price, business and market conditions and other factors.
In February 2020, the Company’s board of directors authorized additional stock repurchases of up to $2,000 million upon completion of its existing $1,000 million repurchase authorization announced in May 2019. All common stock repurchases have been made through open market transactions and have been recorded as treasury stock on the consolidated balance sheets. During the years ended December 31, 2025, 2024 and 2023, the Company did not repurchase any of its common stock. Over the life of the Company’s repurchase programs and prior to the Merger and conversion of Discovery common stock to WBD common stock, the Company had repurchased 3 million and 229 million shares of Discovery Series A and Discovery Series C common stock, respectively, for the aggregate purchase price of $171 million and $8,168 million, respectively.
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.
Year Ended December 31,
202520242023
Numerator:
Net income (loss)$749 $(11,482)$(3,079)
Less:
Net (income) loss attributable to noncontrolling interests(24)129 (38)
Net loss (income) attributable to redeemable noncontrolling interests42 (9)
Redeemable noncontrolling interest adjustments of carrying value to redemption value (redemption value does not equal fair value)(3)— 
Net income (loss) available to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted earnings per share$728 $(11,314)$(3,126)
Denominator — weighted average:
Common shares outstanding — basic2,475 2,450 2,436 
Dilutive effect of share-based awards55 — — 
Common shares outstanding — diluted2,530 2,450 2,436 
Basic net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
Diluted net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
The table below presents the details of share-based awards that were excluded from the calculation of diluted earnings per share (in millions).
Year Ended December 31,
202520242023
Anti-dilutive share-based awards
43 76 69 
v3.25.4
ACQUISITIONS AND DISPOSITIONS
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS AND DISPOSITIONS ACQUISITIONS AND DISPOSITIONS
Acquisitions
BluTV
The Company previously held a 35% interest in BluTV, a SVOD platform entity and content distributor in Turkey that was accounted for as an equity method investment. In December 2023, the Company acquired the remaining 65% of BluTV for $50 million.
Dispositions
In May 2024, the Company sold its 50% interest in All3Media, an equity method investment, for proceeds of $324 million and recorded a gain of $203 million in other income (expense), net in the consolidated statements of operations.
In October 2024, the Company sold its minority interests in Formula E, which were recorded as an equity method investment and an investment without readily determinable fair value, to Liberty Global Ltd. (“Liberty Global”), a related party, for total proceeds of $217 million and recorded a gain of $61 million in other income (expense), net in the consolidated statements of operations.
During 2023, the Company sold or exited all of the AT&T SportsNets.
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Changes in the carrying value of goodwill attributable to each business unit were as follows (in millions).
StreamingStudiosGlobal Linear NetworksTotal
December 31, 2023$8,067 $9,272 $17,630 $34,969 
Impairment of goodwill— — (9,147)(9,147)
Foreign currency translation and other adjustments(16)(75)(64)(155)
December 31, 2024$8,051 $9,197 $8,419 $25,667 
Dispositions— — (16)(16)
Foreign currency translation and other adjustments20 155 107 282 
December 31, 2025$8,071 $9,352 $8,510 $25,933 
The carrying amount of goodwill at the Global Linear Networks segment included accumulated impairments of $10,770 million as of December 31, 2025 and 2024. The Streaming and Studios segments did not include any accumulated impairments as of December 31, 2025 and 2024.
Intangible Assets
Finite-lived intangible assets subject to amortization consisted of the following (in millions, except years).
 
 Weighted
Average
Amortization
Period (Years)
December 31, 2025December 31, 2024
GrossAccumulated 
Amortization
NetGrossAccumulated
Amortization
Net
Trademarks and trade names27$22,939 $(5,872)$17,067 $22,835 $(4,212)$18,623 
Affiliate, advertising and subscriber relationships824,359 (21,191)3,168 24,240 (18,528)5,712 
Franchises357,900 (1,144)6,756 7,900 (789)7,111 
Character rights14995 (269)726 995 (197)798 
Other6624 (577)47 586 (531)55 
Total$56,817 $(29,053)$27,764 $56,556 $(24,257)$32,299 
Amortization expense for finite-lived intangible assets reflects the pattern in which the assets’ economic benefits are consumed over their estimated useful lives. For assets whose economic benefits are anticipated to be consumed evenly, a straight-line method is utilized. For assets in which the economic benefits are expected to be recognized unevenly over the useful life of the asset, an accelerated method, such as the sum-of-the-months’ digits method, is utilized. Amortization expense related to finite-lived intangible assets was $4,605 million, $5,935 million and $6,854 million for the years ended December 31, 2025, 2024 and 2023, respectively.
During 2024, as a result of the goodwill impairment charge discussed below and recorded in the second quarter of 2024, and the long-term trends and risks associated with the Company’s Global Linear Networks reporting unit, the Company reassessed and shortened the useful lives for certain of its linear networks trade names. This change was considered a change in estimate, was accounted for prospectively, and resulted in incremental amortization expense of $184 million for the year ended December 31, 2024.
During 2023, the Company reassessed the useful lives and amortization methods for its linear networks and HBO trademarks and trade names, and its DC franchise, and concluded the pattern of amortization should be accelerated. Accordingly, the Company has changed the amortization method for these assets from the straight-line method to the sum-of-the-months’ digits method. This change was considered a change in estimate, was accounted for prospectively, and resulted in incremental amortization expense of $368 million for the year ended December 31, 2023.
Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions).
20262027202820292030Thereafter
Amortization expense$3,426 $2,626 $2,007 $1,767 $1,559 $16,379 
Impairment Analysis
We perform fair value-based impairment tests of goodwill and intangible assets with indefinite lives on an annual basis, and between annual tests if an event occurs or if circumstances change that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying value.
Significant judgments and assumptions for all quantitative goodwill tests performed include discount rates, control premiums, terminal growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows, including revenue growth rates and profit margins.
2025 Impairment Analysis
For the 2025 annual impairment test, the Company performed a qualitative goodwill impairment assessment for all of its reporting units and determined that it was more likely than not that the fair value of each reporting unit exceeded its carrying value, therefore, no quantitative goodwill impairment analysis was performed.
The Company continues to monitor its reporting units for triggers that could impact the recoverability of goodwill. Long-term trends and risks the Company is monitoring in its ongoing assessment include, but are not limited to, the following:
the delta between market capitalization and book value, as well as volatility or declines in the price of the Company’s common stock, including any impact from the PSKY Merger;
uncertainty related to affiliate rights renewals associated with the Company’s Global Linear Networks and Streaming reporting units;
declining levels of global GDP growth and continued softness in the U.S. linear advertising market associated with the Company’s Global Linear Networks reporting unit;
increased competition for advertising expenditures associated with the Company’s Global Linear Networks and Streaming reporting units as a result of an increase in digital advertising inventory available in the marketplace;
uncertainty surrounding the impacts related to the imposition of tariffs by the U.S. government and any retaliatory tariffs from foreign governments;
content licensing trends and volatility related to the performance of theatrical film and game slates in the Company’s Studios reporting unit; and
risks in executing the projected growth strategies of the Company’s Streaming reporting unit.
2024 Impairment Analysis
During the second quarter of 2024, the Company performed goodwill and intangible assets impairment monitoring procedures for all of its reporting units and concluded the delta between market capitalization and book value, continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA, represented a triggering event for the Global Linear Networks reporting unit.
As a result, the Company elected to perform a quantitative impairment assessment for all of its reporting units in the second quarter of 2024. For the Global Linear Networks reporting unit, fair value was determined using a DCF method. The key judgments and assumptions used in the DCF method to determine the fair value of the Global Linear Networks reporting unit were as follows:
•    The expected future cash flows in terms of their amount and timing. These cash flows, utilized in the DCF analysis, are derived from the reporting unit’s budget and its strategic long-term plan, which reflect expectations based upon operating performance and assumptions consistent with those of a market participant with regards to affiliate revenue, sports rights, and continued softness in the U.S. linear advertising market.
•    Long-term growth rate of negative 3%.
•    A discount rate of 10.5%. This is reflective of the risks inherent in the future cash flows of the reporting unit and market conditions.
Given the inherent uncertainty in determining the assumptions underlying a DCF analysis, actual results may differ from those used in the valuations.
The carrying value of the Global Linear Networks reporting unit exceeded its fair value and the Company recorded a non-cash goodwill impairment charge of $9,147 million during the second quarter of 2024 in impairments and loss on dispositions in the consolidated statements of operations. The goodwill impairment charge does not have an impact on the calculation of the Company’s financial covenants under the Company’s debt arrangements.
As of October 1, 2024, the Company performed a quantitative goodwill impairment assessment for all of its reporting units. The estimated fair value of each reporting unit exceeded its carrying value and, therefore, no impairment was recorded.
2023 Impairment Analysis
For the 2023 annual impairment test, the Company performed a quantitative goodwill impairment assessment for all reporting units. The estimated fair value of each reporting unit exceeded its carrying value and, therefore, no impairment was recorded.
Fair Value Measurements
The determination of fair value of the Company’s reporting units represents a Level 3 fair value measurement in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. Changes in significant judgments and estimates could significantly impact the determined fair value of the reporting unit or the valuation of intangible assets. Changes to assumptions that would decrease the fair value of the reporting unit may result in corresponding increases to the impairment of goodwill at the reporting unit.
v3.25.4
RESTRUCTURING AND OTHER CHARGES
12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES
The Company periodically initiates restructuring programs, which may include, among other things, strategic content programming assessments, organizational restructuring, facility consolidation activities, and other contract termination costs. During 2025, the Company initiated restructuring plans related to the previously proposed Separation Transaction. During 2024, the Company initiated two restructuring initiatives; an organizational and personnel restructuring plan and a restructuring initiative associated with its Warner Bros. Games group. During 2023, the Company initiated a strategic realignment plan associated with its Warner Bros. Pictures Animation group.
Restructuring and other charges by reportable segment and corporate and inter-segment eliminations were as follows (in millions).
Year Ended December 31,
202520242023
Streaming$27 $$66 
Studios18 263 225 
Global Linear Networks69 85 201 
Corporate and inter-segment eliminations285 96 93 
Total restructuring and other charges$399 $447 $585 
During the year ended December 31, 2025, restructuring and other charges primarily related to organizational and personnel restructuring costs and consulting fees.
During the year ended December 31, 2024, restructuring and other charges primarily included organization restructuring costs of $246 million, content impairments and other content development costs and write-offs of $165 million, and contract terminations and other restructuring costs of $36 million. Facility consolidation impairment charges of $411 million were recorded in impairment and loss on dispositions in the consolidated statements of operations during the year ended December 31, 2024.
During the year ended December 31, 2023, restructuring and other charges primarily included content impairments and other content development costs and write-offs of $115 million, contract terminations and facility consolidation activities of $111 million, and organization restructuring costs of $359 million.
Changes in restructuring liabilities recorded in accounts payable, accrued liabilities, and other noncurrent liabilities by major category and by reportable segment and corporate were as follows (in millions).
StreamingStudiosGlobal Linear NetworksCorporateTotal
December 31, 2023
$80 $98 $202 $80 $460 
Contract termination accruals, net— — 
Employee termination accruals, net24 79 84 78 265 
Other accruals(20)(2)(17)
Cash paid(53)(83)(180)(107)(423)
December 31, 202431 95 105 58 289 
Contract termination accruals, net— — — 
Employee termination accruals, net26 21 66 73 186 
Other accruals(3)211 212 
Cash paid(35)(55)(105)(216)(411)
December 31, 2025$23 $58 $69 $127 $277 
v3.25.4
REVENUES
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Disaggregated Revenue
The following table presents the Company’s revenues disaggregated by revenue source (in millions).
Year Ended December 31, 2025
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$9,444 $$9,819 $(9)$19,262 
Advertising1,032 6,332 (59)7,306 
Content 388 11,740 1,195 (3,676)9,647 
Other12 870 310 (111)1,081 
Totals$10,876 $12,619 $17,656 $(3,855)$37,296 
Year Ended December 31, 2024
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$9,022 $$10,680 $(9)$19,701 
Advertising855 7,306 (76)8,090 
Content428 10,717 1,848 (2,696)10,297 
Other877 341 1,233 
Totals$10,313 $11,607 $20,175 $(2,774)$39,321 
Year Ended December 31, 2023
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$8,703 $17 $11,521 $(4)$20,237 
Advertising548 15 8,342 (205)8,700 
Content886 11,358 1,005 (2,046)11,203 
Other17 802 376 (14)1,181 
Totals$10,154 $12,192 $21,244 $(2,269)$41,321 
Accounts Receivable and Credit Losses
The allowance for credit losses was not material at December 31, 2025 and 2024.
Contract Assets and Liabilities
The following table presents contract liabilities on the consolidated balance sheets (in millions).
CategoryBalance Sheet LocationDecember 31, 2025December 31, 2024
Contract liabilitiesDeferred revenues$1,642 $1,569 
Contract liabilitiesOther noncurrent liabilities355 206 
The change in deferred revenue for the year ended December 31, 2025 primarily reflects cash payments received or contracted billings recorded for which the performance obligations were not satisfied prior to the end of the period, partially offset by $1,378 million of revenues recognized that were included in the deferred revenue balance at December 31, 2024. Revenue recognized for the year ended December 31, 2024 related to the deferred revenue balance at December 31, 2023 was $1,643 million. Contract assets were not material as of December 31, 2025 and 2024.
Transaction Price Allocated to Remaining Performance Obligations
Most of the Company’s distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which revenues are recorded as a function of royalties earned to date instead of estimating incremental royalty contract revenue. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts monthly based on minimum monthly fees by calculating one twelfth of annual license fees specified in its distribution contracts, or based on the pro-rata fees earned calculated on the license fees specified in the distribution contract.
The Company’s content licensing contracts and sports sublicensing deals are licenses of functional intellectual property.
The Company’s brand licensing contracts are licenses of symbolic intellectual property.
The Company’s advertising contracts are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. Certain of these arrangements extend beyond one year.
The following table presents a summary of remaining performance obligations by contract type (in millions).
Contract TypeDecember 31, 2025Duration
Distribution - fixed price or minimum guarantee$2,489 
Through 2030
Content licensing and sports sublicensing4,601 
Through 2032
Brand licensing4,023 
Through 2062
Advertising1,127 
Through 2032
Other138 
Through 2029
Total$12,378 
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, which typically have a similar duration as the contracts disclosed above, 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.
v3.25.4
SALES OF RECEIVABLES
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
SALES OF RECEIVABLES SALES OF RECEIVABLES
Revolving Receivables Program
During 2025, the Company amended its revolving receivables program to reduce the facility limit to $5,000 million and extend the program to June 2026. The outstanding portfolio of receivables derecognized from our consolidated balance sheets was $3,700 million and $4,637 million as of December 31, 2025 and 2024, respectively.
For the years ended December 31, 2025, 2024 and 2023, the Company recognized $145 million, $116 million, and $79 million, respectively, in selling, general and administrative expenses from the revolving receivables program in the consolidated statements of operations (net of non-designated derivatives). (See Note 13.)
The following table presents a summary of receivables sold (in millions).
Year Ended December 31,
20252024
Gross receivables sold/cash proceeds received$15,560 $15,254 
Collections reinvested under revolving receivables program(16,497)(15,818)
Net cash proceeds remitted$(937)$(564)
Net receivables sold$15,485 $15,153 
Obligations recorded (Level 3)$380 $361 
The following table presents a summary of the amounts transferred or pledged, which were held at the Company’s bankruptcy-remote consolidated subsidiary (in millions).
December 31, 2025December 31, 2024
Gross receivables pledged as collateral$2,632 $2,402 
Restricted cash pledged as collateral$— $100 
Balance sheet classification:
Receivables, net$2,230 $2,039 
Prepaid expenses and other current assets$— $100 
Other noncurrent assets$402 $363 
Accounts Receivable Factoring
Total trade accounts receivable sold under the Company’s factoring arrangements was $257 million and $313 million for the years ended December 31, 2025 and 2024, respectively. The impact to the consolidated statements of operations was immaterial for the years ended December 31, 2025, 2024 and 2023. The accounts receivable factoring agreements is separate and distinct from the revolving receivables program.
v3.25.4
CONTENT RIGHTS
12 Months Ended
Dec. 31, 2025
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
CONTENT RIGHTS CONTENT RIGHTS
For purposes of amortization and impairment, capitalized production costs are grouped based on their predominant monetization strategy: individually or as a group. Live programming includes licensed sports rights and related advances. The table below presents the components of content rights (in millions).
December 31, 2025
Predominantly Monetized Individually
Predominantly Monetized as a Group
Total
Production costs:
Released, less amortization$3,006 $5,686 $8,692 
Completed and not released1,109 521 1,630 
In production and other1,782 2,544 4,326 
Total production costs$5,897 $8,751 $14,648 
Licensed content, live programming, and advances, net4,478 
Game development costs, less amortization310 
Total film and television content rights and games19,436 
Less: Current content rights and prepaid license fees, net(322)
Total noncurrent film and television content rights and games$19,114 
December 31, 2024
Predominantly Monetized Individually
Predominantly Monetized as a Group
Total
Production costs:
Released, less amortization$2,948 $5,678 $8,626 
Completed and not released794 767 1,561 
In production and other1,700 2,008 3,708 
Total production costs$5,442 $8,453 $13,895 
Licensed content, live programming, and advances, net5,744 
Game development costs, less amortization247 
Total film and television content rights and games19,886 
Less: Current content rights and prepaid license fees, net(784)
Total noncurrent film and television content rights and games$19,102 
Content amortization consisted of the following (in millions).
Year Ended December 31,
202520242023
Predominantly monetized individually$2,346 $3,999 $5,165 
Predominantly monetized as a group9,306 9,554 10,648 
Total content amortization$11,652 $13,553 $15,813 
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 year ended December 31, 2025, total content impairments were $203 million.
For the year ended December 31, 2024, total content impairments were $558 million, of which content impairments and other content development costs and write-offs of $165 million were primarily due to the abandonment of certain titles in connection with the fourth quarter 2024 strategic realignment plan associated with the Warner Bros. Games group, and are reflected in restructuring and other charges in the Studios segment. (See Note 6.)
For the year ended December 31, 2023, total content impairments were $326 million, of which content impairments and content development costs and write-offs of $115 million were primarily due to the abandonment of certain films in connection with the third quarter 2023 strategic realignment plan associated with the Warner Bros. Pictures Animation group and are reflected in restructuring and other charges in the Studios segment. (See Note 6.)
The table below presents the expected future amortization expense of the Company’s film and television content rights, licensed content and advances, live programming rights and advances, and games as of December 31, 2025 (in millions).
Year Ending December 31,
202620272028
Released investment in films and television content:
Monetized individually$804 $642 $532 
Monetized as a group2,150 1,225 849 
Licensed content, live programming, and advances1,695 894 624 
Games— — 
Completed and not released investment in films and television content:
Monetized individually$879 
Monetized as a group210 
At December 31, 2025, acquired film and television libraries are being amortized using straight-line or other accelerated amortization methods through 2036.
v3.25.4
INVESTMENTS
12 Months Ended
Dec. 31, 2025
Investments [Abstract]  
INVESTMENTS INVESTMENTS
The Company’s equity investments consisted of the following, net of investments recorded in other noncurrent liabilities (in millions).
CategoryBalance Sheet LocationOwnershipDecember 31, 2025December 31, 2024
Equity method investments:
The Chernin Group (TCG) 2.0-A, LPOther noncurrent assets44%$276 $240 
nC+Other noncurrent assets32%153 128 
TNT SportsOther noncurrent assets50%10 92 
OtherOther noncurrent assets258 261 
Total equity method investments697 721 
Investments with readily determinable fair valuesOther noncurrent assets— 41 
Investments without readily determinable fair values
Other noncurrent assets (a)
348 353 
Total investments $1,045 $1,115 
(a) Investments without readily determinable fair values included $17 million as of December 31, 2025 and December 31, 2024 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 December 31, 2025, the Company’s maximum exposure for all its unconsolidated VIEs, including the investment carrying values and unfunded contractual commitments made on behalf of VIEs, was approximately $492 million. The Company’s maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $481 million and $550 million as of December 31, 2025 and December 31, 2024, respectively. The Company recognized its portion of VIE operating results with income of $33 million for the year ended December 31, 2025, and losses of $24 million and $75 million for the years ended December 31, 2024 and 2023, respectively, in loss from equity investees, net, on the consolidated statements of operations.
During the year ended December 31, 2025, the TNT Sports joint venture had an impairment of $79 million, recognized in loss from equity investees, net on the consolidated statements of operations. Impairments were immaterial for years ended December 31, 2024 and 2023.
In May 2024, the Company sold its 50% interest in All3Media, an equity method investment, for proceeds of $324 million and recorded a gain of $203 million in other income (expense), net in the consolidated statements of operations.
Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative
The Company recorded impairments and upward adjustments for its other equity investments without readily determinable fair values of $17 million and $1 million during the year ended December 31, 2025, respectively, as a result of observable price changes in orderly transactions for the identical or similar investment of the same issuer. The changes in fair value as a result of observable price changes are recorded in other income (expense), net on the consolidated statements of operations. (See Note 18.) As of December 31, 2025, the Company had recorded cumulative impairments of $274 million and cumulative upward adjustments of $23 million for its equity method investments without readily determinable fair values.
v3.25.4
DEBT
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
The table below presents the components of outstanding debt (in millions).
December 31,
Weighted-Average
Interest Rate as of
12/31/2025
20252024
Bridge loan with maturity of 18 months
7.22 %$15,000 $— 
Senior notes with maturities of 5 years or less
3.92 %6,659 13,744 
Senior notes with maturities between 5 and 10 years
4.37 %3,509 7,853 
Senior notes with maturities greater than 10 years
5.17 %7,677 17,930 
Total debt32,845 39,527 
Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net(278)(22)
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting32,567 39,505 
Current portion of debt(139)(2,748)
Noncurrent portion of debt$32,428 $36,757 
During the year ended December 31, 2025, the Company repaid $2,000 million of aggregate principal amount outstanding of its Bridge Loan Facility, repaid in full at maturity $97 million of aggregate principal amount outstanding of its senior notes due July 2025, completed open market repurchases for $59 million of aggregate principal amount outstanding of its senior notes, and purchased $2 million of aggregate principal amount outstanding of its senior notes to finalize the Tender Offers further described below.
During the year ended December 31, 2025, the Company’s wholly-owned subsidiaries, Discovery Communications, LLC (“DCL”), Discovery Global Holdings, Inc. (“DGH”) (formerly known as WarnerMedia Holdings, Inc.), Warner Media, LLC (“WML”), and Historic TW Inc. (“TWI”), commenced cash tender offers to purchase (the “Tender Offers”) up to approximately $14,600 million in aggregate purchase price of their outstanding notes and debentures. In conjunction with the Tender Offers, DCL, DGH and TWI also commenced solicitations of consents (the “Consent Solicitations”) from holders of substantially all of its outstanding notes and debentures to adopt certain proposed amendments to the indentures governing such notes and debentures, to, among other things, remove substantially all of the restrictive covenants and certain events of defaults under such indentures.
To fund the Tender Offers and Consent Solicitations, as well as repay in full and terminate its $1,500 million 364-day senior unsecured term loan facility, the Company and DGH entered into a non-investment grade leveraged bridge loan facility (“Bridge Loan Facility”) with JPMorgan Chase Bank, N.A. in June 2025, which was amended and extended in February 2026. (See Note 24.) The obligations under the Bridge Loan Facility are secured by a lien on substantially all of the personal property assets of the Company, DGH, and certain of its wholly owned domestic subsidiaries and are guaranteed by the Company and certain of its wholly-owned domestic subsidiaries. Borrowings under the Bridge Loan Facility will bear interest at the SOFR rate plus (i) until March 30, 2026, 3.50% per annum and (ii) from March 31, 2026 until the termination date of the Bridge Loan Facility, 4.00%. Borrowings under the Bridge Loan Facility, net of any prepayments, will become payable in full on the earlier of (i) June 30, 2027 and (ii) the date the previously proposed Separation Transaction occurs. In addition, the Company will pay JPMorgan Chase Bank, N.A. as the administrative agent a duration fee equal to the applicable percentage of the aggregate principal amount of the loan outstanding on the following dates: on each of March 31, 2026 and June 30, 2026, a fee rate of 0.50%; and on each of September 30, 2026, December 31, 2026 and March 31, 2027, a fee rate of 1.00%. On June 30, 2025, DGH drew $17,000 million of the available Bridge Loan Facility to finance the early settlement of the Tender Offers, Consent Solicitations, and the repayment in full and termination of its $1,500 million 364-day senior unsecured term loan facility, and the payment of fees and expenses therewith and for general corporate purposes. The Bridge Loan Facility is expected to be refinanced prior to its maturity. The Bridge Loan Facility contains customary representations and warranties, as well as affirmative and negative covenants. The Bridge Loan Facility does not contain any financial maintenance covenant.
The Company substantially completed the Tender Offers in June 2025 by purchasing senior notes and debentures in the aggregate principal amount of $17,665 million validly tendered and accepted for purchase pursuant to the Tender Offers and recorded a gain on extinguishment of approximately $2,959 million. The Company also paid $293 million for the Consent Solicitations. Additionally, the Company repaid in full at maturity $487 million of aggregate principal amount outstanding of its senior notes due June 2025.
During the year ended December 31, 2025, the Company repaid in full at maturity $2,165 million of aggregate principal amount outstanding of its senior notes due March 2025, and redeemed in full $1,500 million aggregate principal amount outstanding of its senior notes due March 2026. The redemption was funded with the proceeds of borrowings pursuant to a $1,500 million 364-day senior unsecured term loan credit facility.
During the year ended December 31, 2024, the Company commenced a tender offer to purchase for cash up to $2,610 million in aggregate purchase price (excluding accrued and unpaid interest) of (i) DCL’s outstanding 3.900% Senior Notes due 2024, 4.000% Senior Notes due 2055, 4.650% Senior Notes due 2050, 4.950% Senior Notes due 2042, 4.875% Senior Notes due 2043, 5.200% Senior Notes due 2047, and 5.300% Senior Notes due 2049; (ii) Scripps Networks Interactive, Inc.’s (“Scripps Networks”) outstanding 3.900% Senior Notes due 2024; (iii) the legacy WarnerMedia Business’s outstanding 4.650% Senior Notes due 2044, 4.850% Senior Notes due 2045, 4.900% Senior Notes due 2042, and 5.350% Senior Notes due 2043; and (iv) DGH’s outstanding 5.050% Senior Notes due 2042, which was funded using the aggregate net proceeds from debt financing transactions together with available cash on hand and other available sources of liquidity. The Company completed the tender offer in June 2024 by purchasing senior notes in the aggregate principal amount of $3,399 million validly tendered and accepted for purchase pursuant to the offer and recorded a gain on extinguishment of $542 million.
During the year ended December 31, 2024, the Company also repaid in full at maturity $296 million of aggregate principal amount outstanding of its senior notes due November 2024; £400 million ($529 million equivalent at repayment) of aggregate principal amount outstanding of its senior notes due September 2024; $48 million of aggregate principal amount outstanding of its senior notes due June 2024; $726 million of aggregate principal amount outstanding of its senior notes due February and March 2024; and completed open market repurchases for $965 million of aggregate principal amount outstanding of its senior notes.
During the year ended December 31, 2024, the Company issued €650 million of 4.302% fixed rate senior notes due January 2030 and €850 million of 4.693% fixed rate senior notes due May 2033, the proceeds of which were used to fund the aforementioned tender offer. After December 2029 and February 2033, respectively, the senior notes are redeemable at par plus accrued and unpaid interest.
We are obligated to cause certain of our subsidiaries to conduct one or more offers to exchange (collectively, the “Junior Lien Exchange Offer”) certain of the senior notes issued by DGH and DCL, as applicable, for new junior lien secured notes with the same economic terms (including denominations, interest rate, interest payment dates, maturity date and redemption provisions) to be issued by DGH or DCL, as applicable (the “junior lien notes”). If the Junior Lien Exchange Offer is not completed by December 30, 2026, WBD will be required to pay to each holder of the applicable senior notes entitled to participate in the Junior Lien Exchange Offer a one-time cash payment in the amount of $100 per $1,000 principal amount or €100 per €1,000 principal amount, as applicable, of the applicable senior notes held by such holder, equal to an aggregate amount of approximately $1.5 billion.
The PSKY Merger Agreement provides that, prior to October 15, 2026, PSKY may deliver one formal request (a “Specified Request”) in writing to WBD requesting that WBD either, subject to certain exceptions, (i) commence and use reasonable best efforts to effectuate a consent solicitation (on terms mutually determined by PSKY and WBD in good faith) to eliminate the obligation to commence the Junior Lien Exchange Offer or otherwise modify the required terms of the Junior Lien Exchange Offer, (ii) commence and use reasonable best efforts to effectuate the Junior Lien Exchange Offer (on terms mutually determined by PSKY and WBD in good faith, subject to certain conditions) or (iii) make a payment in the amount of $100 per $1,000 principal amount or €100 per €1,000 principal amount of such outstanding senior notes in lieu of effectuating the Junior Lien Exchange Offer (the “Amended Notes Payment Amount”); provided that, if the Amended Notes Payment Amount becomes due and payable pursuant to the above, PSKY shall timely and fully pay such amount (such amount not to exceed $1,528 million in the aggregate).
If PSKY does not make a Specified Request by October 15, 2026, WBD may, after such date, commence one or more consent solicitations with respect to the outstanding senior notes or commence the Junior Lien Exchange Offer, in each case, on terms determined by WBD in its sole discretion, or pay the Amended Notes Payment Amount; provided that, if the Amended Notes Payment Amount becomes due and payable pursuant to the above, PSKY shall timely and fully pay such amount (subject to the aggregate limit described above).
As of December 31, 2025, all senior notes are fully and unconditionally guaranteed by the Company, Scripps Networks, DCL (to the extent it is not the primary obligor on such senior notes), and DGH (to the extent it is not the primary obligor on such senior notes), except for $192 million of senior notes of the legacy WarnerMedia Business.
Revolving Credit Facility and Commercial Paper Programs
DCL and certain subsidiaries of the Company, as borrowers, have a multicurrency revolving credit agreement, which was amended in June 2025 (the “Credit Agreement”). The Credit Agreement provides for a senior revolving credit facility (the “Credit Facility”) with aggregate commitments of $4,000 million and includes a $150 million sublimit for the issuance of standby letters of credit. DCL may also request additional commitments up to $1,000 million from the lenders upon the satisfaction of certain conditions. The obligations of the borrowers under the Credit Agreement are secured by the same collateral and have the benefit of the same guarantees as provided in respect of the Bridge Loan Facility, as described above. The Credit Agreement is available on a revolving basis until October 2029, with an option for up to two additional 364-day renewal periods subject to the lenders’ consent, and provides for an early termination of the Credit Agreement upon completion of the previously proposed Separation Transaction.
Additionally, the Company’s commercial paper program is supported by the Credit Facility. Under the commercial paper program, the Company may issue up to $2,000 million. In March 2025, the Company increased the issuance capacity under the commercial paper program from $1,000 million to $2,000 million. Borrowing capacity under the Credit Facility is effectively reduced by any outstanding borrowings under the commercial paper program.
As of December 31, 2025 and 2024, the Company and DCL had no outstanding borrowings under the Credit Facility or issuances under the commercial paper program.
The Credit Agreement contains customary representations and warranties as well as affirmative and negative covenants, and also requires maintenance of a minimum consolidated interest coverage ratio of 3.00 to 1.00 and a maximum consolidated leverage ratio of 4.50 to 1.00. As of December 31, 2025, the Company was in compliance with all applicable covenants and there were no events of default under the Credit Agreement.
Long-term Debt Repayment Schedule
The following table presents a summary of scheduled debt and estimated interest payments, excluding the revolving credit facility and commercial paper borrowings, for the next five years based on the amount of the Company’s debt outstanding as of December 31, 2025 (in millions).
20262027202820292030Thereafter
Long-term debt repayments$139 $16,483 $1,409 $2,274 $1,354 $11,186 
Interest payments$1,947 $1,353 $723 $648 $584 $5,454 
v3.25.4
LEASES
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
The Company has operating and finance leases for transponders, office space, studio facilities, software, and other equipment. The Company’s leases were reflected in the Company’s consolidated balance sheets as follows (in millions).
December 31,
20252024
Operating LeasesLocation on Balance Sheet
Operating lease right-of-use assetsOther noncurrent assets$2,749 $2,373 
Operating lease liabilities (current)Accrued liabilities$285 $307 
Operating lease liabilities (noncurrent)Other noncurrent liabilities3,226 2,731 
Total operating lease liabilities$3,511 $3,038 
Finance Leases
Finance lease right-of-use assetsProperty and equipment, net$635 $432 
Finance lease liabilities (current)Accrued liabilities$149 $107 
Finance lease liabilities (noncurrent)Other noncurrent liabilities534 356 
Total finance lease liabilities$683 $463 
Supplemental information related to leases was as follows.
December 31,
20252024
Weighted average remaining lease term (in years):
Operating leases1111
Finance leases66
Weighted average discount rate
Operating leases4.97 %4.43 %
Finance leases5.46 %5.11 %
The Company’s leases have remaining lease terms of up to 27 years, some of which include multiple options to extend the leases for up to a total of 20 years. Most leases are not cancelable prior to their expiration.
The components of lease cost were as follows (in millions):
Year Ended December 31,
202520242023
Operating lease cost$407 $441 $540 
Finance lease cost:
Amortization of right-of-use assets$150 $111 $85 
Interest on lease liabilities32 19 
Total finance lease cost$182 $130 $93 
Variable fees and other(a)
$29 $44 $74 
Total lease cost $618 $615 $707 
(a) Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Supplemental cash flow information related to leases was as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(455)$(476)$(501)
Operating cash flows from finance leases$(32)$(19)$(19)
Financing cash flows from finance leases$(139)$(95)$(74)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$726 $78 $364 
Finance leases$341 $300 $95 
Maturities of lease liabilities as of December 31, 2025 were as follows (in millions):
Operating LeasesFinance Leases
2026$441 $178 
2027424 157 
2028419 123 
2029416 81 
2030407 45 
Thereafter2,594 224 
Total lease payments4,701 808 
Less: Imputed interest(1,190)(125)
Total$3,511 $683 
During the year ended December 31, 2025, ROU asset impairment charges were $112 million and were primarily related to impairments of the Company’s Hudson Yards, New York office as a result of recoverability tests performed during the year as subleases for the office were executed. The impairment charges were recorded in impairment and loss on dispositions in the consolidated statements of operations. Sublease income, primarily related to the Hudson Yards, New York office, was $55 million for the year ended December 31, 2025 and was not material for the years ended December 31, 2024 and 2023.
As of December 31, 2025, the Company’s total minimum lease payments for additional leases that have not yet commenced were not material.
LEASES LEASES
The Company has operating and finance leases for transponders, office space, studio facilities, software, and other equipment. The Company’s leases were reflected in the Company’s consolidated balance sheets as follows (in millions).
December 31,
20252024
Operating LeasesLocation on Balance Sheet
Operating lease right-of-use assetsOther noncurrent assets$2,749 $2,373 
Operating lease liabilities (current)Accrued liabilities$285 $307 
Operating lease liabilities (noncurrent)Other noncurrent liabilities3,226 2,731 
Total operating lease liabilities$3,511 $3,038 
Finance Leases
Finance lease right-of-use assetsProperty and equipment, net$635 $432 
Finance lease liabilities (current)Accrued liabilities$149 $107 
Finance lease liabilities (noncurrent)Other noncurrent liabilities534 356 
Total finance lease liabilities$683 $463 
Supplemental information related to leases was as follows.
December 31,
20252024
Weighted average remaining lease term (in years):
Operating leases1111
Finance leases66
Weighted average discount rate
Operating leases4.97 %4.43 %
Finance leases5.46 %5.11 %
The Company’s leases have remaining lease terms of up to 27 years, some of which include multiple options to extend the leases for up to a total of 20 years. Most leases are not cancelable prior to their expiration.
The components of lease cost were as follows (in millions):
Year Ended December 31,
202520242023
Operating lease cost$407 $441 $540 
Finance lease cost:
Amortization of right-of-use assets$150 $111 $85 
Interest on lease liabilities32 19 
Total finance lease cost$182 $130 $93 
Variable fees and other(a)
$29 $44 $74 
Total lease cost $618 $615 $707 
(a) Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Supplemental cash flow information related to leases was as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(455)$(476)$(501)
Operating cash flows from finance leases$(32)$(19)$(19)
Financing cash flows from finance leases$(139)$(95)$(74)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$726 $78 $364 
Finance leases$341 $300 $95 
Maturities of lease liabilities as of December 31, 2025 were as follows (in millions):
Operating LeasesFinance Leases
2026$441 $178 
2027424 157 
2028419 123 
2029416 81 
2030407 45 
Thereafter2,594 224 
Total lease payments4,701 808 
Less: Imputed interest(1,190)(125)
Total$3,511 $683 
During the year ended December 31, 2025, ROU asset impairment charges were $112 million and were primarily related to impairments of the Company’s Hudson Yards, New York office as a result of recoverability tests performed during the year as subleases for the office were executed. The impairment charges were recorded in impairment and loss on dispositions in the consolidated statements of operations. Sublease income, primarily related to the Hudson Yards, New York office, was $55 million for the year ended December 31, 2025 and was not material for the years ended December 31, 2024 and 2023.
As of December 31, 2025, the Company’s total minimum lease payments for additional leases that have not yet commenced were not material.
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2025
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 market risk 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, total return swaps, and interest rate swaps, to hedge certain foreign currency, market value 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.
There were no amounts eligible to be offset under master netting agreements as of December 31, 2025 and 2024. The fair value of the Company’s derivative financial instruments at December 31, 2025 and 2024 was determined using a market-based approach (Level 2). The following table summarizes the Company’s derivative financial instruments recorded on its consolidated balance sheets (in millions).
December 31, 2025December 31, 2024
Fair ValueFair Value
NotionalPrepaid expenses and other current assetsOther non-
current assets
Accounts payable and accrued liabilitiesOther non-
current liabilities
NotionalPrepaid expenses and other current assetsOther non-
current assets
Accounts payable and accrued liabilitiesOther non-
current liabilities
Cash flow hedges:
Foreign exchange
$2,235 $53 $60 $35 $38 $1,608 $47 $14 $25 $28 
Net investment hedges: (a)
Cross-currency swaps
452 — — 21 421 — — 
No hedging designation:
Foreign exchange126 — 15 79 951 18 14 122 
Cross-currency swaps
225 — — 11 210 — — 
Total return swaps501 — — — — 454 — — 16 — 
Credit contracts2,000 — — — — — — — — 
Total
$81 $60 $50 $149 $73 $21 $55 $155 
(a) Excludes €781 million and €1,500 million of euro-denominated notes ($919 million and $1,558 million equivalent at December 31, 2025 and December 31, 2024, respectively) designated as net investment hedges. (See Note 11.)
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. As production spend occurs or when rebate receivables are recognized, foreign forward exchange contracts designated as cash flow hedges are de-designated. Upon de-designation, gains and losses on these derivatives directly impact earnings in the same line and same period as the hedged risk. These cash flow hedges are carried at fair market value on the Company’s consolidated balance sheets. Hedge effectiveness is assessed using the spot method, with fair market value changes recorded in other comprehensive income (loss) until the hedged item affects earnings. Excluded components, including forward points, are included in current earnings.
The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions).
Year Ended December 31,
202520242023
Gains (losses) recognized in accumulated other comprehensive loss:
Foreign exchange - derivative adjustments$23 $37 $23 
Gains (losses) reclassified into income from accumulated other comprehensive loss:
Foreign exchange - distribution revenue(27)22 (5)
Foreign exchange - advertising revenue— 
Foreign exchange - costs of revenues
Foreign exchange - other income (expense), net
— — 18 
Interest rate - interest expense, net(3)(5)(1)
Interest rate - gain on extinguishment of debt(1)(4)
 Interest rate - other income (expense), net
14 20 — 
If current fair values of designated cash flow hedges as of December 31, 2025 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 30 years.
Net Investment Hedges
The Company is exposed to foreign currency risk associated with the net assets of non-USD functional entities and uses fixed-to-fixed cross currency swaps to mitigate this risk.
During the year ended December 31, 2024, to mitigate the currency risk associated with the net assets of non-USD functional entities, the Company designated its €1,500 million denominated debt issued in May 2024 as a net investment hedge (see Note 11) and subsequently de-designated and re-designated €225 million of its Euro denominated debt.
During the year ended December 31, 2024, the Company also designated an additional €900 million of fixed-to-fixed cross currency swaps as a net investment hedge and subsequently settled €300 million and de-designated €200 million of fixed-to-fixed cross currency swaps designated as a net investment hedge.
During the year ended December 31, 2023, to mitigate the risk associated with the net assets of non-USD functional entities, the Company re-designated its Sterling denominated debt due in 2024 as a net investment hedge after the unwind of the cash flow hedge previously noted. During the year ended December 31, 2024, the Company de-designated £255 million of the Sterling debt, repaid the Sterling debt in full at maturity, and settled the remaining £145 million designated as a net investment hedge.
The following table presents the pre-tax impact of derivatives and other instruments designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other material gains (losses) reclassified from accumulated other comprehensive loss to income during the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
Amount of gain (loss) recognized in AOCILocation 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)
202520242023202520242023
Cross currency swaps$(19)$70 $43 Interest expense, net$11 $$24 
Euro denominated notes (foreign denominated debt)(209)78 N/A— — — 
Sterling denominated notes (foreign denominated debt)— (5)(11)N/A— — — 
Total$(228)$143 $35 $11 $$24 
Derivatives Not Designated for Hedge Accounting
The Company has deferred compensation plans that have risk related to the fair market value gains and losses on investments and uses 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.
The Company is exposed to risk of secured overnight financing rate changes in connection with securitization fees on the receivables securitization program. To mitigate this risk, the Company entered into and unwound and settled $2.5 billion notional of non-designated interest rate swaps for an immaterial gain during the year ended December 31, 2025. The Company entered into and unwound and settled $3.0 billion notional of non-designated interest rate swaps for an immaterial gain during the year ended December 31, 2024. The gains and losses on these derivatives are recorded to selling, general and administrative expenses, offsetting securitization fees.
In June 2025, the Company unwound foreign exchange forward contracts with a notional value of €450 million associated with the Company’s euro-denominated debt that was partially repaid in association with the Tender Offers. The Company also entered into and subsequently unwound and settled foreign exchange forward contracts with a notional value of €450 million to hedge the tender payment for the Company’s euro-denominated debt and recorded a gain of $9 million to other income (expense), net.
During the year ended December 31, 2025, the Company entered $2 billion notional amount of credit contract swaptions to mitigate the interest rate risk related to future issuances of debt related to the previously proposed Separation Transaction. (See Note 1.)
The following table presents the pre-tax gains (losses) on derivatives not designated as hedges and recognized in selling, general and administrative expense and other income (expense), net in the consolidated statements of operations (in millions).
Year Ended December 31,
 202520242023
Interest rate swaps$— $19 $63 
Total return swaps50 31 46 
Total in selling, general and administrative expense50 50 109 
Interest rate swaps— (3)20 
Cross-currency swaps(8)
Foreign exchange derivatives32 (27)
Credit contracts(17)— — 
Total in other income (expense), net
(29)28 
Total$57 $21 $137 
v3.25.4
FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2025
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 table below presents assets and liabilities measured at fair value on a recurring basis (in millions).
 
December 31, 2025
CategoryBalance Sheet LocationLevel 1Level 2Level 3Total
Assets
Cash equivalents:
Time depositsCash and cash equivalents$— $107 $— $107 
Equity securities:
Money market fundsCash and cash equivalents61 — — 61 
Mutual fundsPrepaid expenses and other current assets14 — — 14 
Company-owned life insurance contractsPrepaid expenses and other current assets— — 
Mutual fundsOther noncurrent assets205 — — 205 
Company-owned life insurance contractsOther noncurrent assets— 105 — 105 
Total$280 $214 $— $494 
Liabilities
Deferred compensation planAccrued liabilities$66 $— $— $66 
Deferred compensation planOther noncurrent liabilities682 — — 682 
Total$748 $— $— $748 
December 31, 2024
CategoryBalance Sheet LocationLevel 1Level 2Level 3Total
Assets
Cash equivalents:
Time depositsCash and cash equivalents$— $95 $— $95 
Equity securities:
Money market fundsCash and cash equivalents46 — — 46 
Mutual fundsPrepaid expenses and other current assets16 — — 16 
Company-owned life insurance contractsPrepaid expenses and other current assets— — 
Mutual fundsOther noncurrent assets216 — — 216 
Company-owned life insurance contractsOther noncurrent assets— 102 — 102 
Total$278 $198 $— $476 
Liabilities
Deferred compensation planAccrued liabilities$62 $— $— $62 
Deferred compensation planOther noncurrent liabilities650 — — 650 
Total$712 $— $— $712 
Equity securities include money market funds, investments in mutual funds held in separate trusts, which are owned as part of the Company’s supplemental retirement plans, and company-owned life insurance contracts. (See Note 17.) The fair value of the deferred compensation plan liability was determined based on the fair value of the related investments elected by employees. Company-owned life insurance contracts are recorded at their cash surrender value, which approximates fair value (Level 2).
In addition to the financial instruments listed in the tables above, the Company holds other financial instruments, including cash deposits, accounts receivable, accounts payable, senior notes, and a bridge loan. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of December 31, 2025 and 2024. 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 $15,205 million and $34,876 million as of December 31, 2025 and 2024, respectively.
The Company’s derivative financial instruments are discussed in Note 13, its investments with readily determinable fair value are discussed in Note 10, and the obligation for its revolving receivable program is discussed in Note 8.
v3.25.4
SHARE-BASED COMPENSATION
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
The Company has various incentive plans under which PRSUs, RSUs, and stock options have been issued. Upon exercise or vesting of stock awards, the Company issues new shares from its existing authorized but unissued shares. As of December 31, 2025, there were 136 million shares of common stock in reserves that were available for future issuance under the incentive plans.
Share-Based Compensation Expense
The table below presents the components of share-based compensation expense (in millions).
Year Ended December 31,
202520242023
PRSUs$239 $89 $65 
RSUs457 415 375 
Stock options73 53 60 
Total share-based compensation expense$769 $557 $500 
Tax benefit recognized$115 $96 $97 
Liability-classified share-based compensation awards include certain PRSUs. The Company recorded total liabilities for cash-settled and other liability-classified share-based compensation awards of $190 million and $66 million as of December 31, 2025 and 2024, respectively. The current portion of the liability for cash-settled and other liability-classified awards was $108 million and $27 million as of December 31, 2025 and 2024, respectively.
Share-Based Award Activity
PRSUs
The table below presents PRSU activity (in millions, except years and weighted-average grant date fair value).
PRSUsWeighted-
Average
Grant
Date Fair Value
Weighted-Average
Remaining
Contractual
Term
(years)
Aggregate
Fair
Value
Outstanding as of December 31, 20249.8 $11.20 1.2$104 
Granted4.8 $11.79 
Performance adjustments2.6 $8.64 
Converted(4.3)$9.57 $48 
Forfeited(0.1)$10.06 
Outstanding as of December 31, 202512.8 $11.87 1.0$370 
Vested and expected to vest as of December 31, 202512.8 $11.87 1.0$370 
Convertible as of December 31, 20252.5 $11.05 0.0$72 
As of December 31, 2025, there was $73 million of unrecognized compensation cost related to PRSUs.
RSUs
The table below presents RSU activity (in millions, except years and weighted-average grant date fair value).

RSUs
Weighted-
Average
Grant
Date Fair Value
Weighted-Average
Remaining
Contractual
Term
(years)
Aggregate
Fair
Value
Outstanding as of December 31, 202478.8 $11.41 1.6$835 
Granted43.0 $11.13 
Vested(31.5)$12.69 $388 
Forfeited(6.1)$10.42 
Outstanding as of December 31, 202584.2 $10.81 1.2$2,432 
Vested and expected to vest as of December 31, 202584.2 $10.81 1.2$2,432 
As of December 31, 2025, there was $457 million of unrecognized compensation cost related to RSUs, of which $11 million is related to cash settled RSUs. Stock settled RSUs are expected to be recognized over a weighted-average period of 1.2 years, and cash settled RSUs are expected to be recognized over a weighted-average period of 1.0 years.
Stock Options
The table below presents stock option activity (in millions, except years and weighted-average exercise price).
Stock OptionsWeighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
Outstanding as of December 31, 202436.0 $30.90 2.7$
Granted25.1 $10.31 
Exercised(2.1)$13.96 $12 
Forfeited(12.9)$30.02 
Outstanding as of December 31, 202546.1 $20.68 4.8$551 
Vested and expected to vest as of December 31, 202546.1 $20.68 4.8$551 
Exercisable as of December 31, 20258.5 $33.92 2.6$25 
The Company received cash payments from the exercise of stock options totaling $30 million, $0 million, and $0 million during 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $139 million of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 2.4 years.
The fair value of stock options is estimated using the Black-Scholes option-pricing model or a Monte Carlo Simulation. The weighted-average assumptions used to determine the fair value of stock options as of the date of grant during 2025, 2024 and 2023 were as follows.
Year Ended December 31,
202520242023
Black-Scholes option-pricing model
Risk-free interest rate3.97 %4.19 %4.35 %
Expected term (years)5.04.74.5
Expected volatility54.49 %54.37 %54.80 %
Monte Carlo simulation
Risk-free interest rate4.11 %N/AN/A
Expected term (years) (1)
5.0N/AN/A
Expected volatility55.34 %N/AN/A
(1) The expected term represents the period from the grant date through the performance period.
The weighted-average grant date fair value of options granted during 2025, 2024 and 2023 was $5.29, $4.30 and $7.43, respectively, per option. The total intrinsic value of options exercised during 2025, 2024 and 2023 was $12 million, $0 million, and $0 million, respectively.
v3.25.4
INCOME TAXES
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The domestic and foreign components of income (loss) before income taxes were as follows (in millions).
 Year Ended December 31,
 202520242023
Domestic$744 $(11,843)$(4,702)
Foreign895 455 839 
Income (loss) before income taxes$1,639 $(11,388)$(3,863)
The components of the provision for income taxes were as follows (in millions).
 Year Ended December 31,
 202520242023
Current:
Federal$1,025 $983 $753 
State and local131 321 57 
Foreign444 522 750 
1,600 1,826 1,560 
Deferred:
Federal(601)(1,488)(1,845)
State and local(113)(276)(548)
Foreign32 49 
(710)(1,732)(2,344)
Income tax expense (benefit)$890 $94 $(784)
We adopted ASU 2023-09 on a prospective basis beginning with the year ended December 31, 2025. A reconciliation of the Company’s effective income tax rate to the 21% U.S. federal statutory income tax rate for the year ended December 31, 2025, reflecting the adoption of ASU 2023-09, is presented below (in millions):
Year Ended December 31, 2025
U.S. federal statutory tax rate$344 21 %
State and local income taxes, net of federal income tax effects(1)
(14)(1)%
Foreign tax effects:
UK:
Statutory tax rate differential25 %
Tax incentives(102)(6)%
Other16 %
Canada withholding taxes61 %
Withholding taxes from other foreign jurisdictions(2)
256 15 %
Other foreign jurisdictions75 %
Effect of cross-border tax laws:
Foreign branch income 62 %
Other(19)(1)%
Tax credits:
Foreign tax credits(270)(16)%
Research and development credit(46)(3)%
Changes in valuation allowances242 15 %
Nontaxable or nondeductible items:
Compensation 89 %
Indemnification costs47 %
Transaction costs42 %
Other16 %
Change in unrecognized tax benefits84 %
Other adjustments(18)(1)%
Income tax expense$890 54 %
(1) State taxes in California contributed to the majority (greater than 50%) of the tax effect in this category.
(2) The majority of tax effect in this category is from Brazil (2%), China (2%), Mexico (2%), Spain (-1%), Italy (1%), Chile (1%), Australia (1%) and Argentina (1%).
A reconciliation of the Company’s effective income tax rate to the 21% U.S. federal statutory income tax rate for the years prior to the adoption of ASU 2023-09, is presented below:
Year Ended December 31,
20242023
Pre-tax income at U.S. federal statutory income tax rate$(2,391)21 %$(811)21 %
Non-deductible goodwill impairment1,881 (17)%— — %
State and local income taxes, net of federal tax benefit30 — %(388)10 %
Effect of foreign operations331 (3)%342 (9)%
Change in unrecognized tax benefits153 (1)%33 (1)%
Other, net90 (1)%40 (1)%
Income tax expense (benefit)$94 (1)%$(784)20 %
Income tax expense was $890 million and $94 million, and the Company’s effective tax rate was 54% and (1)% for 2025 and 2024, respectively. The increase in income tax expense in 2025 was primarily attributable to an increase in pre-tax book income, including a $2,959 million gain recognized in connection with the Tender Offers in 2025, as well as the absence of a non-cash goodwill impairment charge of $9,147 million recorded in 2024, the majority of which was not deductible for tax purposes. (See Note 5 and Note 11).
Income tax expense (benefit) was $94 million and $(784) million, and the Company’s effective tax rate was (1)% and 20% for 2024 and 2023, respectively. In 2024, the Company recorded a non-cash goodwill impairment charge of $9,147 million, the majority of which was not deductible for tax purposes. (See Note 5.) For the year ended December 31, 2024, the increase in income tax expense compared to the same period in 2023 was primarily attributable to a decrease in pre-tax book loss (excluding the non-cash goodwill impairment charge), an increase in state and local income taxes (including a state deferred tax adjustment recorded in the year ended December 31, 2024 and a one-time favorable release of an unrecognized state tax benefit in 2023 that did not recur in 2024), and a one-time favorable release of an unrecognized U.S. tax benefit in 2023 that did not recur in 2024.
Components of deferred income tax assets and liabilities were as follows (in millions).
 December 31,
 20252024
Deferred income tax assets:
Tax attribute carry-forward$2,894 $2,661 
Lease liabilities937 793 
Accrued liabilities and other1,144 1,180 
Total deferred income tax assets4,975 4,634 
Valuation allowance(2,398)(2,043)
Net deferred income tax assets2,577 2,591 
Deferred income tax liabilities:
Accounts receivable(248)(267)
Intangible assets(5,889)(6,916)
Right-of-use assets(756)(636)
Property and equipment(567)(273)
Content rights(272)(342)
Equity method investments and other outside basis differences(85)(61)
Other(521)(468)
Total deferred income tax liabilities(8,338)(8,963)
Net deferred income tax liabilities$(5,761)$(6,372)
As of December 31, 2025, the company maintains a valuation allowance of $2,398 million to offset deferred tax assets attributable to certain foreign net operating losses, and to a lesser extent U.S. federal and state tax attribute carryforwards.
The Company’s net deferred income tax assets and liabilities were reported on the consolidated balance sheets as follows (in millions).
 December 31,
 20252024
Noncurrent deferred income tax assets (included within other noncurrent assets)$622 $613 
Deferred income tax liabilities(6,383)(6,985)
Net deferred income tax liabilities$(5,761)$(6,372)
The Company’s loss carry-forwards were reported on the consolidated balance sheets as follows (in millions).
FederalStateForeign
Loss carry-forwards$56 $1,313 $7,903 
Deferred tax asset related to loss carry-forwards12 62 1,923 
Valuation allowance against loss carry-forwards(6)(56)(1,581)
Earliest expiration date of loss carry-forwards202820262026
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest and penalty amounts) is as follows (in millions).
 Year Ended December 31,
 202520242023
Beginning balance$2,371 $2,147 $1,929 
Additions based on tax positions related to the current year83 148 147 
Additions for tax positions of prior years123 250 195 
Additions for tax positions acquired in business combinations— — 247 
Reductions for tax positions of prior years(101)(76)(275)
Settlements(37)(30)(46)
Reductions due to lapse of statutes of limitations(123)(51)(62)
Changes due to foreign currency exchange rates40 (17)12 
Ending balance$2,356 $2,371 $2,147 
As of December 31, 2025, if the Company were to recognize the full amount of unrecognized tax benefits, $2,156 million would reduce the Company’s income tax expense and effective tax rate after giving effect to interest deductions and offsetting benefits from other tax jurisdictions.
The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Company is currently under audit by the Internal Revenue Service for its 2015 to 2017 and 2023 consolidated federal income tax returns. It is difficult to predict the final outcome or timing of resolution of any particular tax matter. With few exceptions, the Company is no longer subject to audit by any jurisdiction for years prior to 2008. Adjustments that arose from the completion of audits for certain tax years have been included in the change in unrecognized tax benefits in the table above.
As of December 31, 2025, 2024, and 2023, the Company had accrued approximately $856 million, $732 million, and $571 million, respectively, of total interest and penalties payable related to unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.
The 2017 Tax Cuts and Jobs Act features a participation exemption regime with current taxation of certain foreign income and imposed a mandatory repatriation toll tax on unremitted foreign earnings. As of December 31, 2025, the Company intends to remit certain previously undistributed foreign earnings to the United States. Accordingly, the Company has recorded deferred taxes for applicable foreign withholding associated with the expected remittance. The Company may continue to reinvest other foreign earnings outside of the United States. For those earnings, if any, that remain indefinitely reinvested, additional taxes would be recognized upon distribution. Determination of the amount of any unrecognized deferred income tax liability related to such earnings is not practicable.
The Organisation for Economic Co-operation and Development’s (“OECD”) Pillar Two Global Anti-Base Erosion (“GloBE”) model rules, issued under the OECD Inclusive Framework on Base Erosion and Profit Shifting, introduce a global minimum tax of 15% applicable to multinational enterprise groups with consolidated financial statement revenue in excess of €750 million. Numerous foreign jurisdictions have already enacted tax legislation based on the GloBE rules, with some effective as early as January 1, 2024. As of December 31, 2025, we recognized an immaterial income tax expense for Pillar Two GloBE minimum tax. The Company is continuously monitoring the evolving application of this legislation and assessing its potential impact on our future tax liability.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States, introducing a broad range of tax reform provisions. The impact of the OBBBA primarily affected the Company’s deferred tax liabilities and has been reflected in the Company’s financial statements for the period ended December 31, 2025. The Company continues to monitor regulatory guidance related to the implementation of the OBBBA and will update its tax positions as necessary in future periods.
v3.25.4
RETIREMENT SAVINGS PLANS
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
RETIREMENT SAVINGS PLANS RETIREMENT SAVINGS PLANS
The Company has defined contribution, defined benefit, and other savings plans for the benefit of its employees that meet eligibility requirements.
Defined Contribution Plans
Eligible employees may contribute a portion of their compensation to the plans, which may be subject to certain statutory limitations. The Company contributes to certain of the plans to either match qualifying employee contributions or as discretionary contributions. The Company made total contributions of $206 million, $204 million, and $210 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company’s contributions were recorded in cost of revenues and selling, general and administrative expense on the consolidated statements of operations.
Executive Deferred Compensation Plans
The Company has deferred compensation plans through which certain senior-level employees may elect to defer a portion of their eligible compensation. Distributions from the deferred compensation plans are generally made following separation from service or other events as specified in the plan. In certain plans, the Company may make discretionary contributions to employee accounts. While these plans are unfunded, the Company has established separate rabbi trusts used to provide for certain of these benefits. The accounts of the separate rabbi trusts are included in the Company’s consolidated financial statements. The investments are included in prepaid expenses and other current assets and other noncurrent assets on the consolidated balance sheets. The deferred compensation obligation is included in accrued liabilities and other noncurrent liabilities in the consolidated balance sheets. The values of the investments and deferred compensation obligation are recorded at fair value. Changes in the fair value of the investments are included as a component of other income (expense), net, on the consolidated statements of operations. Changes in the fair value of the deferred compensation obligation are included as a component of selling, general and administrative expenses on the consolidated statements of operations. (See Note 14 and Note 18.)
Multiemployer Benefit Plans
The Company contributes to various multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer pension plans in that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and (iii) actions taken by a participating employer that lead to a deterioration of the financial health of a multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan being borne by its remaining participating employers. The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to both active and retired participants. The Company does not participate in any multiemployer benefit plans that are individually significant to the Company.
The following table summarizes the Company’s contributions to multiemployer pension and health and welfare benefit plans (in millions).
Year Ended December 31,
202520242023
Pension benefits$102 $115 $128 
Health and welfare benefits226 248 153 
Total contributions$328 $363 $281 
Defined Benefit Plans
The Company participates in and/or sponsors a qualified defined benefit pension plan that covers certain U.S. based employees and several non-U.S. defined benefit pension plans. The Company’s pension plans consist of both funded and unfunded plans. Plan provisions vary by plan and by country, and all plans are noncontributory. At a plan level, net asset positions are recorded in other noncurrent assets, and net liability positions are recorded in accrued liabilities and/or other noncurrent liabilities on the consolidated balance sheets.
Discount rates, long-term rate of return on plan assets, increases in compensation levels, and mortality rates are key assumptions used in determining the benefit obligation. The table below describes how the assumptions are determined.
AssumptionDescription
Discount rateBased on a bond portfolio approach that includes high-quality debt instruments with maturities matching the Company’s expected benefit payments from the plans.
Long-term rate of return on plan assets
Based on the weighted-average expected rate of return and capital market forecasts for each asset class employed and also considers the Company’s historical compounded return on plan assets for 10 and 15-year periods.
Increase in compensation levelsBased on past experience and the near-term outlook.
Mortality Various mortality tables adjusted and projected using mortality improvement rates.
Net Periodic Pension Cost
Expense recognized for the pension plans is based upon actuarial valuations. Inherent in those valuations are key assumptions, including discount rates and, where applicable, expected returns on assets. The service cost component of net periodic pension cost is recorded in operating expenses on the consolidated statements of operations, while the remaining components are recorded in other income (expense), net. Net periodic pension cost was not material for the years ended December 31, 2025, 2024 and 2023.
Obligations and Funded Status
The following tables present information about plan assets and obligations of the pension plans based upon a valuation as of December 31, 2025 and 2024, respectively (in millions).
December 31, 2025December 31, 2024
Accumulated benefit obligation$716 $683 
Change in projected benefit obligation:
Projected benefit obligation at beginning of year $683 $753 
Service cost
Interest cost35 33 
Benefits paid(40)(45)
Actuarial losses (gains)18 (48)
Curtailments(1)— 
Settlement charges(14)(2)
Effects of foreign currency exchange rate changes and other33 (10)
Projected benefit obligation at end of year716 683 
Plan assets:
Fair value at beginning of year471 540 
Actual return on plan assets10 (46)
Company contributions35 32 
Benefits paid(40)(45)
Settlement charges(14)(3)
Effects of foreign currency exchange rate changes and other31 (7)
Fair value at end of year493 471 
Under funded status$(223)$(212)
Amounts recognized as assets and liabilities on the consolidated balance sheets:
Other noncurrent assets$34 $65 
Accrued liabilities(27)(29)
Other noncurrent liabilities(230)(248)
Total$(223)$(212)
Amounts recognized in accumulated other comprehensive loss consist of:
Prior service cost$$— 
Net loss149 104 
Total$152 $104 
The weighted average assumptions used to determine benefit obligations of the pension plans were as follows.
December 31, 2025December 31, 2024
Discount rate5.06 %5.20 %
Rate of compensation increases3.30 %3.16 %
Plan Assets
The Company’s investment policy is to maximize the total rate of return on plan assets to meet the long-term funding obligations of the pension plans. There are no restrictions on the types of investments held in the pension plans, which are invested using a combination of active management and passive investment strategies. Risk is controlled through diversification among multiple asset classes, managers, styles, and securities. Risk is further controlled both at the manager and asset class levels by assigning return targets and evaluating performance against these targets. The following table presents the weighted average pension plans asset allocations by asset category (in millions).
December 31, 2025
Investment TypeTargetActual
Debt securities%%
Equity securities10 %%
Fixed income securities72 %80 %
Multi-asset credit fund%%
Real assets%%
Hedge funds%— %
Cash%%
Total100 %100 %
Fair Value Measurements
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 14 for a discussion of the fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value (in millions).
December 31, 2025
TotalLevel 1Level 2Level 3
Debt securities$22 $22 $— $— 
Equity securities24 24 — — 
Fixed income securities394 — — 394 
Multi-asset credit fund32 — 32 — 
Cash— — 
Total plan assets measured at fair value$480 $54 $32 $394 
Assets held at net asset value practical expedient
Real assets13 
Total plan assets$493 
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2025 (in millions).
Fixed Income Funds
Fair value at beginning of year$66 
Unrealized gains
Purchases, issuances, sales and settlements, net315 
Effects of foreign currency exchange rate changes and other
Balance at end of year$394 
December 31, 2024
TotalLevel 1Level 2Level 3
Debt securities$19 $19 $— $— 
Equity securities55 25 30 — 
Fixed income securities444 22 356 66 
Multi-asset credit fund77 — 77 — 
Cash— — 
Total plan assets measured at fair value$601 $72 $463 $66 
Assets held at net asset value practical expedient
Real assets$16 
Hedge funds44 
Total assets held at net asset value practical expedient$60 
Liabilities:
Derivatives(190)
Total plan assets$471 
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2024 (in millions).
Fixed Income Funds
Fair value at beginning of year$76 
Unrealized losses(5)
Purchases, issuances, sales and settlements, net(5)
Balance at end of year$66 
Estimated Benefit Payments
The following table presents the estimated future benefit payments expected to be paid out for the defined benefits plans over the next ten years (in millions).
Pension Plans
2026$51 
202745 
202848 
202948 
203047 
Thereafter235 
v3.25.4
SUPPLEMENTAL DISCLOSURES
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL DISCLOSURES SUPPLEMENTAL DISCLOSURES
Property and equipment
Property and equipment consisted of the following (in millions).
 December 31,
 Useful Lives20252024
Equipment, furniture, fixtures and other (a)
3 - 7 years
$3,071 $2,613 
Capitalized software costs
1 - 5 years
3,583 3,076 
Land, buildings and leasehold improvements (b)
15 - 30 years
4,038 3,832 
Property and equipment, at cost10,692 9,521 
Accumulated depreciation(4,826)(4,035)
5,866 5,486 
Assets under construction819 601 
Property and equipment, net$6,685 $6,087 
(a) Property and equipment includes assets acquired under finance lease arrangements. Assets acquired under finance lease arrangements are generally amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases. (See Note 12.)
(b) Land has an indefinite life and is not depreciated. Leasehold improvements generally have an estimated useful life equal to the lease term.
Capitalized software costs are for internal use. The net book value of capitalized software costs was $1,352 million and $1,246 million as of December 31, 2025 and 2024, respectively.
Depreciation expense for property and equipment totaled $1,079 million, $1,102 million and $1,097 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Prepaid expenses and other current assets
Prepaid expenses and other current assets consisted of the following (in millions).
December 31,
20252024
Production receivables$1,072 $979 
Content rights and prepaid license fees322 784 
Other current assets1,952 2,056 
Total prepaid expenses and other current assets$3,346 $3,819 
Accrued liabilities
Accrued liabilities consisted of the following (in millions).
December 31,
20252024
Accrued participation and residuals$2,796 $2,953 
Accrued production and content rights payable1,675 1,758 
Accrued payroll and related benefits1,588 1,495 
Accrued withholding taxes668 644 
Other accrued liabilities2,899 3,588 
Total accrued liabilities$9,626 $10,438 
Other noncurrent liabilities
Other noncurrent liabilities consisted of the following (in millions).
December 31,
20252024
Operating lease liabilities$3,226 $2,731 
Other noncurrent liabilities8,382 7,339 
Total other noncurrent liabilities$11,608 $10,070 
Other Income (Expense), net
Other income (expense), net, consisted of the following (in millions).
 Year Ended December 31,
 202520242023
Foreign currency losses, net$$(323)$(173)
(Losses) gains on derivative instruments, net21 (9)28 
Change in the value of investments with readily determinable fair value10 (1)37 
Change in the value of equity investments without readily determinable fair value(4)(11)(73)
Gain on sale of equity method investments — 194 — 
Interest income206 210 179 
Indemnification receivable accrual(171)77 (53)
Other income, net(5)13 26 
Total other income (expense), net
$65 $150 $(29)
Supplemental Cash Flow Information
We adopted ASU 2023-09 on a prospective basis beginning with the year ended December 31, 2025. Cash paid for taxes, reflecting the adoption of ASU 2023-09 for the year ended December 31, 2025, cash paid for taxes for the years ended December 31, 2024 and 2023, and other supplemental cash flow information is presented below (in millions):
Year Ended December 31,
202520242023
Cash paid for taxes, net
Federal taxes$1,287 
State taxes76 
Foreign taxes563 
Total$1,926 $1,113 $1,440 
Cash paid for interest$2,295 $1,996 $2,237 
Non-cash investing and financing activities:
Accrued purchases of property and equipment$38 $36 $41 
Assets acquired under finance lease and other arrangements320 390 235 
Non-cash settlement of PRSU awards115 59 35 
Non-cash consideration related to the sale and purchase of the Ranch and Burbank Studios Lots— — 350 
Non-cash consideration related to the transaction agreements with JCOM— — 70 
Cash, Cash Equivalents, and Restricted Cash
 December 31, 2025December 31, 2024
Cash and cash equivalents$4,566 $5,312 
Restricted cash - other current assets (a)
104 
Total cash, cash equivalents, and restricted cash $4,570 $5,416 
(a) Restricted cash at December 31, 2024 primarily included cash posted as collateral related to the Company’s revolving receivables program. (See Note 8.)
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. 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.
Changes in confirmed accrued content producer liabilities were as follows (in millions). 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.
Year Ended December 31,
20252024
Obligations outstanding at the beginning of the year$307 $338 
Invoices confirmed during the year678 949 
Invoices paid during the year(726)(980)
Foreign currency translation and other adjustments— 
Obligations outstanding at the end of the year$260 $307 
Venu Sports
On February 6, 2024, the Company announced that it would enter into a joint venture with ESPN, a subsidiary of The Walt Disney Company (“Disney”), and Fox Corporation (“Fox”) to form Venu Sports, a sports-centric streaming service in the United States. On February 20, 2024, FuboTV Inc. and FuboTV Media Inc. (collectively, “Fubo”) filed a lawsuit against Disney, including certain affiliates, Fox, and WBD (collectively, the “Defendants”) in the U.S. District Court for the Southern District of New York alleging claims under federal and New York antitrust laws. The Defendants reached a settlement with Fubo related to Fubo’s antitrust claims and collectively paid $220 million to Fubo in January 2025, of which the Company’s share was $55 million.
On January 10, 2025, the Defendants announced their decision to discontinue the Venu Sports joint venture and not launch its streaming service effective immediately.
Accumulated Other Comprehensive Loss
The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions).
Currency TranslationDerivative AdjustmentsPension PlansAccumulated
Other
Comprehensive Income (Loss)
December 31, 2022$(1,498)$14 $(39)$(1,523)
Other comprehensive income (loss) before reclassifications
799 16 (21)794 
Reclassifications from accumulated other comprehensive loss to net income
— (12)— (12)
Other comprehensive income (loss)799 (21)782 
December 31, 2023(699)18 (60)(741)
Other comprehensive income (loss) before reclassifications(358)32 (14)(340)
Reclassifications from accumulated other comprehensive loss to net income
49 (35)— 14 
Other comprehensive income (loss)(309)(3)(14)(326)
December 31, 2024(1,008)15 (74)(1,067)
Other comprehensive income (loss) before reclassifications664 16 (30)650 
Reclassifications from accumulated other comprehensive loss to net income
— 10 
Other comprehensive income (loss)666 24 (30)660 
December 31, 2025$(342)$39 $(104)$(407)
v3.25.4
REDEEMABLE NONCONTROLLING INTERESTS
12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
REDEEMABLE NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS
Redeemable noncontrolling interests are presented outside of permanent equity on the Company’s consolidated balance sheets when the put right is outside of the Company’s control. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates. Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive income (loss). Such currency translation adjustments to redemption value are allocated to the Company’s stockholders only. Redeemable noncontrolling interest adjustments of carrying value to redemption value are reflected in retained earnings, unless there is an accumulated deficit, in which case the adjustments are reflected in additional paid-in capital. The adjustment of carrying value to the redemption value that reflects a redemption in excess of fair value is included as an adjustment to income from continuing operations available to the Company’s stockholders in the calculation of earnings per share. (See Note 3.) The table below summarizes the Company’s redeemable noncontrolling interests balances (in millions).
December 31,
20252024
Discovery Family$— $86 
Other 19 23 
Total$19 $109 
The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions).
December 31,
202520242023
Beginning balance$109 $165 $318 
Cash distributions to redeemable noncontrolling interests(12)(35)(30)
Reclassification of redeemable noncontrolling interest to noncontrolling interest(74)— (22)
Redemption of redeemable noncontrolling interest— — (111)
Comprehensive income adjustments:
Net (loss) income attributable to redeemable noncontrolling interests(2)(42)
Currency translation on redemption values— — (3)
Retained earnings adjustments:
Adjustments of carrying value to redemption value (redemption value does not equal fair value)(1)18 
Adjustments of carrying value to redemption value (redemption value equals fair value)(1)
Ending balance$19 $109 $165 
The Company’s significant redeemable noncontrolling interests are described below.
Discovery Family
Hasbro Inc. (“Hasbro”) had the right to put the entirety of its remaining 40% interest in Discovery Family to the Company at any time during the one-year period beginning December 31, 2021, or in the event the Company’s performance obligation related to Discovery Family was not met. Embedded in the redeemable noncontrolling interest was a call right that was exercisable for one year after December 31, 2021. Neither the put nor the call was exercised in 2022. In December 2022, Hasbro and WBD signed an amendment to the previous agreement extending the put-call election to the period January 31, 2025 to March 31, 2025. Hasbro did not exercise its right by the election period expiration date of March 31, 2025 and Hasbro’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheets.
MTG
GoldenTree acquired a put right that required the Company to either purchase all of GoldenTree’s noncontrolling 32.5% interest in the joint venture at fair value or participate in an initial public offering for the joint venture. In 2022, GoldenTree exercised its put right and in 2023, the Company finalized its purchase of GoldenTree’s 32.5% noncontrolling interest for $49 million.
Other
In August 2023, the Company and JCOM Co., Ltd. (“JCOM”) executed a series of transaction agreements to which the Company and JCOM each contributed certain rights, liabilities, or rights via license agreements to Discovery Japan, Inc. (“JVCo”), an existing 80/20 joint venture between the Company and JCOM, in exchange for new common shares of JVCo, resulting in the Company and JCOM owning 51% and 49% of JVCo, respectively. Retaining controlling financial interest subsequent to the transaction, the Company continues to consolidate the joint venture. As the terms of the agreement no longer incorporate JCOM’s option to put its noncontrolling interest to the Company, JCOM’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheet.
NONCONTROLLING INTEREST
In 2025, the Company contributed a 70% interest in its music catalog to a joint venture (the “Joint Venture”) with Cutting Edge Group in exchange for net proceeds of $601 million. The Company retained a controlling financial interest and consolidated the Joint Venture as a VIE. The Company has determined that it is the primary beneficiary of the Joint Venture as the Company has certain operational rights that significantly impact the economic performance of the business including exploitation of the catalog works and selection of the administrator. As the primary beneficiary, the Company includes the Joint Venture’s assets, liabilities and results of operations in the Company’s consolidated financial statements. As of December 31, 2025, the carrying amounts of assets and liabilities of the consolidated VIE were not material. In addition to the initial equity ownership, Cutting Edge Group may receive up to an additional 10% economic interest in the venture based on the results of certain operational metrics. Ownership interests attributable to the noncontrolling owner are presented as noncontrolling interests on the Company’s consolidated financial statements. Under the terms of the agreement, the noncontrolling owner cannot force a redemption outside of the Company’s control. As such, the noncontrolling interests in the Joint Venture are reflected as a component of permanent equity in the Company’s consolidated financial statements.
The Company has a controlling interest in the TV Food Network Partnership (the “Partnership”), which includes the Food Network and Cooking Channel. Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company holds 80% of the voting interest and 68.7% of the economic interest in the Partnership. During the fourth quarter of 2025, the Partnership agreement was extended and specified a dissolution date of December 31, 2026. If the term of the Partnership is not extended prior to the dissolution date of December 31, 2026, the Partnership agreement permits the Company, as holder of 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests. Ownership interests attributable to the noncontrolling owner are presented as noncontrolling interests on the Company’s consolidated financial statements. Under the terms of the Partnership agreement, the noncontrolling owner cannot force a redemption outside of the Company’s control. As such, the noncontrolling interests in the Partnership are reflected as a component of permanent equity in the Company’s consolidated financial statements.
v3.25.4
NONCONTROLLING INTEREST
12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
NONCONTROLLING INTEREST REDEEMABLE NONCONTROLLING INTERESTS
Redeemable noncontrolling interests are presented outside of permanent equity on the Company’s consolidated balance sheets when the put right is outside of the Company’s control. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates. Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive income (loss). Such currency translation adjustments to redemption value are allocated to the Company’s stockholders only. Redeemable noncontrolling interest adjustments of carrying value to redemption value are reflected in retained earnings, unless there is an accumulated deficit, in which case the adjustments are reflected in additional paid-in capital. The adjustment of carrying value to the redemption value that reflects a redemption in excess of fair value is included as an adjustment to income from continuing operations available to the Company’s stockholders in the calculation of earnings per share. (See Note 3.) The table below summarizes the Company’s redeemable noncontrolling interests balances (in millions).
December 31,
20252024
Discovery Family$— $86 
Other 19 23 
Total$19 $109 
The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions).
December 31,
202520242023
Beginning balance$109 $165 $318 
Cash distributions to redeemable noncontrolling interests(12)(35)(30)
Reclassification of redeemable noncontrolling interest to noncontrolling interest(74)— (22)
Redemption of redeemable noncontrolling interest— — (111)
Comprehensive income adjustments:
Net (loss) income attributable to redeemable noncontrolling interests(2)(42)
Currency translation on redemption values— — (3)
Retained earnings adjustments:
Adjustments of carrying value to redemption value (redemption value does not equal fair value)(1)18 
Adjustments of carrying value to redemption value (redemption value equals fair value)(1)
Ending balance$19 $109 $165 
The Company’s significant redeemable noncontrolling interests are described below.
Discovery Family
Hasbro Inc. (“Hasbro”) had the right to put the entirety of its remaining 40% interest in Discovery Family to the Company at any time during the one-year period beginning December 31, 2021, or in the event the Company’s performance obligation related to Discovery Family was not met. Embedded in the redeemable noncontrolling interest was a call right that was exercisable for one year after December 31, 2021. Neither the put nor the call was exercised in 2022. In December 2022, Hasbro and WBD signed an amendment to the previous agreement extending the put-call election to the period January 31, 2025 to March 31, 2025. Hasbro did not exercise its right by the election period expiration date of March 31, 2025 and Hasbro’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheets.
MTG
GoldenTree acquired a put right that required the Company to either purchase all of GoldenTree’s noncontrolling 32.5% interest in the joint venture at fair value or participate in an initial public offering for the joint venture. In 2022, GoldenTree exercised its put right and in 2023, the Company finalized its purchase of GoldenTree’s 32.5% noncontrolling interest for $49 million.
Other
In August 2023, the Company and JCOM Co., Ltd. (“JCOM”) executed a series of transaction agreements to which the Company and JCOM each contributed certain rights, liabilities, or rights via license agreements to Discovery Japan, Inc. (“JVCo”), an existing 80/20 joint venture between the Company and JCOM, in exchange for new common shares of JVCo, resulting in the Company and JCOM owning 51% and 49% of JVCo, respectively. Retaining controlling financial interest subsequent to the transaction, the Company continues to consolidate the joint venture. As the terms of the agreement no longer incorporate JCOM’s option to put its noncontrolling interest to the Company, JCOM’s noncontrolling interest was reclassified from redeemable noncontrolling interest to noncontrolling interest outside of stockholders’ equity on the Company’s consolidated balance sheet.
NONCONTROLLING INTEREST
In 2025, the Company contributed a 70% interest in its music catalog to a joint venture (the “Joint Venture”) with Cutting Edge Group in exchange for net proceeds of $601 million. The Company retained a controlling financial interest and consolidated the Joint Venture as a VIE. The Company has determined that it is the primary beneficiary of the Joint Venture as the Company has certain operational rights that significantly impact the economic performance of the business including exploitation of the catalog works and selection of the administrator. As the primary beneficiary, the Company includes the Joint Venture’s assets, liabilities and results of operations in the Company’s consolidated financial statements. As of December 31, 2025, the carrying amounts of assets and liabilities of the consolidated VIE were not material. In addition to the initial equity ownership, Cutting Edge Group may receive up to an additional 10% economic interest in the venture based on the results of certain operational metrics. Ownership interests attributable to the noncontrolling owner are presented as noncontrolling interests on the Company’s consolidated financial statements. Under the terms of the agreement, the noncontrolling owner cannot force a redemption outside of the Company’s control. As such, the noncontrolling interests in the Joint Venture are reflected as a component of permanent equity in the Company’s consolidated financial statements.
The Company has a controlling interest in the TV Food Network Partnership (the “Partnership”), which includes the Food Network and Cooking Channel. Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company holds 80% of the voting interest and 68.7% of the economic interest in the Partnership. During the fourth quarter of 2025, the Partnership agreement was extended and specified a dissolution date of December 31, 2026. If the term of the Partnership is not extended prior to the dissolution date of December 31, 2026, the Partnership agreement permits the Company, as holder of 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests. Ownership interests attributable to the noncontrolling owner are presented as noncontrolling interests on the Company’s consolidated financial statements. Under the terms of the Partnership agreement, the noncontrolling owner cannot force a redemption outside of the Company’s control. As such, the noncontrolling interests in the Partnership are reflected as a component of permanent equity in the Company’s consolidated financial statements.
v3.25.4
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
In the normal course of business, the Company enters into transactions with related parties. Related party transactions include revenues and expenses for content and services provided to or acquired from equity method investees, entities that share common directorship, or minority partners of consolidated subsidiaries.
The table below presents a summary of the transactions with related parties (in millions).
Year Ended December 31,
202520242023
Revenues and service charges (a)
$773 $1,404 $2,790 
Expenses$267 $268 $357 
Distributions to noncontrolling interests and redeemable noncontrolling interests$198 $193 $301 
(a) The decrease in revenue and service charges in 2025 and 2024 is primarily attributable to transactions with certain entities that are no longer considered related parties, as such entities and the Company ceased to share common directorship in 2025 and 2024.
The table below presents receivables due from and payables due to related parties (in millions).
December 31,
20252024
Receivables$116 $254 
Payables$17 $13 
In October 2024, the Company sold its minority interests in Formula E to Liberty Global, a related party, and recorded a $61 million gain not included in the table above. (See Note 4.)
v3.25.4
COMMITMENTS, CONTINGENCIES, AND GUARANTEES
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS, CONTINGENCIES, AND GUARANTEES COMMITMENTS, CONTINGENCIES, AND GUARANTEES
Commitments
In the normal course of business, the Company enters into various commitments, which primarily include programming and talent arrangements, operating and finance leases (See Note 12), arrangements to purchase various goods and services, long-term debt (see Note 11), pension funding and payments (See Note 17), and future funding commitments to equity method investees (See Note 10) (in millions).
Year Ending December 31,ContentOther Purchase ObligationsOther Employee ObligationsTotal
2026$5,736 $1,384 $478 $7,598 
20274,333 1,082 301 5,716 
20283,354 475 167 3,996 
20291,688 37 72 1,797 
20301,641 33 53 1,727 
Thereafter2,993 16 54 3,063 
Total$19,745 $3,027 $1,125 $23,897 
The commitments disclosed above exclude liabilities recognized on the consolidated balance sheets.
Content purchase obligations include commitments associated with third-party producers and sports associations for content that airs on our television networks and streaming services. Production and licensing contracts generally require the purchase of a specified number of episodes and payments during production or over the term of a license, and include both programs that have been delivered and are available for airing and programs that have not yet been produced or sporting events that have not yet taken place. If the content is ultimately never produced, our commitments expire without obligation.
Other purchase obligations include agreements with certain vendors and suppliers for the purchase of goods and services whereby the underlying agreements are enforceable, legally binding and specify all significant terms. Significant purchase obligations include transmission services, television rating services, marketing commitments and research, equipment purchases, and information technology and other services. Some of these contracts do not require the purchase of fixed or minimum quantities and generally may be terminated with a 30-day to 60-day advance notice without penalty, and are not included in the table above past the 30-day to 60-day advance notice period. Other purchase obligations also include future funding commitments to equity method investees. Although the Company had funding commitments to equity method investees as of December 31, 2025, the Company may also provide uncommitted additional funding to its equity method investments in the future. (See Note 10.)
Other employee obligations are primarily related to employment agreements with creative talent for certain broadcast networks.
Six Flags Guarantee
In connection with the WarnerMedia Business’ former investment in the Six Flags (as defined below) theme parks located in Georgia and Texas (collectively, the “Parks”), in 1997, certain subsidiaries of the Company agreed to guarantee (the “Six Flags Guarantee”) certain obligations of the partnerships that hold the Parks (the “Partnerships”) for the benefit of the limited partners in such Partnerships, including annual payments made to the Parks or to the limited partners and additional obligations at the end of the respective terms for the Partnerships in 2027 and 2028 (the “Guaranteed Obligations”). Six Flags Entertainment Corporation (formerly known as Six Flags, Inc. and Premier Parks Inc.) (“Six Flags”), which has the controlling interest in the Parks, has agreed, pursuant to a subordinated indemnity agreement (the “Subordinated Indemnity Agreement”), to guarantee the performance of the Guaranteed Obligations when due and to indemnify the Company, among others, if the Six Flags Guarantee is called upon. If Six Flags defaults on its indemnification obligations, the Company has the right to acquire control of the managing partner of the Parks. Six Flags’ obligations to the Company are further secured by its interest in all limited partnership units held by Six Flags.
In December 2024, Six Flags provided notice of its exercise of the option related to the theme parks located in Georgia that requires the redemption of all the limited partnership units that Six Flags does not then own in the Georgia Partnership in January 2027. Pursuant to the exercise of the option, all of such outstanding limited partnership interests will be redeemed, and Six Flags will also acquire certain related entity general partnership and managing member interests. In January 2026, Six Flags declined to exercise its option related to the theme parks in Texas.
Based on the Company’s evaluation of the current facts and circumstances surrounding the Guaranteed Obligations and the Subordinated Indemnity Agreement, it is unable to predict the loss, if any, that may be incurred under the Guaranteed Obligations, and no liability for the arrangements has been recognized as of December 31, 2025. Because of the specific circumstances surrounding the arrangements and the fact that no active or observable market exists for this type of financial guarantee, the Company is unable to determine a current fair value for the Guaranteed Obligations and related Subordinated Indemnity Agreement. The aggregate gross undiscounted estimated future cash flow requirements covered by the Six Flags Guarantee over the remaining term (through 2028) are $590 million. To date, no payments have been made by the Company pursuant to the Six Flags Guarantee.
Contingencies
Other Contingent Commitments
Other contingent commitments primarily include contingent payments for post-production term advance obligations on a certain co-financing arrangement, as well as operating lease commitment guarantees, letters of credit, bank guarantees, and surety bonds, which generally support performance and payments for a wide range of global contingent and firm obligations, including insurance, litigation appeals, real estate leases, and other operational needs. The Company’s other contingent commitments at December 31, 2025 were $85 million.
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. (See Note 19.)
Legal Matters
From time to time, in the normal course of its operations, the Company is subject to various litigation matters and claims, including claims related to employees, stockholders, vendors, other business partners, government regulations, or intellectual property, as well as disputes and matters involving counterparties to contractual agreements. A determination as to the amount of the accrual required for such contingencies is highly subjective and requires judgment about future events.
The Company may not currently be able to estimate the reasonably possible loss or range of loss for certain matters until developments in such matters have provided sufficient information to support an assessment of such loss. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual for such contingencies is made and no loss or range of loss is disclosed, including with respect to the matters noted below. Although the outcome of these matters cannot be predicted with certainty and the impact of the final resolution of these matters on the Company’s results of operations in a particular subsequent reporting period is not known, management does not currently believe that the resolution of these matters will have a material adverse effect on the Company’s future consolidated financial position, future results of operations, or cash flows.
PSKY Complaint. On January 12, 2026, PSKY filed a complaint in the Delaware Court of Chancery against our board of directors (and our Chair Emeritus, Dr. Malone) and the Company. The suit asserts a claim for breach of fiduciary duty against the directors, alleging that our board of directors failed to disclose material information in both the Solicitation/Recommendation Statement on Schedule 14D-9, filed on December 17, 2025, and the amendment to that Schedule 14D-9, filed on January 7, 2026. PSKY also requested that the court expedite the case in light of the then-current expiration date of PSKY’s tender offer on January 21, 2026. On January 15, 2026, the Delaware Court of Chancery denied PSKY’s request for expedition, stating that PSKY failed to demonstrate that it would suffer any irreparable harm in its capacity as a stockholder of the Company if the litigation was not expedited, among other reasons. On February 2, 2026, the Company moved to dismiss the complaint. Pursuant to the PSKY Merger Agreement, PSKY will file a voluntary notice of dismissal with prejudice with respect to the complaint, within one business day of the execution of the PSKY Merger Agreement, and promptly take any further actions required to dismiss with prejudice the complaint.
Securities Class Action. On November 25, 2024, a securities class action complaint was filed in the United States District Court for the Southern District of New York (Collura v. Warner Bros. Discovery, Inc., No. 1:24-cv-09027-KPF). The complaint named WBD, Gunnar Wiedenfels, and David M. Zaslav as defendants and asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder. On February 21, 2025, the court appointed co-lead plaintiffs (Anthony Yuson and Michael Steinberg) and co-lead counsel (Pomerantz LLP and The Rosen Law Firm, P.A.) to represent the putative class. On May 7, 2025, the lead plaintiffs filed a First Amended Complaint against WBD, Gunnar Wiedenfels, and David M. Zaslav. The First Amended Complaint generally alleges that, between February 23, 2024 and August 7, 2024, defendants made false and misleading statements in SEC filings and other public disclosures relating to WBD’s negotiations with the National Basketball Association (“NBA”) concerning its contractual rights to broadcast the NBA’s content and the potential impact of a failure to renew the contract on its business, in violation of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, and seeks damages and other relief. The defendants moved to dismiss on July 11, 2025. As of September 24, 2025, the motion has been fully briefed and is pending before the court.
Consolidated Derivative Action. Between December 20, 2024 and January 14, 2025, four shareholder derivative complaints were filed in the United States District Court for the Southern District of New York (Roy v. Zaslav et al., No. 1:24-cv-09856-AT, Hollin v. Zaslav et al., No. 1:24-cv-09885-AT, KO v. Zaslav et al., No. 1:25-cv-00114-AT, and Herman, III v. Chen et al., No. 1:25-cv-00352-AT). Each complaint names certain current and former directors and officers of WBD as defendants and WBD as nominal defendant, and each complaint seeks damages and other relief. The complaints generally assert claims against the defendants, derivatively on behalf of WBD, for alleged breaches of fiduciary duty based on the same facts alleged in the Collura securities case described above. The complaints assert various common law causes of action, including breach of fiduciary duties, aiding and abetting breach of fiduciary duties, abuse of control, unjust enrichment, gross mismanagement, and waste of corporate assets, as well claims for violations of Sections 14(a), 10(b), and 21D of the Exchange Act. On January 21, 2025, the court consolidated the four actions for all purposes under Case No. 1:24-cv-09856-AT, captioned as In re Warner Bros. Discovery, Inc. Derivative Litigation (the “Consolidated Derivative Action”). On February 19, 2025, the Court stayed the Consolidated Derivative Action pending resolution of a final decision on all motions to dismiss the operative complaint in the Collura securities action.
Guarantees
There were no guarantees recorded under ASC 460 as of December 31, 2025 and 2024.
In the normal course of business, the Company may provide or receive indemnities that are intended to allocate certain risks associated with business transactions. Similarly, the Company may remain contingently liable for certain obligations of a divested business in the event that a third party does not fulfill its obligations under an indemnification obligation. The Company records a liability for its indemnification obligations and other contingent liabilities when probable and estimable. There were no material amounts for indemnifications or other contingencies recorded as of December 31, 2025 and 2024.
v3.25.4
REPORTABLE SEGMENTS
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company’s operating segments are determined based on: (i) financial information reviewed by its CODM, the CEO, (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
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 generally records inter-segment transactions of content licenses at market value. The Company does not report assets by segment because it is not used by the CODM to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its 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;
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 CODM uses this measure to assess the operating results and performance of the 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. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial.
The tables below present summarized financial information for each of the Company’s reportable segments, corporate, and inter-segment eliminations (in millions).
Revenues
Year Ended December 31,
202520242023
Streaming$10,876 $10,313 $10,154 
Studios12,619 11,607 12,192 
Global Linear Networks17,656 20,175 21,244 
Corporate— 
Inter-segment eliminations (3,857)(2,782)(2,269)
Total revenues$37,296 $39,321 $41,321 
Reconciliation of Revenues to Segment Adjusted EBITDA
Year Ended December 31, 2025
StreamingStudiosGlobal Linear Networks
Revenues$10,876 $12,619 $17,656 
Less:
Content expense (a)
6,145 7,108 6,522 
Personnel expense (b)
760 963 2,009 
Marketing expense1,000 1,066 529 
Other segment expenses (c)
1,601 937 2,184 
Segment Adjusted EBITDA$1,370 $2,545 $6,412 
Year Ended December 31, 2024
StreamingStudiosGlobal Linear Networks
Revenues$10,313 $11,607 $20,175 
Less:
Content expense (a)
6,183 7,260 7,135 
Personnel expense (b)
773 943 2,153 
Marketing expense1,147 1,064 454 
Other segment expenses (c)
1,533 688 2,284 
Segment Adjusted EBITDA$677 $1,652 $8,149 

Year Ended December 31, 2023
StreamingStudiosGlobal Linear Networks
Revenues$10,154 $12,192 $21,244 
Less:
Content expense (a)
6,454 7,112 7,140 
Personnel expense (b)
844 927 2,173 
Marketing expense1,313 1,268 439 
Other segment expenses (c)
1,440 702 2,429 
Segment Adjusted EBITDA$103 $2,183 $9,063 
(a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.
(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).
(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.
Reconciliation of Segment Adjusted EBITDA to loss before income taxes
Year Ended December 31,
202520242023
Streaming$1,370 $677 $103 
Studios2,545 1,652 2,183 
Global Linear Networks6,412 8,149 9,063 
Segment Adjusted EBITDA$10,327 $10,478 $11,349 
Depreciation and amortization5,684 7,037 7,985 
Employee share-based compensation751 546 488 
Restructuring and other charges399 447 585 
Transaction and integration costs166 242 162 
Facility consolidation costs10 32 
Impairment and amortization of fair value step-up for content784 1,139 2,373 
Amortization of capitalized interest for content40 46 46 
Impairments and loss on dispositions172 9,603 77 
Corporate1,096 1,260 1,242 
Inter-segment eliminations 487 186 (93)
Other (income) expense, net(65)(150)29 
Loss from equity investees, net24 121 82 
Gain on extinguishment of debt(2,945)(632)(17)
Interest expense, net2,085 2,017 2,221 
Income (loss) before income taxes$1,639 $(11,388)$(3,863)
Content Amortization and Impairment Expense
Year Ended December 31,
202520242023
Streaming$5,464 $6,416 $6,138 
Studios3,106 5,692 5,074 
Global Linear Networks6,093 4,250 6,630 
Corporate(6)
Inter-segment eliminations (2,809)(2,250)(1,697)
Total content amortization and impairment expense$11,855 $14,111 $16,139 
Content expense is generally a component of costs of revenue on the consolidated statements of operations. (See Note 9.)
Revenues by Geography
 Year Ended December 31,
 202520242023
U.S.$24,946 $26,434 $28,004 
Non-U.S.12,350 12,887 13,317 
Total revenues$37,296 $39,321 $41,321 
Revenues are attributed to each country based on the customer or viewer location.
Property and Equipment by Geography
 December 31,
 20252024
U.S.$4,494 $4,430 
U.K.1,386 991 
Other non-U.S.805 666 
Total property and equipment, net$6,685 $6,087 
v3.25.4
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Debt
On February 18, 2026, DGH (formerly WarnerMedia Holdings, Inc., the “Borrower”), together with JPMorgan Chase Bank, N.A., in its capacities as Administrative Agent and Collateral Agent, executed Amendment No. 1 to the Non-Investment Grade Leveraged Bridge Loan Agreement dated June 26, 2025. Amendment No. 1 extends the maturity of the Borrower’s outstanding bridge loans from the earlier of (i) December 30, 2026 and (ii) the completion of the previously proposed Separation Transaction to the earlier of (x) June 30, 2027 and (y) the date that the previously proposed Spin-Off (as defined in the Bridge Loan Agreement) occurs.
Under Amendment No. 1, all previously scheduled duration fees through June 30, 2026 remain unchanged, however, the duration fees payable on September 30, 2026 and December 31, 2026 were increased from 0.75% to 1.00% of the principal amount of outstanding loans on such dates. In addition, a new duration fee of 1.00% of the principal amount of outstanding loans will be payable on March 31, 2027.
Amendment No. 1 does not modify the mandatory prepayment provisions, guarantee structure, or collateral securing the bridge facility, all of which remain consistent with the Existing Bridge Agreement. The amendment also maintains the original representations and warranties, affirmative and negative covenants, events of default and continues to include no financial maintenance covenants.
Equity Awards
On January 2, 2026, pursuant to the Amended and Restated Employment Agreement dated June 12, 2025 between the Company and its CEO, the Company granted 3,052,734 stock options with a fair value of $10.47 per share and an exercise price equal to the $28.51 closing price of WBD common stock on January 2, 2026.
In addition, on January 5, 2026, the Company granted its CEO RSUs covering 1,963,465 shares of WBD common stock, with a grant date fair value of $56 million. The RSUs were granted pursuant to the employment agreement to compensate for the higher exercise price of the January 2, 2026 stock option grant relative to prior option awards. The RSUs vest subject to the same terms and conditions applicable to the related option awards.
Termination of Netflix Merger
On February 27, 2026, in accordance with the terms of the Netflix Merger Agreement, the Company terminated the Netflix Merger Agreement in connection with entering into the PSKY Merger Agreement. In connection with the termination of the Netflix Merger Agreement, PSKY, on behalf of the Company, paid Netflix a termination fee of $2.8 billion in cash as required by the terms of the Netflix Merger Agreement.
PSKY Merger
On February 27, 2026, the Company entered into the PSKY Merger Agreement, pursuant to which PSKY will acquire the Company. Upon completion of the PSKY Merger, each issued and outstanding share of WBD common stock (subject to certain exceptions) will be converted into the right to receive an amount in cash equal to $31.00, without interest, plus, if the closing date of the PSKY Merger occurs after September 30, 2026, the Ticking Consideration. The “Ticking Consideration” will be an amount in cash equal to $0.00277778 multiplied by the number of calendar days elapsed after September 30, 2026 to and including the closing date (which, for the avoidance of doubt, will not exceed $0.25 per 90 calendar day period).
v3.25.4
Schedule II: Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II: Valuation and Qualifying Accounts
Schedule II: Valuation and Qualifying Accounts
Changes in valuation and qualifying accounts consisted of the following (in millions):
Beginning
of Year
AdditionsDeductionsEnd
of Year
2025
Deferred tax valuation allowance$2,043 397 (42)$2,398 
2024
Deferred tax valuation allowance$2,191 179 (327)$2,043 
2023
Deferred tax valuation allowance$1,849 429 (87)$2,191 
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have a cybersecurity program to assess and manage risks to the confidentiality, integrity, and availability of our data, networks and technology assets across WBD. Our board of directors oversees risk management at WBD and has delegated functional oversight of cybersecurity and information technology risks to our board of directors’ audit committee (the “Audit Committee”). Our Chief Information Security Officer (“CISO”) is responsible for the management of such risks and oversees a global organization whose responsibilities include proactively managing and monitoring information and content security, cybersecurity risk, and processes to enable secure and resilient access to, and use of, WBD products and services.
Risk Management and Strategy
We have a cybersecurity risk management strategy for safeguarding our digital assets that includes both technical and non-technical cybersecurity controls. Our cybersecurity risk management processes are designed to evolve in response to changes in our business, technological environment, and the broader threat landscape and are aligned and integrated into our overall enterprise risk management approach. Our multi-layered technical defense involves a series of protective measures across various levels of our technological environment. This includes fortifying our network perimeter through intrusion detection and prevention systems, securing individual devices with antivirus solutions and endpoint detection, implementing network security measures, and ensuring the resilience of applications. In addition to these technical security solutions, we also leverage non-technical methods, such as promoting a cybersecurity-conscious culture throughout WBD which includes mandatory annual cybersecurity training for all employees, a regular cadence of cybersecurity messaging to our employees, and frequent phishing simulations. Further, we engage independent third parties to conduct annual internal and external penetration testing and independent assessments of our cybersecurity risk management practices using the National Institute of Standards and Technology’s cybersecurity framework and other leading industry practices as guidelines. We also engage an independent third party to conduct a biennial cybersecurity maturity assessment to evaluate the maturity of our entire cybersecurity program.
We also invest in cybersecurity incident detection and response. Our Cybersecurity Operations Center provides continuous threat monitoring and anomaly detection that is intended to prevent or minimize damage from a cybersecurity attack. We have a Cybersecurity Incident Response Plan that establishes procedures, roles, responsibilities, and communication protocols for WBD executive management and technical staff in the event of a cybersecurity incident. We periodically review and enhance our cybersecurity incident response processes and conduct exercises involving relevant stakeholders to assess preparedness and response effectiveness. We test the efficacy of the Cybersecurity Incident Response Plan and assess our response capabilities by conducting annual tabletop exercises that simulate cybersecurity threat scenarios.
We have ongoing processes to identify and assess cybersecurity risks associated with current and prospective third-party service providers. Our third-party cybersecurity risk management processes are risk-based and ongoing and are designed to assess cybersecurity considerations throughout the vendor relationship lifecycle. These processes include a vendor cybersecurity compliance assessment at the time of onboarding, contract renewal and/or as needed in the event of a cybersecurity incident affecting such third-party vendor. In addition, we require our providers to meet appropriate security requirements, controls and responsibilities and notify us in the event of a cybersecurity incident that impacts us.
We have established cybersecurity information sharing and collaboration practices with both government agencies and industry partners, which we believe enhances our overall cybersecurity resilience.
We periodically experience cybersecurity incidents, but, as of December 31, 2025, we are not aware of any such incidents that have materially impacted or are reasonably likely to materially impact our business, financial condition or results of operations. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats or provide assurances that we have not experienced undetected cybersecurity incidents or will not discover additional information about previously detected events. See Item 1A, “Risk Factors” for details on the risks from cybersecurity threats that we face.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have a cybersecurity program to assess and manage risks to the confidentiality, integrity, and availability of our data, networks and technology assets across WBD. Our board of directors oversees risk management at WBD and has delegated functional oversight of cybersecurity and information technology risks to our board of directors’ audit committee (the “Audit Committee”). Our Chief Information Security Officer (“CISO”) is responsible for the management of such risks and oversees a global organization whose responsibilities include proactively managing and monitoring information and content security, cybersecurity risk, and processes to enable secure and resilient access to, and use of, WBD products and services.
Risk Management and Strategy
We have a cybersecurity risk management strategy for safeguarding our digital assets that includes both technical and non-technical cybersecurity controls. Our cybersecurity risk management processes are designed to evolve in response to changes in our business, technological environment, and the broader threat landscape and are aligned and integrated into our overall enterprise risk management approach. Our multi-layered technical defense involves a series of protective measures across various levels of our technological environment. This includes fortifying our network perimeter through intrusion detection and prevention systems, securing individual devices with antivirus solutions and endpoint detection, implementing network security measures, and ensuring the resilience of applications. In addition to these technical security solutions, we also leverage non-technical methods, such as promoting a cybersecurity-conscious culture throughout WBD which includes mandatory annual cybersecurity training for all employees, a regular cadence of cybersecurity messaging to our employees, and frequent phishing simulations.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
We have established a cybersecurity governance framework designed to provide effective oversight, clear accountability and appropriate escalation across WBD. Our cybersecurity program is led by our CISO, who is responsible for the design, implementation and operation of controls to prevent, detect, mitigate and remediate cybersecurity threats. The CISO assesses and monitors our cybersecurity posture through ongoing engagement with our content and information security team and provides regular reporting to WBD executive management and the Audit Committee in accordance with established governance and escalation protocols.
WBD executive management is engaged in the governance of our cybersecurity program through defined oversight, reporting and escalation mechanisms. Our Chief Financial Officer, Chief Legal Officer, Chief Audit and Risk Officer and Chief Information Officer receive regular updates regarding cybersecurity risks, incidents and program initiatives and participate in governance, prioritization and escalation decisions as appropriate to their respective enterprise responsibilities.
Our board of directors oversees our overall enterprise risk management approach, including risks related to cybersecurity and information technology. Our board of directors has delegated primary oversight responsibility for cybersecurity and information technology risks to the Audit Committee. The Audit Committee receives regular reports from our CISO, at least quarterly, regarding our cybersecurity risk posture, significant developments in the threat landscape, the effectiveness of controls, and progress on initiatives to strengthen and enhance our cybersecurity program. The Audit Committee also receives updates outside of the regular reporting cadence when warranted by significant events, emerging risks or regulatory developments and may devote additional meeting time to in-depth review of cybersecurity matters or education on relevant topics. The Chair of the Audit Committee provides readouts to our board of directors on matters, including cybersecurity matters, reviewed at meetings of the Audit Committee.
We maintain a Cybersecurity Incident Response Plan that defines incident severity thresholds, escalation protocols and reporting requirements and facilitating coordination across multiple parts of the Company. We also have processes in place designed to ensure that decisions regarding public disclosure and reporting of cybersecurity incidents can be made in a timely manner. Cybersecurity incidents that meet established escalation criteria are reported to WBD executive management and as appropriate, to the Audit Committee, to support timely oversight and response.
Our cybersecurity governance framework also includes ongoing assessment and testing of controls and response capabilities, including tabletop exercises, penetration testing and third-party assessments, to help evaluate program effectiveness and inform continuous improvement.
Our CISO brings extensive experience leading global cybersecurity and information security programs across complex public- and private-sector organizations, with expertise in cybersecurity risk management, data protection and regulatory compliance, and holds industry-recognized cybersecurity certifications.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
We have established a cybersecurity governance framework designed to provide effective oversight, clear accountability and appropriate escalation across WBD. Our cybersecurity program is led by our CISO, who is responsible for the design, implementation and operation of controls to prevent, detect, mitigate and remediate cybersecurity threats. The CISO assesses and monitors our cybersecurity posture through ongoing engagement with our content and information security team and provides regular reporting to WBD executive management and the Audit Committee in accordance with established governance and escalation protocols.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
We have a cybersecurity program to assess and manage risks to the confidentiality, integrity, and availability of our data, networks and technology assets across WBD. Our board of directors oversees risk management at WBD and has delegated functional oversight of cybersecurity and information technology risks to our board of directors’ audit committee (the “Audit Committee”). Our Chief Information Security Officer (“CISO”) is responsible for the management of such risks and oversees a global organization whose responsibilities include proactively managing and monitoring information and content security, cybersecurity risk, and processes to enable secure and resilient access to, and use of, WBD products and services.
Cybersecurity Risk Role of Management [Text Block]
We have established a cybersecurity governance framework designed to provide effective oversight, clear accountability and appropriate escalation across WBD. Our cybersecurity program is led by our CISO, who is responsible for the design, implementation and operation of controls to prevent, detect, mitigate and remediate cybersecurity threats. The CISO assesses and monitors our cybersecurity posture through ongoing engagement with our content and information security team and provides regular reporting to WBD executive management and the Audit Committee in accordance with established governance and escalation protocols.
WBD executive management is engaged in the governance of our cybersecurity program through defined oversight, reporting and escalation mechanisms. Our Chief Financial Officer, Chief Legal Officer, Chief Audit and Risk Officer and Chief Information Officer receive regular updates regarding cybersecurity risks, incidents and program initiatives and participate in governance, prioritization and escalation decisions as appropriate to their respective enterprise responsibilities.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity program is led by our CISO, who is responsible for the design, implementation and operation of controls to prevent, detect, mitigate and remediate cybersecurity threats. The CISO assesses and monitors our cybersecurity posture through ongoing engagement with our content and information security team and provides regular reporting to WBD executive management and the Audit Committee in accordance with established governance and escalation protocols.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Our CISO brings extensive experience leading global cybersecurity and information security programs across complex public- and private-sector organizations, with expertise in cybersecurity risk management, data protection and regulatory compliance, and holds industry-recognized cybersecurity certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our cybersecurity risk management processes are designed to evolve in response to changes in our business, technological environment, and the broader threat landscape and are aligned and integrated into our overall enterprise risk management approach.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Consolidation
Basis 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. For each non-wholly owned subsidiary, the Company evaluates its ownership and other interests to determine whether it should consolidate the entity or account for its ownership interest as an unconsolidated investment. As part of its evaluation, the Company makes judgments in determining whether the entity is a VIE and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 10.) If it is concluded that an entity is not a VIE, then the Company considers its proportional voting interests in the entity. The Company consolidates majority-owned subsidiaries in which a controlling financial interest is maintained. A controlling financial interest is determined by majority ownership and the absence of significant third-party participating rights. Ownership interests in entities for which the Company has significant influence that are not consolidated are accounted for as equity method investments.
Intercompany accounts and transactions between consolidated entities have been eliminated.
Use of Estimates
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates.
Significant estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, estimated credit losses, content rights, leases, depreciation and amortization, the determination of ultimate revenues as they relate to amortization of capitalized content rights and accruals of participations and residuals, business combinations, share-based compensation, income taxes, other financial instruments, contingencies, estimated defined benefit plan liabilities, and the determination of whether the Company should consolidate certain entities.
Foreign Currency
Foreign Currency
The reporting currency of the Company is the U.S. dollar. Financial statements of subsidiaries whose functional currency is not the U.S. dollar are translated at exchange rates in effect at the balance sheet date for assets and liabilities and at average exchange rates for revenues and expenses for the respective periods. Translation adjustments are recorded in accumulated other comprehensive loss. Cash flows from the Company’s operations in foreign countries are generally translated at the weighted average rate for the respective periods.
The Company is exposed to foreign currency risk to the extent that it enters into transactions denominated in currencies other than its subsidiaries’ respective functional currencies. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Such transactions include affiliate and ad sales arrangements, content licensing arrangements, equipment and other vendor purchases and intercompany transactions. Changes in exchange rates with respect to amounts recorded in the Company’s consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses resulting from the conversion of the transaction currency to functional currency are included in other income (expense), net.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of 90 days or less.
Receivables
Receivables
The Company’s accounts receivable balances and the related credit losses arise primarily from distribution, advertising and content revenue. Receivables include amounts billed and currently due from customers and are presented net of an estimate for credit losses. To assess collectability, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks, and records a provision for estimated credit losses expected over the lifetime of receivables. The corresponding expense for the expected credit losses is reflected in selling, general and administrative expenses. The Company does not require collateral with respect to trade receivables.
Revolving Receivables Program
The Company has a revolving agreement to transfer up to $5,000 million of certain receivables through its bankruptcy-remote subsidiary, Warner Bros. Discovery Receivables Funding, LLC, to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. The Company services the sold receivables for the financial institution for a fee and pays fees to the financial institution in connection with this revolving agreement. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, the Company’s available capacity under this revolving agreement increases and typically the Company transfers additional receivables into the program.
The Company derecognizes receivables by the amount of the gross value of the proceeds received and the obligations assumed are recorded at fair value. Cash received is reflected as cash provided by operating activities in the consolidated statements of cash flows. The obligations assumed when proceeds are received relate to expected credit losses on sold receivables and estimated fee payments made on outstanding sold receivables already transferred. The obligations are subsequently adjusted for changes in estimated expected credit losses and interest rates, which are considered Level 3 fair value measurements since the inputs are unobservable (See Note 8). In some cases, the Company may have collections that have not yet been remitted to the bank, resulting in a liability. Increases to accounts payable related to program costs and subsequent payments are reported as financing activities in the consolidated statements of cash flows.
Accounts Receivable Factoring
The Company has factoring agreements to sell certain of its non-U.S. trade accounts receivable on a limited recourse basis to a third-party financial institution. The Company accounts for these transactions as sales in accordance with ASC 860, “Transfers and Servicing”, as its continuing involvement subsequent to the transfer is limited to providing certain servicing and collection actions on behalf of the purchaser of the designated trade accounts receivable. Proceeds from amounts factored are recorded as an increase to cash and cash equivalents and a reduction to receivables, net in the consolidated balance sheets. Cash received is also reflected as cash provided by operating activities in the consolidated statements of cash flows. The accounts receivable factoring programs are separate and distinct from the revolving receivables program.
Film and Television Content Rights and Games
Film and Television Content Rights and Games
The Company capitalizes costs to produce television programs and feature films, including direct production costs, production overhead, interest, acquisition costs and development costs, as well as advances for live programming rights, such as sports. Costs to acquire licensed television series and feature film programming rights are capitalized when the license period has begun and the program is accepted and available for airing. Production incentives received from various jurisdictions where the Company produces content and co-financing partner contributions are recorded as reductions to capitalized production costs. All capitalized content and prepaid license fees are classified as noncurrent assets, with the exception of content acquired with an initial license period of 12 months or less and prepaid sports rights expected to air within 12 months.
The Company groups its film and television content rights by monetization strategy: content that is predominantly monetized individually and content that is predominantly monetized as a group.
Content Monetized Individually
For films and television programs predominantly monetized individually, the amount of capitalized film and television production costs (net of incentives and co-financing partner contributions) amortized and the amount of participations and residuals to be recognized as expense in a particular period are determined using the individual film forecast method. Under this method, the amortization of capitalized costs and the accrual of participations and residuals are based on the proportion of the film’s or television program’s revenues recognized for such period to the film’s or television program’s estimated remaining ultimate revenues (i.e., the total revenue to be received throughout a film’s or television program’s remaining life cycle).
The process of estimating ultimate revenues requires us to make a series of judgments related to future revenue-generating activities associated with a particular film. Prior to the theatrical release of a film, the Company’s estimates are based on factors such as the historical performance of similar films, the star power of the lead actors, the rating and genre of the film, pre-release market research (including test market screenings), international distribution plans, and the expected number of theaters in which the film will be released. Subsequent to release, ultimate revenues are updated to reflect initial performance, which is often predictive of future performance. For television programs that are monetized on an individual basis, ultimate revenues are estimated based on factors including the performance of similar programs in each applicable market, firm commitments in hand from customers that license the program in the future, and the popularity of the program in its initial markets. For a film or television program that is predominantly monetized on its own but also monetized with other films and/or programs (such as on the Company’s streaming or linear services), the Company makes a reasonable estimate of the value attributable to the film or program’s exploitation while monetized with other films/programs, based on relative market rates, and expenses such costs as the film or television program is exhibited. For theatrical films, the period over which ultimate revenues from all applicable sources and exhibition windows are estimated does not exceed 10 years from the date of the film’s initial release. For television programs, the ultimate period does not exceed 10 years from delivery of the first episode, or, if still in production, five years from delivery of the most recent episode, if later. For games, the ultimate period does not exceed two years from the date of the game’s initial release. Ultimates for produced content monetized on an individual basis are reviewed and updated (as applicable) on a quarterly basis; any adjustments are applied prospectively as of the beginning of the fiscal year of the change.
Content Monetized as a Group
For programs monetized as a group, including licensed programming, the Company’s film groups are generally aligned along the Company’s networks and digital content service offerings, except for certain international territories wherein content assets are grouped by genre or territory. Adjustments for projected usage are applied prospectively in the period of the change. Participations and residuals are generally expensed in line with the pattern of usage. Streaming content and premium pay-TV amortization for each period is recognized based on estimated viewing patterns as there are generally little to no direct revenues to associate to the individual content assets. As such, viewership is most representative of the use of the title. Licensed rights to film and television programming are typically amortized over the useful life of the program’s license period on a straight-line or accelerated basis. The Company allocates the cost of multi-year sports programming arrangements over the contract period to each event or season based on its projected advertising revenue and an allocation of distribution revenue (estimated relative value). If annual contractual payments related to each season approximate each season’s estimated relative value, the Company expenses the related contractual payments during the applicable season. Amortization of sports rights takes place when the content airs.
Annually, the Company prepares analyses to support its content amortization expense, and performs quarterly reviews to ensure no changes are required. Critical assumptions used in determining content amortization for programming predominantly monetized as a group include: (i) the grouping of content with similar characteristics, (ii) the application of a quantitative revenue forecast model or historical viewership model based on the adequacy of historical data, and (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the forecast model. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of subscribers receiving the Company’s networks, the number of subscribers to its streaming services, and program usage. Accordingly, the Company reviews its estimates and planned usage at least quarterly and revises its assumptions if necessary. Any material adjustments from the Company’s review of the amortization rates for assets in film groups are applied prospectively in the period of the change.
Unamortized Film Costs Impairment Assessment
Unamortized film costs are tested for impairment whenever events or changes in circumstances indicate that the fair value of a film (or television program) predominantly monetized on its own, or a film group, may be less than its unamortized costs. In addition, a change in the predominant monetization strategy is considered a triggering event for impairment testing before a title is accounted for as part of a film group. If the carrying value of an individual feature film or television program, or film group, exceeds the estimated fair value, an impairment charge will be recorded in the amount of the difference. For content that is predominantly monetized individually, the Company utilizes estimates including ultimate revenues and additional costs to be incurred (including exploitation and participation costs), in order to determine whether the carrying value of a film or television program is impaired.
Game Development Costs
Game development costs are expensed as incurred before the applicable game reaches technological feasibility, or for online hosted arrangements, before the preliminary project phase is complete and it becomes probable that the project will be completed and the software will be used to perform the function intended. Commencing upon a title’s release, the capitalized game development costs are amortized based on the proportion of the game’s revenues recognized for such period to the game’s total current and anticipated revenues, or, if greater, for non-hosted games, on a straight-line basis over the title’s estimated economic life. Unamortized capitalized game production and development costs are stated at the lower of cost, less accumulated amortization, or net realizable value and reported in “Film and television content rights and games” on the consolidated balance sheets.
Investments
Investments
The Company holds investments in equity method investees and equity investments with and without readily determinable fair values.
Equity Method Investments and Equity Investments Without Readily Determinable Fair Value
Equity Method Investments
Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary or the entity is not a VIE and the Company does not have a controlling financial interest. Under this method of accounting, the Company typically records its proportionate share of the net earnings or losses of equity method investees in loss from equity investees, net and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances.
The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. (See “Asset Impairment Analysis” below.)
Equity Investments with Readily Determinable Fair Values
Investments in entities or other securities in which the Company has no control or significant influence and is not the primary beneficiary, and have a readily determinable fair value are recorded at fair value based on quoted market prices and are classified as equity securities or equity investments with readily determinable fair value. The investments are measured at fair value based on a quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs (Level 1). Gains and losses are recorded in other income (expense), net on the consolidated statements of operations. (See Note 10 and Note 18.)
Equity Investments without Readily Determinable Fair Values
Equity investments without readily determinable fair values include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. Equity investments without readily determinable fair values are recorded at cost and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. Adjustments for observable price changes are recorded in other income (expense), net.
Equity Method Investments and Equity Investments Without Readily Determinable Fair Value
Equity method investments are reviewed for indicators of other-than-temporary impairment on a quarterly basis and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. The estimation of fair value and whether an other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. If declines in the value of the equity method investments are determined to be other-than-temporary, a loss is recorded in earnings in the current period as a component of loss from equity investees, net on the consolidated statements of operations.
For equity investments without readily determinable fair value, investments are recorded at cost and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. The Company performs a qualitative assessment on a quarterly basis to determine if any observable price changes have occurred. If the qualitative assessment indicates that an observable price change has occurred, a gain or loss is recorded equal to the difference between the fair value and carrying value in the current period as a component of other income (expense), net.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and impairments. Internal use software costs are capitalized during the application development stage; software costs incurred during the preliminary project and post implementation stages are expensed as incurred. Repairs and maintenance expenditures that do not enhance the use or extend the life of property and equipment are expensed as incurred. Depreciation for most property and equipment is recognized using the straight-line method over the estimated useful lives of the assets.
Leases
Leases
The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets are included in other noncurrent assets. Finance lease ROU assets are included in property and equipment, net. Operating and finance lease liabilities are included in accrued liabilities and other noncurrent liabilities in the consolidated balance sheets. The Company elected the short-term lease recognition exemption and leases with initial terms of one year or less are not recorded in the consolidated balance sheets.
A rate implicit in the lease when readily determinable is used in arriving at the present value of lease payments. As most of the Company’s leases do not provide sufficient information to determine an implicit rate, the Company uses an incremental borrowing rate based on information available at lease commencement date for most of its leases. The incremental borrowing rate is based on the Company's U.S. dollar denominated senior unsecured borrowing curves using public credit ratings adjusted down to a collateralized basis using a combination of recovery rate and credit notching approaches and translated into major contract currencies as applicable.
The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. The Company does not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. In addition, variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. Lease expense for operating leases and short-term leases is recognized on a straight-line basis. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis.
Defined Benefit Plans
Defined Benefit Plans
The Company participates in and/or sponsors a qualified defined benefit pension plan that covers certain U.S. based employees and several U.S. and non-U.S. defined benefit pension plans that are noncontributory. Defined benefit plan obligations are based on various assumptions used by the Company’s actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations.
Asset Impairment Analysis, Goodwill
Asset Impairment Analysis
Goodwill
Goodwill is allocated to the Company’s reporting units, which are its operating segments or one level below its operating segments. The Company evaluates goodwill for impairment annually as of October 1, or earlier if an event or other circumstance indicates that it may not recover the carrying value of the asset. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required. If a qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its fair value, a quantitative impairment test is performed. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recorded for the amount by which the carrying amount exceeds the fair value, not to exceed the amount of goodwill recorded for that reporting unit. The Company typically performs a quantitative impairment test at least every three years, irrespective of the outcome of the Company’s qualitative assessment.
Asset Impairment Analysis, Long-lived Assets
Long-lived Assets
Long-lived assets such as amortizing trademarks and trade names; affiliate, advertising, and subscriber relationships; franchises and other intangible assets; lease ROU assets; and property and equipment are not required to be tested for impairment annually, but rather whenever circumstances indicate that the carrying amount of the asset may not be recoverable. If an impairment analysis is required, the impairment test employed is based on whether the Company’s intent is to hold the asset for continued use or to hold the asset for sale.
If the intent is to hold the asset for continued use, the impairment test requires a comparison of undiscounted future cash flows to the carrying value of the asset group. If the carrying value of the asset group exceeds the undiscounted cash flows, an impairment loss would be recognized equal to the excess of the asset group’s carrying value over its fair value, which is typically determined by discounting the future cash flows associated with that asset group.
If the intent is to hold the asset for sale and certain other criteria are met, the impairment test involves comparing the asset’s carrying value to its estimated fair value less costs to sell. If the carrying value of the asset exceeds the fair value, an impairment loss would be recognized equal to the difference.
Significant judgments used for long-lived asset impairment assessments include identifying the appropriate asset groupings that represent the lowest level for which cash flows are largely independent and primary assets within those groupings, determining whether events or circumstances indicate that the carrying amount of the asset may not be recoverable, determining the future cash flows for the assets involved and assumptions applied in determining fair value, which include reasonable discount rates, growth rates, market risk premiums and other assumptions about the economic environment.
Derivative Instruments
Derivative Instruments
The Company uses derivative financial instruments to mitigate its exposure to market risks from changes in foreign currency exchange rates, interest rates, and from market volatility related to certain investments measured at fair value. At the inception of a derivative contract, the Company designates the derivative based on the Company’s intentions and expectations as to the likely effectiveness as a hedge (see Note 13), as follows:
a hedge of a forecasted transaction or the exposure to variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”);
a hedge of the foreign currency exposure from net investments in foreign operations (“net investment hedge”);
a hedge of the exposure to changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); or
an instrument with no hedging designation.
Cash Flow Hedges
The Company may designate derivative instruments as cash flow hedges to mitigate foreign currency risk arising from third-party revenue agreements, intercompany licensing agreements, production expenses and rebates, or to hedge the interest rate risk for certain senior notes and forecasted debt issuances. For instruments accounted for as cash flow hedges, the change in the fair value of the forward contract is recorded in other comprehensive income (loss) and reclassified into the statements of operations in the same line item in which the hedged item is recorded and in the same period as the hedged item affects earnings.
Net Investment Hedges
The Company may designate derivative instruments as hedges of net investments in foreign operations. The Company assesses the effectiveness of net investment hedges utilizing the spot-method. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded in the currency translation adjustment component of other comprehensive loss. While the change in fair value attributable to hedge effectiveness remains in accumulated other comprehensive loss until the net investment is sold or liquidated, the change in fair value attributable to components excluded from the assessment of hedge effectiveness (e.g., forward points, cross currency basis, etc.) is reflected as a component of interest expense, net in the current period.
Fair Value Hedges
The Company may designate derivative instruments as fair value hedges to mitigate the variability in the fair value of a recognized asset or liability or of an unrecognized firm commitment. For those derivative instruments designated as fair value hedges, the changes in fair value of the derivative instruments, including offsetting changes in fair value of the hedged items are recorded in the statements of operations in the same line item where the hedged risk occurs.
No Hedging Designation
The Company may also enter into derivative instruments that do not qualify for hedge accounting or are not designated as hedges. These instruments are intended to mitigate economic exposures due to exogenous events and changes in foreign currency exchange rates, interest rates, and from market volatility related to certain investments measured at fair value. The changes in fair value of derivatives not designated as hedges are recorded in the statements of operations in the same line item where the risk occurs.
Financial Statement Presentation
Unsettled derivative contracts are recorded at their gross fair values on the consolidated balance sheets. The portion of the fair value that represents cash flows occurring within one year is classified as current, and the portion related to cash flows occurring beyond one year is classified as noncurrent.
Cash flows from designated derivative instruments used as hedges are classified in the consolidated statements of cash flows in the same section as the cash flows of the hedged item. Cash flows from periodic settlement of interest on cross currency swaps and derivative contracts not designated as hedges are reported as investing activities in the consolidated statements of cash flows.
In the normal course of business, the Company is exposed to foreign currency exchange rate market risk 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, total return swaps, and interest rate swaps, to hedge certain foreign currency, market value 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.
Treasury Stock
Treasury Stock
When stock is acquired for purposes other than formal or constructive retirement, the purchase price of the acquired stock is recorded in a separate treasury stock account, which is separately reported as a reduction of equity.
When stock is retired or purchased for formal or constructive retirement, the purchase price is initially recorded as a reduction to the par value of the shares repurchased, with any excess purchase price over par value recorded as a reduction to additional paid-in capital related to the series of shares repurchased and any remaining excess purchase price recorded as a reduction to retained earnings. If the purchase price exceeds the amounts allocated to par value and additional paid-in capital related to the series of shares repurchased and retained earnings, the remainder is allocated to additional paid-in capital related to other series of shares.
To determine the cost of treasury stock that is either sold or reissued, the Company uses the last in, first out method. If the proceeds from the re-issuance of treasury stock are greater than the cost, the excess is recorded as additional paid-in capital. If the proceeds from re-issuance of treasury stock are less than the cost, the excess cost first reduces any additional paid-in capital arising from previous treasury stock transactions for that class of stock, and any additional excess is recorded as a reduction of retained earnings.
Revenue Recognition
Revenue Recognition
Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. However, certain revenues include taxes that customers pay to taxing authorities on the Company’s behalf, such as foreign withholding tax. Revenue recognition for each source of revenue is also based on the following policies.
Advertising
Advertising revenues are principally generated from the sale of commercial time on linear (television networks and authenticated TVE applications) and digital platforms (DTC streaming subscription services and websites). A substantial portion of the linear and digital advertising contracts in the U.S. and certain international markets guarantee the advertiser a minimum audience level that either the program in which their advertisements are aired or the advertisement will reach. On the linear platform, the Company provides a service to deliver an advertising campaign which is satisfied by the provision of a minimum number of advertising spots in exchange for a fixed fee over a contract period of one year or less. The Company delivers spots in accordance with these contracts during a variety of day parts and programs. In the agreements governing these advertising campaigns, the Company has also promised to deliver to its customers a guaranteed minimum number of viewers (“impressions”) on a specific television network within a particular demographic (e.g. men aged 18-35). These advertising campaigns are considered to represent a single, distinct performance obligation. Revenues are recognized based on the guaranteed audience level multiplied by the average price per impression. The Company provides the advertiser with advertising until the guaranteed audience level is delivered, and invoiced advertising revenue receivables may exceed the value of the audience delivery. As such, revenues are deferred until the guaranteed audience level is delivered or the rights associated with the guarantee lapse, which is typically less than one year. Audience guarantees are initially developed internally, based on planned programming, historical audience levels, the success of pilot programs, and market trends. Actual audience and delivery information is published by independent ratings services.
For digital advertising contracts, advertising revenues are recognized as the advertising impressions are delivered. Each impression is considered a distinct, individual performance obligation. The Company allocates the consideration to each impression based on its relative standalone selling price.
Distribution
Distribution revenues are generated from fees charged to distributors, which include cable, direct-to-home (“DTH”) satellite, telecommunications and digital service providers, and DTC subscribers. Distributors typically pay royalties via a per-subscriber fee for the right to distribute the Company’s programming under the terms of distribution contracts. The majority of the Company’s distribution fees are collected monthly throughout the year and distribution revenue is recognized over the term of the contracts based on contracted programming rates and reported subscriber levels. The amount of distribution fees due to the Company is reported by distributors based on actual subscriber levels. Such information is generally not received until after the close of the reporting period. In these cases, the Company estimates the number of subscribers receiving the Company’s programming to estimate royalty revenue. Historical adjustments to recorded estimates have not been material. Distribution revenue from fixed-fee contracts is recognized over the contract term based on the continuous delivery of the content to the affiliate. Any monetary incentives provided to distributors other than for distinct goods or services acquired at fair value are recognized as a reduction of revenue over the term.
Although the delivery of linear feeds and digital products, such as video-on-demand (“VOD”) and authenticated TVE applications, are considered distinct performance obligations within a distribution arrangement, on-demand offerings generally match the programs that are airing on the linear network. Therefore, the Company recognizes revenue for licensing arrangements as the license fee is earned and based on continuous delivery for fixed fee contracts.
Revenues associated with digital distribution arrangements are recognized when the Company transfers control of the programming or service to the customer.
For DTC streaming subscription services, the Company recognizes revenue as the service fee is earned over the subscription period.
When linear and DTC distribution arrangements are offered in a bundle deal, consideration is allocated to each deliverable based on its relative standalone selling price, and revenue is recognized as described above.
Content
Content revenues are generated from the release of feature films for initial exhibition in theaters, production of programs licensed for initial television/SVOD exhibition, the additional licensing of feature films and television programs to various television, SVOD and other digital markets, distribution of feature films and television programs in the physical and digital home entertainment market, sales of console games and mobile in-game content, sublicensing of sports rights, and licensing of intellectual property such as characters and brands.
In general, fixed payments for the licensing of intellectual property are recognized as revenue at either the inception of the license term or as sales-based royalties as underlying sales occur if the intellectual property has significant standalone functionality (“functional IP,” such as a produced film or television series), or over the corresponding license term if the licensee’s ability to derive utility is dependent upon our continued support of the intellectual property throughout the license term (“symbolic IP,” such as a character or a brand). Feature films may be produced or acquired for initial exhibition in theaters or direct release on our streaming service. Arrangements with theaters for exhibiting a film over a certain period are generally sales-based royalties and recorded as revenue as the underlying sales of the exhibitors occur.
Television programs are initially produced for broadcast networks, cable networks, premium pay services, first-run syndication or streaming services; revenues are recognized when the programs are available for use by the licensee. Fixed license fee revenues from the subsequent licensing of feature films and television programs in the off-network cable, premium pay, syndication, streaming and international television and streaming markets are also recognized upon availability of the content for use by the licensee. For television/streaming service licenses that include multiple titles with a fixed license fee across all titles, the availability of each title is considered a separate performance obligation, and the fixed fee is allocated to each title based on its estimated relative standalone selling price and recognized as revenue when the title is available for use by the licensee. When the term of an existing agreement is renewed or extended, revenues are recognized when the licensed content becomes available under the renewal or extension. Certain arrangements (e.g., certain pay-TV/SVOD licenses) may include variable license fees that are based on sales of the licensee; these are recognized as revenue as the applicable underlying sales occur.
Revenues from home entertainment sales of feature films and television programs in physical format are generally recognized at the later of the delivery date or the date when made widely available for sale or rental by retailers (“street date”) based on gross sales less a provision for estimated returns, rebates and pricing allowances. The provision is based on management’s estimates by analyzing vendor sales of our product, historical return trends, current economic conditions and changes in customer demand. Revenues from the licensing of television programs and films for electronic sell-through or video-on-demand are recognized when the product has been purchased by and made available to the consumer to either download or stream.
Revenues from sales of console games generally follow the same recognition methods as film and television programs in the home entertainment market. Revenues from digital sales of in-game purchases are assessed for deferral based on type of digital item purchased (e.g., consumable vs. durable) and estimated life of consumer game play and recognized upon purchase or over time as applicable.
Revenues from the licensing of intellectual property such as characters or brands (e.g., for merchandising or theme parks) are
recognized either straight-line over the license term or as the licensee’s underlying product sales occur (sales-based royalty) depending on which method is most reflective of the earnings process.
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration and that right is conditioned upon something other than the passage of time. A contract liability, such as deferred revenue, is recorded when the Company has recorded billings in conjunction with its contractual right or when cash is received in advance of the Company’s performance.
Deferred revenue primarily consists of TV/SVOD content licensing arrangements where the content has not yet been made available to the customer, consumer products and themed experience licensing arrangements with fixed payments, advance payment for DTC streaming subscriptions, and cash billed/received for television advertising in advance or for which the guaranteed viewership has not been provided. The amounts classified as current are expected to be earned within the next year.
Payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer.
Share-Based Compensation Expense
Share-Based Compensation Expense
The Company has incentive plans under which performance-based restricted stock units (“PRSUs”), service-based restricted stock units (“RSUs”), and stock options may be issued. In addition, the Company offers an Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense for all awards is recorded as a component of selling, general and administrative expense. Forfeitures for all awards are recognized as incurred. Excess tax benefits realized from the exercise of stock options and vested RSUs, PRSUs and the ESPP are reported as cash inflows from operating activities on the consolidated statements of cash flows.
PRSUs
PRSUs represent the contingent right to receive shares of WBD common stock, and typically vest over one to three years based on continuous service and the attainment of qualitative and quantitative performance targets. The number of PRSUs that vest typically ranges from 0% to 300% based on a sliding scale where achieving or exceeding the performance target will result in 100% to 300% of the PRSUs vesting and achieving 70% or less of the target will result in no portion of the PRSUs vesting. Additionally, for certain PRSUs, the Company’s Compensation Committee has discretion in determining the final number of units that vest, but may not increase the amount of any PRSU award above 100%. Upon vesting, each PRSU becomes convertible into one share of WBD common stock. Holders of PRSUs do not receive payments of dividends in the event the Company pays a cash dividend until such PRSUs are converted into shares of WBD common stock.
Compensation expense for PRSUs is based on the fair value of WBD common stock on the date of grant. Compensation expense for PRSUs that vest based on achieving subjective operating performance conditions or in situations where the employee may withhold taxes in excess of the maximum statutory requirement, is remeasured at fair value each reporting period until the award is settled. Compensation expense for all PRSUs is recognized ratably over the vesting period only when it is probable that the operating performance conditions will be achieved. The Company records a cumulative adjustment to compensation expense for PRSUs if there is a change in the determination of the probability that the operating performance conditions will be achieved.
RSUs
RSUs represent the contingent right to receive shares of WBD common stock, substantially all of which vest ratably each year over periods of three to five years based on continuous service. Compensation expense for RSUs is based on the fair value of the award on the date of grant and is recognized ratably during the vesting period. RSU awards generally provide for accelerated vesting upon termination from the Company if the employee has reached a specified age and years of service and if the grant has been held at least six months from the grant date.
Stock Options
Stock options are granted with an exercise price equal to or in excess of the closing market price of WBD common stock on the date of grant and vest ratably over three to five years from the grant date based on continuous service and expire seven years from the date of grant. In 2025, certain stock options were granted that vest upon achievement of a market condition in addition to a time-based vesting requirement. Compensation expense for stock options is based on the fair value of the award on the date of grant and is recognized ratably during the vesting period. Stock options generally provide for accelerated vesting upon termination from the Company if the employee has reached a specified age and years of service and if the grant has been held at least six months from the grant date.
The fair value of stock options that have time-based vesting requirements is estimated using the Black-Scholes option-pricing model, and the fair value of stock options that have a market condition is estimated using a Monte Carlo simulation. Because the Black-Scholes option-pricing model and the Monte Carlo simulation require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of awards. For stock options valued using the Black-Scholes option-pricing model, the simplified method is utilized to calculate the expected term, since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The simplified method considers the period from the date of grant through the mid-point between the vesting date and the end of the contractual term of the award. For stock options valued using the Monte Carlo simulation, the expected term represents the time period covered by the market condition. Expected volatility is based on a combination of implied volatilities from traded options on WBD common stock and historical realized volatility of WBD and peer group common stock. The dividend yield is assumed to be zero because the Company has no history of paying cash dividends and no present intention to pay dividends. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the award.
ESPP
The ESPP enables eligible employees to purchase shares of WBD common stock through payroll deductions or other permitted means. The Company recognizes the fair value of the discount associated with shares purchased under the ESPP as share-based compensation expense.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred and are presented in selling, general and administrative expenses.
Collaborative Arrangements
Collaborative Arrangements
The Company’s collaborative arrangements primarily relate to arrangements entered into with third parties to jointly finance and distribute certain theatrical and television productions, arrangements entered into with third parties to bundle streaming services, and an arrangement entered into with CBS Broadcasting, Inc. (“CBS”) surrounding the NCAA.
Co-financing arrangements generally represent the assignment of a partial copyright interest in a film or television series to a partner. The Company generally records the amounts received for the assignment of an interest as a reduction of production cost, as the partner assumes the risk for their share of the film or series asset. The substance of these arrangements is that the third-party partner owns an interest in the film or series; therefore, in each period, based on the terms of the arrangement, the Company reflects the estimate of the third-party partner’s interest in the profits or losses incurred on the film or series, using the individual film forecast method, in cost of revenues, excluding depreciation and amortization in the consolidated statements of operations. On occasion, the Company acquires the economic interest in a film from a producing partner and is the distributor; in this case, the Company capitalizes the acquisition cost as a content asset in film and television content rights and games and accounts for the third-party partner’s share in applicable distribution results as described above.
Bundled streaming service arrangements are evaluated at inception to determine whether it is a collaborative agreement based on the facts and circumstances. In the cases of bundled collaborative agreements, the partners share the expenses incurred and revenues generated. In each period, the Company reflects its share of expenses and revenues in the consolidated statements of operations.
The arrangement among Turner, CBS and the NCAA provides Turner and CBS with rights to the NCAA Division I Men’s Basketball Championship Tournament (the “NCAA Tournament”) in the U.S. and its territories and possessions through 2032. The aggregate programming rights fee, production costs, advertising revenues and sponsorship revenues related to the NCAA Tournament and related programming are shared equally by the Company and CBS. However, if the amount paid for the programming rights fee and production costs in any given year exceeds advertising and sponsorship revenues for that year, CBS’ share of such shortfall is limited to specified annual caps. The amount recorded pursuant to the loss cap was $73 million during the year ended December 31, 2025 and was not material during the years ended December 31, 2024 and 2023. In accounting for this arrangement, the Company records advertising revenue for the advertisements aired on its networks and amortizes its share of the programming rights fee based on the estimated relative value of each season over the term of the arrangement.
Income Taxes
Income Taxes
Income taxes are recorded using the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates the Company expects to apply to taxable income in years in which those temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not such assets will be unrealized.
From time to time, the Company engages in transactions in which the tax consequences may be uncertain. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities.
In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for unrecognized tax benefits unless the Company determines that such positions are more likely than not to be sustained upon examination based on their technical merits, including the resolution of any appeals or litigation processes. The Company includes interest and where appropriate, penalties, as a component of income tax expense on the consolidated statements of operations. Significant judgment is exercised in evaluating all relevant information, the technical merits of the tax positions, and the accurate measurement of unrecognized tax benefits when determining the amount of reserve and whether positions taken on the Company’s tax returns are more likely than not to be sustained. This also involves the use of significant estimates and assumptions with respect to the potential outcome of positions taken on tax returns that may be reviewed by tax authorities. The Company adjusts its unrecognized tax benefits periodically because of ongoing examinations by, and settlements with, various taxing authorities, as well as changes in tax laws, regulations and interpretations.
In connection with the WarnerMedia Merger, the Company entered into a tax matters agreement (“TMA”) with AT&T. Pursuant to the TMA, the Company is responsible for tax liabilities of the WarnerMedia Business related to the periods prior to AT&T’s ownership of the WarnerMedia Business (June 14, 2018), and AT&T is responsible for tax liabilities of the WarnerMedia Business related to the period for which they owned the WarnerMedia Business (June 15, 2018 through April 8, 2022). With respect to unrecognized tax benefits related to jurisdictions that have joint and several liability among members of the AT&T tax filing group during the AT&T ownership period, the Company has not recorded any liabilities for unrecognized tax benefits or indemnification receivables related to matters that were attributable to jurisdictions that have joint and several liability among members of the AT&T filing group since AT&T was determined to be the primary obligor.
Concentrations Risk
Concentrations Risk
Customers
No individual customer accounted for more than 10% of total consolidated revenues for 2025, 2024 or 2023. The Company had one customer that represented more than 10% of content revenue in 2025, which totaled 12%. The Company had one customer that represented more than 10% of distribution revenue in 2024, which totaled 13%, and two customers that each represented more than 10% of distribution revenue in 2023, which in aggregate totaled 24%. One customer accounted for 10% of trade receivables as of December 31, 2025 and no individual customer accounted for more than 10% of trade receivables as of December 31, 2024.
Financial Institutions
Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.
Counterparty Credit Risk
The Company is exposed to the risk that the counterparties to outstanding derivative financial instruments will default on their obligations. The Company manages these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with outstanding derivative financial instruments is spread across a relatively broad counterparty base of banks and financial institutions. The Company also has a limited number of arrangements where collateral is required to be posted in the instance that certain fair value thresholds are exceeded.
Accounting and Reporting Pronouncements Adopted and Not Yet Adopted
Accounting and Reporting Pronouncements Adopted
Income Taxes
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) updating the disclosure requirements for income taxes, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is permitted. The Company prospectively adopted the guidance effective January 1, 2025 and has provided the required annual disclosures in Note 16 and Note 18.
Accounting and Reporting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued guidance updating the disclosure requirements for income statement expenses, primarily through disaggregation of certain types of expenses presented on the income statement. The amendments are effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either: (1) prospectively to financial statements issued for reporting periods after the effective date, or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this guidance will have on its disclosures.
Credit Losses
In July 2025, the FASB issued guidance which provides a practical expedient to simplify the estimation of expected credit losses by assuming that current conditions as of the balance sheet do not change for the remaining life of the asset. This guidance is effective for interim and annual periods beginning after December 15, 2025. Early adoption is permitted, and the standard is to be applied prospectively. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and disclosures.
Accounting for Internal-Use Software
In September 2025, the FASB issued guidance which amends the existing standard for internal-use software to remove all references to prescriptive and sequential software development project stages. Under this guidance, eligible software development costs will begin capitalization when management has authorized and committed to funding the software project, and it is probable that the project will be completed, and the software will be used to perform the function intended. This guidance may be applied prospectively, retrospectively, or with a modified transition approach, and is effective for all annual periods beginning after December 15, 2027, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and disclosures.
Derivatives and Hedging and Revenue from Contracts with Customers
In September 2025, the FASB issued guidance that amends existing standards for derivatives and hedging (“Topic 815”) and revenue from contracts with customers (“Topic 606”). The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. This guidance may be applied prospectively or with a modified retrospective approach, and is effective for all annual periods beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and disclosures.
Derivatives and Hedging: Hedge Accounting Improvements
In November 2025, the FASB issued guidance that improves hedge accounting guidance by clarifying certain aspects and aligning hedge accounting more closely with the economics of an entity’s risk management activities. The update is effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. The updates should be applied prospectively for all hedging relationships as of the date of adoption. The Company does not expect a material impact on our financial statements.
Fair Value Measurements 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.
Redeemable Noncontrolling Interests Redeemable noncontrolling interests are presented outside of permanent equity on the Company’s consolidated balance sheets when the put right is outside of the Company’s control. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates. Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive income (loss). Such currency translation adjustments to redemption value are allocated to the Company’s stockholders only. Redeemable noncontrolling interest adjustments of carrying value to redemption value are reflected in retained earnings, unless there is an accumulated deficit, in which case the adjustments are reflected in additional paid-in capital. The adjustment of carrying value to the redemption value that reflects a redemption in excess of fair value is included as an adjustment to income from continuing operations available to the Company’s stockholders in the calculation of earnings per share.
Reportable Segments
The Company’s operating segments are determined based on: (i) financial information reviewed by its CODM, the CEO, (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
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 generally records inter-segment transactions of content licenses at market value. The Company does not report assets by segment because it is not used by the CODM to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its 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;
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 CODM uses this measure to assess the operating results and performance of the 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. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial.
v3.25.4
EQUITY AND EARNINGS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2025
Equity And Earnings Per Share [Abstract]  
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.
Year Ended December 31,
202520242023
Numerator:
Net income (loss)$749 $(11,482)$(3,079)
Less:
Net (income) loss attributable to noncontrolling interests(24)129 (38)
Net loss (income) attributable to redeemable noncontrolling interests42 (9)
Redeemable noncontrolling interest adjustments of carrying value to redemption value (redemption value does not equal fair value)(3)— 
Net income (loss) available to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted earnings per share$728 $(11,314)$(3,126)
Denominator — weighted average:
Common shares outstanding — basic2,475 2,450 2,436 
Dilutive effect of share-based awards55 — — 
Common shares outstanding — diluted2,530 2,450 2,436 
Basic net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
Diluted net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
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.
Year Ended December 31,
202520242023
Numerator:
Net income (loss)$749 $(11,482)$(3,079)
Less:
Net (income) loss attributable to noncontrolling interests(24)129 (38)
Net loss (income) attributable to redeemable noncontrolling interests42 (9)
Redeemable noncontrolling interest adjustments of carrying value to redemption value (redemption value does not equal fair value)(3)— 
Net income (loss) available to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted earnings per share$728 $(11,314)$(3,126)
Denominator — weighted average:
Common shares outstanding — basic2,475 2,450 2,436 
Dilutive effect of share-based awards55 — — 
Common shares outstanding — diluted2,530 2,450 2,436 
Basic net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
Diluted net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
Schedule of Income Available to Warner Bros. Discovery, Inc. 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.
Year Ended December 31,
202520242023
Numerator:
Net income (loss)$749 $(11,482)$(3,079)
Less:
Net (income) loss attributable to noncontrolling interests(24)129 (38)
Net loss (income) attributable to redeemable noncontrolling interests42 (9)
Redeemable noncontrolling interest adjustments of carrying value to redemption value (redemption value does not equal fair value)(3)— 
Net income (loss) available to Warner Bros. Discovery, Inc. Series A common stockholders for basic and diluted earnings per share$728 $(11,314)$(3,126)
Denominator — weighted average:
Common shares outstanding — basic2,475 2,450 2,436 
Dilutive effect of share-based awards55 — — 
Common shares outstanding — diluted2,530 2,450 2,436 
Basic net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
Diluted net income (loss) per share allocated to common stockholders$0.29 $(4.62)$(1.28)
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).
Year Ended December 31,
202520242023
Anti-dilutive share-based awards
43 76 69 
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Carrying Value of Goodwill
Changes in the carrying value of goodwill attributable to each business unit were as follows (in millions).
StreamingStudiosGlobal Linear NetworksTotal
December 31, 2023$8,067 $9,272 $17,630 $34,969 
Impairment of goodwill— — (9,147)(9,147)
Foreign currency translation and other adjustments(16)(75)(64)(155)
December 31, 2024$8,051 $9,197 $8,419 $25,667 
Dispositions— — (16)(16)
Foreign currency translation and other adjustments20 155 107 282 
December 31, 2025$8,071 $9,352 $8,510 $25,933 
Schedule of Finite-Lived Intangible Assets Subject to Amortization
Finite-lived intangible assets subject to amortization consisted of the following (in millions, except years).
 
 Weighted
Average
Amortization
Period (Years)
December 31, 2025December 31, 2024
GrossAccumulated 
Amortization
NetGrossAccumulated
Amortization
Net
Trademarks and trade names27$22,939 $(5,872)$17,067 $22,835 $(4,212)$18,623 
Affiliate, advertising and subscriber relationships824,359 (21,191)3,168 24,240 (18,528)5,712 
Franchises357,900 (1,144)6,756 7,900 (789)7,111 
Character rights14995 (269)726 995 (197)798 
Other6624 (577)47 586 (531)55 
Total$56,817 $(29,053)$27,764 $56,556 $(24,257)$32,299 
Schedule of Amortization Expense Relating to Intangible Assets Subject to Amortization
Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions).
20262027202820292030Thereafter
Amortization expense$3,426 $2,626 $2,007 $1,767 $1,559 $16,379 
v3.25.4
RESTRUCTURING AND OTHER CHARGES (Tables)
12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Other Charges by Segment
Restructuring and other charges by reportable segment and corporate and inter-segment eliminations were as follows (in millions).
Year Ended December 31,
202520242023
Streaming$27 $$66 
Studios18 263 225 
Global Linear Networks69 85 201 
Corporate and inter-segment eliminations285 96 93 
Total restructuring and other charges$399 $447 $585 
Schedule of Changes in Restructuring Liabilities Recorded in Accrued Liabilities and Other Noncurrent Liabilities by Category
Changes in restructuring liabilities recorded in accounts payable, accrued liabilities, and other noncurrent liabilities by major category and by reportable segment and corporate were as follows (in millions).
StreamingStudiosGlobal Linear NetworksCorporateTotal
December 31, 2023
$80 $98 $202 $80 $460 
Contract termination accruals, net— — 
Employee termination accruals, net24 79 84 78 265 
Other accruals(20)(2)(17)
Cash paid(53)(83)(180)(107)(423)
December 31, 202431 95 105 58 289 
Contract termination accruals, net— — — 
Employee termination accruals, net26 21 66 73 186 
Other accruals(3)211 212 
Cash paid(35)(55)(105)(216)(411)
December 31, 2025$23 $58 $69 $127 $277 
v3.25.4
REVENUES (Tables)
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents the Company’s revenues disaggregated by revenue source (in millions).
Year Ended December 31, 2025
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$9,444 $$9,819 $(9)$19,262 
Advertising1,032 6,332 (59)7,306 
Content 388 11,740 1,195 (3,676)9,647 
Other12 870 310 (111)1,081 
Totals$10,876 $12,619 $17,656 $(3,855)$37,296 
Year Ended December 31, 2024
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$9,022 $$10,680 $(9)$19,701 
Advertising855 7,306 (76)8,090 
Content428 10,717 1,848 (2,696)10,297 
Other877 341 1,233 
Totals$10,313 $11,607 $20,175 $(2,774)$39,321 
Year Ended December 31, 2023
StreamingStudiosGlobal Linear NetworksCorporate and Inter-segment EliminationsTotal
Revenues:
Distribution$8,703 $17 $11,521 $(4)$20,237 
Advertising548 15 8,342 (205)8,700 
Content886 11,358 1,005 (2,046)11,203 
Other17 802 376 (14)1,181 
Totals$10,154 $12,192 $21,244 $(2,269)$41,321 
Schedule of Contract Liabilities
The following table presents contract liabilities on the consolidated balance sheets (in millions).
CategoryBalance Sheet LocationDecember 31, 2025December 31, 2024
Contract liabilitiesDeferred revenues$1,642 $1,569 
Contract liabilitiesOther noncurrent liabilities355 206 
Schedule of Remaining Performance Obligations by Contract Type
The following table presents a summary of remaining performance obligations by contract type (in millions).
Contract TypeDecember 31, 2025Duration
Distribution - fixed price or minimum guarantee$2,489 
Through 2030
Content licensing and sports sublicensing4,601 
Through 2032
Brand licensing4,023 
Through 2062
Advertising1,127 
Through 2032
Other138 
Through 2029
Total$12,378 
v3.25.4
SALES OF RECEIVABLES (Tables)
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Receivables Sold
The following table presents a summary of receivables sold (in millions).
Year Ended December 31,
20252024
Gross receivables sold/cash proceeds received$15,560 $15,254 
Collections reinvested under revolving receivables program(16,497)(15,818)
Net cash proceeds remitted$(937)$(564)
Net receivables sold$15,485 $15,153 
Obligations recorded (Level 3)$380 $361 
Schedule of Amounts Transferred or Pledged
The following table presents a summary of the amounts transferred or pledged, which were held at the Company’s bankruptcy-remote consolidated subsidiary (in millions).
December 31, 2025December 31, 2024
Gross receivables pledged as collateral$2,632 $2,402 
Restricted cash pledged as collateral$— $100 
Balance sheet classification:
Receivables, net$2,230 $2,039 
Prepaid expenses and other current assets$— $100 
Other noncurrent assets$402 $363 
v3.25.4
CONTENT RIGHTS (Tables)
12 Months Ended
Dec. 31, 2025
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Components of Content Rights The table below presents the components of content rights (in millions).
December 31, 2025
Predominantly Monetized Individually
Predominantly Monetized as a Group
Total
Production costs:
Released, less amortization$3,006 $5,686 $8,692 
Completed and not released1,109 521 1,630 
In production and other1,782 2,544 4,326 
Total production costs$5,897 $8,751 $14,648 
Licensed content, live programming, and advances, net4,478 
Game development costs, less amortization310 
Total film and television content rights and games19,436 
Less: Current content rights and prepaid license fees, net(322)
Total noncurrent film and television content rights and games$19,114 
December 31, 2024
Predominantly Monetized Individually
Predominantly Monetized as a Group
Total
Production costs:
Released, less amortization$2,948 $5,678 $8,626 
Completed and not released794 767 1,561 
In production and other1,700 2,008 3,708 
Total production costs$5,442 $8,453 $13,895 
Licensed content, live programming, and advances, net5,744 
Game development costs, less amortization247 
Total film and television content rights and games19,886 
Less: Current content rights and prepaid license fees, net(784)
Total noncurrent film and television content rights and games$19,102 
Schedule of Content Amortization
Content amortization consisted of the following (in millions).
Year Ended December 31,
202520242023
Predominantly monetized individually$2,346 $3,999 $5,165 
Predominantly monetized as a group9,306 9,554 10,648 
Total content amortization$11,652 $13,553 $15,813 
Schedule of Expected Future Amortization Expense
The table below presents the expected future amortization expense of the Company’s film and television content rights, licensed content and advances, live programming rights and advances, and games as of December 31, 2025 (in millions).
Year Ending December 31,
202620272028
Released investment in films and television content:
Monetized individually$804 $642 $532 
Monetized as a group2,150 1,225 849 
Licensed content, live programming, and advances1,695 894 624 
Games— — 
Completed and not released investment in films and television content:
Monetized individually$879 
Monetized as a group210 
v3.25.4
INVESTMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Investments [Abstract]  
Schedule of Equity Investments
The Company’s equity investments consisted of the following, net of investments recorded in other noncurrent liabilities (in millions).
CategoryBalance Sheet LocationOwnershipDecember 31, 2025December 31, 2024
Equity method investments:
The Chernin Group (TCG) 2.0-A, LPOther noncurrent assets44%$276 $240 
nC+Other noncurrent assets32%153 128 
TNT SportsOther noncurrent assets50%10 92 
OtherOther noncurrent assets258 261 
Total equity method investments697 721 
Investments with readily determinable fair valuesOther noncurrent assets— 41 
Investments without readily determinable fair values
Other noncurrent assets (a)
348 353 
Total investments $1,045 $1,115 
(a) Investments without readily determinable fair values included $17 million as of December 31, 2025 and December 31, 2024 that were included in prepaid expenses and other current assets.
v3.25.4
DEBT (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Components of Outstanding Debt
The table below presents the components of outstanding debt (in millions).
December 31,
Weighted-Average
Interest Rate as of
12/31/2025
20252024
Bridge loan with maturity of 18 months
7.22 %$15,000 $— 
Senior notes with maturities of 5 years or less
3.92 %6,659 13,744 
Senior notes with maturities between 5 and 10 years
4.37 %3,509 7,853 
Senior notes with maturities greater than 10 years
5.17 %7,677 17,930 
Total debt32,845 39,527 
Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net(278)(22)
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting32,567 39,505 
Current portion of debt(139)(2,748)
Noncurrent portion of debt$32,428 $36,757 
Schedule of Estimated Debt Payments
The following table presents a summary of scheduled debt and estimated interest payments, excluding the revolving credit facility and commercial paper borrowings, for the next five years based on the amount of the Company’s debt outstanding as of December 31, 2025 (in millions).
20262027202820292030Thereafter
Long-term debt repayments$139 $16,483 $1,409 $2,274 $1,354 $11,186 
Interest payments$1,947 $1,353 $723 $648 $584 $5,454 
v3.25.4
LEASES (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Components of Lease Expense and Supplemental Information The Company’s leases were reflected in the Company’s consolidated balance sheets as follows (in millions).
December 31,
20252024
Operating LeasesLocation on Balance Sheet
Operating lease right-of-use assetsOther noncurrent assets$2,749 $2,373 
Operating lease liabilities (current)Accrued liabilities$285 $307 
Operating lease liabilities (noncurrent)Other noncurrent liabilities3,226 2,731 
Total operating lease liabilities$3,511 $3,038 
Finance Leases
Finance lease right-of-use assetsProperty and equipment, net$635 $432 
Finance lease liabilities (current)Accrued liabilities$149 $107 
Finance lease liabilities (noncurrent)Other noncurrent liabilities534 356 
Total finance lease liabilities$683 $463 
Supplemental information related to leases was as follows.
December 31,
20252024
Weighted average remaining lease term (in years):
Operating leases1111
Finance leases66
Weighted average discount rate
Operating leases4.97 %4.43 %
Finance leases5.46 %5.11 %
The components of lease cost were as follows (in millions):
Year Ended December 31,
202520242023
Operating lease cost$407 $441 $540 
Finance lease cost:
Amortization of right-of-use assets$150 $111 $85 
Interest on lease liabilities32 19 
Total finance lease cost$182 $130 $93 
Variable fees and other(a)
$29 $44 $74 
Total lease cost $618 $615 $707 
(a) Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Supplemental cash flow information related to leases was as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(455)$(476)$(501)
Operating cash flows from finance leases$(32)$(19)$(19)
Financing cash flows from finance leases$(139)$(95)$(74)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$726 $78 $364 
Finance leases$341 $300 $95 
Schedule of Maturities of Finance Lease Liabilities
Maturities of lease liabilities as of December 31, 2025 were as follows (in millions):
Operating LeasesFinance Leases
2026$441 $178 
2027424 157 
2028419 123 
2029416 81 
2030407 45 
Thereafter2,594 224 
Total lease payments4,701 808 
Less: Imputed interest(1,190)(125)
Total$3,511 $683 
Schedule of Maturities of Operating Lease Liabilities
Maturities of lease liabilities as of December 31, 2025 were as follows (in millions):
Operating LeasesFinance Leases
2026$441 $178 
2027424 157 
2028419 123 
2029416 81 
2030407 45 
Thereafter2,594 224 
Total lease payments4,701 808 
Less: Imputed interest(1,190)(125)
Total$3,511 $683 
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Company's Derivative Financial Instruments The following table summarizes the Company’s derivative financial instruments recorded on its consolidated balance sheets (in millions).
December 31, 2025December 31, 2024
Fair ValueFair Value
NotionalPrepaid expenses and other current assetsOther non-
current assets
Accounts payable and accrued liabilitiesOther non-
current liabilities
NotionalPrepaid expenses and other current assetsOther non-
current assets
Accounts payable and accrued liabilitiesOther non-
current liabilities
Cash flow hedges:
Foreign exchange
$2,235 $53 $60 $35 $38 $1,608 $47 $14 $25 $28 
Net investment hedges: (a)
Cross-currency swaps
452 — — 21 421 — — 
No hedging designation:
Foreign exchange126 — 15 79 951 18 14 122 
Cross-currency swaps
225 — — 11 210 — — 
Total return swaps501 — — — — 454 — — 16 — 
Credit contracts2,000 — — — — — — — — 
Total
$81 $60 $50 $149 $73 $21 $55 $155 
(a) Excludes €781 million and €1,500 million of euro-denominated notes ($919 million and $1,558 million equivalent at December 31, 2025 and December 31, 2024, respectively) designated as net investment hedges. (See Note 11.)
Schedule of Pre-tax Impact of Derivatives Designated as Cash Flow Hedges
The following table presents the pre-tax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions).
Year Ended December 31,
202520242023
Gains (losses) recognized in accumulated other comprehensive loss:
Foreign exchange - derivative adjustments$23 $37 $23 
Gains (losses) reclassified into income from accumulated other comprehensive loss:
Foreign exchange - distribution revenue(27)22 (5)
Foreign exchange - advertising revenue— 
Foreign exchange - costs of revenues
Foreign exchange - other income (expense), net
— — 18 
Interest rate - interest expense, net(3)(5)(1)
Interest rate - gain on extinguishment of debt(1)(4)
 Interest rate - other income (expense), net
14 20 — 
Schedule of Pre-tax Impact of Derivatives Designated as Net Investment Hedges
The following table presents the pre-tax impact of derivatives and other instruments designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other material gains (losses) reclassified from accumulated other comprehensive loss to income during the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
Amount of gain (loss) recognized in AOCILocation 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)
202520242023202520242023
Cross currency swaps$(19)$70 $43 Interest expense, net$11 $$24 
Euro denominated notes (foreign denominated debt)(209)78 N/A— — — 
Sterling denominated notes (foreign denominated debt)— (5)(11)N/A— — — 
Total$(228)$143 $35 $11 $$24 
Schedule of Pre-tax Gains (Losses) on Derivatives Not Designated as Hedges Recognized
The following table presents the pre-tax gains (losses) on derivatives not designated as hedges and recognized in selling, general and administrative expense and other income (expense), net in the consolidated statements of operations (in millions).
Year Ended December 31,
 202520242023
Interest rate swaps$— $19 $63 
Total return swaps50 31 46 
Total in selling, general and administrative expense50 50 109 
Interest rate swaps— (3)20 
Cross-currency swaps(8)
Foreign exchange derivatives32 (27)
Credit contracts(17)— — 
Total in other income (expense), net
(29)28 
Total$57 $21 $137 
v3.25.4
FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The table below presents assets and liabilities measured at fair value on a recurring basis (in millions).
 
December 31, 2025
CategoryBalance Sheet LocationLevel 1Level 2Level 3Total
Assets
Cash equivalents:
Time depositsCash and cash equivalents$— $107 $— $107 
Equity securities:
Money market fundsCash and cash equivalents61 — — 61 
Mutual fundsPrepaid expenses and other current assets14 — — 14 
Company-owned life insurance contractsPrepaid expenses and other current assets— — 
Mutual fundsOther noncurrent assets205 — — 205 
Company-owned life insurance contractsOther noncurrent assets— 105 — 105 
Total$280 $214 $— $494 
Liabilities
Deferred compensation planAccrued liabilities$66 $— $— $66 
Deferred compensation planOther noncurrent liabilities682 — — 682 
Total$748 $— $— $748 
December 31, 2024
CategoryBalance Sheet LocationLevel 1Level 2Level 3Total
Assets
Cash equivalents:
Time depositsCash and cash equivalents$— $95 $— $95 
Equity securities:
Money market fundsCash and cash equivalents46 — — 46 
Mutual fundsPrepaid expenses and other current assets16 — — 16 
Company-owned life insurance contractsPrepaid expenses and other current assets— — 
Mutual fundsOther noncurrent assets216 — — 216 
Company-owned life insurance contractsOther noncurrent assets— 102 — 102 
Total$278 $198 $— $476 
Liabilities
Deferred compensation planAccrued liabilities$62 $— $— $62 
Deferred compensation planOther noncurrent liabilities650 — — 650 
Total$712 $— $— $712 
v3.25.4
SHARE-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Components of Share-Based Compensation Expense
The table below presents the components of share-based compensation expense (in millions).
Year Ended December 31,
202520242023
PRSUs$239 $89 $65 
RSUs457 415 375 
Stock options73 53 60 
Total share-based compensation expense$769 $557 $500 
Tax benefit recognized$115 $96 $97 
Schedule of PRSU Activity, RSU Activity and Stock Option Activity
The table below presents PRSU activity (in millions, except years and weighted-average grant date fair value).
PRSUsWeighted-
Average
Grant
Date Fair Value
Weighted-Average
Remaining
Contractual
Term
(years)
Aggregate
Fair
Value
Outstanding as of December 31, 20249.8 $11.20 1.2$104 
Granted4.8 $11.79 
Performance adjustments2.6 $8.64 
Converted(4.3)$9.57 $48 
Forfeited(0.1)$10.06 
Outstanding as of December 31, 202512.8 $11.87 1.0$370 
Vested and expected to vest as of December 31, 202512.8 $11.87 1.0$370 
Convertible as of December 31, 20252.5 $11.05 0.0$72 
The table below presents RSU activity (in millions, except years and weighted-average grant date fair value).

RSUs
Weighted-
Average
Grant
Date Fair Value
Weighted-Average
Remaining
Contractual
Term
(years)
Aggregate
Fair
Value
Outstanding as of December 31, 202478.8 $11.41 1.6$835 
Granted43.0 $11.13 
Vested(31.5)$12.69 $388 
Forfeited(6.1)$10.42 
Outstanding as of December 31, 202584.2 $10.81 1.2$2,432 
Vested and expected to vest as of December 31, 202584.2 $10.81 1.2$2,432 
The table below presents stock option activity (in millions, except years and weighted-average exercise price).
Stock OptionsWeighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
Outstanding as of December 31, 202436.0 $30.90 2.7$
Granted25.1 $10.31 
Exercised(2.1)$13.96 $12 
Forfeited(12.9)$30.02 
Outstanding as of December 31, 202546.1 $20.68 4.8$551 
Vested and expected to vest as of December 31, 202546.1 $20.68 4.8$551 
Exercisable as of December 31, 20258.5 $33.92 2.6$25 
Schedule of Fair Value of Stock Options Estimated Using the Black-Scholes Option-Pricing Model
The fair value of stock options is estimated using the Black-Scholes option-pricing model or a Monte Carlo Simulation. The weighted-average assumptions used to determine the fair value of stock options as of the date of grant during 2025, 2024 and 2023 were as follows.
Year Ended December 31,
202520242023
Black-Scholes option-pricing model
Risk-free interest rate3.97 %4.19 %4.35 %
Expected term (years)5.04.74.5
Expected volatility54.49 %54.37 %54.80 %
Monte Carlo simulation
Risk-free interest rate4.11 %N/AN/A
Expected term (years) (1)
5.0N/AN/A
Expected volatility55.34 %N/AN/A
(1) The expected term represents the period from the grant date through the performance period.
v3.25.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Components of Loss Before Income Taxes
The domestic and foreign components of income (loss) before income taxes were as follows (in millions).
 Year Ended December 31,
 202520242023
Domestic$744 $(11,843)$(4,702)
Foreign895 455 839 
Income (loss) before income taxes$1,639 $(11,388)$(3,863)
Schedule of Components of Provision for Income Taxes
The components of the provision for income taxes were as follows (in millions).
 Year Ended December 31,
 202520242023
Current:
Federal$1,025 $983 $753 
State and local131 321 57 
Foreign444 522 750 
1,600 1,826 1,560 
Deferred:
Federal(601)(1,488)(1,845)
State and local(113)(276)(548)
Foreign32 49 
(710)(1,732)(2,344)
Income tax expense (benefit)$890 $94 $(784)
Schedule of Effective Income Tax Rate Reconciliation
We adopted ASU 2023-09 on a prospective basis beginning with the year ended December 31, 2025. A reconciliation of the Company’s effective income tax rate to the 21% U.S. federal statutory income tax rate for the year ended December 31, 2025, reflecting the adoption of ASU 2023-09, is presented below (in millions):
Year Ended December 31, 2025
U.S. federal statutory tax rate$344 21 %
State and local income taxes, net of federal income tax effects(1)
(14)(1)%
Foreign tax effects:
UK:
Statutory tax rate differential25 %
Tax incentives(102)(6)%
Other16 %
Canada withholding taxes61 %
Withholding taxes from other foreign jurisdictions(2)
256 15 %
Other foreign jurisdictions75 %
Effect of cross-border tax laws:
Foreign branch income 62 %
Other(19)(1)%
Tax credits:
Foreign tax credits(270)(16)%
Research and development credit(46)(3)%
Changes in valuation allowances242 15 %
Nontaxable or nondeductible items:
Compensation 89 %
Indemnification costs47 %
Transaction costs42 %
Other16 %
Change in unrecognized tax benefits84 %
Other adjustments(18)(1)%
Income tax expense$890 54 %
(1) State taxes in California contributed to the majority (greater than 50%) of the tax effect in this category.
(2) The majority of tax effect in this category is from Brazil (2%), China (2%), Mexico (2%), Spain (-1%), Italy (1%), Chile (1%), Australia (1%) and Argentina (1%).
A reconciliation of the Company’s effective income tax rate to the 21% U.S. federal statutory income tax rate for the years prior to the adoption of ASU 2023-09, is presented below:
Year Ended December 31,
20242023
Pre-tax income at U.S. federal statutory income tax rate$(2,391)21 %$(811)21 %
Non-deductible goodwill impairment1,881 (17)%— — %
State and local income taxes, net of federal tax benefit30 — %(388)10 %
Effect of foreign operations331 (3)%342 (9)%
Change in unrecognized tax benefits153 (1)%33 (1)%
Other, net90 (1)%40 (1)%
Income tax expense (benefit)$94 (1)%$(784)20 %
Schedule of Components of Net Deferred Tax Assets and Liabilities
Components of deferred income tax assets and liabilities were as follows (in millions).
 December 31,
 20252024
Deferred income tax assets:
Tax attribute carry-forward$2,894 $2,661 
Lease liabilities937 793 
Accrued liabilities and other1,144 1,180 
Total deferred income tax assets4,975 4,634 
Valuation allowance(2,398)(2,043)
Net deferred income tax assets2,577 2,591 
Deferred income tax liabilities:
Accounts receivable(248)(267)
Intangible assets(5,889)(6,916)
Right-of-use assets(756)(636)
Property and equipment(567)(273)
Content rights(272)(342)
Equity method investments and other outside basis differences(85)(61)
Other(521)(468)
Total deferred income tax liabilities(8,338)(8,963)
Net deferred income tax liabilities$(5,761)$(6,372)
The Company’s net deferred income tax assets and liabilities were reported on the consolidated balance sheets as follows (in millions).
 December 31,
 20252024
Noncurrent deferred income tax assets (included within other noncurrent assets)$622 $613 
Deferred income tax liabilities(6,383)(6,985)
Net deferred income tax liabilities$(5,761)$(6,372)
Schedule of Loss Carry-Forwards
The Company’s loss carry-forwards were reported on the consolidated balance sheets as follows (in millions).
FederalStateForeign
Loss carry-forwards$56 $1,313 $7,903 
Deferred tax asset related to loss carry-forwards12 62 1,923 
Valuation allowance against loss carry-forwards(6)(56)(1,581)
Earliest expiration date of loss carry-forwards202820262026
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest and penalty amounts) is as follows (in millions).
 Year Ended December 31,
 202520242023
Beginning balance$2,371 $2,147 $1,929 
Additions based on tax positions related to the current year83 148 147 
Additions for tax positions of prior years123 250 195 
Additions for tax positions acquired in business combinations— — 247 
Reductions for tax positions of prior years(101)(76)(275)
Settlements(37)(30)(46)
Reductions due to lapse of statutes of limitations(123)(51)(62)
Changes due to foreign currency exchange rates40 (17)12 
Ending balance$2,356 $2,371 $2,147 
v3.25.4
RETIREMENT SAVINGS PLANS (Tables)
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Contributions to Multiemployer Pension and Health and Welfare Benefit Plans
The following table summarizes the Company’s contributions to multiemployer pension and health and welfare benefit plans (in millions).
Year Ended December 31,
202520242023
Pension benefits$102 $115 $128 
Health and welfare benefits226 248 153 
Total contributions$328 $363 $281 
Schedule of Assumptions Determined The table below describes how the assumptions are determined.
AssumptionDescription
Discount rateBased on a bond portfolio approach that includes high-quality debt instruments with maturities matching the Company’s expected benefit payments from the plans.
Long-term rate of return on plan assets
Based on the weighted-average expected rate of return and capital market forecasts for each asset class employed and also considers the Company’s historical compounded return on plan assets for 10 and 15-year periods.
Increase in compensation levelsBased on past experience and the near-term outlook.
Mortality Various mortality tables adjusted and projected using mortality improvement rates.
Schedule of Plan Assets and Obligations of the Pension Plans Based Upon a Valuation and Weighted Average Assumptions Used to Determine Benefit Obligations
The following tables present information about plan assets and obligations of the pension plans based upon a valuation as of December 31, 2025 and 2024, respectively (in millions).
December 31, 2025December 31, 2024
Accumulated benefit obligation$716 $683 
Change in projected benefit obligation:
Projected benefit obligation at beginning of year $683 $753 
Service cost
Interest cost35 33 
Benefits paid(40)(45)
Actuarial losses (gains)18 (48)
Curtailments(1)— 
Settlement charges(14)(2)
Effects of foreign currency exchange rate changes and other33 (10)
Projected benefit obligation at end of year716 683 
Plan assets:
Fair value at beginning of year471 540 
Actual return on plan assets10 (46)
Company contributions35 32 
Benefits paid(40)(45)
Settlement charges(14)(3)
Effects of foreign currency exchange rate changes and other31 (7)
Fair value at end of year493 471 
Under funded status$(223)$(212)
Amounts recognized as assets and liabilities on the consolidated balance sheets:
Other noncurrent assets$34 $65 
Accrued liabilities(27)(29)
Other noncurrent liabilities(230)(248)
Total$(223)$(212)
Amounts recognized in accumulated other comprehensive loss consist of:
Prior service cost$$— 
Net loss149 104 
Total$152 $104 
The weighted average assumptions used to determine benefit obligations of the pension plans were as follows.
December 31, 2025December 31, 2024
Discount rate5.06 %5.20 %
Rate of compensation increases3.30 %3.16 %
Schedule of Weighted Average Pension Plans Asset Allocations by Asset Category The following table presents the weighted average pension plans asset allocations by asset category (in millions).
December 31, 2025
Investment TypeTargetActual
Debt securities%%
Equity securities10 %%
Fixed income securities72 %80 %
Multi-asset credit fund%%
Real assets%%
Hedge funds%— %
Cash%%
Total100 %100 %
Schedule of Allocation of Plan Assets
December 31, 2025
TotalLevel 1Level 2Level 3
Debt securities$22 $22 $— $— 
Equity securities24 24 — — 
Fixed income securities394 — — 394 
Multi-asset credit fund32 — 32 — 
Cash— — 
Total plan assets measured at fair value$480 $54 $32 $394 
Assets held at net asset value practical expedient
Real assets13 
Total plan assets$493 
December 31, 2024
TotalLevel 1Level 2Level 3
Debt securities$19 $19 $— $— 
Equity securities55 25 30 — 
Fixed income securities444 22 356 66 
Multi-asset credit fund77 — 77 — 
Cash— — 
Total plan assets measured at fair value$601 $72 $463 $66 
Assets held at net asset value practical expedient
Real assets$16 
Hedge funds44 
Total assets held at net asset value practical expedient$60 
Liabilities:
Derivatives(190)
Total plan assets$471 
Schedule of Changes in the Fair Value of the Level 3 Pension Assets
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2025 (in millions).
Fixed Income Funds
Fair value at beginning of year$66 
Unrealized gains
Purchases, issuances, sales and settlements, net315 
Effects of foreign currency exchange rate changes and other
Balance at end of year$394 
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2024 (in millions).
Fixed Income Funds
Fair value at beginning of year$76 
Unrealized losses(5)
Purchases, issuances, sales and settlements, net(5)
Balance at end of year$66 
Schedule of Estimated Future Benefit Payments
The following table presents the estimated future benefit payments expected to be paid out for the defined benefits plans over the next ten years (in millions).
Pension Plans
2026$51 
202745 
202848 
202948 
203047 
Thereafter235 
v3.25.4
SUPPLEMENTAL DISCLOSURES (Tables)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following (in millions).
 December 31,
 Useful Lives20252024
Equipment, furniture, fixtures and other (a)
3 - 7 years
$3,071 $2,613 
Capitalized software costs
1 - 5 years
3,583 3,076 
Land, buildings and leasehold improvements (b)
15 - 30 years
4,038 3,832 
Property and equipment, at cost10,692 9,521 
Accumulated depreciation(4,826)(4,035)
5,866 5,486 
Assets under construction819 601 
Property and equipment, net$6,685 $6,087 
(a) Property and equipment includes assets acquired under finance lease arrangements. Assets acquired under finance lease arrangements are generally amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases. (See Note 12.)
(b) Land has an indefinite life and is not depreciated. Leasehold improvements generally have an estimated useful life equal to the lease term.
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in millions).
December 31,
20252024
Production receivables$1,072 $979 
Content rights and prepaid license fees322 784 
Other current assets1,952 2,056 
Total prepaid expenses and other current assets$3,346 $3,819 
Schedule of Accrued Liabilities
Accrued liabilities consisted of the following (in millions).
December 31,
20252024
Accrued participation and residuals$2,796 $2,953 
Accrued production and content rights payable1,675 1,758 
Accrued payroll and related benefits1,588 1,495 
Accrued withholding taxes668 644 
Other accrued liabilities2,899 3,588 
Total accrued liabilities$9,626 $10,438 
Other noncurrent liabilities
Other noncurrent liabilities consisted of the following (in millions).
December 31,
20252024
Operating lease liabilities$3,226 $2,731 
Other noncurrent liabilities8,382 7,339 
Total other noncurrent liabilities$11,608 $10,070 
Schedule of Other Income (Expense), Net
Other income (expense), net, consisted of the following (in millions).
 Year Ended December 31,
 202520242023
Foreign currency losses, net$$(323)$(173)
(Losses) gains on derivative instruments, net21 (9)28 
Change in the value of investments with readily determinable fair value10 (1)37 
Change in the value of equity investments without readily determinable fair value(4)(11)(73)
Gain on sale of equity method investments — 194 — 
Interest income206 210 179 
Indemnification receivable accrual(171)77 (53)
Other income, net(5)13 26 
Total other income (expense), net
$65 $150 $(29)
Schedule of Supplemental Cash Flow Information
We adopted ASU 2023-09 on a prospective basis beginning with the year ended December 31, 2025. Cash paid for taxes, reflecting the adoption of ASU 2023-09 for the year ended December 31, 2025, cash paid for taxes for the years ended December 31, 2024 and 2023, and other supplemental cash flow information is presented below (in millions):
Year Ended December 31,
202520242023
Cash paid for taxes, net
Federal taxes$1,287 
State taxes76 
Foreign taxes563 
Total$1,926 $1,113 $1,440 
Cash paid for interest$2,295 $1,996 $2,237 
Non-cash investing and financing activities:
Accrued purchases of property and equipment$38 $36 $41 
Assets acquired under finance lease and other arrangements320 390 235 
Non-cash settlement of PRSU awards115 59 35 
Non-cash consideration related to the sale and purchase of the Ranch and Burbank Studios Lots— — 350 
Non-cash consideration related to the transaction agreements with JCOM— — 70 
Schedule of Cash and Cash Equivalents
Cash, Cash Equivalents, and Restricted Cash
 December 31, 2025December 31, 2024
Cash and cash equivalents$4,566 $5,312 
Restricted cash - other current assets (a)
104 
Total cash, cash equivalents, and restricted cash $4,570 $5,416 
(a) Restricted cash at December 31, 2024 primarily included cash posted as collateral related to the Company’s revolving receivables program. (See Note 8.)
Schedule of Restricted Cash
Cash, Cash Equivalents, and Restricted Cash
 December 31, 2025December 31, 2024
Cash and cash equivalents$4,566 $5,312 
Restricted cash - other current assets (a)
104 
Total cash, cash equivalents, and restricted cash $4,570 $5,416 
(a) Restricted cash at December 31, 2024 primarily included cash posted as collateral related to the Company’s revolving receivables program. (See Note 8.)
Schedule of Supplier Finance Program
Changes in confirmed accrued content producer liabilities were as follows (in millions). 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.
Year Ended December 31,
20252024
Obligations outstanding at the beginning of the year$307 $338 
Invoices confirmed during the year678 949 
Invoices paid during the year(726)(980)
Foreign currency translation and other adjustments— 
Obligations outstanding at the end of the year$260 $307 
Schedule of Changes in the Components of Accumulated Other Comprehensive Loss, Net of Taxes
The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions).
Currency TranslationDerivative AdjustmentsPension PlansAccumulated
Other
Comprehensive Income (Loss)
December 31, 2022$(1,498)$14 $(39)$(1,523)
Other comprehensive income (loss) before reclassifications
799 16 (21)794 
Reclassifications from accumulated other comprehensive loss to net income
— (12)— (12)
Other comprehensive income (loss)799 (21)782 
December 31, 2023(699)18 (60)(741)
Other comprehensive income (loss) before reclassifications(358)32 (14)(340)
Reclassifications from accumulated other comprehensive loss to net income
49 (35)— 14 
Other comprehensive income (loss)(309)(3)(14)(326)
December 31, 2024(1,008)15 (74)(1,067)
Other comprehensive income (loss) before reclassifications664 16 (30)650 
Reclassifications from accumulated other comprehensive loss to net income
— 10 
Other comprehensive income (loss)666 24 (30)660 
December 31, 2025$(342)$39 $(104)$(407)
v3.25.4
REDEEMABLE NONCONTROLLING INTERESTS (Tables)
12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
Schedule of Redeemable Noncontrolling Interests with its Changes The table below summarizes the Company’s redeemable noncontrolling interests balances (in millions).
December 31,
20252024
Discovery Family$— $86 
Other 19 23 
Total$19 $109 
The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions).
December 31,
202520242023
Beginning balance$109 $165 $318 
Cash distributions to redeemable noncontrolling interests(12)(35)(30)
Reclassification of redeemable noncontrolling interest to noncontrolling interest(74)— (22)
Redemption of redeemable noncontrolling interest— — (111)
Comprehensive income adjustments:
Net (loss) income attributable to redeemable noncontrolling interests(2)(42)
Currency translation on redemption values— — (3)
Retained earnings adjustments:
Adjustments of carrying value to redemption value (redemption value does not equal fair value)(1)18 
Adjustments of carrying value to redemption value (redemption value equals fair value)(1)
Ending balance$19 $109 $165 
v3.25.4
RELATED PARTY TRANSACTIONS (Tables)
12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Transactions with Related Parties and Receivables and Payables
The table below presents a summary of the transactions with related parties (in millions).
Year Ended December 31,
202520242023
Revenues and service charges (a)
$773 $1,404 $2,790 
Expenses$267 $268 $357 
Distributions to noncontrolling interests and redeemable noncontrolling interests$198 $193 $301 
(a) The decrease in revenue and service charges in 2025 and 2024 is primarily attributable to transactions with certain entities that are no longer considered related parties, as such entities and the Company ceased to share common directorship in 2025 and 2024.
The table below presents receivables due from and payables due to related parties (in millions).
December 31,
20252024
Receivables$116 $254 
Payables$17 $13 
v3.25.4
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Tables)
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Significant Contractual Commitments
In the normal course of business, the Company enters into various commitments, which primarily include programming and talent arrangements, operating and finance leases (See Note 12), arrangements to purchase various goods and services, long-term debt (see Note 11), pension funding and payments (See Note 17), and future funding commitments to equity method investees (See Note 10) (in millions).
Year Ending December 31,ContentOther Purchase ObligationsOther Employee ObligationsTotal
2026$5,736 $1,384 $478 $7,598 
20274,333 1,082 301 5,716 
20283,354 475 167 3,996 
20291,688 37 72 1,797 
20301,641 33 53 1,727 
Thereafter2,993 16 54 3,063 
Total$19,745 $3,027 $1,125 $23,897 
v3.25.4
REPORTABLE SEGMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Revenues by Segment
The tables below present summarized financial information for each of the Company’s reportable segments, corporate, and inter-segment eliminations (in millions).
Revenues
Year Ended December 31,
202520242023
Streaming$10,876 $10,313 $10,154 
Studios12,619 11,607 12,192 
Global Linear Networks17,656 20,175 21,244 
Corporate— 
Inter-segment eliminations (3,857)(2,782)(2,269)
Total revenues$37,296 $39,321 $41,321 
Reconciliation of Revenues to Segment Adjusted EBITDA
Year Ended December 31, 2025
StreamingStudiosGlobal Linear Networks
Revenues$10,876 $12,619 $17,656 
Less:
Content expense (a)
6,145 7,108 6,522 
Personnel expense (b)
760 963 2,009 
Marketing expense1,000 1,066 529 
Other segment expenses (c)
1,601 937 2,184 
Segment Adjusted EBITDA$1,370 $2,545 $6,412 
Year Ended December 31, 2024
StreamingStudiosGlobal Linear Networks
Revenues$10,313 $11,607 $20,175 
Less:
Content expense (a)
6,183 7,260 7,135 
Personnel expense (b)
773 943 2,153 
Marketing expense1,147 1,064 454 
Other segment expenses (c)
1,533 688 2,284 
Segment Adjusted EBITDA$677 $1,652 $8,149 

Year Ended December 31, 2023
StreamingStudiosGlobal Linear Networks
Revenues$10,154 $12,192 $21,244 
Less:
Content expense (a)
6,454 7,112 7,140 
Personnel expense (b)
844 927 2,173 
Marketing expense1,313 1,268 439 
Other segment expenses (c)
1,440 702 2,429 
Segment Adjusted EBITDA$103 $2,183 $9,063 
(a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.
(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).
(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.
Schedule of Reconciliation of Segment Adjusted EBITDA to Loss Before Income Taxes
Reconciliation of Segment Adjusted EBITDA to loss before income taxes
Year Ended December 31,
202520242023
Streaming$1,370 $677 $103 
Studios2,545 1,652 2,183 
Global Linear Networks6,412 8,149 9,063 
Segment Adjusted EBITDA$10,327 $10,478 $11,349 
Depreciation and amortization5,684 7,037 7,985 
Employee share-based compensation751 546 488 
Restructuring and other charges399 447 585 
Transaction and integration costs166 242 162 
Facility consolidation costs10 32 
Impairment and amortization of fair value step-up for content784 1,139 2,373 
Amortization of capitalized interest for content40 46 46 
Impairments and loss on dispositions172 9,603 77 
Corporate1,096 1,260 1,242 
Inter-segment eliminations 487 186 (93)
Other (income) expense, net(65)(150)29 
Loss from equity investees, net24 121 82 
Gain on extinguishment of debt(2,945)(632)(17)
Interest expense, net2,085 2,017 2,221 
Income (loss) before income taxes$1,639 $(11,388)$(3,863)
Schedule of Content Amortization and Impairment Expense
Content Amortization and Impairment Expense
Year Ended December 31,
202520242023
Streaming$5,464 $6,416 $6,138 
Studios3,106 5,692 5,074 
Global Linear Networks6,093 4,250 6,630 
Corporate(6)
Inter-segment eliminations (2,809)(2,250)(1,697)
Total content amortization and impairment expense$11,855 $14,111 $16,139 
Schedule of Revenues by Geography
Revenues by Geography
 Year Ended December 31,
 202520242023
U.S.$24,946 $26,434 $28,004 
Non-U.S.12,350 12,887 13,317 
Total revenues$37,296 $39,321 $41,321 
Schedule of Property and Equipment by Geography
Property and Equipment by Geography
 December 31,
 20252024
U.S.$4,494 $4,430 
U.K.1,386 991 
Other non-U.S.805 666 
Total property and equipment, net$6,685 $6,087 
v3.25.4
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details)
1 Months Ended 12 Months Ended
Feb. 27, 2026
USD ($)
$ / shares
$ / day
Jun. 30, 2025
company
Dec. 31, 2025
segment
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Number of publicly traded companies | company   2  
Number of reportable segments | segment     3
Netflix Merger Agreement | Paramount Skydance Corporation | Subsequent Event      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Cash payment for termination fee $ 2,800,000,000    
Termination fee reimbursement $ 7,000,000,000.0    
PSKY Merger Agreement | Subsequent Event      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Investment cash consideration per share (in dollars per share) | $ / shares $ 31.00    
Ticking consideration multiple | $ / day 0.00277778    
Maximum ticking consideration in 90 day period $ 0.25    
Expected merger consideration 45,720,000,000    
Termination fees 3,000,000,000.0    
Termination fee, reimbursement for obligation to complete exchange offer, maximum $ 1,528,000,000    
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Receivables (Narrative) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Accounting Policies [Abstract]  
Revolving receivables agreement, maximum transfer amount $ 5,000
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Film and Television Content Rights (Narrative) (Details)
12 Months Ended
Dec. 31, 2025
Theatrical Film Production Costs  
Business Combination [Line Items]  
Revenue estimation period (in years) 10 years
Television, Delivery of First Episode  
Business Combination [Line Items]  
Revenue estimation period (in years) 10 years
Television, Delivery of Most Recent Episode  
Business Combination [Line Items]  
Revenue estimation period (in years) 5 years
Games  
Business Combination [Line Items]  
Revenue estimation period (in years) 2 years
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation Expense (Narrative) (Details)
12 Months Ended
Dec. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Dividend yield 0.00%
PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percentage of target met (as a percent) 70.00%
Discretionary vesting percentage 100.00%
PRSUs | Tranche Two  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights (as a percent) 0.00%
PRSUs | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 1 year
Award vesting rights (as a percent) 0.00%
PRSUs | Minimum | Tranche One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights (as a percent) 100.00%
PRSUs | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 3 years
Award vesting rights (as a percent) 300.00%
PRSUs | Maximum | Tranche One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights (as a percent) 300.00%
Restricted Stock Units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award requisite holding period, at least 6 months
Restricted Stock Units (RSUs) | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 3 years
Restricted Stock Units (RSUs) | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 5 years
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award requisite holding period, at least 6 months
Stock options | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 3 years
Expiration period (in years) 7 years
Stock options | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 5 years
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising expense $ 2,104 $ 2,152 $ 2,428
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Collaborative Arrangements (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Amount recorded to loss cap $ 73,000,000 $ 0 $ 0
Costs of revenues, excluding depreciation and amortization 20,885,000,000 22,970,000,000 24,526,000,000
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement and Third Party      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Costs of revenues, excluding depreciation and amortization $ 506,000,000 $ 632,000,000 $ 393,000,000
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations Risk (Narrative) (Details) - Customer Concentration Risk
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
One Customer | Revenue from Contract with Customer Benchmark      
Concentration Risk [Line Items]      
Concentration risk, percentage (as a percent) 12.00% 13.00%  
One Customer | Receivables, net      
Concentration Risk [Line Items]      
Concentration risk, percentage (as a percent) 10.00%    
Two Customers | Revenue from Contract with Customer Benchmark      
Concentration Risk [Line Items]      
Concentration risk, percentage (as a percent)     24.00%
v3.25.4
EQUITY AND EARNINGS PER SHARE - Repurchase Programs (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Feb. 29, 2020
May 31, 2019
Class of Stock [Line Items]          
Treasury stock repurchased to date (in shares) 230,000,000 230,000,000      
Treasury stock repurchased to date $ 8,244,000,000 $ 8,244,000,000      
Series A Common Stock          
Class of Stock [Line Items]          
Treasury stock repurchased to date (in shares) 3,000,000        
Treasury stock repurchased to date $ 171,000,000        
Series C Common Stock          
Class of Stock [Line Items]          
Treasury stock repurchased to date (in shares) 229,000,000        
Treasury stock repurchased to date $ 8,168,000,000        
Common Stock          
Class of Stock [Line Items]          
Stock repurchased (in shares) 0 0 0    
February 2020 Repurchase Program | Common Stock          
Class of Stock [Line Items]          
Stock repurchase contract, prepaid notional contract value       $ 2,000,000,000  
May 2019 Repurchase Program | Common Stock          
Class of Stock [Line Items]          
Stock repurchase contract, prepaid notional contract value         $ 1,000,000,000
v3.25.4
EQUITY AND EARNINGS PER SHARE - Schedule of Computation of Earnings Per Share, Weighted Average and Income Available to Stockholders (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income (loss) $ 749 $ (11,482) $ (3,079)
Less:      
Net (income) loss attributable to noncontrolling interests (24) 129 (38)
Net loss (income) attributable to redeemable noncontrolling interests 2 42 (9)
Redeemable noncontrolling interest adjustments of carrying value to redemption value (redemption value does not equal fair value) 1 (3) 0
Net loss available to Warner Bros. Discovery, Inc. Series A common stockholders for basic earnings per share 728 (11,314) (3,126)
Net loss available to Warner Bros. Discovery, Inc. Series A common stockholders for diluted earnings per share $ 728 $ (11,314) $ (3,126)
Denominator — weighted average:      
Common shares outstanding — basic (in shares) 2,475 2,450 2,436
Dilutive effect of share-based awards (in shares) 55 0 0
Common shares outstanding — diluted (in shares) 2,530 2,450 2,436
Basic net loss per share allocated to common stockholders (in dollars per share) $ 0.29 $ (4.62) $ (1.28)
Diluted loss per share allocated to common stockholders (in dollars per share) $ 0.29 $ (4.62) $ (1.28)
v3.25.4
EQUITY AND EARNINGS PER SHARE - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
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) 43 76 69
v3.25.4
ACQUISITIONS AND DISPOSITIONS - BluTV (Narrative) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Nov. 30, 2023
Business Combination [Line Items]          
Cash used for business acquisitions   $ 0 $ 0 $ 50  
BluTV          
Business Combination [Line Items]          
Equity method investment, ownership (as a percent)         35.00%
BluTV          
Business Combination [Line Items]          
Percentage of voting interests acquired (as a percent) 65.00%     65.00%  
Cash used for business acquisitions $ 50        
v3.25.4
ACQUISITIONS AND DISPOSITIONS - Dispositions (Narrative) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 31, 2024
May 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Minority interest sale price   $ 324      
Gain on sale of equity method investments   $ 203 $ 0 $ 194 $ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Formula E          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Minority interest sale price $ 217        
Gain on sale of equity method investments $ 61        
All3Media          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Ownership   50.00%      
Minority interest sale price   $ 324      
Gain on sale of equity method investments   $ 203      
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in the Carrying Value of Goodwill (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]          
Beginning balance     $ 25,667,000,000 $ 34,969,000,000  
Impairment of goodwill   $ 0   (9,147,000,000) $ 0
Goodwill Impairment Loss Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag     Impairment of goodwill    
Dispositions     $ (16,000,000)    
Foreign currency translation and other adjustments     282,000,000 (155,000,000)  
Ending balance   25,667,000,000 25,933,000,000 25,667,000,000 34,969,000,000
Streaming          
Goodwill [Roll Forward]          
Beginning balance     8,051,000,000 8,067,000,000  
Impairment of goodwill       0  
Dispositions     0    
Foreign currency translation and other adjustments     20,000,000 (16,000,000)  
Ending balance   8,051,000,000 8,071,000,000 8,051,000,000 8,067,000,000
Studios          
Goodwill [Roll Forward]          
Beginning balance     9,197,000,000 9,272,000,000  
Impairment of goodwill       0  
Dispositions     0    
Foreign currency translation and other adjustments     155,000,000 (75,000,000)  
Ending balance   9,197,000,000 9,352,000,000 9,197,000,000 9,272,000,000
Global Linear Networks          
Goodwill [Roll Forward]          
Beginning balance     8,419,000,000 17,630,000,000  
Impairment of goodwill $ (9,147,000,000)     (9,147,000,000)  
Dispositions     (16,000,000)    
Foreign currency translation and other adjustments     107,000,000 (64,000,000)  
Ending balance   $ 8,419,000,000 $ 8,510,000,000 $ 8,419,000,000 $ 17,630,000,000
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Goodwill [Line Items]          
Amortization of intangible assets     $ 4,605,000,000 $ 5,935,000,000 $ 6,854,000,000
Impairment of goodwill   $ 0   9,147,000,000 $ 0
Measurement Input, Long-Term Revenue Growth Rate | Global Linear Networks          
Goodwill [Line Items]          
Goodwill, measurement input (as a percent) (0.03)        
Measurement Input, Discount Rate | Global Linear Networks          
Goodwill [Line Items]          
Goodwill, measurement input (as a percent) 0.105        
Trademarks, Tradenames and Franchise Rights          
Goodwill [Line Items]          
Amortization of intangible assets       368,000,000  
Intangible Assets, Amortization Period | Trade names          
Goodwill [Line Items]          
Amortization of intangible assets       184,000,000  
Global Linear Networks          
Goodwill [Line Items]          
Goodwill, accumulated impairments   10,770,000,000 10,770,000,000 10,770,000,000  
Impairment of goodwill $ 9,147,000,000     9,147,000,000  
Streaming          
Goodwill [Line Items]          
Goodwill, accumulated impairments   0 0 0  
Impairment of goodwill       0  
Studios          
Goodwill [Line Items]          
Goodwill, accumulated impairments   $ 0 $ 0 0  
Impairment of goodwill       $ 0  
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross $ 56,817 $ 56,556
Accumulated  Amortization (29,053) (24,257)
Net $ 27,764 32,299
Trademarks and trade names    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 27 years  
Gross $ 22,939 22,835
Accumulated  Amortization (5,872) (4,212)
Net $ 17,067 18,623
Affiliate, advertising and subscriber relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 8 years  
Gross $ 24,359 24,240
Accumulated  Amortization (21,191) (18,528)
Net $ 3,168 5,712
Franchises    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 35 years  
Gross $ 7,900 7,900
Accumulated  Amortization (1,144) (789)
Net $ 6,756 7,111
Character rights    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 14 years  
Gross $ 995 995
Accumulated  Amortization (269) (197)
Net $ 726 798
Other    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 6 years  
Gross $ 624 586
Accumulated  Amortization (577) (531)
Net $ 47 $ 55
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Amortization Expense Relating to Intangible Assets Subject to Amortization (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Amortization expense  
2026 $ 3,426
2027 2,626
2028 2,007
2029 1,767
2030 1,559
Thereafter $ 16,379
v3.25.4
RESTRUCTURING AND OTHER CHARGES - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
restructuringInitiative
Dec. 31, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]      
Number of additional restructuring initiatives | restructuringInitiative   2  
Restructuring and other charges $ 399 $ 447 $ 585
Organization Restructuring Costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring and other charges   246 359
Content Impairment, Content Development Costs and Write Offs      
Restructuring Cost and Reserve [Line Items]      
Restructuring and other charges   165 111
Contract Termination And Other Restructuring Costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring and other charges   36  
Facility Consolidation Activities      
Restructuring Cost and Reserve [Line Items]      
ROU asset impairment charges $ 112 411  
Contract Termination and Facility Consolidation Activities | WarnerMedia      
Restructuring Cost and Reserve [Line Items]      
Restructuring and other charges   $ 165 $ 115
v3.25.4
RESTRUCTURING AND OTHER CHARGES - Schedule of Restructuring and Other Charges by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Restructuring and other charges $ 399 $ 447 $ 585
Operating Segments | Streaming      
Segment Reporting Information [Line Items]      
Restructuring and other charges 27 3 66
Operating Segments | Studios      
Segment Reporting Information [Line Items]      
Restructuring and other charges 18 263 225
Operating Segments | Global Linear Networks      
Segment Reporting Information [Line Items]      
Restructuring and other charges 69 85 201
Corporate and inter-segment eliminations      
Segment Reporting Information [Line Items]      
Restructuring and other charges $ 285 $ 96 $ 93
v3.25.4
RESTRUCTURING AND OTHER CHARGES - Schedule of Changes in Restructuring Liabilities Recorded in Accrued Liabilities and Other Noncurrent Liabilities by Category (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Reserve    
Beginning balance $ 289 $ 460
Other accruals 212 (17)
Cash paid (411) (423)
Ending balance 277 289
Contract termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 1 4
Employee termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 186 265
Operating Segments | Streaming    
Restructuring Reserve    
Beginning balance 31 80
Other accruals 1 (20)
Cash paid (35) (53)
Ending balance 23 31
Operating Segments | Streaming | Contract termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 0 0
Operating Segments | Streaming | Employee termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 26 24
Operating Segments | Studios    
Restructuring Reserve    
Beginning balance 95 98
Other accruals (3) 1
Cash paid (55) (83)
Ending balance 58 95
Operating Segments | Studios | Contract termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 0 0
Operating Segments | Studios | Employee termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 21 79
Operating Segments | Global Linear Networks    
Restructuring Reserve    
Beginning balance 105 202
Other accruals 3 (2)
Cash paid (105) (180)
Ending balance 69 105
Operating Segments | Global Linear Networks | Contract termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 0 1
Operating Segments | Global Linear Networks | Employee termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 66 84
Corporate    
Restructuring Reserve    
Beginning balance 58 80
Other accruals 211 4
Cash paid (216) (107)
Ending balance 127 58
Corporate | Contract termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net 1 3
Corporate | Employee termination accruals, net    
Restructuring Reserve    
Contract/Employee termination accruals, net $ 73 $ 78
v3.25.4
REVENUES - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Revenues $ 37,296 $ 39,321 $ 41,321
Distribution      
Disaggregation of Revenue [Line Items]      
Revenues 19,262 19,701 20,237
Advertising      
Disaggregation of Revenue [Line Items]      
Revenues 7,306 8,090 8,700
Content      
Disaggregation of Revenue [Line Items]      
Revenues 9,647 10,297 11,203
Other      
Disaggregation of Revenue [Line Items]      
Revenues 1,081 1,233 1,181
Operating Segments | Streaming      
Disaggregation of Revenue [Line Items]      
Revenues 10,876 10,313 10,154
Operating Segments | Streaming | Distribution      
Disaggregation of Revenue [Line Items]      
Revenues 9,444 9,022 8,703
Operating Segments | Streaming | Advertising      
Disaggregation of Revenue [Line Items]      
Revenues 1,032 855 548
Operating Segments | Streaming | Content      
Disaggregation of Revenue [Line Items]      
Revenues 388 428 886
Operating Segments | Streaming | Other      
Disaggregation of Revenue [Line Items]      
Revenues 12 8 17
Operating Segments | Studios      
Disaggregation of Revenue [Line Items]      
Revenues 12,619 11,607 12,192
Operating Segments | Studios | Distribution      
Disaggregation of Revenue [Line Items]      
Revenues 8 8 17
Operating Segments | Studios | Advertising      
Disaggregation of Revenue [Line Items]      
Revenues 1 5 15
Operating Segments | Studios | Content      
Disaggregation of Revenue [Line Items]      
Revenues 11,740 10,717 11,358
Operating Segments | Studios | Other      
Disaggregation of Revenue [Line Items]      
Revenues 870 877 802
Operating Segments | Global Linear Networks      
Disaggregation of Revenue [Line Items]      
Revenues 17,656 20,175 21,244
Operating Segments | Global Linear Networks | Distribution      
Disaggregation of Revenue [Line Items]      
Revenues 9,819 10,680 11,521
Operating Segments | Global Linear Networks | Advertising      
Disaggregation of Revenue [Line Items]      
Revenues 6,332 7,306 8,342
Operating Segments | Global Linear Networks | Content      
Disaggregation of Revenue [Line Items]      
Revenues 1,195 1,848 1,005
Operating Segments | Global Linear Networks | Other      
Disaggregation of Revenue [Line Items]      
Revenues 310 341 376
Corporate and inter-segment eliminations      
Disaggregation of Revenue [Line Items]      
Revenues (3,855) (2,774) (2,269)
Corporate and inter-segment eliminations | Distribution      
Disaggregation of Revenue [Line Items]      
Revenues (9) (9) (4)
Corporate and inter-segment eliminations | Advertising      
Disaggregation of Revenue [Line Items]      
Revenues (59) (76) (205)
Corporate and inter-segment eliminations | Content      
Disaggregation of Revenue [Line Items]      
Revenues (3,676) (2,696) (2,046)
Corporate and inter-segment eliminations | Other      
Disaggregation of Revenue [Line Items]      
Revenues $ (111) $ 7 $ (14)
v3.25.4
REVENUES - Schedule of Contract Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Contract liabilities - deferred revenues $ 1,642 $ 1,569
Contract liabilities - other noncurrent liabilities $ 355 $ 206
v3.25.4
REVENUES - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Revenue recognized related to the contract liability (deferred revenues) $ 1,378 $ 1,643
v3.25.4
REVENUES - Schedule of Remaining Performance Obligations by Contract Type (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
$ in Millions
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 12,378
Distribution - fixed price or minimum guarantee  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 2,489
Remaining performance obligations, expected timing of satisfaction, period 5 years
Content licensing and sports sublicensing  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 4,601
Remaining performance obligations, expected timing of satisfaction, period 7 years
Brand licensing  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 4,023
Remaining performance obligations, expected timing of satisfaction, period 37 years 7 days
Advertising  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 1,127
Remaining performance obligations, expected timing of satisfaction, period 7 years
Other  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 138
Remaining performance obligations, expected timing of satisfaction, period 4 years
v3.25.4
SALES OF RECEIVABLES - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]      
Revolving receivables agreement, maximum transfer amount $ 5,000    
Outstanding receivables derecognized 3,700 $ 4,637  
Loss on revolving receivables program 145 116 $ 79
Accounts receivable sold under factoring arrangements $ 257 $ 313  
v3.25.4
SALES OF RECEIVABLES - Schedule of Receivables Sold (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Receivables [Abstract]    
Gross receivables sold/cash proceeds received $ 15,560 $ 15,254
Collections reinvested under revolving receivables program (16,497) (15,818)
Net cash proceeds remitted (937) (564)
Net receivables sold 15,485 15,153
Obligations recorded (Level 3) $ 380 $ 361
v3.25.4
SALES OF RECEIVABLES - Schedule of Amounts Transferred or Pledged (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]    
Restricted cash pledged as collateral $ 4 $ 104
Asset Pledged as Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Gross receivables pledged as collateral 2,632 2,402
Restricted cash pledged as collateral 0 100
Asset Pledged as Collateral | Receivables, net    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Current assets pledged as collateral 2,230 2,039
Asset Pledged as Collateral | Prepaid expenses and other current assets    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Current assets pledged as collateral 0 100
Asset Pledged as Collateral | Other noncurrent assets    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Other noncurrent assets $ 402 $ 363
v3.25.4
CONTENT RIGHTS - Schedule of Components of Content Rights (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Predominantly Monetized Individually    
Predominantly Monetized Individually, Released, less amortization $ 3,006 $ 2,948
Predominantly Monetized Individually, Completed and not released 1,109 794
Predominantly Monetized Individually, In production and other 1,782 1,700
Predominantly Monetized as a Group    
Predominantly Monetized as a Group, Released, less amortization 5,686 5,678
Predominantly Monetized as a Group, Completed and not released 521 767
Predominantly Monetized as a Group, In production and other 2,544 2,008
Total    
Released, less amortization 8,692 8,626
Completed and not released 1,630 1,561
In production and other 4,326 3,708
Predominantly Monetized Individually 5,897 5,442
Predominantly Monetized as a Group 8,751 8,453
Total production costs 14,648 13,895
Licensed content, live programming, and advances, net 4,478 5,744
Game development costs, less amortization 310 247
Total film and television content rights and games 19,436 19,886
Less: Current content rights and prepaid license fees, net (322) (784)
Total noncurrent film and television content rights and games $ 19,114 $ 19,102
v3.25.4
CONTENT RIGHTS - Schedule of Content Amortization (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Predominantly monetized individually $ 2,346 $ 3,999 $ 5,165
Film, Monetized on Its Own, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] Costs of revenues, excluding depreciation and amortization Costs of revenues, excluding depreciation and amortization Costs of revenues, excluding depreciation and amortization
Predominantly monetized as a group $ 9,306 $ 9,554 $ 10,648
Film, Monetized in Film Group, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] Costs of revenues, excluding depreciation and amortization Costs of revenues, excluding depreciation and amortization Costs of revenues, excluding depreciation and amortization
Total content amortization $ 11,652 $ 13,553 $ 15,813
v3.25.4
CONTENT RIGHTS - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Content Expense [Line Items]      
Content impairments $ 203 $ 558 $ 326
Restructuring and other charges $ 399 447 585
WarnerMedia | Contract Termination and Facility Consolidation Activities      
Content Expense [Line Items]      
Restructuring and other charges   $ 165 $ 115
v3.25.4
CONTENT RIGHTS - Schedule of Expected Future Amortization Expense (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Monetized individually  
Year one $ 804
Year two 642
Year three 532
Monetized as a group  
Year one 2,150
Year two 1,225
Year three 849
Licensed content, live programming, and advances  
Year one 1,695
Year two 894
Year three 624
Games  
Year one 8
Year two 0
Year three 0
Completed and not released investment in films and television content:  
Monetized individually 879
Monetized as a group $ 210
v3.25.4
INVESTMENTS - Schedule of Equity Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Schedule of Equity Method Investments [Line Items]    
Equity method investments: $ 697 $ 721
Investments with readily determinable fair values 0 41
Investments without readily determinable fair values 348 353
Total investments 1,045 1,115
Prepaid expenses and other current assets    
Schedule of Equity Method Investments [Line Items]    
Investments without readily determinable fair values $ 17 17
The Chernin Group (TCG) 2.0-A, LP    
Schedule of Equity Method Investments [Line Items]    
Ownership 44.00%  
Equity method investments: $ 276 240
nC+    
Schedule of Equity Method Investments [Line Items]    
Ownership 32.00%  
Equity method investments: $ 153 128
TNT Sports    
Schedule of Equity Method Investments [Line Items]    
Ownership 50.00%  
Equity method investments: $ 10 92
Other    
Schedule of Equity Method Investments [Line Items]    
Equity method investments: $ 258 $ 261
v3.25.4
INVESTMENTS - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
May 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]        
Equity method investments   $ 697 $ 721  
Income (loss) from equity method investments   (24) (121) $ (82)
Minority interest sale price $ 324      
Gain on sale of equity method investments $ 203 0 194 0
Impairment for equity investments without readily determinable fair values   17    
Upward adjustment for equity investments without readily determinable fair values   1    
Equity securities without readily determinable fair value, cumulative impairments   274    
Cumulative upward adjustment for equity investments without readily determinable fair values   23    
TNT Sports        
Schedule of Equity Method Investments [Line Items]        
Equity method investments   10 92  
Impairment recognized in loss from equity investees   $ 79 0 0
Ownership   50.00%    
All3Media        
Schedule of Equity Method Investments [Line Items]        
Ownership 50.00%      
Minority interest sale price $ 324      
Gain on sale of equity method investments $ 203      
Variable Interest Entity, Not Primary Beneficiary        
Schedule of Equity Method Investments [Line Items]        
Variable interest, maximum exposure to loss   $ 492    
Equity method investments   481 550  
Income (loss) from equity method investments   $ 33 $ 24 $ 75
v3.25.4
DEBT - Schedule of Components of Outstanding Debt (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total debt $ 32,845 $ 39,527
Unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting, net (278) (22)
Debt, net of unamortized discount, premium, debt issuance costs, and fair value adjustments for acquisition accounting 32,567 39,505
Current portion of debt (139) (2,748)
Noncurrent portion of debt $ 32,428 36,757
Bridge loan with maturity of 18 months    
Debt Instrument [Line Items]    
Debt instrument, maturity term 18 months  
Bridge loan with maturity of 18 months | Term Loan    
Debt Instrument [Line Items]    
Total debt $ 15,000 0
Bridge loan with maturity of 18 months | Weighted Average | Term Loan    
Debt Instrument [Line Items]    
Weighted-average interest rate (as a percent) 7.22%  
Senior notes with maturities of 5 years or less    
Debt Instrument [Line Items]    
Debt instrument, maturity term 5 years  
Senior notes with maturities of 5 years or less | Senior Notes    
Debt Instrument [Line Items]    
Total debt $ 6,659 13,744
Senior notes with maturities of 5 years or less | Weighted Average | Senior Notes    
Debt Instrument [Line Items]    
Weighted-average interest rate (as a percent) 3.92%  
Senior notes with maturities between 5 and 10 years | Senior Notes    
Debt Instrument [Line Items]    
Total debt $ 3,509 7,853
Senior notes with maturities between 5 and 10 years | Weighted Average | Senior Notes    
Debt Instrument [Line Items]    
Weighted-average interest rate (as a percent) 4.37%  
Senior notes with maturities between 5 and 10 years | Minimum    
Debt Instrument [Line Items]    
Debt instrument, maturity term 5 years  
Senior notes with maturities between 5 and 10 years | Maximum    
Debt Instrument [Line Items]    
Debt instrument, maturity term 10 years  
Senior notes with maturities greater than 10 years    
Debt Instrument [Line Items]    
Debt instrument, maturity term 10 years  
Senior notes with maturities greater than 10 years | Senior Notes    
Debt Instrument [Line Items]    
Total debt $ 7,677 $ 17,930
Senior notes with maturities greater than 10 years | Weighted Average | Senior Notes    
Debt Instrument [Line Items]    
Weighted-average interest rate (as a percent) 5.17%  
v3.25.4
DEBT - Narrative (Details)
£ in Millions
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Feb. 27, 2026
USD ($)
Jun. 30, 2025
USD ($)
renewalPeriod
Jun. 30, 2025
USD ($)
renewalPeriod
Jun. 30, 2024
USD ($)
Mar. 30, 2026
Dec. 31, 2025
USD ($)
Dec. 30, 2026
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
GBP (£)
Dec. 31, 2023
USD ($)
Mar. 31, 2027
Dec. 31, 2026
Sep. 30, 2026
Jun. 30, 2026
Mar. 31, 2026
Mar. 31, 2025
USD ($)
Feb. 28, 2025
USD ($)
Dec. 31, 2024
EUR (€)
Debt Instrument [Line Items]                                      
Cash tender offers to purchase               $ 14,600,000,000                      
Borrowings from debt, net of discount and including premiums               18,306,000,000 $ 1,617,000,000   $ 1,496,000,000                
Gain on extinguishment of debt               2,945,000,000 632,000,000   $ 17,000,000                
Aggregate purchase price                 2,610,000,000                    
Total debt           $ 32,845,000,000   32,845,000,000 39,527,000,000                    
WarnerMedia                                      
Debt Instrument [Line Items]                                      
Debt assumed           192,000,000   192,000,000                      
PSKY Merger Agreement | Subsequent Event                                      
Debt Instrument [Line Items]                                      
Termination fee, reimbursement for obligation to complete exchange offer, maximum $ 1,528,000,000                                    
Separation Agreement, Possible Payment, Cash Per Principal Amount Of Debt, Payment Ratio 0.1                                    
Forecast                                      
Debt Instrument [Line Items]                                      
One time cash payment per principal amount             0.1                        
Maximum aggregate one time cash payment if exchange offer is not complete             $ 1,500,000,000                        
Senior Notes                                      
Debt Instrument [Line Items]                                      
Debt instrument, repurchase amount   $ 17,665,000,000 $ 17,665,000,000 $ 3,399,000,000   59,000,000   59,000,000 965,000,000                    
Aggregate principal amount           2,000,000   2,000,000                      
Gain on extinguishment of debt     2,959,000,000 $ 542,000,000       2,959,000,000                      
Payments for consent solicitations     293,000,000                                
Line of Credit                                      
Debt Instrument [Line Items]                                      
Total debt           0   0 0                    
Line of Credit | Revolving Credit Facility                                      
Debt Instrument [Line Items]                                      
Revolving line of credit, maximum borrowing capacity   $ 4,000,000,000 $ 4,000,000,000                                
Number of renewal periods | renewalPeriod   2 2                                
Term of renewal period (in days)     364 days                                
Debt instrument, covenant, consolidated interest coverage ratio, minimum   3.00 3.00                                
Debt instrument, covenant, adjusted consolidated leverage ratio, maximum   4.50 4.50                                
Line of Credit | Revolver Sublimit for Standby Letters of Credit                                      
Debt Instrument [Line Items]                                      
Revolving line of credit, maximum borrowing capacity   $ 150,000,000 $ 150,000,000                                
Line of Credit | Additional Commitments Upon Satisfaction of Certain Conditions                                      
Debt Instrument [Line Items]                                      
Revolving line of credit, maximum borrowing capacity   1,000,000,000 1,000,000,000                                
Commercial Paper                                      
Debt Instrument [Line Items]                                      
Revolving line of credit, maximum borrowing capacity   2,000,000,000 2,000,000,000                           $ 2,000,000,000 $ 1,000,000,000  
Total debt           $ 0   0 $ 0                    
Bridge Loans Maturing Of Eighteen Months | Term Loan                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans               2,000,000,000                      
Senior Notes Due July 2025 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans               $ 97,000,000                      
Unsecured Senior Term Loan | Unsecured Debt                                      
Debt Instrument [Line Items]                                      
Debt instrument, maturity term           364 days   364 days                      
Proceeds of borrowings               $ 1,500,000,000                      
Unsecured Senior Term Loan | Unsecured Debt | Discovery Global Holdings, Inc                                      
Debt Instrument [Line Items]                                      
Face amount           $ 1,500,000,000   $ 1,500,000,000                      
Debt instrument, maturity term               364 days                      
Bridge Loan Facility | Bridge Loan | Forecast                                      
Debt Instrument [Line Items]                                      
Debt instrument basis spread on variable rate         3.50%   4.00%                        
Fee rate                       1.00% 1.00% 1.00% 0.50% 0.50%      
Bridge Loan Facility | Bridge Loan | Forecast | Subsequent Event                                      
Debt Instrument [Line Items]                                      
Fee rate                       1.00% 1.00% 0.75%          
Bridge Loan Facility | Bridge Loan | Discovery Global Holdings, Inc                                      
Debt Instrument [Line Items]                                      
Borrowings from debt, net of discount and including premiums   $ 17,000,000,000                                  
Senior Notes Due June 2025 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans     $ 487,000,000                                
Senior Notes Due March 2025                                      
Debt Instrument [Line Items]                                      
Redemption of aggregate principal amount               $ 1,500,000,000                      
Senior Notes Due March 2025 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans               $ 2,165,000,000                      
Senior Notes Due 2024, 3.900% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 3.90%                   3.90%
Senior Notes Due 2024, 3.900% | Senior Notes | Scripps Networks Interactive, Inc.                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 3.90%                   3.90%
Senior Notes Due 2055, 4.000% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.00%                   4.00%
Senior Notes Due 2050, 4.650% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.65%                   4.65%
Senior Notes Due 2042, 4.950% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.95%                   4.95%
Senior Notes Due 2043, 4.875% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.875%                   4.875%
Senior Notes Due 2047, 5.200% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 5.20%                   5.20%
Senior Notes Due 2049, 5.300% | Senior Notes | Discovery Communications, LLC                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 5.30%                   5.30%
Senior Notes Due 2044, 4.650% | Senior Notes | Legacy WarnerMedia Business                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.65%                   4.65%
Senior Notes Due 2045, 4.850% | Senior Notes | Legacy WarnerMedia Business                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.85%                   4.85%
Senior Notes Due 2042, 4.900% | Senior Notes | Legacy WarnerMedia Business                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 4.90%                   4.90%
Senior Notes Due 2043, 5.350% | Senior Notes | Legacy WarnerMedia Business                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 5.35%                   5.35%
Senior Notes Due 2042, 5.050% | Senior Notes | WarnerMedia Holdings, Inc.                                      
Debt Instrument [Line Items]                                      
Weighted-average interest rate (as a percent)                 5.05%                   5.05%
Senior Notes Due November 2024 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans                 $ 296,000,000                    
Senior Notes Due September 2024 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans                 529,000,000 £ 400                  
Senior Notes Due June 2024 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans                 48,000,000                    
Senior Notes Due February And March 2024 | Senior Notes                                      
Debt Instrument [Line Items]                                      
Principal repayments of term loans                 $ 726,000,000                    
Senior Notes Due 2030, 4.302% | Senior Notes                                      
Debt Instrument [Line Items]                                      
Face amount | €                                     € 650,000,000
Weighted-average interest rate (as a percent)                 4.302%                   4.302%
Senior Notes Due 2033, 4.693% | Senior Notes                                      
Debt Instrument [Line Items]                                      
Face amount | €                                     € 850,000,000
Weighted-average interest rate (as a percent)                 4.693%                   4.693%
v3.25.4
DEBT - Schedule of Estimated Debt Payments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Long-term debt repayments  
2026 $ 139
2027 16,483
2028 1,409
2029 2,274
2030 1,354
Thereafter 11,186
Interest payments  
2026 1,947
2027 1,353
2028 723
2029 648
2030 584
Thereafter $ 5,454
v3.25.4
LEASES - Schedule of Leases Reflected in Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
Operating lease right-of-use assets $ 2,749 $ 2,373
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other noncurrent assets Other noncurrent assets
Operating lease liabilities (current) $ 285 $ 307
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued liabilities Accrued liabilities
Operating lease liabilities (noncurrent) $ 3,226 $ 2,731
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other noncurrent liabilities Other noncurrent liabilities
Total operating lease liabilities $ 3,511 $ 3,038
Finance Leases    
Finance lease right-of-use assets $ 635 $ 432
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net Property and equipment, net
Finance lease liabilities (current) $ 149 $ 107
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Finance lease liabilities (noncurrent) $ 534 $ 356
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other noncurrent liabilities Other noncurrent liabilities
Total finance lease liabilities $ 683 $ 463
Weighted average remaining lease term (in years):    
Operating leases 11 years 11 years
Finance leases 6 years 6 years
Weighted average discount rate    
Operating leases 4.97% 4.43%
Finance leases 5.46% 5.11%
v3.25.4
LEASES - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]      
Lessee, operating lease, renewal term (in years) 20 years    
Sublease income $ 55 $ 0 $ 0
Facility Consolidation Activities      
Lessee, Lease, Description [Line Items]      
ROU asset impairment charges $ 112 $ 411  
Maximum      
Lessee, Lease, Description [Line Items]      
Lessee, lease, remaining term of contract (in years) 27 years    
v3.25.4
LEASES - Schedule of Components of Lease Cost (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 407 $ 441 $ 540
Finance lease cost:      
Amortization of right-of-use assets 150 111 85
Interest on lease liabilities 32 19 8
Total finance lease cost 182 130 93
Variable fees and other 29 44 74
Total lease cost $ 618 $ 615 $ 707
v3.25.4
LEASES - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ (455) $ (476) $ (501)
Operating cash flows from finance leases (32) (19) (19)
Financing cash flows from finance leases (139) (95) (74)
Right-of-use assets obtained in exchange for lease obligations:      
Operating leases 726 78 364
Finance leases $ 341 $ 300 $ 95
v3.25.4
LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
2026 $ 441  
2027 424  
2028 419  
2029 416  
2030 407  
Thereafter 2,594  
Total lease payments 4,701  
Less: Imputed interest (1,190)  
Total operating lease liabilities 3,511 $ 3,038
Finance Leases    
2026 178  
2027 157  
2028 123  
2029 81  
2030 45  
Thereafter 224  
Total lease payments 808  
Less: Imputed interest (125)  
Total $ 683 $ 463
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details)
€ in Millions, £ in Millions
1 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2024
GBP (£)
Dec. 31, 2023
USD ($)
Jun. 30, 2025
EUR (€)
Dec. 31, 2024
EUR (€)
Derivative [Line Items]                
Amounts eligible to be offset under master netting agreements | $   $ 0 $ 0          
Derivative debt amount, de-designated | £         £ 255      
Gain (loss) on derivative | $   93,000,000 16,000,000     $ 151,000,000    
Cross-currency swaps                
Derivative [Line Items]                
Additional amount designated as a net investment hedge       € 900        
Derivative amount subsequently settled       300        
Amount de-designated of fixed-to-fixed cross currency swaps designated as net investment hedge       € 200        
Cross-currency swaps | Senior Notes                
Derivative [Line Items]                
Amount settled, designated as net investment hedge | £         £ 145      
Cross-currency swaps | Long-Term Debt                
Derivative [Line Items]                
Hedged instrument               € 1,500
Forward Contracts                
Derivative [Line Items]                
Gain (loss) on derivative | $ $ 9,000,000              
Forward Contracts | Euro Denominated Borrowings                
Derivative [Line Items]                
Notional             € 450  
Notional value             € 450  
Credit contracts                
Derivative [Line Items]                
Notional | $   2,000,000,000            
Designated as Hedging Instrument | Cross-currency swaps                
Derivative [Line Items]                
Notional               € 225
Not Designated as Hedging Instrument | Interest rate swaps                
Derivative [Line Items]                
Notional | $   2,500,000,000 3,000,000,000.0          
Not Designated as Hedging Instrument | Credit contracts                
Derivative [Line Items]                
Notional | $   $ 2,000,000,000 $ 0          
Cash Flow Hedging | Designated as Hedging Instrument                
Derivative [Line Items]                
Maximum length of time hedged in cash flow hedge (in years)   30 years            
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Company's Derivative Financial Instruments (Details)
€ in Millions, $ in Millions
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets $ 81   $ 73  
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets Prepaid expenses and other current assets Prepaid expenses and other current assets
Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets $ 60   $ 21  
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other noncurrent assets Other noncurrent assets Other noncurrent assets Other noncurrent assets
Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability $ 50   $ 55  
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities Accrued liabilities Accrued liabilities
Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability $ 149   $ 155  
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other noncurrent liabilities Other noncurrent liabilities Other noncurrent liabilities Other noncurrent liabilities
Credit contracts        
Derivatives, Fair Value [Line Items]        
Notional $ 2,000      
Not Designated as Hedging Instrument | Total return swaps        
Derivatives, Fair Value [Line Items]        
Notional 501   $ 454  
Not Designated as Hedging Instrument | Total return swaps | Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 0   0  
Not Designated as Hedging Instrument | Total return swaps | Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 0   0  
Not Designated as Hedging Instrument | Total return swaps | Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 0   16  
Not Designated as Hedging Instrument | Total return swaps | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 0   0  
Not Designated as Hedging Instrument | Foreign exchange derivatives        
Derivatives, Fair Value [Line Items]        
Notional 126   951  
Not Designated as Hedging Instrument | Foreign exchange derivatives | Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 9   18  
Not Designated as Hedging Instrument | Foreign exchange derivatives | Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 0   7  
Not Designated as Hedging Instrument | Foreign exchange derivatives | Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 15   14  
Not Designated as Hedging Instrument | Foreign exchange derivatives | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 79   122  
Not Designated as Hedging Instrument | Cross-currency swaps        
Derivatives, Fair Value [Line Items]        
Notional 225   210  
Not Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 4   2  
Not Designated as Hedging Instrument | Cross-currency swaps | Other non- current 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 0   0  
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 11   1  
Not Designated as Hedging Instrument | Credit contracts        
Derivatives, Fair Value [Line Items]        
Notional 2,000   0  
Not Designated as Hedging Instrument | Credit contracts | Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 8   0  
Not Designated as Hedging Instrument | Credit contracts | Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 0   0  
Not Designated as Hedging Instrument | Credit contracts | Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 0   0  
Not Designated as Hedging Instrument | Credit contracts | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 0   0  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives        
Derivatives, Fair Value [Line Items]        
Notional 2,235   1,608  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Prepaid expenses and other current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 53   47  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 60   14  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 35   25  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 38   28  
Net Investment Hedges | Designated as Hedging Instrument | Cross-currency swaps        
Derivatives, Fair Value [Line Items]        
Notional 452   421  
Net Investment Hedges | Designated as Hedging Instrument | Cross-currency swaps | Euro-Denominated Notes        
Derivatives, Fair Value [Line Items]        
Notional 919 € 781 1,558 € 1,500
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 7   6  
Net Investment Hedges | Designated as Hedging Instrument | Cross-currency swaps | Other non- current assets        
Derivatives, Fair Value [Line Items]        
Derivative assets, fair value 0   0  
Net Investment Hedges | Designated as Hedging Instrument | Cross-currency swaps | Accounts payable and accrued liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value 0   0  
Net Investment Hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liability, fair value $ 21   $ 4  
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Pre-tax Impact of Derivatives Designated as Cash Flow Hedges (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) recognized in accumulated other comprehensive loss $ 16 $ 32 $ 16
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) recognized in accumulated other comprehensive loss 23 37 23
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Distribution Revenue      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss (27) 22 (5)
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Advertising Revenue      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss 0 2 1
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Cost of Revenues      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss 6 7 3
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange derivatives | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss 0 0 18
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss 14 20 0
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Interest Expense, Net      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss (3) (5) (1)
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate - gain on extinguishment of debt | Gain (Loss) on Extinguishment of Debt      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) reclassified into income from accumulated other comprehensive loss $ (1) $ (4) $ 1
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Pre-tax Impact of Derivatives Designated as Net Investment Hedges (Details) - Designated as Hedging Instrument - Net Investment Hedges - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]      
Amount of gain (loss) recognized in AOCI $ (228) $ 143 $ 35
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 11 4 24
Euro denominated notes (foreign denominated debt)      
Derivative [Line Items]      
Amount of gain (loss) recognized in AOCI (209) 78 3
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 0 0 0
Sterling denominated notes (foreign denominated debt)      
Derivative [Line Items]      
Amount of gain (loss) recognized in AOCI 0 (5) (11)
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 0 0 0
Cross-currency swaps      
Derivative [Line Items]      
Amount of gain (loss) recognized in AOCI (19) 70 43
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) $ 11 $ 4 $ 24
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest expense, net Interest expense, net Interest expense, net
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Pre-tax Gains (Losses) on Derivatives Not Designated as Hedges Recognized (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]      
Total $ 21 $ (9) $ 28
Not Designated as Hedging Instrument      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 57 21 137
Not Designated as Hedging Instrument | Total in selling, general and administrative expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 50 50 109
Not Designated as Hedging Instrument | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 7 (29) 28
Not Designated as Hedging Instrument | Interest rate swaps | Total in selling, general and administrative expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 0 19 63
Not Designated as Hedging Instrument | Interest rate swaps | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 0 (3) 20
Not Designated as Hedging Instrument | Total return swaps | Total in selling, general and administrative expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 50 31 46
Not Designated as Hedging Instrument | Cross-currency swaps | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Total (8) 1 1
Not Designated as Hedging Instrument | Foreign exchange derivatives | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Total 32 (27) 7
Not Designated as Hedging Instrument | Credit contracts | Total in other income (expense), net      
Derivative Instruments, Gain (Loss) [Line Items]      
Total $ (17) $ 0 $ 0
v3.25.4
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets $ 494 $ 476
Liabilities 748 712
Cash and cash equivalents    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Time deposits 107 95
Equity securities 61 46
Prepaid expenses and other current assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Equity securities 14 16
Company-owned life insurance contracts 2 1
Other non- current assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Equity securities 205 216
Company-owned life insurance contracts 105 102
Accounts payable and accrued liabilities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Deferred compensation plan 66 62
Other noncurrent liabilities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Deferred compensation plan 682 650
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets 280 278
Liabilities 748 712
Level 1 | Cash and cash equivalents    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Time deposits 0 0
Equity securities 61 46
Level 1 | Prepaid expenses and other current assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Equity securities 14 16
Company-owned life insurance contracts 0 0
Level 1 | Other non- current assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Equity securities 205 216
Company-owned life insurance contracts 0 0
Level 1 | Accounts payable and accrued liabilities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Deferred compensation plan 66 62
Level 1 | Other noncurrent liabilities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Deferred compensation plan 682 650
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets 214 198
Liabilities 0 0
Level 2 | Cash and cash equivalents    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Time deposits 107 95
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 2 1
Level 2 | Other non- current assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Equity securities 0 0
Company-owned life insurance contracts 105 102
Level 2 | Accounts payable and 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 non- 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 | Accounts payable and 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
v3.25.4
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value Disclosures [Abstract]    
Senior notes, fair value $ 15,205 $ 34,876
v3.25.4
SHARE-BASED COMPENSATION - Incentive Plans (Narrative) (Details)
shares in Millions
Dec. 31, 2025
shares
Series A and Series C common stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares available for grant (in shares) 136
v3.25.4
SHARE-BASED COMPENSATION - Schedule of Components of Share-Based Compensation Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 769 $ 557 $ 500
Tax benefit recognized 115 96 97
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 239 89 65
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 457 415 375
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 73 $ 53 $ 60
v3.25.4
SHARE-BASED COMPENSATION - Share-Based Compensation Expense (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]    
Liability-classified share-based compensation award liability $ 190 $ 66
Deferred compensation share-based arrangements, liability, current $ 108 $ 27
v3.25.4
SHARE-BASED COMPENSATION - Schedule of PRSU Activity, RSU Activity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
PRSUs    
Awards    
Beginning balance (in shares) 9.8  
Granted (in shares) 4.8  
Performance adjustments (in shares) 2.6  
Converted (in shares) (4.3)  
Forfeited (in shares) (0.1)  
Ending balance (in shares) 12.8 9.8
Vested and expected to vest (in shares) 12.8  
Convertible (in shares) 2.5  
Weighted- Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 11.20  
Granted (in dollars per share) 11.79  
Performance adjustments (in dollars per share) 8.64  
Converted (in dollars per share) 9.57  
Forfeited (in dollars per share) 10.06  
Ending balance (in dollars per share) 11.87 $ 11.20
Vested and expected to vest (in dollars per share) 11.87  
Convertible (in dollars per share) $ 11.05  
Weighted-Average Remaining Contractual Term (years)    
Outstanding balances 1 year 1 year 2 months 12 days
Vested and expected to vest in ending balance 1 year  
Convertible 0 years  
Aggregate Fair Value    
Outstanding balances $ 370 $ 104
Converted 48  
Vested and expected to vest in ending balance 370  
Convertible in ending balance $ 72  
RSUs    
Awards    
Beginning balance (in shares) 78.8  
Granted (in shares) 43.0  
Vested (in shares) (31.5)  
Forfeited (in shares) (6.1)  
Ending balance (in shares) 84.2 78.8
Vested and expected to vest (in shares) 84.2  
Weighted- Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 11.41  
Granted (in dollars per share) 11.13  
Vested (in dollars per share) 12.69  
Forfeited (in dollars per share) 10.42  
Ending balance (in dollars per share) 10.81 $ 11.41
Vested and expected to vest (in dollars per share) $ 10.81  
Weighted-Average Remaining Contractual Term (years)    
Outstanding balances 1 year 2 months 12 days 1 year 7 months 6 days
Vested and expected to vest in ending balance 1 year 2 months 12 days  
Aggregate Fair Value    
Outstanding balances $ 2,432 $ 835
Vested 388  
Vested and expected to vest in ending balance $ 2,432  
v3.25.4
SHARE-BASED COMPENSATION - PRSUs (Narrative) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 73
v3.25.4
SHARE-BASED COMPENSATION - RSUs (Narrative) (Details) - RSUs
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 457
Net Cash Settlement  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 11
Weighted-average amortization period (in years) 1 year
Stock Settlement  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted-average amortization period (in years) 1 year 2 months 12 days
v3.25.4
SHARE-BASED COMPENSATION - Schedule of Stock Option Activity (Details) - Stock options - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock Options      
Outstanding, beginning balance (in shares) 36.0    
Granted (in shares) 25.1    
Exercised (in shares) (2.1)    
Forfeited (in shares) (12.9)    
Outstanding, ending balance (in shares) 46.1 36.0  
Vested and expected to vest (in shares) 46.1    
Exercisable (in shares) 8.5    
Weighted- Average Exercise Price      
Outstanding, beginning balance (in dollars per share) $ 30.90    
Granted (in dollars per share) 10.31    
Exercised (in dollars per share) 13.96    
Forfeited (in dollars per share) 30.02    
Outstanding, ending balance (in dollars per share) 20.68 $ 30.90  
Vested and expected to vest (in dollars per share) 20.68    
Exercisable (in dollars per share) $ 33.92    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]      
Weighted average remaining contractual term, outstanding 4 years 9 months 18 days 2 years 8 months 12 days  
Weighted average remaining contractual term, vested and expected to vest 4 years 9 months 18 days    
Weighted average remaining contractual term, exercisable 2 years 7 months 6 days    
Aggregate intrinsic value, outstanding balance $ 551.0 $ 8.0  
Exercises in period, intrinsic value 12.0 $ 0.0 $ 0.0
Aggregate Intrinsic Value, Vested and expected to vest 551.0    
Aggregate intrinsic value, exercisable $ 25.0    
v3.25.4
SHARE-BASED COMPENSATION - Stock Options (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Proceeds from stock options exercised $ 30 $ 0 $ 0
Grants in period, weighted average grant date fair value (in dollars per share) $ 5.29 $ 4.30 $ 7.43
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation cost $ 139    
Weighted-average amortization period (in years) 2 years 4 months 24 days    
Exercises in period, intrinsic value $ 12 $ 0 $ 0
v3.25.4
SHARE-BASED COMPENSATION - Schedule of Fair Value of Stock Options Estimated Using the Black-Scholes Option-Pricing Model or Monte Carlo Simulation (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Black-Scholes option-pricing model      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 3.97% 4.19% 4.35%
Expected term (years) 5 years 4 years 8 months 12 days 4 years 6 months
Expected volatility 54.49% 54.37% 54.80%
Monte Carlo simulation      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 4.11%    
Expected term (years) 5 years    
Expected volatility 55.34%    
v3.25.4
INCOME TAXES - Schedule of Domestic and Foreign Components of Loss Before Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 744 $ (11,843) $ (4,702)
Foreign 895 455 839
Income (loss) before income taxes $ 1,639 $ (11,388) $ (3,863)
v3.25.4
INCOME TAXES - Schedule of Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 1,025 $ 983 $ 753
State and local 131 321 57
Foreign 444 522 750
Current income tax expense 1,600 1,826 1,560
Deferred:      
Federal (601) (1,488) (1,845)
State and local (113) (276) (548)
Foreign 4 32 49
Deferred income tax benefit (710) (1,732) (2,344)
Income tax expense (benefit) $ 890 $ 94 $ (784)
v3.25.4
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Pre-tax income at U.S. federal statutory income tax rate $ 344 $ (2,391) $ (811)
State and local income taxes, net of federal tax benefit (14) 30 (388)
Effect of foreign operations 25 331 342
Tax incentives (102)    
Other, net   90 40
Foreign branch income 62    
Other (19)    
Foreign tax credits (270)    
Research and development credit (46)    
Changes in valuation allowances 242    
Compensation 89    
Indemnification costs 47    
Transaction costs 42    
Other 16    
Non-deductible goodwill impairment   1,881 0
Change in unrecognized tax benefits 84 153 33
Income tax expense (benefit) $ 890 $ 94 $ (784)
Percent      
Pre-tax income at U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal tax benefit (1.00%) 0.00% 10.00%
Effect of foreign operations 1.00% (3.00%) (9.00%)
Tax incentives (6.00%)    
Other, net   (1.00%) (1.00%)
Foreign branch income 4.00%    
Other (1.00%)    
Foreign tax credits (16.00%)    
Research and development credit (3.00%)    
Changes in valuation allowances 15.00%    
Compensation 5.00%    
Indemnification costs 3.00%    
Transaction costs 2.00%    
Other 1.00%    
Non-deductible goodwill impairment   (17.00%) 0.00%
Change in unrecognized tax benefits 5.00% (1.00%) (1.00%)
Income tax expense (benefit) 54.00% (1.00%) 20.00%
U.K.      
Amount      
Other, net $ 16    
Percent      
Other, net 1.00%    
Canada      
Amount      
Withholding taxes $ 61    
Percent      
Withholding taxes 4.00%    
Other foreign jurisdictions      
Amount      
Other, net $ 75    
Withholding taxes $ 256    
Percent      
Other, net 5.00%    
Withholding taxes 15.00%    
U.S.      
Amount      
Other, net $ (18)    
Percent      
Other, net (1.00%)    
Brazil      
Percent      
Withholding taxes 2.00%    
China      
Percent      
Withholding taxes 2.00%    
Mexico      
Percent      
Withholding taxes 2.00%    
Spain      
Percent      
Withholding taxes (1.00%)    
Italy      
Percent      
Withholding taxes 1.00%    
Chile      
Percent      
Withholding taxes 1.00%    
Australia      
Percent      
Withholding taxes 1.00%    
Argentina      
Percent      
Withholding taxes 1.00%    
v3.25.4
INCOME TAXES - Narrative (Details) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2024
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]              
Income tax expense (benefit)         $ 890,000,000 $ 94,000,000 $ (784,000,000)
Effective income tax rate (as a percent)         54.00% (1.00%) 20.00%
Gain on extinguishment of debt         $ 2,945,000,000 $ 632,000,000 $ 17,000,000
Impairment of goodwill       $ 0   9,147,000,000 0
Valuation allowance against loss carry-forwards       (2,043,000,000) (2,398,000,000) (2,043,000,000)  
Unrecognized tax benefits that would impact effective tax rate         2,156,000,000    
Accrued interest and penalties on unrecognized tax benefits       $ 732,000,000 856,000,000 732,000,000 $ 571,000,000
Global Linear Networks              
Debt Instrument [Line Items]              
Impairment of goodwill     $ 9,147,000,000     $ 9,147,000,000  
Senior Notes              
Debt Instrument [Line Items]              
Gain on extinguishment of debt $ 2,959,000,000 $ 542,000,000     $ 2,959,000,000    
v3.25.4
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred income tax assets:    
Tax attribute carry-forward $ 2,894 $ 2,661
Lease liabilities 937 793
Accrued liabilities and other 1,144 1,180
Total deferred income tax assets 4,975 4,634
Valuation allowance (2,398) (2,043)
Net deferred income tax assets 2,577 2,591
Deferred income tax liabilities:    
Accounts receivable (248) (267)
Intangible assets (5,889) (6,916)
Right-of-use assets (756) (636)
Property and equipment (567) (273)
Content rights (272) (342)
Equity method investments and other outside basis differences (85) (61)
Other (521) (468)
Total deferred income tax liabilities (8,338) (8,963)
Net deferred income tax liabilities $ (5,761) $ (6,372)
v3.25.4
INCOME TAXES - Schedule of Net Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Noncurrent deferred income tax assets (included within other noncurrent assets) $ 622 $ 613
Deferred income tax liabilities (6,383) (6,985)
Net deferred income tax liabilities $ (5,761) $ (6,372)
v3.25.4
INCOME TAXES - Schedule of Loss Carry-Forwards (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating Loss Carryforwards [Line Items]    
Valuation allowance against loss carry-forwards $ (2,398) $ (2,043)
Federal    
Operating Loss Carryforwards [Line Items]    
Loss carry-forwards 56  
Deferred tax asset related to loss carry-forwards 12  
Valuation allowance against loss carry-forwards (6)  
State    
Operating Loss Carryforwards [Line Items]    
Loss carry-forwards 1,313  
Deferred tax asset related to loss carry-forwards 62  
Valuation allowance against loss carry-forwards (56)  
Foreign    
Operating Loss Carryforwards [Line Items]    
Loss carry-forwards 7,903  
Deferred tax asset related to loss carry-forwards 1,923  
Valuation allowance against loss carry-forwards $ (1,581)  
v3.25.4
INCOME TAXES - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 2,371 $ 2,147 $ 1,929
Additions based on tax positions related to the current year 83 148 147
Additions for tax positions of prior years 123 250 195
Additions for tax positions acquired in business combinations 0 0 247
Reductions for tax positions of prior years (101) (76) (275)
Settlements (37) (30) (46)
Reductions due to lapse of statutes of limitations (123) (51) (62)
Increase due to foreign currency exchange rates 40   12
Decrease due to foreign currency exchange rates   (17)  
Ending balance $ 2,356 $ 2,371 $ 2,147
v3.25.4
RETIREMENT SAVINGS PLANS - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Company contributions $ 206 $ 204 $ 210
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Contributions to Multiemployer Pension and Health and Welfare Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Total contributions $ 328 $ 363 $ 281
Pension benefits      
Defined Benefit Plan Disclosure [Line Items]      
Total contributions 102 115 128
Health and welfare benefits      
Defined Benefit Plan Disclosure [Line Items]      
Total contributions $ 226 $ 248 $ 153
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Assumptions Determined (Details)
12 Months Ended
Dec. 31, 2025
Minimum  
Defined Benefit Plan, Plan Assets, Category [Line Items]  
Long-term rate of return on plan assets (in years) 10 years
Maximum  
Defined Benefit Plan, Plan Assets, Category [Line Items]  
Long-term rate of return on plan assets (in years) 15 years
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Plan Assets and Obligations of the Pension Plans Based Upon a Valuation and Weighted Average Assumptions Used to Determine Benefit Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]    
Accumulated benefit obligation $ 716 $ 683
Change in projected benefit obligation:    
Projected benefit obligation at beginning of year 683 753
Service cost 2 2
Interest cost 35 $ 33
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag   Interest cost
Benefits paid (40) $ (45)
Actuarial losses (gains) 18 (48)
Curtailments (1) 0
Settlement charges (14) (2)
Effects of foreign currency exchange rate changes and other 33 (10)
Projected benefit obligation at end of year 716 683
Plan assets:    
Fair value at beginning of year 471 540
Actual return on plan assets 10 (46)
Company contributions 35 32
Benefits paid (40) (45)
Settlement charges (14) (3)
Effects of foreign currency exchange rate changes and other 31 (7)
Fair value at end of year 493 471
Under funded status (223) (212)
Amounts recognized as assets and liabilities on the consolidated balance sheets:    
Other noncurrent assets 34 65
Accrued liabilities (27) (29)
Other noncurrent liabilities (230) (248)
Total (223) (212)
Amounts recognized in accumulated other comprehensive loss consist of:    
Prior service cost 3 0
Net loss 149 104
Total $ 152 $ 104
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]    
Discount rate 5.06% 5.20%
Rate of compensation increases 3.30% 3.16%
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Weighted Average Pension Plans Asset Allocations by Asset Category (Details)
Dec. 31, 2025
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 100.00%
Actual 100.00%
Debt securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 5.00%
Actual 4.00%
Equity securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 10.00%
Actual 5.00%
Fixed income securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 72.00%
Actual 80.00%
Multi-asset credit fund  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 5.00%
Actual 6.00%
Real assets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 4.00%
Actual 3.00%
Hedge funds  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 2.00%
Actual 0.00%
Cash  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Target 2.00%
Actual 2.00%
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Allocation of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets $ 493 $ 471 $ 540
Fair Value Measured at Net Asset Value Per Share      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets   60  
Total plan assets measured at fair value | Level 1, 2, and 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 480 601  
Total plan assets measured at fair value | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 54 72  
Total plan assets measured at fair value | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 32 463  
Total plan assets measured at fair value | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 394 66  
Debt securities      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 22 19  
Debt securities | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 22 19  
Debt securities | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Debt securities | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Equity securities      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 24 55  
Equity securities | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 24 25  
Equity securities | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 30  
Equity securities | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Fixed income securities      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 394 444  
Fixed income securities | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 22  
Fixed income securities | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 356  
Fixed income securities | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 394 66  
Multi-asset credit fund      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 32 77  
Multi-asset credit fund | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Multi-asset credit fund | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 32 77  
Multi-asset credit fund | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Cash      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 8 6  
Cash | Level 1      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 8 6  
Cash | Level 2      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets 0 0  
Cash | Level 3      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets $ 0 $ 0  
Real assets      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] Fair Value Measured at Net Asset Value Per Share Fair Value Measured at Net Asset Value Per Share  
Total plan assets $ 13 $ 16  
Hedge funds      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration]   Fair Value Measured at Net Asset Value Per Share  
Total plan assets   $ 44  
Derivatives      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total plan assets   $ (190)  
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Changes in the Fair Value of the Level 3 Pension Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]    
Fair value at beginning of year $ 471 $ 540
Fair value at end of year 493 471
Fixed Income Funds | Level 3    
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]    
Fair value at beginning of year 66 76
Unrealized gains (losses) 8 (5)
Purchases, issuances, sales and settlements, net 315 (5)
Effects of foreign currency exchange rate changes and other 5  
Fair value at end of year $ 394 $ 66
v3.25.4
RETIREMENT SAVINGS PLANS - Schedule of Estimated Future Benefit Payments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Retirement Benefits [Abstract]  
2026 $ 51
2027 45
2028 48
2029 48
2030 47
Thereafter $ 235
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Accumulated depreciation $ (4,826) $ (4,035)
Property and equipment, after accumulated depreciation 5,866 5,486
Property and equipment, net 6,685 6,087
Property, Plant, And Equipment Excluding Construction In Progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 10,692 9,521
Equipment, furniture, fixtures and other    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 3,071 2,613
Capitalized software costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 3,583 3,076
Land, buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 4,038 3,832
Construction in Progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost $ 819 $ 601
Minimum | Equipment, furniture, fixtures and other    
Property, Plant and Equipment [Line Items]    
Useful Lives 3 years  
Minimum | Capitalized software costs    
Property, Plant and Equipment [Line Items]    
Useful Lives 1 year  
Minimum | Land, buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives 15 years  
Maximum | Equipment, furniture, fixtures and other    
Property, Plant and Equipment [Line Items]    
Useful Lives 7 years  
Maximum | Capitalized software costs    
Property, Plant and Equipment [Line Items]    
Useful Lives 5 years  
Maximum | Land, buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives 30 years  
v3.25.4
SUPPLEMENTAL DISCLOSURES - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Jan. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]        
Depreciation   $ 1,079 $ 1,102 $ 1,097
Supplier finance program, termination timing, period (in days)   30 days    
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration]   Accrued liabilities Accrued liabilities  
Payments for legal settlements $ 55      
FuboTV Inc. And FuboTV Media Inc. | The Walt Disney Company, Fox Corporation, And Warner Brothers Discovery        
Property, Plant and Equipment [Line Items]        
Payments for legal settlements $ 220      
Capitalized software costs        
Property, Plant and Equipment [Line Items]        
Capitalized software costs, net   $ 1,352 $ 1,246  
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Production receivables $ 1,072 $ 979
Content rights and prepaid license fees 322 784
Other current assets 1,952 2,056
Total prepaid expenses and other current assets $ 3,346 $ 3,819
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued participation and residuals $ 2,796 $ 2,953
Accrued production and content rights payable 1,675 1,758
Accrued payroll and related benefits 1,588 1,495
Accrued withholding taxes 668 644
Other accrued liabilities 2,899 3,588
Total accrued liabilities $ 9,626 $ 10,438
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Other Noncurrent Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Operating lease liabilities $ 3,226 $ 2,731
Other noncurrent liabilities 8,382 7,339
Other noncurrent liabilities $ 11,608 $ 10,070
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Other Income (Expense), Net (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
May 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Foreign currency losses, net   $ 8 $ (323) $ (173)
(Losses) gains on derivative instruments, net   21 (9) 28
Change in the value of investments with readily determinable fair value   10 (1) 37
Change in the value of equity investments without readily determinable fair value   (4) (11) (73)
Gain on sale of equity method investments $ 203 0 194 0
Interest income   206 210 179
Indemnification receivable accrual   (171) 77 (53)
Other income, net   (5) 13 26
Total other income (expense), net   $ 65 $ 150 $ (29)
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for taxes, net      
Federal taxes $ 1,287    
State taxes 76    
Foreign taxes 563    
Cash paid for taxes, net 1,926 $ 1,113 $ 1,440
Cash paid for interest 2,295 1,996 2,237
Non-cash investing and financing activities:      
Accrued purchases of property and equipment 38 36 41
Assets acquired under finance lease and other arrangements 320 390 235
Non-cash settlement of PRSU awards 115 59 35
Ranch and Burbank Studios Lots      
Non-cash investing and financing activities:      
Non-cash consideration related to the sale and purchase of the Ranch and Burbank Studios Lots 0 0 350
JCOM Co., Ltd. ("JCOM")      
Non-cash investing and financing activities:      
Non-cash consideration related to the transaction agreements with JCOM $ 0 $ 0 $ 70
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash, cash equivalents, and restricted cash:        
Cash and cash equivalents $ 4,566 $ 5,312    
Restricted cash - other current assets 4 104    
Total cash, cash equivalents, and restricted cash $ 4,570 $ 5,416 $ 4,319 $ 3,930
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Supplier Finance Program (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Supplier Finance Program, Obligation [Roll Forward]    
Obligations outstanding at the beginning of the year $ 307 $ 338
Invoices confirmed during the year 678 949
Invoices paid during the year (726) (980)
Foreign currency translation and other adjustments 1 0
Obligations outstanding at the end of the year $ 260 $ 307
v3.25.4
SUPPLEMENTAL DISCLOSURES - Schedule of Changes in the Components of Accumulated Other Comprehensive Loss, Net of Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance $ 34,829 $ 46,307 $ 48,349
Other comprehensive income (loss) 660 (329) 782
Ending balance 37,147 34,829 46,307
Accumulated Other Comprehensive Loss      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (1,067) (741) (1,523)
Other comprehensive income (loss) before reclassifications 650 (340) 794
Reclassifications from accumulated other comprehensive loss to net income 10 14 (12)
Other comprehensive income (loss) 660 (326) 782
Ending balance (407) (1,067) (741)
Currency Translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (1,008) (699) (1,498)
Other comprehensive income (loss) before reclassifications 664 (358) 799
Reclassifications from accumulated other comprehensive loss to net income 2 49 0
Other comprehensive income (loss) 666 (309) 799
Ending balance (342) (1,008) (699)
Derivative Adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance 15 18 14
Other comprehensive income (loss) before reclassifications 16 32 16
Reclassifications from accumulated other comprehensive loss to net income 8 (35) (12)
Other comprehensive income (loss) 24 (3) 4
Ending balance 39 15 18
Pension Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax      
Beginning balance (74) (60) (39)
Other comprehensive income (loss) before reclassifications (30) (14) (21)
Reclassifications from accumulated other comprehensive loss to net income 0 0 0
Other comprehensive income (loss) (30) (14) (21)
Ending balance $ (104) $ (74) $ (60)
v3.25.4
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Redeemable Noncontrolling Interest [Line Items]        
Redeemable noncontrolling interests $ 19 $ 109 $ 165 $ 318
Discovery Family        
Redeemable Noncontrolling Interest [Line Items]        
Redeemable noncontrolling interests 0 86    
Other        
Redeemable Noncontrolling Interest [Line Items]        
Redeemable noncontrolling interests $ 19 $ 23    
v3.25.4
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of Changes in Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Increase (Decrease) in Temporary Equity      
Beginning balance $ 109 $ 165 $ 318
Cash distributions to redeemable noncontrolling interests (12) (35) (30)
Reclassification of redeemable noncontrolling interest to noncontrolling interest (74) 0 (22)
Redemption of redeemable noncontrolling interest 0 0 (111)
Comprehensive income adjustments:      
Net (loss) income attributable to redeemable noncontrolling interests (2) (42) 9
Currency translation on redemption values 0 0 (3)
Retained earnings adjustments:      
Adjustments of carrying value to redemption value (redemption value does not equal fair value) (1) 18 2
Adjustments of carrying value to redemption value (redemption value equals fair value) (1) 3 2
Ending balance $ 19 $ 109 $ 165
v3.25.4
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Aug. 31, 2023
Jul. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Discovery Japan, Inc. ("JVCo")          
Redeemable Noncontrolling Interest [Line Items]          
Ownership   51.00% 80.00%    
JCOM Co., Ltd. ("JCOM") | Discovery Japan, Inc. ("JVCo")          
Redeemable Noncontrolling Interest [Line Items]          
Ownership   49.00% 20.00%    
MotorTrend Group, LLC Joint Venture          
Redeemable Noncontrolling Interest [Line Items]          
Percentage of voting interests acquired (as a percent) 32.50%        
Total consideration paid $ 49        
Hasbro Inc. | Discovery Family          
Redeemable Noncontrolling Interest [Line Items]          
Ownership percentage by noncontrolling owners (as a percent)         40.00%
MotorTrend Group, LLC Joint Venture | GoldenTree Asset Management, L.P.          
Redeemable Noncontrolling Interest [Line Items]          
Ownership percentage by noncontrolling owners (as a percent)       32.50%  
v3.25.4
NONCONTROLLING INTEREST (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Noncontrolling Interest [Line Items]      
Proceeds for noncontrolling interest in joint venture $ 633 $ 0 $ 0
Cutting Edge Group      
Noncontrolling Interest [Line Items]      
Percentage of assets contributed 70.00%    
Proceeds for noncontrolling interest in joint venture $ 601    
Economic interest in the venture 10.00%    
The Tribune Company | The Food Network and Cooking Channel      
Noncontrolling Interest [Line Items]      
Voting interests percentage by parent (as a percent) 80.00%    
Ownership percentage by parent (as a percent) 68.70%    
v3.25.4
RELATED PARTY TRANSACTIONS - Schedule of Transactions with Related Parties (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Revenue and service charges $ 37,296 $ 39,321 $ 41,321
Expenses 36,558 49,353 42,869
Distributions to noncontrolling interests and redeemable noncontrolling interests 198 193 301
Related Party      
Related Party Transaction [Line Items]      
Revenue and service charges 773 1,404 2,790
Expenses 267 268 357
Distributions to noncontrolling interests and redeemable noncontrolling interests $ 198 $ 193 $ 301
v3.25.4
RELATED PARTY TRANSACTIONS - Schedule of Receivables and Payables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Receivables $ 5,294 $ 4,947
Payables 1,093 1,055
Liberty Group    
Related Party Transaction [Line Items]    
Receivables 116 254
Payables $ 17 $ 13
v3.25.4
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 31, 2024
May 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]          
Gain on sale of equity method investments   $ 203 $ 0 $ 194 $ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Formula E          
Related Party Transaction [Line Items]          
Gain on sale of equity method investments $ 61        
v3.25.4
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Schedule of Significant Contractual Commitments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Total  
2026 $ 7,598
2027 5,716
2028 3,996
2029 1,797
2030 1,727
Thereafter 3,063
Total 23,897
Content  
Content  
2026 5,736
2027 4,333
2028 3,354
2029 1,688
2030 1,641
Thereafter 2,993
Total 19,745
Other Purchase Obligations  
Other Obligations  
2026 1,384
2027 1,082
2028 475
2029 37
2030 33
Thereafter 16
Total 3,027
Other Employee Obligations  
Other Obligations  
2026 478
2027 301
2028 167
2029 72
2030 53
Thereafter 54
Total $ 1,125
v3.25.4
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other Commitments [Line Items]    
Material amounts for indemnifications or other contingencies $ 0 $ 0
Guarantor obligations, current carrying value 0 $ 0
Other Purchase Obligations    
Other Commitments [Line Items]    
Other contingent commitments $ 3,027,000,000  
Other Purchase Obligations | Minimum    
Other Commitments [Line Items]    
Contract termination notice, period without penalty (in days) 30 days  
Other Purchase Obligations | Maximum    
Other Commitments [Line Items]    
Contract termination notice, period without penalty (in days) 60 days  
Six Flags Guarantee    
Other Commitments [Line Items]    
Gross aggregate undiscounted future cash flow requirements cover by guarantee $ 590,000,000  
Payments for guarantee obligations 0  
Post-Production Term Advance Obligation    
Other Commitments [Line Items]    
Other contingent commitments $ 85,000,000  
v3.25.4
REPORTABLE SEGMENTS - Schedule of Revenues by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total revenues $ 37,296 $ 39,321 $ 41,321
Operating Segments | Streaming      
Segment Reporting Information [Line Items]      
Total revenues 10,876 10,313 10,154
Operating Segments | Studios      
Segment Reporting Information [Line Items]      
Total revenues 12,619 11,607 12,192
Operating Segments | Global Linear Networks      
Segment Reporting Information [Line Items]      
Total revenues 17,656 20,175 21,244
Corporate      
Segment Reporting Information [Line Items]      
Total revenues 2 8 0
Inter-segment eliminations      
Segment Reporting Information [Line Items]      
Total revenues $ (3,857) $ (2,782) $ (2,269)
v3.25.4
REPORTABLE SEGMENTS - Schedule of Reconciliation of Revenues to Segment Adjusted EBITDA (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenues $ 37,296 $ 39,321 $ 41,321
Segment Adjusted EBITDA 10,327 10,478 11,349
Operating Segments | Streaming      
Segment Reporting Information [Line Items]      
Revenues 10,876 10,313 10,154
Content expense 6,145 6,183 6,454
Personnel expense 760 773 844
Marketing expense 1,000 1,147 1,313
Other segment expenses 1,601 1,533 1,440
Segment Adjusted EBITDA 1,370 677 103
Operating Segments | Studios      
Segment Reporting Information [Line Items]      
Revenues 12,619 11,607 12,192
Content expense 7,108 7,260 7,112
Personnel expense 963 943 927
Marketing expense 1,066 1,064 1,268
Other segment expenses 937 688 702
Segment Adjusted EBITDA 2,545 1,652 2,183
Operating Segments | Global Linear Networks      
Segment Reporting Information [Line Items]      
Revenues 17,656 20,175 21,244
Content expense 6,522 7,135 7,140
Personnel expense 2,009 2,153 2,173
Marketing expense 529 454 439
Other segment expenses 2,184 2,284 2,429
Segment Adjusted EBITDA $ 6,412 $ 8,149 $ 9,063
v3.25.4
REPORTABLE SEGMENTS - Schedule of Reconciliation of Segment Adjusted EBITDA to Loss Before Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA $ 10,327 $ 10,478 $ 11,349
Depreciation and amortization 5,684 7,037 7,985
Employee share-based compensation 751 546 488
Restructuring and other charges 399 447 585
Transaction and integration costs 166 242 162
Facility consolidation costs 10 4 32
Impairment and amortization of fair value step-up for content 784 1,139 2,373
Amortization of capitalized interest for content 40 46 46
Impairments and loss on dispositions 172 9,603 77
Other income (expense), net (65) (150) 29
Loss from equity investees, net 24 121 82
Gain on extinguishment of debt (2,945) (632) (17)
Interest expense, net 2,085 2,017 2,221
Income (loss) before income taxes 1,639 (11,388) (3,863)
Operating Segments | Streaming      
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA 1,370 677 103
Restructuring and other charges 27 3 66
Operating Segments | Studios      
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA 2,545 1,652 2,183
Restructuring and other charges 18 263 225
Operating Segments | Global Linear Networks      
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA 6,412 8,149 9,063
Restructuring and other charges 69 85 201
Corporate      
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA 1,096 1,260 1,242
Inter-segment eliminations      
Segment Reporting Information [Line Items]      
Segment Adjusted EBITDA $ 487 $ 186 $ (93)
v3.25.4
REPORTABLE SEGMENTS - Schedule of Content Amortization and Impairment Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense $ 11,855 $ 14,111 $ 16,139
Corporate      
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense 1 3 (6)
Inter-segment eliminations      
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense (2,809) (2,250) (1,697)
Streaming | Operating Segments      
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense 5,464 6,416 6,138
Studios | Operating Segments      
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense 3,106 5,692 5,074
Global Linear Networks | Operating Segments      
Segment Reporting Information [Line Items]      
Total content amortization and impairment expense $ 6,093 $ 4,250 $ 6,630
v3.25.4
REPORTABLE SEGMENTS - Schedule of Revenues by Geography (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue and service charges $ 37,296 $ 39,321 $ 41,321
U.S.      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue and service charges 24,946 26,434 28,004
Non-U.S.      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue and service charges $ 12,350 $ 12,887 $ 13,317
v3.25.4
REPORTABLE SEGMENTS - Schedule of Property and Equipment by Geography (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Segment Reporting, Asset Reconciling Item [Line Items]    
Total property and equipment, net $ 6,685 $ 6,087
U.S.    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total property and equipment, net 4,494 4,430
U.K.    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total property and equipment, net 1,386 991
Other non-U.S.    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total property and equipment, net $ 805 $ 666
v3.25.4
SUBSEQUENT EVENTS (Details)
12 Months Ended
Feb. 27, 2026
USD ($)
$ / shares
$ / day
Jan. 05, 2026
USD ($)
shares
Jan. 02, 2026
$ / shares
shares
Dec. 31, 2025
$ / shares
shares
Dec. 31, 2024
$ / shares
Dec. 31, 2023
$ / shares
Mar. 31, 2027
Dec. 31, 2026
Sep. 30, 2026
Jun. 30, 2026
Mar. 31, 2026
Subsequent Event [Line Items]                      
Grants in period, weighted average grant date fair value (in dollars per share)       $ 5.29 $ 4.30 $ 7.43          
Restricted Stock Units (RSUs)                      
Subsequent Event [Line Items]                      
Granted (in shares) | shares       43,000,000.0              
Subsequent Event | Netflix Merger Agreement | Paramount Skydance Corporation                      
Subsequent Event [Line Items]                      
Cash payment for termination fee | $ $ 2,800,000,000                    
Subsequent Event | PSKY Merger Agreement                      
Subsequent Event [Line Items]                      
Investment cash consideration per share (in dollars per share) $ 31.00                    
Ticking consideration multiple | $ / day 0.00277778                    
Maximum ticking consideration in 90 day period | $ $ 0.25                    
Subsequent Event | Chief Executive Officer                      
Subsequent Event [Line Items]                      
Granted (in shares) | shares     3,052,734                
Grants in period, weighted average grant date fair value (in dollars per share)     $ 10.47                
Exercise price (in dollars per share)     $ 28.51                
Subsequent Event | Chief Executive Officer | Restricted Stock Units (RSUs)                      
Subsequent Event [Line Items]                      
Granted (in shares) | shares   1,963,465                  
Grant date fair value | $   $ 56,000,000                  
Forecast | Bridge Loan Facility | Bridge Loan                      
Subsequent Event [Line Items]                      
Fee rate             1.00% 1.00% 1.00% 0.50% 0.50%
Forecast | Bridge Loan Facility | Bridge Loan | Subsequent Event                      
Subsequent Event [Line Items]                      
Fee rate             1.00% 1.00% 0.75%    
v3.25.4
Schedule II: Valuation and Qualifying Accounts (Details) - Deferred tax valuation allowance - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning of Year $ 2,043 $ 2,191 $ 1,849
Additions 397 179 429
Deductions (42) (327) (87)
End of Year $ 2,398 $ 2,043 $ 2,191