Company: WBD
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437107-25-000216
Chunk: 133

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 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 September 30, 2025 and December 31, 2024. The fair value of the Company’s derivative financial instruments 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).September 30, 2025December 31, 2024Fair ValueFair ValueNotionalPrepaid expenses and other current assetsOther non-current assetsAccounts payable and accrued liabilitiesOther non-current liabilitiesNotionalPrepaid expenses and other current assetsOther non-current assetsAccounts payable and accrued liabilitiesOther non-current liabilitiesCash flow hedges:Foreign exchange$2,046 $40 $63 $46 $32 $1,608 $47 $14 $25 $28 Net investment hedges: (a)Cross-currency swaps451 7 — — 21 421 6 — — 4 No hedging designation:Foreign exchange336 8 1 11 77 951 18 7 14 122 Cross-currency swaps225 4 — — 12 210 2 — — 1 Interest rate swaps2,500 1 — 2 — — — — — — Total return swaps496 11 — — — 454 — — 16 — Total$71 $64 $59 $142 $73 $21 $55 $155 (a) Excludes €781 million and €1,500 million of euro-denominated notes ($918 million and $1,558 million equivalent) at September 30, 2025 and December 31, 2024, respectively, designated as a net investment hedge.

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WARNER BROS. DISCOVERY, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)

Derivatives Designated for Hedge Accounting Cash Flow HedgesThe 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