Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 31

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 each reporting unit exceeded its carrying value.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 in the price of our common stock;•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;•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.

NOTE 3. RESTRUCTURING AND OTHER CHARGES

The Company periodically initiates restructuring programs, which may include, among other things, strategic content programming assessments, organization restructuring, facility consolidation activities, and other contract termination costs. 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.Restructuring and other charges by reportable segments and corporate and inter-segment eliminations were as follows (in millions). Three Months Ended March 31, 20252024Streaming$12 $2 Studios(5)11 Global Linear Networks16 11 Corporate and inter-segment eliminations31 11 Total restructuring and other charges$54 $35 During the three months ended March 31, 2025 and 2024, restructuring and other charges were primarily related to organization restructuring costs and consulting fees.

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

Changes in restructuring liabilities recorded in accrued liabilities and other noncurrent liabilities by major category and by reportable segment and corporate and inter-segment eliminations were as follows (in millions).StreamingStudiosGlobal Linear NetworksCorporateTotalDecember 31, 2024$31 $95 $105 $58 $289 Employee termination accruals, net12 (5)14 8 29 Other accruals and adjustments— — — 24 24 Cash