Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 52

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 other comprehensive loss (in millions). Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Gains (losses) recognized in accumulated other comprehensive loss:Foreign exchange - derivative adjustments$28 $15 $42 $31 Gains (losses) reclassified into income from accumulated other comprehensive loss:Foreign exchange - distribution revenue(5)1 (1)3 Foreign exchange - costs of revenues1 (4)1 7 Interest rate - interest expense, net(1)(1)(2)(2)Interest rate - loss on extinguishment of debt(1)(4)(1)(4)Interest rate - other income, net— 5 14 5 

19

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

If current fair values of designated cash flow hedges as of June 30, 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 HedgesThe 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.The following table presents the pre-tax impact of derivatives and other instruments designated as net investment hedges on other comprehensive 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 three and six months ended June 30, 2025 and 2024.Three Months Ended June 30,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)2025202420252024Cross currency swaps$(8)$14 Interest expense, net$3 $6 Euro-denominated notes (foreign denominated debt)(148)21 N/A— — Total$(156)$35 $3 $6 Six Months Ended June 30,Amount of gain (loss) recognized in AOCILocation of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing