Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 142

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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2024, the Company’s reserves for unrecognized tax benefits totaled $2,479 million and $2,371 million, respectively.As of June 30, 2025 and December 31, 2024, the Company had accrued $815 million and $732 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 Organization 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 June 30, 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 was signed into law in the U.S., which includes a broad range of tax reform provisions. We are currently evaluating its impact on our financial statements.

NOTE 13. SUPPLEMENTAL DISCLOSURES

The following tables present supplemental information related to the consolidated financial statements (in millions).Other Income, netOther income, net, consisted of the following (in millions).Three Months Ended June 30,Six Months Ended June 30,2025202420252024Foreign currency gains (losses), net$58 $(54)$88 $(191)Gains (losses) on derivative instruments, net19 (17)41 (23)Change in the value of investments with readily determinable fair value— (1)4 (2)Gain on sale of equity method investments— 203 — 203 Change in fair value of equity investments without readily determinable fair value— (13)(4)(27)Interest income59 63 123 123 Indemnification receivable accrual(5)6 (43)96 Other income (loss), net8 (15)12 (21)Total other income, net $139 $172 $221 $158 Supplemental Cash