Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 51

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 following table summarizes the Company’s derivative financial instruments recorded on its consolidated balance sheets (in millions).June 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$2,363 $54 $84 $60 $41 $1,608 $47 $14 $25 $28 Net investment hedges: (a)Cross-currency swaps461 7 — — 15 421 6 — — 4 No hedging designation:Foreign exchange358 6 2 14 76 951 18 7 14 122 Cross-currency swaps230 4 — — 10 210 2 — — 1 Interest rate swaps2,500 — — 3 — — — — — — Total return swaps477 17 — — — 454 — — 16 — Total$88 $86 $77 $142 $73 $21 $55 $155 (a) Excludes €697 million and €1,500 million of euro-denominated notes ($818 million and $1,558 million equivalent) at June 30, 2025 and December 31, 2024, respectively, designated as a net investment hedge. (See Note 8.)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 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 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