Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 139

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 administrative expenses, offsetting securitization interest expense. During the three months ended June 30, 2025, the Company unwound foreign exchange forward contracts with a notional value of €450 million associated with the Company’s euro-denominated debt that was partially repaid in association with the Tender Offers. The Company also entered into and subsequently unwound and settled foreign exchange forward contracts with a notional value of €450 million to hedge the tender payment for the Company’s euro-denominated debt and recorded a gain of $9 million to other income, net. (See Note 8.)

20

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

The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in selling, general and administrative expense and other income, net in the consolidated statements of operations (in millions).Three Months Ended June 30,Six Months Ended June 30,2025202420252024Interest rate swaps$(3)$7 $(2)$28 Total return swaps31 1 20 20 Total in selling, general and administrative expense28 8 18 48 Interest rate swaps— (5)— (3)Cross-currency swaps(6)— (7)— Foreign exchange derivatives 25 (17)34 (25)Total in other income, net19 (22)27 (28)Total$47 $(14)$45 $20 

NOTE 10. FAIR VALUE MEASUREMENTS

Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories:Level 1–Quoted prices for identical instruments in active markets.Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.Level 3–Valuations derived from techniques in which one or more significant inputs are unobservable.The tables below present assets and liabilities measured at fair value on a recurring basis (in millions).  June 30, 2025CategoryBalance Sheet LocationLevel 1Level 2Level 3TotalAssetsCash equivalents:Time depositsCash and cash equivalents$— $317