Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 105

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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(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 (expense), net in the consolidated statements of operations (in millions).Three Months Ended March 31,20252024Interest rate swaps$1 $21 Total return swaps(11)19 Total in selling, general and administrative expense(10)40 Interest rate swaps— 2 Cross-currency swaps(1)— Foreign exchange derivatives 9 (8)Total in other income (expense), net8 (6)Total$(2)$34 

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).  March 31, 2025CategoryBalance Sheet LocationLevel 1Level 2Level 3TotalAssetsCash equivalents:Time depositsCash and cash equivalents$— $349 $— $349 Equity securities:Money market fundCash and cash equivalents46 — — 46 Mutual fundsPrepaid expenses and other current assets18 — — 18 Company-owned life insurance contractsPrepaid expenses and other current assets— 3 — 3 Mutual fundsOther noncurrent assets210 — — 210 Company-owned life insurance contractsOther noncurrent assets— 100 — 100 Total$274 $452 $— $726 LiabilitiesDeferred compensation planAccrued liabilities$68 $— $— $68 Deferred compensation planOther noncurrent liabilities639 — — 639 Total$707 $— $— $707 

19

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

December