Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 66

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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,808 Personnel expense (b)393 471 1,114 Marketing expense642 557 203 Other segment expenses (c)748 366 1,155 Segment Adjusted EBITDA$(21)$394 $4,117 (a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.

29

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

Reconciliation of segment adjusted EBITDA to loss before income taxes Three Months Ended June 30,Six Months Ended June 30,2025202420252024Streaming$293 $(107)$632 $(21)Studios863 210 1,122 394 Global Linear Networks1,512 1,998 3,305 4,117 Segment Adjusted EBITDA2,668 2,101 5,059 4,490 Depreciation and amortization1,447 1,744 2,994 3,632 Employee share-based compensation173 156 293 255 Restructuring and other charges80 117 134 152 Transaction and integration costs17 51 97 132 Facility consolidation costs4 5 9 7 Impairment and amortization of fair value step-up for content388 522 628 757 Amortization of capitalized interest for content3 13