Company: WBD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437107-25-000096
Chunk: 100

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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IEs, including the investment carrying values and unfunded contractual commitments made on behalf of VIEs, was approximately $550 million. The Company’s maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $531 million and $550 million as of March 31, 2025 and December 31, 2024, respectively. VIE gains and losses are recorded in loss from equity investees, net on the consolidated statements of operations, and were not material for the three months ended March 31, 2025 and 2024.Joint VentureIn January 2025, the Company contributed a 70% interest in its music catalog to a joint venture with Cutting Edge Group in exchange for net proceeds of $601 million. The Company retained a controlling financial interest and consolidated the joint venture as a VIE. The Company has determined that it is the primary beneficiary of the joint venture as the Company has certain operational rights that significantly impact the economic performance of the business including exploitation of the catalog works and selection of the administrator. As the primary beneficiary, the Company includes the joint venture assets, liabilities and results of operations in the Company's consolidated financial statements. As of March 31, 2025, the carrying amounts of assets and liabilities of the consolidated VIE were not material. In addition to the initial equity ownership, Cutting Edge Group, may receive up to an additional 10% economic interest in the venture based on the results of certain operational metrics.

15

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

NOTE 8. DEBT

The table below presents the components of outstanding debt (in millions). Weighted-AverageInterest Rate as ofMarch 31, 2025March 31, 2025December 31, 2024Term loan with maturity of less than 1 year5.45 %$1,500 $— Senior notes with maturities of 5 years or less3.89 %10,805 13,744 Senior notes with maturities between 5 and 10 years4.38 %7,211 7,853 Senior notes with maturities greater than 10 years5.20 %17,930 17,930 Total debt37,446 39,527 Unamortized discount, premium, debt issuance costs, and fair value adjustments