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REPORTABLE SEGMENTS
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company’s operating segments are determined based on: (i) financial information reviewed by its chief operating decision maker, the Chief Executive Officer (“CEO”), (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content licenses. The Company records inter-segment transactions of content licenses at the gross amount. The Company does not report assets by segment because it is not used to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its operating segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding:
•employee share-based compensation;
•depreciation and amortization;
•restructuring and facility consolidation;
•certain impairment charges;
•gains and losses on business and asset dispositions;
•third-party transaction and integration costs;
•amortization of purchase accounting fair value step-up for content;
•amortization of capitalized interest for content; and
•other items impacting comparability.
The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. Adjusted EBITDA should be considered in addition to, but not a substitute for, operating income, net income, and other measures of financial performance reported in accordance with U.S. GAAP. We prospectively updated certain corporate allocations at the beginning of 2024. The impact to prior periods was immaterial.
The tables below present summarized financial information for each of the Company’s reportable segments, corporate, and inter-segment eliminations (in millions).
Revenues
 Three Months Ended March 31,
20242023
Studios$2,821 $3,212 
Networks5,125 5,581 
DTC2,460 2,455 
Corporate1 — 
Inter-segment eliminations (449)(548)
Total revenues$9,958 $10,700 
Adjusted EBITDA
Three Months Ended March 31,
20242023
Studios$184 $607 
Networks2,119 2,293 
DTC86 50 
Corporate(346)(355)
Inter-segment eliminations 59 16 
Adjusted EBITDA$2,102 $2,611 
Reconciliation of Net Loss available to Warner Bros. Discovery, Inc. to Adjusted EBITDA
 Three Months Ended March 31,
20242023
Net loss available to Warner Bros. Discovery, Inc.$(966)$(1,069)
Net income attributable to redeemable noncontrolling interests4 1 
Net income attributable to noncontrolling interests7 8 
Income tax expense (benefit)136 (178)
Loss before income taxes(819)(1,238)
Other (income) expense, net(11)73 
Loss from equity investees, net48 37 
Interest expense, net515 571 
Operating loss(267)(557)
Depreciation and amortization1,888 2,058 
Employee share-based compensation99 106 
Restructuring and other charges35 95 
Transaction and integration costs81 47 
Facility consolidation costs2 — 
Impairment and amortization of fair value step-up for content235 831 
Amortization of capitalized interest for content17 — 
Impairments and loss on dispositions12 31 
Adjusted EBITDA$2,102 $2,611