QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-2949533 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
New York, | New York | 10036 | ||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||||||||||||||||||||
Class A Common Stock, $0.001 par value | PARAA | The Nasdaq Stock Market LLC | ||||||||||||||||||||||||
Class B Common Stock, $0.001 par value | PARA | The Nasdaq Stock Market LLC | ||||||||||||||||||||||||
5.75% Series A Mandatory Convertible Preferred Stock, $0.001 par value | PARAP | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | ||||||||
PART I – FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1. | Financial Statements. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 3,171 | $ | 3,084 | $ | 9,771 | $ | 9,648 | |||||||
Costs and expenses: | |||||||||||||||
Operating | 1,862 | 1,788 | 5,940 | 5,818 | |||||||||||
Selling, general and administrative | 547 | 521 | 1,585 | 1,534 | |||||||||||
Depreciation and amortization | 55 | 54 | 166 | 168 | |||||||||||
Other operating items, net | — | — | — | (9 | ) | ||||||||||
Total costs and expenses | 2,464 | 2,363 | 7,691 | 7,511 | |||||||||||
Operating income | 707 | 721 | 2,080 | 2,137 | |||||||||||
Interest expense | (116 | ) | (104 | ) | (336 | ) | (304 | ) | |||||||
Interest income | 17 | 7 | 45 | 22 | |||||||||||
Loss on early extinguishment of debt (Note 6) | (5 | ) | — | (5 | ) | — | |||||||||
Other items, net | 3 | — | 9 | (7 | ) | ||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 606 | 624 | 1,793 | 1,848 | |||||||||||
Provision for income taxes | (172 | ) | (145 | ) | (479 | ) | (524 | ) | |||||||
Equity in loss of investee companies, net of tax | (16 | ) | (13 | ) | (45 | ) | (43 | ) | |||||||
Net earnings from continuing operations | 418 | 466 | 1,269 | 1,281 | |||||||||||
Net earnings (loss) from discontinued operations, net of tax (Note 3) | 174 | 12 | (871 | ) | 93 | ||||||||||
Net earnings | $ | 592 | $ | 478 | $ | 398 | $ | 1,374 | |||||||
Basic net earnings (loss) per common share: | |||||||||||||||
Net earnings from continuing operations | $ | 1.04 | $ | 1.05 | $ | 3.13 | $ | 2.84 | |||||||
Net earnings (loss) from discontinued operations | $ | .43 | $ | .03 | $ | (2.15 | ) | $ | .21 | ||||||
Net earnings | $ | 1.48 | $ | 1.08 | $ | .98 | $ | 3.05 | |||||||
Diluted net earnings (loss) per common share: | |||||||||||||||
Net earnings from continuing operations | $ | 1.03 | $ | 1.04 | $ | 3.10 | $ | 2.82 | |||||||
Net earnings (loss) from discontinued operations | $ | .43 | $ | .03 | $ | (2.12 | ) | $ | .20 | ||||||
Net earnings | $ | 1.46 | $ | 1.07 | $ | .97 | $ | 3.02 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 401 | 442 | 405 | 451 | |||||||||||
Diluted | 406 | 446 | 410 | 455 | |||||||||||
Dividends per common share | $ | .18 | $ | .18 | $ | .54 | $ | .48 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues | $ | 7,265 | $ | 7,328 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 4,964 | 4,796 | |||||||||||||||||||||
Programming charges | 1,674 | — | |||||||||||||||||||||
Selling, general and administrative | 1,753 | 1,619 | |||||||||||||||||||||
Depreciation and amortization | 100 | 96 | |||||||||||||||||||||
Restructuring and other corporate matters | — | 57 | |||||||||||||||||||||
Total costs and expenses | 8,491 | 6,568 | |||||||||||||||||||||
Gain on dispositions | — | 15 | |||||||||||||||||||||
Operating income (loss) | (1,226) | 775 | |||||||||||||||||||||
Interest expense | (226) | (240) | |||||||||||||||||||||
Interest income | 35 | 21 | |||||||||||||||||||||
Loss on extinguishment of debt | — | (73) | |||||||||||||||||||||
Other items, net | (46) | (13) | |||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies | (1,463) | 470 | |||||||||||||||||||||
Benefit (provision) for income taxes | 381 | (34) | |||||||||||||||||||||
Equity in loss of investee companies, net of tax | (75) | (37) | |||||||||||||||||||||
Net earnings (loss) from continuing operations | (1,157) | 399 | |||||||||||||||||||||
Net earnings from discontinued operations, net of tax | 45 | 42 | |||||||||||||||||||||
Net earnings (loss) (Paramount and noncontrolling interests) | (1,112) | 441 | |||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (6) | (8) | |||||||||||||||||||||
Net earnings (loss) attributable to Paramount | $ | (1,118) | $ | 433 | |||||||||||||||||||
Amounts attributable to Paramount: | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | (1,163) | $ | 391 | |||||||||||||||||||
Net earnings from discontinued operations, net of tax | 45 | 42 | |||||||||||||||||||||
Net earnings (loss) attributable to Paramount | $ | (1,118) | $ | 433 | |||||||||||||||||||
Basic net earnings (loss) per common share attributable to Paramount: | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | (1.81) | $ | .58 | |||||||||||||||||||
Net earnings from discontinued operations | $ | .07 | $ | .06 | |||||||||||||||||||
Net earnings (loss) | $ | (1.74) | $ | .65 | |||||||||||||||||||
Diluted net earnings (loss) per common share attributable to Paramount: | |||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | (1.81) | $ | .58 | |||||||||||||||||||
Net earnings from discontinued operations | $ | .07 | $ | .06 | |||||||||||||||||||
Net earnings (loss) | $ | (1.74) | $ | .64 | |||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 651 | 649 | |||||||||||||||||||||
Diluted | 651 | 651 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net earnings | $ | 592 | $ | 478 | $ | 398 | $ | 1,374 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Cumulative translation adjustments | 2 | 1 | 4 | 2 | |||||||||||
Amortization of net actuarial loss and prior service cost | 13 | 10 | 37 | 29 | |||||||||||
Total other comprehensive income, net of tax | 15 | 11 | 41 | 31 | |||||||||||
Total comprehensive income | $ | 607 | $ | 489 | $ | 439 | $ | 1,405 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net earnings (loss) (Paramount and noncontrolling interests) | $ | (1,112) | $ | 441 | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Cumulative translation adjustments | 53 | (40) | |||||||||||||||||||||
Decrease to net actuarial loss and prior service costs | 11 | 16 | |||||||||||||||||||||
Other comprehensive income (loss) from continuing operations, net of tax (Paramount and noncontrolling interests) | 64 | (24) | |||||||||||||||||||||
Other comprehensive income from discontinued operations | 2 | 2 | |||||||||||||||||||||
Comprehensive income (loss) | (1,046) | 419 | |||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 7 | 8 | |||||||||||||||||||||
Comprehensive income (loss) attributable to Paramount | $ | (1,053) | $ | 411 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 144 | $ | 598 | |||||||
Receivables, less allowances of $48 (2017) and $60 (2016) | 3,598 | 3,314 | |||||||||
Programming and other inventory (Note 4) | 1,830 | 1,427 | |||||||||
Prepaid income taxes | — | 30 | |||||||||
Prepaid expenses | 182 | 185 | |||||||||
Other current assets | 185 | 204 | |||||||||
Current assets of discontinued operations (Note 3) | 355 | 305 | |||||||||
Total current assets | 6,294 | 6,063 | |||||||||
Property and equipment | 3,001 | 2,935 | |||||||||
Less accumulated depreciation and amortization | 1,793 | 1,694 | |||||||||
Net property and equipment | 1,208 | 1,241 | |||||||||
Programming and other inventory (Note 4) | 2,814 | 2,439 | |||||||||
Goodwill | 4,891 | 4,864 | |||||||||
Intangible assets | 2,617 | 2,633 | |||||||||
Other assets | 2,745 | 2,707 | |||||||||
Assets of discontinued operations (Note 3) | 3,325 | 4,291 | |||||||||
Total Assets | $ | 23,894 | $ | 24,238 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 233 | $ | 148 | |||||||
Accrued compensation | 257 | 369 | |||||||||
Participants’ share and royalties payable | 997 | 1,024 | |||||||||
Program rights | 509 | 290 | |||||||||
Income taxes payable | 55 | — | |||||||||
Commercial paper (Note 6) | 590 | 450 | |||||||||
Current portion of long-term debt (Note 6) | 19 | 23 | |||||||||
Accrued expenses and other current liabilities | 1,238 | 1,249 | |||||||||
Current liabilities of discontinued operations (Note 3) | 154 | 155 | |||||||||
Total current liabilities | 4,052 | 3,708 | |||||||||
Long-term debt (Note 6) | 9,080 | 8,902 | |||||||||
Pension and postretirement benefit obligations | 1,619 | 1,769 | |||||||||
Deferred income tax liabilities, net | 645 | 590 | |||||||||
Other liabilities | 3,038 | 3,129 | |||||||||
Liabilities of discontinued operations (Note 3) | 2,466 | 2,451 | |||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders’ Equity: | |||||||||||
Class A Common Stock, par value $.001 per share; 375 shares authorized; 38 (2017 and 2016) shares issued | — | — | |||||||||
Class B Common Stock, par value $.001 per share; 5,000 shares authorized; 833 (2017) and 829 (2016) shares issued | 1 | 1 | |||||||||
Additional paid-in capital | 43,830 | 43,913 | |||||||||
Accumulated deficit | (18,859 | ) | (19,257 | ) | |||||||
Accumulated other comprehensive loss (Note 8) | (726 | ) | (767 | ) | |||||||
24,246 | 23,890 | ||||||||||
Less treasury stock, at cost; 471 (2017) and 455 (2016) Class B shares | 21,252 | 20,201 | |||||||||
Total Stockholders’ Equity | 2,994 | 3,689 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 23,894 | $ | 24,238 |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2,109 | $ | 2,885 | |||||||||||||||||||
Receivables, net | 7,448 | 7,412 | |||||||||||||||||||||
Programming and other inventory | 1,085 | 1,342 | |||||||||||||||||||||
Prepaid expenses and other current assets | 1,364 | 1,308 | |||||||||||||||||||||
Current assets of discontinued operations | 651 | 787 | |||||||||||||||||||||
Total current assets | 12,657 | 13,734 | |||||||||||||||||||||
Property and equipment, net | 1,718 | 1,762 | |||||||||||||||||||||
Programming and other inventory | 15,692 | 16,278 | |||||||||||||||||||||
Goodwill | 16,511 | 16,499 | |||||||||||||||||||||
Intangible assets, net | 2,688 | 2,694 | |||||||||||||||||||||
Operating lease assets | 1,363 | 1,391 | |||||||||||||||||||||
Deferred income tax assets, net | 1,286 | 1,242 | |||||||||||||||||||||
Other assets | 3,848 | 3,991 | |||||||||||||||||||||
Assets of discontinued operations | 798 | 802 | |||||||||||||||||||||
Total Assets | $ | 56,561 | $ | 58,393 | |||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 1,235 | $ | 1,403 | |||||||||||||||||||
Accrued expenses | 1,760 | 2,071 | |||||||||||||||||||||
Participants’ share and royalties payable | 2,421 | 2,416 | |||||||||||||||||||||
Accrued programming and production costs | 2,425 | 2,063 | |||||||||||||||||||||
Deferred revenues | 1,092 | 973 | |||||||||||||||||||||
Debt | 240 | 239 | |||||||||||||||||||||
Other current liabilities | 1,642 | 1,477 | |||||||||||||||||||||
Current liabilities of discontinued operations | 480 | 549 | |||||||||||||||||||||
Total current liabilities | 11,295 | 11,191 | |||||||||||||||||||||
Long-term debt | 15,613 | 15,607 | |||||||||||||||||||||
Participants’ share and royalties payable | 1,665 | 1,744 | |||||||||||||||||||||
Pension and postretirement benefit obligations | 1,454 | 1,458 | |||||||||||||||||||||
Deferred income tax liabilities, net | 668 | 1,077 | |||||||||||||||||||||
Operating lease liabilities | 1,398 | 1,428 | |||||||||||||||||||||
Program rights obligations | 326 | 367 | |||||||||||||||||||||
Other liabilities | 1,603 | 1,715 | |||||||||||||||||||||
Liabilities of discontinued operations | 196 | 200 | |||||||||||||||||||||
Commitments and contingencies (Note 13) | |||||||||||||||||||||||
Paramount stockholders’ equity: | |||||||||||||||||||||||
5.75% Series A Mandatory Convertible Preferred Stock, par value $.001 per share; 25 shares authorized; 10 (2023 and 2022) shares issued | — | — | |||||||||||||||||||||
Class A Common Stock, par value $.001 per share; 55 shares authorized; 41 (2023 and 2022) shares issued | — | — | |||||||||||||||||||||
Class B Common Stock, par value $.001 per share; 5,000 shares authorized; 1,113 (2023) and 1,112 (2022) shares issued | 1 | 1 | |||||||||||||||||||||
Additional paid-in capital | 33,087 | 33,063 | |||||||||||||||||||||
Treasury stock, at cost; 503 (2023 and 2022) shares of Class B Common Stock | (22,958) | (22,958) | |||||||||||||||||||||
Retained earnings | 13,463 | 14,737 | |||||||||||||||||||||
Accumulated other comprehensive loss | (1,742) | (1,807) | |||||||||||||||||||||
Total Paramount stockholders’ equity | 21,851 | 23,036 | |||||||||||||||||||||
Noncontrolling interests | 492 | 570 | |||||||||||||||||||||
Total Equity | 22,343 | 23,606 | |||||||||||||||||||||
Total Liabilities and Equity | $ | 56,561 | $ | 58,393 |
Nine Months Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 398 | $ | 1,374 | |||
Less: Net earnings (loss) from discontinued operations, net of tax | (871 | ) | 93 | ||||
Net earnings from continuing operations | 1,269 | 1,281 | |||||
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities from continuing operations: | |||||||
Depreciation and amortization | 166 | 168 | |||||
Stock-based compensation | 129 | 123 | |||||
Equity in loss of investee companies, net of tax and distributions | 45 | 48 | |||||
Change in assets and liabilities, net of investing and financing activities | (674 | ) | (503 | ) | |||
Net cash flow provided by operating activities from continuing operations | 935 | 1,117 | |||||
Net cash flow provided by operating activities from discontinued operations | 52 | 189 | |||||
Net cash flow provided by operating activities | 987 | 1,306 | |||||
Investing Activities: | |||||||
Acquisitions (including acquired television library) | (258 | ) | (51 | ) | |||
Capital expenditures | (112 | ) | (111 | ) | |||
Investments in and advances to investee companies | (67 | ) | (44 | ) | |||
Proceeds from sale of investments | 10 | — | |||||
Proceeds from dispositions | 11 | 20 | |||||
Other investing activities | 17 | 7 | |||||
Net cash flow used for investing activities from continuing operations | (399 | ) | (179 | ) | |||
Net cash flow used for investing activities from discontinued operations | (18 | ) | (2 | ) | |||
Net cash flow used for investing activities | (417 | ) | (181 | ) | |||
Financing Activities: | |||||||
Proceeds from short-term debt borrowings, net | 140 | 33 | |||||
Proceeds from issuance of senior notes | 889 | 685 | |||||
Repayment of senior notes and debentures | (701 | ) | (199 | ) | |||
Proceeds from debt borrowings of CBS Radio | 40 | — | |||||
Repayment of debt borrowings of CBS Radio | (23 | ) | — | ||||
Payment of capital lease obligations | (13 | ) | (13 | ) | |||
Payment of contingent consideration | (7 | ) | — | ||||
Dividends | (224 | ) | (209 | ) | |||
Purchase of Company common stock | (1,111 | ) | (1,534 | ) | |||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (89 | ) | (57 | ) | |||
Proceeds from exercise of stock options | 81 | 13 | |||||
Excess tax benefit from stock-based compensation (Note 1) | — | 13 | |||||
Other financing activities | — | (1 | ) | ||||
Net cash flow used for financing activities | (1,018 | ) | (1,269 | ) | |||
Net decrease in cash and cash equivalents | (448 | ) | (144 | ) | |||
Cash and cash equivalents at beginning of period (includes $24 (2017) and $6 (2016) of discontinued operations cash) | 622 | 323 | |||||
Cash and cash equivalents at end of period (includes $30 (2017) and $1 (2016) of discontinued operations cash) | $ | 174 | $ | 179 | |||
Supplemental disclosure of cash flow information | |||||||
Cash paid for interest: | |||||||
Continuing operations | $ | 393 | $ | 358 | |||
Discontinued operations | $ | 52 | $ | — | |||
Cash paid for income taxes: | |||||||
Continuing operations | $ | 321 | $ | 310 | |||
Discontinued operations | $ | 58 | $ | 60 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities: | |||||||||||
Net earnings (loss) (Paramount and noncontrolling interests) | $ | (1,112) | $ | 441 | |||||||
Less: Net earnings from discontinued operations, net of tax | 45 | 42 | |||||||||
Net earnings (loss) from continuing operations | (1,157) | 399 | |||||||||
Adjustments to reconcile net earnings (loss) from continuing operations to net cash flow (used for) provided by operating activities from continuing operations: | |||||||||||
Depreciation and amortization | 100 | 96 | |||||||||
Programming charges | 1,674 | — | |||||||||
Deferred tax benefit | (436) | (62) | |||||||||
Stock-based compensation | 39 | 36 | |||||||||
Gain on dispositions | — | (15) | |||||||||
Loss on extinguishment of debt | — | 73 | |||||||||
Equity in loss of investee companies, net of tax | 75 | 37 | |||||||||
Change in assets and liabilities | (778) | (269) | |||||||||
Net cash flow (used for) provided by operating activities from continuing operations | (483) | 295 | |||||||||
Net cash flow provided by operating activities from discontinued operations | 105 | 102 | |||||||||
Net cash flow (used for) provided by operating activities | (378) | 397 | |||||||||
Investing Activities: | |||||||||||
Investments | (43) | (59) | |||||||||
Capital expenditures | (71) | (52) | |||||||||
Other investing activities | 25 | 31 | |||||||||
Net cash flow used for investing activities | (89) | (80) | |||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of notes and debentures | — | 991 | |||||||||
Repayment of notes and debentures | — | (2,001) | |||||||||
Dividends paid on preferred stock | (14) | (14) | |||||||||
Dividends paid on common stock | (166) | (158) | |||||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (16) | (9) | |||||||||
Payments to noncontrolling interests | (89) | (77) | |||||||||
Other financing activities | (27) | (3) | |||||||||
Net cash flow used for financing activities | (312) | (1,271) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (11) | |||||||||
Net decrease in cash and cash equivalents | (776) | (965) | |||||||||
Cash and cash equivalents at beginning of year | 2,885 | 6,267 | |||||||||
Cash and cash equivalents at end of period | $ | 2,109 | $ | 5,302 | |||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Class A and B Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Paramount Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Shares) | (Shares) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | 10 | $ | — | 650 | $ | 1 | $ | 33,063 | $ | (22,958) | $ | 14,737 | $ | (1,807) | $ | 23,036 | $ | 570 | $ | 23,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity and other | — | — | 1 | — | 24 | — | 19 | — | 43 | — | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | (14) | — | (14) | — | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | — | — | — | (161) | — | (161) | — | (161) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | — | — | — | (85) | (85) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | — | — | — | — | — | — | (1,118) | — | (1,118) | 6 | (1,112) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 65 | 65 | 1 | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | 10 | $ | — | 651 | $ | 1 | $ | 33,087 | $ | (22,958) | $ | 13,463 | $ | (1,742) | $ | 21,851 | $ | 492 | $ | 22,343 |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Class A and B Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Paramount Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Shares) | (Shares) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | 10 | $ | — | 648 | $ | 1 | $ | 32,918 | $ | (22,958) | $ | 14,343 | $ | (1,902) | $ | 22,402 | $ | 568 | $ | 22,970 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation activity | — | — | 1 | — | 28 | — | — | — | 28 | — | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | (14) | — | (14) | — | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | — | — | — | (159) | — | (159) | — | (159) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | (4) | — | (4) | (83) | (87) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | 433 | — | 433 | 8 | 441 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (22) | (22) | — | (22) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | 10 | $ | — | 649 | $ | 1 | $ | 32,946 | $ | (22,958) | $ | 14,599 | $ | (1,924) | $ | 22,664 | $ | 493 | $ | 23,157 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
(in millions) | 2023 | 2022 | |||||||||||||||||||||
Weighted average shares for basic EPS | 651 | 649 | |||||||||||||||||||||
Dilutive effect of shares issuable under stock-based compensation plans | — | 2 | |||||||||||||||||||||
Weighted average shares for diluted EPS | 651 | 651 |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||
Weighted average shares for basic EPS | 401 | 442 | 405 | 451 | |||||||
Dilutive effect of shares issuable under stock-based compensation plans | 5 | 4 | 5 | 4 | |||||||
Weighted average shares for diluted EPS | 406 | 446 | 410 | 455 |
Three Months Ended | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Amounts attributable to Paramount: | ||||||||||||||||||||||||||
Net earnings (loss) from continuing operations | $ | (1,163) | $ | 391 | ||||||||||||||||||||||
Preferred stock dividends | (14) | (14) | ||||||||||||||||||||||||
Net earnings (loss) from continuing operations for basic and diluted EPS calculation | $ | (1,177) | $ | 377 | ||||||||||||||||||||||
Amounts attributable to Paramount: | ||||||||||||||||||||||||||
Net earnings (loss) | $ | (1,118) | $ | 433 | ||||||||||||||||||||||
Preferred stock dividends | (14) | (14) | ||||||||||||||||||||||||
Net earnings (loss) for basic and diluted EPS calculation | $ | (1,132) | $ | 419 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues | $ | 258 | $ | 217 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 151 | 124 | |||||||||||||||||||||
Selling, general and administrative | 45 | 38 | |||||||||||||||||||||
Total costs and expenses (a) | 196 | 162 | |||||||||||||||||||||
Operating income | 62 | 55 | |||||||||||||||||||||
Other items, net | (3) | (1) | |||||||||||||||||||||
Earnings from discontinued operations | 59 | 54 | |||||||||||||||||||||
Provision for income taxes (b) | (14) | (12) | |||||||||||||||||||||
Net earnings from discontinued operations, net of tax | $ | 45 | $ | 42 | |||||||||||||||||||
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Receivables, net | $ | 419 | $ | 558 | |||||||||||||||||||
Other current assets | 232 | 229 | |||||||||||||||||||||
Goodwill | 434 | 434 | |||||||||||||||||||||
Property and equipment, net | 53 | 53 | |||||||||||||||||||||
Operating lease assets | 204 | 204 | |||||||||||||||||||||
Other assets | 107 | 111 | |||||||||||||||||||||
Total Assets | $ | 1,449 | $ | 1,589 | |||||||||||||||||||
Royalties payable | $ | 160 | $ | 161 | |||||||||||||||||||
Other current liabilities | 320 | 388 | |||||||||||||||||||||
Operating lease liabilities | 179 | 182 | |||||||||||||||||||||
Other liabilities | 17 | 18 | |||||||||||||||||||||
Total Liabilities | $ | 676 | $ | 749 |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Film Group Monetization: | |||||||||||||||||||||||
Acquired program rights, including prepaid sports rights | $ | 2,899 | $ | 3,238 | |||||||||||||||||||
Internally-produced television and film programming: | |||||||||||||||||||||||
Released | 6,965 | 7,154 | |||||||||||||||||||||
In process and other | 2,690 | 3,299 | |||||||||||||||||||||
Individual Monetization: | |||||||||||||||||||||||
Acquired libraries | 382 | 394 | |||||||||||||||||||||
Film inventory: | |||||||||||||||||||||||
Released | 720 | 694 | |||||||||||||||||||||
Completed, not yet released | 47 | 129 | |||||||||||||||||||||
In process and other | 1,588 | 1,317 | |||||||||||||||||||||
Internally-produced television programming: | |||||||||||||||||||||||
Released | 759 | 624 | |||||||||||||||||||||
In process and other | 683 | 726 | |||||||||||||||||||||
Home entertainment | 44 | 45 | |||||||||||||||||||||
Total programming and other inventory | 16,777 | 17,620 | |||||||||||||||||||||
Less current portion | 1,085 | 1,342 | |||||||||||||||||||||
Total noncurrent programming and other inventory | $ | 15,692 | $ | 16,278 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Programming costs, acquired programming | $ | 1,414 | $ | 1,496 | |||||||||||||||||||
Production costs, internally-produced television and film programming: | |||||||||||||||||||||||
Individual monetization | $ | 396 | $ | 491 | |||||||||||||||||||
Film group monetization | $ | 1,368 | $ | 1,147 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
RSUs and PSUs | $ | 38 | $ | 35 | $ | 109 | $ | 102 | |||||||
Stock options | 6 | 7 | 20 | 21 | |||||||||||
Stock-based compensation expense, before income taxes | 44 | 42 | 129 | 123 | |||||||||||
Related tax benefit | (17 | ) | (17 | ) | (50 | ) | (48 | ) | |||||||
Stock-based compensation expense, net of tax benefit | $ | 27 | $ | 25 | $ | 79 | $ | 75 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 (a) | 2022 | ||||||||||||||||||||||
Revenues | $ | 108 | $ | 54 | |||||||||||||||||||
Operating expenses | $ | 4 | $ | 5 |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Accounts receivable | $ | 237 | $ | 198 | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues by Type: | |||||||||||||||||||||||
Advertising | $ | 2,651 | $ | 2,864 | |||||||||||||||||||
Affiliate and subscription | 3,179 | 2,840 | |||||||||||||||||||||
Theatrical | 127 | 131 | |||||||||||||||||||||
Licensing and other | 1,308 | 1,493 | |||||||||||||||||||||
Total Revenues | $ | 7,265 | $ | 7,328 |
Three Months Ended September 30, 2017 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 300 | $ | — | $ | 300 | |||||
Costs and expenses: (a) | |||||||||||
Operating | 113 | — | 113 | ||||||||
Selling, general and administrative | 121 | (1 | ) | 120 | |||||||
Benefit from valuation allowance | (100 | ) | — | (100 | ) | ||||||
Total costs and expenses | 134 | (1 | ) | 133 | |||||||
Operating income | 166 | 1 | 167 | ||||||||
Interest expense | (21 | ) | — | (21 | ) | ||||||
Earnings from discontinued operations | 145 | 1 | 146 | ||||||||
Income tax (provision) benefit | (17 | ) | 45 | 28 | |||||||
Net earnings from discontinued operations, net of tax | $ | 128 | $ | 46 | $ | 174 |
Three Months Ended September 30, 2016 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 317 | $ | — | $ | 317 | |||||
Costs and expenses: | |||||||||||
Operating | 110 | — | 110 | ||||||||
Selling, general and administrative | 123 | — | 123 | ||||||||
Depreciation and amortization | 7 | — | 7 | ||||||||
Total costs and expenses | 240 | — | 240 | ||||||||
Operating income | 77 | — | 77 | ||||||||
Other income | 2 | — | 2 | ||||||||
Earnings from discontinued operations | 79 | — | 79 | ||||||||
Income tax provision | (31 | ) | (36 | ) | (67 | ) | |||||
Net earnings (loss) from discontinued operations, net of tax | $ | 48 | $ | (36 | ) | $ | 12 |
Nine Months Ended September 30, 2017 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 856 | $ | — | $ | 856 | |||||
Costs and expenses: (a) | |||||||||||
Operating | 307 | — | 307 | ||||||||
Selling, general and administrative | 372 | (1 | ) | 371 | |||||||
Restructuring charge | 7 | — | 7 | ||||||||
Provision for valuation allowance | 980 | — | 980 | ||||||||
Total costs and expenses | 1,666 | (1 | ) | 1,665 | |||||||
Operating income (loss) | (810 | ) | 1 | (809 | ) | ||||||
Interest expense | (60 | ) | — | (60 | ) | ||||||
Earnings (loss) from discontinued operations | (870 | ) | 1 | (869 | ) | ||||||
Income tax (provision) benefit | (47 | ) | 45 | (2 | ) | ||||||
Net earnings (loss) from discontinued operations, net of tax | $ | (917 | ) | $ | 46 | $ | (871 | ) |
Nine Months Ended September 30, 2016 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 892 | $ | — | $ | 892 | |||||
Costs and expenses: | |||||||||||
Operating | 298 | — | 298 | ||||||||
Selling, general and administrative | 359 | — | 359 | ||||||||
Depreciation and amortization | 20 | — | 20 | ||||||||
Total costs and expenses | 677 | — | 677 | ||||||||
Operating income | 215 | — | 215 | ||||||||
Other income | 2 | — | 2 | ||||||||
Earnings from discontinued operations | 217 | — | 217 | ||||||||
Income tax provision | (88 | ) | (36 | ) | (124 | ) | |||||
Net earnings (loss) from discontinued operations, net of tax | $ | 129 | $ | (36 | ) | $ | 93 |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
7.875% Debentures due 2023 | $ | 139 | $ | 139 | |||||||||||||||||||
7.125% Senior Notes due 2023 | 35 | 35 | |||||||||||||||||||||
4.75% Senior Notes due 2025 | 553 | 552 | |||||||||||||||||||||
4.0% Senior Notes due 2026 | 795 | 795 | |||||||||||||||||||||
3.45% Senior Notes due 2026 | 124 | 124 | |||||||||||||||||||||
2.90% Senior Notes due 2027 | 694 | 694 | |||||||||||||||||||||
3.375% Senior Notes due 2028 | 496 | 496 | |||||||||||||||||||||
3.70% Senior Notes due 2028 | 494 | 494 | |||||||||||||||||||||
4.20% Senior Notes due 2029 | 495 | 495 | |||||||||||||||||||||
7.875% Senior Debentures due 2030 | 830 | 830 | |||||||||||||||||||||
4.95% Senior Notes due 2031 | 1,227 | 1,226 | |||||||||||||||||||||
4.20% Senior Notes due 2032 | 975 | 975 | |||||||||||||||||||||
5.50% Senior Debentures due 2033 | 427 | 427 | |||||||||||||||||||||
4.85% Senior Debentures due 2034 | 87 | 87 | |||||||||||||||||||||
6.875% Senior Debentures due 2036 | 1,071 | 1,071 | |||||||||||||||||||||
6.75% Senior Debentures due 2037 | 75 | 75 | |||||||||||||||||||||
5.90% Senior Notes due 2040 | 298 | 298 | |||||||||||||||||||||
4.50% Senior Debentures due 2042 | 45 | 45 | |||||||||||||||||||||
4.85% Senior Notes due 2042 | 489 | 488 | |||||||||||||||||||||
4.375% Senior Debentures due 2043 | 1,132 | 1,130 | |||||||||||||||||||||
4.875% Senior Debentures due 2043 | 18 | 18 | |||||||||||||||||||||
5.85% Senior Debentures due 2043 | 1,234 | 1,233 | |||||||||||||||||||||
5.25% Senior Debentures due 2044 | 345 | 345 | |||||||||||||||||||||
4.90% Senior Notes due 2044 | 541 | 541 | |||||||||||||||||||||
4.60% Senior Notes due 2045 | 590 | 590 | |||||||||||||||||||||
4.95% Senior Notes due 2050 | 946 | 946 | |||||||||||||||||||||
6.25% Junior Subordinated Debentures due 2057 | 643 | 643 | |||||||||||||||||||||
6.375% Junior Subordinated Debentures due 2062 | 989 | 989 | |||||||||||||||||||||
Other bank borrowings | 58 | 55 | |||||||||||||||||||||
Obligations under finance leases | 8 | 10 | |||||||||||||||||||||
Total debt (a) | 15,853 | 15,846 | |||||||||||||||||||||
Less current portion | 240 | 239 | |||||||||||||||||||||
Total long-term debt, net of current portion | $ | 15,613 | $ | 15,607 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Receivables, net | $ | 254 | $ | 244 | |||||||
Other current assets | 101 | 61 | |||||||||
Goodwill | 1,285 | 1,285 | |||||||||
Intangible assets | 2,832 | 2,832 | |||||||||
Net property and equipment | 157 | 145 | |||||||||
Other assets | 31 | 29 | |||||||||
Valuation allowance for carrying value | (980 | ) | — | ||||||||
Total Assets | $ | 3,680 | $ | 4,596 | |||||||
Current portion of long-term debt | $ | 10 | $ | 10 | |||||||
Other current liabilities | 144 | 145 | |||||||||
Long-term debt | 1,355 | 1,335 | |||||||||
Deferred income tax liabilities | 1,013 | 998 | |||||||||
Other liabilities | 98 | 118 | |||||||||
Total Liabilities | $ | 2,620 | $ | 2,606 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Term Loan due October 2023, net of discount | $ | 947 | $ | 955 | |||||||
7.250% Senior Notes due November 2024 | 400 | 400 | |||||||||
Revolving Credit Facility | 36 | 10 | |||||||||
Deferred financing costs | (18 | ) | (20 | ) | |||||||
Total long-term debt, including current portion | $ | 1,365 | $ | 1,345 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Acquired program rights | $ | 2,087 | $ | 1,773 | |||||||
Acquired television library | 99 | — | |||||||||
Internally produced programming: | |||||||||||
Released | 1,799 | 1,746 | |||||||||
In process and other | 601 | 298 | |||||||||
Publishing, primarily finished goods | 58 | 49 | |||||||||
Total programming and other inventory | 4,644 | 3,866 | |||||||||
Less current portion | 1,830 | 1,427 | |||||||||
Total noncurrent programming and other inventory | $ | 2,814 | $ | 2,439 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Receivables | $ | 112 | $ | 113 | |||||||
Other assets (Receivables, noncurrent) | 20 | 35 | |||||||||
Total amounts due from Viacom Inc. | $ | 132 | $ | 148 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Commercial paper | $ | 590 | $ | 450 | |||||||
Senior debt (1.95% - 7.875% due 2017 - 2045) (a) | 9,039 | 8,850 | |||||||||
Obligations under capital leases | 60 | 75 | |||||||||
Total debt | 9,689 | 9,375 | |||||||||
Less commercial paper | 590 | 450 | |||||||||
Less current portion of long-term debt | 19 | 23 | |||||||||
Total long-term debt, net of current portion | $ | 9,080 | $ | 8,902 |
Pension Benefits | Postretirement Benefits | ||||||||||||||
Three Months Ended September 30, | 2017 | 2016 | 2017 | 2016 | |||||||||||
Components of net periodic cost: | |||||||||||||||
Service cost | $ | 7 | $ | 7 | $ | — | $ | — | |||||||
Interest cost | 48 | 54 | 4 | 5 | |||||||||||
Expected return on plan assets | (50 | ) | (56 | ) | — | — | |||||||||
Amortization of actuarial loss (gain) (a) | 26 | 21 | (5 | ) | (5 | ) | |||||||||
Net periodic cost | $ | 31 | $ | 26 | $ | (1 | ) | $ | — |
Pension Benefits | Postretirement Benefits | ||||||||||||||
Nine Months Ended September 30, | 2017 | 2016 | 2017 | 2016 | |||||||||||
Components of net periodic cost: | |||||||||||||||
Service cost | $ | 22 | $ | 22 | $ | — | $ | — | |||||||
Interest cost | 143 | 161 | 13 | 15 | |||||||||||
Expected return on plan assets | (151 | ) | (170 | ) | — | — | |||||||||
Amortization of actuarial loss (gain) (a) | 77 | 64 | (16 | ) | (16 | ) | |||||||||
Net periodic cost | $ | 91 | $ | 77 | $ | (3 | ) | $ | (1 | ) |
Cumulative Translation Adjustments | Net Actuarial Loss and Prior Service Cost | Accumulated Other Comprehensive Loss | |||||||||||
At December 31, 2016 | $ | 151 | $ | (918 | ) | $ | (767 | ) | |||||
Other comprehensive income before reclassifications | 4 | — | 4 | ||||||||||
Reclassifications to net earnings | — | 37 | (a) | 37 | |||||||||
Net other comprehensive income | 4 | 37 | 41 | ||||||||||
At September 30, 2017 | $ | 155 | $ | (881 | ) | $ | (726 | ) |
Cumulative Translation Adjustments | Net Actuarial Loss and Prior Service Cost | Accumulated Other Comprehensive Loss | |||||||||||
At December 31, 2015 | $ | 152 | $ | (922 | ) | $ | (770 | ) | |||||
Other comprehensive income before reclassifications | 2 | — | 2 | ||||||||||
Reclassifications to net earnings | — | 29 | (a) | 29 | |||||||||
Net other comprehensive income | 2 | 29 | 31 | ||||||||||
At September 30, 2016 | $ | 154 | $ | (893 | ) | $ | (739 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Provision for income taxes, including interest and before other discrete items | $ | (187 | ) | $ | (207 | ) | $ | (548 | ) | $ | (581 | ) | |||
Excess tax benefits from stock-based compensation (a) | 10 | — | 41 | — | |||||||||||
Other discrete items (b) | 5 | 62 | 28 | 57 | |||||||||||
Provision for income taxes | $ | (172 | ) | $ | (145 | ) | $ | (479 | ) | $ | (524 | ) | |||
Effective income tax rate | 28.4 | % | 23.2 | % | 26.7 | % | 28.4 | % |
Balance at | 2017 | Balance at | |||||||||||||||
December 31, 2016 | Settlements | September 30, 2017 | |||||||||||||||
Entertainment | $ | 20 | $ | (12 | ) | $ | 8 | ||||||||||
Cable Networks | 4 | (2 | ) | 2 | |||||||||||||
Publishing | 1 | (1 | ) | — | |||||||||||||
Local Media | 12 | (5 | ) | 7 | |||||||||||||
Corporate | 2 | (1 | ) | 1 | |||||||||||||
Total | $ | 39 | $ | (21 | ) | $ | 18 |
Balance at | 2016 | 2016 | Balance at | ||||||||||||||||||||
December 31, 2015 | Charges | Settlements | December 31, 2016 | ||||||||||||||||||||
Entertainment | $ | 16 | $ | 16 | $ | (12 | ) | $ | 20 | ||||||||||||||
Cable Networks | — | 4 | — | 4 | |||||||||||||||||||
Publishing | — | 1 | — | 1 | |||||||||||||||||||
Local Media | 11 | 6 | (5 | ) | 12 | ||||||||||||||||||
Corporate | — | 3 | (1 | ) | 2 | ||||||||||||||||||
Total | $ | 27 | $ | 30 | $ | (18 | ) | $ | 39 |
Three Months Ended | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
2023 | 2022 | Financial Statement Account | ||||||||||||||||||||||||
Non-designated foreign exchange contracts | $ | 1 | $ | 2 | Other items, net |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | Financial Statement Account | ||||||||||||
Non-designated foreign exchange contracts | $ | (9 | ) | $ | 4 | $ | (29 | ) | $ | 13 | Other items, net |
At September 30, 2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Foreign currency hedges | $ | — | $ | 6 | $ | — | $ | 6 | |||||||
Total Assets | $ | — | $ | 6 | $ | — | $ | 6 | |||||||
Liabilities: | |||||||||||||||
Deferred compensation | $ | — | $ | 347 | $ | — | $ | 347 | |||||||
Foreign currency hedges | — | 11 | — | 11 | |||||||||||
Total Liabilities | $ | — | $ | 358 | $ | — | $ | 358 |
At December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Foreign currency hedges | $ | — | $ | 34 | $ | — | $ | 34 | |||||||
Total Assets | $ | — | $ | 34 | $ | — | $ | 34 | |||||||
Liabilities: | |||||||||||||||
Deferred compensation | $ | — | $ | 324 | $ | — | $ | 324 | |||||||
Foreign currency hedges | — | 1 | — | 1 | |||||||||||
Total Liabilities | $ | — | $ | 325 | $ | — | $ | 325 |
At | At | ||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Foreign currency hedges | $ | 37 | $ | 39 | |||||||||||||||||||||||||||||||
Total Assets | $ | 37 | $ | 39 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation | $ | 340 | $ | 336 | |||||||||||||||||||||||||||||||
Foreign currency hedges | 76 | 83 | |||||||||||||||||||||||||||||||||
Total Liabilities | $ | 416 | $ | 419 |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Total assets | $ | 2,102 | $ | 1,961 | |||||||||||||||||||
Total liabilities | $ | 391 | $ | 328 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues | $ | 145 | $ | 103 | |||||||||||||||||||
Operating loss | $ | (31) | $ | (28) |
Continuing Operations | Discontinued Operations | ||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Translation Adjustments | Net Actuarial Loss and Prior Service Cost | Other Comprehensive Income (Loss) (a) | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2022 | $ | (680) | $ | (1,097) | $ | (30) | $ | (1,807) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 52 | — | 2 | 54 | |||||||||||||||||||||||||||||||||||||||||||
Reclassifications to net loss | — | 11 | (b) | — | 11 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 52 | 11 | 2 | 65 | |||||||||||||||||||||||||||||||||||||||||||
At March 31, 2023 | $ | (628) | $ | (1,086) | $ | (28) | $ | (1,742) |
Continuing Operations | Discontinued Operations | ||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Translation Adjustments | Net Actuarial Loss and Prior Service Cost | Other Comprehensive Income (Loss) (a) | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | $ | (445) | $ | (1,434) | $ | (23) | $ | (1,902) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (40) | — | 2 | (38) | |||||||||||||||||||||||||||||||||||||||||||
Reclassifications to net earnings | — | 16 | (b) | — | 16 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (40) | 16 | 2 | (22) | |||||||||||||||||||||||||||||||||||||||||||
At March 31, 2022 | $ | (485) | $ | (1,418) | $ | (21) | $ | (1,924) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
Three Months Ended March 31, | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Components of net periodic cost (a): | |||||||||||||||||||||||
Interest cost | $ | 51 | $ | 38 | $ | 3 | $ | 2 | |||||||||||||||
Expected return on plan assets | (32) | (43) | — | — | |||||||||||||||||||
Amortization of actuarial loss (gain) (b) | 21 | 24 | (4) | (3) | |||||||||||||||||||
Net periodic cost | $ | 40 | $ | 19 | $ | (1) | $ | (1) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Entertainment | $ | 1,815 | $ | 1,949 | $ | 6,346 | $ | 6,483 | |||||||
Cable Networks | 840 | 598 | 1,954 | 1,659 | |||||||||||
Publishing | 228 | 226 | 595 | 558 | |||||||||||
Local Media | 397 | 409 | 1,218 | 1,253 | |||||||||||
Corporate/Eliminations | (109 | ) | (98 | ) | (342 | ) | (305 | ) | |||||||
Total Revenues | $ | 3,171 | $ | 3,084 | $ | 9,771 | $ | 9,648 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Advertising | $ | 2,256 | $ | 2,521 | |||||||||||||||||||
Affiliate and subscription | 2,067 | 2,098 | |||||||||||||||||||||
Licensing and other | 870 | 1,026 | |||||||||||||||||||||
TV Media | 5,193 | 5,645 | |||||||||||||||||||||
Advertising | 398 | 347 | |||||||||||||||||||||
Subscription | 1,112 | 742 | |||||||||||||||||||||
Direct-to-Consumer | 1,510 | 1,089 | |||||||||||||||||||||
Advertising | 5 | 2 | |||||||||||||||||||||
Theatrical | 127 | 131 | |||||||||||||||||||||
Licensing and other | 456 | 491 | |||||||||||||||||||||
Filmed Entertainment | 588 | 624 | |||||||||||||||||||||
Eliminations | (26) | (30) | |||||||||||||||||||||
Total Revenues | $ | 7,265 | $ | 7,328 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Intercompany Revenues: | |||||||||||||||||||||||
TV Media | $ | 13 | $ | 11 | |||||||||||||||||||
Filmed Entertainment | 13 | 19 | |||||||||||||||||||||
Total Intercompany Revenues | $ | 26 | $ | 30 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Intercompany Revenues: | |||||||||||||||
Entertainment | $ | 111 | $ | 102 | $ | 348 | $ | 316 | |||||||
Local Media | 4 | 2 | 10 | 6 | |||||||||||
Total Intercompany Revenues | $ | 115 | $ | 104 | $ | 358 | $ | 322 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment Operating Income (Loss): | |||||||||||||||
Entertainment | $ | 345 | $ | 348 | $ | 1,089 | $ | 1,148 | |||||||
Cable Networks | 294 | 285 | 795 | 740 | |||||||||||
Publishing | 46 | 44 | 88 | 83 | |||||||||||
Local Media | 105 | 122 | 355 | 402 | |||||||||||
Corporate | (83 | ) | (78 | ) | (247 | ) | (245 | ) | |||||||
Total Segment Operating Income | 707 | 721 | 2,080 | 2,128 | |||||||||||
Other operating items, net (a) | — | — | — | 9 | |||||||||||
Operating income | 707 | 721 | 2,080 | 2,137 | |||||||||||
Interest expense | (116 | ) | (104 | ) | (336 | ) | (304 | ) | |||||||
Interest income | 17 | 7 | 45 | 22 | |||||||||||
Loss on early extinguishment of debt | (5 | ) | — | (5 | ) | — | |||||||||
Other items, net | 3 | — | 9 | (7 | ) | ||||||||||
Earnings from continuing operations before income taxes and equity in loss of investee companies | 606 | 624 | 1,793 | 1,848 | |||||||||||
Provision for income taxes | (172 | ) | (145 | ) | (479 | ) | (524 | ) | |||||||
Equity in loss of investee companies, net of tax | (16 | ) | (13 | ) | (45 | ) | (43 | ) | |||||||
Net earnings from continuing operations | 418 | 466 | 1,269 | 1,281 | |||||||||||
Net earnings (loss) from discontinued operations, net of tax | 174 | 12 | (871 | ) | 93 | ||||||||||
Net earnings | $ | 592 | $ | 478 | $ | 398 | $ | 1,374 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Adjusted OIBDA: | |||||||||||||||||||||||
TV Media | $ | 1,306 | $ | 1,544 | |||||||||||||||||||
Direct-to-Consumer | (511) | (456) | |||||||||||||||||||||
Filmed Entertainment | (99) | (37) | |||||||||||||||||||||
Corporate/Eliminations | (109) | (104) | |||||||||||||||||||||
Stock-based compensation (a) | (39) | (34) | |||||||||||||||||||||
Depreciation and amortization | (100) | (96) | |||||||||||||||||||||
Programming charges | (1,674) | — | |||||||||||||||||||||
Restructuring and other corporate matters | — | (57) | |||||||||||||||||||||
Gain on dispositions | — | 15 | |||||||||||||||||||||
Operating income (loss) | (1,226) | 775 | |||||||||||||||||||||
Interest expense | (226) | (240) | |||||||||||||||||||||
Interest income | 35 | 21 | |||||||||||||||||||||
Loss on extinguishment of debt | — | (73) | |||||||||||||||||||||
Other items, net | (46) | (13) | |||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies | (1,463) | 470 | |||||||||||||||||||||
Benefit (provision) for income taxes | 381 | (34) | |||||||||||||||||||||
Equity in loss of investee companies, net of tax | (75) | (37) | |||||||||||||||||||||
Net earnings (loss) from continuing operations | (1,157) | 399 | |||||||||||||||||||||
Net earnings from discontinued operations, net of tax | 45 | 42 | |||||||||||||||||||||
Net earnings (loss) (Paramount and noncontrolling interests) | (1,112) | 441 | |||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (6) | (8) | |||||||||||||||||||||
Net earnings (loss) attributable to Paramount | $ | (1,118) | $ | 433 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Depreciation and Amortization: | |||||||||||||||
Entertainment | $ | 29 | $ | 28 | $ | 85 | $ | 88 | |||||||
Cable Networks | 5 | 6 | 17 | 17 | |||||||||||
Publishing | 2 | 1 | 5 | 4 | |||||||||||
Local Media | 11 | 11 | 34 | 33 | |||||||||||
Corporate | 8 | 8 | 25 | 26 | |||||||||||
Total Depreciation and Amortization | $ | 55 | $ | 54 | $ | 166 | $ | 168 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Stock-based Compensation: | |||||||||||||||
Entertainment | $ | 16 | $ | 16 | $ | 48 | $ | 47 | |||||||
Cable Networks | 3 | 3 | 9 | 9 | |||||||||||
Publishing | 1 | 1 | 3 | 3 | |||||||||||
Local Media | 3 | 3 | 9 | 9 | |||||||||||
Corporate | 21 | 19 | 60 | 55 | |||||||||||
Total Stock-based Compensation | $ | 44 | $ | 42 | $ | 129 | $ | 123 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Capital Expenditures: | |||||||||||||||
Entertainment | $ | 25 | $ | 23 | $ | 63 | $ | 60 | |||||||
Cable Networks | 5 | 4 | 12 | 8 | |||||||||||
Publishing | 1 | 1 | 2 | 7 | |||||||||||
Local Media | 8 | 9 | 20 | 20 | |||||||||||
Corporate | 5 | 5 | 15 | 16 | |||||||||||
Total Capital Expenditures | $ | 44 | $ | 42 | $ | 112 | $ | 111 |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Assets: | |||||||||||
Entertainment | $ | 12,149 | $ | 11,262 | |||||||
Cable Networks | 3,015 | 2,618 | |||||||||
Publishing | 895 | 880 | |||||||||
Local Media | 4,006 | 4,065 | |||||||||
Corporate/Eliminations | 149 | 817 | |||||||||
Discontinued operations | 3,680 | 4,596 | |||||||||
Total Assets | $ | 23,894 | $ | 24,238 |
Statement of Operations | |||||||||||||||||||
For the Three Months Ended September 30, 2017 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Revenues | $ | 40 | $ | 3 | $ | 3,128 | $ | — | $ | 3,171 | |||||||||
Costs and expenses: | |||||||||||||||||||
Operating | 23 | 1 | 1,838 | — | 1,862 | ||||||||||||||
Selling, general and administrative | 22 | 62 | 463 | — | 547 | ||||||||||||||
Depreciation and amortization | 1 | 6 | 48 | — | 55 | ||||||||||||||
Total costs and expenses | 46 | 69 | 2,349 | — | 2,464 | ||||||||||||||
Operating income (loss) | (6 | ) | (66 | ) | 779 | — | 707 | ||||||||||||
Interest (expense) income, net | (129 | ) | (123 | ) | 153 | — | (99 | ) | |||||||||||
Loss on early extinguishment of debt | (5 | ) | — | — | — | (5 | ) | ||||||||||||
Other items, net | — | (8 | ) | 11 | — | 3 | |||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (140 | ) | (197 | ) | 943 | — | 606 | ||||||||||||
Benefit (provision) for income taxes | 43 | 62 | (277 | ) | — | (172 | ) | ||||||||||||
Equity in earnings (loss) of investee companies, net of tax | 689 | 369 | (16 | ) | (1,058 | ) | (16 | ) | |||||||||||
Net earnings from continuing operations | 592 | 234 | 650 | (1,058 | ) | 418 | |||||||||||||
Net earnings from discontinued operations, net of tax | — | — | 174 | — | 174 | ||||||||||||||
Net earnings | $ | 592 | $ | 234 | $ | 824 | $ | (1,058 | ) | $ | 592 | ||||||||
Total comprehensive income | $ | 607 | $ | 229 | $ | 830 | $ | (1,059 | ) | $ | 607 |
Statement of Operations | |||||||||||||||||||
For the Nine Months Ended September 30, 2017 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Revenues | $ | 124 | $ | 8 | $ | 9,639 | $ | — | $ | 9,771 | |||||||||
Costs and expenses: | |||||||||||||||||||
Operating | 69 | 4 | 5,867 | — | 5,940 | ||||||||||||||
Selling, general and administrative | 65 | 194 | 1,326 | — | 1,585 | ||||||||||||||
Depreciation and amortization | 3 | 18 | 145 | — | 166 | ||||||||||||||
Total costs and expenses | 137 | 216 | 7,338 | — | 7,691 | ||||||||||||||
Operating income (loss) | (13 | ) | (208 | ) | 2,301 | — | 2,080 | ||||||||||||
Interest (expense) income, net | (378 | ) | (360 | ) | 447 | — | (291 | ) | |||||||||||
Loss on early extinguishment of debt | (5 | ) | — | — | — | (5 | ) | ||||||||||||
Other items, net | 1 | (33 | ) | 41 | — | 9 | |||||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (395 | ) | (601 | ) | 2,789 | — | 1,793 | ||||||||||||
Benefit (provision) for income taxes | 120 | 184 | (783 | ) | — | (479 | ) | ||||||||||||
Equity in earnings (loss) of investee companies, net of tax | 673 | 1,062 | (45 | ) | (1,735 | ) | (45 | ) | |||||||||||
Net earnings from continuing operations | 398 | 645 | 1,961 | (1,735 | ) | 1,269 | |||||||||||||
Net loss from discontinued operations, net of tax | — | — | (871 | ) | — | (871 | ) | ||||||||||||
Net earnings | $ | 398 | $ | 645 | $ | 1,090 | $ | (1,735 | ) | $ | 398 | ||||||||
Total comprehensive income | $ | 439 | $ | 633 | $ | 1,111 | $ | (1,744 | ) | $ | 439 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid for interest | $ | 275 | $ | 292 | |||||||
Cash paid (received) for income taxes: | |||||||||||
Continuing operations | $ | (8) | $ | 45 | |||||||
Discontinued operations | $ | 2 | $ | 5 | |||||||
Noncash additions to operating lease assets | $ | 58 | $ | 68 |
Statement of Operations | |||||||||||||||||||
For the Three Months Ended September 30, 2016 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Revenues | $ | 42 | $ | 3 | $ | 3,039 | $ | — | $ | 3,084 | |||||||||
Costs and expenses: | |||||||||||||||||||
Operating | 16 | 1 | 1,771 | — | 1,788 | ||||||||||||||
Selling, general and administrative | 20 | 62 | 439 | — | 521 | ||||||||||||||
Depreciation and amortization | 2 | 6 | 46 | — | 54 | ||||||||||||||
Total costs and expenses | 38 | 69 | 2,256 | — | 2,363 | ||||||||||||||
Operating income (loss) | 4 | (66 | ) | 783 | — | 721 | |||||||||||||
Interest (expense) income, net | (129 | ) | (109 | ) | 141 | — | (97 | ) | |||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (125 | ) | (175 | ) | 924 | — | 624 | ||||||||||||
Benefit (provision) for income taxes | 43 | 60 | (248 | ) | — | (145 | ) | ||||||||||||
Equity in earnings (loss) of investee companies, net of tax | 560 | 327 | (13 | ) | (887 | ) | (13 | ) | |||||||||||
Net earnings from continuing operations | 478 | 212 | 663 | (887 | ) | 466 | |||||||||||||
Net earnings (loss) from discontinued operations, net of tax | — | (1 | ) | 13 | — | 12 | |||||||||||||
Net earnings | $ | 478 | $ | 211 | $ | 676 | $ | (887 | ) | $ | 478 | ||||||||
Total comprehensive income | $ | 489 | $ | 215 | $ | 675 | $ | (890 | ) | $ | 489 |
Statement of Operations | |||||||||||||||||||
For the Nine Months Ended September 30, 2016 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Revenues | $ | 125 | $ | 9 | $ | 9,514 | $ | — | $ | 9,648 | |||||||||
Costs and expenses: | |||||||||||||||||||
Operating | 48 | 4 | 5,766 | — | 5,818 | ||||||||||||||
Selling, general and administrative | 62 | 194 | 1,278 | — | 1,534 | ||||||||||||||
Depreciation and amortization | 4 | 17 | 147 | — | 168 | ||||||||||||||
Other operating items, net | — | — | (9 | ) | — | (9 | ) | ||||||||||||
Total costs and expenses | 114 | 215 | 7,182 | — | 7,511 | ||||||||||||||
Operating income (loss) | 11 | (206 | ) | 2,332 | — | 2,137 | |||||||||||||
Interest (expense) income, net | (377 | ) | (319 | ) | 414 | — | (282 | ) | |||||||||||
Other items, net | (2 | ) | 3 | (8 | ) | — | (7 | ) | |||||||||||
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies | (368 | ) | (522 | ) | 2,738 | — | 1,848 | ||||||||||||
Benefit (provision) for income taxes | 120 | 170 | (814 | ) | — | (524 | ) | ||||||||||||
Equity in earnings (loss) of investee companies, net of tax | 1,622 | 876 | (43 | ) | (2,498 | ) | (43 | ) | |||||||||||
Net earnings from continuing operations | 1,374 | 524 | 1,881 | (2,498 | ) | 1,281 | |||||||||||||
Net earnings (loss) from discontinued operations, net of tax | — | (1 | ) | 94 | — | 93 | |||||||||||||
Net earnings | $ | 1,374 | $ | 523 | $ | 1,975 | $ | (2,498 | ) | $ | 1,374 | ||||||||
Total comprehensive income | $ | 1,405 | $ | 540 | $ | 1,965 | $ | (2,505 | ) | $ | 1,405 |
Balance Sheet | |||||||||||||||||||
At September 30, 2017 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 18 | $ | — | $ | 126 | $ | — | $ | 144 | |||||||||
Receivables, net | 24 | 1 | 3,573 | — | 3,598 | ||||||||||||||
Programming and other inventory | 3 | 3 | 1,824 | — | 1,830 | ||||||||||||||
Prepaid expenses and other current assets | 8 | 25 | 370 | (36 | ) | 367 | |||||||||||||
Current assets of discontinued operations | — | — | 355 | — | 355 | ||||||||||||||
Total current assets | 53 | 29 | 6,248 | (36 | ) | 6,294 | |||||||||||||
Property and equipment | 48 | 207 | 2,746 | — | 3,001 | ||||||||||||||
Less accumulated depreciation and amortization | 27 | 158 | 1,608 | — | 1,793 | ||||||||||||||
Net property and equipment | 21 | 49 | 1,138 | — | 1,208 | ||||||||||||||
Programming and other inventory | 3 | 5 | 2,806 | — | 2,814 | ||||||||||||||
Goodwill | 98 | 62 | 4,731 | — | 4,891 | ||||||||||||||
Intangible assets | — | — | 2,617 | — | 2,617 | ||||||||||||||
Investments in consolidated subsidiaries | 45,155 | 14,915 | — | (60,070 | ) | — | |||||||||||||
Other assets | 154 | 8 | 2,583 | — | 2,745 | ||||||||||||||
Intercompany | — | 1,331 | 28,353 | (29,684 | ) | — | |||||||||||||
Assets of discontinued operations | — | — | 3,325 | — | 3,325 | ||||||||||||||
Total Assets | $ | 45,484 | $ | 16,399 | $ | 51,801 | $ | (89,790 | ) | $ | 23,894 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Accounts payable | $ | 1 | $ | 3 | $ | 229 | $ | — | $ | 233 | |||||||||
Participants’ share and royalties payable | — | — | 997 | — | 997 | ||||||||||||||
Program rights | 4 | 3 | 502 | — | 509 | ||||||||||||||
Commercial paper | 590 | — | — | — | 590 | ||||||||||||||
Current portion of long-term debt | 2 | — | 17 | — | 19 | ||||||||||||||
Accrued expenses and other current liabilities | 374 | 219 | 993 | (36 | ) | 1,550 | |||||||||||||
Current liabilities of discontinued operations | — | — | 154 | — | 154 | ||||||||||||||
Total current liabilities | 971 | 225 | 2,892 | (36 | ) | 4,052 | |||||||||||||
Long-term debt | 8,991 | — | 89 | — | 9,080 | ||||||||||||||
Other liabilities | 2,844 | 237 | 2,221 | — | 5,302 | ||||||||||||||
Liabilities of discontinued operations | — | — | 2,466 | — | 2,466 | ||||||||||||||
Intercompany | 29,684 | — | — | (29,684 | ) | — | |||||||||||||
Stockholders’ Equity: | |||||||||||||||||||
Preferred stock | — | — | 126 | (126 | ) | — | |||||||||||||
Common stock | 1 | 123 | 590 | (713 | ) | 1 | |||||||||||||
Additional paid-in capital | 43,830 | — | 60,894 | (60,894 | ) | 43,830 | |||||||||||||
Retained earnings (accumulated deficit) | (18,859 | ) | 16,128 | (12,748 | ) | (3,380 | ) | (18,859 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (726 | ) | 17 | 71 | (88 | ) | (726 | ) | |||||||||||
24,246 | 16,268 | 48,933 | (65,201 | ) | 24,246 | ||||||||||||||
Less treasury stock, at cost | 21,252 | 331 | 4,800 | (5,131 | ) | 21,252 | |||||||||||||
Total Stockholders’ Equity | 2,994 | 15,937 | 44,133 | (60,070 | ) | 2,994 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 45,484 | $ | 16,399 | $ | 51,801 | $ | (89,790 | ) | $ | 23,894 |
Balance Sheet | |||||||||||||||||||
At December 31, 2016 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 321 | $ | — | $ | 277 | $ | — | $ | 598 | |||||||||
Receivables, net | 27 | 2 | 3,285 | — | 3,314 | ||||||||||||||
Programming and other inventory | 3 | 3 | 1,421 | — | 1,427 | ||||||||||||||
Prepaid expenses and other current assets | 102 | 55 | 297 | (35 | ) | 419 | |||||||||||||
Current assets of discontinued operations | — | — | 305 | — | 305 | ||||||||||||||
Total current assets | 453 | 60 | 5,585 | (35 | ) | 6,063 | |||||||||||||
Property and equipment | 47 | 201 | 2,687 | — | 2,935 | ||||||||||||||
Less accumulated depreciation and amortization | 25 | 140 | 1,529 | — | 1,694 | ||||||||||||||
Net property and equipment | 22 | 61 | 1,158 | — | 1,241 | ||||||||||||||
Programming and other inventory | 5 | 7 | 2,427 | — | 2,439 | ||||||||||||||
Goodwill | 98 | 62 | 4,704 | — | 4,864 | ||||||||||||||
Intangible assets | — | — | 2,633 | — | 2,633 | ||||||||||||||
Investments in consolidated subsidiaries | 44,473 | 13,853 | — | (58,326 | ) | — | |||||||||||||
Other assets | 150 | 8 | 2,549 | — | 2,707 | ||||||||||||||
Intercompany | — | 1,785 | 26,976 | (28,761 | ) | — | |||||||||||||
Assets of discontinued operations | — | 3 | 4,288 | — | 4,291 | ||||||||||||||
Total Assets | $ | 45,201 | $ | 15,839 | $ | 50,320 | $ | (87,122 | ) | $ | 24,238 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Accounts payable | $ | 1 | $ | 3 | $ | 144 | $ | — | $ | 148 | |||||||||
Participants’ share and royalties payable | — | — | 1,024 | — | 1,024 | ||||||||||||||
Program rights | 4 | 4 | 282 | — | 290 | ||||||||||||||
Commercial paper | 450 | — | — | — | 450 | ||||||||||||||
Current portion of long-term debt | 6 | — | 17 | — | 23 | ||||||||||||||
Accrued expenses and other current liabilities | 421 | 284 | 948 | (35 | ) | 1,618 | |||||||||||||
Current liabilities of discontinued operations | — | — | 155 | — | 155 | ||||||||||||||
Total current liabilities | 882 | 291 | 2,570 | (35 | ) | 3,708 | |||||||||||||
Long-term debt | 8,798 | — | 104 | — | 8,902 | ||||||||||||||
Other liabilities | 3,071 | 244 | 2,173 | — | 5,488 | ||||||||||||||
Liabilities of discontinued operations | — | — | 2,451 | — | 2,451 | ||||||||||||||
Intercompany | 28,761 | — | — | (28,761 | ) | — | |||||||||||||
Stockholders’ Equity: | |||||||||||||||||||
Preferred stock | — | — | 126 | (126 | ) | — | |||||||||||||
Common stock | 1 | 123 | 590 | (713 | ) | 1 | |||||||||||||
Additional paid-in capital | 43,913 | — | 60,894 | (60,894 | ) | 43,913 | |||||||||||||
Retained earnings (accumulated deficit) | (19,257 | ) | 15,483 | (13,838 | ) | (1,645 | ) | (19,257 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (767 | ) | 29 | 50 | (79 | ) | (767 | ) | |||||||||||
23,890 | 15,635 | 47,822 | (63,457 | ) | 23,890 | ||||||||||||||
Less treasury stock, at cost | 20,201 | 331 | 4,800 | (5,131 | ) | 20,201 | |||||||||||||
Total Stockholders’ Equity | 3,689 | 15,304 | 43,022 | (58,326 | ) | 3,689 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 45,201 | $ | 15,839 | $ | 50,320 | $ | (87,122 | ) | $ | 24,238 |
Statement of Cash Flows | |||||||||||||||||||
For the Nine Months Ended September 30, 2017 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Net cash flow (used for) provided by operating activities | $ | (851 | ) | $ | (180 | ) | $ | 2,018 | $ | — | $ | 987 | |||||||
Investing Activities: | |||||||||||||||||||
Acquisitions (including acquired television library) | — | — | (258 | ) | — | (258 | ) | ||||||||||||
Capital expenditures | — | (15 | ) | (97 | ) | — | (112 | ) | |||||||||||
Investments in and advances to investee companies | — | — | (67 | ) | — | (67 | ) | ||||||||||||
Proceeds from sale of investments | — | — | 10 | — | 10 | ||||||||||||||
Proceeds from dispositions | — | — | 11 | — | 11 | ||||||||||||||
Other investing activities | 17 | — | — | — | 17 | ||||||||||||||
Net cash flow provided by (used for) investing activities from continuing operations | 17 | (15 | ) | (401 | ) | — | (399 | ) | |||||||||||
Net cash flow provided by (used for) investing activities from discontinued operations | 1 | (4 | ) | (15 | ) | — | (18 | ) | |||||||||||
Net cash flow provided by (used for) investing activities | 18 | (19 | ) | (416 | ) | — | (417 | ) | |||||||||||
Financing Activities: | |||||||||||||||||||
Proceeds from short-term debt borrowings, net | 140 | — | — | — | 140 | ||||||||||||||
Proceeds from issuance of senior notes | 889 | — | — | — | 889 | ||||||||||||||
Repayment of senior notes | (701 | ) | — | — | — | (701 | ) | ||||||||||||
Proceeds from debt borrowings of CBS Radio | — | — | 40 | — | 40 | ||||||||||||||
Repayment of debt borrowings of CBS Radio | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Payment of capital lease obligations | — | — | (13 | ) | — | (13 | ) | ||||||||||||
Payment of contingent consideration | — | — | (7 | ) | ��� | (7 | ) | ||||||||||||
Dividends | (224 | ) | — | — | — | (224 | ) | ||||||||||||
Purchase of Company common stock | (1,111 | ) | — | — | — | (1,111 | ) | ||||||||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (89 | ) | — | — | — | (89 | ) | ||||||||||||
Proceeds from exercise of stock options | 81 | — | — | — | 81 | ||||||||||||||
Increase (decrease) in intercompany payables | 1,545 | 199 | (1,744 | ) | — | — | |||||||||||||
Net cash flow provided by (used for) financing activities | 530 | 199 | (1,747 | ) | — | (1,018 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (303 | ) | — | (145 | ) | — | (448 | ) | |||||||||||
Cash and cash equivalents at beginning of period (includes $24 million of discontinued operations cash) | 321 | — | 301 | — | 622 | ||||||||||||||
Cash and cash equivalents at end of period (includes $30 million of discontinued operations cash) | $ | 18 | $ | — | $ | 156 | $ | — | $ | 174 |
Statement of Cash Flows | |||||||||||||||||||
For the Nine Months Ended September 30, 2016 | |||||||||||||||||||
CBS Corp. | CBS Operations Inc. | Non- Guarantor Affiliates | Eliminations | CBS Corp. Consolidated | |||||||||||||||
Net cash flow (used for) provided by operating activities | $ | (696 | ) | $ | (146 | ) | $ | 2,148 | $ | — | $ | 1,306 | |||||||
Investing Activities: | |||||||||||||||||||
Acquisitions | — | — | (51 | ) | — | (51 | ) | ||||||||||||
Capital expenditures | — | (16 | ) | (95 | ) | — | (111 | ) | |||||||||||
Investments in and advances to investee companies | — | — | (44 | ) | — | (44 | ) | ||||||||||||
Proceeds from dispositions | (4 | ) | — | 24 | — | 20 | |||||||||||||
Other investing activities | 7 | — | — | — | 7 | ||||||||||||||
Net cash flow provided by (used for) investing activities from continuing operations | 3 | (16 | ) | (166 | ) | — | (179 | ) | |||||||||||
Net cash flow used for investing activities from discontinued operations | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Net cash flow provided by (used for) investing activities | 3 | (16 | ) | (168 | ) | — | (181 | ) | |||||||||||
Financing Activities: | |||||||||||||||||||
Proceeds from short-term borrowings, net | 33 | — | — | — | 33 | ||||||||||||||
Proceeds from issuance of senior notes | 685 | — | — | — | 685 | ||||||||||||||
Repayment of senior debentures | (199 | ) | — | — | — | (199 | ) | ||||||||||||
Payment of capital lease obligations | — | — | (13 | ) | — | (13 | ) | ||||||||||||
Dividends | (209 | ) | — | — | — | (209 | ) | ||||||||||||
Purchase of Company common stock | (1,534 | ) | — | — | — | (1,534 | ) | ||||||||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (57 | ) | — | — | — | (57 | ) | ||||||||||||
Proceeds from exercise of stock options | 13 | — | — | — | 13 | ||||||||||||||
Excess tax benefit from stock-based compensation | 13 | — | — | — | 13 | ||||||||||||||
Other financing activities | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Increase (decrease) in intercompany payables | 1,736 | 162 | (1,898 | ) | — | — | |||||||||||||
Net cash flow provided by (used for) financing activities | 480 | 162 | (1,911 | ) | — | (1,269 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (213 | ) | — | 69 | — | (144 | ) | ||||||||||||
Cash and cash equivalents at beginning of period (includes $6 million of discontinued operations cash) | 267 | 1 | 55 | — | 323 | ||||||||||||||
Cash and cash equivalents at end of period (includes $1 million of discontinued operations cash) | $ | 54 | $ | 1 | $ | 124 | $ | — | $ | 179 |
Item 2. | Management’s Discussion and Analysis of Results of Operations and Financial Condition. | ||||
(Tabular dollars in millions, except per share amounts) |
Consolidated results of operations | Increase/(Decrease) | ||||||||||||||
Three Months Ended September 30, | 2017 | 2016 | $ | % | |||||||||||
GAAP: | |||||||||||||||
Revenues | $ | 3,171 | $ | 3,084 | $ | 87 | 3 | % | |||||||
Operating income | $ | 707 | $ | 721 | $ | (14 | ) | (2 | )% | ||||||
Net earnings from continuing operations | $ | 418 | $ | 466 | $ | (48 | ) | (10 | )% | ||||||
Net earnings | $ | 592 | $ | 478 | $ | 114 | 24 | % | |||||||
Diluted EPS from continuing operations | $ | 1.03 | $ | 1.04 | $ | (.01 | ) | (1 | )% | ||||||
Diluted EPS | $ | 1.46 | $ | 1.07 | $ | .39 | 36 | % | |||||||
Non-GAAP: (a) | |||||||||||||||
Adjusted net earnings from continuing operations | $ | 421 | $ | 419 | $ | 2 | — | % | |||||||
Adjusted net earnings | $ | 450 | $ | 467 | $ | (17 | ) | (4 | )% | ||||||
Adjusted diluted EPS from continuing operations | $ | 1.04 | $ | .94 | $ | .10 | 11 | % | |||||||
Adjusted diluted EPS | $ | 1.11 | $ | 1.05 | $ | .06 | 6 | % |
Consolidated results of operations | Increase/(Decrease) | |||||||||||||||||||||||||
Three Months Ended March 31, | 2023 | 2022 | $ | % | ||||||||||||||||||||||
GAAP: | ||||||||||||||||||||||||||
Revenues | $ | 7,265 | $ | 7,328 | $ | (63) | (1) | % | ||||||||||||||||||
Operating income (loss) | $ | (1,226) | $ | 775 | $ | (2,001) | n/m | |||||||||||||||||||
Net earnings (loss) from continuing operations attributable to Paramount | $ | (1,163) | $ | 391 | $ | (1,554) | n/m | |||||||||||||||||||
Diluted EPS from continuing operations | $ | (1.81) | $ | .58 | $ | (2.39) | n/m | |||||||||||||||||||
Non-GAAP: (a) | ||||||||||||||||||||||||||
Adjusted OIBDA | $ | 548 | $ | 913 | $ | (365) | (40) | % | ||||||||||||||||||
Adjusted net earnings from continuing operations attributable to Paramount | $ | 72 | $ | 403 | $ | (331) | (82) | % | ||||||||||||||||||
Adjusted diluted EPS from continuing operations | $ | .09 | $ | .60 | $ | (.51) | (85) | % |
Consolidated results of operations | Increase/(Decrease) | ||||||||||||||
Nine Months Ended September 30, | 2017 | 2016 | $ | % | |||||||||||
GAAP: | |||||||||||||||
Revenues | $ | 9,771 | $ | 9,648 | $ | 123 | 1 | % | |||||||
Operating income | $ | 2,080 | $ | 2,137 | $ | (57 | ) | (3 | )% | ||||||
Net earnings from continuing operations | $ | 1,269 | $ | 1,281 | $ | (12 | ) | (1 | )% | ||||||
Net earnings | $ | 398 | $ | 1,374 | $ | (976 | ) | (71 | )% | ||||||
Diluted EPS from continuing operations | $ | 3.10 | $ | 2.82 | $ | .28 | 10 | % | |||||||
Diluted EPS | $ | .97 | $ | 3.02 | $ | (2.05 | ) | (68 | )% | ||||||
Non-GAAP: (a) | |||||||||||||||
Adjusted operating income | $ | 2,080 | $ | 2,128 | $ | (48 | ) | (2 | )% | ||||||
Adjusted net earnings from continuing operations | $ | 1,250 | $ | 1,235 | $ | 15 | 1 | % | |||||||
Adjusted net earnings | $ | 1,318 | $ | 1,364 | $ | (46 | ) | (3 | )% | ||||||
Adjusted diluted EPS from continuing operations | $ | 3.05 | $ | 2.71 | $ | .34 | 13 | % | |||||||
Adjusted diluted EPS | $ | 3.21 | $ | 3.00 | $ | .21 | 7 | % |
Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||
Reported | Extinguishment of Debt | Discrete Tax Item (a) | CBS Radio Adjustments (b) | Adjusted | ||||||||||||||||||||||
Operating income | $ | 707 | $ | — | $ | — | $ | — | $ | 707 | ||||||||||||||||
Interest expense | (116 | ) | — | — | — | (116 | ) | |||||||||||||||||||
Interest income | 17 | — | — | — | 17 | |||||||||||||||||||||
Loss on early extinguishment of debt | (5 | ) | 5 | — | — | — | ||||||||||||||||||||
Other items, net | 3 | — | — | — | 3 | |||||||||||||||||||||
Earnings from continuing operations before income taxes | 606 | 5 | — | — | 611 | |||||||||||||||||||||
Provision for income taxes | (172 | ) | (2 | ) | — | — | (174 | ) | ||||||||||||||||||
Equity in loss of investee companies, net of tax | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||||
Net earnings from continuing operations | 418 | 3 | — | — | 421 | |||||||||||||||||||||
Net earnings from discontinued operations, net of tax | 174 | — | (45 | ) | (100 | ) | 29 | |||||||||||||||||||
Net earnings | $ | 592 | $ | 3 | $ | (45 | ) | $ | (100 | ) | $ | 450 | ||||||||||||||
Diluted EPS from continuing operations | $ | 1.03 | $ | .01 | $ | — | $ | — | $ | 1.04 | ||||||||||||||||
Diluted EPS | $ | 1.46 | $ | .01 | $ | (.11 | ) | $ | (.25 | ) | $ | 1.11 |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Operating income (loss) (GAAP) | $ | (1,226) | $ | 775 | |||||||||||||||||||
Depreciation and amortization | 100 | 96 | |||||||||||||||||||||
Programming charges (a) | 1,674 | — | |||||||||||||||||||||
Restructuring and other corporate matters (a) | — | 57 | |||||||||||||||||||||
Gain on dispositions (a) | — | (15) | |||||||||||||||||||||
Adjusted OIBDA (Non-GAAP) | $ | 548 | $ | 913 |
Three Months Ended September 30, 2016 | ||||||||||||||
Reported | Discrete Tax Items (a) | Adjusted | ||||||||||||
Earnings from continuing operations before income taxes | $ | 624 | $ | — | $ | 624 | ||||||||
Provision for income taxes | (145 | ) | (47 | ) | (192 | ) | ||||||||
Equity in loss of investee companies, net of tax | (13 | ) | — | (13 | ) | |||||||||
Net earnings from continuing operations | 466 | (47 | ) | 419 | ||||||||||
Net earnings from discontinued operations, net of tax | 12 | 36 | 48 | |||||||||||
Net earnings | $ | 478 | $ | (11 | ) | $ | 467 | |||||||
Diluted EPS from continuing operations | $ | 1.04 | $ | (.11 | ) | $ | .94 | |||||||
Diluted EPS | $ | 1.07 | $ | (.02 | ) | $ | 1.05 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) from Continuing Operations Before Income Taxes | Benefit (Provision) for Income Taxes | Net Earnings (Loss) from Continuing Operations Attributable to Paramount | Diluted EPS from Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | (1,463) | $ | 381 | $ | (1,163) | $ | (1.81) | |||||||||||||||||||||||||||||||||||||||
Items affecting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||
Programming charges (a) | 1,674 | (409) | 1,265 | 1.94 | |||||||||||||||||||||||||||||||||||||||||||
Discrete tax items (b) | — | (30) | (30) | (.04) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted (Non-GAAP) | $ | 211 | $ | (58) | $ | 72 | $ | .09 | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Reported | Extinguishment of Debt | Discrete Tax Items (a) | CBS Radio Adjustments (b) | Adjusted | |||||||||||||||||||||||
Operating income | $ | 2,080 | $ | — | $ | — | $ | — | $ | 2,080 | |||||||||||||||||
Interest expense | (336 | ) | — | — | — | (336 | ) | ||||||||||||||||||||
Interest income | 45 | — | — | — | 45 | ||||||||||||||||||||||
Loss on early extinguishment of debt | (5 | ) | 5 | — | — | — | |||||||||||||||||||||
Other items, net | 9 | — | — | — | 9 | ||||||||||||||||||||||
Earnings from continuing operations before income taxes | 1,793 | 5 | — | — | 1,798 | ||||||||||||||||||||||
Provision for income taxes | (479 | ) | (2 | ) | (22 | ) | — | (503 | ) | ||||||||||||||||||
Equity in loss of investee companies, net of tax | (45 | ) | — | — | — | (45 | ) | ||||||||||||||||||||
Net earnings from continuing operations | 1,269 | 3 | (22 | ) | — | 1,250 | |||||||||||||||||||||
Net earnings (loss) from discontinued operations, net of tax | (871 | ) | — | (45 | ) | 984 | 68 | ||||||||||||||||||||
Net earnings | $ | 398 | $ | 3 | $ | (67 | ) | $ | 984 | $ | 1,318 | ||||||||||||||||
Diluted EPS from continuing operations | $ | 3.10 | $ | .01 | $ | (.05 | ) | $ | — | $ | 3.05 | ||||||||||||||||
Diluted EPS | $ | .97 | $ | .01 | $ | (.16 | ) | $ | 2.40 | $ | 3.21 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings from Continuing Operations Before Income Taxes | Provision for Income Taxes | Net Earnings from Continuing Operations Attributable to Paramount | Diluted EPS from Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | 470 | $ | (34) | $ | 391 | $ | .58 | |||||||||||||||||||||||||||||||||||||||
Items affecting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other corporate matters (a) | 57 | (12) | 45 | .07 | |||||||||||||||||||||||||||||||||||||||||||
Gain on dispositions (b) | (15) | 4 | (11) | (.02) | |||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 73 | (17) | 56 | .09 | |||||||||||||||||||||||||||||||||||||||||||
Discrete tax items (c) | — | (78) | (78) | (.12) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted (Non-GAAP) | $ | 585 | $ | (137) | $ | 403 | $ | .60 | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||
Reported | Other Operating Items (a) | Discrete Tax Items (b) | Write-down of Investment (c) | Adjusted | ||||||||||||||||||||
Operating income | $ | 2,137 | $ | (9 | ) | $ | — | $ | — | $ | 2,128 | |||||||||||||
Interest expense | (304 | ) | — | — | — | (304 | ) | |||||||||||||||||
Interest income | 22 | — | — | — | 22 | |||||||||||||||||||
Other items, net | (7 | ) | — | — | — | (7 | ) | |||||||||||||||||
Earnings from continuing operations before income taxes | 1,848 | (9 | ) | — | — | 1,839 | ||||||||||||||||||
Provision for income taxes | (524 | ) | 4 | (47 | ) | — | (567 | ) | ||||||||||||||||
Equity in loss of investee companies, net of tax | (43 | ) | — | — | 6 | (37 | ) | |||||||||||||||||
Net earnings from continuing operations | 1,281 | (5 | ) | (47 | ) | 6 | 1,235 | |||||||||||||||||
Net earnings from discontinued operations, net of tax | 93 | — | 36 | — | 129 | |||||||||||||||||||
Net earnings | $ | 1,374 | $ | (5 | ) | $ | (11 | ) | $ | 6 | $ | 1,364 | ||||||||||||
Diluted EPS from continuing operations | $ | 2.82 | $ | (.01 | ) | $ | (.10 | ) | $ | .01 | $ | 2.71 | ||||||||||||
Diluted EPS | $ | 3.02 | $ | (.01 | ) | $ | (.02 | ) | $ | .01 | $ | 3.00 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Type | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 2,651 | 36 | % | $ | 2,864 | 39 | % | $ | (213) | (7) | % | ||||||||||||||||||||||||||||||||||||||
Affiliate and subscription | 3,179 | 44 | 2,840 | 39 | 339 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Theatrical | 127 | 2 | 131 | 2 | (4) | (3) | ||||||||||||||||||||||||||||||||||||||||||||
Licensing and other | 1,308 | 18 | 1,493 | 20 | (185) | (12) | ||||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 7,265 | 100 | % | $ | 7,328 | 100 | % | $ | (63) | (1) | % |
Three Months Ended September 30, | |||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | |||||||||||||||||||
Revenues by Type | 2017 | 2016 | $ | % | |||||||||||||||||
Advertising | $ | 1,106 | 35 | % | $ | 1,162 | 38 | % | $ | (56 | ) | (5 | )% | ||||||||
Content licensing and distribution | 860 | 27 | 1,108 | 36 | (248 | ) | (22 | ) | |||||||||||||
Affiliate and subscription fees | 1,145 | 36 | 753 | 24 | 392 | 52 | |||||||||||||||
Other | 60 | 2 | 61 | 2 | (1 | ) | (2 | ) | |||||||||||||
Total Revenues | $ | 3,171 | 100 | % | $ | 3,084 | 100 | % | $ | 87 | 3 | % |
Nine Months Ended September 30, | |||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | |||||||||||||||||||
Revenues by Type | 2017 | 2016 | $ | % | |||||||||||||||||
Advertising | $ | 4,008 | 41 | % | $ | 4,492 | 46 | % | $ | (484 | ) | (11 | )% | ||||||||
Content licensing and distribution | 2,761 | 28 | 2,780 | 29 | (19 | ) | (1 | ) | |||||||||||||
Affiliate and subscription fees | 2,835 | 29 | 2,208 | 23 | 627 | 28 | |||||||||||||||
Other | 167 | 2 | 168 | 2 | (1 | ) | (1 | ) | |||||||||||||
Total Revenues | $ | 9,771 | 100 | % | $ | 9,648 | 100 | % | $ | 123 | 1 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
% of Operating Expenses | % of Operating Expenses | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating Expenses by Type | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||
Content costs | $ | 3,895 | 78 | % | $ | 3,831 | 80 | % | $ | 64 | 2 | % | ||||||||||||||||||||||||||||||||||||||
Distribution and other | 1,069 | 22 | 965 | 20 | 104 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Total Operating Expenses | $ | 4,964 | 100 | % | $ | 4,796 | 100 | % | $ | 168 | 4 | % |
Three Months Ended September 30, | |||||||||||||||||||||
% of Operating Expenses | % of Operating Expenses | Increase/(Decrease) | |||||||||||||||||||
Operating Expenses by Type | 2017 | 2016 | $ | % | |||||||||||||||||
Programming | $ | 749 | 40 | % | $ | 500 | 28 | % | $ | 249 | 50 | % | |||||||||
Production | 572 | 31 | 666 | 37 | (94 | ) | (14 | ) | |||||||||||||
Participation, distribution and royalty | 199 | 11 | 291 | 16 | (92 | ) | (32 | ) | |||||||||||||
Other | 342 | 18 | 331 | 19 | 11 | 3 | |||||||||||||||
Total Operating Expenses | $ | 1,862 | 100 | % | $ | 1,788 | 100 | % | $ | 74 | 4 | % |
Nine Months Ended September 30, | |||||||||||||||||||||
% of Operating Expenses | % of Operating Expenses | Increase/(Decrease) | |||||||||||||||||||
Operating Expenses by Type | 2017 | 2016 | $ | % | |||||||||||||||||
Programming | $ | 2,258 | 38 | % | $ | 2,133 | 37 | % | $ | 125 | 6 | % | |||||||||
Production | 1,955 | 33 | 1,933 | 33 | 22 | 1 | |||||||||||||||
Participation, distribution and royalty | 725 | 12 | 788 | 13 | (63 | ) | (8 | ) | |||||||||||||
Other | 1,002 | 17 | 964 | 17 | 38 | 4 | |||||||||||||||
Total Operating Expenses | $ | 5,940 | 100 | % | $ | 5,818 | 100 | % | $ | 122 | 2 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 1,753 | $ | 1,619 | 8 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2017 | % of Revenues | 2016 | % of Revenues | Increase/(Decrease) | |||||||||||||||||||
Selling, general and administrative expenses | $ | 547 | 17 | % | $ | 521 | 17 | % | 5 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2017 | % of Revenues | 2016 | % of Revenues | Increase/(Decrease) | |||||||||||||||||||
Selling, general and administrative expenses | $ | 1,585 | 16 | % | $ | 1,534 | 16 | % | 3 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 100 | $ | 96 | 4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||||
Depreciation and amortization | $ | 55 | $ | 54 | 2 | % | $ | 166 | $ | 168 | (1 | )% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||||
Interest expense | $ | (116 | ) | $ | (104 | ) | 12 | % | $ | (336 | ) | $ | (304 | ) | 11 | % | ||||||||||
Interest income | $ | 17 | $ | 7 | 143 | % | $ | 45 | $ | 22 | 105 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 226 | $ | 240 | (6) | % | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 35 | $ | 21 | 67 | % |
At September 30, | ||||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||||
2017 | Interest Rate | 2016 | Interest Rate | |||||||||||||||
Total long-term debt | $ | 9,039 | 4.43 | % | $ | 8,849 | 4.47 | % | ||||||||||
Commercial paper | $ | 590 | 1.44 | % | $ | 33 | 0.75 | % |
At March 31, | |||||||||||||||||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||||||||||||||||
2023 | Interest Rate | 2022 | Interest Rate | ||||||||||||||||||||||||||||||||
Total notes and debentures | $ | 15,787 | 5.13 | % | $ | 16,727 | 5.09 | % | |||||||||||||||||||||||||||
Other bank borrowings | $ | 58 | 7.48 | % | $ | 65 | 3.50 | % | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||
Other items, net | $ | 3 | $ | — | n/m | $ | 9 | $ | (7 | ) | n/m |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Pension and postretirement benefit costs | $ | (37) | $ | (17) | ||||||||||||||||||||||
Foreign exchange loss | (9) | 1 | ||||||||||||||||||||||||
Other | — | 3 | ||||||||||||||||||||||||
Other items, net | $ | (46) | $ | (13) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | ||||||||||||||||||||
Provision for income taxes, including interest and before other discrete items | $ | (187 | ) | $ | (207 | ) | (10 | )% | $ | (548 | ) | $ | (581 | ) | (6 | )% | |||||||||
Excess tax benefits from stock-based compensation (a) | 10 | — | 41 | — | |||||||||||||||||||||
Other discrete items (b) | 5 | 62 | 28 | 57 | |||||||||||||||||||||
Provision for income taxes | $ | (172 | ) | $ | (145 | ) | 19 | % | $ | (479 | ) | $ | (524 | ) | (9 | )% | |||||||||
Effective income tax rate | 28.4 | % | 23.2 | % | 26.7 | % | 28.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||||
Equity in loss of investee companies, net of tax | $ | (16 | ) | $ | (13 | ) | 23 | % | $ | (45 | ) | $ | (43 | ) | 5 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity in loss of investee companies | $ | (78) | $ | (52) | (50) | % | ||||||||||||||||||||||||||||||||||||||||||||
Tax benefit | 3 | 15 | (80) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in loss of investee companies, net of tax | $ | (75) | $ | (37) | (103) | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) from continuing operations attributable to Paramount | $ | (1,163) | $ | 391 | n/m | |||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $ | (1.81) | $ | .58 | n/m |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||||
Net earnings from continuing operations | $ | 418 | $ | 466 | (10 | )% | $ | 1,269 | $ | 1,281 | (1 | )% | ||||||||||||||
Diluted EPS from continuing operations | $ | 1.03 | $ | 1.04 | (1 | )% | $ | 3.10 | $ | 2.82 | 10 | % |
Three Months Ended September 30, 2017 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 300 | $ | — | $ | 300 | |||||
Costs and expenses: (a) | |||||||||||
Operating | 113 | — | 113 | ||||||||
Selling, general and administrative | 121 | (1 | ) | 120 | |||||||
Benefit from valuation allowance | (100 | ) | — | (100 | ) | ||||||
Total costs and expenses | 134 | (1 | ) | 133 | |||||||
Operating income | 166 | 1 | 167 | ||||||||
Interest expense | (21 | ) | — | (21 | ) | ||||||
Earnings from discontinued operations | 145 | 1 | 146 | ||||||||
Income tax (provision) benefit | (17 | ) | 45 | 28 | |||||||
Net earnings from discontinued operations, net of tax | $ | 128 | $ | 46 | $ | 174 |
Three Months Ended September 30, 2016 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 317 | $ | — | $ | 317 | |||||
Costs and expenses: | |||||||||||
Operating | 110 | — | 110 | ||||||||
Selling, general and administrative | 123 | — | 123 | ||||||||
Depreciation and amortization | 7 | — | 7 | ||||||||
Total costs and expenses | 240 | — | 240 | ||||||||
Operating income | 77 | — | 77 | ||||||||
Other income | 2 | — | 2 | ||||||||
Earnings from discontinued operations | 79 | — | 79 | ||||||||
Income tax provision | (31 | ) | (36 | ) | (67 | ) | |||||
Net earnings (loss) from discontinued operations, net of tax | $ | 48 | $ | (36 | ) | $ | 12 |
Nine Months Ended September 30, 2017 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 856 | $ | — | $ | 856 | |||||
Costs and expenses: (a) | |||||||||||
Operating | 307 | — | 307 | ||||||||
Selling, general and administrative | 372 | (1 | ) | 371 | |||||||
Restructuring charge | 7 | — | 7 | ||||||||
Provision for valuation allowance | 980 | — | 980 | ||||||||
Total costs and expenses | 1,666 | (1 | ) | 1,665 | |||||||
Operating income (loss) | (810 | ) | 1 | (809 | ) | ||||||
Interest expense | (60 | ) | — | (60 | ) | ||||||
Earnings (loss) from discontinued operations | (870 | ) | 1 | (869 | ) | ||||||
Income tax (provision) benefit | (47 | ) | 45 | (2 | ) | ||||||
Net earnings (loss) from discontinued operations, net of tax | $ | (917 | ) | $ | 46 | $ | (871 | ) |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues | $ | 258 | $ | 217 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 151 | 124 | |||||||||||||||||||||
Selling, general and administrative | 45 | 38 | |||||||||||||||||||||
Total costs and expenses (a) | 196 | 162 | |||||||||||||||||||||
Operating income | 62 | 55 | |||||||||||||||||||||
Other items, net | (3) | (1) | |||||||||||||||||||||
Earnings from discontinued operations | 59 | 54 | |||||||||||||||||||||
Provision for income taxes (b) | (14) | (12) | |||||||||||||||||||||
Net earnings from discontinued operations, net of tax | $ | 45 | $ | 42 | |||||||||||||||||||
Nine Months Ended September 30, 2016 | CBS Radio | Other | Total | ||||||||
Revenues | $ | 892 | $ | — | $ | 892 | |||||
Costs and expenses: | |||||||||||
Operating | 298 | — | 298 | ||||||||
Selling, general and administrative | 359 | — | 359 | ||||||||
Depreciation and amortization | 20 | — | 20 | ||||||||
Total costs and expenses | 677 | — | 677 | ||||||||
Operating income | 215 | — | 215 | ||||||||
Other income | 2 | — | 2 | ||||||||
Earnings from discontinued operations | 217 | — | 217 | ||||||||
Income tax provision | (88 | ) | (36 | ) | (124 | ) | |||||
Net earnings (loss) from discontinued operations, net of tax | $ | 129 | $ | (36 | ) | $ | 93 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
TV Media | $ | 5,193 | 71 | % | $ | 5,645 | 77 | % | $ | (452) | (8) | % | |||||||||||||||||||||||||||||
Direct-to-Consumer | 1,510 | 21 | 1,089 | 15 | 421 | 39 | |||||||||||||||||||||||||||||||||||
Filmed Entertainment | 588 | 8 | 624 | 8 | (36) | (6) | |||||||||||||||||||||||||||||||||||
Eliminations | (26) | — | (30) | — | 4 | 13 | |||||||||||||||||||||||||||||||||||
Total Revenues | $ | 7,265 | 100 | % | $ | 7,328 | 100 | % | $ | (63) | (1) | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Increase/(Decrease) | ||||||||||||||||||||||||||
2023 | 2022 | $ | % | |||||||||||||||||||||||
Adjusted OIBDA: | ||||||||||||||||||||||||||
TV Media | $ | 1,306 | $ | 1,544 | $ | (238) | (15) | % | ||||||||||||||||||
Direct-to-Consumer | (511) | (456) | (55) | (12) | ||||||||||||||||||||||
Filmed Entertainment | (99) | (37) | (62) | (168) | ||||||||||||||||||||||
Corporate/Eliminations | (109) | (104) | (5) | (5) | ||||||||||||||||||||||
Stock-based compensation (a) | (39) | (34) | (5) | (15) | ||||||||||||||||||||||
Total Adjusted OIBDA | 548 | 913 | (365) | (40) | ||||||||||||||||||||||
Depreciation and amortization | (100) | (96) | (4) | (4) | ||||||||||||||||||||||
Programming charges | (1,674) | — | (1,674) | n/m | ||||||||||||||||||||||
Restructuring and other corporate matters | — | (57) | 57 | n/m | ||||||||||||||||||||||
Gain on dispositions | — | 15 | (15) | n/m | ||||||||||||||||||||||
Total Operating Income (Loss) | $ | (1,226) | $ | 775 | $ | (2,001) | n/m |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Increase/(Decrease) | 2017 | 2016 | Increase/(Decrease) | |||||||||||||||||||||
Net earnings | $ | 592 | $ | 478 | 24 | % | $ | 398 | $ | 1,374 | (71 | )% | ||||||||||||||
Diluted EPS | $ | 1.46 | $ | 1.07 | 36 | % | $ | .97 | $ | 3.02 | (68 | )% |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Increase/(Decrease) | ||||||||||||||||||||||||||
TV Media | 2023 | 2022 | $ | % | ||||||||||||||||||||||
Advertising | $ | 2,256 | $ | 2,521 | $ | (265) | (11) | % | ||||||||||||||||||
Affiliate and subscription | 2,067 | 2,098 | (31) | (1) | ||||||||||||||||||||||
Licensing and other | 870 | 1,026 | (156) | (15) | ||||||||||||||||||||||
Revenues | $ | 5,193 | $ | 5,645 | $ | (452) | (8) | % | ||||||||||||||||||
Adjusted OIBDA | $ | 1,306 | $ | 1,544 | $ | (238) | (15) | % |
Three Months Ended September 30, | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | ||||||||||||||||||||
2017 | 2016 | $ | % | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Entertainment | $ | 1,815 | 57 | % | $ | 1,949 | 63 | % | $ | (134 | ) | (7 | )% | |||||||||
Cable Networks | 840 | 26 | 598 | 20 | 242 | 40 | ||||||||||||||||
Publishing | 228 | 7 | 226 | 7 | 2 | 1 | ||||||||||||||||
Local Media | 397 | 13 | 409 | 13 | (12 | ) | (3 | ) | ||||||||||||||
Corporate/Eliminations | (109 | ) | (3 | ) | (98 | ) | (3 | ) | (11 | ) | (11 | ) | ||||||||||
Total Revenues | $ | 3,171 | 100 | % | $ | 3,084 | 100 | % | $ | 87 | 3 | % |
Three Months Ended September 30, | ||||||||||||||||||||||
% of Total Operating Income | % of Total Operating Income | |||||||||||||||||||||
Increase/(Decrease) | ||||||||||||||||||||||
2017 | 2016 | $ | % | |||||||||||||||||||
Segment Operating Income (Loss): | ||||||||||||||||||||||
Entertainment | $ | 345 | 49 | % | $ | 348 | 48 | % | $ | (3 | ) | (1 | )% | |||||||||
Cable Networks | 294 | 42 | 285 | 40 | 9 | 3 | ||||||||||||||||
Publishing | 46 | 6 | 44 | 6 | 2 | 5 | ||||||||||||||||
Local Media | 105 | 15 | 122 | 17 | (17 | ) | (14 | ) | ||||||||||||||
Corporate | (83 | ) | (12 | ) | (78 | ) | (11 | ) | (5 | ) | (6 | ) | ||||||||||
Total Operating Income | $ | 707 | 100 | % | $ | 721 | 100 | % | $ | (14 | ) | (2 | )% |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
2017 | 2016 | $ | % | ||||||||||||
Depreciation and Amortization: | |||||||||||||||
Entertainment | $ | 29 | $ | 28 | $ | 1 | 4 | % | |||||||
Cable Networks | 5 | 6 | (1 | ) | (17 | ) | |||||||||
Publishing | 2 | 1 | 1 | 100 | |||||||||||
Local Media | 11 | 11 | — | — | |||||||||||
Corporate | 8 | 8 | — | — | |||||||||||
Total Depreciation and Amortization | $ | 55 | $ | 54 | $ | 1 | 2 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Direct-to-Consumer | 2023 | 2022 | Increase/(Decrease) | |||||||||||||||||||||||
Advertising | $ | 398 | $ | 347 | $ | 51 | 15 | % | ||||||||||||||||||
Subscription | 1,112 | 742 | 370 | 50 | ||||||||||||||||||||||
Revenues | $ | 1,510 | $ | 1,089 | $ | 421 | 39 | % | ||||||||||||||||||
Adjusted OIBDA | $ | (511) | $ | (456) | $ | (55) | (12) | % | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Increase/(Decrease) | |||||||||||||||||||||||
Paramount+ (Global) | ||||||||||||||||||||||||||
Subscribers (a) | 60.0 | 39.6 | 20.4 | 52 | % | |||||||||||||||||||||
Revenues | $ | 965 | $ | 585 | $ | 380 | 65 | % | ||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | Increase/(Decrease) | ||||||||||||||||||||
2017 | 2016 | $ | % | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Entertainment | $ | 6,346 | 65 | % | $ | 6,483 | 67 | % | $ | (137 | ) | (2 | )% | |||||||||
Cable Networks | 1,954 | 20 | 1,659 | 17 | 295 | 18 | ||||||||||||||||
Publishing | 595 | 6 | 558 | 6 | 37 | 7 | ||||||||||||||||
Local Media | 1,218 | 13 | 1,253 | 13 | (35 | ) | (3 | ) | ||||||||||||||
Corporate/Eliminations | (342 | ) | (4 | ) | (305 | ) | (3 | ) | (37 | ) | (12 | ) | ||||||||||
Total Revenues | $ | 9,771 | 100 | % | $ | 9,648 | 100 | % | $ | 123 | 1 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||
% of Total Segment Operating Income | % of Total Segment Operating Income | |||||||||||||||||||||
Increase/(Decrease) | ||||||||||||||||||||||
2017 | 2016 | $ | % | |||||||||||||||||||
Segment Operating Income (Loss): | ||||||||||||||||||||||
Entertainment | $ | 1,089 | 53 | % | $ | 1,148 | 54 | % | $ | (59 | ) | (5 | )% | |||||||||
Cable Networks | 795 | 38 | 740 | 35 | 55 | 7 | ||||||||||||||||
Publishing | 88 | 4 | 83 | 4 | 5 | 6 | ||||||||||||||||
Local Media | 355 | 17 | 402 | 19 | (47 | ) | (12 | ) | ||||||||||||||
Corporate | (247 | ) | (12 | ) | (245 | ) | (12 | ) | (2 | ) | (1 | ) | ||||||||||
Total Segment Operating Income | 2,080 | 100 | % | 2,128 | 100 | % | (48 | ) | (2 | ) | ||||||||||||
Other operating items, net | — | 9 | (9 | ) | n/m | |||||||||||||||||
Total Operating Income | $ | 2,080 | $ | 2,137 | $ | (57 | ) | (3 | )% |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
2017 | 2016 | $ | % | ||||||||||||
Depreciation and Amortization: | |||||||||||||||
Entertainment | $ | 85 | $ | 88 | $ | (3 | ) | (3 | )% | ||||||
Cable Networks | 17 | 17 | — | — | |||||||||||
Publishing | 5 | 4 | 1 | 25 | |||||||||||
Local Media | 34 | 33 | 1 | 3 | |||||||||||
Corporate | 25 | 26 | (1 | ) | (4 | ) | |||||||||
Total Depreciation and Amortization | $ | 166 | $ | 168 | $ | (2 | ) | (1 | )% |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Increase/(Decrease) | ||||||||||||||||||||||||||
Filmed Entertainment | 2023 | 2022 | $ | % | ||||||||||||||||||||||
Advertising (a) | $ | 5 | $ | 2 | $ | 3 | 150 | % | ||||||||||||||||||
Theatrical | 127 | 131 | (4) | (3) | ||||||||||||||||||||||
Licensing and other | 456 | 491 | (35) | (7) | ||||||||||||||||||||||
Revenues | $ | 588 | $ | 624 | $ | (36) | (6) | % | ||||||||||||||||||
Adjusted OIBDA | $ | (99) | $ | (37) | $ | (62) | (168) | % |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Entertainment | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 1,815 | $ | 1,949 | $ | (134 | ) | (7 | )% | ||||||
Segment Operating Income | $ | 345 | $ | 348 | $ | (3 | ) | (1 | )% | ||||||
Segment Operating Income as a % of revenues | 19 | % | 18 | % | |||||||||||
Depreciation and amortization | $ | 29 | $ | 28 | $ | 1 | 4 | % | |||||||
Capital expenditures | $ | 25 | $ | 23 | $ | 2 | 9 | % |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Entertainment | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 6,346 | $ | 6,483 | $ | (137 | ) | (2 | )% | ||||||
Segment Operating Income | $ | 1,089 | $ | 1,148 | $ | (59 | ) | (5 | )% | ||||||
Segment Operating Income as a % of revenues | 17 | % | 18 | % | |||||||||||
Depreciation and amortization | $ | 85 | $ | 88 | $ | (3 | ) | (3 | )% | ||||||
Capital expenditures | $ | 63 | $ | 60 | $ | 3 | 5 | % |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Cable Networks | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 840 | $ | 598 | $ | 242 | 40 | % | |||||||
Segment Operating Income | $ | 294 | $ | 285 | $ | 9 | 3 | % | |||||||
Segment Operating Income as a % of revenues | 35 | % | 48 | % | |||||||||||
Depreciation and amortization | $ | 5 | $ | 6 | $ | (1 | ) | (17 | )% | ||||||
Capital expenditures | $ | 5 | $ | 4 | $ | 1 | 25 | % |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Cable Networks | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 1,954 | $ | 1,659 | $ | 295 | 18 | % | |||||||
Segment Operating Income | $ | 795 | $ | 740 | $ | 55 | 7 | % | |||||||
Segment Operating Income as a % of revenues | 41 | % | 45 | % | |||||||||||
Depreciation and amortization | $ | 17 | $ | 17 | $ | — | — | % | |||||||
Capital expenditures | $ | 12 | $ | 8 | $ | 4 | 50 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | |||||||||||||||||||||
Net cash flow (used for) provided by operating activities from: | |||||||||||||||||||||||
Continuing operations | $ | (483) | $ | 295 | $ | (778) | |||||||||||||||||
Discontinued operations | 105 | 102 | 3 | ||||||||||||||||||||
Net cash flow (used for) provided by operating activities | (378) | 397 | (775) | ||||||||||||||||||||
Net cash flow used for investing activities | (89) | (80) | (9) | ||||||||||||||||||||
Net cash flow used for financing activities | (312) | (1,271) | 959 | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (11) | 14 | ||||||||||||||||||||
Net decrease in cash and cash equivalents | $ | (776) | $ | (965) | $ | 189 |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Publishing | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 228 | $ | 226 | $ | 2 | 1 | % | |||||||
Segment Operating Income | $ | 46 | $ | 44 | $ | 2 | 5 | % | |||||||
Segment Operating Income as a % of revenues | 20 | % | 19 | % | |||||||||||
Depreciation and amortization | $ | 2 | $ | 1 | $ | 1 | 100 | % | |||||||
Capital expenditures | $ | 1 | $ | 1 | $ | — | — | % |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Publishing | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 595 | $ | 558 | $ | 37 | 7 | % | |||||||
Segment Operating Income | $ | 88 | $ | 83 | $ | 5 | 6 | % | |||||||
Segment Operating Income as a % of revenues | 15 | % | 15 | % | |||||||||||
Depreciation and amortization | $ | 5 | $ | 4 | $ | 1 | 25 | % | |||||||
Capital expenditures | $ | 2 | $ | 7 | $ | (5 | ) | (71 | )% |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Investments | $ | (43) | $ | (59) | |||||||||||||||||||
Capital expenditures (a) | (71) | (52) | |||||||||||||||||||||
Other investing activities (b) | 25 | 31 | |||||||||||||||||||||
Net cash flow used for investing activities | $ | (89) | $ | (80) |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Local Media | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 397 | $ | 409 | $ | (12 | ) | (3 | )% | ||||||
Segment Operating Income | $ | 105 | $ | 122 | $ | (17 | ) | (14 | )% | ||||||
Segment Operating Income as a % of revenues | 26 | % | 30 | % | |||||||||||
Depreciation and amortization | $ | 11 | $ | 11 | $ | — | — | % | |||||||
Capital expenditures | $ | 8 | $ | 9 | $ | (1 | ) | (11 | )% |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Local Media | 2017 | 2016 | $ | % | |||||||||||
Revenues | $ | 1,218 | $ | 1,253 | $ | (35 | ) | (3 | )% | ||||||
Segment Operating Income | $ | 355 | $ | 402 | $ | (47 | ) | (12 | )% | ||||||
Segment Operating Income as a % of revenues | 29 | % | 32 | % | |||||||||||
Depreciation and amortization | $ | 34 | $ | 33 | $ | 1 | 3 | % | |||||||
Capital expenditures | $ | 20 | $ | 20 | $ | — | — | % |
Three Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Corporate | 2017 | 2016 | $ | % | |||||||||||
Segment Operating Loss | $ | (83 | ) | $ | (78 | ) | $ | (5 | ) | (6 | )% | ||||
Depreciation and amortization | $ | 8 | $ | 8 | $ | — | — | % | |||||||
Capital expenditures | $ | 5 | $ | 5 | $ | — | — | % |
Nine Months Ended September 30, | |||||||||||||||
Increase/(Decrease) | |||||||||||||||
Corporate | 2017 | 2016 | $ | % | |||||||||||
Segment Operating Loss | $ | (247 | ) | $ | (245 | ) | $ | (2 | ) | (1 | )% | ||||
Depreciation and amortization | $ | 25 | $ | 26 | $ | (1 | ) | (4 | )% | ||||||
Capital expenditures | $ | 15 | $ | 16 | $ | (1 | ) | (6 | )% |
At | At | Increase/(Decrease) | |||||||||||||||||
September 30, 2017 | December 31, 2016 | $ | % | ||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 144 | $ | 598 | $ | (454 | ) | (76 | )% | ||||||||||
Receivables, net (a) | 3,598 | 3,314 | 284 | 9 | |||||||||||||||
Programming and other inventory (b) | 1,830 | 1,427 | 403 | 28 | |||||||||||||||
Prepaid expenses | 182 | 185 | (3 | ) | (2 | ) | |||||||||||||
All other current assets | 540 | 539 | 1 | — | |||||||||||||||
Total current assets | $ | 6,294 | $ | 6,063 | $ | 231 | 4 | % |
At | At | Increase/(Decrease) | |||||||||||||||||
September 30, 2017 | December 31, 2016 | $ | % | ||||||||||||||||
Assets of discontinued operations (a) | $ | 3,325 | $ | 4,291 | $ | (966 | ) | (23 | )% |
At | At | Increase/(Decrease) | |||||||||||||||||
September 30, 2017 | December 31, 2016 | $ | % | ||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable (a) | $ | 233 | $ | 148 | $ | 85 | 57 | % | |||||||||||
Accrued compensation (a) | 257 | 369 | (112 | ) | (30 | ) | |||||||||||||
Participants’ share and royalties payable | 997 | 1,024 | (27 | ) | (3 | ) | |||||||||||||
Program rights (b) | 509 | 290 | 219 | 76 | |||||||||||||||
Commercial paper | 590 | 450 | 140 | 31 | |||||||||||||||
All other current liabilities | 1,466 | 1,427 | 39 | 3 | |||||||||||||||
Total current liabilities | $ | 4,052 | $ | 3,708 | $ | 344 | 9 | % |
At | At | Increase/(Decrease) | |||||||||||||||||
September 30, 2017 | December 31, 2016 | $ | % | ||||||||||||||||
Pension and postretirement benefit obligations (a) | $ | 1,619 | $ | 1,769 | $ | (150 | ) | (8 | )% |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | Increase/(Decrease) | |||||||||||
Net cash flow provided by operating activities from: | |||||||||||||
Continuing operations | $ | 935 | $ | 1,117 | $ | (182 | ) | ||||||
Discontinued operations | 52 | 189 | (137 | ) | |||||||||
Net cash flow provided by operating activities | 987 | 1,306 | (319 | ) | |||||||||
Net cash flow used for investing activities from: | |||||||||||||
Continuing operations | (399 | ) | (179 | ) | (220 | ) | |||||||
Discontinued operations | (18 | ) | (2 | ) | (16 | ) | |||||||
Net cash flow used for investing activities | (417 | ) | (181 | ) | (236 | ) | |||||||
Net cash flow used for financing activities | (1,018 | ) | (1,269 | ) | 251 | ||||||||
Net decrease in cash and cash equivalents | $ | (448 | ) | $ | (144 | ) | $ | (304 | ) |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | ||||||||||
Acquisitions (including acquired television library) (a) | $ | (258 | ) | $ | (51 | ) | |||||
Capital expenditures | (112 | ) | (111 | ) | |||||||
Investments in and advances to investee companies (b) | (67 | ) | (44 | ) | |||||||
Proceeds from dispositions (c) | 11 | 20 | |||||||||
All other investing activities, net | 27 | 7 | |||||||||
Net cash flow used for investing activities from continuing operations | (399 | ) | (179 | ) | |||||||
Net cash flow used for investing activities from discontinued operations | (18 | ) | (2 | ) | |||||||
Net cash flow used for investing activities | $ | (417 | ) | $ | (181 | ) |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | ||||||||||
Repurchase of CBS Corp. Class B Common Stock | $ | (1,111 | ) | $ | (1,534 | ) | |||||
Proceeds from short-term debt borrowings, net | 140 | 33 | |||||||||
Proceeds from issuance of senior notes | 889 | 685 | |||||||||
Repayment of senior notes and debentures | (701 | ) | (199 | ) | |||||||
Dividends | (224 | ) | (209 | ) | |||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (89 | ) | (57 | ) | |||||||
Proceeds from exercise of stock options | 81 | 13 | |||||||||
All other financing activities, net | (3 | ) | (1 | ) | |||||||
Net cash flow used for financing activities | $ | (1,018 | ) | $ | (1,269 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | |||||||||||||||||||||
Net cash flow (used for) provided by operating activities from: | |||||||||||||||||||||||
Continuing operations | $ | (483) | $ | 295 | $ | (778) | |||||||||||||||||
Discontinued operations | 105 | 102 | 3 | ||||||||||||||||||||
Net cash flow (used for) provided by operating activities | (378) | 397 | (775) | ||||||||||||||||||||
Net cash flow used for investing activities | (89) | (80) | (9) | ||||||||||||||||||||
Net cash flow used for financing activities | (312) | (1,271) | 959 | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (11) | 14 | ||||||||||||||||||||
Net decrease in cash and cash equivalents | $ | (776) | $ | (965) | $ | 189 |
Nine Months Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Net cash flow provided by operating activities | $ | 987 | $ | 1,306 | |||
Capital expenditures | (112 | ) | (111 | ) | |||
Exclude operating cash flow from discontinued operations | 52 | 189 | |||||
Free cash flow | $ | 823 | $ | 1,006 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Investments | $ | (43) | $ | (59) | |||||||||||||||||||
Capital expenditures (a) | (71) | (52) | |||||||||||||||||||||
Other investing activities (b) | 25 | 31 | |||||||||||||||||||||
Net cash flow used for investing activities | $ | (89) | $ | (80) |
At | At | ||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||
Commercial paper | $ | 590 | $ | 450 | |||||||
Senior debt (1.95% – 7.875% due 2017 – 2045) (a) | 9,039 | 8,850 | |||||||||
Obligations under capital leases | 60 | 75 | |||||||||
Total debt | 9,689 | 9,375 | |||||||||
Less commercial paper | 590 | 450 | |||||||||
Less current portion of long-term debt | 19 | 23 | |||||||||
Total long-term debt, net of current portion | $ | 9,080 | $ | 8,902 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Increase/(Decrease) | |||||||||||||||||||||
Net cash flow (used for) provided by operating activities from: | |||||||||||||||||||||||
Continuing operations | $ | (483) | $ | 295 | $ | (778) | |||||||||||||||||
Discontinued operations | 105 | 102 | 3 | ||||||||||||||||||||
Net cash flow (used for) provided by operating activities | (378) | 397 | (775) | ||||||||||||||||||||
Net cash flow used for investing activities | (89) | (80) | (9) | ||||||||||||||||||||
Net cash flow used for financing activities | (312) | (1,271) | 959 | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (11) | 14 | ||||||||||||||||||||
Net decrease in cash and cash equivalents | $ | (776) | $ | (965) | $ | 189 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Investments | $ | (43) | $ | (59) | |||||||||||||||||||
Capital expenditures (a) | (71) | (52) | |||||||||||||||||||||
Other investing activities (b) | 25 | 31 | |||||||||||||||||||||
Net cash flow used for investing activities | $ | (89) | $ | (80) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Proceeds from issuance of notes and debentures | $ | — | $ | 991 | |||||||||||||||||||
Repayment of notes and debentures | — | (2,001) | |||||||||||||||||||||
Dividends paid on preferred stock | (14) | (14) | |||||||||||||||||||||
Dividends paid on common stock | (166) | (158) | |||||||||||||||||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (16) | (9) | |||||||||||||||||||||
Payments to noncontrolling interests | (89) | (77) | |||||||||||||||||||||
Other financing activities | (27) | (3) | |||||||||||||||||||||
Net cash flow used for financing activities | $ | (312) | $ | (1,271) |
At | At | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Senior debt (2.90%-7.875% due 2023-2050) | $ | 14,155 | $ | 14,149 | |||||||||||||||||||
Junior debt (6.25% and 6.375% due 2057 and 2062) | 1,632 | 1,632 | |||||||||||||||||||||
Other bank borrowings | 58 | 55 | |||||||||||||||||||||
Obligations under finance leases | 8 | 10 | |||||||||||||||||||||
Total debt (a) | 15,853 | 15,846 | |||||||||||||||||||||
Less current portion | 240 | 239 | |||||||||||||||||||||
Total long-term debt, net of current portion | $ | 15,613 | $ | 15,607 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
(in millions, except per share amounts) | Total Number of Shares Purchased | Average Price Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Remaining Authorization | |||||||||||||||
July 1, 2017 - July 31, 2017 | 1.4 | $ | 64.80 | 1.4 | $ | 3,214 | |||||||||||||
August 1, 2017 - August 31, 2017 | 1.6 | $ | 65.10 | 1.6 | $ | 3,107 | |||||||||||||
September 1, 2017 - September 30, 2017 | .9 | $ | 58.36 | .9 | $ | 3,057 | |||||||||||||
Total | 3.9 | $ | 63.52 | 3.9 | $ | 3,057 |
Item 6. | Exhibits. |
(101) | Interactive Data File | ||||||||
101. INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101. SCH Inline XBRL Taxonomy Extension Schema. | |||||||||
101. CAL Inline XBRL Taxonomy Extension Calculation Linkbase. | |||||||||
101. DEF Inline XBRL Taxonomy Extension Definition Linkbase. | |||||||||
101. LAB Inline XBRL Taxonomy Extension Label Linkbase. | |||||||||
101. PRE Inline XBRL Taxonomy Extension Presentation Linkbase. | |||||||||
Cover Page Interactive Data File | |||||||||
PARAMOUNT GLOBAL (Registrant) | |||||
Date: May 4, 2023 | |||||
Executive Vice President, Chief | |||||
Date: | /s/ | ||||
Executive Vice President, Controller and Chief Accounting Officer |