COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-09553 | |
Entity Registrant Name | Paramount Global | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2949533 | |
Entity Address, Address Line One | 1515 Broadway | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 258-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000813828 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | PARAA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 40,702,775 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock, $0.001 par value | |
Trading Symbol | PARA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 625,775,907 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | $ 7,685 | $ 7,265 |
Costs and expenses: | ||
Operating | 5,036 | 4,964 |
Programming charges | 1,118 | 1,674 |
Selling, general and administrative | 1,662 | 1,753 |
Depreciation and amortization | 100 | 100 |
Restructuring charges | 186 | 0 |
Total costs and expenses | 8,102 | 8,491 |
Operating loss | (417) | (1,226) |
Interest expense | (221) | (226) |
Interest income | 45 | 35 |
Loss from investment | (4) | 0 |
Other items, net | (38) | (46) |
Loss from continuing operations before income taxes and equity in loss of investee companies | (635) | (1,463) |
Benefit from income taxes | 172 | 381 |
Equity in loss of investee companies, net of tax | (90) | (75) |
Net loss from continuing operations | (553) | (1,157) |
Net earnings from discontinued operations, net of tax | 9 | 45 |
Net loss (Paramount and noncontrolling interests) | (544) | (1,112) |
Net earnings attributable to noncontrolling interests | (10) | (6) |
Net loss attributable to Paramount | (554) | (1,118) |
Amounts attributable to Paramount: | ||
Net loss from continuing operations | (563) | (1,163) |
Net earnings from discontinued operations, net of tax | 9 | 45 |
Net loss attributable to Paramount | $ (554) | $ (1,118) |
Basic net earnings (loss) per common share attributable to Paramount: | ||
Net loss from continuing operations (in dollars per share) | $ (0.88) | $ (1.81) |
Net earnings from discontinued operations (in dollars per share) | 0.01 | 0.07 |
Net loss (in dollars per share) | (0.87) | (1.74) |
Diluted net earnings (loss) per common share attributable to Paramount: | ||
Net loss from continuing operations (in dollars per share) | (0.88) | (1.81) |
Net earnings from discontinued operations (in dollars per share) | 0.01 | 0.07 |
Net loss (in dollars per share) | $ (0.87) | $ (1.74) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 654 | 651 |
Diluted (in shares) | 654 | 651 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss (Paramount and noncontrolling interests) | $ (544) | $ (1,112) |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustments | (68) | 53 |
Decrease to net actuarial loss and prior service costs | 9 | 11 |
Other comprehensive income (loss) from continuing operations, net of tax (Paramount and noncontrolling interests) | (59) | 64 |
Other comprehensive income from discontinued operations | 0 | 2 |
Comprehensive loss | (603) | (1,046) |
Less: Comprehensive income attributable to noncontrolling interests | 10 | 7 |
Comprehensive loss attributable to Paramount | $ (613) | $ (1,053) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 2,384 | $ 2,460 |
Receivables, net | 7,096 | 7,115 |
Programming and other inventory | 892 | 1,414 |
Prepaid expenses and other current assets | 1,511 | 1,677 |
Current assets of discontinued operations | 49 | 37 |
Total current assets | 11,932 | 12,703 |
Property and equipment, net | 1,612 | 1,666 |
Programming and other inventory | 13,420 | 13,851 |
Goodwill | 16,500 | 16,516 |
Intangible assets, net | 2,580 | 2,589 |
Operating lease assets | 1,117 | 1,183 |
Deferred income tax assets, net | 1,244 | 1,242 |
Other assets | 3,622 | 3,793 |
Total Assets | 52,027 | 53,543 |
Current Liabilities: | ||
Accounts payable | 787 | 1,100 |
Accrued expenses | 1,728 | 2,104 |
Participants’ share and royalties payable | 2,625 | 2,702 |
Accrued programming and production costs | 1,994 | 1,842 |
Deferred revenues | 671 | 746 |
Debt | 1 | 1 |
Other current liabilities | 1,438 | 1,161 |
Total current liabilities | 9,244 | 9,656 |
Long-term debt | 14,607 | 14,601 |
Participants’ share and royalties payable | 1,337 | 1,394 |
Pension and postretirement benefit obligations | 1,332 | 1,337 |
Deferred income tax liabilities, net | 273 | 503 |
Operating lease liabilities | 1,199 | 1,256 |
Program rights obligations | 204 | 204 |
Other liabilities | 1,494 | 1,542 |
Commitments and contingencies (Note 14) | ||
Paramount stockholders’ equity: | ||
Additional paid-in capital | 33,240 | 33,210 |
Treasury stock, at cost; $503 (2024 and 2023) shares of Class B Common Stock | (22,958) | (22,958) |
Retained earnings | 13,226 | 13,829 |
Accumulated other comprehensive loss | (1,615) | (1,556) |
Total Paramount stockholders’ equity | 21,894 | 22,526 |
Noncontrolling interests | 443 | 524 |
Total Equity | 22,337 | 23,050 |
Total Liabilities and Equity | 52,027 | 53,543 |
Mandatory Convertible Preferred Stock | ||
Paramount stockholders’ equity: | ||
5.75% Series A Mandatory Convertible Preferred Stock, par value $.001 per share; 25 shares authorized; 10 (2024 and 2023) shares issued | 0 | 0 |
Class A Common Stock | ||
Paramount stockholders’ equity: | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Paramount stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Mandatory Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, percentage | 5.75% | 5.75% |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25 | 25 |
Preferred stock, shares issued (in shares) | 10 | 10 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 55 | 55 |
Common stock, shares issued (in shares) | 41 | 41 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 5,000 | 5,000 |
Common stock, shares issued (in shares) | 1,117 | 1,115 |
Treasury stock, at cost (in shares) | 503 | 503 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities: | ||
Net loss (Paramount and noncontrolling interests) | $ (544) | $ (1,112) |
Less: Net earnings from discontinued operations, net of tax | 9 | 45 |
Net loss from continuing operations | (553) | (1,157) |
Adjustments to reconcile net loss from continuing operations to net cash flow provided by (used for) operating activities from continuing operations: | ||
Depreciation and amortization | 100 | 100 |
Programming charges | 1,118 | 1,674 |
Deferred tax benefit | (231) | (436) |
Stock-based compensation | 47 | 39 |
Loss from investment | 4 | 0 |
Equity in loss of investee companies, net of tax | 90 | 75 |
Change in assets and liabilities | (315) | (778) |
Net cash flow provided by (used for) operating activities from continuing operations | 260 | (483) |
Net cash flow provided by operating activities from discontinued operations | 0 | 105 |
Net cash flow provided by (used for) operating activities | 260 | (378) |
Investing Activities: | ||
Investments | (88) | (43) |
Capital expenditures | (51) | (71) |
Other investing activities | 11 | 25 |
Net cash flow used for investing activities | (128) | (89) |
Financing Activities: | ||
Proceeds from issuance of debt | 0 | 35 |
Repayment of debt | 0 | (32) |
Dividends paid on preferred stock | (14) | (14) |
Dividends paid on common stock | (35) | (166) |
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (17) | (16) |
Payments to noncontrolling interests | (94) | (89) |
Other financing activities | (27) | (30) |
Net cash flow used for financing activities | (187) | (312) |
Effect of exchange rate changes on cash and cash equivalents | (21) | 3 |
Net decrease in cash and cash equivalents | (76) | (776) |
Cash and cash equivalents at beginning of year | 2,460 | 2,885 |
Cash and cash equivalents at end of period | $ 2,384 | $ 2,109 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Total Paramount Stockholders’ Equity | Preferred Stock | Class A and B Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 10 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 23,606 | $ 23,036 | $ 0 | $ 1 | $ 33,063 | $ (22,958) | $ 14,737 | $ (1,807) | $ 570 |
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 650 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation activity (in shares) | 1 | ||||||||
Stock-based compensation activity and other | 43 | 43 | 24 | 19 | |||||
Preferred stock dividends | (14) | (14) | (14) | ||||||
Common stock dividends | (161) | (161) | (161) | ||||||
Noncontrolling interests | (85) | (85) | |||||||
Net earnings (loss) | (1,112) | (1,118) | (1,118) | 6 | |||||
Other comprehensive income (loss) | 66 | 65 | 65 | 1 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 10 | ||||||||
Ending balance at Mar. 31, 2023 | 22,343 | 21,851 | $ 0 | $ 1 | 33,087 | (22,958) | 13,463 | (1,742) | 492 |
Common stock, ending balance (in shares) at Mar. 31, 2023 | 651 | ||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 10 | ||||||||
Beginning balance at Dec. 31, 2023 | 23,050 | 22,526 | $ 0 | $ 1 | 33,210 | (22,958) | 13,829 | (1,556) | 524 |
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 653 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation activity (in shares) | 2 | ||||||||
Stock-based compensation activity | 30 | 30 | 30 | ||||||
Preferred stock dividends | (14) | (14) | (14) | ||||||
Common stock dividends | (35) | (35) | (35) | ||||||
Noncontrolling interests | (91) | (91) | |||||||
Net earnings (loss) | (544) | (554) | (554) | 10 | |||||
Other comprehensive income (loss) | (59) | (59) | (59) | ||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | 10 | ||||||||
Ending balance at Mar. 31, 2024 | $ 22,337 | $ 21,894 | $ 0 | $ 1 | $ 33,240 | $ (22,958) | $ 13,226 | $ (1,615) | $ 443 |
Common stock, ending balance (in shares) at Mar. 31, 2024 | 655 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Business— Paramount Global, a global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide, is comprised of the following segments: • TV Media— Our TV Media segment consists of our (1) broadcast operations — the CBS Television Network, our domestic broadcast television network; CBS Stations, our owned television stations; and our international free-to-air networks, Network 10, Channel 5, Telefe, and Chilevisión; (2) domestic premium and basic cable networks, including Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, CBS Sports Network, and international extensions of certain of these brands; and (3) domestic and international television studio operations, including CBS Studios, Paramount Television Studios and Showtime/MTV Entertainment Studios, as well as CBS Media Ventures, which produces and distributes first-run syndicated programming. TV Media also includes a number of digital properties such as CBS News Streaming and CBS Sports HQ . • Direct-to-Consumer— Our Direct-to-Consumer segment includes our portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+. Effective July 6, 2023, Showtime Networks’ domestic premium subscription streaming service was no longer offered as a standalone streaming service for new subscribers and effective April 30, 2024 will no longer be available. • Filmed Entertainment — Our Filmed Entertainment segment consists of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax . References to “Paramount,” the “Company,” “we,” “us” and “our” refer to Paramount Global and its consolidated subsidiaries, unless the context otherwise requires. On April 29, 2024, the Board of Directors of the Company established an Office of the CEO, consisting of the following three senior company executives: George Cheeks, President and Chief Executive Officer of CBS; Chris McCarthy, President and Chief Executive Officer, Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, President and Chief Executive Officer of Paramount Pictures and Nickelodeon. Robert M. Bakish will step down as the Company’s President and Chief Executive Officer and has resigned from the Board of Directors, in each case, effective as of the end of the day on April 30, 2024. Between May 1, 2024 and October 31, 2024, Mr. Bakish has agreed to remain employed with the Company as a Senior Advisor to help ensure a seamless transition of his duties. Basis of Presentation— The accompanying unaudited consolidated financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the more detailed financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. Certain previously reported amounts have been reclassified to conform to the current presentation. Discontinued Operations— On October 30, 2023, we completed the sale of Simon & Schuster, which has been presented as a discontinued operation in our consolidated financial statements (see Note 13). Use of Estimates— The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may vary from these estimates under different assumptions or conditions. Net Earnings (Loss) per Common Share— Basic net earnings (loss) per share (“EPS”) is based upon net earnings (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net earnings (loss) available to common stockholders is calculated as net earnings (loss) from continuing operations or net earnings (loss), as applicable, adjusted to include a reduction for dividends recorded during the applicable period on our 5.75% Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”). Weighted average shares for diluted EPS reflect the effect of the assumed exercise of stock options and vesting of restricted share units (“RSUs”) or performance share units (“PSUs”) only in the periods in which such effect would have been dilutive. Diluted EPS also reflects the effect of the assumed conversion of preferred stock, if dilutive, which includes the issuance of common shares in the weighted average number of shares and excludes the above-mentioned preferred stock dividend adjustment to net earnings (loss) available to common stockholders. For each of the three-month periods ended March 31, 2024 and 2023, all of our stock options and RSUs, which totaled 30 million and 21 million, respectively, were excluded from the calculations of diluted EPS because their inclusion would have been antidilutive since we reported a net loss. Also excluded from the calculation of diluted EPS for each period was the effect of the assumed conversion of 10 million shares of Mandatory Convertible Preferred Stock into shares of common stock because the impact would have been antidilutive. Additionally, because the impact of the assumed conversion of the Mandatory Convertible Preferred Stock would have been antidilutive, net loss from continuing operations and net loss used in our calculations of diluted EPS for the three months ended March 31, 2024 and 2023 include a reduction for the preferred stock dividends recorded during each period. The table below presents a reconciliation of net loss from continuing operations and net loss to the amounts used in the calculations of basic and diluted EPS. Three Months Ended March 31, 2024 2023 Amounts attributable to Paramount: Net loss from continuing operations $ (563) $ (1,163) Preferred stock dividends (14) (14) Net loss from continuing operations for basic and diluted EPS calculation $ (577) $ (1,177) Amounts attributable to Paramount: Net loss $ (554) $ (1,118) Preferred stock dividends (14) (14) Net loss for basic and diluted EPS calculation $ (568) $ (1,132) Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the Financial Accounting Standards Board (“FASB”) issued updated guidance for segment reporting, which requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of segment profit or loss (“segment measure”), as well as the disclosure of the other segment items comprising the difference between segment revenues less these significant segment expenses and the segment measure. The update also requires an entity to disclose the title and position of the CODM and to describe how the CODM utilizes the segment measure to assess segment performance and allocate resources. In addition, the update aligns the interim disclosure requirements for segment profit or loss and assets with the annual requirements. The update is effective for us for our annual report for the year ended December 31, 2024, and for interim periods thereafter and is required to be applied retrospectively. Income Taxes |
PROGRAMMING AND OTHER INVENTORY
PROGRAMMING AND OTHER INVENTORY | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
PROGRAMMING AND OTHER INVENTORY | PROGRAMMING AND OTHER INVENTORY The following table presents our programming and other inventory at March 31, 2024 and December 31, 2023, grouped by type and predominant monetization strategy. At At March 31, 2024 December 31, 2023 Film Group Monetization: Acquired program rights, including prepaid sports rights $ 2,536 $ 3,318 Internally-produced television and film programming: Released 6,494 6,666 In process and other 1,859 2,028 Individual Monetization: Acquired libraries 339 348 Films: Released 727 624 Completed, not yet released 31 179 In process and other 1,391 1,211 Internally-produced television programming: Released 476 496 In process and other 429 361 Home entertainment 30 34 Total programming and other inventory 14,312 15,265 Less current portion 892 1,414 Total noncurrent programming and other inventory $ 13,420 $ 13,851 The following table presents amortization of our television and film programming and production costs, which is included within “ Operating expenses Three Months Ended March 31, 2024 2023 Acquired program rights $ 1,782 $ 1,414 Internally-produced television and film programming, and acquired libraries: Individual monetization $ 298 $ 396 Film group monetization $ 1,060 $ 1,368 Programming Charges During the first quarter of 2024, in connection with our continued review of our content strategy, we made a strategic decision to focus on content with mass global appeal. As part of this, we are rationalizing original content on our streaming services, especially internationally, and improving the efficiency of our linear network programming. As a result, we have reviewed our expansive global content portfolio and removed select content from our platforms. In addition, we have decided not to move forward with certain titles and therefore have abandoned some development projects and terminated certain programming agreements. Accordingly, we recorded programming charges on the Consolidated Statement of Operations for the three months ended March 31, 2024 relating to these actions. These charges, which totaled $1.12 billion, were comprised of $909 million for the impairment of content to its estimated fair value, as well as $209 million for development cost write-offs and contract termination costs. We may incur an additional programming charge of approximately $250 million later in 2024 related to the termination of an international programming agreement. During the first half of 2023, in connection with the integration of Showtime into Paramount+ across both streaming and linear platforms, we performed a comprehensive strategic review of the combined content portfolio of Showtime and Paramount+. Additionally, we commenced a review of our international content portfolio in connection with initiatives to rationalize and right-size our international operations to align with our streaming strategy, and close or globalize certain of our international channels. As a result, we changed the strategy for certain content, which led to content being removed from our platforms or abandoned, the write-off of development costs, distribution changes, and termination of programming agreements. Accordingly, we recorded programming charges on the Consolidated Statement of Operations relating to these actions. For the first quarter of 2023, we recorded charges totaling $1.67 billion, which were comprised of $1.45 billion for the impairment of content to its estimated fair value, as well as $225 million for development cost write-offs and contract termination costs. For content that was removed from our platforms or abandoned in each period, the estimated fair value was determined using assumptions for secondary market licensing revenues, if any. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During the three months ended March 31, 2024, we recorded the following restructuring charges. Three Months Ended March 31, 2024 Severance (a) $ 155 Exit costs 31 Restructuring charges $ 186 (a) Severance costs include the accelerated vesting of stock-based compensation. The restructuring charges of $186 million for the three months ended March 31, 2024 are comprised of severance costs associated with strategic changes in our global workforce and the impairment of lease assets that we ceased use of in connection with initiatives to reduce our real estate footprint and create cost synergies. The impairments were primarily the result of a decline in market conditions since the inception of these leases and reflect the difference between the estimated fair values, which were determined based on the expected future cash flows of the lease assets, and the carrying values. The following is a rollforward of our restructuring liability, which is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheets. The restructuring liability at March 31, 2024, which principally relates to severance payments, is expected to be substantially paid by the end of 2024. Balance at 2024 Activity Balance at December 31, 2023 Charges (a) Payments March 31, 2024 TV Media $ 162 $ 91 $ (50) $ 203 Direct-to-Consumer 6 14 (5) 15 Filmed Entertainment 14 18 (6) 26 Corporate 10 30 (7) 33 Total $ 192 $ 153 $ (68) $ 277 |
RELATED PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES National Amusements, Inc. National Amusements, Inc. (“NAI”) is the controlling stockholder of the Company. At March 31, 2024, NAI directly or indirectly owned approximately 77.4% of our voting Class A Common Stock, and approximately 9.7% of our Class A Common Stock and non-voting Class B Common Stock on a combined basis. NAI is controlled by the Sumner M. Redstone National Amusements Part B General Trust (the “General Trust”), which owns 80% of the voting interest of NAI. NA Administration, LLC is the corporate trustee of the General Trust and is governed by a seven-member board of directors, which acts by majority vote (subject to certain exceptions), including with respect to the NAI shares held by the General Trust. Shari E. Redstone, Chairperson, CEO and President of NAI and non-executive Chair of our Board of Directors, is one of the seven directors of NA Administration, LLC and one of two directors who are beneficiaries of the General Trust. No member of our management or other member of our Board of Directors is a director of NA Administration, LLC. Other Related Parties In the ordinary course of business, we are involved in transactions with our equity-method investees, primarily for the licensing of television and film programming. The following tables present the amounts recorded in our consolidated financial statements related to these transactions. Three Months Ended March 31, 2024 2023 Revenues $ 58 $ 108 Operating costs (a) $ 18 $ 4 (a) Includes costs expensed as operating expenses in each year. 2024 also includes costs capitalized in programming assets during the period. At At March 31, 2024 December 31, 2023 Receivables, net $ 180 $ 193 Other assets (Receivables, noncurrent) $ 87 $ 101 Through the normal course of business, we are involved in other transactions with related parties that have not been material in any of the periods presented. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The table below presents our revenues disaggregated into categories based on the nature of such revenues. See Note 12 for revenues by segment disaggregated into these categories. Three Months Ended March 31, 2024 2023 Revenues by Type: Advertising $ 3,096 $ 2,651 Affiliate and subscription 3,357 3,179 Theatrical 153 127 Licensing and other 1,079 1,308 Total Revenues $ 7,685 $ 7,265 Receivables Reserves for accounts receivable reflect our expected credit losses based on historical experience as well as current and expected economic conditions and industry trends. At both March 31, 2024 and December 31, 2023, our allowance for credit losses was $120 million. Included in “Other assets” on the Consolidated Balance Sheets are noncurrent receivables of $1.22 billion and $1.39 billion at March 31, 2024 and December 31, 2023, respectively. Noncurrent receivables primarily relate to revenues recognized under long-term content licensing arrangements. Revenues from the licensing of content are recognized at the beginning of the license period in which programs are made available to the licensee for exhibition, while the related cash is generally collected over the term of the license period. Contract Liabilities Contract liabilities are included within “Deferred revenues” and “Other liabilities” on the Consolidated Balance Sheets and were $0.7 billion and $0.8 billion at March 31, 2024 and December 31, 2023, respectively. We recognized revenues of $0.3 billion for each of the three months ended March 31, 2024 and 2023 that were included in the opening balance of deferred revenues for the respective year. Unrecognized Revenues Under Contract At March 31, 2024, unrecognized revenues attributable to unsatisfied performance obligations under our long-term contracts were approximately $7 billion, of which $3 billion is expected to be recognized during the remainder of 2024, $2 billion in 2025, $1 billion in 2026, and $1 billion thereafter. These amounts only include contracts subject to a guaranteed fixed amount or the guaranteed minimum under variable contracts, primarily consisting of television and film licensing contracts and affiliate agreements that are subject to a fixed or guaranteed minimum fee. Such amounts change on a regular basis as we renew existing agreements or enter into new agreements. In addition, the timing of satisfying certain of the performance obligations under these long-term contracts is uncertain and, therefore, is also subject to change. Unrecognized revenues under contracts disclosed above do not include (i) contracts with an original expected term of one year or less, mainly consisting of advertising contracts, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage, mainly consisting of affiliate agreements and (iii) long-term licensing agreements for multiple programs for which variable consideration is determined based on the value of the programs delivered to the customer and our right to invoice corresponds with the value delivered. Performance Obligations Satisfied in Previous Periods |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our debt consists of the following: At At March 31, 2024 December 31, 2023 4.75% Senior Notes due 2025 $ 125 $ 125 4.0% Senior Notes due 2026 345 345 3.45% Senior Notes due 2026 86 86 2.90% Senior Notes due 2027 581 581 3.375% Senior Notes due 2028 497 497 3.70% Senior Notes due 2028 495 495 4.20% Senior Notes due 2029 496 496 7.875% Senior Debentures due 2030 830 830 4.95% Senior Notes due 2031 1,230 1,229 4.20% Senior Notes due 2032 978 977 5.50% Senior Debentures due 2033 428 428 4.85% Senior Debentures due 2034 87 87 6.875% Senior Debentures due 2036 1,072 1,071 6.75% Senior Debentures due 2037 76 75 5.90% Senior Notes due 2040 298 298 4.50% Senior Debentures due 2042 45 45 4.85% Senior Notes due 2042 489 489 4.375% Senior Debentures due 2043 1,140 1,138 4.875% Senior Debentures due 2043 18 18 5.85% Senior Debentures due 2043 1,234 1,234 5.25% Senior Debentures due 2044 345 345 4.90% Senior Notes due 2044 541 541 4.60% Senior Notes due 2045 591 591 4.95% Senior Notes due 2050 948 948 6.25% Junior Subordinated Debentures due 2057 643 643 6.375% Junior Subordinated Debentures due 2062 989 989 Obligations under finance leases 1 1 Total debt (a) 14,608 14,602 Less current portion 1 1 Total long-term debt, net of current portion $ 14,607 $ 14,601 (a) At March 31, 2024 and December 31, 2023, the senior and junior subordinated debt balances included (i) a net unamortized discount of $415 million and $419 million, respectively, and (ii) unamortized deferred financing costs of $79 million and $81 million, respectively. The face value of our total debt was $15.10 billion at both March 31, 2024 and December 31, 2023. Commercial Paper At both March 31, 2024 and December 31, 2023, we had no outstanding commercial paper borrowings. Credit Facility At March 31, 2024, we had a $3.50 billion revolving credit facility that matures in January 2027 (the “Credit Facility”). The Credit Facility is used for general corporate purposes and to support commercial paper borrowings, if any. We may, at our option, also borrow in certain foreign currencies up to specified limits under the Credit Facility. Borrowing rates under the Credit Facility are determined at the time of each borrowing and are generally based on either the prime rate in the U.S. or an applicable benchmark rate plus a margin (based on our senior unsecured debt rating), depending on the type and tenor of the loans entered into. The benchmark rate for loans denominated in U.S. dollars is Term SOFR, and for loans denominated in euros, sterling and yen is based on EURIBOR, SONIA and TIBOR, respectively. At March 31, 2024, we had no borrowings outstanding under the Credit Facility and the availability under the Credit Facility was $3.50 billion. The Credit Facility has one principal financial covenant which sets a maximum Consolidated Total Leverage Ratio (“Leverage Ratio”) at the end of each quarter. The maximum Leverage Ratio was 5.75x for the quarter ended March 31, 2024 and will remain at this level for each quarter through and including the quarter ending September 30, 2024, and will then decrease to 5.5x for the quarters ending December 31, 2024 and March 31, 2025, with decreases of 0.25x for each subsequent quarter until the quarter ending March 31, 2026 when it will be 4.5x, and will remain at this level until maturity. The Leverage Ratio reflects the ratio of our Consolidated Indebtedness, net of unrestricted cash and cash equivalents at the end of a quarter, to our Consolidated EBITDA (each as defined in the credit agreement) for the trailing twelve-month period. For quarters ending on or after September 30, 2024, the maximum amount of unrestricted cash and cash equivalents that can be netted against Consolidated Indebtedness in the calculation of the Leverage Ratio will be $1.50 billion. We met the covenant as of March 31, 2024. Other Bank Borrowings At both March 31, 2024 and December 31, 2023, we had no outstanding bank borrowings under Miramax’s $50 million credit facility that matures in November 2024. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The carrying value of our financial instruments approximates fair value, except for notes and debentures. At March 31, 2024 and December 31, 2023, the carrying value of our outstanding notes and debentures was $14.61 billion and $14.60 billion, respectively, and the fair value, which is determined based on quoted prices in active markets (Level 1 in the fair value hierarchy) was $12.7 billion and $13.6 billion, respectively. Investments Our investments without a readily determinable fair value for which we have no significant influence, which are principally comprised of our investment in Viacom18, had a carrying value of $607 million and $612 million at March 31, 2024 and December 31, 2023, respectively. These investments are included in “Other assets” on the Consolidated Balance Sheets. In March 2024, we entered into an agreement to sell our 13% interest in Viacom18 to Reliance Industries Limited (“Reliance”), the majority interest holder, for an aggregate purchase price of 42.86 billion Indian rupees (approximately $517 million based on the foreign exchange rate at the agreement date). The closing of this transaction is subject to the satisfaction of certain customary conditions, including receipt of applicable regulatory approvals and the completion of a separate transaction between Viacom18, Reliance and a third party. Foreign Exchange Contracts We use derivative financial instruments primarily to manage our exposure to market risks from fluctuations in foreign currency exchange rates. We do not use derivative instruments unless there is an underlying exposure and, therefore, we do not hold or enter into derivative financial instruments for speculative trading purposes. Foreign exchange forward contracts have principally been used to hedge projected cash flows in currencies such as the British pound, the euro, the Canadian dollar and the Australian dollar, generally for periods up to 24 months. We designate foreign exchange forward contracts used to hedge committed and forecasted foreign currency transactions as cash flow hedges. Additionally, we enter into non-designated forward contracts to hedge non-U.S. dollar denominated cash flows. At March 31, 2024 and December 31, 2023, the notional amount of all foreign exchange contracts was $3.12 billion and $2.72 billion, respectively. At March 31, 2024, $2.57 billion related to future production costs and $546 million related to our foreign currency balances and other expected foreign currency cash flows. At December 31, 2023, $2.20 billion related to future production costs and $523 million related to our foreign currency balances and other expected foreign currency cash flows. Gains recognized on derivative financial instruments were as follows: Three Months Ended March 31, 2024 2023 Financial Statement Account Non-designated foreign exchange contracts $ 9 $ 1 Other items, net Fair Value Measurements The table below presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023. These assets and liabilities have been categorized according to the three-level fair value hierarchy established by the FASB, which prioritizes the inputs used in measuring fair value. Level 1 is based on publicly quoted prices for the asset or liability in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset or liability in inactive markets or quoted prices for similar assets or liabilities. Level 3 is based on unobservable inputs reflecting our own assumptions about the assumptions that market participants would use in pricing the asset or liability. All of our assets and liabilities that are measured at fair value on a recurring basis use Level 2 inputs. The fair value of foreign currency hedges is determined based on the present value of future cash flows using observable inputs including foreign currency exchange rates. The fair value of deferred compensation liabilities is determined based on the fair value of the investments elected by employees. At At March 31, 2024 December 31, 2023 Assets: Foreign currency hedges $ 22 $ 40 Total Assets $ 22 $ 40 Liabilities: Deferred compensation $ 367 $ 366 Foreign currency hedges 18 30 Total Liabilities $ 385 $ 396 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entity Disclosure [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE, and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The following tables present the amounts recorded in our consolidated financial statements related to our consolidated VIEs. At At March 31, 2024 December 31, 2023 Total assets $ 1,874 $ 1,886 Total liabilities $ 215 $ 232 Three Months Ended March 31, 2024 2023 Revenues $ 137 $ 145 Operating loss $ (34) $ (31) |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Mandatory Convertible Preferred Stock At March 31, 2024, there were 9.7 million shares of our Mandatory Convertible Preferred Stock outstanding. On April 1, 2024, each outstanding share automatically and mandatorily converted into 1.1765 shares of our Class B Common Stock, resulting in the issuance of 11.5 million shares of Class B Common Stock. Prior to the mandatory conversion, 0.3 million shares of Mandatory Convertible Preferred Stock were voluntarily converted into Class B Common Stock during the three months ended March 31, 2024. The final dividend on the Mandatory Convertible Preferred Stock, which was declared during the three months ended March 31, 2024, was paid on April 1, 2024. Dividends The following table presents dividends declared per share and total dividends for our Class A and Class B Common Stock and our Mandatory Convertible Preferred Stock for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Class A and Class B Common Stock Dividends declared per common share $ .05 $ .24 Total common stock dividends $ 35 $ 161 Mandatory Convertible Preferred Stock Dividends declared per preferred share $ 1.4375 $ 1.4375 Total preferred stock dividends $ 14 $ 14 Accumulated Other Comprehensive Income (Loss) The following tables summarize the changes in the components of accumulated other comprehensive loss. Cumulative Net Actuarial Accumulated At December 31, 2023 $ (504) $ (1,052) $ (1,556) Other comprehensive loss before (68) — (68) Reclassifications to net loss — 9 (a) 9 Other comprehensive income (loss) (68) 9 (59) At March 31, 2024 $ (572) $ (1,043) $ (1,615) Continuing Operations Discontinued Operations Cumulative Net Actuarial Other Comprehensive Income (Loss) (b) Accumulated At December 31, 2022 $ (680) $ (1,097) $ (30) $ (1,807) Other comprehensive income before 52 — 2 54 Reclassifications to net loss — 11 (a) — 11 Other comprehensive income 52 11 2 65 At March 31, 2023 $ (628) $ (1,086) $ (28) $ (1,742) (a) Reflects amortization of net actuarial losses (see Note 11). (b) Reflects cumulative translation adjustments. The net actuarial loss and prior service cost related to pension and other postretirement benefit plans included in other comprehensive income (loss) is net of a tax benefit of $3 million and $4 million for the three months ended March 31, 2024 and 2023, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for/benefit from income taxes represents federal, state and local, and foreign taxes on earnings (loss) from continuing operations before income taxes and equity in loss of investee companies. For the three months ended March 31, 2024, we recorded a benefit from income taxes of $172 million, reflecting an effective income tax rate of 27.1%. Included in the benefit from income taxes are the following items identified as affecting the comparability of our results, which in aggregate increased our effective income tax rate by 5.0 percentage points. Three Months Ended March 31, 2024 Impact from Items Affecting Comparability Loss Before Tax (Benefit) Provision Programming charges (Note 2) $ 1,118 $ (275) Restructuring charges (Note 3 ) $ 186 $ (46) Loss from investment $ 4 $ (1) Net discrete tax provision n/a $ 1 n/a - not applicable For the three months ended March 31, 2023, we recorded a benefit from income taxes of $381 million, reflecting an effective income tax rate of 26.0%. Included in the benefit from income taxes are the following items identified as affecting the comparability of our results, which in aggregate reduced our effective income tax rate by 1.5 percentage points. Three Months Ended March 31, 2023 Impact from Items Affecting Comparability Loss Before Tax Benefit Programming charges (Note 2) $ 1,674 $ (409) Net discrete tax benefit (a) n/a $ (30) n/a - not applicable (a) Principally reflects a tax benefit from the resolution of an income tax matter in a foreign jurisdiction. The Company and its subsidiaries file income tax returns with the Internal Revenue Service (“IRS”) and various state and local and foreign jurisdictions. For periods prior to the merger of Viacom Inc. (“Viacom”) with and into CBS Corporation (“CBS”), Viacom and CBS filed separate tax returns. For CBS, during the fourth quarter of 2023, the Company and the IRS settled the income tax audit for the 2017 and 2018 tax years with the exception of one item. This item is currently being resolved through the Mutual Agreement Procedure process. For Viacom, we are currently under examination by the IRS for the 2016 through 2019 tax years. For tax returns filed as a merged company, we are currently under examination by the IRS for the 2019 tax year. Various tax years are also currently under examination by state and local and foreign tax authorities. With respect to open tax years in all jurisdictions, we currently do not believe that it is reasonably possible that the reserve for uncertain tax positions will significantly change within the next 12 months; however, it is difficult to predict the final outcome or timing of resolution of any particular tax matter and events could cause our current expectation to change in the future. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS The following table presents the components of net periodic cost for our pension and postretirement benefit plans, which are included within “Other items, net” on the Consolidated Statements of Operations. Pension Benefits Postretirement Benefits Three Months Ended March 31, 2024 2023 2024 2023 Components of net periodic cost (a) : Interest cost $ 49 $ 51 $ 2 $ 3 Expected return on plan assets (34) (32) — — Amortization of actuarial loss (gain) (b) 20 21 (4) (4) Net periodic cost $ 35 $ 40 $ (2) $ (1) (a) Amounts reflect our domestic plans only. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The tables below set forth our financial information by reportable segment. Our operating segments, which are the same as our reportable segments, have been determined in accordance with our internal management structure, which is organized based upon products and services. Three Months Ended March 31, 2024 2023 Revenues: Advertising $ 2,582 $ 2,256 Affiliate and subscription 1,998 2,067 Licensing and other 651 870 TV Media 5,231 5,193 Advertising 520 398 Subscription 1,359 1,112 Direct-to-Consumer 1,879 1,510 Advertising 1 5 Theatrical 153 127 Licensing and other 451 456 Filmed Entertainment 605 588 Eliminations (30) (26) Total Revenues $ 7,685 $ 7,265 Revenues generated between segments are principally from intersegment arrangements for the distribution of content, rental of studio space, and advertising, as well as licensing revenues earned from third parties who license our content to our internal platforms either through a sub-license or co-production arrangement. These transactions are recorded at market value as if the sales were to third parties and are eliminated in consolidation. For content that is licensed between segments, content costs are allocated across segments based on the relative value of the distribution windows within each segment. Accordingly, no intersegment licensing revenues or profits are recorded by the licensor segment. Three Months Ended March 31, 2024 2023 Intercompany Revenues: TV Media $ 13 $ 13 Filmed Entertainment 17 13 Total Intercompany Revenues $ 30 $ 26 We present operating income excluding depreciation and amortization, stock-based compensation, restructuring charges, and programming charges, each where applicable (“Adjusted OIBDA”), as the measure of profit and loss for our operating segments in accordance with FASB guidance for segment reporting since it is the measure used by our management. Stock-based compensation is excluded from our segment measure of profit and loss because it is set and approved by our Board of Directors in consultation with corporate executive management. Three Months Ended March 31, 2024 2023 Adjusted OIBDA: TV Media $ 1,445 $ 1,306 Direct-to-Consumer (286) (511) Filmed Entertainment (3) (99) Corporate/Eliminations (124) (109) Stock-based compensation (a) (45) (39) Depreciation and amortization (100) (100) Programming charges (1,118) (1,674) Restructuring charges (186) — Operating loss (417) (1,226) Interest expense (221) (226) Interest income 45 35 Loss from investment (4) — Other items, net (38) (46) Loss from continuing operations before income taxes and (635) (1,463) Benefit from income taxes 172 381 Equity in loss of investee companies, net of tax (90) (75) Net loss from continuing operations (553) (1,157) Net earnings from discontinued operations, net of tax 9 45 Net loss (Paramount and noncontrolling interests) (544) (1,112) Net earnings attributable to noncontrolling interests (10) (6) Net loss attributable to Paramount $ (554) $ (1,118) (a) For the three months ended March 31, 2024, stock-based compensation expense of $2 million is included in “Restructuring charges”. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The following table sets forth details of net earnings from discontinued operations for the three months ended March 31, 2023, which primarily reflects the results of Simon & Schuster. On October 30, 2023, we completed the sale of Simon & Schuster to affiliates of Kohlberg Kravis Roberts & Co. During the first quarter of 2024, we recorded an additional pretax gain of $12 million on the sale as a result of a working capital adjustment. Three Months Ended March 31, 2023 Revenues $ 258 Costs and expenses: Operating 151 Selling, general and administrative 45 Total costs and expenses (a) 196 Operating income 62 Other items, net (3) Earnings from discontinued operations 59 Provision for income taxes (b) (14) Net earnings from discontinued operations, net of tax $ 45 (a) Included in total costs and expenses are amounts associated with the release of indemnification obligations for leases relating to a previously disposed business of $4 million for the three months ended March 31, 2023. (b) The tax provision includes amounts relating to previously disposed businesses of $1 million for the three months ended March 31, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees Letters of Credit and Surety Bonds At March 31, 2024, we had outstanding letters of credit and surety bonds of $2.07 billion that were not recorded on the Consolidated Balance Sheet, including $1.86 billion that was issued under a $1.9 billion standby letter of credit facility in accordance with the contractual requirements of one of our commitments. The amount outstanding under the letter of credit facility will decrease throughout 2024 as we make payments under the related contractual commitment. Letters of credit and surety bonds are primarily used as security against non-performance in the normal course of business under contractual requirements of certain of our commitments. The standby letter of credit facility, which matures in May 2026, is subject to the same principal financial covenant as the Credit Facility (see Note 6). Lease Guarantees We have certain indemnification obligations with respect to leases primarily associated with the previously discontinued operations of Famous Players Inc. Our guarantee liability relating to these lease commitments totaled $8 million at March 31, 2024, and is presented within “Other liabilities” on the Consolidated Balance Sheet. The amount of these lease commitments varies over time depending on the expiration or termination of individual underlying leases, or the related indemnification obligation, and foreign exchange rates, among other things. We may also have exposure for certain other expenses related to the leases, such as property taxes and common area maintenance. We believe our accrual is sufficient to meet any future obligations based on our consideration of available financial information, the lessees’ historical performance in meeting their lease obligations and the underlying economic factors impacting the lessees’ business models. Other In the course of our business, we both provide and receive indemnities which are intended to allocate certain risks associated with business transactions. Similarly, we may remain contingently liable for various obligations of a business that has been divested in the event that a third party does not live up to its obligations under an indemnification obligation. We record a liability for our indemnification obligations and other contingent liabilities when probable and reasonably estimable. Legal Matters General On an ongoing basis, we vigorously defend ourselves in numerous lawsuits and proceedings and respond to various investigations and inquiries from federal, state, local and international authorities (collectively, “Litigation’’). Litigation may be brought against us without merit, is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the following matters are not likely, in the aggregate, to result in a material adverse effect on our business, financial condition and results of operations. Litigation Related to Stock Offerings In August 2021, Camelot Event Driven Fund filed a putative securities class action lawsuit in New York Supreme Court, County of New York, and in November 2021, an amended complaint was filed that, among other changes, added an additional named plaintiff (as used in this paragraph, the “Complaint”). The Complaint is on behalf of investors who purchased shares of the Company’s Class B Common Stock and 5.75% Series A Mandatory Convertible Preferred Stock pursuant to public securities offerings completed in March 2021, and was filed against the Company, certain senior executives, members of our Board of Directors, and the underwriters involved in the offerings. The Complaint asserts violations of federal securities law and alleges that the offering documents contained material misstatements and omissions, including through an alleged failure to adequately disclose certain total return swap transactions involving Archegos Capital Management referenced to our securities and related alleged risks to the Company’s stock price. In December 2021, the plaintiffs filed a stipulation seeking the voluntary dismissal without prejudice of the outside director defendants from the lawsuit, which the Court subsequently ordered. On the same date, the defendants filed motions to dismiss the lawsuit, which were heard in January 2023. In February 2023, the Court dismissed all claims against the Company while allowing the claims against the underwriters to proceed. The plaintiffs and underwriter defendants appealed the ruling , and in April 2024, the New York Supreme Court, Appellate Division, First Department, ruled in our favor and upheld the decision of the trial court dismissing the case against the Company and its officers. Claims Related to Former Businesses Asbestos We are a defendant in lawsuits claiming various personal injuries related to asbestos and other materials, which allegedly occurred as a result of exposure caused by various products manufactured by Westinghouse, a predecessor, generally prior to the early 1970s. Westinghouse was neither a producer nor a manufacturer of asbestos. We are typically named as one of a large number of defendants in both state and federal cases. In the majority of asbestos lawsuits, the plaintiffs have not identified which of our products is the basis of a claim. Claims against us in which a product has been identified most commonly relate to allegations of exposure to asbestos-containing insulating material used in conjunction with turbines and electrical equipment. Claims are frequently filed and/or settled in groups, which may make the amount and timing of settlements, and the number of pending claims, subject to significant fluctuation from period to period. We do not report as pending those claims on inactive, stayed, deferred or similar dockets that some jurisdictions have established for claimants who allege minimal or no impairment. As of March 31, 2024, we had pending approximately 19,510 asbestos claims, as compared with approximately 19,970 as of December 31, 2023. During the first quarter of 2024, we received approximately 810 new claims and closed or moved to an inactive docket approximately 1,270 claims. We report claims as closed when we become aware that a dismissal order has been entered by a court or when we have reached agreement with the claimants on the material terms of a settlement. Settlement costs depend on the seriousness of the injuries that form the basis of the claims, the quality of evidence supporting the claims and other factors. Our total costs for the years 2023 and 2022 for settlement and defense of asbestos claims after insurance recoveries and net of tax were approximately $54 million and $57 million, respectively. Our costs for settlement and defense of asbestos claims may vary year to year and insurance proceeds are not always recovered in the same period as the insured portion of the expenses. Filings include claims for individuals suffering from mesothelioma, a rare cancer, the risk of which is allegedly increased by exposure to asbestos; lung cancer, a cancer which may be caused by various factors, one of which is alleged to be asbestos exposure; other cancers, and conditions that are substantially less serious, including claims brought on behalf of individuals who are asymptomatic as to an allegedly asbestos-related disease. A significant number of pending claims against us are non-cancer claims. It is difficult to predict long-term future asbestos liabilities, as events and circumstances may impact the estimate. We record an accrual for a loss contingency when it is both probable that a liability has been incurred and when the amount of the loss can be reasonably estimated. The reasonably estimable period for our long-term asbestos liability is 10 years, which we determined in consultation with a third-party firm with expertise in estimating asbestos liability and is due to the inherent uncertainties in the tort litigation system. Our estimated asbestos liability is based upon many factors, including the number of outstanding claims, estimated average cost per claim, the breakdown of claims by disease type, historic claim filings, costs per claim of resolution and the filing of new claims, and is assessed in consultation with the third-party firm. Changes in circumstances in future periods could cause our actual liabilities to be higher or lower than our current accrual. We will continue to evaluate our estimates and update our accrual as needed. Other |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Additional Financial Information Disclosure [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Cash Flow Information Three Months Ended March 31, 2024 2023 Cash paid for interest $ 229 $ 275 Cash paid (received) for income taxes: Continuing operations $ 27 $ (8) Discontinued operations $ — $ 2 Noncash additions to operating lease assets $ 45 $ 58 Lease Income We enter into operating leases for the use of our owned production facilities and office buildings. Lease payments received under these agreements consist of fixed payments for the rental of space and certain building operating costs, as well as variable payments based on usage of production facilities and services, and escalating costs of building operations. We recorded total lease income, including both fixed and variable amounts, of $6 million and $14 million for the three months ended March 31, 2024 and 2023, respectively. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation— The accompanying unaudited consolidated financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the more detailed financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Use of Estimates | Use of Estimates— |
Net Earnings (Loss) per Common Share | Net Earnings (Loss) per Common Share— Basic net earnings (loss) per share (“EPS”) is based upon net earnings (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net earnings (loss) available to common stockholders is calculated as net earnings (loss) from continuing operations or net earnings (loss), as applicable, adjusted to include a reduction for dividends recorded during the applicable period on our 5.75% Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”). |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the Financial Accounting Standards Board (“FASB”) issued updated guidance for segment reporting, which requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of segment profit or loss (“segment measure”), as well as the disclosure of the other segment items comprising the difference between segment revenues less these significant segment expenses and the segment measure. The update also requires an entity to disclose the title and position of the CODM and to describe how the CODM utilizes the segment measure to assess segment performance and allocate resources. In addition, the update aligns the interim disclosure requirements for segment profit or loss and assets with the annual requirements. The update is effective for us for our annual report for the year ended December 31, 2024, and for interim periods thereafter and is required to be applied retrospectively. Income Taxes |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation for Calculation of Basic and Diluted EPS | The table below presents a reconciliation of net loss from continuing operations and net loss to the amounts used in the calculations of basic and diluted EPS. Three Months Ended March 31, 2024 2023 Amounts attributable to Paramount: Net loss from continuing operations $ (563) $ (1,163) Preferred stock dividends (14) (14) Net loss from continuing operations for basic and diluted EPS calculation $ (577) $ (1,177) Amounts attributable to Paramount: Net loss $ (554) $ (1,118) Preferred stock dividends (14) (14) Net loss for basic and diluted EPS calculation $ (568) $ (1,132) |
PROGRAMMING AND OTHER INVENTO_2
PROGRAMMING AND OTHER INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Programming and Other Inventory, Current | The following table presents our programming and other inventory at March 31, 2024 and December 31, 2023, grouped by type and predominant monetization strategy. At At March 31, 2024 December 31, 2023 Film Group Monetization: Acquired program rights, including prepaid sports rights $ 2,536 $ 3,318 Internally-produced television and film programming: Released 6,494 6,666 In process and other 1,859 2,028 Individual Monetization: Acquired libraries 339 348 Films: Released 727 624 Completed, not yet released 31 179 In process and other 1,391 1,211 Internally-produced television programming: Released 476 496 In process and other 429 361 Home entertainment 30 34 Total programming and other inventory 14,312 15,265 Less current portion 892 1,414 Total noncurrent programming and other inventory $ 13,420 $ 13,851 |
Summary of Programming and Other Inventory, Noncurrent | The following table presents our programming and other inventory at March 31, 2024 and December 31, 2023, grouped by type and predominant monetization strategy. At At March 31, 2024 December 31, 2023 Film Group Monetization: Acquired program rights, including prepaid sports rights $ 2,536 $ 3,318 Internally-produced television and film programming: Released 6,494 6,666 In process and other 1,859 2,028 Individual Monetization: Acquired libraries 339 348 Films: Released 727 624 Completed, not yet released 31 179 In process and other 1,391 1,211 Internally-produced television programming: Released 476 496 In process and other 429 361 Home entertainment 30 34 Total programming and other inventory 14,312 15,265 Less current portion 892 1,414 Total noncurrent programming and other inventory $ 13,420 $ 13,851 |
Programming and Production Costs | The following table presents amortization of our television and film programming and production costs, which is included within “ Operating expenses Three Months Ended March 31, 2024 2023 Acquired program rights $ 1,782 $ 1,414 Internally-produced television and film programming, and acquired libraries: Individual monetization $ 298 $ 396 Film group monetization $ 1,060 $ 1,368 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | During the three months ended March 31, 2024, we recorded the following restructuring charges. Three Months Ended March 31, 2024 Severance (a) $ 155 Exit costs 31 Restructuring charges $ 186 |
Rollforward of Restructuring Liability | The following is a rollforward of our restructuring liability, which is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheets. The restructuring liability at March 31, 2024, which principally relates to severance payments, is expected to be substantially paid by the end of 2024. Balance at 2024 Activity Balance at December 31, 2023 Charges (a) Payments March 31, 2024 TV Media $ 162 $ 91 $ (50) $ 203 Direct-to-Consumer 6 14 (5) 15 Filmed Entertainment 14 18 (6) 26 Corporate 10 30 (7) 33 Total $ 192 $ 153 $ (68) $ 277 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present the amounts recorded in our consolidated financial statements related to these transactions. Three Months Ended March 31, 2024 2023 Revenues $ 58 $ 108 Operating costs (a) $ 18 $ 4 (a) Includes costs expensed as operating expenses in each year. 2024 also includes costs capitalized in programming assets during the period. At At March 31, 2024 December 31, 2023 Receivables, net $ 180 $ 193 Other assets (Receivables, noncurrent) $ 87 $ 101 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below presents our revenues disaggregated into categories based on the nature of such revenues. See Note 12 for revenues by segment disaggregated into these categories. Three Months Ended March 31, 2024 2023 Revenues by Type: Advertising $ 3,096 $ 2,651 Affiliate and subscription 3,357 3,179 Theatrical 153 127 Licensing and other 1,079 1,308 Total Revenues $ 7,685 $ 7,265 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt consists of the following: At At March 31, 2024 December 31, 2023 4.75% Senior Notes due 2025 $ 125 $ 125 4.0% Senior Notes due 2026 345 345 3.45% Senior Notes due 2026 86 86 2.90% Senior Notes due 2027 581 581 3.375% Senior Notes due 2028 497 497 3.70% Senior Notes due 2028 495 495 4.20% Senior Notes due 2029 496 496 7.875% Senior Debentures due 2030 830 830 4.95% Senior Notes due 2031 1,230 1,229 4.20% Senior Notes due 2032 978 977 5.50% Senior Debentures due 2033 428 428 4.85% Senior Debentures due 2034 87 87 6.875% Senior Debentures due 2036 1,072 1,071 6.75% Senior Debentures due 2037 76 75 5.90% Senior Notes due 2040 298 298 4.50% Senior Debentures due 2042 45 45 4.85% Senior Notes due 2042 489 489 4.375% Senior Debentures due 2043 1,140 1,138 4.875% Senior Debentures due 2043 18 18 5.85% Senior Debentures due 2043 1,234 1,234 5.25% Senior Debentures due 2044 345 345 4.90% Senior Notes due 2044 541 541 4.60% Senior Notes due 2045 591 591 4.95% Senior Notes due 2050 948 948 6.25% Junior Subordinated Debentures due 2057 643 643 6.375% Junior Subordinated Debentures due 2062 989 989 Obligations under finance leases 1 1 Total debt (a) 14,608 14,602 Less current portion 1 1 Total long-term debt, net of current portion $ 14,607 $ 14,601 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Gains Recognized on Derivative Financial Instruments | Gains recognized on derivative financial instruments were as follows: Three Months Ended March 31, 2024 2023 Financial Statement Account Non-designated foreign exchange contracts $ 9 $ 1 Other items, net |
Fair Value Measurements | The table below presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023. These assets and liabilities have been categorized according to the three-level fair value hierarchy established by the FASB, which prioritizes the inputs used in measuring fair value. Level 1 is based on publicly quoted prices for the asset or liability in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset or liability in inactive markets or quoted prices for similar assets or liabilities. Level 3 is based on unobservable inputs reflecting our own assumptions about the assumptions that market participants would use in pricing the asset or liability. All of our assets and liabilities that are measured at fair value on a recurring basis use Level 2 inputs. The fair value of foreign currency hedges is determined based on the present value of future cash flows using observable inputs including foreign currency exchange rates. The fair value of deferred compensation liabilities is determined based on the fair value of the investments elected by employees. At At March 31, 2024 December 31, 2023 Assets: Foreign currency hedges $ 22 $ 40 Total Assets $ 22 $ 40 Liabilities: Deferred compensation $ 367 $ 366 Foreign currency hedges 18 30 Total Liabilities $ 385 $ 396 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entity Disclosure [Abstract] | |
Schedule of Variable Interest Entities | The following tables present the amounts recorded in our consolidated financial statements related to our consolidated VIEs. At At March 31, 2024 December 31, 2023 Total assets $ 1,874 $ 1,886 Total liabilities $ 215 $ 232 Three Months Ended March 31, 2024 2023 Revenues $ 137 $ 145 Operating loss $ (34) $ (31) |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of Common and Preferred Stock Dividends | The following table presents dividends declared per share and total dividends for our Class A and Class B Common Stock and our Mandatory Convertible Preferred Stock for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Class A and Class B Common Stock Dividends declared per common share $ .05 $ .24 Total common stock dividends $ 35 $ 161 Mandatory Convertible Preferred Stock Dividends declared per preferred share $ 1.4375 $ 1.4375 Total preferred stock dividends $ 14 $ 14 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in the components of accumulated other comprehensive loss. Cumulative Net Actuarial Accumulated At December 31, 2023 $ (504) $ (1,052) $ (1,556) Other comprehensive loss before (68) — (68) Reclassifications to net loss — 9 (a) 9 Other comprehensive income (loss) (68) 9 (59) At March 31, 2024 $ (572) $ (1,043) $ (1,615) Continuing Operations Discontinued Operations Cumulative Net Actuarial Other Comprehensive Income (Loss) (b) Accumulated At December 31, 2022 $ (680) $ (1,097) $ (30) $ (1,807) Other comprehensive income before 52 — 2 54 Reclassifications to net loss — 11 (a) — 11 Other comprehensive income 52 11 2 65 At March 31, 2023 $ (628) $ (1,086) $ (28) $ (1,742) (a) Reflects amortization of net actuarial losses (see Note 11). (b) Reflects cumulative translation adjustments. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Benefit Amounts Affecting Comparability of Results | Included in the benefit from income taxes are the following items identified as affecting the comparability of our results, which in aggregate increased our effective income tax rate by 5.0 percentage points. Three Months Ended March 31, 2024 Impact from Items Affecting Comparability Loss Before Tax (Benefit) Provision Programming charges (Note 2) $ 1,118 $ (275) Restructuring charges (Note 3 ) $ 186 $ (46) Loss from investment $ 4 $ (1) Net discrete tax provision n/a $ 1 n/a - not applicable Three Months Ended March 31, 2023 Impact from Items Affecting Comparability Loss Before Tax Benefit Programming charges (Note 2) $ 1,674 $ (409) Net discrete tax benefit (a) n/a $ (30) n/a - not applicable (a) Principally reflects a tax benefit from the resolution of an income tax matter in a foreign jurisdiction. |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost | The following table presents the components of net periodic cost for our pension and postretirement benefit plans, which are included within “Other items, net” on the Consolidated Statements of Operations. Pension Benefits Postretirement Benefits Three Months Ended March 31, 2024 2023 2024 2023 Components of net periodic cost (a) : Interest cost $ 49 $ 51 $ 2 $ 3 Expected return on plan assets (34) (32) — — Amortization of actuarial loss (gain) (b) 20 21 (4) (4) Net periodic cost $ 35 $ 40 $ (2) $ (1) (a) Amounts reflect our domestic plans only. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Revenues by Segment | The tables below set forth our financial information by reportable segment. Our operating segments, which are the same as our reportable segments, have been determined in accordance with our internal management structure, which is organized based upon products and services. Three Months Ended March 31, 2024 2023 Revenues: Advertising $ 2,582 $ 2,256 Affiliate and subscription 1,998 2,067 Licensing and other 651 870 TV Media 5,231 5,193 Advertising 520 398 Subscription 1,359 1,112 Direct-to-Consumer 1,879 1,510 Advertising 1 5 Theatrical 153 127 Licensing and other 451 456 Filmed Entertainment 605 588 Eliminations (30) (26) Total Revenues $ 7,685 $ 7,265 |
Intercompany Revenues by Segment | Three Months Ended March 31, 2024 2023 Intercompany Revenues: TV Media $ 13 $ 13 Filmed Entertainment 17 13 Total Intercompany Revenues $ 30 $ 26 |
Adjusted OIBDA by Segment and Reconciliation to Net Earnings (Loss) | Three Months Ended March 31, 2024 2023 Adjusted OIBDA: TV Media $ 1,445 $ 1,306 Direct-to-Consumer (286) (511) Filmed Entertainment (3) (99) Corporate/Eliminations (124) (109) Stock-based compensation (a) (45) (39) Depreciation and amortization (100) (100) Programming charges (1,118) (1,674) Restructuring charges (186) — Operating loss (417) (1,226) Interest expense (221) (226) Interest income 45 35 Loss from investment (4) — Other items, net (38) (46) Loss from continuing operations before income taxes and (635) (1,463) Benefit from income taxes 172 381 Equity in loss of investee companies, net of tax (90) (75) Net loss from continuing operations (553) (1,157) Net earnings from discontinued operations, net of tax 9 45 Net loss (Paramount and noncontrolling interests) (544) (1,112) Net earnings attributable to noncontrolling interests (10) (6) Net loss attributable to Paramount $ (554) $ (1,118) (a) For the three months ended March 31, 2024, stock-based compensation expense of $2 million is included in “Restructuring charges”. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Net Earnings from Discontinued Operations | The following table sets forth details of net earnings from discontinued operations for the three months ended March 31, 2023, which primarily reflects the results of Simon & Schuster. On October 30, 2023, we completed the sale of Simon & Schuster to affiliates of Kohlberg Kravis Roberts & Co. During the first quarter of 2024, we recorded an additional pretax gain of $12 million on the sale as a result of a working capital adjustment. Three Months Ended March 31, 2023 Revenues $ 258 Costs and expenses: Operating 151 Selling, general and administrative 45 Total costs and expenses (a) 196 Operating income 62 Other items, net (3) Earnings from discontinued operations 59 Provision for income taxes (b) (14) Net earnings from discontinued operations, net of tax $ 45 (a) Included in total costs and expenses are amounts associated with the release of indemnification obligations for leases relating to a previously disposed business of $4 million for the three months ended March 31, 2023. (b) The tax provision includes amounts relating to previously disposed businesses of $1 million for the three months ended March 31, 2023. |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Additional Financial Information Disclosure [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2024 2023 Cash paid for interest $ 229 $ 275 Cash paid (received) for income taxes: Continuing operations $ 27 $ (8) Discontinued operations $ — $ 2 Noncash additions to operating lease assets $ 45 $ 58 |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Stock Options and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 30 | 21 | |
Mandatory Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10 | 10 | |
Mandatory Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock, percentage | 5.75% | 5.75% |
BASIS OF PRESENTATION - Reconci
BASIS OF PRESENTATION - Reconciliation for Calculation of Basic and Diluted EPS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amounts attributable to Paramount: | ||
Net loss from continuing operations | $ (563) | $ (1,163) |
Preferred stock dividends | (14) | (14) |
Net loss from continuing operations for basic EPS calculation | (577) | (1,177) |
Net loss from continuing operations for diluted EPS calculation | (577) | (1,177) |
Amounts attributable to Paramount: | ||
Net loss | (554) | (1,118) |
Preferred stock dividends | (14) | (14) |
Net loss for basic EPS calculation | (568) | (1,132) |
Net loss for diluted EPS calculation | $ (568) | $ (1,132) |
PROGRAMMING AND OTHER INVENTO_3
PROGRAMMING AND OTHER INVENTORY - Summary of Programming and Other Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Acquired program rights, including prepaid sports rights, film group monetization | $ 2,536 | $ 3,318 |
Acquired libraries, individual monetization | 339 | 348 |
Home entertainment | 30 | 34 |
Total programming and other inventory | 14,312 | 15,265 |
Less current portion | 892 | 1,414 |
Total noncurrent programming and other inventory | 13,420 | 13,851 |
Internally Produced Television and Film Programming | ||
Inventory [Line Items] | ||
Released, film group monetization | 6,494 | 6,666 |
In process and other, film group monetization | 1,859 | 2,028 |
Released, individual monetization | 476 | 496 |
In process and other, individual monetization | 429 | 361 |
Films | ||
Inventory [Line Items] | ||
Released, individual monetization | 727 | 624 |
Completed, not yet released, individual monetization | 31 | 179 |
In process and other, individual monetization | $ 1,391 | $ 1,211 |
PROGRAMMING AND OTHER INVENTO_4
PROGRAMMING AND OTHER INVENTORY - Amortization of Programming and Production Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | ||
Acquired program rights | $ 1,782 | $ 1,414 |
Internally-produced television and film programming, and acquired libraries: | ||
Individual monetization | 298 | 396 |
Film group monetization | $ 1,060 | $ 1,368 |
PROGRAMMING AND OTHER INVENTO_5
PROGRAMMING AND OTHER INVENTORY - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2024 | |
Inventory [Line Items] | |||
Entertainment, License Agreement for Program Material, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating | Operating | |
Film, Monetized in Film Group, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating | Operating | |
Film, Monetized on Its Own, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating | Operating | |
Programming charges | $ 1,118 | $ 1,674 | |
Content impairment | 909 | 1,450 | |
Development cost write-offs and contract termination costs | $ 209 | $ 225 | |
Forecast | |||
Inventory [Line Items] | |||
Programming charges | $ 250 |
RESTRUCTURING CHARGES - Restruc
RESTRUCTURING CHARGES - Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 186 | $ 0 |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 155 | |
Exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 31 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 186 | $ 0 |
RESTRUCTURING CHARGES - Rollfor
RESTRUCTURING CHARGES - Rollforward of Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 192 | |
Restructuring charges | 186 | $ 0 |
Payments | (68) | |
Restructuring reserve, ending balance | 277 | |
Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 153 | |
Stock-based compensation expense | 2 | |
Lease impairments | 31 | |
Operating Segments | TV Media | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 162 | |
Payments | (50) | |
Restructuring reserve, ending balance | 203 | |
Operating Segments | TV Media | Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 91 | |
Operating Segments | Direct-to-Consumer | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 6 | |
Payments | (5) | |
Restructuring reserve, ending balance | 15 | |
Operating Segments | Direct-to-Consumer | Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 14 | |
Operating Segments | Filmed Entertainment | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 14 | |
Payments | (6) | |
Restructuring reserve, ending balance | 26 | |
Operating Segments | Filmed Entertainment | Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 18 | |
Corporate | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 10 | |
Payments | (7) | |
Restructuring reserve, ending balance | 33 | |
Corporate | Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 30 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) | Mar. 31, 2024 trustee |
Related Party Transaction [Line Items] | |
General Trust ownership in NAI (percentage) | 80% |
NAI | |
Related Party Transaction [Line Items] | |
NAI ownership of common stock, Class A common stock (percentage) | 77.40% |
NAI ownership of Class A and Class B common stock on a combined basis (percentage) | 9.70% |
Number of trustees | 7 |
Number of beneficiary trustees | 2 |
RELATED PARTIES - Schedule of R
RELATED PARTIES - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 7,685 | $ 7,265 | |
Operating costs | 5,036 | 4,964 | |
Receivables, net | 7,096 | $ 7,115 | |
Other assets (Receivables, noncurrent) | 3,622 | 3,793 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Revenues | 58 | 108 | |
Operating costs | 18 | $ 4 | |
Receivables, net | 180 | 193 | |
Other assets (Receivables, noncurrent) | $ 87 | $ 101 |
REVENUES - Schedule of Disaggre
REVENUES - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 7,685 | $ 7,265 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,096 | 2,651 |
Affiliate and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,357 | 3,179 |
Theatrical | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 153 | 127 |
Licensing and other | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 1,079 | $ 1,308 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Allowance for credit losses | $ 120 | $ 120 | |
Contract liabilities | 700 | 800 | |
Revenue recognized | 300 | $ 300 | |
Unrecognized revenues | 7,000 | ||
Revenue recognized for satisfaction of performance obligations | 100 | $ 100 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unrecognized revenues | $ 3,000 | ||
Remaining performance obligation period | 9 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unrecognized revenues | $ 2,000 | ||
Remaining performance obligation period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unrecognized revenues | $ 1,000 | ||
Remaining performance obligation period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unrecognized revenues | $ 1,000 | ||
Remaining performance obligation period | |||
Other Noncurrent Assets | |||
Disaggregation of Revenue [Line Items] | |||
Noncurrent receivables | $ 1,220 | $ 1,390 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total long-term debt, net of current portion, Less current portion | Total long-term debt, net of current portion, Less current portion |
Obligations under finance leases | $ 1 | $ 1 |
Total debt | 14,608 | 14,602 |
Less current portion | 1 | 1 |
Total long-term debt, net of current portion | 14,607 | 14,601 |
Net unamortized discount on senior debt | 415 | 419 |
Unamortized deferred financing costs | 79 | 81 |
Face value of debt | $ 15,100 | 15,100 |
4.75% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.75% | |
Carrying value of senior debt | $ 125 | 125 |
4.0% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4% | |
Carrying value of senior debt | $ 345 | 345 |
3.45% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.45% | |
Carrying value of senior debt | $ 86 | 86 |
2.90% Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.90% | |
Carrying value of senior debt | $ 581 | 581 |
3.375% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.375% | |
Carrying value of senior debt | $ 497 | 497 |
3.70% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.70% | |
Carrying value of senior debt | $ 495 | 495 |
4.20% Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.20% | |
Carrying value of senior debt | $ 496 | 496 |
7.875% Senior Debentures due 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.875% | |
Carrying value of senior debt | $ 830 | 830 |
4.95% Senior Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.95% | |
Carrying value of senior debt | $ 1,230 | 1,229 |
4.20% Senior Notes due 2032 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.20% | |
Carrying value of senior debt | $ 978 | 977 |
5.50% Senior Debentures due 2033 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.50% | |
Carrying value of senior debt | $ 428 | 428 |
4.85% Senior Debentures due 2034 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.85% | |
Carrying value of senior debt | $ 87 | 87 |
6.875% Senior Debentures due 2036 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.875% | |
Carrying value of senior debt | $ 1,072 | 1,071 |
6.75% Senior Debentures due 2037 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.75% | |
Carrying value of senior debt | $ 76 | 75 |
5.90% Senior Notes due 2040 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.90% | |
Carrying value of senior debt | $ 298 | 298 |
4.50% Senior Debentures due 2042 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.50% | |
Carrying value of senior debt | $ 45 | 45 |
4.85% Senior Notes due 2042 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.85% | |
Carrying value of senior debt | $ 489 | 489 |
4.375% Senior Debentures due 2043 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.375% | |
Carrying value of senior debt | $ 1,140 | 1,138 |
4.875% Senior Debentures due 2043 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.875% | |
Carrying value of senior debt | $ 18 | 18 |
5.85% Senior Debentures due 2043 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.85% | |
Carrying value of senior debt | $ 1,234 | 1,234 |
5.25% Senior Debentures due 2044 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.25% | |
Carrying value of senior debt | $ 345 | 345 |
4.90% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.90% | |
Carrying value of senior debt | $ 541 | 541 |
4.60% Senior Notes due 2045 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.60% | |
Carrying value of senior debt | $ 591 | 591 |
4.95% Senior Notes due 2050 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.95% | |
Carrying value of senior debt | $ 948 | 948 |
6.25% Junior Subordinated Debentures due 2057 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.25% | |
Junior subordinated debentures | $ 643 | 643 |
6.375% Junior Subordinated Debentures due 2062 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.375% | |
Junior subordinated debentures | $ 989 | $ 989 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | Mar. 31, 2026 | Mar. 31, 2025 | Sep. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 0 | $ 0 | |||
Revolving Credit Facility | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity under credit facility | 3,500 | ||||
Borrowings outstanding | 0 | ||||
Remaining borrowing capacity under credit facility | 3,500 | ||||
Revolving Credit Facility | Credit Facility | Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Maximum consolidated leverage ratio | 4.5 | 5.5 | 5.75 | ||
Decrease in maximum consolidated leverage ratio | 0.25 | ||||
Maximum amount of unrestricted cash and cash equivalents netted against Consolidated Indebtedness | $ 1,500 | ||||
Revolving Credit Facility | Miramax Credit Facility, Matures November 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity under credit facility | 50 | 50 | |||
Outstanding bank borrowings | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) ₨ in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 INR (₨) | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | |||
Carrying value of notes and debentures | $ 14,610 | $ 14,600 | |
Fair value of debt | 12,700 | 13,600 | |
Investments without readily determinable fair value | $ 607 | 612 | |
Foreign exchange contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Maximum derivative contract term | 24 months | ||
Notional amount of derivative | $ 3,120 | 2,720 | |
Foreign exchange contract | Cash Flow Hedging | Future Production Costs | |||
Derivative [Line Items] | |||
Notional amount of derivative | 2,570 | 2,200 | |
Foreign exchange contract | Cash Flow Hedging | Other Foreign Currency | |||
Derivative [Line Items] | |||
Notional amount of derivative | $ 546 | $ 523 | |
Viacom18 | |||
Derivative [Line Items] | |||
Ownership interest to be sold (percent) | 13% | 13% | |
Aggregate purchase price | $ 517 | ₨ 42,860 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Gains Recognized on Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign exchange contract | ||
Derivatives [Line Items] | ||
Gains on non-designated foreign exchange contracts | $ 9 | $ 1 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Foreign currency hedges | $ 22 | $ 40 |
Total Assets | 22 | 40 |
Liabilities: | ||
Deferred compensation | 367 | 366 |
Foreign currency hedges | 18 | 30 |
Total Liabilities | $ 385 | $ 396 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 52,027 | $ 53,543 | |
Revenues | 7,685 | $ 7,265 | |
Operating loss | (417) | (1,226) | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,874 | 1,886 | |
Total liabilities | 215 | $ 232 | |
Revenues | 137 | 145 | |
Operating loss | $ (34) | $ (31) |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | ||
Apr. 01, 2024 shares | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | |
Class of Stock [Line Items] | |||
Tax benefit | $ | $ 3 | $ 4 | |
Mandatory Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock outstanding (in shares) | 9.7 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 0.3 | ||
Class B Common Stock | Subsequent Event | |||
Class of Stock [Line Items] | |||
Convertible rate | 1.1765 | ||
Stock issued (in shares) | 11.5 |
STOCKHOLDERS_ EQUITY - Summary
STOCKHOLDERS’ EQUITY - Summary of Common Stock Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Class of Stock [Line Items] | ||
Total common stock dividends | $ 35 | $ 161 |
Total preferred stock dividends | $ 14 | $ 14 |
Class A and Class B Common Stock | ||
Class of Stock [Line Items] | ||
Dividends declared per common share (in dollars per share) | $ 0.05 | $ 0.24 |
Total common stock dividends | $ 35 | $ 161 |
Mandatory Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividends declared per preferred share (in dollars per share) | $ 1.4375 | $ 1.4375 |
Total preferred stock dividends | $ 14 | $ 14 |
STOCKHOLDERS_ EQUITY - Accumula
STOCKHOLDERS’ EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | $ 22,526 | |
Ending balance | 21,894 | |
Cumulative Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (504) | $ (680) |
Other comprehensive income (loss) before reclassifications | (68) | 52 |
Reclassifications to net loss | 0 | 0 |
Other comprehensive income (loss) | (68) | 52 |
Ending balance | (572) | (628) |
Net Actuarial Loss and Prior Service Cost | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (1,052) | (1,097) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassifications to net loss | 9 | 11 |
Other comprehensive income (loss) | 9 | 11 |
Ending balance | (1,043) | (1,086) |
Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (30) | |
Other comprehensive income (loss) before reclassifications | 2 | |
Reclassifications to net loss | 0 | |
Other comprehensive income (loss) | 2 | |
Ending balance | (28) | |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (1,556) | (1,807) |
Other comprehensive income (loss) before reclassifications | (68) | 54 |
Reclassifications to net loss | 9 | 11 |
Other comprehensive income (loss) | (59) | 65 |
Ending balance | $ (1,615) | $ (1,742) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Benefit from income taxes | $ 172 | $ 381 |
Effective income tax rate | 27.10% | 26% |
Percentage point decrease in effective tax rate | 5% | (1.50%) |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Benefit Amounts Affecting Comparability of Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Impact from Items Affecting Comparability | ||
Loss before income taxes, programming charges | $ 1,118 | $ 1,674 |
Loss before income taxes, restructuring charges | 186 | 0 |
Loss before income taxes, loss from investment | 4 | 0 |
Tax (benefit) provision, programming charges | (275) | (409) |
Tax (benefit) provision, restructuring charges | (46) | |
Tax (benefit) provision, loss from investment | (1) | |
Net discrete tax (benefit) provision | $ 1 | $ (30) |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 49 | $ 51 |
Expected return on plan assets | (34) | (32) |
Amortization of actuarial loss (gain) | 20 | 21 |
Net periodic cost | 35 | 40 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 2 | 3 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial loss (gain) | (4) | (4) |
Net periodic cost | $ (2) | $ (1) |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 7,685 | $ 7,265 |
Operating Segments | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 5,231 | 5,193 |
Operating Segments | Direct-to-Consumer | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 1,879 | 1,510 |
Operating Segments | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 605 | 588 |
Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | (30) | (26) |
Eliminations | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | (13) | (13) |
Eliminations | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | (17) | (13) |
Advertising | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 3,096 | 2,651 |
Advertising | Operating Segments | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 2,582 | 2,256 |
Advertising | Operating Segments | Direct-to-Consumer | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 520 | 398 |
Advertising | Operating Segments | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 1 | 5 |
Affiliate and subscription | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 3,357 | 3,179 |
Affiliate and subscription | Operating Segments | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 1,998 | 2,067 |
Affiliate and subscription | Operating Segments | Direct-to-Consumer | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 1,359 | 1,112 |
Licensing and other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 1,079 | 1,308 |
Licensing and other | Operating Segments | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 651 | 870 |
Licensing and other | Operating Segments | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 451 | 456 |
Theatrical | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 153 | 127 |
Theatrical | Operating Segments | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 153 | $ 127 |
SEGMENT INFORMATION - Intercomp
SEGMENT INFORMATION - Intercompany Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Intercompany Revenues | $ (7,685) | $ (7,265) |
Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Intercompany Revenues | 30 | 26 |
Eliminations | TV Media | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Intercompany Revenues | 13 | 13 |
Eliminations | Filmed Entertainment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Intercompany Revenues | $ 17 | $ 13 |
SEGMENT INFORMATION - Adjusted
SEGMENT INFORMATION - Adjusted OIBDA by Segment and Reconciliation to Net Earnings (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation | $ (47) | $ (39) |
Depreciation and amortization | (100) | (100) |
Programming charges | (1,118) | (1,674) |
Restructuring charges | (186) | 0 |
Operating loss | (417) | (1,226) |
Interest expense | (221) | (226) |
Interest income | 45 | 35 |
Loss from investment | (4) | 0 |
Other items, net | (38) | (46) |
Loss from continuing operations before income taxes and equity in loss of investee companies | (635) | (1,463) |
Benefit from income taxes | 172 | 381 |
Equity in loss of investee companies, net of tax | (90) | (75) |
Net loss from continuing operations | (553) | (1,157) |
Net earnings from discontinued operations, net of tax | 9 | 45 |
Net loss (Paramount and noncontrolling interests) | (544) | (1,112) |
Net earnings attributable to noncontrolling interests | (10) | (6) |
Net loss attributable to Paramount | (554) | (1,118) |
Restructuring Charges | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | (153) | |
Operating Segments | TV Media | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA | 1,445 | 1,306 |
Operating Segments | TV Media | Restructuring Charges | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | (91) | |
Operating Segments | Direct-to-Consumer | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA | (286) | (511) |
Operating Segments | Direct-to-Consumer | Restructuring Charges | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | (14) | |
Operating Segments | Filmed Entertainment | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA | (3) | (99) |
Operating Segments | Filmed Entertainment | Restructuring Charges | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | (18) | |
Corporate/Eliminations | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA | (124) | (109) |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation | (45) | (39) |
Depreciation and amortization | (100) | (100) |
Programming charges | (1,118) | (1,674) |
Restructuring charges | (186) | $ 0 |
Segment Reconciling Items | Restructuring Charges | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation | $ (2) |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Discontinued Operations, Disposed of by Sale | Simon & Schuster | |
Discontinued Operations [Line Items] | |
Gain on sale of business | $ 12 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Net Earnings from Discontinued Operations (Details) - Discontinued operations $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Discontinued Operations [Line Items] | |
Revenues | $ 258 |
Costs and expenses: | |
Operating | 151 |
Selling, general and administrative | 45 |
Total costs and expenses | 196 |
Operating income | 62 |
Other items, net | (3) |
Earnings from discontinued operations | 59 |
Provision for income taxes | (14) |
Net earnings from discontinued operations, net of tax | 45 |
Previous disposals, cost and expenses | 4 |
Previous disposals, income tax provision | $ 1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) claim | Dec. 31, 2023 USD ($) claim | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||
Outstanding letters of credit and surety bonds | $ 2,070 | ||
Cost for settlement and defense of asbestos claims, net of insurance recoveries and tax benefits | $ 54 | $ 57 | |
Reasonably estimable period for long-term asbestos liability | 10 years | ||
Asbestos Claims | |||
Loss Contingencies [Line Items] | |||
Number of pending asbestos claims | claim | 19,510 | 19,970 | |
Number of new asbestos claims | claim | 810 | ||
Number of asbestos claims closed or moved to inactive docket | claim | 1,270 | ||
Mandatory Convertible Preferred Stock | |||
Loss Contingencies [Line Items] | |||
Preferred stock, percentage | 5.75% | 5.75% | |
Famous Players | |||
Loss Contingencies [Line Items] | |||
Estimated guarantee liability | $ 8 | ||
Standby Letter of Credit Facility | |||
Loss Contingencies [Line Items] | |||
Outstanding letters of credit and surety bonds | 1,860 | ||
Maximum borrowing capacity under credit facility | $ 1,900 |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash and Cash Equivalents [Line Items] | ||
Cash paid for interest | $ 229 | $ 275 |
Noncash additions to operating lease assets | 45 | 58 |
Continuing operations | ||
Cash and Cash Equivalents [Line Items] | ||
Cash paid (received) for income taxes: | 27 | (8) |
Discontinued operations | ||
Cash and Cash Equivalents [Line Items] | ||
Cash paid (received) for income taxes: | $ 0 | $ 2 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Additional Financial Information Disclosure [Abstract] | ||
Lease income | $ 6 | $ 14 |