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REPORTABLE SEGMENTS
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company’s operating segments are determined based on: (i) financial information reviewed by its chief operating decision maker (“CODM”), the Chief Executive Officer (“CEO”), (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content licenses. The Company generally records inter-segment transactions of content licenses at market value. The Company does not report assets by segment because it is not used to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its operating segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding:
•employee share-based compensation;
•depreciation and amortization;
•restructuring and facility consolidation;
•certain impairment charges;
•gains and losses on business and asset dispositions;
•third-party transaction and integration costs;
•amortization of purchase accounting fair value step-up for content;
•amortization of capitalized interest for content; and
•other items impacting comparability.
The CODM uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2024. The impact to prior periods was immaterial.
The tables below present summarized financial information for each of the Company’s reportable segments, corporate, and inter-segment eliminations, and other (in millions).
Revenues
Year Ended December 31,
202420232022
Studios$11,607 $12,192 $9,731 
Networks20,175 21,244 19,348 
DTC10,313 10,154 7,274 
Corporate8 — 30 
Inter-segment eliminations (2,782)(2,269)(2,566)
Total revenues$39,321 $41,321 $33,817 
Reconciliation of Revenues to Segment Adjusted EBITDA
Year Ended December 31, 2024
StudiosNetworksDTC
Revenues$11,607 $20,175 $10,313 
Less:
Content expense (a)
7,260 7,135 6,183 
Personnel expense (b)
943 2,153 773 
Marketing expense1,064 454 1,147 
Other segment expenses (c)
688 2,284 1,533 
Segment Adjusted EBITDA$1,652 $8,149 $677 

Year Ended December 31, 2023
StudiosNetworksDTC
Revenues$12,192 $21,244 $10,154 
Less:
Content expense (a)
7,112 7,140 6,454 
Personnel expense (b)
927 2,173 844 
Marketing expense1,268 439 1,313 
Other segment expenses (c)
702 2,429 1,440 
Segment Adjusted EBITDA$2,183 $9,063 $103 

Year Ended December 31, 2022
StudiosNetworksDTC
Revenues$9,731 $19,348 $7,274 
Less:
Content expense (a)
6,208 6,061 5,727 
Personnel expense (b)
712 2,124 837 
Marketing expense647 505 1,583 
Other segment expenses (c)
392 1,933 723 
Segment Adjusted EBITDA$1,772 $8,725 $(1,596)
(a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.
(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).
(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment items exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.
Reconciliation of Segment Adjusted EBITDA to loss before income taxes
Year Ended December 31,
202420232022
Studios$1,652 $2,183 $1,772 
Networks8,149 9,063 8,725 
DTC677 103 (1,596)
Segment Adjusted EBITDA$10,478 $11,349 $8,901 
Depreciation and amortization7,037 7,985 7,193 
Employee share-based compensation546 488 410 
Restructuring and other charges447 585 3,757 
Transaction and integration costs242 162 1,195 
Facility consolidation costs4 32 — 
Impairment and amortization of fair value step-up for content1,139 2,373 2,416 
Amortization of capitalized interest for content46 46 — 
Impairments and loss on dispositions9,603 77 117 
Corporate1,260 1,242 1,200 
Inter-segment eliminations 186 (93)(17)
Operating loss(10,032)(1,548)(7,370)
Other (income) expense, net(150)29 (347)
Loss from equity investees, net121 82 160 
Gain on extinguishment of debt(632)(17)— 
Interest expense, net2,017 2,221 1,777 
Loss before income taxes$(11,388)$(3,863)$(8,960)
Content Amortization and Impairment Expense
Year Ended December 31,
202420232022
Studios$5,692 $5,074 $5,950 
Networks4,250 6,630 6,171 
DTC6,416 6,138 6,800 
Corporate3 (6)(1)
Inter-segment eliminations (2,250)(1,697)(1,951)
Total content amortization and impairment expense$14,111 $16,139 $16,969 
Content expense is generally a component of costs of revenue on the consolidated statements of operations. (See Note 9.)
Revenues by Geography
 Year Ended December 31,
 202420232022
U.S.$26,434 $28,004 $22,697 
Non-U.S.12,887 13,317 11,120 
Total revenues$39,321 $41,321 $33,817 
Revenues are attributed to each country based on the customer or viewer location.
Property and Equipment by Geography
 December 31,
 20242023
U.S.$4,430 $4,295 
U.K.991 980 
Other non-U.S.666 682 
Total property and equipment, net$6,087 $5,957