During the three and six months ended June 30, 2026 and 2025, we recorded the following within “Restructuring

and transaction-related items” on the Consolidated Statements of Operations.


	Successor		Predecessor		Successor		Predecessor
	Three Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,			Six Months Ended June 30,
	2026		2025		2026			2025
Severance (a)		$35		$177		$35			$177
Exit costs		—		—		—			65
Restructuring charges		35		177		35			242
Transaction-related items		153		4		256			24
Restructuring and transaction-related items		$188		$181		$291			$266

(a) Severance costs include the accelerated vesting of stock-based compensation.

During the second quarter of 2026, we recorded restructuring severance costs of $35 million associated with

changes in management and aligning the business around our strategic priorities following the Skydance

Transactions, including costs related to a plan under which severance payments are being provided to certain

Restructuring charges for the three and six months ended June 30, 2025 included severance costs of $177 million

associated with strategic changes in our global workforce in order to streamline our organization. In addition,

during the six months ended June 30, 2025, we recorded exit costs of $65 million, primarily for the impairment of

lease assets that we ceased use of in connection with initiatives to reduce our real estate footprint. 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 following is a rollforward of our restructuring severance liability, which is recorded in “Other current

liabilities” and “Other liabilities” on the Consolidated Balance Sheets, and is expected to be substantially paid by

Transaction-related items include costs directly associated with prospective and completed mergers and

acquisitions, as well as related integration activities. During the three and six months ended June 30, 2026, we

recorded transaction-related costs of $153 million and $256 million, respectively, principally for legal, advisory,

and other professional fees associated with the planned WBD Merger and related integration. During the three and

six months ended June 30, 2025, we recorded legal, advisory, and other professional fees relating to the Skydance