
	Successor		Predecessor
	Six Months Ended June 30,			Six Months Ended June 30,
	2026			2025
Cash paid for interest		$448			$411

Cash (received) paid for income taxes		$(32)			$180

Noncash additions to operating lease assets		$38			$76

Warner Bros. Discovery—Advance Consideration

In the first quarter of 2026, under the terms of the WBD Merger Agreement, we paid a termination fee of

$2.8 billion to Netflix on behalf of WBD in connection with the termination of a prior merger agreement between

Netflix and WBD. The termination fee will be included in the total consideration to be allocated to WBD’s assets

and liabilities as of the acquisition date, and accordingly has been included within “Advance consideration for

WBD acquisition” on the Consolidated Balance Sheet as of June 30, 2026 and within Investing Activities on the

Consolidated Statement of Cash Flows for the six months ended June 30, 2026.

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 $8 million and

$16 million for the three and six months ended June 30, 2026 (Successor), respectively, and $12 million and $21

million for the three and six months ended June 30, 2025 (Predecessor), respectively.

FCC Licenses Impairment Charges (Predecessor)

Prior to the third quarter of 2025, FCC licenses were classified as indefinite-lived intangible assets, which were

tested for impairment on an annual basis and between annual tests if events occurred or circumstances changed that

would more likely than not reduce the fair value below carrying value. For the second quarter of 2025, as a result

of declines in industry projections, we determined that interim impairment tests were necessary for six markets in

The impairment tests indicated that the estimated fair values of FCC licenses in each of the six markets tested were

below their respective carrying values. Accordingly, we recorded an impairment charge during the second quarter

of 2025 of $157 million to write down the carrying values of these FCC licenses to their then aggregate estimated