v3.26.1
INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision represents federal, state and local, and foreign taxes on earnings before income taxes and
equity in loss of investee companies. For the three and six months ended June 30, 2026 (Successor), we recorded a
provision for income taxes of $120 million and $275 million, reflecting an effective income tax rate of 55.8% and
45.3%, respectively. Included in the provision for income taxes are the following items identified as affecting the
comparability of our results, which in aggregate increased our effective income tax rate by 20.1 percentage points
and 10.9 percentage points for their respective periods.
Impact from Items Affecting Comparability
Successor
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
Earnings (Loss)
Before Income
Taxes
Benefit from
(Provision for)
Income Taxes
Earnings
(Loss) Before
Income Taxes
Benefit from
(Provision for)
Income Taxes
Restructuring charges (Note 4)
$(35)
$5
$(35)
$5
Transaction-related items (Note 4)
$(153)
$15
$(256)
$21
Net discrete tax benefit
n/a
$4
n/a
$8
n/a - not applicable
For the three and six months ended June 30, 2025 (Predecessor), we recorded a provision for income taxes of $50
million and $150 million, reflecting an effective income tax rate of 28.1% and 29.3%, respectively. Included in the
provision for income taxes are the following items identified as affecting the comparability of our results, which in
aggregate increased our effective income tax rate by 2.9 percentage points and 3.0 percentage points for their
respective periods.
Impact from Items Affecting Comparability
Predecessor
Three Months Ended June 30, 2025
Six Months Ended June 30, 2025
Earnings (Loss)
Before Income
Taxes
Benefit from
(Provision for)
Income Taxes
Earnings (Loss)
Before Income
Taxes
Benefit from
(Provision for)
Income Taxes
Impairment charges (Note 15)
$(157)
$39
$(157)
$39
Restructuring charges (Note 4)
$(177)
$42
$(242)
$58
Transaction-related items (Note 4)
$(4)
$1
$(24)
$1
Gain from dispositions
$—
$—
$35
$(2)
Net discrete tax provision
n/a
$(2)
n/a
$(9)
n/a - not applicable
On July 10, 2026, the Company received Notices of Proposed Adjustment (“NOPAs”) from the Internal Revenue
Service for legacy Viacom Inc.’s 2017, 2018, and 2019 tax years regarding the tax treatment of certain transactions
between our subsidiaries.  The proposed adjustments could increase taxes, including the one-time transition tax on
cumulative foreign earnings, by up to approximately $400 million, excluding any penalties and interest that may be
due.  The Company disagrees with the proposed adjustments and is evaluating its options, including contesting the
NOPAs through all available administrative and, if necessary, judicial proceedings.  As the NOPAs were received
after the balance sheet date, changes in measurement of the tax position, if any, will be accounted for in the third
quarter of 2026.