Related Parties |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Parties | Related Parties Prior to the Separation, our transactions with Comcast and its subsidiaries were considered related party transactions. Following separation, transactions with Comcast are not considered related party transactions. Transactions Prior to the Separation, Comcast provided us with significant corporate, infrastructure and shared services, including the license of content for use on our networks, the distribution of our television networks and purchases and sales of advertising. The nature of these services was similar to services that we purchase from or provide to third-parties. In addition, certain costs related to production activities that use centralized Comcast operations were directly charged to us based on usage. The following disclosures summarize related party activity between us and Comcast, which occurred prior to our Separation, and are included in the condensed combined financial statements for the three and six months ended June 30, 2025 and as of December 31, 2025. Sales to related parties were $276 million and $573 million for the three and six months ended June 30, 2025, respectively. Accounts receivable due for these transactions were $123 million as of December 31, 2025. Costs of revenue from related parties were $193 million and $354 million for the three and six months ended June 30, 2025, respectively. Capitalized content costs related to these costs were $302 million as of December 31, 2025. Content obligations related to these costs were $94 million as of December 31, 2025. Costs of advertising purchased from related parties were $2 million and $5 million for the three and six months ended June 30, 2025, respectively, and are presented in selling, general and administrative expenses. Prior to the third quarter of 2025, we had related party loan balances associated with the participation of certain of our subsidiaries in Comcast’s centralized cash management programs. Activity related to loans receivable and payable is presented in the combined statements of cash flows in other investing and other financing activities, respectively. Shared Services and Other Allocated Costs The condensed combined financial statements for the three and six months ended June 30, 2025 and as of December 31, 2025 include transactions involving shared services and assets (including expenses primarily related to personnel, advertising and marketing, facilities, information technology and network communications support and other overhead functions) and certain corporate administrative services (including charges for services such as accounting, tax, treasury and cash management, insurance, legal and risk management) that were provided to us by Comcast. These costs were generally allocated on a pro rata basis using an applicable measure of revenue applied to the relevant pool of costs (e.g., costs incurred at Comcast’s Media segment or corporate levels), including depreciation and amortization expense for shared assets. Allocated costs are included in costs of revenue and selling, general and administrative expenses in the combined statement of income and are reflected in the combined balance sheets and statements of cash flows as changes in net Comcast investment. These amounts represent management’s reasonable estimate of the costs incurred; however, they are not necessarily representative of the costs required for us to operate as an independent, publicly traded company. For the three months ended June 30, 2025, amounts recorded in cost of revenue and selling, general and administrative expenses for these services were $79 million and $223 million, respectively. For the six months ended June 30, 2025, amounts recorded in cost of revenue and selling, general and administrative expenses for these services were $152 million and $459 million, respectively.
|