Paramount Skydance PSKY · USD

SEGMENT INFORMATION Our operating segments, which are the same as our reportable segments, have been determined in accordance with our internal management structure, which is organized based on products and services. In the first quarter of 2026, we transitioned our reporting structure into three new segments: Studios, Direct-to-Consumer, and TV Media. Under this structure, our new Studios segment will reflect the combination of the historical Filmed Entertainment segment with TV Media studio operations, consolidating our content creation activities. Our Direct-to-Consumer segment remains unchanged. We will begin reporting under this new structure in our Quarterly Report on Form 10-Q for the first quarter of 2026.The tables below set forth our financial information based on the reportable segments described below, which reflect the information that was regularly reviewed by the Company’s chief operating decision maker (“CODM”) prior to the 2026 change discussed above. The CODM is the Company’s Chief Strategy Officer and Chief Operating Officer, Andrew Gordon. •TV Media—In 2025, our TV Media segment consisted of our (1) broadcast operations—the CBS Television Network, our domestic broadcast television network; CBS Stations, our owned television stations; and our international free-to-air networks, including Network 10 and Channel 5; (2) domestic premium and basic cable networks, including Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, CBS Sports Network, and international extensions of certain of these brands; and (3) domestic and international television studio operations, including CBS Studios and Paramount Television Studios, as well as CBS Media Ventures, which produces and distributes first-run syndicated programming. TV Media also includes a number of digital properties such as CBS News 24/7 for 24 hour news and CBS Sports HQ for sports news and analysis. On October 23, 2025, we completed the sale of Telefe in Argentina and on January 12, 2026, we completed the sale of Chilevisión in Chile.•Direct-to-Consumer—Our Direct-to-Consumer segment consists of our portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+.

REVENUES The table below presents our revenues disaggregated into categories based on the nature of such revenues. See Note 17 for revenues by segment disaggregated into these categories. SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,Year Ended December 31,2025202520242023Revenues by Type:Advertising $3,803 $5,329 $10,295 $9,989 Affiliate and subscription5,429 8,242 13,153 13,018 Theatrical154 475 813 813 Licensing and other2,883 2,576 4,952 5,832 Total Revenues$12,269 $16,622 $29,213 $29,652 ReceivablesIncluded in “Other assets” on the Consolidated Balance Sheets are noncurrent receivables of $835 million and $1.03 billion at December 31, 2025 (Successor) and December 31, 2024 (Predecessor), respectively. Noncurrent receivables primarily relate to revenues recognized under long-term content licensing arrangements. Revenues from the licensing of content are recognized at the beginning of the license period in which programs are made available to the licensee for exhibition, while the related cash is generally collected over the term of the license period. Our receivables do not represent significant concentrations of credit risk at December 31, 2025 or 2024, due to the wide variety of customers, markets and geographic areas to which our products and services are sold.Contract LiabilitiesContract liabilities are included within “Deferred revenues” and “Other liabilities” on the Consolidated Balance Sheets and were $1.5 billion, $0.9 billion, and $0.8 billion at December 31, 2025 (Successor) and December 31, 2024 and 2023 (Predecessor), respectively. For the periods from August 7 - December 31, 2025 (Successor) and January 1 - August 6, 2025, and for the years ended December 31, 2024 and 2023 (Predecessor), we recognized revenues of $1.0 billion, $0.6 billion, $0.7 billion, and $0.9 billion, respectively, that were included in the opening balance of deferred revenues for the respective period.Unrecognized Revenues Under ContractAt December 31, 2025 (Successor), unrecognized revenues attributable to unsatisfied performance obligations under our long-term contracts were approximately $6 billion, of which $3 billion is expected to be recognized in 2026, $2 billion in 2027, and $1 billion in 2028.

COMMITMENTS AND CONTINGENCIES CommitmentsOur long-term commitments not recorded on the balance sheet primarily consist of programming and talent commitments and purchase obligations for goods and services resulting from our normal course of business. Off-Balance Sheet ArrangementsOur long-term programming and talent commitments not recorded on the balance sheet, estimated to aggregate to $36.08 billion as of December 31, 2025, include $31.96 billion for sports programming rights and $4.12 billion relating to the production and licensing of television and film programming, including talent contracts. We also have long-term committed purchase obligations which include agreements to purchase goods or services in the future that totaled $1.68 billion as of December 31, 2025. These commitments are payable as follows:Payments Due by Period2031 andTotal20262027202820292030ThereafterOff-Balance Sheet ArrangementsProgramming and talent commitments $36,083 $4,803 $4,930 $5,236 $5,050 $4,714 $11,350 Purchase obligations $1,675 $643 $559 $376 $64 $8 $25 On-Balance Sheet ArrangementsAt December 31, 2025, we also had long-term contractual obligations for programming liabilities, participations, and residuals. These long-term contractual obligations are payable as follows: Payments Due by Period2031 andTotal2027202820292030Thereafter$1,761 $1,124 $372 $192 $59 $14 We also have long-term lease commitments for office space, equipment, transponders and studio facilities, which are recorded on the Consolidated Balance Sheet at December 31, 2025. See Note 10 for details of our operating lease commitments. GuaranteesLetters of Credit and Surety BondsAt December 31, 2025, we had outstanding letters of credit and surety bonds of $235 million that were not recorded on the Consolidated Balance Sheet, as well as a $1.9 billion standby letter of credit facility. In accordance with the contractual requirements of one of our commitments, the letter of credit outstanding under this facility increases and decreases consistent with the related contractual commitment. The amount outstanding was zero at December 31, 2025 and $1.82 billion in January 2026. Letters of credit and surety bonds are primarily used as security against non-performance in the normal course of business under contractual requirements of certain of our commitments.

DEBT The table below details our debt, which was recorded at its fair value on the closing date of the Transactions and the NAI Transaction on August 7, 2025 (see Note 2). Paramount Global is the issuer of all of the senior and junior debt in the table below. Upon the closing of the Transactions, Paramount Skydance Corporation provided a full and unconditional parent guarantee of Paramount Global’s senior and junior debt.Successor (a)PredecessorAtAtDecember 31, 2025December 31, 20244.0% Senior Notes due 2026$347 $346 3.70% Senior Notes due 202685 86 2.90% Senior Notes due 2027573 582 3.375% Senior Notes due 2028487 498 3.70% Senior Notes due 2028489 496 4.20% Senior Notes due 2029489 496 7.875% Senior Debentures due 2030915 829 4.95% Senior Notes due 20311,221 1,232 4.20% Senior Notes due 2032921 980 5.50% Senior Debentures due 2033417 428 4.85% Senior Debentures due 203476 87 6.875% Senior Debentures due 20361,119 1,072 6.75% Senior Debentures due 203775 76 5.90% Senior Notes due 2040272 298 4.50% Senior Debentures due 204234 45 4.85% Senior Notes due 2042400 490 4.375% Senior Debentures due 20431,079 1,146 4.875% Senior Debentures due 204314 18 5.85% Senior Debentures due 20431,103 1,235 5.25% Senior Debentures due 2044275 345 4.90% Senior Notes due 2044432 542 4.60% Senior Notes due 2045452 591 4.95% Senior Notes due 2050763 950 6.25% Junior Subordinated Debentures due 2057628 644 6.375% Junior Subordinated Debentures due 2062989 989 Obligations under finance leases3 — Total debt (b)13,658 14,501 Less current portion 433 — Total long-term debt, net of current portion$13,225 $14,501 (a) In connection with the pushdown of the Ultimate Parent’s basis, our debt was recorded at fair value, which resulted in a decrease to our total debt balance of $898 million, reflecting the reversal of a net unamortized discount of $390 million and unamortized deferred financing fees of $71 million, and a reduction of $1.36 billion to adjust our debt to its fair value. The adjustments to fair value for each of our senior and junior debt issuances are being amortized over the remaining term of the applicable issuance within interest expense (see Note 2).(b) At December 31, 2025 (Successor), our senior and junior debt balances were net of unamortized fair value adjustments totaling $1.32 billion. At December 31, 2024 (Predecessor), the senior and junior debt balances included a net unamortized discount of $401 million and unamortized deferred financing costs of $74 million.

INCOME TAXES The U.S. and foreign components of earnings (loss) from continuing operations before income taxes and equity in loss of investee companies were as follows:SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,Year Ended December 31,2025202520242023United States$(652)$157 $(5,862)$(2,039)Foreign176 347 (315)786 Total$(476)$504 $(6,177)$(1,253)The components of the (benefit from) provision for income taxes were as follows:SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,Year Ended December 31,2025202520242023Current:Federal$(11)$144 $121 $70 State and local(5)74 56 84 Foreign91 104 148 135 Total current75 322 325 289 Deferred:Federal$(139)$(341)$(538)$(556)State and local21 (73)(116)(110)Foreign3 13 24 16 Total deferred(115)(401)(630)(650)Benefit from income taxes$(40)$(79)$(305)$(361)In addition, for the Predecessor periods, net earnings from discontinued operations included income tax provisions of $5 million and $249 million for the years ended 2024 and 2023, respectively.The equity in loss of investee companies is shown net of tax on the Consolidated Statements of Operations. The tax provision relating to losses from equity investments was $1 million for the period from August 7 - December 31, 2025 (Successor) and $2 million for the period from January 1 - August 6, 2025 (Predecessor), and the tax benefit was $1 million in 2024 and $10 million in 2023, which represented an effective tax rate of 1.0%, 1.2%, 0.3%, and 2.7% for the respective periods.The difference between income taxes expected at the U.S. federal statutory income tax rate of 21% and the (benefit from) provision for income taxes is summarized as follows:SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,20252025AmountPercentAmountPercentTaxes on income at U.S. federal statutory rate$(100)21.0 %$106 21.0 %State and local taxes, net of federal tax benefit (a)6 (1.3)%(17)(3.4)%Effect of foreign operations:United KingdomStatutory tax rate difference6 (1.3)%7 1.4 %UK consortium group relief(29)6.1 %(37)(7.3)%Withholding taxes(4)0.8 %(5)(1.0)%Provision to return(13)2.7 %— — %Other2 (0.4)%7 1.4 %CanadaWithholding taxes28 (5.9)%28 5.5 %Other5 (1.0)%1 0.2 %NetherlandsProvision to return16 (3.4)%— — %Other— — %3 0.6 %AustraliaStatutory tax rate difference(3)0.6 %(6)(1.2)%Changes in valuation allowances5 (1.0)%25 5.0 %Other5 (1.0)%3 0.6 %GermanyProvision to return6 (1.3)%1 0.

STOCK-BASED COMPENSATIONWe have a long-term equity-based incentive plan (the “Plan”) to benefit and advance the interests of our company by attracting, retaining and motivating participants and to compensate participants for their contributions to the financial success of our company. The Plan provides for awards of stock options, stock appreciation rights, restricted and unrestricted stock, RSUs, dividend equivalents, performance awards and other equity-related awards. RSUs, restricted stock and PSUs accrue dividends each time we declare a quarterly cash dividend, which are paid upon vesting when the shares are delivered and are forfeited if the award does not vest. Upon exercise of stock options or vesting of RSUs, restricted stock and PSUs, we issue new shares from our existing authorization. At December 31, 2025, there were 94 million shares available for future grant under the Plan. Stock-based compensation awards were also granted under Predecessor equity incentive plans prior to the closing of the Transactions. Upon exercise of outstanding stock options or vesting of RSUs previously granted under the Predecessor’s equity incentive plans, shares may be issued from a previous authorization.The following table presents a summary of stock-based compensation expense for the periods presented.SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,Year Ended December 31,2025202520242023Expense included in operating and SG&A (a)$91 $99 $210 $172 Expense included in restructuring charges (b)69 14 35 5 Stock-based compensation expense, before income taxes160 113 245 177 Related tax benefit(28)(25)(37)(35)Stock-based compensation expense, net of tax benefit$132 $88 $208 $142 (a) In connection with the Transactions, certain of Paramount Global’s employees became entitled to payments and benefits that, in accordance with Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended, were not deductible for tax purposes by the Company and would result in an excise tax for the employees.

LEASES Lessee ContractsWe have operating leases primarily for office space, equipment, satellite transponders and studio facilities. We also have finance leases for equipment, which were not material for the periods presented. Lease costs are generally fixed, with certain contracts containing variable payments for non-lease costs based on usage and escalations in the lessors’ annual costs.At December 31, 2025 (Successor) and December 31, 2024 (Predecessor), the following amounts were recorded on the Consolidated Balance Sheets relating to our operating leases.SuccessorPredecessor20252024Right-of-Use AssetsOperating lease assets$1,126 $1,012 Lease LiabilitiesOther current liabilities$284 $284 Operating lease liabilities1,150 1,048 Total lease liabilities$1,434 $1,332 SuccessorPredecessor20252024Weighted average remaining lease term6 years6 yearsWeighted average discount rate4.7 %3.8 %The following table presents our lease cost relating to our operating leases. SuccessorPredecessorPeriod From August 7 - December 31,Period From January 1 - August 6,Year Ended December 31,2025202520242023Operating lease cost (a) (b)$131 $176 $301 $332 Short-term lease cost (b) (c)62 81 181 229 Variable lease cost (b) (d)34 47 84 76 Sublease income(8)(9)(7)(7)Total lease cost$219 $295 $559 $630 (a) Includes fixed lease costs and non-lease costs (consisting of other occupancy and service costs relating to the use of an asset) associated with long-term operating leases. (b) Includes costs capitalized in programming assets during the period for leased assets used in the production of programming.(c) Short-term leases, which are not recorded in right-of-use assets and lease liabilities on the Consolidated Balance Sheets, have a term of 12 months or less and exclude month-to-month leases.(d) Primarily includes non-lease costs (consisting of other occupancy and service costs relating to the use of an asset) and costs for equipment leases that vary based on usage.The following table presents supplemental cash flow information for our operating leases.

Our information security program is overseen by our Chief Technology Officer (“CTO”) and Chief Information Security Officer (“CISO”), in consultation with our Chief Privacy Officer as needed. We employ a layered defense-in-depth system, which includes the use of continually evolving technologies to assess and protect the security of our enterprise-wide applications and Systems, our intellectual property and proprietary and other information and the data and personal information of our customers, partners and employees; monitoring our technology environment; performing regular security audits and vulnerability assessments; and providing regular cybersecurity and privacy training for our employees. We engage consultants and other third parties to conduct independent security assessments of our information security program and to provide us with information on new and developing threats and tactics. We have established processes to oversee and identify risks and cybersecurity threats associated with our third-party service providers.Pursuant to our information security and privacy policies and corresponding training, our employees and third-party vendors are instructed to notify our information security team as soon as they become aware of a suspected cybersecurity incident. We have a cybersecurity incident response plan to manage our response to potential and actual cybersecurity incidents. The plan includes procedures to assess the potential impact of an incident on the Company. When an incident meets certain criteria, the CISO and members of the information security team notify members of senior management as soon as reasonably practicable, including our CTO, Chief Legal Officer, General Counsel and, under certain circumstances, the Audit Committee. All incidents are reviewed periodically with senior management.Our Board of Directors has delegated to the Audit Committee the responsibility for reviewing our processes and policies with respect to risk assessment, risk management and risk acceptance, including our processes and policies with respect to information security and cybersecurity. The Audit Committee receives quarterly reports from the CTO and CISO, which include information on cybersecurity incidents and related remediation efforts, the broader information security and cybersecurity threat landscape, the information security program’s strategic priorities and progress made in respect of those priorities.