INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

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:

Year Ended December 31,	2024		2023		2022
United States	$	(5,862)	$	(2,039)	$	324
Foreign	(315)		786		942
Total	$	(6,177)	$	(1,253)	$	1,266

The components of the (benefit from) provision for income taxes were as follows:

Year Ended December 31,	2024		2023		2022
Current:
Federal	$	121	$	70	$	75
State and local	56		84		64
Foreign	148		135		194
Total current	325		289		333
Deferred:
Federal	(538)		(556)		(57)
State and local	(116)		(110)		(14)
Foreign	24		16		(35)
Total deferred	(630)		(650)		(106)
(Benefit from) provision for income taxes	$	(305)	$	(361)	$	227

In addition, included in net earnings from discontinued operations was an income tax provision of $5 million, $249 million and $77 million for 2024, 2023, and 2022, respectively.

The equity in loss of investee companies is shown net of tax on the Consolidated Statements of Operations. The tax benefit relating to losses from equity investments was $1 million in 2024, $10 million in 2023 and $33 million in 2022, which represented an effective tax rate of 0.3%, 2.7% and 13.9% for 2024, 2023, and 2022, respectively.

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:

Year Ended December 31,	2024		2023		2022
Taxes on income at U.S. federal statutory rate	$	(1,297)	$	(263)	$	266
State and local taxes, net of federal tax benefit	(56)		(13)		44
Effect of foreign operations	74		(97)		(20)
Noncontrolling interests	(7)		(6)		(20)
Goodwill impairment	819		—		—
Interest limitation carryforward valuation allowance	101		—		—
Non-deductible expenses	55		9		11
Reorganization of foreign operations (a)	—		(4)		(72)
Tax deficiency from stock-based compensation	18		18		13
Other, net	(12)		(5)		5
(Benefit from) provision for income taxes	$	(305)	$	(361)	$	227

(a) For 2022, reflects a deferred tax benefit resulting from the transfer of intangible assets between our subsidiaries in connection with a reorganization of our international operations. The related deferred tax asset is primarily expected to be realized over a 25-year period.

The following table summarizes the components of deferred income tax assets and liabilities.

At December 31,	2024		2023
Deferred income tax assets:
Reserves and other accrued liabilities	$	354	$	294
Pension, postretirement and other employee benefits	460		518
Lease liability	409		400
Tax credit and loss carryforwards	538		423
Interest limitation carryforward	114		63
Capitalized costs	180		155
Intangible assets	428		20
Investments	25		—
Other	10		10
Total deferred income tax assets	2,518		1,883
Valuation allowance	(655)		(498)
Deferred income tax assets, net	1,863		1,385
Deferred income tax liabilities:
Lease asset	(340)		(326)
Property, equipment and other assets	(89)		(140)
Investments	—		(99)
Financing obligations	(66)		(67)
Other	(16)		(14)
Total deferred income tax liabilities	(511)		(646)
Deferred income tax assets, net	$	1,352	$	739

At December 31, 2024, we had deferred income tax assets for federal foreign tax credit carryforwards of $52 million and net operating loss carryforwards for federal, state and local, and foreign jurisdictions of $371 million, the majority of which expire in various years from 2025 through 2036. The deferred tax asset for the U.S. interest limitation carryforward of $114 million at December 31, 2024 has an indefinite carryforward period.

The 2024 and 2023 deferred income tax assets were reduced by a valuation allowance of $655 million and $498 million, respectively, principally relating to income tax benefits from capital losses and net operating losses in foreign jurisdictions and U.S. interest limitations, which are not expected to be realized.

Generally, the future remittance of foreign undistributed earnings will not be subject to U.S. federal income taxes and as a result, for substantially all of our foreign subsidiaries, we do not intend to assert indefinite reinvestment of both cash held outside of the U.S. and future cash earnings. However, a future repatriation of cash could be subject to state and local income taxes, foreign income taxes, tax on foreign currency translation gains and losses, and withholding taxes. Accordingly, as of December 31, 2024, we recorded deferred income tax liabilities associated with future repatriations of $13 million on the Consolidated Balance Sheet. Additional income taxes have not been provided for outside basis differences inherent in these entities, which could be recognized upon sale or other transaction, as these amounts continue to be indefinitely invested in foreign operations. The determination of the U.S. federal deferred income tax liability for such outside basis difference is not practicable.

The following table sets forth the change in the reserve for uncertain tax positions, excluding related accrued interest and penalties.

At January 1, 2022	$	301
Additions for current year tax positions	16
Additions for prior year tax positions	3
Reductions for prior year tax positions	(13)
Cash settlements	(2)
Statute of limitations lapses	(2)
At December 31, 2022	303
Additions for current year tax positions	15
Additions for prior year tax positions	20
Reductions for prior year tax positions	(46)
Cash settlements	(2)
Statute of limitations lapses	(4)
At December 31, 2023	286
Additions for current year tax positions	12
Additions for prior year tax positions	3
Reductions for prior year tax positions	(14)
Cash settlements	(3)
Statute of limitations lapses	(4)
At December 31, 2024	$	280

The reserve for uncertain tax positions of $280 million at December 31, 2024 includes $252 million which would affect our effective income tax rate, if and when recognized in future years. We recognized interest and penalties of $28 million, $26 million and $14 million for the years ended December 31, 2024, 2023 and 2022, respectively, in the Consolidated Statements of Operations. Liabilities for accrued interest and penalties totaling $104 million and $87 million as of December 31, 2024 and 2023, respectively, are included within “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheets.

The Company and its subsidiaries file income tax returns with the Internal Revenue Service (“IRS”) and various state and local and foreign jurisdictions. For periods prior to the 2019 merger of Viacom and CBS, Viacom and CBS filed separate tax returns. For CBS, during the fourth quarter of 2023, the Company and the IRS settled the income tax audit for the 2017 and 2018 tax years with the exception of one item. This item is currently being

resolved through the Mutual Agreement Procedure process. For Viacom, we are currently under examination by the IRS for the 2016 through 2019 tax years. For tax returns filed as a merged company, we are currently under examination by the IRS for the 2019 tax year. Various tax years are also currently under examination by state and local and foreign tax authorities. With respect to open tax years in all jurisdictions, we currently do not believe that it is reasonably possible that the reserve for uncertain tax positions will significantly change within the next 12 months; however, it is difficult to predict the final outcome or timing of resolution of any particular tax matter and events could cause our current expectation to change in the future.