INCOME TAXES

6 Months Ended

Jun. 30, 2025

The provision for/benefit from income taxes represents federal, state and local, and foreign taxes on earnings (loss) from continuing operations before income taxes and equity in loss of investee companies. For the three and six months ended June 30, 2025, 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 resulted in an increase in our effective income tax rate of 2.9 percentage points and 3.0 percentage points for their respective periods.



	Impact from Items Affecting Comparability
	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 3)		$	(157)		$	39		$	(157)		$	39
Restructuring charges (Note 3)		$	(177)		$	42		$	(242)		$	58
Transaction-related items (Note 3)		$	(4)		$	1		$	(24)		$	1
Gain on dispositions		$	—		$	—		$	35		$	(2)

Net discrete tax provision		n/a			$	(2)		n/a			$	(9)

n/a - not applicable

For the three and six months ended June 30, 2024, we recorded a benefit from income taxes of $215 million and $387 million, reflecting an effective income tax rate of 3.9% and 6.3%, respectively. Included in the benefit from income taxes are the following items identified as affecting the comparability of our results, which in aggregate decreased our effective income tax rate by 13.8 percentage points and 13.9 percentage points for their respective periods.


	Impact from Items Affecting Comparability
	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	Earnings (Loss) Before Income Taxes			Benefit from (Provision for) Income Taxes			Earnings (Loss) Before Income Taxes			Benefit from (Provision for) Income Taxes
Programming charges (Note 2)		$	—		$	—		$	(1,118)		$	275
Impairment charges (Note 3)		$	(5,996)		$	349		$	(5,996)		$	349
Restructuring charges (Note 3)		$	(70)		$	6		$	(256)		$	52
Transaction-related items (Note 3)		$	(18)		$	3		$	(18)		$	3
Loss from investment		$	—		$	—		$	(4)		$	1
Net discrete tax provision (a)		n/a			$	(48)		n/a			$	(49)

n/a - not applicable

(a) Primarily attributable to the establishment of a valuation allowance on our interest limitation carryforward deferred tax asset that was not expected to be realized because of a reduction in our deferred tax liabilities caused by the goodwill impairment charge in the second quarter of 2024. This impact was partially offset by amounts realized in connection with the filing of our tax returns in certain international jurisdictions.

On July 4, 2025, the U.S. government enacted tax legislation, which includes the extension of certain expired or expiring tax provisions, including a favorable change to the interest deduction limitation, and modifications to certain international tax provisions. The legislation has multiple effective dates with certain provisions effective in 2025. We are currently evaluating the impact on our future financial results, including a reassessment of the valuation allowance on our interest limitation carryforward deferred tax asset.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Paramount Global 10-Q