Paramount Skydance Corporation

(b) Reflects a goodwill impairment charge for the Cable Networks reporting unit of $5.98 billion, as well as charges totaling $149 million to reduce the carrying values of FCC licenses to their estimated fair values and Australian broadcast licenses to their estimated fair values.

(c) Consists of severance costs associated with strategic changes in our global workforce and the impairment of lease assets, as further described under Restructuring, Transaction-Related Items, and Other Corporate Matters.

(d) Reflects legal and advisory fees relating to the Transactions.

(e) Reflects charges of $74 million associated with the abandonment of developed technology and $57 million to increase our accrual for asbestos matters as discussed under Legal Matters—Claims Related to Former Businesses—Asbestos in Note 18 to the consolidated financial statements.

(f) Principally reflects a loss on the sale of Paramount Global’s investment in Viacom18 of $13 million.

(g) Primarily attributable to the establishment of a valuation allowance on a 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.

2) PUSHDOWN OF ULTIMATE PARENT'S BASIS

The NAI Transaction resulted in a change in control of our Predecessor, Paramount Global, that established a new

accounting basis, which reflects the estimated fair value of Paramount Global as indicated by the NAI Transaction

and the Skydance Transactions. The table below presents the calculation of the Ultimate Parent’s basis in

Paramount Global as of the date these transactions closed.

A number of disclosure requirements relating to sustainability matters have taken effect or are expected to take effect in the next several years in the U.S. and Europe, including the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act in California, the E.U.’s Corporate Sustainability Reporting Directive (CSRD). While the full costs and operational impacts of compliance are not yet known, noncompliance with these or other applicable laws and regulations could result in financial, operational and reputational risks. At the same time, there has been an increase in proposed or enacted “anti-ESG” and “anti-DEI” legislation, regulation, policies, enforcement priorities, litigation, directives, initiatives and legal opinions. Conflicting regulations and

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requirements and a lack of harmonization of legal and regulatory environments across the jurisdictions in which we operate may create enhanced compliance risks and costs.

A significant portion of revenue depends on agreements with a limited number of distributors; the loss of, delay in, or renewal of affiliation and distribution agreements on less favorable terms, loss of carriage including service blackouts, or loss of CBS Network station affiliation agreements could reduce reach and affiliate and advertising revenues.

A valuation allowance was established on a deferred tax asset not expected to be realized because of reduced deferred tax liabilities caused by the second-quarter 2024 goodwill impairment charge, partly offset by amounts realized on international tax return filings.