Warner Bros Discovery : 2024 Q1 Trending Schedule and Non-GAAP Reconciliations

Merger with the WarnerMedia Business of AT&T

On April 8, 2022, Discovery, Inc. ("Discovery") completed its merger (the "Merger") with the WarnerMedia business of AT&T Inc. (the "WarnerMedia Business") and changed its name to "Warner Bros. Discovery, Inc." ("Warner Bros. Discovery", "WBD", the "Company", "we", "us" or "our").

Purpose of Trending Schedules

The trending schedules summarize unaudited pro forma combined financial information to facilitate your review and understanding of the Company's operating results. The trending schedules set forth important financial measures utilized by the Company defined by U.S. generally accepted accounting principles ("GAAP"). The Company uses non-GAAP financial measures, among other measures, to evaluate the operating performance of our business. These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.

Pro Forma Combined Financial Information

The unaudited pro forma combined financial information in the trending schedules presents the combined results of the Company and the WarnerMedia Business as if the Merger had been completed on January 1, 2021. Our Networks, DTC (as defined below), Studios and Corporate and Intersegment-eliminations pro forma financial information is based on the historical operating results and includes adjustments in accordance with Article 11 of Regulation S-X to illustrate the effects of the Merger as if it had occurred on January 1, 2021. The unaudited pro forma combined financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the Merger had occurred on January 1, 2021, nor is it indicative of future results.

The unaudited pro forma financial information includes, where applicable, adjustments for (i) additional costs of revenues from the fair value step-up of film and television library, (ii) additional amortization expense related to acquired intangible assets, (iii) additional depreciation expense from the fair value of property and equipment, (iv) transaction costs and other one-timenon-recurring costs, (v) additional interest expense for borrowings related to the Merger and amortization associated with fair value adjustments of debt assumed, (vi) changes to align accounting policies, (vii) elimination of intercompany activity, and (viii) associated tax-related impacts of adjustments. These pro forma adjustments are based on available information as of the date hereof and upon assumptions that the Company believes are reasonable to reflect the impact of the Merger with the WarnerMedia Business on the Company's historical financial information on a supplemental pro forma basis. Adjustments do not include costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined business.

Reporting Segments

In connection with the Merger, the Company reevaluated and changed its segment presentation during the quarter ended June 30, 2022. Accordingly, beginning in the quarter ended June 30, 2022, and for all periods presented, we are reporting results based on the following segments:

Networks, consisting primarily of our domestic and international television networks Direct-to-Consumer ("DTC"), consisting primarily of our premium pay TV and digital content services

Studios, consisting primarily of the production and release of feature films for initial exhibition in theaters and/or on our DTC services, production and initial licensing of television programs to third party and our networks/DTC services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming.

Financial Measures

Warner Bros. Discovery previously used the non-GAAP measure of Adjusted OIBDA as an important financial measure, among other measures, to evaluate the operating performance of our business. Adjusted OIBDA was defined as operating income excluding: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) certain inter-segment eliminations related to production studios, (vii) third-party transaction and integration costs, and (viii) other items impacting comparability.

Beginning with the period ended June 30, 2022, and for all periods presented, Warner Bros. Discovery will utilize the non-GAAP measure of Adjusted EBITDA, as defined below and in the Notes & Definitions section as an important financial measure, among other measures, to evaluate the operating performance of our business.

The Company defines Adjusted EBITDA as operating income excluding: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring and facility consolidation, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) third-party transaction and integration costs, (vii) amortization of purchase accounting fair value step-up for content, (viii) amortization of capitalized interest for content, and (ix) other items impacting comparability. Adjusted EBITDA should be considered in addition to, but not a substitute for, operating income, net income and other measures of financial performance reported in accordance with U.S. GAAP.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. GAAP, this communication may also contain certain non-GAAP financial measures, identified with an "(*)". Reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available in the trending schedules and in the "Quarterly Results" section of the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com.

Rounding

Numbers presented in the following materials are on a rounded basis using actual amounts. Minor differences in totals and percentages may exist due to rounding.

Actual consolidated statement of operations (GAAP income statement)

Unaudited; in millions

													Actual
				3 Months Ending			12 Months					3 Months Ending			12 Months		3 Months
							Ending								Ending			Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22			3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
Revenues:
Distribution	$	1,352	$	4,838	$	4,990	$	4,962	$	16,142		$	5,163	$	5,135	$	5,026	$	4,913	$	20,237		$	4,985
Advertising		1,476		2,721		2,042		2,285		8,524			2,298		2,519		1,796		2,087		8,700			2,148
Content		323		2,064		2,531		3,442		8,360			2,954		2,446		2,840		2,963		11,203			2,558
Other		8		204		260		319		791			285		258		317		321		1,181			267
Total revenues		3,159		9,827		9,823		11,008		33,817			10,700		10,358		9,979		10,284		41,321			9,958
Costs and expenses:
Costs of revenues, excluding		1,236		6,625		5,627		6,954		20,442			6,685		6,636		5,309		5,896		24,526			6,058
depreciation and amortization
Selling, general and administrative		1,040		3,538		2,589		2,511		9,678			2,388		2,562		2,291		2,455		9,696			2,232
Depreciation and amortization		525		2,266		2,233		2,169		7,193			2,058		1,914		1,989		2,024		7,985			1,888
Restructuring and other charges		5		1,033		1,521		1,198		3,757			95		146		269		75		585			35
Impairments and loss on dispositions		-		4		43		70		117			31		6		24		16		77			12
Total costs and expenses		2,806		13,466		12,013		12,902		41,187			11,257		11,264		9,882		10,466		42,869			10,225
Operating income (loss)		353		(3,639)		(2,190)		(1,894)		(7,370)			(557)		(906)		97		(182)		(1,548)			(267)
Interest expense, net		(153)		(511)		(555)		(558)		(1,777)			(571)		(574)		(574)		(502)		(2,221)			(515)
Other income (expense), net		476		(94)		(106)		(89)		187			(110)		-		(55)		71		(94)			(37)
Income (loss) before income taxes		676		(4,244)		(2,851)		(2,541)		(8,960)			(1,238)		(1,480)		(532)		(613)		(3,863)			(819)
Income tax (expense) benefit		(201)		836		566		462		1,663			178		260		125		221		784			(136)
Net income (loss)		475		(3,408)		(2,285)		(2,079)		(7,297)			(1,060)		(1,220)		(407)		(392)		(3,079)			(955)
Net income attributable to noncontrolling		(19)		(10)		(23)		(22)		(74)			(9)		(20)		(10)		(8)		(47)			(11)
interests
Net income (loss) available to Warner	$	456	$	(3,418)	$	(2,308)	$	(2,101)	$	(7,371)		$	(1,069)	$	(1,240)	$	(417)	$	(400)	$	(3,126)		$	(966)
Bros. Discovery, Inc.

The information in the above table presents WBD's financial results based on its Merger with the WarnerMedia Business completed on 4/8/22.

For the period ended 3/31/22, the table represents Discovery, Inc. financial results.

For the period ended 6/30/22, the table represents Discovery, Inc. financial results for 4/1/22 - 4/8/22, and the combined business's financial results for 4/9/22 - 6/30/22.

For the periods ended 9/30/22 and beyond, the table represents Warner Bros. Discovery.

Actual reconciliation of net income to adjusted earnings before interest, taxes, depreciation and amortization (non-GAAP)

Unaudited; in millions

													Actual
				3 Months Ending			12 Months					3 Months Ending			12 Months		3 Months
							Ending								Ending			Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22			3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
Net income (loss) available to	$	456	$	(3,418)	$	(2,308)	$	(2,101)	$	(7,371)		$	(1,069)	$	(1,240)	$	(417)	$	(400)	$	(3,126)		$	(966)
Warner Bros. Discovery, Inc.
Net income attributable to		19		10		23		22		74			9		20		10		8		47			11
noncontrolling interests
Net income		475		(3,408)		(2,285)		(2,079)		(7,297)			(1,060)		(1,220)		(407)		(392)		(3,079)			(955)
Income tax expense (benefit)		201		(836)		(566)		(462)		(1,663)			(178)		(260)		(125)		(221)		(784)			136
Other (income) expense, net		(476)		94		106		89		(187)			110		-		55		(71)		94			37
Interest expense, net		153		511		555		558		1,777			571		574		574		502		2,221			515
Operating income (loss)		353		(3,639)		(2,190)		(1,894)		(7,370)			(557)		(906)		97		(182)		(1,548)			(267)
Depreciation and amortization		525		2,266		2,233		2,169		7,193			2,058		1,914		1,989		2,024		7,985			1,888
Impairment and amortization of fair		-		870		645		901		2,416			831		762		393		387		2,373			235
value step-up for content
Restructuring and other charges		5		1,033		1,521		1,198		3,757			95		146		269		75		585			35
Employee share-based compensation		57		147		113		93		410			106		135		140		107		488			99
Transaction and integration costs		87		983		59		66		1,195			47		47		31		37		162			81
Impairments and loss on dispositions		-		4		43		70		117			31		6		24		16		77			12
Amortization of capitalized interest for		-		-		-		-		-			-		22		12		12		46			17
content
Facility consolidation costs		-		-		-		-		-			-		23		14		(5)		32			2
Adjusted EBITDA(1)(*)	$	1,027	$	1,664	$	2,424	$	2,603	$	7,718		$	2,611	$	2,149	$	2,969	$	2,471	$	10,200		$	2,102

(*) A non-GAAP financial measure; see the Notes and Definitions section for additional details.

The information in the above table presents WBD's financial results based on its Merger with the WarnerMedia Business completed on 4/8/22.

For the period ended 3/31/22, the table represents Discovery, Inc. financial results.

For the period ended 6/30/22, the table represents Discovery, Inc. financial results for 4/1/22 - 4/8/22, and the combined business's financial results for 4/9/22 - 6/30/22.

For the periods ended 9/30/22 and beyond, the table represents Warner Bros. Discovery.

Studios segment

Unaudited; in millions

				Pro Forma Combined
				3 Months Ending			12 Months
							Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22
Revenues:
Distribution	$	5	$	5	$	4	$	4	$	18
Advertising		9		10		8		(3)		24
Content		3,352		3,187		2,884		3,631		13,054
Other		138		162		192		210		702
Total revenues		3,504		3,364		3,088		3,842		13,798
Costs of revenues, excluding		2,065		2,334		1,756		2,547		8,702
depreciation and amortization
Selling, general and administrative		629		621		570		527		2,347
Adjusted EBITDA(1)	$	810	$	409	$	762	$	768	$	2,749

Actual

			3 Months Ending			12 Months		3 Months
						Ending			Ending
	3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
$	3	$	3	$	13	$	(2)	$	17		$	5
	3		4		4		4		15			4
	3,027		2,398		3,000		2,933		11,358			2,623
	179		176		209		238		802			189
	3,212		2,581		3,226		3,173		12,192			2,821
	1,959		1,645		1,794		1,898		7,296			2,019
	646		630		705		732		2,713			618
$	607	$	306	$	727	$	543	$	2,183		$	184

The information in the above table for the three months ended March 31, 2022 through the three months ended December 31, 2022 present WBD's financial results as if the Merger had been completed on 1/1/21 rather than on 4/8/22.

Items impacted by this pro forma presentation are primarily related to Purchase Price Amortization, included within depreciation and amortization, and Amortization of Fair Value Step-up for Content.

For the three months ended March 31, 2023 and subsequent periods, the above table presents WBD's actual financial results based on the Merger completion date of 4/8/22.

Networks segment

Unaudited; in millions

				Pro Forma Combined
				3 Months Ending			12 Months
							Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22
Revenues:
Distribution	$	3,132	$	3,012	$	2,924	$	2,874	$	11,942
Advertising		2,632		2,802		1,944		2,226		9,604
Content		515		241		277		307		1,340
Other		53		66		69		112		300
Total revenues		6,332		6,121		5,214		5,519		23,186
Costs of revenues, excluding		2,950		3,020		1,906		2,278		10,154
depreciation and amortization
Selling, general and administrative		796		744		678		763		2,981
Adjusted EBITDA(1)	$	2,586	$	2,357	$	2,630	$	2,478	$	10,051

Actual

			3 Months Ending			12 Months		3 Months
						Ending			Ending
	3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
$	2,995	$	2,941	$	2,833	$	2,752	$	11,521		$	2,797
	2,237		2,448		1,709		1,948		8,342			1,987
	245		284		215		261		1,005			264
	104		85		111		76		376			77
	5,581		5,758		4,868		5,037		21,244			5,125
	2,594		2,849		1,800		2,099		9,342			2,372
	694		743		672		730		2,839			634
$	2,293	$	2,166	$	2,396	$	2,208	$	9,063		$	2,119

The information in the above table for the three months ended March 31, 2022 through the three months ended December 31, 2022 present WBD's financial results as if the Merger had been completed on 1/1/21 rather than on 4/8/22.

Items impacted by this pro forma presentation are primarily related to Purchase Price Amortization, included within depreciation and amortization, and Amortization of Fair Value Step-up for Content.

For the three months ended March 31, 2023 and subsequent periods, the above table presents WBD's actual financial results based on the Merger completion date of 4/8/22.

DTC segment

Unaudited; in millions, except for ARPU(2)

				Pro Forma Combined
				3 Months Ending			12 Months
							Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22
Revenues:
Distribution	$	2,211	$	2,164	$	2,062	$	2,084	$	8,521
Advertising		81		97		106		123		407
Content		221		143		145		243		752
Other		2		6		4		1		13
Total revenues		2,515		2,410		2,317		2,451		9,693
Costs of revenues, excluding		1,994		2,065		2,118		2,011		8,188
depreciation and amortization
Selling, general and administrative		1,175		903		833		657		3,568
Adjusted EBITDA(1)	$	(654)	$	(558)	$	(634)	$	(217)	$	(2,063)

Actual

			3 Months Ending			12 Months		3 Months
						Ending			Ending
	3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
$	2,165	$	2,192	$	2,179	$	2,167	$	8,703		$	2,185
	103		121		138		186		548			175
	185		410		120		171		886			99
	2		9		1		5		17			1
	2,455		2,732		2,438		2,529		10,154			2,460
	1,815		1,951		1,874		1,983		7,623			1,895
	590		784		453		601		2,428			479
$	50	$	(3)	$	111	$	(55)	$	103		$	86

								Subscriber Metrics
			3 Months Ending			12 Months					3 Months Ending			12 Months		3 Months
					Ending							Ending			Ending
	3/31/22		6/30/22		9/30/22		12/31/22	12/31/22			3/31/23		6/30/23		9/30/23		12/31/23	12/31/23			3/31/24
Global Max, HBO Max, HBO, and	91.6		93.2		96.0		96.9	96.9			98.5		96.6		95.9		97.7	97.7			99.6
Discovery+ Subscribers(3)
Global ARPU		$	7.62	$	7.41	$	7.42			$	7.54	$	7.77	$	7.88	$	7.94			$	7.83
Domestic Subscribers	53.4		53.1		53.6		54.6	54.6			55.3		54.0		52.6		52.0	52.0			52.7
Domestic ARPU		$	10.54	$	10.66	$	10.83			$	10.82	$	11.09	$	11.29	$	11.65			$	11.72
International Subscribers	38.2		40.1		42.4		42.3	42.3			43.2		42.6		43.3		45.6	45.6			46.9
International ARPU		$	3.70	$	3.54	$	3.45			$	3.68	$	3.85	$	3.98	$	3.88			$	3.75

The information in the above table for the three months ended March 31, 2022 through the three months ended December 31, 2022 present WBD's financial results as if the Merger had been completed on 1/1/21 rather than on 4/8/22.

Items impacted by this pro forma presentation are primarily related to Purchase Price Amortization, included within depreciation and amortization, and Amortization of Fair Value Step-up for Content.

For the three months ended March 31, 2023 and subsequent periods, the above table presents WBD's actual financial results based on the Merger completion date of 4/8/22.

Corporate, and Inter-segment Eliminations

Unaudited; in millions

Pro Forma Combined

Actual

				3 Months Ending			12 Months
						Ending
Corporate Segment		3/31/22		6/30/22		9/30/22		12/31/22	12/31/22
Adjusted EBITDA(1)	$	(357)	$	(405)	$	(340)	$	(451)	$ (1,553)

			3 Months Ending			12 Months
					Ending
	3/31/23		6/30/23		9/30/23		12/31/23	12/31/23
$	(355)	$	(245)	$	(328)	$	(314)	$ (1,242)

• Months Ending

3/31/24

• (346)

Pro Forma Combined

Actual

				3 Months Ending			12 Months
							Ending
Inter-segment Eliminations		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22
Inter-segment revenue eliminations	$	(926)	$	(1,088)	$	(785)	$	(832)	$	(3,631)
Inter-segment expense eliminations		(922)		(1,051)		(791)		(857)		(3,621)
Adjusted EBITDA(1)	$	(4)	$	(37)	$	6	$	25	$	(10)

			3 Months Ending			12 Months
						Ending
	3/31/23		6/30/23		9/30/23		12/31/23		12/31/23
$	(548)	$	(712)	$	(551)	$	(458)	$	(2,269)
	(564)		(637)		(614)		(547)		(2,362)
$	16	$	(75)	$	63	$	89	$	93

• Months Ending

3/31/24

• (449)
  (508)

• 59

The information in the above table for the three months ended March 31, 2022 through the three months ended December 31, 2022 present WBD's financial results as if the Merger had been completed on 1/1/21 rather than on 4/8/22.

Items impacted by this pro forma presentation are primarily related to Purchase Price Amortization, included within depreciation and amortization.

For the three months ended March 31, 2023 and subsequent periods, the above table presents WBD's actual financial results based on the Merger completion date of 4/8/22.

Free Cash Flow (non-GAAP); Net debt (non-

GAAP)

Reported unless where otherwise noted; unaudited; in millions

												Reported
				3 Months Ending			12 Months					3 Months Ending			12 Months		3 Months
							Ending								Ending			Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22			3/31/23		6/30/23		9/30/23		12/31/23		12/31/23			3/31/24
Reported Free Cash Flow:
Cash provided by (used for) operating	$	323	$	1,011	$	124	$	2,846	$	4,304		$	(631)	$	2,014	$	2,516	$	3,578	$	7,477		$	585
activities
Less: Purchases of property and		(85)		(222)		(316)		(364)		(987)			(299)		(292)		(457)		(268)		(1,316)			(195)
equipment
Reported Free Cash Flow(4)(*)	$	238	$	789	$	(192)	$	2,482	$	3,317		$	(930)	$	1,722	$	2,059	$	3,310	$	6,161		$	390
Reported Gross to Net Debt:
Current portion of debt	$	794	$	1,097	$	1,257	$	365	$	365		$	3,496	$	3,001	$	1,302	$	1,780	$	1,780		$	3,430
Plus: Noncurrent portion of debt		14,030		51,662		48,887		48,911		48,911			45,719		44,563		43,785		42,175		42,175			39,415
Plus: Finance leases		249		284		268		268		268			251		246		258		265		265			325
Reported Gross Debt(5)(*)	$	15,073	$	53,043	$	50,412	$	49,544	$	49,544		$	49,466	$	47,810	$	45,345	$	44,220	$	44,220		$	43,170
Less: Cash and cash equivalents		4,165		3,896		2,513		3,930		3,930			2,639		3,077		2,430		4,319		4,319			3,386
Reported Net Debt(6)(*)	$	10,910	$	49,147	$	47,899	$	45,614	$	45,614		$	46,827	$	44,733	$	42,915	$	39,901	$	39,901		$	39,784
LTM EBITDA(7)(*)		4,007		9,556		9,312		9,174		9,174			9,404		9,787		10,332		10,200		10,200			9,691

LTM Gross Leverage Ratio(8)(*)	3.8x	5.6x	5.4x	5.4x	5.4x
LTM Net Leverage Ratio(9)(*)	2.7x	5.1x	5.1x	5.0x	5.0x

5.3x	4.9x	4.4x	4.3x	4.3x
5.0x	4.6x	4.2x	3.9x	3.9x

4.5x

4.1x

1. A non-GAAP financial measure; see the Notes and Definitions section for additional details and the below reconciliations. For the period ending 3/31/22, LTM EBITDA is based on historical Discovery, Inc. standalone Adjusted OIBDA.

For the periods ending 6/30/22 through 12/31/22, LTM EBITDA is based on pro forma combined Adjusted EBITDA contained in this trending schedule.

For the period ending 3/31/23, LTM EBITDA is based on pro forma combined Adjusted EBITDA for the periods ending 6/30/22 through 12/31/22 and actual Adjusted EBITDA for the period ending 3/31/23.

For the period ending 6/30/23, LTM EBITDA is based on pro forma combined Adjusted EBITDA for the periods ending 9/30/22 through 12/31/22 and actual Adjusted EBITDA for the periods ending 3/31/23 through 6/30/23.

For the period ending 9/30/23, LTM EBITDA is based on pro forma combined Adjusted EBITDA for the period ending 12/31/22 and actual Adjusted EBITDA for the periods ending 3/31/23 through 9/30/23.

For the period ending 12/31/23 and subsequent periods, LTM EBITDA is based on actual Adjusted EBITDA.

For more information, please refer note seven (7) in the Notes and Definitions as well as the New Financial Measures disclosure.

2022 Pro forma combined consolidated statement of operations (GAAP income statement)

Unaudited; in millions

				Pro Forma Combined
				3 Months Ending			12 Months
							Ending
		3/31/22		6/30/22		9/30/22		12/31/22		12/31/22
Revenues:
Distribution	$	5,348	$	5,181	$	4,990	$	4,962	$	20,481
Advertising		2,710		2,899		2,042		2,285		9,936
Content		3,174		2,510		2,531		3,442		11,657
Other		209		233		260		319		1,021
Total revenues		11,441		10,823		9,823		11,008		43,095
Costs and expenses:
Costs of revenues, excluding		6,497		7,145		5,399		6,526		25,567
depreciation and amortization
Selling, general and administrative		3,338		2,985		2,589		2,511		11,423
Depreciation and amortization		1,942		1,846		1,768		1,671		7,227
Restructuring and other charges		4		944		1,521		1,198		3,667
Impairments and (gain) loss on		-		4		43		70		117
dispositions
Total costs and expenses		11,781		12,924		11,320		11,976		48,001
Operating loss		(340)		(2,101)		(1,497)		(968)		(4,906)
Interest expense, net		(598)		(565)		(568)		(561)		(2,292)
Other income (expense), net		577		(76)		(106)		(89)		306
(Loss) before income taxes		(361)		(2,742)		(2,171)		(1,618)		(6,892)
Income tax benefit		81		896		398		232		1,607
Net (loss)		(280)		(1,846)		(1,773)		(1,386)		(5,285)
Net income attributable to noncontrolling		(19)		(11)		(22)		(22)		(74)
interests
Net (loss) available to Warner Bros.	$	(299)	$	(1,857)	$	(1,795)	$	(1,408)	$	(5,359)
Discovery, Inc.

The information in the above table presents WBD's financial results as if the Merger had been completed on 1/1/21 rather than on 4/8/22.

Items impacted by this pro forma presentation are primarily related to Purchase Price Amortization, included within depreciation and amortization, and Amortization of Fair Value Step-up for Content, included within Cost of Revenues.