Item 2.05. Costs Associated with Exit or Disposal Activities
As previously disclosed in the Original Form 8-K, the Company anticipated that it would incur total pre-tax restructuring charges of $3.2 - $4.3 billion related to its restructuring and transformation initiatives, which included content impairment and development write-offs of approximately $2.0 - $2.5 billion.
The Company has revised certain estimates related to its restructuring and transformation initiatives that were previously disclosed in the Original Form 8-K, which indicated that the strategic analysis of content programming was ongoing. The Company now expects to incur total pre-tax restructuring charges of $4.1 - $5.3 billion, which includes $2.8 - $3.5 billion of content impairment and development write-offs. The Company is not revising the previously disclosed estimates for organization restructuring costs, facility consolidation activities and other contract termination costs, or cash expenditures.
The Company’s restructuring efforts are ongoing and could result in additional impairments above the revised estimates. The restructuring initiatives are still expected to be substantially completed by the end of 2024.
The revised estimates noted above are subject to a number of assumptions. Actual results may differ materially as a result of various important factors, including the risks and uncertainties described under the heading “Cautionary Note Regarding Forward-Looking Statements” below.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this filing contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties and on information available to Warner Bros. Discovery as of the date hereof. Warner Bros. Discovery’s actual results could differ materially from those stated or implied due to risks and uncertainties associated with its business, which include the risk factors disclosed in the Company's 2021 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 24, 2022, in the Company’s Quarterly Report on Form 10-Q filed with the SEC on April 26,
2022, in the Company's Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022 and its subsequent filings made with the SEC. Forward-looking statements include statements regarding Warner Bros. Discovery’s expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. Forward-looking statements include, without limitation, statements regarding future financial and operating results, Warner Bros. Discovery’s plans, objectives, expectations and intentions, targets and other statements that are not historical facts. Warner Bros. Discovery expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in
Warner Bros. Discovery’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.