What changed in this filing

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Item 1. Business

2022-02-24 compared with 2021-02-22 · 170 added, 162 removed, 260 unchanged (56% of the section changed)

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and one or more of its consolidated subsidiaries, unless the context otherwise requires.

On March 6, 2018, the Company acquired Scripps Networks Interactive, Inc.

("Scripps Networks") and changed its name from "Discovery Communications, Inc." to "Discovery, Inc." (See Note 3 to the accompanying consolidated financial statements.)

In May 2021, the Company entered into an agreement with AT&T Inc.

to combine with WarnerMedia’s ("WarnerMedia") entertainment, sports and news assets to create a standalone, global entertainment company.

The proposed combination transaction will be executed through a Reverse Morris Trust type transaction, under which WarnerMedia will be distributed to AT&T’s shareholders via a pro rata distribution (i.e., a spin off).

In connection with the combination transaction, AT&T will receive approximately $43 billion (subject to working capital and other adjustments) in a combination of cash, debt securities and WarnerMedia’s retention of certain debt.

The Company has concluded that it will be considered the accounting acquirer.

The Company established an interest rate derivative program to mitigate interest rate risk associated with the anticipated issuance of future fixed-rate debt by WarnerMedia, which is expected to be guaranteed by the Company and certain subsidiaries of the Company upon closing of the transaction.

(See Note 10 to the accompanying consolidated financial statements.)

Immediately prior to closing, all shares of Series A, Series B, and Series C common stock and Series A-1 and Series C-1 convertible preferred stock will be reclassified and converted to one class of the Company's common stock.

AT&T’s shareholders that receive WarnerMedia stock in the distribution will receive stock representing 71% of the combined company and the

Company's shareholders will continue to own 29% of the combined company, in each case on a fully diluted basis.

The Boards of Directors of both AT&T and the Company have approved the transaction.

The transaction is anticipated to close in the second quarter of 2022, subject to approval by the Company's shareholders and the satisfaction of customary closing conditions, including receipt of regulatory approvals.

On December 22, 2021, the transaction received unconditional antitrust clearance from the European Commission (“EC”) pursuant to the EC Merger Regulation, and on December 28, 2021, AT&T received a favorable Private Letter Ruling from the Internal Revenue Service regarding the qualification of the transactions for their intended tax-free treatments.

On February 9, 2022, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, statutory waiting period has expired or otherwise been terminated, and any agreement not to consummate the transaction between the parties and the Federal Trade Commission or the Antitrust Division of the United States Department of Justice or any other applicable governmental entity, has also expired or otherwise been terminated.

Discovery and AT&T are in the process of obtaining other required regulatory approvals.

Agreements are in place with Dr.

John Malone and Advance/Newhouse Programming Partnership to vote in favor of the transaction, representing approximately 43% of the aggregate voting power of the shares of Discovery voting stock.

The transaction requires, among other things, the consent of Advance/Newhouse Programming Partnership under the Company's certificate of incorporation as the sole holder of the Series A-1 Preferred Stock, which consent was given pursuant to a consent agreement.

In connection with Advance/Newhouse Programming Partnership’s entry into the consent agreement and related forfeiture of the significant rights attached to the Series A-1 Preferred Stock in the reclassification of the shares of Series A-1 Preferred Stock into common stock, it will receive an increase to the number of shares of common stock of the Company into which the Series A-1 Preferred Stock would be converted.

Upon the closing, the impact of the issuance of such additional shares of common stock of the Company will be recorded as a transaction expense.

No vote by AT&T shareholders is required.

The merger agreement contains certain customary termination rights for Discovery and AT&T, including, without limitation, a right for either party to terminate if the transaction is not completed on or before July 15, 2023.

Termination under specified circumstances will require Discovery to pay AT&T a termination fee of $720 million or AT&T to pay Discovery a termination fee of $1.8 billion.

In anticipation of this combination, in June 2021, Magallanes, Inc., a wholly owned subsidiary of AT&T Inc., entered into a $10 billion term loan that will be guaranteed by the Company and certain material subsidiaries of the Company upon closing of the transaction.

Impact of COVID-19

On March 11, 2020, the World Health Organization declared the coronavirus disease 2019 (“COVID-19”) outbreak to be a global pandemic.

COVID-19 continues to spread throughout the world, and the duration and severity of its effects and associated economic disruption remain uncertain.

Restrictions on social and commercial activity in an effort to contain the virus have had, and are expected to continue to have, a significant adverse impact upon many sectors of the U.S.

and global economy, including the media industry.

COVID-19 has continued to spread throughout the world, and the duration and severity of its effects and associated economic disruption remain uncertain.

We continue to closely monitor the impact of COVID-19 on all aspects of our business and geographies, including the impact on our customers, employees, suppliers, vendors, distribution and advertising partners, production facilities, and various other third parties.

Beginning in the second quarter of 2020, demand for our advertising products and services decreased due to economic disruptions from limitations on social and commercial activity.

These economic disruptions and the resulting effect on the Company slightly eased during the second half of 2020, but the pandemic continued to impact demand through the end of 2020 and this decreased demand is expected to continue into 2021.

These economic disruptions and the resulting effect on us eased during the second half of 2020.

The pandemic did not have a significant impact on demand during fiscal year 2021.

Many of our third-party production partners that were shut down during most of the second quarter of 2020 due to COVID-19 restrictions came back online in the third quarter of 2020 and, as a result, we have incurred additional costs to comply with various governmental regulations and implement certain safety measures for our employees, talent, and partners.

Additionally, certain sporting events that we have rights to were cancelled or postponed, thereby eliminating or deferring the related revenues and expenses, including the Tokyo 2020 Olympic Games, which were postponed to 2021.

The postponement of the 2020 Olympic Games deferred both Olympic-related revenues and significant expenses from fiscal year 2020 to fiscal year 2021.

In response to the impact of the pandemic, we employed and continue to employ innovative production and programming strategies, including producing content filmed by our on-air talent and seeking viewer feedback on which content to air.

We also implemented remote work arrangements effective mid-March 2020 and, to date, these arrangements have not materially affected our ability to operate our business.

The effects of the pandemic may have further negative impacts on our financial position, results of operations, and cash flows.

However, we are unable to predict the ongoing impact that COVID-19 will have on our financial position, operating results, and cash flows due to numerous uncertainties.

The nature and extent of COVID-19’s effects on our operations and results will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity and the extent of future surges of COVID-19, vaccine distribution and other actions to contain the virus or treat its impact, among others.

In response to the impact of the pandemic, we employed innovative production and programming strategies, including producing content filmed by our on-air talent and seeking viewer feedback on which content to air.

We pursued a number of cost savings initiatives, which began during the third quarter of 2020 through the implementation of travel, marketing, production and other operating cost reductions, including personnel reductions, restructurings and resource reallocations to align our expense structure to ongoing changes within the industry.

The full extent of COVID-19’s effects on our operations and results is not yet known and will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity and the extent of future surges of COVID-19, vaccine distribution and other actions to contain the virus or treat its impact, among others.

We will continue to monitor COVID-19 and its impact on our business results and financial condition.

The consolidated financial statements set forth in this Annual Report on Form 10-K reflect management’s latest estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented.

Actual results may differ significantly from these estimates and assumptions.

We are a global media company that provides content across multiple distribution platforms, including linear platforms such as pay-television ("pay-TV"), free-to-air ("FTA") and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing arrangements and direct-to-consumer ("DTC") subscription products.

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We distribute customized content in the U.S.

and over 220 other countries and territories in nearly 50 languages.

and over 220 other countries and territories in over 50 languages.

We have an extensive library of content and own most rights to our content and footage, which enables us to leverage our library to quickly launch brands and services into new markets and on new platforms.

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Our content spans genres including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids.

Our global portfolio of networks includes prominent nonfiction television brands such as Discovery Channel, our most widely distributed global brand, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, and MotorTrend (previously known as Velocity domestically and currently known as Turbo in most international countries).

Among other networks in the U.S., Discovery also features two Spanish-language services, Discovery en Español and Discovery Familia.

Our international portfolio also includes Eurosport, a leading sports entertainment provider and broadcaster of the Olympic Games (the "Olympics") across Europe (excluding Russia), TVN, a Polish media company, as well as Discovery Kids, a leading children's entertainment brand in Latin America.

We participate in joint ventures including Magnolia, the recently formed multi-platform venture with Chip and Joanna Gaines, and Group Nine Media ("Group Nine"), a digital media holding company home to top digital brands including NowThis News, the Dodo, Thrillist, PopSugar, and Seeker.

We operate production studios, and prior to the sale of our Education Business in April 2018, we sold curriculum-based education products and services.

(See Note 3 to the accompanying consolidated financial statements.)

During the fourth quarter of 2020, we announced the global launch of our aggregated DTC product, discovery+, a non-fiction, real life subscription service.

In January 2021, we launched discovery+ in the U.S.

across several streaming platforms and entered into a partnership with Verizon, which is offering access to discovery+ for up to 12 months to certain of its customers.

The global rollout of discovery+ across more than 25 markets has already begun with the U.K.

and Ireland, where we have partnered with Sky, and India.

We also have a partnership with Vodafone, which will provide discovery+ to existing Vodafone TV and mobile customers in 12 markets across Europe.

Upon launch in the U.S., discovery+ included an extensive content library comprised of more than 55,000 episodes and features a wide array of exclusive, original series from the Discovery portfolio of brands that have a strong leadership position.

The service is available with ads or on an ad-free tier, providing Discovery with dual revenue streams.

Discovery Sports oversees our international portfolio of sports businesses, brands, channels and platforms.

This includes Eurosport, a leading multi-sports entertainment destination and broadcaster of the Olympic Games (the "Olympics") across Europe (excluding Russia), live and on-demand sports streaming, including Eurosport’s content, on discovery+;

Global Cycling Network and Global Mountain Bike Network, part of the cycling media group;

Golf Digest, a premier golf destination;

and Discovery Sports Events, a global sports promoter.

Beyond sports, our international portfolio includes TVN, a Polish media company, as well as Discovery Kids, a leading children's entertainment brand in Latin America.

We participate in joint ventures including Magnolia, the multi-platform venture with Chip and Joanna Gaines, and Group Nine Media, a digital media holding company home to digital brands including NowThis News, the Dodo, Thrillist, PopSugar, and Seeker.

We also operate production studios.

In 2021, we launched discovery+, our aggregated DTC product, in the U.S.

across several streaming platforms and entered into a partnership with Verizon.

Since then, discovery+ has expanded internationally, including the UK, Canada, the Philippines, Brazil, Italy and India.

As of December 31, 2021, we had 22 million total paid DTC subscribers.

1 discovery+ currently has an extensive content library, including original series and documentaries.

The service is available with ads or on an ad-free tier, providing us with dual revenue streams.

We aim to generate revenues principally from the sale of advertising on our networks and digital products and from fees charged to distributors that carry our network brands and content, primarily including cable, direct-to-home ("DTH") satellite, telecommunication and digital service providers, as well as through DTC subscription services.

Other transactions include affiliate and advertising sales representation services, production studios content development and services content licenses, the licensing of our brands for consumer products, and in 2018, curriculum-based products and services.

Other revenue-generating transactions include affiliate and advertising sales representation services, production studios content development and services content licenses, and the licensing of our brands for consumer products.

During 2021, advertising, distribution and other revenues were 51%, 44% and 5%, respectively, of consolidated revenues.

No individual customer represented more than 10% of our total consolidated revenues for 2020, 2019 or 2018.

We invest in high-quality content for our networks and brands with the objective of building viewership, optimizing distribution revenue, capturing advertising revenue, and creating or repositioning branded channels and business to sustain long-term growth and occupy a desired content niche with strong consumer appeal.

Our strategy is to maximize the distribution, ratings and profit potential of each of our branded networks.

In addition to growing distribution and advertising revenues for our branded networks, we have extended content distribution across new platforms, including brand-aligned websites, online streaming, mobile devices, video on demand (“VOD”), and broadband channels, which provide promotional platforms for our television content and serve as additional outlets for advertising and distribution revenue.

Audience ratings are a key driver in generating advertising revenue and creating demand on the part of cable television operators, DTH satellite operators, telecommunication service providers, and other content distributors who deliver our content to their customers.

1 We define a DTC subscription as (i) a subscription to a direct-to-consumer product for which we have recognized subscription revenue from a direct-to-consumer platform;

(ii) a subscription received through wholesale arrangements for which we receive a fee for the distribution of our direct-to-consumer platforms, as well as subscriptions provided directly or through third-party platforms;

and (iii) a subscription recognized by certain joint venture partners and affiliated parties.

We may refer to the aggregate number of subscriptions across our direct-to-consumer services as subscribers.

A subscription is only counted if it is on a paying status, and excludes users on free trials.

At the end of each quarter, the subscription count includes the actual number of users that rolled to pay up to seven days immediately following quarter end.

We aim to invest in high-quality content for our networks and brands with the objective of building viewership, optimizing distribution revenue, capturing advertising revenue, and creating or repositioning branded channels and business to sustain long-term growth and occupy a desired content niche with strong consumer appeal.

Our strategy is to maximize the distribution, ratings and profit potential of each of our linear branded networks and genres, as well as our DTC products.

We have grown distribution and advertising revenues for our linear branded networks and discovery+.

In addition to growing distribution and advertising revenues for our branded networks, we have extended content distribution across new platforms, including brand-aligned websites, online streaming, mobile devices, VOD, and broadband channels, which provide promotional platforms for our television content and serve as additional outlets for advertising and distribution revenue.

Our goal is to reach consumers wherever and whenever they are consuming content, as well as reaching new audiences including broadband only, cord cutters and cord nevers, while continuing to serve our linear network subscribers.

Audience ratings, audience engagement and channel packaging are key drivers in generating advertising revenue and creating demand on the part of cable television operators, DTH satellite operators, telecommunication service providers, device partners and other content distributors who deliver our content to their customers.

Although we utilize certain brands and content globally, we classify our operations in two reportable segments:

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as of December 31, 2021.

Discovery Channel and the Discovery HD Showcase brand had approximately 277 million cumulative subscribers and viewers in international markets as of December 31, 2020.

Discovery Channel had approximately 266 million cumulative subscribers and viewers in international markets as of December 31, 2021.

• Discovery Channel is dedicated to creating high-quality, non-fiction content that informs and entertains its viewers about the world in all its wonder, diversity and amazement.

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• In the U.S., Discovery Channel audiences can enjoy their favorite programming anytime, anywhere through the Discovery GO app, which features live and on-demand access.

• Discovery Channel content includes Gold Rush , Naked and Afraid , Deadliest Catch , Fast N' Loud, Street Outlaws, Alaskan Bush People, Expedition Unknown , BattleBots , Undercover Billionaire and Serengeti.

Discovery Channel is also home to Shark Week , the network's long-running annual summer TV event.

• Target viewers are adults aged 25 to 54, particularly men.

• Discovery Channel content is led by numerous franchises such as Gold Rush, Street Outlaws, Deadliest Catch, Moonshiners, Expedition Unknown, BattleBots, and Naked & Afraid .

It is also known for its blue-chip and natural history specials such as Serengeti , and is home to Shark Week , the network's long-running annual summer TV event.

• Target viewers are adults in the 25 to 54 age range, particularly men.

• HGTV had approximately 82 million subscribers in the U.S.

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• Content on HGTV includes:

Property Brothers , Brother vs.

Brother , Celebrity IOU , Flip or Flop , Christina on the Coast , Flipping 101 with Tarek El Moussa , Home Town , Good Bones , Rock the Block , Design Star, House Hunters , and House Hunters International.

• Target viewers are women with higher incomes in the 25 to 54 age range.

• The most widely distributed ad-supported cable network in the U.S., Food Network had approximately 87 million subscribers in the U.S.

Home Town, Home Town Takeover, Flip or Flop, Christina on the Coast, Flipping 101, Love It or List It, Tough Love with Hilary Farr, Celebrity IOU, Property Brothers:

Forever Home, Fixer to Fabulous, House Hunters, My Lottery Dream Home, Good Bones, Unsellable Houses, and Rock the Block.

• Target viewers are adults with higher incomes in the 25 to 54 age range, particularly women.

• Our most widely distributed ad-supported cable network in the U.S., Food Network had approximately 82 million subscribers in the U.S.

and approximately 112 million subscribers and viewers in international markets as of December 31, 2021.

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• In the U.S., Food Network audiences can enjoy their favorite programming anytime, anywhere through the Discovery GO app, which features live and on-demand access, as well as on the Food Network Kitchen app.

• Content on Food Network includes primetime series Beat Bobby Flay , Chopped , Diners, Drive-ins and Dives , The Great Food Truck Race, Guy’s Grocery Games , Worst Cooks in America , and several seasonal baking championships, as well as daytime series Barefoot Contessa , Giada Entertains , Girl Meets Farm , Guy's Ranch Kitchen , The Kitchen , The Pioneer Woman, Trisha’s Southern Kitchen and Valerie's Home Cooking .

• Content on Food Network includes primetime series Beat Bobby Flay, BBQ Brawl, Chef Boot Camp, Chopped, Diners, Drive-Ins and Dives, The Great Food Truck Race, Guy’s Grocery Games, Restaurant:

Impossible, Worst Cooks in America , and several seasonal baking championships such as Christmas Cookie Challenge, Halloween Baking Championship, Halloween Wars, Holiday Baking Championship, Holiday Wars, Spring Baking Championship and more, as well as daytime series Barefoot Contessa, Delicious Miss Brown, Girl Meets Farm, Guy's Ranch Kitchen, The Kitchen, The Pioneer Woman, Simply Giada, Trisha’s Southern Kitchen, Tournament of Champions, and Valerie's Home Cooking .

• Target viewers are adults with higher incomes in the 25 to 54 age range, particularly women.

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Networks segment as of December 31, 2021.

TLC content had approximately 356 million cumulative subscribers and viewers in international markets as of December 31, 2020 including the Home & Health, Real Time, and Living brands.

TLC content had approximately 357 million cumulative subscribers and viewers in international markets as of December 31, 2021 including the Home & Health and Real Time brands.

• Offering real-life stories without judgment, TLC shares everyday heart, humor, hope, and human connection with programming genres that include fascinating families, heartwarming transformations and life's milestone moments.

• In the U.S., TLC audiences can enjoy their favorite programming anytime, anywhere through the Discovery GO app, which features live and on-demand access.

• Content on TLC includes the 90 Day Fiancé franchise, Little People, Big World, I Am Jazz and Outdaughtered.

• Target viewers are adults aged 25 to 54, particularly women.

• Content on TLC includes the 90 Day Fiancé franchise, Sister Wives, I Am Jazz, Dr.

Pimple Popper, 1,000-lb Sisters, Welcome to Plathville, Doubling Down with the Derricos, I am Shauna Rae, 7 Little Johnstons, My Big Fat Fabulous Life, Little People Big World, Unexpected, I Love a Mama's Boy, My 600-lb Life, and My Feet Are Killing Me.

• Target viewers are adults in the 25 to 54 age range, particularly women.

• Animal Planet had approximately 79 million subscribers in the U.S.

and approximately 178 million subscribers and viewers in international markets as of December 31, 2021.

• Animal Planet is dedicated to creating high quality content with global appeal delivering on its mission to keep the childhood joy and wonder of animals alive by bringing people up close in every way.

• Animal Planet is dedicated to creating high quality content that keeps the childhood joy and wonder of animals alive by showcasing their stories and the people that work with them.

• In the U.S., Animal Planet audiences can enjoy their favorite programming anytime, anywhere through the Animal Planet GO app, which features live and on-demand access.

• Content and talent on Animal Planet include Crikey!

It's the Irwins , The Zoo , The Zoo:

It's the Irwins, The Zoo, Mysterious Creatures with Forrest Galante, The Zoo:

San Diego, Pit Bulls & Parolees, Dr.

Rocky Mountain Vet, The Aquarium and Puppy Bowl.

• Target viewers are adults aged 25 to 54.

Rocky Mountain Vet, North Woods Law and Lone Star Law .

Animal Planet is also home to Puppy Bowl , the original and longest running animal adoption event on television.

• Target viewers are adults in the 25 to 54 age range.

• Investigation Discovery ("ID") had approximately 81 million subscribers in the U.S.

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• ID is a leading true crime, mystery and suspense network.

From in-depth investigations to heart-breaking mysteries, ID challenges our everyday understanding of culture, society and the human condition.

From in-depth investigations to riveting mysteries, ID challenges our everyday understanding of culture, society and the human condition.

• In the U.S., ID audiences can enjoy their favorite programming anytime, anywhere through the Discovery GO app, which features live and on-demand access.

• ID content includes On the Case with Paula Zahn, Homicide Hunter:

Joe Kenda, In Pursuit with John Walsh, and the ID Murder Mystery franchise .

• Target viewers are adults aged 25 to 54, particularly women.

• ID content includes On the Case with Paula Zahn, American Detective with Lt.

Joe Kenda, In Pursuit with John Walsh, Evil Lives Here and Bodycam.

• Target viewers are adults in the 25 to 54 age range, particularly women.

• Travel Channel had approximately 79 million subscribers in the U.S.

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• In the U.S., Travel Channel audiences can enjoy their favorite programming anytime, anywhere through the Discovery GO app which, features live and on-demand access.

• Content on Travel Channel includes Ghost Adventures , The Osbournes Want to Believe , Expedition Bigfoot and Ghost Nation .

• Target viewers are adults aged 25 to 54.

• Content on Travel Channel includes Ghost Adventures , Destination Fear , Eli Roth Presents:

A Ghost Ruined My Life, Expedition Bigfoot, Ghost Brothers:

Lights Out, Kindred Spirits, Portals to Hell, and Paranormal Caught on Camera.

• Target viewers are adults in the 25 to 54 age range.

• MotorTrend had approximately 75 million subscribers in the U.S.

and approximately 152 million subscribers and viewers in international markets, where the brand is known as Turbo, as of December 31, 2021.

• Programming on MotorTrend and the MotorTrend App, the leading subscription streaming service dedicated entirely to the motoring world, is engaging and informative, featuring the best of the automotive world as told by top experts and personalities.

• The MotorTrend App offers more than 8,000 episodes and more than 3,600 hours of automotive series and specials including the most complete collection of classic Top Gear (200+ episodes and specials spanning seasons one through 27), the all-new Top Gear America and NASCAR 2020:

Under Pressure , plus every season of Speed Racer, Wheeler Dealers, Roadkill, Fast N’ Loud, Bitchin’ Rides, Iron Resurrection, Texas Metal and many more.

The MotorTrend App is available on media players and streaming devices including Amazon FireTV, Apple TV, Roku, Google Chromecast and on the web, as well as across iPhone, iPad, and Android mobile devices.

• In the U.S., MotorTrend TV audiences can also enjoy their favorite MotorTrend programming anytime, anywhere through the Discovery GO app, which features live and on-demand access.

• Target viewers are adults aged 25 to 54, particularly men.

• OWN had approximately 74 million subscribers in the U.S.

• Programming on MotorTrend TV and the MotorTrend+ App, the leading subscription streaming service dedicated entirely to the motoring world, is engaging and informative, featuring the best of the automotive world as told by top experts and personalities.

• MotorTrend+ offers more than 8,000 episodes of world-leading automotive series and specials including the all-new Top Gear America , Top Gear , the Emmy Award-winning docuseries Nascar 2020:

Under Pressure , Kevin Hart’s Muscle Car Crew , Motor Mythbusters , Wheeler Dealers , Roadkill , Bitchin’ Rides , Iron Resurrection , and Texas Metal .

• In the U.S., MotorTrend TV audiences can also enjoy their favorite MotorTrend programming anytime, anywhere through the Discovery GO app, which features live and on-demand access and on discovery+, our subscription streaming service.

• Target viewers are adults in the 25 to 54 age range, particularly men.

• The Oprah Winfrey Network ("OWN") had approximately 70 million subscribers in the U.S.

as of December 31, 2021.

• The Oprah Winfrey Network ("OWN") is the first and only network named for, and inspired by a single iconic leader.

OWN is a leading destination for premium scripted and unscripted programming from today's most innovative storytellers, with popular series such as Queen Sugar , Greenleaf , Iyanla:

Fix My Life , and new dramas Delilah and David Makes Man.

• Target viewers are African-American women aged 25 to 54.

• OWN is the first and only network named for, and inspired by a single iconic leader.

OWN is a leading destination for premium scripted and unscripted programming from today's most innovative storytellers, with popular series such as Queen Sugar, Love & Marriage:

Huntsville, Ready to Love , and upcoming dramas The Kings of Napa and All Rise .

• Target viewers are African-American adults in the 25 to 54 age range, particularly women.

Networks generated revenues of $7.7 billion and adjusted operating income before depreciation and amortization ("Adjusted OIBDA") of $3.9 billion during 2021, which represented 63% and 103% of our total consolidated revenues and Adjusted OIBDA, respectively.

Networks segment principally consists of national television networks.

Networks segment owns and operates 17 national television networks, including fully distributed television networks such as Discovery Channel, HGTV, Food Network, TLC, and Animal Planet.

Networks segment owns and operates 16 national television networks, including fully distributed television networks such as Discovery Channel, HGTV, Food Network, TLC, Investigation Discovery, Travel Channel and Animal Planet.

In addition, we operate the following U.S.

MotorTrend, Investigation Discovery, Travel Channel, Science, Discovery Family, American Heroes Channel, Destination America, Discovery Life, DIY Network, Cooking Channel, Great American Country, and OWN.

MotorTrend, DIY Network (which converted to the Magnolia Network in January 2022), Science, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Cooking Channel and OWN.

In 2021, we also provided authenticated U.S.

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networks in the Discovery portfolio and from Discovery Familia and Discovery en Español.

During 2020, we achieved incremental increases in U.S.

During 2021, we achieved increases in U.S.

digital platform consumption.

Furthermore, we provide certain networks to consumers as part of subscription-based over-the-top services provided by DirectTV Now, AT&T Watch, Hulu, SlingTV, fuboTV, and YouTube TV.

Furthermore, we provide certain networks to consumers as part of subscription-based over-the-top services provided by DirectTV Stream, AT&T Watch, Hulu + Live, SlingTV, fuboTV, and YouTube TV.

Advertising revenue is generated across multiple platforms and is based on the price received for available advertising spots and is dependent upon a number of factors including the number of subscribers to our channels, viewership demographics, the popularity of our programming, our ability to sell commercial time over a portfolio of channels and leverage multiple platforms to connect advertisers to target audiences.

In the U.S., advertising time is sold in the upfront and scatter markets.

In the upfront market, advertisers buy advertising time for upcoming seasons and, by committing to purchase in advance, lock in the advertising rates they will pay for the upcoming year.

Many upfront advertising commitments include options whereby advertisers may reduce or increase purchase commitments.

In the scatter market, advertisers buy advertising closer to the time when the commercials will be run, which often results in a pricing premium compared to the upfront rates.

The mix of upfront and scatter market advertising time sold is based upon the economic conditions at the time that upfront sales take place, impacting the sell-out levels management is willing or able to obtain.

The demand in the scatter market then impacts the pricing achieved for our remaining advertising inventory.

Scatter market pricing can vary from upfront pricing and can be volatile.

Networks generates revenues from fees charged to distributors of our television networks’ first run content, which includes cable, DTH satellite and telecommunication service providers, referred to as affiliate fees;

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Certain of our DTC products, including the recent launch of our aggregated discovery+ service in January 2021, provide dual revenue streams.

In the U.S., advertising time is sold in the upfront and scatter markets.

In the upfront market, advertisers buy advertising time for upcoming seasons and, by committing to purchase in advance, lock in the advertising rates they will pay for the upcoming year.

Many upfront advertising commitments include options whereby advertisers may reduce or increase purchase commitments.

In the scatter market, advertisers buy advertising closer to the time when the commercials will be run, which often results in a pricing premium compared to the upfront rates.

The demand in the scatter market then impacts the pricing achieved for our remaining advertising inventory.

Scatter market pricing can vary from upfront pricing and can be volatile.

During 2021, advertising, distribution and other revenues were 55%, 43%, and 2%, respectively, of total net revenues for this segment.

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Our International Networks segment principally consists of national and pan-regional television networks and brands that are delivered across multiple distribution platforms.

This segment generates revenue from operations in virtually every pay-TV market in the world through an infrastructure that includes operational centers in London, Amsterdam, Warsaw, Milan, Singapore and Miami.

Global brands include Discovery Channel, Food Network, HGTV, Animal Planet, TLC, ID, Science and MotorTrend (known as Turbo outside of the U.S.), along with brands exclusive to International Networks, including Eurosport, Discovery Kids, DMAX, Discovery Home & Health, and TVN.

TVN was acquired in March 2018, as part of our acquisition of Scripps Networks Interactive, Inc.

(the "Scripps Acquisition").

As of December 31, 2020, International Networks operates unique distribution feeds in nearly 50 languages with channel feeds customized according to language needs and advertising sales opportunities.

International Networks also has FTA networks in Europe and the Middle East and broadcast networks in Poland, Denmark, Norway, Sweden and Finland, and continues to pursue further international expansion.

During 2020, we completed the acquisition of a German free-to-air general entertainment TV channel and completed an acquisition of an independent free-to-air commercial broadcaster in New Zealand.

As of December 31, 2021, International Networks operates unique distribution feeds in over 50 languages with channel feeds customized according to language needs and advertising sales opportunities.

International Networks also has FTA and broadcast networks in Europe, and continues to pursue further international expansion.

FTA and broadcast networks generate a significant portion of International Networks' revenue.

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While pay-TV services have greater penetration in certain markets, FTA or broadcast television is dominant in others.

International Networks has a large international distribution platform with more than 80 networks, with as many as 23 networks distributed in any particular country or territory across more than 220 countries and territories around the world.

International Networks has a large international distribution platform with nearly 80 networks, with as many as 23 networks distributed in any particular country or territory across more than 220 countries and territories around the world.

International Networks pursues distribution across all television platforms based on the specific dynamics of local markets and relevant commercial agreements.

With the growing demand for consumer content on digital and mobile devices, a suite of international DTC products has been made available to consumers.

dplay, our real-life entertainment streaming service, was rebranded to our new global streaming service, discovery+, in the UK and Ireland during the fourth quarter of 2020.

The remainder of the dplay markets, including the Nordics, Italy, Spain, and the Netherlands, are expected to follow in 2021.

Discovery expects to expand its DTC offering across more than 25 key markets in 2021 by leveraging its library of local-language content, as well as its broad portfolio of live sports.

Eurosport’s existing streaming service, Eurosport Player, offers premium and localized sports to fans in 52 markets in Europe.

This service is expected to continue to be available until discovery+ launches and Eurosport Player's content is fully integrated onto the service in those markets.

Beginning with Tokyo 2020, scheduled for the summer of 2021, discovery+ will become the streaming home of the Olympics in Europe (excluding Russia) with live and on-demand access.

Eurosport will be an official broadcaster of the Olympics in France and the U.K.

for Tokyo 2020.

In Germany, we have partnered with ProSiebenSat.1 to launch the streaming service, Joyn, which offers a collection of free-TV content, with programming and live streams from more than 70 channels.

In Poland, we have partnered with Cyfrow Polsat to create a video streaming platform that, when launched, following regulatory clearance, will give viewers a single destination to access Polish content including movies, series, documentaries, sports and entertainment.

dplay, our real-life entertainment streaming service, was rebranded to our new global streaming service, discovery+.

The remainder of the dplay markets, including the UK, Ireland, the Nordics, Italy, Spain, the Netherlands and Brazil followed in 2021.

Discovery expanded its DTC offerings in 2021 by leveraging its library of local-language content, as well as its broad portfolio of live sports.

Eurosport’s existing streaming service, Eurosport Player, offers premium and localized sports to fans in Europe.

This service is expected to continue to be available until discovery+ launches in each market and Eurosport Player's content is fully integrated onto the service in those markets.

During summer 2021, discovery+ became the streaming home of the Olympics in Europe (excluding Russia) with live and on-demand access to the Tokyo Olympic Games 2020.

Eurosport and Discovery are official broadcasters of the Beijing 2022 Winter Olympics and the Paris 2024 Summer Olympics.

In Germany, we are partners with ProSiebenSat.1 in the streaming joint venture, Joyn, which offers a collection of free and pay TV content, including series, documentaries, media libraries and sports content from ProSiebenSat.1, Discovery and other content partners, all bundled on one platform.

Effective September 2020, the Company realigned its International Networks management reporting structure.

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In addition to the global networks described in the overview section above, we operate networks internationally that utilize the following brands:

• Eurosport is a household name for live sports entertainment, reaching fans across Europe and Asia via Eurosport 1, Eurosport 2, the network's DTC streaming service, Eurosport Player, and Eurosport.com.

• Subscribers and viewers for each brand as of December 31, 2020 were as follows:

• Discovery Sports represents our international portfolio of sports businesses, brands, channels, and platforms.

• Eurosport is a household name for live sports entertainment across all platforms, showcasing sporting events with both regional and pan-regional appeal.

Viewers in Europe can enjoy live-action events including coverage of cycling's Grand Tours, all four Grand Slam tennis tournaments, as well as every International Ski Federation World Cup and World Championship event during the winter sports season.

It reaches millions of viewers across Europe and Asia via Eurosport 1, Eurosport 2, the network's DTC streaming service, Eurosport Player, ahead of its move to discovery+ in all of its markets, and Eurosport.com, an online sports news and video website reaching up to 50 million unique users per month.

• Subscribers and viewers as of December 31, 2021 were as follows:

192 million and Eurosport 2:

• Live, exclusive and premium sports are at the core of what Eurosport does, showcasing sporting events with both local and pan-regional appeal.

Viewers in Europe can enjoy live action including coverage of cycling's Grand Tours, all four Grand Slam tennis tournaments, as well as every International Ski Federation World Cup and World Championship event during the winter sports season.

• Eurosport offers live and on-demand streaming on discovery+, and began integrating Eurosport’s streaming offer in Europe in 2021 and will continue across the continent in step with the continued international roll out of discovery+.

• In addition to pan-European rights, Eurosport invests in exclusive and localized rights to drive local audience and commercial relevance.

Important local sports rights include soccer leagues such as Eliteserien in Norway, Allsvenskan in Sweden and European Europa League in Sweden, Lega Basket basketball in Italy and year-round ATP World Tour tennis in France, Czech Republic, Finland, Iceland, Norway, Romania, Russia, Slovakia, and Sweden.

• In the summer of 2021, Discovery expects to present our first Olympic Summer Games, Tokyo 2020, in 50 markets and 19 languages across Europe.

discovery+ will be the exclusive streaming home of the Olympic Games, while Eurosport Player will be the destination in markets where discovery+ has not launched.

Discovery channels and platforms, such as our free-to-air networks in a selection of the Nordic markets, will also showcase the Olympics and contribute to bringing the Olympic Summer Games to more people in Europe.

• Eurosport Events is the Eurosport Group’s event management division and global promoter of the Fédération Internationale de l'Automobile (“FIA”) World Touring Car Cup and FIA European Rally Championship together with the sport’s governing body, the FIA.

It is also a promoter of the new PURE ETCR series, the world’s first all-electric touring car championship that is set to debut in 2021.

In March 2020, Eurosport Events signed a long-term agreement with the UCI, the international federation for cycling, to launch and promote a new world league for Track Cycling – the UCI Track Champions League.

Expected to debut in November 2021, the series and cycling will benefit from Discovery’s global scale, media platforms and promotion expertise to help grow cycling around the world.

Important local sports rights include soccer leagues such as Allsvenskan and European Europa League in Sweden, Lega Basket basketball in Italy, and year-round ATP World Tour tennis in France, Czech Republic, Finland, Iceland, Norway, Russia, Slovakia, and Sweden.

• discovery+ became the streaming home of the Olympics, the only place to watch all the Olympics in the European markets where the service had launched, while Eurosport Player remained the lead destination in other markets.

• Discovery Sports Events is the Discovery-owned event management division that oversees events across five continents.

Previously known as Eurosport Events, it acts as the global promoter and commercial rights-holder for six global Championships under long-term relationships with some of the world’s leading governing bodies and event owners.

It promotes the World Touring Car Cup – Fédération Internationale de Automobile (“FIA”) and the FIA eTouring World Cup, the world’s first all-electric touring car championship.

Launching in 2023, it will also promote the FIA Electric GT Championship, a new long-term platform for manufacturers to showcase their flagship GT cars and innovative technologies.

In 2021, the group launched the Union Cycliste Internationale Track Champions League, a new series in a new 10-year alliance with Fédération Internationale de Motocyclisme that will promote Speedway events globally.

• DMAX had approximately 138 million subscribers and viewers, according to internal estimates, as of December 31, 2021.

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Discovery Historia 7

Discovery en Español (b)

Fine Living Network 6

Discovery Familia (b)

(a) Number of subscribers and viewers corresponds to the sum of the subscribers and viewers to each of the Nordic broadcast networks in Sweden, Norway, Finland and Denmark subject to retransmission agreements with pay-TV providers.

The Nordic broadcast networks include Kanal 5, Kanal 9, and Kanal 11 in Sweden, TVNorge, MAX, FEM and VOX in Norway, TV 5, Kutonen, and Frii in Finland, and Kanal 4, Kanal 5, 6'eren, and Canal 9 in Denmark.

domestic subscribers data from Nielsen Media Research.

Similar to U.S.

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International Networks also include sports and FTA broadcast channels, which drive higher costs from sports rights and production and investment in broad entertainment programming for broadcast networks.

In June 2016, the U.K.

held a referendum in which voters approved an exit from the European Union (“E.U.”), commonly referred to as “Brexit.” E.U.

law provides for a departing member state to have a two-year notice period to negotiate a term of exit, which the U.K.

triggered in March 2017 and subsequently extended.

In October 2019, a revised draft withdrawal agreement was published detailing the framework of the future relationship between the U.K.

This agreement was ratified by the U.K.

and European Parliaments and on January 31, 2020, the U.K.

formally left the E.U.

Brexit may have an adverse impact on advertising, subscribers, distributors and employees, as described in Item 1A, Risk Factors, below.

The withdrawal agreement included a transitional period until December 2020.

Discovery, like many international media businesses, sought to mitigate this risk by applying for broadcast licenses in remaining E.U.

member states, thereby allowing us continued access to the E.U.

single market.

We have been operating our E.U.

pay-TV channels under Dutch jurisdiction since March 2019.

Most of our E.U.

free to air channels which were previously operating under the U.K.

authority, Ofcom, are operating under German jurisdiction as of January 1, 2021.

We continue to monitor the situation for potential effects on our distribution and licensing agreements, unusual foreign currency exchange rate fluctuations, and changes to the legal and regulatory landscape.

CONTENT DEVELOPMENT

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We retain editorial control and own most or all of the rights, in exchange for paying all development and production costs.

Production of digital-first content such as virtual reality and short-form video is typically done through wholly-owned production studios.

Coproduced content refers to program rights on which we have collaborated with third parties to finance and develop either because world-wide rights are not available for acquisition or we save costs by collaborating with third parties.

Licensed content is comprised of films or series that have been produced by third parties.

Licensed content is comprised of films or series that have been produced by third parties and where we do not own the rights.

Payments for sports rights made in advance of the event are recognized as prepaid content license assets.

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Networks, we also develop local content that is tailored to individual market preferences and license the rights to air films, television series and sporting events from third-party producers.

To that end, during 2018, we entered into a 12-year partnership with the PGA Tour that includes TV and online rights to the PGA Tour outside the United States.

Effective January 1, 2019, we announced the launch of GOLFTV, a new live and on-demand international video streaming service providing over 2,000 hours of live golf programming each year and extensive premium content on-demand.

Discovery expects to invest more than $2 billion over the course of the partnership, including licensing rights and building the GOLFTV platform.

Our largest single expense is content, which includes content amortization, content impairment and production costs.

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However, certain networks also utilize a straight-line method of amortization over the estimated useful lives of the content.

Content is amortized primarily over periods of two to four years.

Content is amortized primarily over periods of two to five years.

The costs for multi-year sports programming arrangements are expensed when the event is broadcast based on the estimated relative value of each season in the arrangement.

Content assets are reviewed for impairment when impairment indicators are present, such as low viewership or limited expected use.

Impairment losses are recorded when content asset carrying value exceeds net realizable value.

The majority of our content assets are assessed for impairment within film groups.

Content assets are reviewed for impairment when impairment indicators are present at the respective film group level.

Impairment indicators at the film group represent significant adverse changes that impact the film group as a whole.

Impairment losses are recorded when the carrying value of content assets exceeds the estimated fair value of the respective film group.

Providing content across various distribution platforms is a highly competitive business worldwide.

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The ability to secure distribution agreements is dependent upon the production, acquisition and packaging of original content, viewership, the marketing and advertising support and incentives provided to distributors, the product offering across a series of networks within a region, and the prices charged for carriage.

Our networks and digital products compete for the sale of advertising with other television networks, including broadcast, cable, local networks, and other content distribution outlets for their target audiences and the sale of advertising.

Our networks and digital products, which include discovery+ and other DTC subscription products, compete for the sale of advertising with other television networks, including broadcast, cable, local networks, and other content distribution outlets for their target audiences and the sale of advertising.

Our success in selling advertising is a function of the size and demographics of our audiences, quantitative and qualitative characteristics of the audience of each network, the perceived quality of the network and of the particular content, the brand appeal of the network and ratings as determined by third-party research companies, prices charged for advertising and overall advertiser demand in the marketplace.

Our networks and DTC products also compete for their target audiences with all forms of content and other media provided to viewers, including broadcast, cable and local networks, streaming services, pay-per-view and VOD services, DVDs, online activities and other forms of news, information and entertainment.

Our networks and digital products also compete for their target audiences with all forms of content and other media provided to viewers, including broadcast, cable and local networks, streaming services, pay-per-view and VOD services, online activities and other forms of news, information and media entertainment.

Our production studios compete with other production and media companies for talent.

INTELLECTUAL PROPERTY

Our intellectual property assets include copyrights in content, trademarks in brands, names and logos, technology platforms, websites, and licenses of intellectual property rights from third parties.

Our intellectual property assets include copyrights in content, trademarks in brands, names and logos, patents protecting novel inventions, technology platforms, websites, and licenses of intellectual property rights from third parties.

We are fundamentally a content company and the protection of our brands and content is of primary importance.

We have also made and will continue to make investments in developing technology platforms to support our digital products and DTC offerings and consider these platforms to be one of our intellectual property assets.

To protect our intellectual property assets, we rely upon a combination of copyright, trademark, unfair competition, trade secret and Internet/domain name statutes and laws, and contract provisions.

We have also made and will continue to make investments in developing technology platforms to support our digital products and DTC offerings, including discovery+, and consider these platforms to be one of our intellectual property assets.

To protect our intellectual property assets, we rely upon a combination of copyright, trademark, patent, unfair competition, trade secret and Internet/domain name statutes and laws, and contract provisions.

However, there can be no assurance of the degree to which these measures will be successful.

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The rules, regulations, policies and procedures affecting our businesses are constantly subject to change.

These descriptions are summary in nature and do not purport to describe all present and proposed laws and regulations affecting our businesses.

These descriptions are summary in nature and describe only the most significant regulations we face;

they do not purport to describe all present and proposed laws and regulations affecting our businesses.

Program Access

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Program Carriage

The FCC recently made changes to the program carriage rules, which prohibit distributors from favoring their affiliated content networks over unaffiliated similarly situated content networks in the rates, terms and conditions of carriage agreements between content networks and cable operators or other MVPDs.

Some of these changes could make it more difficult for us to challenge a distributor’s decision to decline to carry one of our content networks or a distributor's actions mid-contract that discriminate against one of our content networks.

The FCC's program carriage rules prohibit distributors from favoring their affiliated content networks over unaffiliated similarly situated content networks in the rates, terms and conditions of carriage agreements between content networks and cable operators or other MVPDs.

Recent regulatory changes and court decisions make it more difficult for us to challenge a distributor’s decision to decline to carry one of our content networks or discriminate against one of our content networks.

“Must-Carry”/Retransmission Consent

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The FCC’s implementation of “must-carry” obligations requires cable operators and DBS providers to give broadcasters preferential access to channel space and favorable channel positions.

This reduces the amount of channel space that is available for carriage of our networks by cable and DBS operators.

This reduces the amount of channel space that is available for carriage of our content networks by cable and DBS operators.

The Act also gives broadcasters the choice of opting out of must-carry and invoking the right to retransmission consent, which refers to a broadcaster’s right to require MVPDs, such as cable and satellite operators, to obtain the broadcaster's consent before distributing the broadcaster's signal to the MVPDs' subscribers, often at a substantial cost that reduces the content funds available for independent programmers not affiliated with broadcasters, such as us.

Accessibility, Children's Advertising Restrictions, and CALM Act

Certain of our content networks and some of our IP-delivered video content must provide closed-captioning and audio description of some of their programming.

Our content networks and digital products intended primarily for children 12 years of age and under must comply with certain limits on advertising.

Accessibility, Children's Advertising Restrictions, Emergency Alerts and CALM Act

Certain of our content networks and some of our IP-delivered video content must provide closed-captioning and audio description of some of their programming and comply with other regulations designed to make our content more accessible.

Our content networks and digital products intended primarily for children 12 years of age and under must comply with certain limits on the amount and type of permissible advertising.

We may not include emergency alert tones or signals in our content.

Commercials embedded in our networks’ content stream also must adhere to certain standards for ensuring that those commercials are not transmitted at louder volumes than our program material.

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Regulation of Digital Services

We operate a variety of free, advertising-based and subscription-based digital products and services providing information, entertainment, e-commerce and interactive experiences to consumers in the U.S.

We operate a variety of free, advertising-based and subscription-based digital products and services providing information and entertainment to consumers in the U.S.

and international markets via web, mobile and connected TV platforms.

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Additional federal and state laws and regulations may be adopted with respect to our digital services, covering such issues as data privacy and security, child safety, oversight of user-generated content, advertising, pricing, content, copyrights and trademarks, access by persons with disabilities, distribution, taxation and characteristics and quality of products and services.

In addition, the FCC from time to time considers whether some or all digital services should be considered MVPDs and regulated as such.

Our digital products and services available to consumers in international markets are also subject to the laws and regulations of foreign jurisdictions, including, without limitation, consumer protection, data privacy and security, advertising, intellectual property, and content limitations.

We must design and operate our digital products and websites in compliance with these laws and regulations.

We must design and operate our digital products, services and websites in compliance with these laws and regulations.

Foreign Laws and Regulations

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We are a talent-driven business, aiming to attract, develop, and motivate top talent throughout our company.

To support these objectives, our human resources programs are designed to provide competitive, locally-relevant benefits, performance-based pay, and customized nonfinancial support and incentives.

To support these objectives, our human resources programs are designed to provide competitive, locally-relevant benefits, performance-based pay, and nonfinancial support and incentives.

We also strive to enhance our culture through efforts aimed at making our workplace diverse, engaging and inclusive, and to develop our talent to prepare them for critical roles and leadership positions for the future.

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• local medical, dental, and vision plans in many countries around the world to support our employees with access to health care, supplementing any state-provided health care;

• on-site wellness centers in our New York, Silver Spring, Sterling, Knoxville and London offices, a fully-equipped fitness center in our Knoxville office, and access to virtual fitness classes and wellbeing programs;

• family support programs, including on-site childcare in our Knoxville and Warsaw offices, childcare locator services, back-up childcare, maternity/paternity leave, adoption assistance and elder care;

• on-site wellness centers in our New York, Silver Spring, Knoxville and London offices, a fully-equipped fitness center in our Knoxville office, and access to virtual fitness classes and wellbeing programs;

• family support programs, including on-site childcare in our Knoxville office, childcare locator services, back-up childcare, maternity/paternity leave, adoption assistance and elder care;

• tuition reimbursement and student loan repayment programs for our U.S.

• tools and resources to support the mental wellbeing of our employees and their families, including mental health counselors in our on-site wellness centers and a confidential, dedicated line for employees to contact and speak with a counselor in the event they need mental health support;

• products and services to support employees’ financial wellbeing, including life, accident, and disability insurance plans, discount benefits, financial planning tools, a 401(k) savings plan in the U.S.

and retirement/pension plans in another 20 countries;

and retirement/pension plans in another 20 countries, with competitive contributions from Discovery for employees at all levels;

• offering an employee stock purchase plan, which allows employees globally (where legislation permits) an opportunity to buy Discovery, Inc.

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Our DE&I objective is to foster a culture of equity, inclusion, and mutual respect.

In 2020 we emphasized our DE&I focus through Mosaic – our Diversity, Equity and Inclusion activation.

We emphasize our DE&I focus through Mosaic – our Diversity, Equity and Inclusion activation.

Mosaic covers a range of initiatives, including:

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We have a department dedicated to social good that builds and oversees consumer and employee-facing initiatives and campaigns.

We leverage our platforms, resources, and employee base to make an impact in our communities and with our key nonprofit partners.

We have corporate partnerships aimed at addressing childhood hunger, racial injustice and wildlife preservation.

We leverage our platforms, resources, and employee base to make an impact in our communities and with our key nonprofit partners around the world.

We have corporate partnerships aimed at addressing childhood hunger, inequality, civic engagement and wildlife preservation.

Our employee-facing initiatives include matching gift and “dollars for doers” programs and sponsoring Impact Day, a global day of employee volunteerism that gives back to the communities where we live and work around the world.

We are also committed to using our voice to advocate for action around the issues of our time that are important to our employees.

In furtherance of this objective, we support various causes and organizations that promote equal rights, and have committed to a two-year social justice project where Discovery employees will have the opportunity to help reinvestigate likely wrongful conviction cases and attempt to secure pro bono legal services to seek exoneration.

AVAILABLE INFORMATION

All of our filings with the U.S.

Securities and Exchange Commission (the “SEC”), including reports on Form 10-K, Form 10-Q and Form 8-K, and all amendments to such filings are available free of charge at the investor relations section of our website, https://corporate.discovery.com, as soon as reasonably practicable after such material is filed with, or furnished to, the SEC.

Securities and Exchange Commission (the “SEC”), including reports on Form 10-K, Form 10-Q and Form 8-K, and all amendments to such filings are available free of charge at the investor relations section of our website, www.corporate.discovery.com, as soon as reasonably practicable after such material is filed with, or furnished to, the SEC.

Our annual report, corporate governance guidelines, code of business ethics, audit committee charter, compensation committee charter, and nominating and corporate governance committee charter are also available on our website.

In addition, we will provide a printed copy of any of these documents, free of charge, upon written request to:

Investor Relations, Discovery, Inc., 8403 Colesville Road, Silver Spring, MD 20910.

Additionally, the SEC maintains a website at http://www.sec.gov that contains quarterly, annual and current reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including the Company.

Investor Relations, Discovery, Inc., 230 Park Avenue South, New York, NY 10003.

Additionally, the SEC maintains a website at www.sec.gov that contains quarterly, annual and current reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including the Company.

The information contained on our website is not part of this Annual Report on Form 10-K and is not incorporated by reference herein.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business