Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Paramount Global, balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	16,499)	16,584)	16,612)	16,980)	4,920)
Trade names	252)	257)	249)	404)	189)
Licenses	128)	140)	168)	159)	—)
Customer agreements	123)	124)	120)	119)	—)
Other intangible assets	234)	237)	251)	263)	49)
Intangible assets subject to amortization, gross	737)	758)	788)	945)	238)
Accumulated amortization	(490)	(461)	(439)	(452)	(86)
Intangible assets subject to amortization, net	247)	297)	349)	493)	152)
FCC licenses	2,389)	2,416)	2,416)	2,441)	2,441)
International broadcast licenses	24)	25)	27)	25)	45)
Other intangible assets	34)	34)	34)	34)	—)
Intangible assets	2,694)	2,772)	2,826)	2,993)	2,638)
Goodwill and other intangible assets	19,193)	19,356)	19,438)	19,973)	7,558)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Paramount Global goodwill decreased from 2020 to 2021 and from 2021 to 2022.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Paramount Global intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Paramount Global goodwill and other intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

Paramount Global, adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	58,393)	58,620)	52,663)	49,519)	21,859)
Less: Goodwill	16,499)	16,584)	16,612)	16,980)	4,920)
Total assets (adjusted)	41,894)	42,036)	36,051)	32,539)	16,939)
Adjustment to Total Paramount Stockholders’ Equity
Total Paramount stockholders’ equity (as reported)	23,036)	22,402)	15,371)	13,207)	2,804)
Less: Goodwill	16,499)	16,584)	16,612)	16,980)	4,920)
Total Paramount stockholders’ equity (adjusted)	6,537)	5,818)	(1,241)	(3,773)	(2,116)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Paramount Global, Financial Data: Reported vs. Adjusted

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Paramount Global, adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.52	0.49	0.48	0.56	0.66
Adjusted total asset turnover	0.72	0.68	0.70	0.85	0.86
Financial Leverage
Reported financial leverage	2.53	2.62	3.43	3.75	7.80
Adjusted financial leverage	6.41	7.23	—	—	—
Return on Equity (ROE)
Reported ROE	4.79%	20.28%	15.76%	25.05%	69.90%
Adjusted ROE	16.89%	78.09%	—	—	—
Return on Assets (ROA)
Reported ROA	1.89%	7.75%	4.60%	6.68%	8.97%
Adjusted ROA	2.64%	10.81%	6.72%	10.17%	11.57%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Paramount Global adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Paramount Global adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paramount Global, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Total assets	58,393)	58,620)	52,663)	49,519)	21,859)
Activity Ratio
Total asset turnover¹	0.52	0.49	0.48	0.56	0.66
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Adjusted total assets	41,894)	42,036)	36,051)	32,539)	16,939)
Activity Ratio
Adjusted total asset turnover²	0.72	0.68	0.70	0.85	0.86

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 30,154 ÷ 58,393 = 0.52

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 30,154 ÷ 41,894 = 0.72

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Paramount Global adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	58,393)	58,620)	52,663)	49,519)	21,859)
Total Paramount stockholders’ equity	23,036)	22,402)	15,371)	13,207)	2,804)
Solvency Ratio
Financial leverage¹	2.53	2.62	3.43	3.75	7.80
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	41,894)	42,036)	36,051)	32,539)	16,939)
Adjusted total Paramount stockholders’ equity	6,537)	5,818)	(1,241)	(3,773)	(2,116)
Solvency Ratio
Adjusted financial leverage²	6.41	7.23	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Paramount stockholders’ equity
= 58,393 ÷ 23,036 = 2.53

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Paramount stockholders’ equity
= 41,894 ÷ 6,537 = 6.41

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Total Paramount stockholders’ equity	23,036)	22,402)	15,371)	13,207)	2,804)
Profitability Ratio
ROE¹	4.79%	20.28%	15.76%	25.05%	69.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Adjusted total Paramount stockholders’ equity	6,537)	5,818)	(1,241)	(3,773)	(2,116)
Profitability Ratio
Adjusted ROE²	16.89%	78.09%	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net earnings attributable to Paramount ÷ Total Paramount stockholders’ equity
= 100 × 1,104 ÷ 23,036 = 4.79%

² Adjusted ROE = 100 × Net earnings attributable to Paramount ÷ Adjusted total Paramount stockholders’ equity
= 100 × 1,104 ÷ 6,537 = 16.89%

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Total assets	58,393)	58,620)	52,663)	49,519)	21,859)
Profitability Ratio
ROA¹	1.89%	7.75%	4.60%	6.68%	8.97%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Adjusted total assets	41,894)	42,036)	36,051)	32,539)	16,939)
Profitability Ratio
Adjusted ROA²	2.64%	10.81%	6.72%	10.17%	11.57%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net earnings attributable to Paramount ÷ Total assets
= 100 × 1,104 ÷ 58,393 = 1.89%

² Adjusted ROA = 100 × Net earnings attributable to Paramount ÷ Adjusted total assets
= 100 × 1,104 ÷ 41,894 = 2.64%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Paramount Global adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paramount Global (NASDAQ:PARA)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Paramount Global, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Paramount Global, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)