Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Paramount Global, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Federal	75)	179)	160)	389)	107)
State and local	64)	138)	73)	167)	81)
Foreign	194)	239)	180)	204)	41)
Current	333)	556)	413)	760)	229)
Federal	(57)	249)	146)	(66)	44)
State and local	(14)	49)	42)	(48)	—)
Foreign	(35)	(208)	(66)	(655)	—)
Deferred	(106)	90)	122)	(769)	44)
Provision (benefit) for income taxes	227)	646)	535)	(9)	273)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Paramount Global current increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Paramount Global deferred decreased from 2020 to 2021 and from 2021 to 2022.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Paramount Global provision (benefit) for income taxes increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Paramount Global, effective income tax rate (EITR) reconciliation

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	17.93%	12.41%	17.00%	-0.27%	11.93%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Paramount Global effective income tax rate decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Paramount Global, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reserves and other accrued liabilities	430)	369)	476)	540)	339)
Pension, postretirement and other employee benefits	534)	679)	772)	761)	492)
Lease liability	425)	465)	466)	531)	—)
Tax credit and loss carryforwards	397)	428)	448)	394)	723)
Interest limitation carryforward	93)	—)	—)	—)	—)
Capitalized costs	49)	—)	—)	—)	—)
Other	11)	23)	56)	85)	80)
Deferred income tax assets	1,939)	1,964)	2,218)	2,311)	1,634)
Valuation allowance	(488)	(581)	(593)	(550)	(719)
Deferred income tax assets, net	1,451)	1,383)	1,625)	1,761)	915)
Intangible assets	(643)	(523)	(460)	(241)	(844)
Unbilled licensing receivables	—)	(76)	(237)	(390)	(401)
Lease asset	(344)	(391)	(400)	(467)	—)
Property, equipment and other assets	(180)	(171)	(198)	(152)	(40)
Financing obligations	(69)	(65)	(71)	(72)	—)
Other	(50)	(14)	(44)	—)	—)
Deferred income tax liabilities	(1,286)	(1,240)	(1,410)	(1,322)	(1,285)
Deferred income tax assets (liabilities), net	165)	143)	215)	439)	(370)

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
Deferred income tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Paramount Global deferred income tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Paramount Global deferred income tax assets, net decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Deferred income tax assets (liabilities), net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Paramount Global deferred income tax assets (liabilities), net decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Paramount Global, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred income tax assets, net	1,242)	1,206)	993)	939)	29)
	Deferred income tax liabilities	1,077)	1,063)	778)	500)	399)

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
Deferred income tax assets, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Paramount Global deferred income tax assets, net increased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Paramount Global deferred income tax liabilities increased 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: Noncurrent deferred tax assets, net	1,242)	1,206)	993)	939)	29)
Total assets (adjusted)	57,151)	57,414)	51,670)	48,580)	21,830)
Adjustment to Total Liabilities
Total liabilities (as reported)	34,787)	35,543)	36,410)	35,976)	19,055)
Less: Noncurrent deferred tax liabilities, net	1,077)	1,063)	778)	500)	399)
Total liabilities (adjusted)	33,710)	34,480)	35,632)	35,476)	18,656)
Adjustment to Total Paramount Stockholders’ Equity
Total Paramount stockholders’ equity (as reported)	23,036)	22,402)	15,371)	13,207)	2,804)
Less: Net deferred tax assets (liabilities)	165)	143)	215)	439)	(370)
Total Paramount stockholders’ equity (adjusted)	22,871)	22,259)	15,156)	12,768)	3,174)
Adjustment to Net Earnings Attributable To Paramount
Net earnings attributable to Paramount (as reported)	1,104)	4,543)	2,422)	3,308)	1,960)
Add: Deferred income tax expense (benefit)	(106)	90)	122)	(769)	44)
Net earnings attributable to Paramount (adjusted)	998)	4,633)	2,544)	2,539)	2,004)

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
Net Profit Margin
Reported net profit margin	3.66%	15.89%	9.58%	11.89%	13.50%
Adjusted net profit margin	3.31%	16.21%	10.06%	9.13%	13.81%
Total Asset Turnover
Reported total asset turnover	0.52	0.49	0.48	0.56	0.66
Adjusted total asset turnover	0.53	0.50	0.49	0.57	0.66
Financial Leverage
Reported financial leverage	2.53	2.62	3.43	3.75	7.80
Adjusted financial leverage	2.50	2.58	3.41	3.80	6.88
Return on Equity (ROE)
Reported ROE	4.79%	20.28%	15.76%	25.05%	69.90%
Adjusted ROE	4.36%	20.81%	16.79%	19.89%	63.14%
Return on Assets (ROA)
Reported ROA	1.89%	7.75%	4.60%	6.68%	8.97%
Adjusted ROA	1.75%	8.07%	4.92%	5.23%	9.18%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Paramount Global adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Paramount Global adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Paramount Global adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Paramount Global adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted 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)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Profitability Ratio
Net profit margin¹	3.66%	15.89%	9.58%	11.89%	13.50%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Paramount	998)	4,633)	2,544)	2,539)	2,004)
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Profitability Ratio
Adjusted net profit margin²	3.31%	16.21%	10.06%	9.13%	13.81%

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 Net profit margin = 100 × Net earnings attributable to Paramount ÷ Revenues
= 100 × 1,104 ÷ 30,154 = 3.66%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Paramount ÷ Revenues
= 100 × 998 ÷ 30,154 = 3.31%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Paramount Global adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Adjusted total assets	57,151)	57,414)	51,670)	48,580)	21,830)
Activity Ratio
Adjusted total asset turnover²	0.53	0.50	0.49	0.57	0.66

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 ÷ 57,151 = 0.53

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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 improved from 2020 to 2021 and from 2021 to 2022.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	57,151)	57,414)	51,670)	48,580)	21,830)
Adjusted total Paramount stockholders’ equity	22,871)	22,259)	15,156)	12,768)	3,174)
Solvency Ratio
Adjusted financial leverage²	2.50	2.58	3.41	3.80	6.88

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
= 57,151 ÷ 22,871 = 2.50

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Paramount Global adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Paramount	998)	4,633)	2,544)	2,539)	2,004)
Adjusted total Paramount stockholders’ equity	22,871)	22,259)	15,156)	12,768)	3,174)
Profitability Ratio
Adjusted ROE²	4.36%	20.81%	16.79%	19.89%	63.14%

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 × Adjusted net earnings attributable to Paramount ÷ Adjusted total Paramount stockholders’ equity
= 100 × 998 ÷ 22,871 = 4.36%

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

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Paramount	998)	4,633)	2,544)	2,539)	2,004)
Adjusted total assets	57,151)	57,414)	51,670)	48,580)	21,830)
Profitability Ratio
Adjusted ROA²	1.75%	8.07%	4.92%	5.23%	9.18%

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 × Adjusted net earnings attributable to Paramount ÷ Adjusted total assets
= 100 × 998 ÷ 57,151 = 1.75%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Paramount Global, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Paramount Global, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)