Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Paramount Global, consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Operating costs and expenses	(19,845)	(17,744)	(14,992)	(17,223)	(9,111)
Gross profit	10,309)	10,842)	10,293)	10,589)	5,403)
Selling, general and administrative	(7,033)	(6,398)	(5,320)	(5,647)	(2,217)
Depreciation and amortization	(405)	(390)	(430)	(443)	(223)
Restructuring and other corporate matters	(585)	(100)	(618)	(775)	(195)
Net gain on dispositions	56)	2,343)	214)	549)	—)
Operating income	2,342)	6,297)	4,139)	4,273)	2,768)
Interest expense	(931)	(986)	(1,031)	(962)	(467)
Interest income	108)	53)	60)	66)	57)
Net gains (losses) from investments	(9)	47)	206)	113)	—)
Loss on extinguishment of debt	(120)	(128)	(126)	—)	—)
Pension and postretirement benefit costs	(65)	(43)	(69)	(105)	(63)
Foreign exchange losses	(58)	(26)	(35)	(17)	(3)
Pension settlement charge	—)	(10)	—)	—)	—)
Other	(1)	2)	3)	(23)	(3)
Other items, net	(124)	(77)	(101)	(145)	(69)
Earnings from continuing operations before income taxes and equity in loss of investee companies	1,266)	5,206)	3,147)	3,345)	2,289)
(Provision) benefit for income taxes	(227)	(646)	(535)	9)	(273)
Equity in loss of investee companies, net of tax	(204)	(91)	(28)	(53)	(56)
Net earnings from continuing operations	835)	4,469)	2,584)	3,301)	1,960)
Net earnings from discontinued operations, net of tax	379)	162)	117)	38)	—)
Net earnings, Paramount and noncontrolling interests	1,214)	4,631)	2,701)	3,339)	1,960)
Net earnings attributable to noncontrolling interests	(110)	(88)	(279)	(31)	—)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Preferred stock dividends	(58)	(44)	—)	—)	—)
Net earnings attributable to Paramount common stock	1,046)	4,499)	2,422)	3,308)	1,960)

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).

The financial data indicates several notable trends and patterns over the period analyzed.

Revenues and Profitability: Revenues demonstrated a significant increase from 14,514 million USD in 2018 to 27,812 million USD in 2019, followed by a slight decline in 2020 to 25,285 million USD. Subsequently, revenues increased again in 2021 and 2022, reaching 30,154 million USD. Gross profit followed a similar pattern, peaking in 2019 at 10,589 million USD and experiencing minor fluctuations thereafter, ending at 10,309 million USD in 2022.
Operating Costs and Expenses: Operating costs and expenses increased drastically from 9,111 million USD in 2018 to 17,223 million USD in 2019, then declined in 2020 before rising again in 2021 and 2022. Selling, general, and administrative expenses consistently increased throughout the period, reaching 7,033 million USD in 2022. Depreciation and amortization expenses showed a moderate decrease from 443 million USD in 2019 to 390 million USD in 2021, slightly rising in 2022 to 405 million USD.
Operating Income: Operating income initially rose from 2,768 million USD in 2018 to 4,273 million USD in 2019, then slightly declined in 2020. A notable peak was observed in 2021 at 6,297 million USD, followed by a sharp decline in 2022 to 2,342 million USD, suggesting volatility in operating performance.
Other Income and Expenses: Net gain on dispositions reported significant gains in 2021 at 2,343 million USD, a considerable increase compared to previous years. Net gains from investments fluctuated with gains in certain years but ended with a slight loss of 9 million USD in 2022. Loss on extinguishment of debt occurred after 2019, consistently contributing moderate losses. Foreign exchange losses and pension-related costs displayed irregular fluctuations without significant trend.
Interest and Taxation: Interest expense steadily increased through 2020, peaking at 1,031 million USD, then slightly decreased in subsequent years. Interest income remained relatively stable with a slight increase in 2022. Income tax provisions showed volatility, with a benefit reported in 2019, large provisions in 2020 and 2021, and a reduction in 2022.
Net Earnings: Net earnings attributable to Paramount common stock increased significantly from 1,960 million USD in 2018 to a peak of 4,499 million USD in 2021. However, a sharp decline occurred in 2022, reducing net earnings to 1,046 million USD. Earnings from discontinued operations increased steadily, which contributed positively to overall net earnings. Noncontrolling interests' impact was negative starting 2019 and remained so thereafter.

Overall, the data reflects growth in revenue and profitability up to 2021, followed by a notable decline in operating income and net earnings in 2022. Operating expenses and administrative costs increased consistently throughout the period, potentially impacting margins. One-time gains in 2021 substantially boosted operating income that year. The variation in tax provision and consistency of interest expenses indicate underlying financial management dynamics. The decline in earnings in 2022 suggests challenges that warrant further investigation into operational efficiency and market conditions.

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Paramount Global (NASDAQ:PARA)

Income Statement