Discovery Communications Reports Third Quarter 2009 Results

November 3, 2009

SILVER SPRING, Md., Nov. 3 /PRNewswire-FirstCall/ -- Discovery Communications, Inc. ("Discovery" or the "Company") (Nasdaq: DISCA, DISCB, DISCK) today reported financial results for the third quarter ended September 30, 2009. The discussion below assumes the transaction between Discovery Holding Company ("DHC"), Discovery Communications Holding, LLC ("DCH"), and Advance/Newhouse Programming Partnership that resulted in Discovery becoming a public company occurred on January 1, 2008 and as such includes 100% of Discovery's results.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080918/NETH035LOGO )

David Zaslav, Discovery's President and Chief Executive Officer, said, "Discovery continued to deliver strong operating results during the third quarter, growing Adjusted OIBDA 17% in a challenging global environment. We remain focused on strengthening our portfolio and programming while increasing our efficiency through targeted reductions in our overall cost structure. Our strategy has generated ratings momentum across our networks enabling us to grow market share and, along with our expanding distribution revenues and leaner cost structure, positions us for continued margin expansion as the economy strengthens."

Revenues of $854 million were up slightly compared with the third quarter a year ago as 5% growth at U.S. Networks was partially offset by a 2% decline at International Networks, primarily the result of a $22 million unfavorable impact from foreign currency fluctuations. Adjusted Operating Income Before Depreciation and Amortization (1) ("OIBDA") increased 17% to $364 million, driven by 18% growth at U.S. Networks and 7% growth at International Networks. Total Company Adjusted OIBDA margin increased to 43% for the third quarter from 37% for the same period a year ago.

Third quarter net income available to Discovery Communications, Inc., stockholders of $95 million ($0.22 per share) decreased $39 million compared to $134 million ($0.44 per share) for the third quarter a year ago. The decreased results primarily reflect the $53 million growth in Adjusted OIBDA and $39 million lower tax expense in the quarter, which were more than offset by a $91 million expense in the current year from the unrealized change in the fair value of the mark-to-market share-based compensation, compared with a benefit of $65 million in the third quarter a year ago.

Free cash flow was $29 million for the third quarter, a decrease of $170 million from the third quarter of 2008, primarily due to $81 million in cash taxes paid related to the sale of 50% of the Discovery Kids channel, as well as the timing of $59 million of additional tax payments related to prior periods. Excluding these taxes, free cash flow of $455 million for the nine months year-to-date increased $116 million compared to the same period in 2008. Free cash flow is defined as cash provided by operating activities less acquisitions of property and equipment.

(1) See the definition of Adjusted Operating Income Before Depreciation and Amortization on page 4.

SEGMENT RESULTS

    (dollars in            Three Months Ended          Nine Months Ended
     millions)               September 30,                September 30,
                          2009   2008   Change        2009    2008  Change
    Revenues:
     U.S. Networks        $522   $498       5%      $1,588  $1,526       4%
     International
      Networks             293    300      (2%)        831     864      (4%)
     Commerce, Education,
      and Other             38     45     (16%)        127     126       1%
     Corporate               1      2     (50%)          6      23     (74%)
    Total Revenues         $854  $845       1%      $2,552  $2,539       1%

    Adjusted OIBDA:
       U.S. Networks        $302  $257     18%       $907    $811       12%
       International
        Networks             110   103      7%        298     280        6%
       Commerce, Education,
        and Other              2     5    (60%)        13       2       NM
        Corporate            (50)  (54)     7%       (144)   (145)       1%
    Total Adjusted OIBDA    $364  $311     17%     $1,074    $948       13%

U.S. Networks

    (dollars in            Three Months Ended          Nine Months Ended
     millions)               September 30,                September 30,
                          2009   2008   Change        2009    2008  Change
    Revenues:
      Distribution        $242   $231        5%       $737    $691       7%
      Advertising          261    249        5%        795     776       2%
      Other                 19     18        6%         56      59      (5%)

    Total Revenues        $522   $498        5%     $1,588  $1,526       4%

    Adjusted OIBDA        $302   $257       18%       $907    $811      12%

    Adjusted OIBDA Margin   58%    52%                  57%     53%

U.S. Networks' revenues in the third quarter of 2009 increased 5% to $522 million primarily driven by distribution and advertising revenue growth. Distribution revenue grew 5% largely from higher rates and subscriber growth primarily from networks carried on the digital tier, offset by the absence of $10 million due to the removal of Discovery Kids from the consolidated results following the sale of 50% of the entity on May 22, 2009. Excluding Discovery Kids from 2008 results, distribution revenue in the current quarter grew 10% compared with the third quarter a year ago. Advertising revenue increased 5% as a result of increased ratings, partially offset by lower cash sellouts due to softness in the economy.

Adjusted OIBDA increased 18% to $302 million in the current quarter, reflecting the 5% revenue growth and a 9% decline in operating expenses from lower marketing, selling and administrative costs, as well as from a decrease in programming costs. The decline in programming primarily reflects a content impairment charge of $17 million at TLC in the third quarter of 2008. Operating expenses would have decreased 4% excluding this content impairment charge and $4 million of increased costs related to OWN incurred in the current quarter.

International Networks

    (dollars in            Three Months Ended          Nine Months Ended
     millions)               September 30,                September 30,
                          2009   2008   Change        2009    2008  Change
    Revenues:
     Distribution         $184   $188       (2%)      $540    $548      (1%)
     Advertising            80     83       (4%)       215     238     (10%)
     Other                  29     29        0%         76      78      (3%)
    Total Revenues        $293   $300       (2%)      $831    $864      (4%)

    Adjusted OIBDA        $110   $103        7%       $298    $280       6%

    Adjusted OIBDA Margin   38%    34%                  36%     32%

International Networks' revenues for the third quarter decreased 2% to $293 million due to a $22 million unfavorable impact from foreign currency fluctuations. Excluding the impact of foreign currency fluctuations, revenues for the current quarter increased 6% driven by 9% advertising revenue growth, primarily at EMEA from higher viewership and an increased subscriber base, as well as 5% affiliate revenue growth led by Latin America and Asia-Pacific from increased subscribers.

Adjusted OIBDA, which included a $2 million unfavorable impact related to foreign exchange rates, increased 7% to $110 million as the 2% revenue decline was more than offset by an 8% decrease in operating expenses. Excluding the impact of foreign currency, Adjusted OIBDA increased 10% reflecting the 6% revenue growth partially offset by 3% higher operating expenses as increased programming expenses were mostly offset by lower marketing and personnel costs.

Commerce, Education, and Other

    (dollars in            Three Months Ended          Nine Months Ended
     millions)               September 30,                September 30,
                          2009   2008   Change        2009    2008  Change
    Revenues               $38    $45      (16%)      $127    $126       1%

    Adjusted OIBDA          $2     $5      (60%)       $13      $2      NM

Commerce, Education and Other third quarter revenues of $38 million declined $7 million from the third quarter of 2008, primarily from lower commerce revenues as a result of the transition to a new licensing model and a decline in sound services, partially offset by increased educational revenues from higher streaming volumes. Adjusted OIBDA decreased $3 million primarily from lower results in sound services, partially offset by cost reductions from the transition of our commerce business to a licensing model.

Corporate

Adjusted OIBDA increased $4 million when compared to the third quarter a year ago due primarily to lower consulting costs.

FULL YEAR 2009 OUTLOOK

For the full year ended December 31, 2009, Discovery Communications, Inc., expects total revenue between $3,450 million and $3,500 million, Adjusted OIBDA between $1,430 million and $1,460 million, and net income available to Discovery Communications, Inc. stockholders of $525 million to $550 million. Our outlook incorporates current foreign exchange rates for revenues and expenses, the removal of Discovery Kids from our consolidated operations, current share price for mark-to-market share-based compensation calculations and the impact of OWN.

NON-GAAP FINANCIAL MEASURES

Adjusted OIBDA and Free Cash Flow

In addition to the results prepared in accordance with generally accepted accounting principles (GAAP) provided in this release, the Company has presented Adjusted OIBDA and free cash flow. The Company evaluates the operating performance of its segments based on financial measures such as revenues and adjusted operating income before depreciation and amortization ("Adjusted OIBDA"). Adjusted OIBDA is defined as revenues less costs of revenues and selling, general and administrative expenses excluding: (i) mark-to-market share-based compensation, (ii) depreciation and amortization, (iii) amortization of deferred launch incentives, (iv) exit and restructuring charges, (v) impairment charges, and (vi) gains (losses) on business and asset dispositions. The Company uses this measure to assess operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance and allocate resources to each segment. The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses and also provides investors a measure to analyze the operating performance of each segment against historical data. The Company excludes mark-to-market share-based compensation, exit and restructuring charges, impairment charges, and gains (losses) on business and asset dispositions from the calculation of Adjusted OIBDA due to their volatility or non-recurring nature. The Company also excludes the amortization of deferred launch incentive payments because these payments are infrequent and the amortization does not represent cash payments in the current reporting period.

The Company defines free cash flow as cash provided by operations less acquisitions of property and equipment. The Company uses free cash flow as it believes it is an important indicator for management and investors of the Company's liquidity, including its ability to reduce debt, make strategic investments and return capital to shareholders.

Because Adjusted OIBDA and free cash flow are non-GAAP measures, they should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance reported in accordance with U.S. GAAP. Please review the supplemental financial schedules beginning on page 9 for reconciliations to GAAP measures.

OTHER ITEMS

In August 2009, the Company issued $500 million of senior notes at 5.625% maturing on August 15, 2019. Net proceeds were primarily used to repay outstanding debt.

The 2008 financial information has been recast so that the basis of presentation is consistent with that of the 2009 financial information. This recast reflects the adoption of Financial Accounting Standards Board Accounting Standards Codification Topic 810, Consolidation.

Conference Call Information

Discovery Communications, Inc. will host a conference call today at 4:30 p.m. EST to discuss its third quarter 2009 results. To listen to the call, visit http://www.discoverycommunications.com.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof, and the Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K filed with the SEC on February 25, 2009. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. Forward-looking statements in this release include, without limitation, the full year 2009 outlook. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

                         DISCOVERY COMMUNICATIONS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (unaudited; dollars in millions, except per share amounts)

                                                 Three Months     Nine Months
                                                    Ended            Ended
                                                September 30,    September 30,
                                                  2009  2008(a)  2009  2008(a)
    Revenues:
      Distribution                                $426   $419  $1,277  $1,239
      Advertising                                  341    332   1,010   1,014
      Other                                         87     94     265     286

    Total revenues                                 854    845   2,552   2,539

    Costs of revenues, excluding depreciation
     and amortization listed below                 257    262     767     758
    Selling, general and administrative            338    224     929     845
    Depreciation and amortization                   40     50     118     146
    Restructuring and impairment charges             4     13      47      17
    Gain on business disposition                     -      -    (252)      -

                                                   639    549   1,609   1,766

    Operating income                               215    296     943     773

    Interest expense, net                          (66)   (61)   (183)   (196)
    Other non-operating income (expense), net        6     (8)     34      (4)


    Income from continuing operations before
     income taxes                                  155    227     794     573
    Provision for income taxes                     (54)   (93)   (391)   (285)


    Income from continuing operations, net
     of taxes                                      101    134     403     288
    Income from discontinued operations, net
     of taxes                                        -     40       -      42


    Net income                                     101    174     403     330
    Less: Net (income) loss attributable to
     non-controlling interests                       -    (40)      2    (119)
    Net income attributable to Discovery
     Communications, Inc.                          101    134     405     211

    Stock dividends to preferred interests          (6)     -      (8)      -
    Net income available to Discovery
     Communications, Inc. stockholders             $95   $134    $397    $211

    Amounts available to Discovery
     Communications, Inc. stockholders:
      Income from continuing operations, net
       of taxes                                    $95    $94    $397    $169
      Income from discontinued operations, net
       of taxes                                      -     40       -      42
      Net income                                   $95   $134    $397    $211

    Income per share from continuing operations
     available to Discovery Communications, Inc.
     stockholders, basic and diluted             $0.22  $0.31   $0.94   $0.59

    Income per share from discontinued operations
     available to Discovery Communications, Inc.
     stockholders, basic and diluted                 -   0.13       -    0.15

    Net income per share available to Discovery
     Communications, Inc. stockholders, basic and
     diluted                                     $0.22  $0.44   $0.94   $0.74

    Weighted average number of shares outstanding:
      Basic                                        424    302     423     287
      Diluted                                      427    302     424     287

    (a)   The 2008 financial information has been recast so that the basis of
          presentation is consistent with that of the 2009 financial
          information.  See Other Items on page 4 for additional detail.

                      DISCOVERY COMMUNICATIONS, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                       (unaudited; dollars in millions)

                                               September 30,      December 31,
                                                       2009            2008(a)

    ASSETS
    Current assets:
      Cash and cash equivalents                        $401              $100
      Receivables, net of allowances of
       $16 and $16, respectively                        775               780
      Content rights, net                                76                73
      Prepaid expenses and other current assets         165               156

    Total current assets                              1,417             1,109

    Noncurrent content rights, net                    1,225             1,163
    Property and equipment, net                         417               395
    Goodwill                                          6,438             6,891
    Intangible assets, net                              654               716
    Other noncurrent assets                             590               210

    Total assets                                    $10,741           $10,484


    LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS
     IN SUBSIDIARIES, AND EQUITY
    Current liabilities:
      Accounts payable and accrued liabilities         $394              $421
      Current portion of long-term debt                  39               458
      Other current liabilities                         329               191

    Total current liabilities                           762             1,070

    Long-term debt                                    3,472             3,331
    Other noncurrent liabilities                        416               473

    Total liabilities                                 4,650             4,874

    Commitments and contingencies
    Redeemable non-controlling interests
     in subsidiaries                                     49                49

    Equity:
      Preferred stock                                     2                 2
      Common stock                                        3                 3
      Additional paid-in capital                      6,589             6,545
      Accumulated deficit                              (531)             (936)
      Accumulated other comprehensive loss              (35)              (78)

    Equity attributable to Discovery
     Communications, Inc.                             6,028             5,536
    Equity attributable to non-controlling interests     14                25

    Total equity                                      6,042             5,561

    Total liabilities, redeemable non-controlling
     interests in subsidiaries, and equity          $10,741           $10,484

    (a)  The 2008 financial information has been recast so that the basis of
         presentation is consistent with that of the 2009 financial
         information.  See Other Items on page 4 for additional detail.

                         DISCOVERY COMMUNICATIONS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (unaudited; dollars in millions)

                                              Nine Months Ended September 30,
                                                         2009   2008(a)
    OPERATING ACTIVITIES
     Net income                                          $403   $330
     Adjustments to reconcile net income to cash
      provided by operating activities:
       Share-based compensation expense (benefit)         196    (47)
       Depreciation and amortization                      118    195
       Asset impairments                                   26      -
       Gains on business dispositions                    (252)   (67)
       Gains on asset dispositions                          -     (9)
       Gain on sale of securities                         (13)     -
       Deferred income taxes                              (33)   122
       Other noncash expenses, net                         26     62
     Changes in operating assets and liabilities, net
      of discontinued operations:
       Receivables, net                                     -    (29)
       Accounts payable and accrued liabilities           (21)   (18)
       Other, net                                         (92)  (116)

    Cash provided by operating activities                 358    423

     INVESTING ACTIVITIES
     Purchases of property and equipment                  (43)   (84)
     Net cash acquired from Newhouse Transaction            -     45
     Business acquisitions, net of cash acquired            -     (8)
     Proceeds from asset dispositions                       -     13
     Proceeds from business dispositions                  300    126
     Proceeds from sales of securities                     22     24

     Cash provided by investing activities                279    116

     FINANCING ACTIVITIES
     Ascent Media Corporation spin-off                      -   (356)
     Net repayments of revolver loans                    (315)   (89)
     Borrowings from long-term debt, net of discount
      and issuance costs                                  970      -
     Principal repayments of long-term debt            (1,007)  (191)
     Principal repayments of capital lease obligations     (7)   (12)
     Cash distribution to non-controlling interest         (9)     -
     Proceeds from stock option exercises                  26      -
     Other financing activities, net                       (1)   (10)

     Cash used in financing activities                   (343)  (658)

     Effect of exchange rate changes on cash and cash
      equivalents                                           7      2

     CHANGE IN CASH AND CASH EQUIVALENTS                  301   (117)
     Cash and cash equivalents of continuing
      operations, beginning of period                     100      8
     Cash and cash equivalents of discontinued
      operations, beginning of period                       -    201

    CASH AND CASH EQUIVALENTS, END OF PERIOD             $401    $92


    (a)   The 2008 financial information has been recast so that the basis of
          presentation is consistent with that of the 2009 financial
          information.  See Other Items on page 4 for additional detail.

                        DISCOVERY COMMUNICATIONS, INC.
                          SUPPLEMENTAL FINANCIAL DATA
               RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE
                        DEPRECIATION AND AMORTIZATION
                      (unaudited; dollars in millions)

                      Three Months Ended September 30, 2009

         Adjusted Operating          Amortization
           Income Before                  of
             Depreciation Depreciation Deferred Mark-to-Market
                and          and        Launch    Share-Based        Operating
            Amortization Amortization Incentives Compensation Other(a)  Income

    U.S. Networks  $302     $(7)        $(5)          $-      $(1)      $289
    International
     Networks       110     (11)         (9)           -       (3)        87
    Commerce,
     Education,
     and Other        2      (2)          -            -        -          -
    Corporate       (50)    (20)          -          (91)       -       (161)
           Total   $364    $(40)       $(14)        $(91)     $(4)      $215



                      Three Months Ended September 30, 2008

         Adjusted Operating          Amortization
           Income Before                  of
             Depreciation Depreciation Deferred Mark-to-Market
                and          and        Launch    Share-Based        Operating
            Amortization Amortization Incentives Compensation Other(a)  Income

    U.S. Networks  $257    $(12)        $(6)         $(1)    $(13)      $225
    International
     Networks       103     (12)        (11)           -        -         80
    Commerce,
     Education,
     and Other        5      (2)          -            -        -          3
    Corporate       (54)    (24)          -           66        -        (12)
           Total   $311    $(50)       $(17)         $65     $(13)      $296


    (a) Total amount represents exit and restructuring charges.

                         DISCOVERY COMMUNICATIONS, INC.
                         SUPPLEMENTAL FINANCIAL DATA
                RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE
                        DEPRECIATION AND AMORTIZATION
                      (unaudited; dollars in millions)

                       Nine Months Ended September 30, 2009

         Adjusted Operating          Amortization
           Income Before                  of
             Depreciation Depreciation Deferred Mark-to-Market
                and          and        Launch    Share-Based        Operating
            Amortization Amortization Incentives Compensation Other(a)  Income

    U.S. Networks  $907    $(23)       $(16)         $(1)    $224     $1,091
    International
    Networks        298     (32)        (25)           -      (13)       228
    Commerce,
    Education,
    and Other        13      (4)          -            -       (1)         8
    Corporate      (144)    (59)          -         (176)      (5)      (384)
           Total $1,074   $(118)       $(41)       $(177)    $205       $943



                       Nine Months Ended September 30, 2008

         Adjusted Operating          Amortization
           Income Before                  of
             Depreciation Depreciation Deferred Mark-to-Market
                and          and        Launch    Share-Based        Operating
            Amortization Amortization Incentives Compensation Other(a)  Income

    U.S. Networks  $811    $(40)       $(26)         $(7)    $(13)      $725
    International
     Networks       280     (32)        (33)           -        -        215
    Commerce,
     Education,
     and Other        2      (7)          -            -       (4)        (9)
    Corporate      (145)    (67)          -           54        -       (158)
           Total   $948   $(146)       $(59)         $47     $(17)      $773

    (a) Total amount in 2009 represents the pre-tax gain on the sale of
        Discovery Kids of $252 million, asset impairments of $26 million and
        exit and restructuring charges of $21 million.  Total amount in 2008
        represents exit and restructuring charges.

                        DISCOVERY COMMUNICATIONS, INC.
                        SUPPLEMENTAL FINANCIAL DATA
                       (unaudited; dollars in millions)


    CALCULATION OF FREE CASH FLOW

                                Three Months         Nine Months
                             Ended September 30,  Ended September 30,
                              2009  2008  Change  2009   2008  Change
    Cash provided by operating
     activities                $38  $241   $(203) $358  $423  $(65)
    Acquisition of property
     and equipment              (9)  (42)     33   (43)  (84)   41
    Free cash flow             $29  $199   $(170) $315  $339  $(24)

    RECONCILIATION OF 2009 OUTLOOK TO GAAP MEASURES

                                                         Full Year 2009
    Net income available to Discovery Communications,
     Inc. stockholders                                  $525    To     $550
    Interest expense, net                                260    To      240
    Depreciation and amortization                        155    To      150
    Other expense, including amortization of deferred
     launch incentives, mark-to-market share-based
     compensation, asset impairment, exit and
     restructuring costs, gain (loss) on business
     disposition, gain (loss) on sale of securities,
     equity earnings in unconsolidated affiliates,
     unrealized and realized gains and losses from
     derivatives, income tax expense, net loss
     (income) attributable to non-controlling
     interests, and stock dividends to preferred
     interests                                           490    To      520

    Adjusted OIBDA                                    $1,430    To   $1,460

                           DISCOVERY COMMUNICATIONS, INC.
                             SUPPLEMENTAL FINANCIAL DATA
                             SELECTED FINANCIAL DETAIL
                (unaudited; dollars in millions, except per share amounts)



    BORROWINGS
                                                                   As of
                                                           September 30, 2009

    $1.6 billion Revolving Credit Facility, due October 2010                $-
    $1.5 billion Term Loan B, due quarterly September 2007 to May 2014   1,466
    $500 million Term Loan C, due quarterly June 2009 to May 2014          498
    8.37% Senior Notes, semi-annual interest, due March 2011               220
    8.13% Senior Notes, semi-annual interest, due September 2012           235
    Floating Rate Senior Notes, semi-annual interest, due December
     2012 (1.99 % at September 30, 2009)                                    90
    6.01% Senior Notes, semi-annual interest, due December 2015            390
    5.625% Senior Notes, semi-annual interest, due August 2019             500
    Other notes payable                                                      1
    Capital lease obligations                                              125
    Total long-term debt                                                 3,525
    Unamortized discount                                                  (14)
    Long-term debt, net                                                  3,511
    Less: Current portion                                                   39
    Noncurrent portion                                                  $3,472

    SHARE-BASED COMPENSATION
                                  As of September 30, 2009

                              Total Units    Weighted  Vested Units   Weighted
                              Outstanding    Average   Outstanding     Average
    Long-Term                     (in        Exercise     (in         Exercise
    Incentive Plans             millions)      Price    millions)       Price


    Discovery Appreciation Plan   16.9        $18.76        0.1       $21.64
    Stock Appreciation Rights      3.5         14.46        0.7        14.44
    Stock option                  16.3         15.15        1.0        13.94
      Total share-based
       compensation plans         36.7        $16.75        1.8       $14.56

    NET OF TAX GAIN RECONCILIATION FOR DISCOVERY KIDS TRANSACTION

     Pre-tax gain on sale of 50% of Discovery Kids                   $252
     Tax recorded on book gain                                        (93)
     Tax recorded on goodwill allocated to the 50% of Discovery Kids
      sold                                                            (81)
     Tax recorded on step-up of book value for the retained 50% of
      Discovery Kids                                                  (32)

     Net of tax gain                                                  $46

SOURCE Discovery Communications, Inc.