Document

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
Or
c
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                       to                      
 
comcastmcolorblk165a05.jpg
 
Commission File Number
Exact Name of Registrant; State of
Incorporation; Address and Telephone
Number of Principal Executive Offices
I.R.S. Employer Identification No.
001-32871
COMCAST CORPORATION
27-0000798
 
PENNSYLVANIA
One Comcast Center
Philadelphia, PA 19103-2838
(215) 286-1700
 
 
 
 
001-36438
NBCUNIVERSAL MEDIA, LLC
14-1682529
 
DELAWARE
30 Rockefeller Plaza
New York, NY 10112-0015
(212) 664-4444
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Comcast Corporation
 
Yes
x
 
No
c
 
 
NBCUniversal Media, LLC
 
Yes
x
 
No
c
 
 
 
 
 
 
 
 
 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 
Comcast Corporation
 
Yes
x
 
No
c
 
 
NBCUniversal Media, LLC
 
Yes
x
 
No
c
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Comcast Corporation
Large accelerated filer
x
Accelerated filer
c
Non-accelerated filer
c
Smaller reporting company
c
Emerging growth company
c
NBCUniversal Media, LLC
Large accelerated filer
c
Accelerated filer
c
Non-accelerated filer
x
Smaller reporting company
c
Emerging growth company
c
If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Comcast Corporation
c
NBCUniversal Media, LLC
c
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
 
Comcast Corporation
 
Yes
c
 
No
x
 
 
NBCUniversal Media, LLC
 
Yes
c
 
No
x
 
Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practicable date:
As of March 31, 2019, there were 4,529,070,833 shares of Comcast Corporation Class A common stock and 9,444,375 shares of Class B common stock outstanding.
Not applicable for NBCUniversal Media, LLC.
NBCUniversal Media, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.
 


TABLE OF CONTENTS
  
  
Page
Number
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 5.
Item 6.
 
Explanatory Note
This Quarterly Report on Form 10-Q is a combined report being filed separately by Comcast Corporation (“Comcast”) and NBCUniversal Media, LLC (“NBCUniversal”). Comcast owns all of the common equity interests in NBCUniversal, and NBCUniversal meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing its information within this Form 10-Q with the reduced disclosure format. Each of Comcast and NBCUniversal is filing on its own behalf the information contained in this report that relates to itself, and neither company makes any representation as to information relating to the other company. Where information or an explanation is provided that is substantially the same for each company, such information or explanation has been combined in this report. Where information or an explanation is not substantially the same for each company, separate information and explanation has been provided. In addition, separate condensed consolidated financial statements for each company, along with notes to the condensed consolidated financial statements, are included in this report.
Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, including NBCUniversal and its consolidated subsidiaries, as “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” NBCUniversal, LLC as “NBCUniversal Holdings;” NBCUniversal Enterprise, Inc. as "NBCUniversal Enterprise;" and Sky Limited and its consolidated subsidiaries as “Sky.”
This Quarterly Report on Form 10-Q is for the three months ended March 31, 2019. This Quarterly Report on Form 10-Q modifies and supersedes documents filed before it. The Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report on Form 10-Q. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report on Form 10-Q.
You should carefully review the information contained in this Quarterly Report on Form 10-Q and particularly consider any risk factors set forth in this Quarterly Report on Form 10-Q and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report on Form 10-Q, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called “forward-looking statements” by words such as “may,” “will,” “should,” “expects,”


“believes,” “estimates,” “potential,” or “continue,” or the negative of these words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results could differ materially from our forward-looking statements as a result of any such factors, which could adversely affect our businesses, results of operations or financial condition. We undertake no obligation to update any forward-looking statements.
Our businesses may be affected by, among other things, the following:
•
our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively
•
changes in consumer behavior driven by online video distribution platforms for viewing content could adversely affect our businesses and challenge existing business models
•
a decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses
•
our businesses depend on keeping pace with technological developments
•
we are subject to regulation by federal, state, local and foreign authorities, which impose additional costs and restrictions on our businesses
•
programming expenses for our video services are increasing, which could adversely affect Cable Communications’ and Sky’s video businesses
•
NBCUniversal’s and Sky’s success depends on consumer acceptance of their content, and their businesses may be adversely affected if their content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase
•
the loss of NBCUniversal’s programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect our businesses
•
less favorable regulation, the loss of Sky’s transmission agreements with satellite or telecommunications providers or the renewal of these agreements on less favorable terms, could adversely affect Sky’s businesses
•
the loss of Sky’s wholesale distribution agreements with traditional multichannel video providers could adversely affect Sky’s businesses
•
we rely on network and information systems and other technologies, as well as key properties, and a disruption, cyber attack, failure or destruction of such networks, systems, technologies or properties may disrupt our businesses
•
our businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others
•
we may be unable to obtain necessary hardware, software and operational support
•
weak economic conditions may have a negative impact on our businesses
•
acquisitions, including our acquisition of Sky, and other strategic initiatives present many risks, and we may not realize the financial and strategic goals that we had contemplated
•
unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures
•
labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect our businesses
•
the loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses
•
we face risks relating to doing business internationally that could adversely affect our businesses
•
our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company through his beneficial ownership of our Class B common stock


Table of Contents

PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Comcast Corporation
Condensed Consolidated Statement of Income
(Unaudited)
 
Three Months Ended
March 31
(in millions, except per share data)
2019
 
2018
Revenue
$
26,859

 
$
22,791

Costs and Expenses:
 
 
 
Programming and production
8,569

 
7,429

Other operating and administrative
7,900

 
6,514

Advertising, marketing and promotion
1,888

 
1,604

Depreciation
2,240

 
2,011

Amortization
1,080

 
588

Total costs and expenses
21,677

 
18,146

Operating income
5,182

 
4,645

Interest expense
(1,150
)
 
(777
)
Investment and other income (loss), net
676

 
126

Income before income taxes
4,708

 
3,994

Income tax expense
(1,076
)
 
(818
)
Net income
3,632

 
3,176

Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
79

 
58

Net income attributable to Comcast Corporation
$
3,553

 
$
3,118

Basic earnings per common share attributable to Comcast Corporation shareholders
$
0.78

 
$
0.67

Diluted earnings per common share attributable to Comcast Corporation shareholders
$
0.77

 
$
0.66

See accompanying notes to condensed consolidated financial statements.

1
Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income
(Unaudited) 
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Net income
$
3,632

 
$
3,176

Unrealized gains (losses) on marketable securities, net of deferred taxes of $— and $—
1

 
(1
)
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $9 and $(9)
(59
)
 
29

Amounts reclassified to net income:
 
 
 
Realized (gains) losses on cash flow hedges, net of deferred taxes of $(11) and $6
58

 
(20
)
Employee benefit obligations, net of deferred taxes of $3 and $2
(7
)
 
(8
)
Currency translation adjustments, net of deferred taxes of $(12) and $(47)
807

 
157

Comprehensive income
4,432

 
3,333

Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock
79

 
58

Less: Other comprehensive income (loss) attributable to noncontrolling interests
10

 
4

Comprehensive income attributable to Comcast Corporation
$
4,343

 
$
3,271

See accompanying notes to condensed consolidated financial statements.

2
Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Cash Flows
(Unaudited) 
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Operating Activities
 
 
 
Net income
$
3,632

 
$
3,176

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
3,320

 
2,599

Share-based compensation
245

 
199

Noncash interest expense (income), net
77

 
75

Net (gain) loss on investment activity and other
(498
)
 
(74
)
Deferred income taxes
271

 
389

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
 
Current and noncurrent receivables, net
449

 
85

Film and television costs, net
559

 
(45
)
Accounts payable and accrued expenses related to trade creditors
(574
)
 
200

Other operating assets and liabilities
(250
)
 
(1,130
)
Net cash provided by operating activities
7,231

 
5,474

Investing Activities
 
 
 
Capital expenditures
(2,092
)
 
(1,973
)
Cash paid for intangible assets
(547
)
 
(419
)
Acquisitions and construction of real estate properties
(16
)
 
(59
)
Construction of Universal Beijing Resort
(220
)
 
(42
)
Acquisitions, net of cash acquired
(48
)
 
(89
)
Proceeds from sales of investments
37

 
81

Purchases of investments
(439
)
 
(220
)
Other
99

 
429

Net cash provided by (used in) investing activities
(3,226
)
 
(2,292
)
Financing Activities
 
 
 
Proceeds from (repayments of) short-term borrowings, net
(1,288
)
 
(902
)
Proceeds from borrowings
222

 
4,043

Repurchases and repayments of debt
(2,084
)
 
(1,265
)
Repurchases of common stock under repurchase program and employee plans
(247
)
 
(1,729
)
Dividends paid
(869
)
 
(738
)
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock
(85
)
 
(79
)
Other
26

 
94

Net cash provided by (used in) financing activities
(4,325
)
 
(576
)
Impact of foreign currency on cash, cash equivalents and restricted cash
8

 
—

Increase (decrease) in cash, cash equivalents and restricted cash
(312
)
 
2,606

Cash, cash equivalents and restricted cash, beginning of period
3,909

 
3,571

Cash, cash equivalents and restricted cash, end of period
$
3,597

 
$
6,177

See accompanying notes to condensed consolidated financial statements.

3
Table of Contents

Comcast Corporation

Condensed Consolidated Balance Sheet
(Unaudited)
(in millions, except share data)
March 31,
2019
 
December 31,
2018
Assets
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$
3,498

 
$
3,814

Receivables, net
10,736

 
11,104

Programming rights
2,942

 
3,746

Other current assets
3,097

 
3,184

Total current assets
20,273

 
21,848

Film and television costs
8,051

 
7,837

Investments
9,159

 
7,883

Property and equipment, net of accumulated depreciation of $51,932 and $51,306
45,721

 
44,437

Franchise rights
59,365

 
59,365

Goodwill
68,073

 
66,154

Other intangible assets, net of accumulated amortization of $15,042 and $14,194
36,902

 
38,358

Other noncurrent assets, net
8,645

 
5,802

Total assets
$
256,189

 
$
251,684

Liabilities and Equity
 
 
 
Current Liabilities:
 
 
 
Accounts payable and accrued expenses related to trade creditors
$
10,232

 
$
8,494

Accrued participations and residuals
1,739

 
1,808

Deferred revenue
2,485

 
2,182

Accrued expenses and other current liabilities
8,832

 
10,721

Current portion of long-term debt
4,629

 
4,398

Total current liabilities
27,917

 
27,603

Long-term debt, less current portion
104,464

 
107,345

Deferred income taxes
27,819

 
27,589

Other noncurrent liabilities
18,811

 
15,329

Commitments and contingencies (Note 11)


 


Redeemable noncontrolling interests and redeemable subsidiary preferred stock
1,316

 
1,316

Equity:
 
 
 
Preferred stock—authorized, 20,000,000 shares; issued, zero
—

 
—

Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,401,861,861 and 5,389,309,175; outstanding, 4,529,070,833 and 4,516,518,147
54

 
54

Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375
—

 
—

Additional paid-in capital
37,621

 
37,461

Retained earnings
44,379

 
41,983

Treasury stock, 872,791,028 Class A common shares
(7,517
)
 
(7,517
)
Accumulated other comprehensive income (loss)
422

 
(368
)
Total Comcast Corporation shareholders’ equity
74,959

 
71,613

Noncontrolling interests
903

 
889

Total equity
75,862

 
72,502

Total liabilities and equity
$
256,189

 
$
251,684

See accompanying notes to condensed consolidated financial statements.

4
Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Changes in Equity
(Unaudited) 
 
Redeemable
Noncontrolling
Interests and
Redeemable
Subsidiary
Preferred Stock
 
Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock at
Cost
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interests
Total
Equity
(in millions, except per share data)
A
B
Balance, December 31, 2017
$
1,357

$
55

$
—

$
37,497

$
38,202

$
(7,517
)
$
379

$
843

$
69,459

Cumulative effects of adoption of accounting standards
 
 
 
 
(43
)
 
76

 
33

Stock compensation plans
 
 
 
127

 
 
 
 
127

Repurchases of common stock under repurchase program and employee plans
 
 
 
(294
)
(1,432
)
 
 
 
(1,726
)
Employee stock purchase plans
 
 
 
48

 
 
 
 
48

Dividends declared ($0.19 per common share)
 
 
 
 
(884
)
 
 
 
(884
)
Other comprehensive income (loss)
 
 
 
 
 
 
153

4

157

Contributions from (distributions to) noncontrolling interests, net
(17
)
 
 
 
 
 
 
350

350

Other
(10
)
 
 
(3
)
 
 
 
(3
)
(6
)
Net income (loss)
24

 
 
 
3,118

 
 
34

3,152

Balance, March 31, 2018
$
1,354

$
55

$
—

$
37,375

$
38,961

$
(7,517
)
$
608

$
1,228

$
70,710

Balance, December 31, 2018
$
1,316

$
54

$
—

$
37,461

$
41,983

$
(7,517
)
$
(368
)
$
889

$
72,502

Stock compensation plans
 
 
 
174

 
 
 
 
174

Repurchases of common stock under repurchase program and employee plans
 
 
 
(62
)
(193
)
 
 
 
(255
)
Employee stock purchase plans
 
 
 
48

 
 
 
 
48

Dividends declared ($0.21 per common share)
 
 
 
 
(964
)
 
 
 
(964
)
Other comprehensive income (loss)
 
 
 
 
 
 
790

10

800

Contributions from (distributions to) noncontrolling interests, net
(20
)
 
 
 
 
 
 
(46
)
(46
)
Other
(8
)
 
 
 
 
 
 
(1
)
(1
)
Net income (loss)
28

 
 
 
3,553

 
 
51

3,604

Balance, March 31, 2019
$
1,316

$
54

$
—

$
37,621

$
44,379

$
(7,517
)
$
422

$
903

$
75,862

See accompanying notes to condensed consolidated financial statements.

5
Table of Contents

Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1: Condensed Consolidated Financial Statements
Business and Basis of Presentation
We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, cash flows and financial condition for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.
The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2018 Annual Report on Form 10-K and the notes within this Form 10-Q.
In the fourth quarter of 2018, we acquired a 100% interest in Sky through a series of transactions, for total cash consideration of £30.2 billion (approximately $39.4 billion using the exchange rates on the purchase dates). See Note 6 for additional information on the transaction.
Reclassifications
Reclassifications have been made to our condensed consolidated financial statements for the prior year period to conform to classifications used in 2019. See Note 7 for a discussion of the effects of the adoption of new accounting pronouncements on our condensed consolidated financial statements.
Note 2: Segment Information
We present our operations in six reportable business segments: (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment.
Our Cable Communications segment consists of the operations of Comcast Cable, which is one of the nation’s largest providers of high-speed internet, video, voice, wireless, and security and automation services (“cable services”) to residential customers under the Xfinity brand; we also provide these and other services to business customers and sell advertising.
Our Cable Networks segment consists primarily of our national cable networks that provide a variety of entertainment, news and information, and sports content, our regional sports and news networks, our international cable networks, our cable television studio production operations, and various digital properties.
Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, our broadcast television studio production operations, and various digital properties.
Our Filmed Entertainment segment consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, DreamWorks Animation and Focus Features names.
Our Theme Parks segment consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, along with a consortium of Chinese state-owned companies, we are developing a Universal theme park and resort in Beijing, China.
Our Sky segment consists of the operations of Sky, one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks.
Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania.
We use Adjusted EBITDA to evaluate the profitability of our operating segments and the components of net income attributable to Comcast Corporation excluded from Adjusted EBITDA are not separately evaluated. Beginning in the first quarter of 2019, Comcast Cable’s wireless phone service and certain other Cable-related business development initiatives are now presented in the Cable Communications segment. Results were previously presented in Corporate and Other. Prior periods have been adjusted to reflect this presentation. To be consistent with our current management reporting presentation, certain 2018 operating results were

6
Table of Contents

Comcast Corporation

reclassified related to certain NBCUniversal businesses now presented in the Sky segment. Our financial data by business segment is presented in the tables below.
 
Three Months Ended March 31, 2019
(in millions)
Revenue
Adjusted EBITDA(d)
Depreciation and Amortization
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications
$
14,280

$
5,728

$
2,035

$
1,363

$
323

NBCUniversal
 
 
 
 

Cable Networks
2,868

1,262

182

6

2

Broadcast Television
2,467

387

39

13

3

Filmed Entertainment
1,768

364

19

4

5

Theme Parks
1,276

498

162

394

19

Headquarters and Other(a)
17

(174
)
113

36

42

Eliminations(b)
(83
)
—

—

—

—

NBCUniversal
8,313

2,337

515

453

71

Sky
4,797

663

741

259

151

Corporate and Other(c)
108

(187
)
29

17

2

Eliminations(b)
(639
)
12

—

—

—

Comcast Consolidated
$
26,859

$
8,553

$
3,320

$
2,092

$
547

 
Three Months Ended March 31, 2018
(in millions)
Revenue
Adjusted EBITDA(d)
Depreciation and Amortization
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications
$
13,703

$
5,217

$
2,061

$
1,691

$
287

NBCUniversal
 
 
 
 

Cable Networks(e)
3,157

1,254

189

3

4

Broadcast Television(e)
3,497

507

34

30

72

Filmed Entertainment
1,647

203

28

7

6

Theme Parks
1,281

495

155

182

16

Headquarters and Other(a)
14

(188
)
104

47

32

Eliminations(b)(e)
(99
)
—

—

—

—

NBCUniversal
9,497

2,271

510

269

130

Corporate and Other(c)
243

(185
)
28

13

2

Eliminations(b)(e)
(652
)
(59
)
—

—

—

Comcast Consolidated
$
22,791

$
7,244

$
2,599

$
1,973

$
419

(a)
NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.
(b)
Included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the following:
•
our Cable Networks segment generates revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount
•
our Broadcast Television segment generates revenue from the fees received under retransmission consent agreements with our Cable Communications segment
•
our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment
•
our Cable Networks and Broadcast Television segments generate revenue by selling advertising to our Cable Communications segment
•
our Filmed Entertainment and Broadcast Television segments generate revenue by licensing content to our Cable Networks segment; for segment reporting, this revenue is recognized as the programming rights asset for the licensed content is amortized based on third party revenue
•
our Filmed Entertainment, Cable Networks and Broadcast Television segments generate revenue by licensing content to our Sky segment
(c)
Corporate and Other activities include costs associated with overhead and personnel, revenue and expenses associated with operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, as well as other business development initiatives.
(d)
We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related

7
Table of Contents

Comcast Corporation

to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Adjusted EBITDA
$
8,553

 
$
7,244

Adjustment for Sky transaction-related costs
(51
)
 
—

Depreciation
(2,240
)
 
(2,011
)
Amortization
(1,080
)
 
(588
)
Interest expense
(1,150
)
 
(777
)
Investment and other income (loss), net
676

 
126

Income before income taxes
$
4,708

 
$
3,994

(e)
The revenue and operating costs and expenses associated with our broadcast of the 2018 PyeongChang Olympics were reported in our Cable Networks and Broadcast Television segments. The revenue and operating costs and expenses associated with our broadcast of the 2018 Super Bowl were reported in our Broadcast Television segment. Included in Eliminations are transactions relating to these events that our Broadcast Television and Cable Networks segments enter into with our other segments.

8
Table of Contents

Comcast Corporation

Note 3: Revenue
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Residential:
 
 
 
High-speed internet
$
4,577

 
$
4,157

Video
5,628

 
5,659

Voice
990

 
1,006

Wireless
225

 
185

Business services
1,891

 
1,726

Advertising
556

 
582

Other
413

 
388

Total Cable Communications(a)(b)
14,280

 
13,703

 
 
 
 
Distribution
1,735

 
1,861

Advertising
852

 
977

Content licensing and other
281

 
319

Total Cable Networks
2,868

 
3,157

 
 
 
 
Advertising
1,317

 
2,365

Content licensing
560

 
522

Distribution and other
590

 
610

Total Broadcast Television
2,467

 
3,497

 
 
 
 
Theatrical
445

 
423

Content licensing
817

 
733

Home entertainment
267

 
248

Other
239

 
243

Total Filmed Entertainment
1,768

 
1,647

 
 
 
 
Total Theme Parks
1,276

 
1,281

Headquarters and Other
17

 
14

Eliminations(c)
(83
)
 
(99
)
Total NBCUniversal
8,313

 
9,497

 
 
 
 
Direct-to-consumer
3,834

 
—

Content
370

 
—

Advertising
593

 
—

Total Sky
4,797

 
—

 
 
 
 
Corporate and Other(b)
108

 
243

Eliminations(c)
(639
)
 
(652
)
Total revenue
$
26,859

 
$
22,791

(a)
For the three months ended March 31, 2019 and 2018, 2.6% and 2.7%, respectively, of Cable Communications segment revenue was derived from franchise and other regulatory fees.
(b)
Comcast Cable’s wireless phone service is now presented in the Cable Communications segment. Results were previously presented in Corporate and Other. We recognize revenue from our wireless phone service as the services are provided, similar to how we recognize revenue for other residential cable services. We recognize revenue from the sale of handsets at the point of sale.
(c)
Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.

9
Table of Contents

Comcast Corporation

We operate primarily in the United States but also in select international markets. The table below summarizes revenue by geographic location.
 
Three Months Ended
March 31
(in millions)
2019
 
2018
United States
$
20,457

 
$
20,885

Europe
5,370

 
821

Other
1,032

 
1,085

Total revenue
$
26,859

 
$
22,791

No single customer accounted for a significant amount of revenue in any period presented.
Condensed Consolidated Balance Sheet
The following tables summarize our accounts receivable and other balances that are not separately presented in our condensed consolidated balance sheet that relate to the recognition of revenue and collection of the related cash, as well as deferred costs associated with our contracts with customers.
(in millions)
March 31,
2019
 
December 31,
2018
Receivables, gross
$
11,161

 
$
11,456

Less: Allowance for doubtful accounts
425

 
352

Receivables, net
$
10,736

 
$
11,104

(in millions)
March 31,
2019
 
December 31,
2018
Noncurrent receivables, net (included in other noncurrent assets, net)
$
1,379

 
$
1,399

Contract acquisition and fulfillment costs (included in other noncurrent assets, net)
$
1,001

 
$
991

Noncurrent deferred revenue (included in other noncurrent liabilities)
$
786

 
$
650

Note 4: Earnings Per Share
Computation of Diluted EPS
 
Three Months Ended March 31
 
2019
 
2018
(in millions, except per share data)
Net Income
Attributable to
Comcast
Corporation
 
Shares
 
Per Share
Amount
 
Net Income
Attributable to
Comcast
Corporation
 
Shares
 
Per Share
Amount
Basic EPS attributable to Comcast Corporation shareholders
$
3,553

 
4,534

 
$
0.78

 
$
3,118

 
4,633

 
$
0.67

Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Assumed exercise or issuance of shares relating to stock plans
 
 
60

 
 
 
 
 
72

 
 
Diluted EPS attributable to Comcast Corporation shareholders
$
3,553

 
4,594

 
$
0.77

 
$
3,118

 
4,705

 
$
0.66

Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the combination of the option exercise price and the associated unrecognized compensation expense is greater than the average market price of our common stock. The amount of potential common shares related to our share-based compensation plans that were excluded from diluted EPS because their effect would have been antidilutive was not material for the three months ended March 31, 2019 or 2018.

10
Table of Contents

Comcast Corporation

Note 5: Long-Term Debt
As of March 31, 2019, our debt had a carrying value of $109.1 billion and an estimated fair value of $115.8 billion. The estimated fair value of our publicly traded debt was primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices was based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.
Debt Borrowings and Repayments
For the three months ended March 31, 2019, we had borrowings of $222 million related to the Universal Beijing Resort term loans.
For the three months ended March 31, 2019, we made debt repayments of $2.1 billion primarily related to our dollar-denominated term loan due 2022.
Revolving Credit Facilities
For the three months ended March 31, 2019, we made net repayments of $615 million under Sky’s £1 billion revolving credit facility due 2021, which was terminated in February 2019. As of March 31, 2019, there were no amounts outstanding under our revolving credit facilities. Amounts available under our revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit and bank guarantees, totaled $9.2 billion.
Commercial Paper Programs
For the three months ended March 31, 2019, we made net repayments of $673 million under our commercial paper programs. As of March 31, 2019, we had no commercial paper outstanding.
Guarantee Structure
Comcast, Comcast Cable and NBCUniversal have fully and unconditionally guaranteed each other’s debt securities, including the Comcast revolving credit facility. As of March 31, 2019, the principal amount of debt securities within the cross-guarantee structure totaled $92.3 billion.
Comcast and Comcast Cable fully and unconditionally guarantee NBCUniversal Enterprise’s $3.0 billion aggregate principal amount of senior notes, its revolving credit facility and its commercial paper program. NBCUniversal does not guarantee the NBCUniversal Enterprise senior notes, revolving credit facility or commercial paper program.
Comcast Parent provides an unconditional guarantee of the Universal Studios Japan yen-denominated ¥385 billion (approximately $3.5 billion using exchange rates as of March 31, 2019) term loans with a final maturity of March 2022. None of Comcast, Comcast Cable nor NBCUniversal guarantee the ¥5.5 billion RMB ($815 million using exchange rates as of March 31, 2019) principal amount of Universal Beijing Resort term loans outstanding.
In March 2019, Sky announced a series of consent solicitations for holders of all of its outstanding debt (approximately $10.0 billion using exchange rates as of March 31, 2019). If all of the consent solicitations are successful, Comcast Parent will provide a full and unconditional guarantee of the Sky notes in exchange for noteholders consenting to (i) the transfer of the listing of three series of notes from the Main Market of the London Stock Exchange to the Professional Securities Market of the London Stock Exchange and (ii) amending certain terms of the Sky notes.
Note 6: Significant Transactions
Sky Transaction
On October 9, 2018, in connection with our offer to acquire the share capital of Sky, we acquired a controlling interest in Sky through a series of purchases of Sky shares at our offer price of £17.28 per Sky share. In the fourth quarter of 2018, we acquired the remaining Sky shares and now own 100% of Sky’s equity interests. Total cash consideration was £30.2 billion (approximately $39.4 billion using the exchange rates on the purchase dates). We financed the acquisition through a combination of new fixed and floating rate notes, issuance of term loans and cash on hand. Sky is one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks.

11
Table of Contents

Comcast Corporation

Allocation of Purchase Price
We have applied acquisition accounting to Sky. Sky’s results of operations are included in our consolidated results of operations since the acquisition date and are reported in our Sky segment. The net assets of Sky were recorded at their estimated fair value using primarily Level 3 inputs. In valuing acquired assets and liabilities, fair value estimates are based on, but are not limited to, future expected cash flows, market rate assumptions for contractual obligations and appropriate discount rates.
During the first quarter 2019, we revised our estimates of fair value, primarily related to intangible assets, property and equipment, and investments (included below in other noncurrent assets and (liabilities), net), and recorded corresponding updates to deferred taxes. We also recorded an additional valuation allowance of approximately $1.2 billion associated with our assessment of the realization of Sky’s deferred tax assets, primarily related to net operating losses. These changes resulted in an increase in goodwill of approximately $1.4 billion and an adjustment in the current period related to the fourth quarter of 2018 that resulted in an increase to depreciation and amortization expense of $53 million.
The table below presents the allocation of the all-cash purchase price of £30.2 billion, or $39.4 billion, to the assets and liabilities of Sky as a result of the transaction.
Allocation of Purchase Price
 
(in millions)
 
Consideration transferred
$
39,387

 
 
Allocation of purchase price
 
Cash
$
1,283

Accounts receivable and other current assets
2,359

Film and television costs
2,512

Property and equipment
4,127

Intangible assets
19,539

Accounts payable, accrued liabilities and other current liabilities
(5,885
)
Long-term debt
(11,468
)
Deferred tax assets (liabilities), net
(2,974
)
Other noncurrent assets and (liabilities), net
(1,398
)
Fair value of identifiable net assets acquired
8,095

Goodwill
$
31,292

Property and Equipment
Property and equipment includes customer premise equipment with a carrying value of $1.4 billion, which have original estimated useful lives of 5 to 7 years. The remaining property and equipment consists of real estate and improvements, network assets and other equipment.
Intangible Assets
Finite-lived intangible assets primarily consist of customer relationships with a carrying amount of $9.5 billion and developed technology and software with a carrying amount of $4.3 billion, with original estimated useful lives between 6 and 19 years and 4 to 9 years, respectively. Indefinite-lived assets consist of trade names with a carrying amount of $5.8 billion.
Goodwill
Goodwill consists primarily of intangible assets that do not qualify for separate recognition, including increased footprint, assembled workforce, noncontractual relationships and agreements. The acquired goodwill is not expected to be deductible for tax purposes.
Unaudited Pro Forma Information
The following unaudited pro forma information has been presented as if the Sky transaction occurred on January 1, 2017. This information is based on historical results of operations, adjusted for allocation of purchase price and other acquisition accounting adjustments, and is not necessarily indicative of what the results would have been had we operated the business since January 1, 2017. For pro forma purposes, 2018 earnings were adjusted to exclude transaction-related costs. No pro forma adjustments have been made for cost savings or synergies that have been or may be achieved by the combined businesses.

12
Table of Contents

Comcast Corporation

(in millions, except per share data)
Three Months Ended
March 31, 2018
Revenue
$
27,762

Net income attributable to Comcast Corporation
$
2,983

Basic earnings per common share attributable to Comcast Corporation shareholders
$
0.64

Diluted earnings per common share attributable to Comcast Corporation shareholders
$
0.63

Universal Beijing Resort
We entered into an agreement with a consortium of Chinese state-owned companies to build and operate a Universal theme park and resort in Beijing, China (“Universal Beijing Resort”). We own a 30% interest in Universal Beijing Resort and the construction is being funded through a combination of debt financing and equity contributions from the investors in accordance with their equity interests. The debt financing, which is being provided by a syndicate of Chinese financial institutions, contains certain financial and operating covenants and a maximum borrowing limit of ¥26.6 billion RMB (approximately $4 billion). The debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. As of March 31, 2019, Universal Beijing Resort had $815 million principal amount of term loans outstanding under the debt financing agreements.
We have concluded that Universal Beijing Resort is a variable interest entity based on its governance structure, and we consolidate it because we have the power to direct activities that most significantly impact its economic performance. There are no liquidity arrangements, guarantees or other financial commitments between us and Universal Beijing Resort, and therefore our maximum risk of financial loss is our 30% interest. Universal Beijing Resort’s results of operations are reported in our Theme Parks segment. Our condensed consolidated statement of cash flows includes the costs of construction and related borrowings in the "construction of Universal Beijing Resort" and "proceeds from borrowings" captions, respectively, and equity contributions from our investing partner are included in other financing activities.
In March 2018, Universal Beijing Resort received initial equity investments through a combination of cash and noncash contributions from the investors. As of March 31, 2019, our condensed consolidated balance sheet included assets, primarily property and equipment, and liabilities, including the term loans, of Universal Beijing Resort totaling $1.8 billion and $1.3 billion, respectively.
Note 7: Recent Accounting Pronouncements
Leases
In February 2016, the FASB updated the accounting guidance related to leases. The most significant change in the updated accounting guidance requires lessees to recognize lease assets and liabilities on the balance sheet for all operating leases with the exception of short-term leases. The standard also expands the disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. For a lessee, the recognition, measurement and presentation of expenses and cash flows arising from a lease did not significantly change from previous guidance. We adopted the updated guidance on January 1, 2019 on a prospective basis and as a result, prior period amounts were not adjusted to reflect the impacts of the updated guidance. In addition, as permitted under the transition guidance within the new standard, prior scoping and classification conclusions were carried forward for leases existing as of the adoption date.
Upon adoption, we recorded $4.2 billion and $4.8 billion for operating lease assets and liabilities, respectively, which includes the impact of fair value adjustments, prepaid and deferred rent and lease incentives. The adoption of the updated accounting guidance did not significantly impact our recognition of finance leases, which were previously described as capital leases. As of the date of adoption, our liabilities for finance leases were $787 million, including $229 million of additional contracts determined to be leases in connection with the Sky transaction, which were recorded in long-term debt, and the related assets were recorded in property and equipment, net. Our finance leases were not considered material for further disclosure. The adoption of the new accounting guidance did not have a material impact on our consolidated results of operations or cash flows. See Note 11 for further information.
Film and Television Costs
In March 2019, the FASB updated the accounting guidance related to film and television costs. The updated guidance aligns the accounting for production costs of episodic television series with those of films, allowing for costs to be capitalized in excess of amounts of revenue contracted for each episode. The updated guidance also updates certain presentation and disclosure requirements for capitalized film and television costs, and requires impairment testing to be performed at a group level for capitalized film and television costs when the content is predominately monetized with other owned or licensed content. The updated guidance is effective for us as of January 1, 2020 and early adoption is permitted. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements, however we do not expect there to be a material impact on our consolidated results of operations or cash flows.

13
Table of Contents

Comcast Corporation

Note 8: Film and Television Costs
(in millions)
March 31,
2019
 
December 31,
2018
Film Costs:
 
 
 
Released, less amortization
$
1,544

 
$
1,600

Completed, not released
40

 
144

In production and in development
1,267

 
1,063

 
2,851

 
2,807

Television Costs:
 
 
 
Released, less amortization
2,390

 
2,289

In production and in development
820

 
953

 
3,210

 
3,242

Programming rights, less amortization
4,932

 
5,534

 
10,993

 
11,583

Less: Current portion of programming rights
2,942

 
3,746

Film and television costs
$
8,051

 
$
7,837

Note 9: Investments
Investment and Other Income (Loss), Net
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Equity in net income (losses) of investees, net
$
262

 
$
(49
)
Realized and unrealized gains (losses) on equity securities, net
214

 
28

Other income (loss), net
200

 
147

Investment and other income (loss), net
$
676

 
$
126

(in millions)
March 31,
2019
 
December 31,
2018
Equity method
$
4,960

 
$
4,035

Marketable equity securities
538

 
341

Nonmarketable equity securities
1,942

 
1,805

Other investments
1,805

 
1,796

Total investments
9,245

 
7,977

Less: Current investments
86

 
94

Noncurrent investments
$
9,159

 
$
7,883

Equity Method
Atairos
Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of operations. We recognize our proportionate share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2019 and 2018, we recognized our proportionate share of Atairos’ income of $374 million and $35 million, respectively. For the three months ended March 31, 2019 and 2018, we made cash capital contributions to Atairos totaling $37 million and $31 million, respectively. As of March 31, 2019 and December 31, 2018, our investment in Atairos was $3.1 billion and $2.7 billion, respectively.
Hulu
For the three months ended March 31, 2019 and 2018, we recognized our proportionate share of Hulu’s losses of $141 million and $131 million, respectively, in equity in net income (losses) of investees, net. For the three months ended March 31, 2019 and 2018, we made cash capital contributions to Hulu totaling $233 million and $114 million, respectively. As of March 31, 2019 and December 31, 2018, our investment in Hulu was $341 million and $248 million, respectively.

14
Table of Contents

Comcast Corporation

In August 2016, Time Warner Inc. acquired a 10% interest in Hulu, which diluted our interest in Hulu from 33% to 30%. Given the contingent nature of put and call options related to its shares, we recorded a deferred gain as a result of the dilution. In the first quarter of 2019, the put and call options expired unexercised and we recognized the previously deferred gain of $159 million in other income (loss), net.
The Weather Channel
In March 2018, we sold our investment in The Weather Channel cable network and recognized a pretax gain of $64 million in other income (loss), net.
Marketable Equity Securities
Snap
For the three months ended March 31, 2019 and 2018, we recognized unrealized gains of $162 million and $37 million, respectively, in realized and unrealized gains (losses) on equity securities, net related to our investment in Snap. As of March 31, 2019 and December 31, 2018, our investment in Snap was $324 million and $162 million, respectively.
Other Investments
AirTouch
We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of both March 31, 2019 and December 31, 2018, our investment in AirTouch was $1.6 billion. We account for our investment in AirTouch as a held to maturity investment using the cost method. As of March 31, 2019, the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.7 billion. The estimated fair values are based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.
Note 10: Supplemental Financial Information
Share-Based Compensation
Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.
In March 2019, we granted 12.4 million RSUs and 41.9 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $39.88 per RSU and $7.91 per stock option.
Recognized Share-Based Compensation Expense
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Restricted share units
$
127

 
$
83

Stock options
47

 
44

Employee stock purchase plans
9

 
12

Total
$
183

 
$
139

As of March 31, 2019, we had unrecognized pretax compensation expense of $1.5 billion and $670 million related to nonvested RSUs and nonvested stock options, respectively.
Cash Payments for Interest and Income Taxes 
 
Three Months Ended
March 31
(in millions)
2019
 
2018
Interest
$
970

 
$
854

Income taxes
$
189

 
$
162


15
Table of Contents

Comcast Corporation

Noncash Activities
During the three months ended March 31, 2019:
•
we acquired $1.6 billion of property and equipment and intangible assets that were accrued but unpaid
•
we recorded a liability of $953 million for a quarterly cash dividend of $0.21 per common share to be paid in April 2019
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheet to the total of the amounts reported in our condensed consolidated statement of cash flows.
(in millions)
March 31,
2019
 
December 31,
2018
Cash and cash equivalents
$
3,498

 
$
3,814

Restricted cash included in other current assets
49

 
46

Restricted cash included in other noncurrent assets, net
50

 
49

Cash, cash equivalents and restricted cash, end of period
$
3,597

 
$
3,909

Accumulated Other Comprehensive Income (Loss)
(in millions)
March 31,
2019
 
March 31,
2018
Unrealized gains (losses) on marketable securities
$
4

 
$
1

Deferred gains (losses) on cash flow hedges
54

 
20

Unrecognized gains (losses) on employee benefit obligations
318

 
310

Cumulative translation adjustments
46

 
277

Accumulated other comprehensive income (loss), net of deferred taxes
$
422

 
$
608

Note 11: Commitments and Contingencies
Leases
Our leases consist primarily of real estate, vehicles and other equipment. We determine if an arrangement is a lease at inception. Lease assets and liabilities are recognized upon commencement of the lease based on the present value of the future minimum lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. We generally utilize our incremental borrowing rate based on information available at the commencement of the lease in determining the present value of future payments. The lease asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. Lease assets and liabilities are not recorded for leases with an initial term of one year or less. Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. Operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our condensed consolidated statement of income for the three months ended March 31, 2019 were $274 million. These amounts do not include lease costs associated with production activities or other amounts capitalized in our condensed consolidated balance sheet, which are not material.
The table below summarizes the operating lease assets and liabilities recorded in our condensed consolidated balance sheet.
Condensed Consolidated Balance Sheet
(in millions)
March 31,
2019
Other noncurrent assets, net
$
4,100

Accrued expenses and other current liabilities
$
693

Other noncurrent liabilities
$
4,014


16
Table of Contents

Comcast Corporation

The table below summarizes our future minimum rental commitments for operating leases as of March 31, 2019 applying the new accounting guidance.
(in millions)
March 31,
2019
Remaining nine months of 2019
$
669

2020
832

2021
724

2022
592

2023
501

Thereafter
2,536

Total future minimum lease payments
5,854

Less: imputed interest
1,147

Total liability
$
4,707

The weighted average remaining lease term for operating leases and the weighted average discount rate used to calculate our operating lease liabilities as of March 31, 2019 were 10 years and 3.84%, respectively.
For the three months ended March 31, 2019, cash payments for operating leases recorded in the condensed consolidated balance sheet were $213 million. Leases that have not yet commenced and lease assets and liabilities associated with leases entered into during the period were not material.
The tables below summarize our future minimum rental commitments for operating leases as of December 31, 2018 and rent expense for operating leases for the three months ended March 31, 2018 using the accounting guidance in effect at that time. These amounts have been updated to include $804 million of future cash payments related to additional contracts determined to be operating leases in connection with the Sky transaction.
(in millions)
December 31,
2018
2019
$
891

2020
$
824

2021
$
722

2022
$
592

2023
$
513

Thereafter
$
2,608

 
 
(in millions)
Three Months Ended
March 31, 2018
Rental expense
$
186

Redeemable Subsidiary Preferred Stock
As of March 31, 2019, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $739 million. The estimated fair value is based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.
Contingencies
We are a defendant in several unrelated lawsuits claiming infringement of various patents relating to various aspects of our businesses. In certain of these cases, other industry participants are also defendants, and also in certain of these cases, we expect that any potential liability would be in part or in whole the responsibility of our equipment and technology vendors under applicable contractual indemnification provisions. In addition, we are subject to other legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.
Note 12: Condensed Consolidating Financial Information
Comcast (“Comcast Parent”), Comcast Cable Communications, LLC (“CCCL Parent”) and NBCUniversal (“NBCUniversal Media Parent”) have fully and unconditionally guaranteed each other’s debt. See Note 5 for additional information on the cross-guarantee structure.

17
Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income
For the Three Months Ended March 31, 2019 
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Revenue:
 
 
 
 
 
 
 
Service revenue
$
—

$
—

$
—

$
—

$
26,859

$
—

$
26,859

Management fee revenue
305

—

299

—

—

(604
)
—

Total revenue
305

—

299

—

26,859

(604
)
26,859

Costs and Expenses:
 
 
 
 
 
 
 
Programming and production
—

—

—

—

8,569

—

8,569

Other operating and administrative
188

—

299

271

7,746

(604
)
7,900

Advertising, marketing and promotion
—

—

—

—

1,888

—

1,888

Depreciation
14

—

—

—

2,226

—

2,240

Amortization
1

—

—

—

1,079

—

1,080

Total cost and expenses
203

—

299

271

21,508

(604
)
21,677

Operating income (loss)
102

—

—

(271
)
5,351

—

5,182

Interest expense
(896
)
(3
)
(49
)
(120
)
(82
)
—

(1,150
)
Investment and other income (loss), net
4,215

4,143

3,314

2,181

2,238

(15,415
)
676

Income (loss) before income taxes
3,421

4,140

3,265

1,790

7,507

(15,415
)
4,708

Income tax (expense) benefit
132

(6
)
10

(6
)
(1,206
)
—

(1,076
)
Net income (loss)
3,553

4,134

3,275

1,784

6,301

(15,415
)
3,632

Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
—

—

—

—

79

—

79

Net income (loss) attributable to Comcast Corporation
$
3,553

$
4,134

$
3,275

$
1,784

$
6,222

$
(15,415
)
$
3,553

Comprehensive income (loss) attributable to Comcast Corporation
$
4,343

$
4,122

$
3,275

$
1,752

$
7,160

$
(16,309
)
$
4,343


18
Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income
For the Three Months Ended March 31, 2018
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Revenue:
 
 
 
 
 
 
 
Service revenue
$
—

$
—

$
—

$
—

$
22,791

$
—

$
22,791

Management fee revenue
292

—

286

—

—

(578
)
—

Total revenue
292

—

286

—

22,791

(578
)
22,791

Costs and Expenses:
 
 
 
 
 
 
 
Programming and production
—

—

—

—

7,429

—

7,429

Other operating and administrative
228

—

286

318

6,260

(578
)
6,514

Advertising, marketing and promotion
—

—

—

—

1,604

—

1,604

Depreciation
11

—

—

—

2,000

—

2,011

Amortization
1

—

—

—

587

—

588

Total costs and expenses
240

—

286

318

17,880

(578
)
18,146

Operating income (loss)
52

—

—

(318
)
4,911

—

4,645

Interest expense
(561
)
(3
)
(47
)
(106
)
(60
)
—

(777
)
Investment and other income (loss), net
3,520

3,319

2,826

1,942

1,588

(13,069
)
126

Income (loss) before income taxes
3,011

3,316

2,779

1,518

6,439

(13,069
)
3,994

Income tax (expense) benefit
107

—

9

(5
)
(929
)
—

(818
)
Net income (loss)
3,118

3,316

2,788

1,513

5,510

(13,069
)
3,176

Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
—

—

—

—

58

—

58

Net income (loss) attributable to Comcast Corporation
$
3,118

$
3,316

$
2,788

$
1,513

$
5,452

$
(13,069
)
$
3,118

Comprehensive income (loss) attributable to Comcast Corporation
$
3,271

$
3,369

$
2,789

$
1,696

$
5,791

$
(13,645
)
$
3,271


19
Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 2019 
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Net cash provided by (used in) operating activities
$
(759
)
$
135

$
(119
)
$
(279
)
$
8,253

$
—

$
7,231

Investing Activities:
 
 
 
 
 
 
 
Net transactions with affiliates
3,908

(135
)
119

140

(4,032
)
—

—

Capital expenditures
(2
)
—

—

—

(2,090
)
—

(2,092
)
Cash paid for intangible assets
(1
)
—

—

—

(546
)
—

(547
)
Acquisitions and construction of real estate properties
(13
)
—

—

—

(3
)
—

(16
)
Construction of Universal Beijing Resort
—

—

—

—

(220
)
—

(220
)
Acquisitions, net of cash acquired
—

—

—

—

(48
)
—

(48
)
Proceeds from sales of investments
—

—

—

—

37

—

37

Purchases of investments
(13
)
—

—

(58
)
(368
)
—

(439
)
Other
—

—

—

—

99

—

99

Net cash provided by (used in) investing activities
3,879

(135
)
119

82

(7,171
)
—

(3,226
)
Financing Activities:
 
 
 
 
 
 
 
Proceeds from (repayments of) short-term borrowings, net
—

—

—

—

(1,288
)
—

(1,288
)
Proceeds from borrowings
—

—

—

—

222

—

222

Repurchases and repayments of debt
(2,000
)
—

—

(5
)
(79
)
—

(2,084
)
Repurchases of common stock under repurchase program and employee plans
(247
)
—

—

—

—

—

(247
)
Dividends paid
(869
)
—

—

—

—

—

(869
)
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock
—

—

—

—

(85
)
—

(85
)
Other
(3
)
—

—

—

29

—

26

Net cash provided by (used in) financing activities
(3,119
)
—

—

(5
)
(1,201
)
—

(4,325
)
Impact of foreign currency on cash, cash equivalents and restricted cash
(1
)
—

—

—

9

—

8

Increase (decrease) in cash, cash equivalents and restricted cash
—

—

—

(202
)
(110
)
—

(312
)
Cash, cash equivalents and restricted cash, beginning of period
—

—

—

416

3,493

—

3,909

Cash, cash equivalents and restricted cash, end of period
$
—

$
—

$
—

$
214

$
3,383

$
—

$
3,597


20
Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 2018
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Net cash provided by (used in) operating activities
$
(270
)
$
453

$
(149
)
$
(382
)
$
5,822

$
—

$
5,474

Investing Activities:
 
 
 
 
 
 
 
Net transactions with affiliates
640

(897
)
149

347

(239
)
—

—

Capital expenditures
—

—

—

—

(1,973
)
—

(1,973
)
Cash paid for intangible assets
(2
)
—

—

—

(417
)
—

(419
)
Acquisitions and construction of real estate properties
(39
)
—

—

—

(20
)
—

(59
)
Construction of Universal Beijing Resort
—

—

—

—

(42
)
—

(42
)
Acquisitions, net of cash acquired
—

—

—

—

(89
)
—

(89
)
Proceeds from sales of investments
—

—

—

57

24

—

81

Purchases of investments
(11
)
—

—

(5
)
(204
)
—

(220
)
Other
—

444

—

—

(15
)
—

429

Net cash provided by (used in) investing activities
588

(453
)
149

399

(2,975
)
—

(2,292
)
Financing Activities:
 
 
 
 
 
 
 
Proceeds from (repayments of) short-term borrowings, net
(902
)
—

—

—

—

—

(902
)
Proceeds from borrowings
3,973

—

—

—

70

—

4,043

Repurchases and repayments of debt
(900
)
—

—

(3
)
(362
)
—

(1,265
)
Repurchases of common stock under repurchase program and employee plans
(1,729
)
—

—

—

—

—

(1,729
)
Dividends paid
(738
)
—

—

—

—

—

(738
)
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock
—

—

—

—

(79
)
—

(79
)
Other
(22
)
—

—

—

116

—

94

Net cash provided by (used in) financing activities
(318
)
—

—

(3
)
(255
)
—

(576
)
Increase (decrease) in cash, cash equivalents and restricted cash
—

—

—

14

2,592

—

2,606

Cash, cash equivalents and restricted cash, beginning of period
—

—

—

496

3,075

—

3,571

Cash, cash equivalents and restricted cash, end of period
$
—

$
—

$
—

$
510

$
5,667

$
—

$
6,177



21
Table of Contents

Comcast Corporation

Condensed Consolidating Balance Sheet
March 31, 2019
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Assets







Cash and cash equivalents
$
—

$
—

$
—

$