Edgar Filing: COMCAST CORP

Form 10-Q

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 June 30, 2011

¨	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to

Commission File Number 001-32871

LOGO

COMCAST CORPORATION

(Exact name of registrant as specified in its charter)


PENNSYLVANIA		27-0000798
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

One Comcast Center, Philadelphia, PA		19103-2838
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (215) 286-1700

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.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ¨ No x

As of June 30, 2011, there were 2,089,624,288 shares of our Class A common stock, 650,044,422 shares of our Class A Special common stock and 9,444,375 shares of our Class B common stock outstanding.

TABLE OF CONTENTS


		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements		2
	Condensed Consolidated Balance Sheet as of June 30, 2011 and December 31, 2010 (Unaudited)		2
	Condensed Consolidated Statement of Income for the Three and Six Months Ended June 30, 2011 and 2010 (Unaudited)		3
	Condensed Consolidated Statement of Comprehensive Income for the Three and Six Months Ended June 30, 2011 and 2010 (Unaudited)		4
	Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2011 and 2010 (Unaudited)		5
	Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2011 and 2010 (Unaudited)		6
	Notes to Condensed Consolidated Financial Statements (Unaudited)		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		59
Item 4.	Controls and Procedures		60
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		60
Item 1A.	Risk Factors		60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		61
Item 6.	Exhibits		62
SIGNATURES			63

This Quarterly Report on Form 10-Q is for the three and six months ended June 30, 2011. This Quarterly Report modifies and supersedes documents filed prior to this Quarterly Report. 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. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report. Throughout this Quarterly Report, we refer to Comcast Corporation as “Comcast;” Comcast and its consolidated subsidiaries, including NBCUniversal, as “we,” “us” and “our;” and Comcast Holdings Corporation as “Comcast Holdings.”

You should carefully review the information contained in this Quarterly Report and particularly consider any risk factors set forth in this Quarterly Report and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report, 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 those words, and other comparable words. You should be aware that those statements are only our predictions. In evaluating those statements, you should specifically consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results may differ materially from any of our forward-looking statements. 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 business and results of operations could be adversely affected if we do not compete effectively

•

changes in technology and consumer behavior may adversely affect our businesses and results of operations

•

programming expenses for our video services are increasing, which could adversely affect our future results of operations

•

as a result of the NBCUniversal transaction, our businesses are subject to the conditions set forth in the NBCUniversal Order and the NBCUniversal Consent Decree, and there can be no assurance that these conditions will not have an adverse effect on our businesses and results of operations

•

we are subject to regulation by federal, state, local and foreign authorities, which may impose additional costs and restrictions on our businesses

•

weak economic conditions may have a negative impact on our results of operations and financial condition

•

a decline in advertising expenditures or changes in advertising markets could negatively impact our results of operations

•

NBCUniversal’s success depends on consumer acceptance of its content, which is difficult to predict, and our results of operations may be adversely affected if our content fails to achieve sufficient consumer acceptance or our costs to acquire content increase

•

the loss of our programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect our business

•

sales of DVDs have been declining

•

we rely on network and information systems and other technology, as well as key properties, and a disruption, failure or destruction of such networks, systems, technology or properties may disrupt our business

•

we may be unable to obtain necessary hardware, software and operational support

•

our businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others

•

labor disputes, whether involving our own employees or sports leagues, may disrupt our operations and adversely affect our business

•

we may face a significant withdrawal liability if we withdraw from multiemployer pension plans or be required to make additional contributions under such plans

•

the other risk factors that are described in our Annual Report on Form 10-K for the year ended December 31, 2010

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheet

(Unaudited)


(in millions, except share data)	June 30, 2011			December 31, 2010
Assets
Current Assets:
Cash and cash equivalents	$	1,997		$	5,984
Receivables, net		4,156			1,855
Programming rights		955			122
Other current assets		1,242			925
Total current assets		8,350			8,886
Film and television costs		5,106			460
Investments		10,829			6,670
Property and equipment, net		24,619			23,515
Franchise rights		59,442			59,442
Goodwill		26,919			14,958
Other intangible assets, net		17,391			3,431
Other noncurrent assets, net		2,126			1,172
Total assets	$	154,782		$	118,534

Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	4,838		$	3,291
Accrued participations and residuals		1,235			—
Accrued expenses and other current liabilities		5,274			3,143
Current portion of long-term debt		1,350			1,800
Total current liabilities		12,697			8,234
Long-term debt, less current portion		38,209			29,615
Deferred income taxes		29,477			28,246
Other noncurrent liabilities		11,985			7,862
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests		15,509			143
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, 2,455,085,038 and 2,437,281,651; outstanding, 2,089,624,288 and 2,071,820,901		25			24
Class A Special common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 720,979,186 and 766,168,658; outstanding, 650,044,422 and 695,233,894		7			8
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375		—			—
Additional paid-in capital		41,301			39,780
Retained earnings		12,932			12,158
Treasury stock, 365,460,750 Class A common shares and 70,934,764 Class A Special common shares		(7,517	)		(7,517	)
Accumulated other comprehensive income (loss)		(105	)		(99	)
Total Comcast Corporation shareholders’ equity		46,643			44,354
Noncontrolling interests		262			80
Total equity		46,905			44,434
Total liabilities and equity	$	154,782		$	118,534

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Income

(Unaudited)


	Three Months Ended June 30						Six Months Ended June 30
(in millions, except per share data)	2011			2010			2011			2010
Revenue	$	14,333		$	9,525		$	26,461		$	18,727
Costs and Expenses:
Operating costs and expenses		9,532			5,788			17,594			11,425
Depreciation		1,478			1,411			2,964			2,790
Amortization		385			248			741			499
		11,395			7,447			21,299			14,714
Operating income		2,938			2,078			5,162			4,013
Other Income (Expense):
Interest expense		(621	)		(543	)		(1,226	)		(1,067	)
Investment income (loss), net		61			—			150			101
Equity in net income (losses) of investees, net		37			(26	)		—			(58	)
Other income (expense), net		(34	)		(35	)		(70	)		(45	)
		(557	)		(604	)		(1,146	)		(1,069	)
Income before income taxes		2,381			1,474			4,016			2,944
Income tax expense		(1,014	)		(588	)		(1,610	)		(1,179	)
Net income from consolidated operations		1,367			886			2,406			1,765
Net (income) loss attributable to noncontrolling interests		(345	)		(2	)		(441	)		(15	)
Net income attributable to Comcast Corporation	$	1,022		$	884		$	1,965		$	1,750
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.37		$	0.31		$	0.71		$	0.62
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.37		$	0.31		$	0.70		$	0.62
Dividends declared per common share attributable to Comcast Corporation shareholders	$	0.1125		$	0.0945		$	0.225		$	0.189

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)


	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2011			2010			2011			2010
Net income from consolidated operations	$	1,367		$	886		$	2,406		$	1,765
Unrealized gains (losses) on marketable securities, net of deferred taxes of $–, $–, $(3) and $–		—			—			5			1
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $4, $24, $(2) and $24		(9	)		(42	)		2			(42	)
Amounts reclassified to net income:
Realized (gains) losses on marketable securities, net of deferred taxes of $1, $–, $5 and $–		(2	)		—			(9	)		—
Realized (gains) losses on cash flow hedges, net of deferred taxes of $(1), $(2), $6 and $(3)		2			3			(10	)		5
Employee benefit obligations, net of deferred taxes of $1, $–, $(1)– and $–		(4	)		—			(1	)		—
Currency translation adjustments		3			—			7			(4	)
Comprehensive income		1,357			847			2,400			1,725
Net (income) loss attributable to noncontrolling interests		(345	)		(2	)		(441	)		(15	)
Other comprehensive (income) loss attributable to noncontrolling interests		2			—			—			—
Comprehensive income attributable to Comcast Corporation	$	1,014		$	845		$	1,959		$	1,710

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Cash Flows

(Unaudited)


	Six Months Ended June 30
(in millions)	2011			2010
Net cash provided by operating activities	$	6,956		$	5,332
Investing Activities
Capital expenditures		(2,377	)		(2,063	)
Cash paid for intangible assets		(296	)		(237	)
Acquisitions, net of cash acquired		(5,660	)		(183	)
Proceeds from sales of investments		116			15
Purchases of investments		(46	)		(32	)
Other		(23	)		(55	)
Net cash provided by (used in) investing activities		(8,286	)		(2,555	)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net		741			—
Proceeds from borrowings		—			2,421
Repurchases and repayments of debt		(1,764	)		(638	)
Repurchases and retirements of common stock		(1,050	)		(600	)
Dividends paid		(572	)		(535	)
Distributions to noncontrolling interests		(175	)		(32	)
Other		163			(36	)
Net cash provided by (used in) financing activities		(2,657	)		580
Increase (decrease) in cash and cash equivalents		(3,987	)		3,357
Cash and cash equivalents, beginning of period		5,984			671
Cash and cash equivalents, end of period	$	1,997		$	4,028

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Changes in Equity

(Unaudited)


	Redeemable Non- controlling Interests			Common Stock							Additional Paid-In Capital			Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Equity
(in millions)	Redeemable Non- controlling Interests			A		A Special			B		Additional Paid-In Capital			Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Equity
Balance, January 1, 2010	$	166		$	24	$	8		$	—	$	40,247		$	10,005		$	(7,517	)	$	(46	)	$	90		$	42,811
Stock compensation plans												100			(4	)											96
Repurchases and retirements of common stock												(407	)		(193	)											(600	)
Employee stock purchase plan												31															31
Dividends declared															(532	)											(532	)
Other comprehensive income (loss)																					(40	)					(40	)
Sale (purchase) of subsidiary shares to (from) noncontrolling interests, net		(20	)									11															11
Contributions from (distributions to) noncontrolling interests																								(19	)		(19	)
Net income (loss)		(1	)												1,750									16			1,766
Balance, June 30, 2010	$	145		$	24	$	8		$	—	$	39,982		$	11,026		$	(7,517	)	$	(86	)	$	87		$	43,524
Balance, January 1, 2011	$	143		$	24	$	8		$	—	$	39,780		$	12,158		$	(7,517	)	$	(99	)	$	80		$	44,434
Stock compensation plans					1							310			(35	)											276
Repurchases and retirements of common stock							(1	)				(514	)		(535	)											(1,050	)
Employee stock purchase plan												33															33
Dividends declared															(621	)											(621	)
Other comprehensive income (loss)																					(6	)					(6	)
NBCUniversal transaction		15,166										1,692												188			1,880
Contributions from (distributions to) noncontrolling interests		(162	)																					(85	)		(85	)
Net income (loss)		362													1,965									79			2,044
Balance, June 30, 2011	$	15,509		$	25	$	7		$	—	$	41,301		$	12,932		$	(7,517	)	$	(105	)	$	262		$	46,905

See accompanying notes to condensed consolidated financial statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Basis of Presentation

We have prepared these unaudited condensed consolidated financial statements based on Securities and Exchange Commission (“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, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. We also evaluated events or transactions that occurred after the balance sheet date through the issuance date of these condensed consolidated financial statements to determine if financial statement recognition or additional disclosure is required. 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 annual financial statements for the preceding fiscal year as filed with the SEC.

On January 28, 2011, we closed our transaction with General Electric Company (“GE”) in which we acquired control of the businesses of NBC Universal, Inc. (now named NBCUniversal Media, LLC (“NBCUniversal”)), a leading media and entertainment company that develops, produces and distributes entertainment, news and information, sports and other content to global audiences. NBCUniversal’s results of operations from January 29 through June 30, 2011 are included in our consolidated results of operations. See Note 4 for additional information on the transaction.

Note 2: Summary of Significant Accounting Policies

The accounting policies described below became significant to our business as a result of the NBCUniversal transaction on January 28, 2011.

Use of Estimates

In connection with the NBCUniversal transaction, we have performed a preliminary allocation of purchase price to the assets and liabilities of the businesses acquired using preliminary estimates. The estimates are subject to change as discussed in Note 4. Estimates are also used when accounting for various items, including capitalized film and television costs, amortization of owned and acquired programming, participation and residual payments, and estimates of DVD returns and customer incentives. Actual results could differ from those estimates.

Film and Television Costs

We capitalize film and television production costs, including direct costs, production overhead, print costs, development costs and interest. We amortize capitalized film and television production costs, as well as accrue costs associated with participation and residual payments, on an individual production basis using the ratio of the current period’s actual revenue to the estimated total remaining gross revenue from all sources, which is referred to as ultimate revenue. Estimates of total revenue and total costs are based on anticipated release patterns, public acceptance and historical results for similar productions. We state unamortized film and television costs at the lower of unamortized cost or fair value. We do not capitalize costs related to film exploitation, which are primarily costs associated with the marketing and distribution of film and television programming.

We state acquired film and television libraries at the lower of unamortized cost or fair value. In determining the estimated lives and method of amortization, we generally use the method and the life that most closely follow the undiscounted cash flows over the estimated life of the asset.

We capitalize the costs to license programming content, including rights to multiyear live-event sports programming, at the earlier of the programming acquisition or when the license period begins and the content is available for use. We amortize capitalized programming costs as the associated programs are broadcast. We amortize multiyear, live-event sports programming rights using the ratio of the current period’s actual direct revenue to the estimated total remaining direct revenue or based on the contract terms.

We state the cost of acquired programming at the lower of unamortized cost or net realizable value on a program-by-program, package, channel or daypart basis. A daypart is defined as an aggregation of programs broadcast during a particular time of day or programs of a similar type. Acquired programming used by our cable programming networks is tested on a channel basis for impairment, whereas the programming for the NBC and Telemundo broadcast networks is tested on a daypart basis. If we determine that the estimates of future cash flows are insufficient or there is no plan to broadcast certain programming, we will recognize an impairment charge in other operating costs and expenses.

We enter into arrangements with third parties to jointly finance and distribute many of our film productions. These arrangements, which are referred to as cofinancing arrangements, can take various forms. In most cases, the form of the arrangement involves the grant of an economic interest in a film to a third-party investor. The number of investors and the terms of these arrangements can also vary, although in most cases an investor assumes the full risk for the portion of the film acquired in these arrangements. We account for our proceeds under these arrangements as a reduction to our capitalized film costs. In these arrangements, the investor owns an undivided copyright interest in the film and, therefore, in each period we record either a charge or benefit to operating costs and expenses to reflect the estimate of the third-party investor’s interest in the profit or loss of the film. The estimate of the third-party investor’s interest in the profit or loss of a film is determined by reference to the ratio of actual revenue earned to date in relation to the ultimate revenue expected to be recognized over a film’s useful life.

See Note 5 for additional information on our film and television costs.

Revenue Recognition

We recognize revenue from the theatrical distribution of films when films are exhibited. We recognize revenue from the licensing of film and television productions when the content is available for use by the licensee, and when certain other conditions are met. When license fees are contracted as part cash and part advertising time, we recognize the advertising time component when the advertising units are aired. We recognize revenue from home entertainment units, net of estimated returns and customer incentives, on the date that units are delivered to and made available for sale by retailers.

We recognize revenue from advance theme park ticket sales when the tickets are used. For nonexpiring, multiday or annual passes, we recognize revenue over the period of benefit based on estimated usage patterns that are derived from historical experience. We recognize revenue from corporate sponsors at the theme parks over the period of the applicable contract.

We also enter into nonmonetary exchanges of advertising units for other advertising units, products or services. Advertising units exchanged for advertising units are recorded at the fair value of advertising units provided and recognized when aired. Advertising units exchanged for products or services are recorded at the fair value of the goods or services received or advertising units provided. Advertising units provided are recognized when aired, and costs are recognized in the period the products or services are used.

Foreign Currency Translation

Functional currencies are determined based on entity-specific economic and management indicators. We translate the assets and liabilities of our foreign subsidiaries where the functional currency is the local currency, primarily the euro and the British pound, into U.S. dollars at the exchange rate in effect at the balance sheet date. We translate revenue and expenses using average exchange rates prevailing during the period. The related translation adjustments are recorded as a component of accumulated other comprehensive income (loss).

Reclassifications

Reclassifications have been made to the prior year’s condensed consolidated balance sheet to programming rights, other current assets, film and television costs, other intangible assets, net and other noncurrent assets, net to adjust to classifications used in the current period as a result of the acquisition of the NBCUniversal businesses.

Note 3: Earnings Per Share

Basic earnings per common share attributable to Comcast Corporation shareholders (“basic EPS”) is computed by dividing net income attributable to Comcast Corporation by the weighted-average number of common shares outstanding during the period.

Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our Class A common stock or our Class A Special common stock, as applicable.

Diluted EPS for the three and six months ended June 30, 2011 excludes approximately 52 million and 43 million, respectively, of potential common shares related to our share-based compensation plans, because the inclusion of the potential common shares would have had an antidilutive effect. For the three and six months ended June 30, 2010, diluted EPS excluded approximately 195 million and 194 million, respectively, of potential common shares.

Computation of Diluted EPS


	Three Months Ended June 30
	2011						2010
(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	$	1,022		2,759	$	0.37	$	884		2,816	$	0.31
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans				30						6
Diluted EPS attributable to Comcast Corporation shareholders	$	1,022		2,789	$	0.37	$	884		2,822	$	0.31


	Six Months Ended June 30
	2011						2010
(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	$	1,965		2,765	$	0.71	$	1,750		2,823	$	0.62
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans				34						7
Diluted EPS attributable to Comcast Corporation shareholders	$	1,965		2,799	$	0.70	$	1,750		2,830	$	0.62

Note 4: Acquisitions

NBCUniversal Transaction

On January 28, 2011, we closed our transaction with GE to form a new company named NBCUniversal, LLC (“NBCUniversal Holdings”). We now control and own 51% of NBCUniversal Holdings and GE owns the remaining 49%. As part of the NBCUniversal transaction, GE contributed the existing businesses of NBCUniversal, which is now a wholly owned subsidiary of NBCUniversal Holdings. The NBCUniversal contributed businesses include its national cable programming networks, the NBC Network and its owned NBC affiliated local television stations, the Telemundo Network and its owned Telemundo affiliated local television stations, Universal Pictures filmed entertainment, the Universal Studios Hollywood theme park, and other investments and related assets. We contributed our national cable programming networks, our regional sports and news networks, certain of our Internet businesses, including DailyCandy and Fandango, and other related assets (the “Comcast Content Business”). The combination of these businesses creates a leading media and entertainment company capable of providing entertainment, news, sports and other content to a global audience across many platforms. In addition to contributing the Comcast Content Business, we made a cash payment to GE of $6.2 billion, which included transaction-related costs. We expect to receive tax benefits related to the transaction and have agreed to share with GE certain of these future tax benefits as they are realized.

In connection with the NBCUniversal transaction, NBCUniversal issued $9.1 billion of senior debt securities with maturities ranging from 2014 to 2041 and repaid approximately $1.7 billion of existing debt during 2010. Prior to the closing, NBCUniversal made a cash distribution of approximately $7.4 billion to GE.

Under the terms of the operating agreement of NBCUniversal Holdings, during the six month period beginning July 28, 2014, GE has the right to cause NBCUniversal Holdings to redeem, in cash, half of GE’s interest in NBCUniversal Holdings, and we would have the immediate right to purchase the remainder of GE’s interest. If, however, we elect not to exercise this right, during the six month period beginning January 28, 2018, GE has the right to cause NBCUniversal Holdings to redeem GE’s remaining interest, if any. If GE does not exercise its first redemption right, during the six month period beginning January 28, 2016, we have the right to purchase half of GE’s interest in NBCUniversal Holdings, and during the six month period beginning January 28, 2019, we have the right to purchase GE’s remaining interest, if any, in NBCUniversal Holdings. The purchase price to be paid in connection with any purchase or redemption described in this paragraph will be equal to the ownership percentage being acquired multiplied by an amount equal to 120% of the fully distributed public market trading value of NBCUniversal Holdings (determined pursuant to an appraisal process if NBCUniversal Holdings is not then publicly traded), less 50% of an amount (not less than zero) equal to the excess of 120% of the fully distributed public market trading value over $28.4 billion. Subject to various limitations, we are committed to fund up to $2.875 billion in cash or our common stock for each of the two redemptions (up to an aggregate of $5.75 billion) to the extent NBCUniversal Holdings cannot fund the redemptions, with amounts not used in the first redemption to be available for the second redemption.

Until July 28, 2014, GE may not directly or indirectly transfer its interest in NBCUniversal Holdings. Thereafter, GE may transfer its interest to a third party, subject to our right of first offer. The right of first offer would permit us to purchase all, but not less than all, of the interests proposed to be transferred. In the event that GE makes a registration request in accordance with certain registration rights that are granted to it under the operating agreement, we will have the right to purchase, for cash at the market value (determined pursuant to an appraisal process if NBCUniversal Holdings is not then publicly traded), all of GE’s interest in NBCUniversal Holdings that GE is seeking to register.

Preliminary Allocation of Purchase Price

Because we now control NBCUniversal Holdings, we have applied acquisition accounting to the NBCUniversal contributed businesses and their results of operations are included in our consolidated results of operations following the acquisition date. The net assets of the NBCUniversal contributed businesses were recorded at their estimated fair value using Level 3 inputs (see Note 10 for an explanation of 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, actuarial assumptions for benefit plans and appropriate discount

rates. The Comcast Content Business continues at its historical or carry-over basis. GE’s interest in NBCUniversal Holdings is recorded as a redeemable noncontrolling interest in our consolidated financial statements due to the redemption provisions outlined above. GE’s redeemable noncontrolling interest has been recorded at fair value for the portion attributable to the net assets we acquired, and at historical cost for the portion attributable to the Comcast Content Business. The estimated values are not yet final and are subject to change, and the changes could be significant. We will finalize the amounts recognized as soon as possible as we obtain the information necessary to complete the analysis, but no later than one year from the acquisition date.

The tables below present the preliminary fair value of the consideration transferred and the preliminary allocation of purchase price to the assets and liabilities of the NBCUniversal businesses acquired as a result of the NBCUniversal transaction.

Consideration Transferred


(in millions)
Cash	$	6,127
Fair value of 49% of the Comcast Content Business		4,278
Fair value of contingent consideration		639
Fair value of redeemable noncontrolling interest associated with net assets acquired		13,032
	$	24,076

Preliminary Allocation of Purchase Price


(in millions)
Film and television costs (see Note 5)	$	5,126
Investments (see Note 6)		3,848
Property and equipment, net (see Note 14)		1,932
Intangible assets, net (see Note 7)		14,376
Working capital		(1,241	)
Long-term debt (see Note 8)		(9,115	)
Deferred income tax liabilities		(69	)
Other noncurrent assets and liabilities		(2,548	)
Noncontrolling interests acquired (see Note 11)		(188	)
Fair value of identifiable net assets acquired		12,121
Goodwill		11,955
	$	24,076

Income Taxes

We are responsible for the tax matters for both NBCUniversal Holdings and NBCUniversal, including the filing of returns and the administering of any proceedings with taxing authorities. For U.S. federal income tax purposes, NBCUniversal Holdings is treated as a partnership and NBCUniversal is disregarded as an entity separate from NBCUniversal Holdings. Accordingly, neither NBCUniversal Holdings nor NBCUniversal and its subsidiaries will incur any material current or deferred U.S. federal income taxes. NBCUniversal Holdings and NBCUniversal and its subsidiaries are, however, expected to incur current and deferred income taxes in a limited number of states and localities. In addition, NBCUniversal’s foreign subsidiaries are expected to incur current and deferred foreign income taxes. GE has indemnified us and NBCUniversal Holdings for any income tax liability attributable to the historical NBCUniversal businesses for periods prior to the acquisition date. We have also indemnified GE and NBCUniversal Holdings for any income tax liability attributable to the Comcast Content Business for periods prior to the acquisition date.

NBCUniversal recognized net deferred income tax liabilities of $69 million in the preliminary allocation of purchase price related primarily to acquired intangible assets in state and foreign jurisdictions. In addition, Comcast recognized $460 million of deferred tax liabilities in connection with GE acquiring an indirect noncontrolling interest in the Comcast Content Business in exchange for our acquisition of a portion of our interest in NBCUniversal Holdings. Because we maintained control of the Comcast Content Business, the excess of fair value received over historical carrying value and the related tax impact were recorded in additional paid-in capital.

We agreed to share with GE certain tax benefits as they are realized, related to the form and structure of the transaction. These payments to GE are contingent on us realizing tax benefits in the future and are accounted for as contingent consideration. We have recorded $639 million in other current and noncurrent liabilities in our acquisition accounting based on the present value of the expected future payments to GE.

Following the closing of the NBCUniversal transaction, our provision for income taxes includes a federal and state tax provision on our allocable share of the earnings of NBCUniversal Holdings and NBCUniversal, as well as the state, local and foreign tax provisions of NBCUniversal Holdings and NBCUniversal, adjusted for any foreign tax credits.

Goodwill

Goodwill consists primarily of intangible assets that do not qualify for separate recognition, including assembled workforce, noncontractual relationships and agreements between us and NBCUniversal. Because our allocation of purchase price and estimated values of identifiable assets and liabilities are not yet final, the amount of total goodwill and the amount of goodwill expected to be deductible for tax purposes are not yet final and are subject to change.

Transaction-Related Expenses

We have incurred significant transaction costs directly related to the NBCUniversal transaction. The incremental expenses related to legal, accounting and valuation services, and investment banking fees are included in operating costs and expenses. We also incurred certain financing costs and other shared costs with GE associated with NBCUniversal’s debt facilities that were entered into in December 2009 and with the issuance of NBCUniversal’s senior notes in 2010, which are included in other income (expense), net and interest expense.

In addition, during the three and six months ended June 30, 2011, NBCUniversal incurred transaction-related costs associated with severance and other related compensation charges, which are included in operating costs and expenses.

The table below presents the amounts related to these expenses included in our consolidated statement of income.


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2011		2010		2011		2010
Operating costs and expenses
Transaction costs	$	—	$	22	$	63	$	36
Transaction-related costs		6		—		50		—
Total operating costs and expenses		6		22		113		36
Other income (expense), net		—		35		16		48
Interest expense		—		2		—		4
Total	$	6	$	59	$	129	$	88

Unaudited Actual and Pro Forma Information

Our consolidated revenue for the three months ended June 30, 2011 and from January 29, 2011 through June 30, 2011 included $4.1 billion and $6.3 billion, respectively, from the NBCUniversal contributed businesses. Our consolidated net income (loss) attributable to Comcast Corporation for the three months ended June 30, 2011 and from January 29, 2011 through June 30, 2011 included $236 million and $228 million, respectively, from the NBCUniversal contributed businesses.

The following unaudited pro forma information has been presented as if the NBCUniversal transaction had occurred on January 1, 2010. This information is based on historical results of operations, adjusted for the 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, 2010. No pro forma adjustments have been made for our incremental transaction costs or other transaction-related costs.


	Actual		Pro Forma		Pro Forma
	Three Months Ended				Six Months Ended
(in millions)	June 30, 2011		June 30, 2010		June 30, 2011		June 30, 2010
Revenue	$	14,333	$	13,103	$	27,622	$	26,411
Net income from consolidated operations	$	1,367	$	1,211	$	2,358	$	1,973
Net income attributable to Comcast Corporation	$	1,022	$	940	$	1,900	$	1,708
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.37	$	0.33	$	0.69	$	0.61
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.37	$	0.33	$	0.68	$	0.60

Note 5: Film and Television Costs


	June 30,		December 31,
(in millions)	2011		2010
Film Costs:
Released, less amortization	$	1,761	$	—
Completed, not released		97		—
In-production and in-development		1,095		—
		2,953		—
Television Costs:
Released, less amortization		1,114		94
Completed, not released		—		—
In-production and in-development		223		43
		1,337		137
Programming rights, less amortization		1,771		445
		6,061		582
Less: Current portion of programming rights		955		122
Film and television costs	$	5,106	$	460

The amounts as of June 30, 2011 include the film and television costs acquired in connection with the closing of the NBCUniversal transaction at fair value as of January 28, 2011, less accumulated amortization following the acquisition date. The capitalized programming costs of the Comcast Content Business are reflected at their historical cost, less accumulated amortization for both periods presented.

As of June 30, 2011, acquired film and television libraries had remaining unamortized costs of approximately $1.3 billion. For the three and six months ended June 30, 2011, amortization of acquired film and television libraries included in operating costs and expenses totaled $47 million and $80 million, respectively.

Note 6: Investments


	June 30,		December 31,
(in millions)	2011		2010
Fair value method	$	3,343	$	2,815
Equity method, primarily SpectrumCo and Clearwire		2,053		2,193
Cost method, primarily AirTouch redeemable preferred shares		1,754		1,743
Acquired NBCUniversal investments		3,743		—
Total investments		10,893		6,751
Less: Current investments		64		81
Noncurrent investments	$	10,829	$	6,670

Investments acquired in connection with the NBCUniversal transaction primarily include equity method investments in A&E Television Networks, LLC (16%); Universal City Development Partners (“UCDP”) (50%) (see Note 18), which consists of the ownership and operation of two theme parks in Orlando, Florida; The Weather Channel (25%); and MSNBC.com (50%); and cost method investments, primarily in Hulu (32%). See Note 4 for additional information on the NBCUniversal transaction.

Components of Investment Income (Loss), Net


	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2011			2010			2011			2010
Gains on sales and exchanges of investments, net	$	7		$	9		$	21		$	11
Investment impairment losses		(3	)		(6	)		(3	)		(14	)
Unrealized gains (losses) on securities underlying prepaid forward sale agreements		226			(129	)		535			231
Mark to market adjustments on derivative component of prepaid forward sale agreements		(187	)		131			(452	)		(146	)
Mark to market adjustments on derivative component of ZONES		1			1			5			2
Interest and dividend income		26			23			52			45
Other, net		(9	)		(29	)		(8	)		(28	)
Investment income (loss), net	$	61		$	—		$	150		$	101

Note 7: Goodwill and Other Intangible Assets

Goodwill

The table below presents our goodwill attributable to our Cable Communications segment (previously our Cable Segment), the Comcast Content Business (now included in the new NBCUniversal segments) and Corporate and Other, as well as the total goodwill attributable to the NBCUniversal acquired businesses. See Note 17 for additional information on our segments.


			NBCUniversal
(in millions)	Cable Communications		Comcast Content Business		NBCUniversal Acquired Businesses		Corporate and Other		Total
Balance, December 31, 2010	$	12,207	$	2,564	$	—	$	187	$	14,958
Acquisitions		—		—		11,959		—		11,959
Settlements and adjustments		1		—		1		—		2
Balance, June 30, 2011	$	12,208	$	2,564	$	11,960	$	187	$	26,919

The change in goodwill for the six months ended June 30, 2011 is primarily related to the closing of the NBCUniversal transaction on January 28, 2011. The preliminary allocation of purchase price to the assets and liabilities of the NBCUniversal businesses acquired, and the allocation of goodwill among reporting segments, are not complete and are subject to change. We expect the majority of the goodwill will be related to our Cable Networks segment. See Note 4 for additional information on the NBCUniversal transaction.

The carrying amount of goodwill at both June 30, 2011 and December 31, 2010 includes accumulated impairments of $76 million within our Cable Networks segment.

Other Intangible Assets


			June 30, 2011					December 31, 2010
(in millions)	Original Useful Life at June 30, 2011		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Other intangible assets		2-25 years	$	8,996	$	(5,738	)	$	12,271	$	(8,840	)
Acquired NBCUniversal intangible assets:
Finite-lived intangible assets		4-19 years		11,312		(279	)		—		—
Indefinite-lived intangible assets		N/A		3,100					—
Total			$	23,408	$	(6,017	)	$	12,271	$	(8,840	)

The decrease in the gross carrying amount and accumulated amortization of other intangible assets for the six months ended June 30, 2011 was due to the write-off of fully amortized customer relationship and other intangible assets.

The intangible assets recorded as a result of the NBCUniversal transaction include finite-lived intangible assets, primarily relationships with advertisers and multichannel video providers, and indefinite-lived intangible assets, primarily trade names and Federal Communications Commission licenses. See Note 4 for additional information on the NBCUniversal transaction.

Note 8: Long-Term Debt

As of June 30, 2011, our debt had an estimated fair value of $43 billion. The estimated fair value of our publicly traded debt is based on quoted market values for the debt. To estimate the fair value of debt for which there are no quoted market prices, we use interest rates available to us for debt with similar terms and remaining maturities.

NBCUniversal

NBCUniversal issued $9.1 billion principal amount of senior debt securities during 2010 in connection with the NBCUniversal transaction. In accordance with acquisition accounting, the senior debt securities were recorded at fair value based on interest rates available to us for debt with similar terms and remaining maturities as of January 28, 2011. The table below presents the carrying value of these senior debt securities included in our balance sheet as of June 30, 2011.


(in millions)	Interest Rate			June 30, 2011
Senior notes due 2014		2.100	%	$	903
Senior notes due 2015		3.650	%		1,032
Senior notes due 2016		2.875	%		988
Senior notes due 2020		5.150	%		2,063
Senior notes due 2021		4.375	%		1,937
Senior notes due 2040		6.400	%		1,033
Senior notes due 2041		5.950	%		1,176
Total				$	9,132

NBCUniversal Revolving Bank Credit Facility

Effective with the closing of the NBCUniversal transaction on January 28, 2011, NBCUniversal has a revolving credit facility with a syndicate of banks that may be used for general corporate purposes. In June 2011, NBCUniversal amended its revolving credit facility, which increased the size of the facility to $1.5 billion from $750 million, reduced the interest rate payable under the facility and extended the maturity of the loan commitment to June 2016 from January 2014. As of June 30, 2011, the credit facility remained undrawn. See Note 18 for additional information on the NBCUniversal revolving credit facility.

Repayments

In January 2011, we repaid $1 billion principal amount of 6.75% notes due at maturity. In March 2011, we repaid $750 million principal amount of 5.5% notes due at maturity.

Commercial Paper

During the six months ended June 30, 2011, we issued $750 million face amount of commercial paper, net of repayments.

Note 9: Derivative Financial Instruments

We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in interest rates, foreign exchange rates and equity prices. Our objective is to manage the financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the derivatives used to economically hedge them. We do not engage in any speculative or leveraged derivative transactions. All derivative transactions must comply with the derivatives policy approved by our Board of Directors. Derivative financial instruments are recorded in our consolidated balance sheet at fair value. We formally document, at inception of the hedging relationship, derivative financial instruments designated to hedge the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (“fair value hedge”) or the exposure to changes in cash flows of a forecasted transaction (“cash flow hedge”), and we evaluate them for effectiveness at the time they are designated, as well as throughout the hedging period.

We manage our exposure to fluctuations in interest rates by using derivative financial instruments such as interest rate exchange agreements (“swaps”) and interest rate lock agreements (“rate locks”). We sometimes enter into rate locks or collars to hedge the risk that the cash flows related to the interest payments on an anticipated issuance or assumption of fixed-rate debt may be adversely affected by interest rate fluctuations.

We manage our exposure to foreign exchange risk related to NBCUniversal’s recognized balance sheet amounts in foreign currency and foreign currency denominated production costs and rights, as well as international content-related revenue and royalties, by using foreign exchange contracts such as forward contracts and currency options. We manage our exposure to foreign exchange risk related to our foreign currency denominated borrowings by using cross-currency swap agreements, effectively converting these borrowings to U.S. dollar denominated borrowings.

We manage our exposure to price fluctuations in the common stock of some of our investments by using equity derivative financial instruments embedded in other contracts, such as prepaid forward sale agreements, whose values, in part, are derived from the market value of certain publicly traded common stock.

We manage the credit risks associated with our derivative financial instruments through diversification and the evaluation and monitoring of the creditworthiness of the counterparties. Although we may be exposed to losses in the event of nonperformance by the counterparties, we do not expect such losses, if any, to be significant. We have agreements with certain counterparties that include collateral provisions. These provisions require a party with an aggregate unrealized loss position in excess of certain thresholds to post cash collateral for the amount in excess of the threshold. The threshold levels in our collateral agreements are based on our and the counterparties’ credit ratings. As of June 30, 2011 and December 31, 2010, neither we nor any of the counterparties were required to post collateral under the terms of the agreements.

As of June 30, 2011, our derivative financial instruments designated as hedges included (i) our interest rate swap agreements, which are recorded to other current or noncurrent assets, (ii) certain of our foreign exchange contracts, which are recorded to other current assets or accrued expenses and other current liabilities, (iii) our cross-currency swap agreements, which are recorded to other noncurrent liabilities, and (iv) the derivative component of one of our prepaid forward sale agreements, which is recorded to other noncurrent liabilities.

As of June 30, 2011, our derivative financial instruments not designated as hedges were (i) certain of our foreign exchange contracts, which are recorded to other current assets or accrued expenses and other current liabilities, (ii) the derivative component of our indexed debt instruments (our ZONES debt), which is recorded to long-term debt, and (iii) the derivative components of certain of our prepaid forward sale agreements, which are recorded to other current and noncurrent liabilities.

See Note 10 for additional information on the fair values of our derivative financial instruments as of June 30, 2011 and December 31, 2010.

Fair Value Hedges

Amount of Gain (Loss) Recognized in Income


(in millions)	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2011			2010			2011			2010
Interest Income (Expense):
Interest rate swap agreements (fixed to variable)	$	74		$	90		$	29		$	118
Long-term debt—interest rate swap agreements (fixed to variable)		(74	)		(90	)		(29	)		(118	)
Investment Income (Loss):
Mark to market adjustments on derivative component of prepaid forward sale agreement		(4	)		4			(7	)		(7	)
Unrealized gains (losses) on securities underlying prepaid forward sale agreement		8			(3	)		13			16
Gain (loss) on fair value hedging relationships	$	4		$	1		$	6		$	9

During the period from January 29, 2011 through June 30, 2011, NBCUniversal entered into fixed to variable swaps on $750 million principal amount of NBCUniversal senior debt securities with maturities ranging from 2014 to 2016. These fixed to variable swaps are designated as effective fair value hedges.

As of June 30, 2011 and December 31, 2010, the fair value of our prepaid forward sale agreement designated as a fair value hedge was a liability of $37 million and $29 million, respectively.

Cash Flow Hedges

Pretax Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income


	Three Months Ended June 30
	2011								2010
(in millions)	Interest Rate Risk		Foreign Exchange Risk			Total			Interest Rate Risk		Foreign Exchange Risk			Total
Deferred gain (loss) recognized	$	—	$	(13	)	$	(13	)	$	—	$	(66	)	$	(66	)
Deferred (gain) loss reclassified to income		5		(2	)		3			4		—			4
Total change in accumulated other comprehensive income	$	5	$	(15	)	$	(10	)	$	4	$	(66	)	$	(62	)


	Six Months Ended June 30
	2011								2010
(in millions)	Interest Rate Risk		Foreign Exchange Risk			Total			Interest Rate Risk		Foreign Exchange Risk			Total
Deferred gain (loss) recognized	$	—	$	4		$	4		$	—	$	(66	)	$	(66	)
Deferred (gain) loss reclassified to income		11		(27	)		(16	)		8		—			8
Total change in accumulated other comprehensive income	$	11	$	(23	)	$	(12	)	$	8	$	(66	)	$	(58	)

Interest rate risk deferred losses relate to interest rate lock agreements entered into to fix the interest rates of certain of our debt obligations in advance of their issuance. Unless we retire this debt early, these unrealized losses will be reclassified as an adjustment to interest expense, primarily through 2022, in the period in which the related interest expense is recognized in earnings. As of June 30, 2011, we expect $23 million of unrealized losses, $15 million net of deferred taxes, to be reclassified as an adjustment to interest expense over the next 12 months. The foreign exchange risk deferred losses for the three and six months ended June 30, 2011 relate to cross-currency swap agreements on foreign currency denominated debt due in 2029 and foreign exchange contracts with initial maturities generally not exceeding one year and up to 18 months in certain circumstances. As of June 30, 2011, the fair value of the foreign exchange contracts related to NBCUniversal operations that were designated as cash flow hedges was a liability of $2 million.

Ineffectiveness related to our cash flow hedges was not material for the three and six months ended June 30, 2011 or 2010.

Nondesignated Derivative Financial Instruments

Amount of Gain (Loss) Recognized in Income


	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2011			2010			2011			2010
Operating Costs and Expenses:
Mark to market adjustments on foreign exchange contracts	$	5		$	—		$	(4	)	$	—
Investment Income (Loss):
Mark to market adjustments on derivative component of prepaid forward sale agreements		(183	)		127			(445	)		(139	)
Unrealized gains (losses) on securities underlying prepaid forward sale agreements		218			(126	)		522			215
Mark to market adjustments on derivative component of ZONES		1			1			5			2
Total gain (loss)	$	41		$	2		$	78		$	78

As of June 30, 2011, foreign exchange contracts related to NBCUniversal operations that were not designated had a total notional value of $1.2 billion. The notional amount is a measure of the activity related to our risk exposure and does not represent the amount of our exposure to credit loss or market loss, or reflect the gains or losses associated with the exposures and transactions that the foreign exchange contracts are intended to offset. The amounts ultimately realized upon settlement of these derivative financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the derivative financial instruments.

Note 10: Fair Value Measurements

The accounting guidance related to financial assets and financial liabilities (“financial instruments”) establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). Level 1 consists of financial instruments whose values are based on quoted market prices for identical financial instruments in an active market. Level 2 consists of financial instruments that are valued using models or other valuation methodologies. These models use inputs that are observable in the marketplace either directly or indirectly. Level 3 consists of financial instruments whose values are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Our financial instruments that are accounted for at fair value on a recurring basis are presented in the table below.

Recurring Fair Value Measures


	Fair Value as of June 30, 2011								December 31, 2010
(in millions)	Level 1		Level 2		Level 3		Total		Total
Assets
Trading securities	$	3,216	$	—	$	—	$	3,216	$	2,688
Available-for-sale securities		126		—		21		147		126
Equity warrants		—		—		1		1		1
Interest rate swap agreements		—		261		—		261		232
Foreign exchange contracts		—		8		—		8		—
	$	3,342	$	269	$	22	$	3,633	$	3,047
Liabilities
Derivative component of ZONES	$	—	$	3	$	—	$	3	$	8
Derivative component of prepaid forward sale agreements		—		1,473		—		1,473		1,021
Cross-currency swap agreements		—		23		—		23		29
Foreign exchange contracts		—		18		—		18		—
	$	—	$	1,517	$	—	$	1,517	$	1,058

Our financial instruments included in Level 3 primarily consist of available-for-sale securities that we acquired in connection with the NBCUniversal transaction. These investments are initially recorded at cost and remeasured to fair value on a recurring basis at the end of each period using unobservable inputs, which include company-specific fundamentals and other third-party transactions. We did not incur any other-than-temporary impairments for these investments in the periods presented. The changes in our Level 3 financial instruments were not material for the periods presented.

Note 11: Noncontrolling Interests

Certain of the subsidiaries that we consolidate are not wholly owned. Some of the agreements with the minority partners of these subsidiaries contain redemption features whereby interests held by the minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. If interests were to be redeemed under these agreements, we would generally be required to purchase the interest at fair value on the date of redemption. These interests are presented on the balance sheet outside of equity under the caption “Redeemable noncontrolling interests.” Noncontrolling interests that do not contain such redemption features are presented in equity.

In connection with the NBCUniversal transaction in January 2011, GE obtained a 49% indirect noncontrolling interest in the Comcast Content Business in exchange for a portion of our interest in NBCUniversal Holdings. The difference between the fair value received and the historical carrying value of the noncontrolling interest in the Comcast Content Business resulted in an increase of approximately $1.7 billion, net of taxes, to additional paid-in capital of Comcast Corporation.

GE’s 49% interest in NBCUniversal Holdings is recorded as a redeemable noncontrolling interest in our consolidated financial statements due to the redemption provisions discussed in Note 4, with an initial value based on fair value for the portion attributable to the net assets we acquired, and based on our historical cost for the portion attributable to the Comcast Content Business. GE’s redeemable noncontrolling interest is adjusted for its 49% interest in NBCUniversal Holdings’ and NBCUniversal’s earnings and changes in other comprehensive income, as well as for other capital transactions attributable to GE.

During the six months ended June 30, 2010, we acquired all of the noncontrolling interest of one of our technology ventures, which had a carrying value of approximately $20 million, for approximately $9 million. The difference between the amount paid and the carrying value of the noncontrolling interest resulted in an increase of approximately $11 million to additional paid-in capital of Comcast Corporation.

The table below presents the changes in equity resulting from net income attributable to Comcast Corporation and transfers from or to noncontrolling interests.


	Six Months Ended June 30
(in millions)	2011		2010
Net income attributable to Comcast Corporation	$	1,965	$	1,750
Transfers from (to) noncontrolling interests:
Increase in Comcast Corporation additional paid-in capital resulting from the sale of noncontrolling interest		1,692		11
Changes from net income attributable to Comcast Corporation and transfers from (to) noncontrolling interests	$	3,657	$	1,761

Note 12: Postretirement, Pension and Other Employee Benefit Plans

NBCUniversal Employee Benefit Plans

Following the close of the NBCUniversal transaction on January 28, 2011, NBCUniversal established new employee benefit plans for its U.S. employees, including defined benefit pension plans and postretirement medical and life insurance plans. Additionally, NBCUniversal assumed certain liabilities related to its obligation to reimburse GE for amounts paid by GE for specified employee benefits and insurance programs that GE will continue to administer. NBCUniversal’s defined benefit pension plans for NBCUniversal employees (the “qualified plan”) and executives (the “nonqualified plan”) provide a lifetime income benefit based on an individual’s length of service and related compensation. The nonqualified plan gives credit to eligible participants for service provided prior to the close of the NBCUniversal transaction to the extent that participants did not vest in a supplemental pension plan sponsored by GE. The qualified plan is closed to new participants. The postretirement medical and life insurance benefit plans that were established provide continued coverage to employees eligible to receive such benefits and give credit for service provided prior to the closing of the NBCUniversal transaction. Certain covered employees also retain the right, upon retirement, to elect to participate in corresponding plans sponsored by GE. To the extent our employees make such elections, NBCUniversal will reimburse GE for any amounts due. We did not, however, assume any obligation for benefits due to employees who were retired at the closing of the NBCUniversal transaction and were eligible to receive benefits under GE’s postretirement medical and life insurance programs.

NBCUniversal funds the nonqualified plan and the postretirement medical and life insurance plans on a pay-as-you-go basis. NBCUniversal expects to contribute approximately $8 million in 2011 to fund these benefits, which includes estimated payments to GE for NBCUniversal’s obligation associated with GE’s supplemental pension plan. NBCUniversal does not plan to fund its qualified defined benefit plan until the second quarter of 2012, at which time it expects to fund it in the amount of approximately $100 million.

The tables below present condensed information on the NBCUniversal pension and postretirement benefit plans.


	Three Months Ended June 30, 2011				Six Months Ended June 30, 2011
(in millions)	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Service cost	$	27	$	2	$	45	$	3
Interest cost	$	3	$	2	$	6	$	4


As of June 30, 2011 (in millions)	Pension Benefits			Postretirement Benefits
Benefit obligation	$	300		$	160
Discount rate		5.5% - 6.0	%		5.75	%

NBCUniversal also established a U.S. defined contribution 401(k) plan with 100% matching employer contributions on the first 3.5% of pay plus additional contributions based on employee classification and management discretion. The related expense for the three and six months ended June 30, 2011 was $12 million and $21 million, respectively.

NBCUniversal Other Employee Benefit Plans

Our condensed consolidated financial statements include the assets and liabilities of certain legacy NBCUniversal benefit plans, as well as the assets and liabilities for benefit plans of certain foreign subsidiaries. NBCUniversal also participates in various multiemployer pension plans covering some of their employees who are represented by labor unions. NBCUniversal makes periodic contributions to these plans in accordance with the terms of applicable collective bargaining agreements and laws, but does not sponsor or administer these plans.

Note 13: Share-Based Compensation

Our Board of Directors may grant share-based awards, in the form of stock options and RSUs, to certain employees and directors. Additionally, through our employee stock purchase plan, employees are able to purchase shares of Comcast Class A common stock at a discount through payroll deductions.

In March 2011, we granted 23.8 million stock options and 6.6 million RSUs related to our annual management grant program. The weighted-average fair values associated with these grants were $6.97 per stock option and $23.33 per RSU.

Recognized Share-Based Compensation Expense


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2011		2010		2011		2010
Stock options	$	34	$	25	$	56	$	53
Restricted share units		38		33		78		68
Employee stock purchase plan		3		2		6		6
Total	$	75	$	60	$	140	$	127

As of June 30, 2011, we had $373 million of unrecognized pretax compensation costs related to nonvested stock options and $380 million related to nonvested RSUs.

The employee cost associated with participation in the employee stock purchase plan was satisfied with payroll deductions of approximately $13 million and $28 million for the three and six months ended June 30, 2011, respectively. For the three and six months ended June 30, 2010, the employee cost was $11 million and $26 million, respectively.

Note 14: Supplemental Financial Information

Receivables


(in millions)	June 30, 2011		December 31, 2010
Receivables, gross	$	4,629	$	2,028
Less: Allowance for returns and customer incentives		285		—
Less: Allowance for doubtful accounts		188		173
Receivables, net	$	4,156	$	1,855

Allowances for returns and customer incentives are primarily attributable to our filmed entertainment segment.

The table below presents our unbilled receivables related to long-term licensing arrangements included in our consolidated balance sheet as of June 30, 2011. Current and noncurrent unbilled receivables are recorded in receivables, net and other noncurrent assets, net, respectively.


(in millions)	June 30, 2011
Current	$	173
Noncurrent, net of imputed interest		613
Total	$	786

Property and Equipment


(in millions)	June 30, 2011		December 31, 2010
Property and equipment, at cost	$	57,075	$	56,020
Acquired NBCUniversal property and equipment		2,049		—
Property and equipment, at cost		59,124		56,020
Less: Accumulated depreciation		34,505		32,505
Property and equipment, net	$	24,619	$	23,515

Accumulated Other Comprehensive Income (Loss)


(in millions)	June 30, 2011			June 30, 2010
Unrealized gains (losses) on marketable securities	$	22		$	22
Deferred gains (losses) on cash flow hedges		(113	)		(99	)
Unrecognized gains (losses) on employee benefit obligations		(20	)		(5	)
Currency translation adjustments		6			(4	)
Accumulated other comprehensive income (loss), net of deferred taxes	$	(105	)	$	(86	)

Operating Costs and Expenses


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2011		2010		2011		2010
Programming and production	$	4,327	$	2,252	$	7,602	$	4,366
Cable Communications technical labor		558		541		1,142		1,102
Cable Communications customer service		455		450		919		904
Advertising, marketing and promotion		1,107		594		2,092		1,140
Other		3,085		1,951		5,839		3,913
Operating costs and expenses (excluding depreciation and amortization)	$	9,532	$	5,788	$	17,594	$	11,425

Operating costs and expenses include amortization of film and television costs but exclude all other intangible amortization.

Net Cash Provided by Operating Activities


	Six Months Ended June 30
(in millions)	2011			2010
Net income from consolidated operations	$	2,406		$	1,765
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
Depreciation and amortization		3,705			3,289
Amortization of film and television costs		1,299			53
Share-based compensation		174			153
Noncash interest expense (income), net		78			69
Equity in net (income) losses of investees, net		—			58
Net (gain) loss on investment activity and other		63			(11	)
Deferred income taxes		693			(25	)
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Change in receivables, net		277			(121	)
Change in film and television costs		(1,678	)		(48	)
Change in accounts payable and accrued expenses related to trade creditors		(154	)		2
Change in other operating assets and liabilities		93			148
Net cash provided by operating activities	$	6,956		$	5,332

Cash Payments for Interest and Income Taxes


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2011		2010		2011		2010
Interest	$	540	$	354	$	1,197	$	969
Income taxes	$	496	$	1,080	$	570	$	1,126

Noncash Investing and Financing Activities

During the six months ended June 30, 2011, we:

•

acquired 51% of NBCUniversal Holdings for cash and a 49% interest in the Comcast Content Business on January 28, 2011 (see Note 4 for additional information on the NBCUniversal transaction)

•

acquired approximately $399 million of property and equipment and software that was accrued but unpaid, which is a noncash investing activity

•

recorded a liability of approximately $309 million for a quarterly cash dividend of $0.1125 per common share paid in July 2011, which is a noncash financing activity

Note 15: Receivables Monetization

Through January 27, 2011, NBCUniversal monetized its trade accounts receivable through two programs established with GE and various GE subsidiaries. As a result of the closing of the NBCUniversal transaction on January 28, 2011, NBCUniversal terminated those programs and established new third-party monetization programs with a syndicate of banks, of which the primary relationship is with General Electric Capital Corporation, a subsidiary of GE.

We account for receivables monetized through these programs as sales in accordance with the appropriate accounting guidance. We retain limited interests in the assets sold in the form of a receivable, which is funded by residual cash flows after the senior interests have been fully paid. The retained interest is recorded at its initial fair value, which includes a provision for estimated losses we expect to incur related to these interests. The accounts receivable we sold that underlie the retained interests are generally short-term in nature and, therefore, the fair value of the retained interests approximated their carrying value as of June 30, 2011.

For the majority of the receivables monetized under the securitization programs, an affiliate of GE is responsible for servicing the receivables and remitting collections to the owner and the lenders. We perform this service on the affiliate’s behalf for a fee that is equal to the prevailing market rate for such services. As a result, no servicing asset or liability has been recorded in our condensed consolidated balance sheet as of June 30, 2011. The sub-servicing fees are a component of net loss on sale presented in the table below, which is included in other income (expense), net.

Effect on Income From Services and Cash Flows on Transfers


(in millions)	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Effect on income from services
Net loss on sale	$	(9	)	$	(17	)
Cash flows on transfers
Net proceeds on new transfers	$	50		$	(374	)

Receivables Monetized and Retained Interest


(in millions)	June 30, 2011
Monetized receivables outstanding	$	870
Retained interest	$	223

In addition to the amounts presented above, we had $671 million payable to our securitization programs as of June 30, 2011. This amount represents cash received for monetized receivables not yet remitted to the program as of the balance sheet date and is recorded to accounts payable and accrued expenses related to trade creditors.

Note 16: Commitments and Contingencies

NBCUniversal Obligations, Commitments and Guarantees

NBCUniversal enters into long-term commitments with third parties in the ordinary course of business, including commitments to acquire film and television programming, take-or-pay creative talent and employment agreements, and various other television commitments. Many of NBCUniversal’s employees, including writers, directors, actors, technical and production personnel and others, as well as some of its on-air and creative talent, are covered by collective bargaining agreements or works councils. Approximately 38 collective bargaining agreements covering approximately 2,800 of NBCUniversal’s full-time, part-time and full-time equivalent freelance employees on its payroll have expired or are scheduled to expire by the end of 2011.

NBCUniversal has previously provided guarantees in the ordinary course of business, including the guarantee of a loan of one of NBCUniversal’s partners in one of its equity method investments and an obligation of the equity method investment’s consulting agreement with a third party. Following NBCUniversal’s acquisition of the remaining 50% of UCDP that it did not already own on July 1, 2011, the loan guarantee was terminated and the consulting agreement guarantee was effectively terminated because it now represents a guarantee of our own performance.

Station Venture

NBCUniversal owns a 79.62% equity interest and a 50% voting interest in Station Venture Holdings, LLC (“Station Venture”), a variable interest entity. The remaining equity interests in Station Venture are held by LIN TV, Corp. (“LIN TV”). Station Venture holds an indirect interest in the NBC Network affiliated local television stations in Dallas, Texas and San Diego, California through its ownership interests in Station Venture Operations, LP (“Station LP”), a less than wholly owned subsidiary of NBCUniversal. Station Venture is the obligor on an $816 million senior secured note that is due in 2023 to General Electric Capital Corporation, a subsidiary of GE, as servicer. The note is nonrecourse to NBCUniversal, guaranteed by LIN TV and collateralized by substantially all of the assets of Station Venture and Station LP. In connection with the closing of the NBCUniversal transaction, GE has indemnified NBCUniversal for all liabilities NBCUniversal may incur as a result of any credit support, risk of loss or similar arrangement related to the senior secured note in existence prior to the closing of the NBCUniversal transaction on January 28, 2011. We are not the primary beneficiary of, and accordingly do not consolidate, Station Venture. Our equity method investment in Station Venture was assigned no value in the preliminary allocation of purchase price for the NBCUniversal transaction, which is also the carrying value of our investment as of June 30, 2011. Because the assets of Station LP serve as collateral for Station Venture’s $816 million senior secured note, we have recorded a $350 million guarantee liability in our preliminary allocation of purchase price, representing the fair value of this guarantee at January 28, 2011, which was determined by the value of the assets that collateralize the note.

Contingencies

Antitrust Cases

We are defendants in two purported class actions originally filed in December 2003 in the United States District Courts for the District of Massachusetts and the Eastern District of Pennsylvania. The potential class in the Massachusetts case, which has been transferred to the Eastern District of Pennsylvania, is our customer base in the “Boston Cluster” area, and the potential class in the Pennsylvania case is our customer base in the “Philadelphia and Chicago Clusters,” as those terms are defined in the complaints. In each case, the plaintiffs allege that certain customer exchange transactions with other cable providers resulted in unlawful horizontal market restraints in those areas and seek damages under antitrust statutes, including treble damages.

Classes of Philadelphia Cluster and Chicago Cluster customers were certified in May 2007 and October 2007, respectively. In March 2009, as a result of a Third Circuit Court of Appeals decision clarifying the standards for class certification, the order certifying the Philadelphia Cluster class was vacated without prejudice to the plaintiffs filing a new motion. In January 2010, in its decision on the plaintiffs’ new motion, the Eastern District of Pennsylvania certified a class subject to certain limitations. In June 2010, the Third Circuit Court of Appeals granted our petition for an interlocutory appeal from the class certification decision. Oral agreement on the appeal was held in January 2011. In March 2010, we moved for summary judgment dismissing all of the plaintiffs’ claims in the Philadelphia Cluster; the summary judgment motion is stayed pending the class certification appeal. The plaintiffs’ claims concerning the other two clusters are stayed pending determination of the Philadelphia Cluster claims.

We also are among the defendants in a purported class action filed in the United States District Court for the Central District of California in September 2007. The potential class is comprised of all persons residing in the United States who have subscribed to an expanded basic level of video service provided by one of the defendants. The plaintiffs allege that the defendants who produce video programming have entered into agreements with the defendants who distribute video programming via cable and satellite (including us), which preclude the distributor defendants from reselling channels to customers on an “unbundled” basis in violation of federal antitrust laws. The plaintiffs seek treble damages and injunctive relief requiring each distributor defendant to resell certain channels to its customers on an “unbundled” basis. In October 2009, the Central District of California issued an order dismissing the plaintiffs’ complaint with prejudice. In June 2011, a panel of the Ninth Circuit Court of Appeals affirmed the District Court’s order. In July 2011, the plaintiffs filed a petition for a panel rehearing and a rehearing en banc.

In addition, we are the defendant in 22 purported class actions filed in federal district courts throughout the country. All of these actions have been consolidated by the Judicial Panel on Multidistrict Litigation in the United States District Court for the Eastern District of Pennsylvania for pre-trial proceedings. In a consolidated complaint filed in November 2009 on behalf of all plaintiffs in the multidistrict litigation, the plaintiffs allege that we improperly “tie” the rental of set-top boxes to the provision of premium cable services in violation of Section 1 of the Sherman Antitrust Act, various state antitrust laws and unfair/deceptive trade practices acts in California, Illinois and Alabama. The plaintiffs also allege a claim for unjust enrichment and seek relief on behalf of a nationwide class of our premium cable customers and on behalf of subclasses consisting of premium cable customers from California, Alabama, Illinois, Pennsylvania and Washington. In January 2010, we moved to compel arbitration of the plaintiffs’ claims for unjust enrichment and violations of the unfair/deceptive trade practices acts of Illinois and Alabama. In September 2010, the plaintiffs filed an amended complaint alleging violations of additional state antitrust laws and unfair/deceptive trade practices acts on behalf of new subclasses in Connecticut, Florida, Minnesota, Missouri, New Jersey, New Mexico and West Virginia. In the amended complaint, plaintiffs omitted their unjust enrichment claim, as well as their state law claims on behalf of the Alabama, Illinois and Pennsylvania subclasses. In June 2011, the plaintiffs filed another amended complaint alleging only violations of Section 1 of the Sherman Antitrust Act, antitrust law in Washington and unfair/deceptive trade practices acts in California and Washington. The plaintiffs seek relief on behalf of a nationwide class of our premium cable customers and on behalf of subclasses consisting of premium cable customers from California and Washington. In July 2011, we moved to compel arbitration of most of the plaintiffs’ claims and to stay the remaining claims pending arbitration.

The West Virginia Attorney General also filed a complaint in West Virginia state court in July 2009 alleging that we improperly “tie” the rental of set-top boxes to the provision of premium cable services in violation of the West Virginia Antitrust Act and the West Virginia Consumer Credit and Protection Act. The Attorney General also alleges a claim for unjust enrichment/restitution. We removed the case to the United States District Court for West Virginia, and it was subsequently transferred to the United States District Court for the Eastern District of Pennsylvania and consolidated with the multidistrict litigation described above. In March 2010, the Eastern District of Pennsylvania denied the Attorney General’s motion to remand the case back to West Virginia state court. In June 2010, the Attorney General moved to sever and remand the portion of the claims seeking civil penalties and injunctive relief back to West Virginia state court. We filed a brief in opposition to the motion in July 2010.

We believe the claims in each of the pending actions described above in this item are without merit and intend to defend the actions vigorously. We cannot predict the outcome of any of the actions described above, including a range of possible loss, or how the final resolution of any such actions would impact our results of operations or cash flows for any one period or our consolidated financial position. Nevertheless, the final disposition of any of the above actions is not expected to have a material adverse effect on our consolidated financial position, but could possibly be material to our consolidated results of operations or cash flows for any one period.

Other

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. We are also 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 financial position, results of operations or cash flows, any litigation resulting from any such legal proceedings or claims could be time consuming, costly and injure our reputation.

Note 17: Financial Data by Business Segment

Following the NBCUniversal transaction, we present our operations in five reportable segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. The Comcast Content Business is presented with NBCUniversal’s businesses in the Cable Networks segment. The businesses of Comcast Interactive Media (previously presented in Corporate and Other) that were not contributed to NBCUniversal are included in the Cable Communications segment. We have recast our segment presentation for the three and six months ended June 30, 2010 in order to reflect our current reportable segments. See Note 4 for additional information on the NBCUniversal transaction.

In evaluating the profitability of our operating segments, the components of net income (loss) below operating income (loss) before depreciation and amortization are not separately evaluated by our management. Our financial data by business segment is presented in the table below.


	Three Months Ended June 30, 2011
(in millions)	Revenue⁽ⁱ⁾			Operating Income (Loss) Before Depreciation and Amortization^(j)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures
Cable Communications^(a)	$	9,341		$	3,886		$	1,591	$	2,295		$	1,181
NBCUniversal
Cable Networks^(b)		2,173			846			187		659			19
Broadcast Television^(c)		1,695			190			9		181			12
Filmed Entertainment^(d)		1,254			27			5		22			1
Theme Parks^(e)		147			119			9		110			28
Headquarters and Other^(f)		14			(129	)		44		(173	)		25
Eliminations^(g)		(104	)		(52	)		—		(52	)		—
NBCUniversal		5,179			1,001			254		747			85
Corporate and Other^(h)		128			(87	)		16		(103	)		5
Eliminations^(g)		(315	)		1			2		(1	)		—
Comcast Consolidated	$	14,333		$	4,801		$	1,863	$	2,938		$	1,271


	Three Months Ended June 30, 2010
(in millions)	Revenue⁽ⁱ⁾			Operating Income (Loss) Before Depreciation and Amortization^(j)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures
Cable Communications^(a)	$	8,845		$	3,640		$	1,583	$	2,057		$	1,119
Cable Networks^(b)		717			210			68		142			12
Corporate and Other^(h)		35			(113	)		7		(120	)		7
Eliminations^(g)		(72	)		—			1		(1	)		—
Comcast Consolidated	$	9,525		$	3,737		$	1,659	$	2,078		$	1,138


	Six Months Ended June 30, 2011
(in millions)	Revenue⁽ⁱ⁾			Operating Income (Loss) Before Depreciation and Amortization^(j)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures		Assets
Cable Communications^(a)	$	18,425		$	7,635		$	3,212	$	4,423		$	2,234	$	116,384
NBCUniversal
Cable Networks^(b)		3,805			1,511			340		1,171			31		29,677
Broadcast Television^(c)		2,583			225			30		195			17		6,940
Filmed Entertainment^(d)		1,876			(116	)		9		(125	)		2		3,828
Theme Parks^(e)		215			152			15		137			40		2,446
Headquarters and Other^(f)		25			(249	)		66		(315	)		42		4,891
Eliminations^(g)		(182	)		(64	)		—		(64	)		—		(553	)
NBCUniversal		8,322			1,459			460		999			132		47,229
Corporate and Other^(h)		316			(228	)		32		(260	)		11		6,732
Eliminations^(g)		(602	)		1			1		—			—		(15,563	)
Comcast Consolidated	$	26,461		$	8,867		$	3,705	$	5,162		$	2,377	$	154,782


	Six Months Ended June 30, 2010
(in millions)	Revenue⁽ⁱ⁾			Operating Income (Loss) Before Depreciation and Amortization^(j)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures
Cable Communications^(a)	$	17,428		$	7,120		$	3,133	$	3,987		$	2,032
Cable Networks^(b)		1,355			398			141		257			22
Corporate and Other^(h)		106			(217	)		14		(231	)		9
Eliminations^(g)		(162	)		1			1		—			—
Comcast Consolidated	$	18,727		$	7,302		$	3,289	$	4,013		$	2,063

(a)	Our Cable Communications segment consists primarily of our cable services business and the businesses of Comcast Interactive Media that were not contributed to NBCUniversal.

For the three and six months ended June 30, 2011 and 2010, Cable Communications segment revenue was derived from the following sources:


	Three Months Ended June 30						Six Months Ended June 30
	2011			2010			2011			2010
Video		52.9	%		55.2	%		53.4	%		55.6	%
High-speed Internet		23.4	%		22.4	%		23.3	%		22.5	%
Phone		9.4	%		9.3	%		9.4	%		9.3	%
Advertising		5.5	%		5.6	%		5.2	%		5.2	%
Business services		4.6	%		3.5	%		4.5	%		3.3	%
Other		4.2	%		4.0	%		4.2	%		4.1	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

Subscription revenue received from customers who purchase bundled services at a discounted rate is allocated proportionally to each service based on the individual service’s price on a stand-alone basis. For both the three and six months ended June 30, 2011 and 2010, approximately 2.8% of Cable Communications revenue was derived from franchise and other regulatory fees.

(b)	Our Cable Networks segment consists primarily of the historical NBCUniversal national cable networks, international entertainment and news and information networks, our cable television production operations and certain digital media properties, and the Comcast Content Business.

(c)	Our Broadcast Television segment consists primarily of the NBC Network and its owned NBC affiliated local television stations, the Telemundo Network and its owned Telemundo affiliated local television stations, our television production operations, and related digital media properties.

(d)	Our Filmed Entertainment segment represents the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television and other distribution platforms.

(e)

Our Theme Parks segment consists primarily of Universal Studios Hollywood theme park, Wet ‘n Wild water park, and fees for intellectual property licenses and other services from third parties that own and operate Universal Studios Japan and Universal Studios Singapore, as well as our 50% equity interest in UCDP and related fees. See Note 18 for additional information on UCDP.

(f)	NBCUniversal Headquarters and Other activities include costs associated with overhead and allocations, employee benefits, and other initiatives.

(g)	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 and Broadcast Television segments generate revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount

•

our Cable Communications segment receives incentives offered by our Cable Networks segment in connection with its distribution of the Cable Networks’ content that are recorded as a reduction to programming expenses

•

our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment

•

our Filmed Entertainment and Broadcast Television segments generate revenue by licensing content to our Cable Networks segment

(h)	Corporate and Other activities include Comcast Spectacor, corporate activities and all other businesses not presented in our reportable segments.

(i)

Non-U.S. revenue, primarily in Europe and Asia, for the three and six months ended June 30, 2011 was approximately $1.1 billion and $1.7 billion, respectively. Non-U.S. revenue was not significant for the three and six months ended June 30, 2010. No single customer accounted for a significant amount of our revenue in any period.

(j)

We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses from the sale of assets, if any, to measure the profit or loss of our operating segments. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital structure or investment activities except in our Theme Parks segment, where we also include the equity in income (loss) of investees in measuring operating income (loss) before depreciation and amortization. This amount is not included when we measure total NBCUniversal and our consolidated operating income (loss) before depreciation and amortization. We use this measure to evaluate our consolidated operating performance, the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income (loss) attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity reported in accordance with GAAP.

Note 18: Subsequent Events

Universal City Development Partners

On July 1, 2011, NBCUniversal completed the acquisition of the remaining 50% equity interest in UCDP that it did not already own for $1.025 billion, subject to various purchase price adjustments. As a result, UCDP became a wholly owned consolidated subsidiary of NBCUniversal. For the three months ended March 31, 2011 and the year ended December 31, 2010, UCDP had revenue of $309 million and $1.1 billion, respectively. As of March 31, 2011, UCDP had total assets of $2.1 billion and long-term debt of $1.4 billion. NBCUniversal funded this acquisition with cash on hand, borrowings under the NBCUniversal revolving credit facility and a $250 million one-year intercompany note due to us, which is eliminated in our consolidated financial statements. Additional borrowings under the NBCUniversal revolving credit facility, along with cash on hand at UCDP, were used to refinance and terminate UCDP’s existing term loan immediately following the acquisition. Following these transactions, NBCUniversal had $750 million outstanding under its revolving credit facility and UCDP had long-term debt, before the application of acquisition accounting, of approximately $650 million, which primarily consists of senior notes and senior subordinated notes.

On August 1, 2011, UCDP completed its redemption of $140 million aggregate principal amount of its 8.875% senior notes due 2015 and $79 million aggregate principal amount of its 10.875% senior subordinated notes due 2016. Following the redemption, $260 million principal amount of UCDP’s senior notes and $146 million of UCDP’s senior subordinated notes remain outstanding.

Preliminary Purchase Price Allocation and Unaudited Pro Forma Information

Because we now control UCDP, we will apply acquisition accounting and its results of operations will be included in our consolidated results of operations following the acquisition date. Due to the limited time since the acquisition date, the initial accounting for the business transaction is incomplete at this time. As a result, we are unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired and resulting from the transaction. Also, because the initial accounting for the transaction is incomplete, we are unable to provide the supplemental pro forma revenue and earnings of the combined entity. We will include this information in our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2011.

Note 19: Condensed Consolidating Financial Information

Comcast Corporation and four of our 100% owned cable holding company subsidiaries, Comcast Cable Communications, LLC (“CCCL”), Comcast MO Group, Inc. (“Comcast MO Group”), Comcast Cable Holdings, LLC (“CCH”) and Comcast MO of Delaware, LLC (“Comcast MO of Delaware”), have fully and unconditionally guaranteed each other’s debt securities. Comcast MO Group, CCH and Comcast MO of Delaware are collectively referred to as the “Combined CCHMO Parents.”

Comcast Corporation provides an unconditional subordinated guarantee of the $185 million principal amount currently outstanding of Comcast Holdings’ ZONES due October 2029 and the $202 million principal amount currently outstanding of Comcast Holdings’ 10⁵/8% senior subordinated debentures due 2012. Comcast Corporation does not guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029.

As a result of the NBCUniversal transaction on January 28, 2011, our investments in NBCUniversal Holdings are held by the Comcast Corporation Parent (“Comcast Parent”) and Comcast Holdings. Certain entities of the Comcast Content Business were subsidiaries of Comcast Holdings. Since these entities were contributed to NBCUniversal Holdings, they are included with the Comcast Parent’s investment in NBCUniversal Holdings. However, the operations of these businesses are presented in the nonguarantor subsidiaries column. Our condensed consolidating financial information is presented in the tables below.

Condensed Consolidating Balance Sheet

June 30, 2011


(in millions)	Comcast Parent		CCCL Parent		Combined CCHMO Parents		Comcast Holdings		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	1,997	$	—		$	1,997
Receivables, net		—		—		—		—		4,156		—			4,156
Programming rights		—		—		—		—		955		—			955
Other current assets		200		2		1		—		1,039		—			1,242
Total current assets		200		2		1		—		8,147		—			8,350
Film and television costs		—		—		—		—		5,106		—			5,106
Investments		—		—		—		—		10,829		—			10,829
Investments in and amounts due from subsidiaries eliminated upon consolidation		71,363		86,478		44,048		85,295		12,928		(300,112	)		—
Property and equipment, net		268		—		—		—		24,351		—			24,619
Franchise rights		—		—		—		—		59,442		—			59,442
Goodwill		—		—		—		—		26,919		—			26,919
Other intangible assets, net		9		—		—		—		17,382		—			17,391
Other noncurrent assets, net		1,095		45		6		148		1,643		(811	)		2,126
Total assets	$	72,935	$	86,525	$	44,055	$	85,443	$	166,747	$	(300,923	)	$	154,782

Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	13	$	—	$	—	$	—	$	4,825	$	—		$	4,838
Accrued participations and residuals		—		—		—		—		1,235		—			1,235
Accrued expenses and other current liabilities		1,024		288		74		272		3,616		—			5,274
Current portion of long-term debt		750		—		561		—		39		—			1,350
Total current liabilities		1,787		288		635		272		9,715		—			12,697
Long-term debt, less current portion		22,797		3,964		1,770		307		9,371		—			38,209
Deferred income taxes		—		—		—		717		29,428		(668	)		29,477
Other noncurrent liabilities		1,708		—		—		—		10,420		(143	)		11,985
Redeemable noncontrolling interests		—		—		—		—		15,509		—			15,509
Equity:
Common stock		32		—		—		—		—		—			32
Other shareholders’ equity		46,611		82,273		41,650		84,147		92,042		(300,112	)		46,611
Total Comcast Corporation shareholders’ equity		46,643		82,273		41,650		84,147		92,042		(300,112	)		46,643
Noncontrolling interests		—		—		—		—		262		—			262
Total equity		46,643		82,273		41,650		84,147		92,304		(300,112	)		46,905
Total liabilities and equity	$	72,935	$	86,525	$	44,055	$	85,443	$	166,747	$	(300,923	)	$	154,782

Condensed Consolidating Balance Sheet

December 31, 2010


(in millions)	Comcast Parent		CCCL Parent		Combined CCHMO Parents		Comcast Holdings		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	5,984	$	—		$	5,984
Receivables, net		—		—		—		—		1,855		—			1,855
Programming rights		—		—		—		—		122		—			122
Other current assets		162		—		—		—		763		—			925
Total current assets		162		—		—		—		8,724		—			8,886
Film and television costs										460					460
Investments		—		—		—		—		6,670		—			6,670
Investments in and amounts due from subsidiaries eliminated upon consolidation		68,987		90,076		52,652		72,629		12,339		(296,683	)		—
Property and equipment, net		278		—		—		—		23,237		—			23,515
Franchise rights		—		—		—		—		59,442		—			59,442
Goodwill		—		—		—		—		14,958		—			14,958
Other intangible assets, net		10		—		—		—		3,421		—			3,431
Other noncurrent assets, net		1,128		45		—		148		670		(819	)		1,172
Total assets	$	70,565	$	90,121	$	52,652	$	72,777	$	129,921	$	(297,502	)	$	118,534

Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	6	$	3	$	—	$	—	$	3,282	$	—		$	3,291
Accrued expenses and other current liabilities		1,038		187		74		266		1,578		—			3,143
Current portion of long-term debt		755		1,000		—		—		45		—			1,800
Total current liabilities		1,799		1,190		74		266		4,905		—			8,234
Long-term debt, less current portion		22,754		3,963		2,339		310		249		—			29,615
Deferred income taxes		—		—		—		704		28,218		(676	)		28,246
Other noncurrent liabilities		1,658		—		—		—		6,347		(143	)		7,862
Redeemable noncontrolling interests		—		—		—		—		143		—			143
Equity:
Common stock		32		—		—		—		—		—			32
Other shareholders’ equity		44,322		84,968		50,239		71,497		89,979		(296,683	)		44,322
Total Comcast Corporation shareholders’ equity		44,354		84,968		50,239		71,497		89,979		(296,683	)		44,354
Noncontrolling interests		—		—		—		—		80		—			80
Total equity		44,354		84,968		50,239		71,497		90,059		(296,683	)		44,434
Total liabilities and equity	$	70,565	$	90,121	$	52,652	$	72,777	$	129,921	$	(297,502	)	$	118,534

Condensed Consolidating Statement of Income

For the Three Months Ended June 30, 2011


(in millions)	Comcast Parent			CCCL Parent			Combined CCHMO Parents			Comcast Holdings			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	14,333		$	—		$	14,333
Management fee revenue		200			195			119			—			—			(514	)		—
		200			195			119			—			14,333			(514	)		14,333
Costs and Expenses:
Operating costs and expenses		89			195			119			—			9,643			(514	)		9,532
Depreciation		7			—			—			—			1,471			—			1,478
Amortization		1			—			—			—			384			—			385
		97			195			119			—			11,498			(514	)		11,395
Operating income (loss)		103			—			—			—			2,835			—			2,938
Other Income (Expense):
Interest expense		(358	)		(82	)		(43	)		(8	)		(130	)		—			(621	)
Investment income (loss), net		2			—			—			1			58			—			61
Equity in net income (losses) of investees, net		1,186			1,336			805			1,424			37			(4,751	)		37
Other income (expense), net		1			—			—			—			(35	)		—			(34	)
		831			1,254			762			1,417			(70	)		(4,751	)		(557	)
Income (loss) before income taxes		934			1,254			762			1,417			2,765			(4,751	)		2,381
Income tax (expense) benefit		88			28			15			2			(1,147	)		—			(1,014	)
Net income (loss) from consolidated operations		1,022			1,282			777			1,419			1,618			(4,751	)		1,367
Net (income) loss attributable to noncontrolling interests		—			—			—			—			(345	)		—			(345	)
Net income (loss) attributable to Comcast Corporation	$	1,022		$	1,282		$	777		$	1,419		$	1,273		$	(4,751	)	$	1,022

Condensed Consolidating Statement of Income

For the Three Months Ended June 30, 2010


(in millions)	Comcast Parent		CCCL Parent		Combined CCHMO Parents		Comcast Holdings		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—	$	—	$	—	$	—	$	9,525	$	—		$	9,525
Management fee revenue		202		120		112		—		—		(434	)		—
		202		120		112		—		9,525		(434	)		9,525
Costs and Expenses:
Operating costs and expenses		119		120		112		15		5,856		(434	)		5,788
Depreciation		7		—		—		—		1,404		—			1,411
Amortization		—		—		—		—		248		—			248
		126		120		112		15		7,508

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