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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 September 30, 2015

OR

 

¨	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		Registrant; State of Incorporation; Address and Telephone Number		I.R.S. Employer Identification No.
001-32871		COMCAST CORPORATION		27-0000798
		PENNSYLVANIA One Comcast Center Philadelphia, PA 19103-2838 (215) 286-1700
001-36438		NBCUNIVERSAL MEDIA, LLC		14-1682529
		DELAWARE 30 Rockefeller Plaza New York, NY 10112-0015 (212) 664-4444

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Comcast Corporation		Yes x		No ¨
NBCUniversal Media, LLC		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).

 

Comcast Corporation		Yes x		No ¨
NBCUniversal Media, LLC		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.

 

Comcast Corporation

Large accelerated filer

x

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

¨

NBCUniversal Media, LLC

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

Smaller reporting company

¨

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

 

Comcast Corporation		Yes ¨		No x
NBCUniversal Media, LLC		Yes ¨		No x

Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practical date:

As of September 30, 2015, there were 2,100,458,460 shares of Comcast Corporation Class A common stock, 347,326,688 shares of Comcast Corporation Class A Special common stock and 9,444,375 shares of Comcast Corporation Class B common stock outstanding.

Not applicable for NBCUniversal Media, LLC.

NBCUniversal Media, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.

 

 

 

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TABLE OF CONTENTS

				Page Number
PART I. FINANCIAL INFORMATION
Item 1.		Comcast Corporation Financial Statements			1
		Condensed Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014 (Unaudited)			1
		Condensed Consolidated Statement of Income for the Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)			2
		Condensed Consolidated Statement of Comprehensive Income for the Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)			3
		Condensed Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2015 and 2014 (Unaudited)			4
		Condensed Consolidated Statement of Changes in Equity for the Nine Months Ended September 30, 2015 and 2014 (Unaudited)			5
		Notes to Condensed Consolidated Financial Statements (Unaudited)			6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			25
Item 3.		Quantitative and Qualitative Disclosures About Market Risk			42
Item 4.		Controls and Procedures			42
PART II. OTHER INFORMATION
Item 1.		Legal Proceedings			43
Item 1A.		Risk Factors			43
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds			44
Item 5.		Other Information			45
Item 6.		Exhibits			46
SIGNATURES					47
NBCUniversal Media, LLC Financial Statements					48

 

 

Explanatory Note

This Quarterly Report on Form 10-Q is a combined report being filed separately by Comcast Corporation (“Comcast”) and NBCUniversal Media, LLC (“NBCUniversal”). Comcast owns all of the common equity interests in NBCUniversal, and NBCUniversal meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing its information within this Form 10-Q with the reduced disclosure format. Each of Comcast and NBCUniversal is filing on its own behalf the information contained in this report that relates to itself, and neither company makes any representation as to information relating to the other company. Where information or an explanation is provided that is substantially the same for each company, such information or explanation has been combined in this report. Where information or an explanation is not substantially the same for each company, separate information and explanation has been provided. In addition, separate condensed consolidated financial statements for each company, along with notes to the condensed consolidated financial statements, are included in this report. Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, including NBCUniversal and its consolidated subsidiaries, as “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” and NBCUniversal, LLC as “NBCUniversal Holdings.”

This Quarterly Report on Form 10-Q is for the three and nine months ended September 30, 2015. 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.

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 these statements are only our predictions. In evaluating these 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 businesses and results of operations could be adversely affected if we do not compete effectively

 

•

changes in consumer behavior driven by new products and services may adversely affect our businesses and challenge existing business models

 

•

a decline in advertising expenditures or changes in advertising markets could negatively impact our businesses

 

•

our businesses depend on keeping pace with technological developments

 

•

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

 

•

changes to existing statutes, rules, regulations, or interpretations thereof, or adoption of new ones, could have an adverse effect on our businesses

 

•

programming expenses for our video services are increasing, which could adversely affect our Cable Communications segment’s businesses

 

•

NBCUniversal’s success depends on consumer acceptance of its content and its businesses may be adversely affected if its content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase

 

•

the loss of NBCUniversal’s programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect its businesses

 

•

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

 

•

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

 

•

weak economic conditions may have a negative impact on our businesses

 

•

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

 

•

acquisitions and other strategic transactions present many risks, and we may not realize the financial and strategic goals that were contemplated at the time of any transaction

 

•

labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect our businesses

 

•

the loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses

 

•

we face risks relating to doing business internationally that could adversely affect our businesses

 

•

our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company through his beneficial ownership of our Class B common stock

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PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Comcast Corporation

Condensed Consolidated Balance Sheet

(Unaudited)

 

(in millions, except share data)		September 30, 2015				December 31, 2014
Assets
Current Assets:
Cash and cash equivalents		$	1,893			$	3,910
Investments			137				602
Receivables, net			6,527				6,321
Programming rights			1,130				839
Other current assets			1,814				1,859
Total current assets			11,501				13,531
Film and television costs			5,712				5,727
Investments			3,323				3,135
Property and equipment, net of accumulated depreciation of $47,460 and $45,410			32,170				30,953
Franchise rights			59,364				59,364
Goodwill			27,492				27,316
Other intangible assets, net of accumulated amortization of $11,251 and $10,170			16,896				16,980
Other noncurrent assets, net			2,500				2,333
Total assets		$	158,958			$	159,339
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors		$	5,996			$	5,638
Accrued participations and residuals			1,491				1,347
Deferred revenue			1,265				915
Accrued expenses and other current liabilities			5,455				5,293
Current portion of long-term debt			3,152				4,217
Total current liabilities			17,359				17,410
Long-term debt, less current portion			44,605				44,017
Deferred income taxes			33,131				32,959
Other noncurrent liabilities			10,694				10,819
Commitments and contingencies (Note 11)
Redeemable noncontrolling interests and redeemable subsidiary preferred stock			1,204				1,066
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, 2,465,919,210 and 2,496,598,612; outstanding, 2,100,458,460 and 2,131,137,862			25				25
Class A Special common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 418,261,452 and 471,419,601; outstanding, 347,326,688 and 400,484,837			4				5
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375			—				—
Additional paid-in capital			38,516				38,805
Retained earnings			20,883				21,539
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)			(195	)			(146	)
Total Comcast Corporation shareholders’ equity			51,716				52,711
Noncontrolling interests			249				357
Total equity			51,965				53,068
Total liabilities and equity		$	158,958			$	159,339

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Income

(Unaudited)

 

		Three Months Ended September 30								Nine Months Ended September 30
(in millions, except per share data)		2015				2014				2015				2014
Revenue		$	18,669			$	16,791			$	55,265			$	51,043
Costs and Expenses:
Programming and production			5,582				4,772				16,714				15,554
Other operating and administrative			5,394				5,017				15,753				14,688
Advertising, marketing and promotion			1,509				1,298				4,392				3,755
Depreciation			1,697				1,539				5,005				4,707
Amortization			486				420				1,405				1,222
			14,668				13,046				43,269				39,926
Operating income			4,001				3,745				11,996				11,117
Other Income (Expense):
Interest expense			(659	)			(663	)			(2,028	)			(1,953	)
Investment income (loss), net			(26	)			21				24				254
Equity in net income (losses) of investees, net			1				33				(202	)			87
Other income (expense), net			(53	)			(96	)			364				(150	)
			(737	)			(705	)			(1,842	)			(1,762	)
Income before income taxes			3,264				3,040				10,154				9,355
Income tax expense			(1,223	)			(407	)			(3,797	)			(2,759	)
Net income			2,041				2,633				6,357				6,596
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock			(45	)			(41	)			(165	)			(141	)
Net income attributable to Comcast Corporation		$	1,996			$	2,592			$	6,192			$	6,455
Basic earnings per common share attributable to Comcast Corporation shareholders		$	0.81			$	1.00			$	2.48			$	2.49
Diluted earnings per common share attributable to Comcast Corporation shareholders		$	0.80			$	0.99			$	2.45			$	2.46
Dividends declared per common share		$	0.25			$	0.225			$	0.75			$	0.675

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

 

		Three Months Ended September 30								Nine Months Ended September 30
(in millions)		2015				2014				2015				2014
Net income		$	2,041			$	2,633			$	6,357			$	6,596
Unrealized gains (losses) on marketable securities, net of deferred taxes of $—, $—, $— and $(19)			1				—				1				34
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $30, $2, $40 and $1			(50	)			(4	)			(67	)			(2	)
Amounts reclassified to net income:
Realized (gains) losses on marketable securities, net of deferred taxes of $1, $—, $1 and $58			(1	)			(1	)			(1	)			(98	)
Realized (gains) losses on cash flow hedges, net of deferred taxes of $(20), $(22), $(26) and $(10)			32				38				42				18
Employee benefit obligations, net of deferred taxes of $(8), $—, $(8) and $—			14				—				14				(1	)
Currency translation adjustments, net of deferred taxes of $15, $10, $23 and $3			(25	)			(16	)			(38	)			(4	)
Comprehensive income			2,012				2,650				6,308				6,543
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock			(45	)			(41	)			(165	)			(141	)
Comprehensive income attributable to Comcast Corporation		$	1,967			$	2,609			$	6,143			$	6,402

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 

		Nine Months Ended September 30
(in millions)		2015				2014
Net cash provided by operating activities		$	13,813			$	12,302
Investing Activities
Capital expenditures			(5,862	)			(5,196	)
Cash paid for intangible assets			(916	)			(735	)
Acquisitions and construction of real estate properties			(116	)			(28	)
Acquisitions, net of cash acquired			(286	)			(477	)
Proceeds from sales of businesses and investments			420				622
Purchases of investments			(712	)			(145	)
Other			268				(121	)
Net cash provided by (used in) investing activities			(7,204	)			(6,080	)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net			(220	)			(437	)
Proceeds from borrowings			3,996				4,182
Repurchases and repayments of debt			(4,353	)			(3,172	)
Repurchases and retirements of common stock			(5,770	)			(2,250	)
Dividends paid			(1,823	)			(1,676	)
Issuances of common stock			35				33
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock			(178	)			(170	)
Other			(313	)			97
Net cash provided by (used in) financing activities			(8,626	)			(3,393	)
Increase (decrease) in cash and cash equivalents			(2,017	)			2,829
Cash and cash equivalents, beginning of period			3,910				1,718
Cash and cash equivalents, end of period		$	1,893			$	4,547

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Changes in Equity

(Unaudited)

 

		Redeemable Noncontrolling Interests and Redeemable Subsidiary Preferred Stock								Common Stock												Additional Paid-In Capital				Retained Earnings				Treasury Stock at Cost				Accumulated Other Comprehensive Income (Loss)				Non- controlling Interests				Total Equity
(in millions)										A				A Special				B
Balance, December 31, 2013		$	957							$	25			$	5			$	—			$	38,890			$	19,235			$	(7,517	)		$	56			$	364			$	51,058
Stock compensation plans																							580				(391	)															189
Repurchases and retirements of common stock																							(504	)			(1,746	)															(2,250	)
Employee stock purchase plans																							91																				91
Dividends declared																											(1,748	)															(1,748	)
Other comprehensive income (loss)																																			(53	)							(53	)
Issuance of subsidiary shares to noncontrolling interests			85																																				13				13
Contributions from (distributions to) noncontrolling interests, net			(11	)																																			(101	)			(101	)
Other			(22	)																			(80	)															(13	)			(93	)
Net income (loss)			49																								6,455												92				6,547
Balance, September 30, 2014		$	1,058							$	25			$	5			$	—			$	38,977			$	21,805			$	(7,517	)		$	3			$	355			$	53,653
Balance, December 31, 2014		$	1,066							$	25			$	5			$	—			$	38,805			$	21,539			$	(7,517	)		$	(146	)		$	357			$	53,068
Stock compensation plans																							573				(363	)															210
Repurchases and retirements of common stock															(1	)							(1,155	)			(4,614	)															(5,770	)
Employee stock purchase plans																							106																				106
Dividends declared																											(1,871	)															(1,871	)
Other comprehensive income (loss)																																			(49	)							(49	)
Contributions from (distributions to) noncontrolling interests, net			12																																				(114	)			(114	)
Other			67																				187																(100	)			87
Net income (loss)			59																								6,192												106				6,298
Balance, September 30, 2015		$	1,204							$	25			$	4			$	—			$	38,516			$	20,883			$	(7,517	)		$	(195	)		$	249			$	51,965

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

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 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. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.

The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2014 Annual Report on Form 10-K.

Reclassifications

Reclassifications have been made to our condensed consolidated financial statements for the prior year periods to conform to classifications used in 2015.

Note 2: Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board updated the accounting guidance related to revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition model to help improve financial reporting by providing clearer guidance on when an entity should recognize revenue, and by reducing the number of standards to which an entity has to refer. In July 2015, FASB voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The updated accounting guidance provides companies with alternative methods of adoption. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements and our method of adoption.

Consolidations

In February 2015, FASB updated the accounting guidance related to consolidation under the variable interest entity (“VIE”) and voting interest entity models. The updated accounting guidance modifies the consolidation guidance for VIEs, limited partnerships and similar legal entities. The updated accounting guidance will be effective for us on January 1, 2016, and early adoption is permitted. The updated accounting guidance provides companies with alternative methods of adoption. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements and our method of adoption.

Debt Issuance Costs

In April 2015, FASB updated the accounting guidance related to the balance sheet presentation of debt issuance costs. The updated accounting guidance requires that debt issuance costs be presented as a direct deduction from the associated debt liability. The updated accounting guidance will be effective for us on January 1, 2016, and early adoption is permitted. The updated accounting guidance will be applied retrospectively to all prior periods presented. The updated accounting guidance will not have a material impact on our consolidated balance sheet.

 

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Comcast Corporation

 

Note 3: Earnings Per Share

Computation of Diluted EPS

 

		Three Months Ended September 30
		2015												2014
(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		$	1,996				2,472			$	0.81			$	2,592				2,580			$	1.00
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans							30												36
Diluted EPS attributable to Comcast Corporation shareholders		$	1,996				2,502			$	0.80			$	2,592				2,616			$	0.99

 

		Nine Months Ended September 30
		2015												2014
(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		$	6,192				2,498			$	2.48			$	6,455				2,592			$	2.49
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans							32												37
Diluted EPS attributable to Comcast Corporation shareholders		$	6,192				2,530			$	2.45			$	6,455				2,629			$	2.46

Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). The amount of potential common shares related to our share-based compensation plans that were excluded from diluted EPS because their effect would have been antidilutive was not material for the three and nine months ended September 30, 2015 and 2014.

Note 4: Significant Transactions

Time Warner Cable Merger and Related Divestiture Transactions

On April 24, 2015, we and Time Warner Cable Inc. terminated our planned merger, and we terminated our related agreement with Charter Communications, Inc. to spin off, exchange and sell certain cable systems. In connection with these proposed transactions, we incurred incremental transaction-related expenses of $198 million for the nine months ended September 30, 2015 and $77 million and $138 million for the three and nine months ended September 30, 2014, respectively. The transaction-related expenses are reflected primarily in other operating and administrative expenses, with $20 million recorded in depreciation and amortization expenses associated with the write-off of certain capitalized costs in the nine months ended September 30, 2015.

 

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Comcast Corporation

 

Note 5: Film and Television Costs

 

(in millions)		September 30, 2015				December 31, 2014
Film Costs:
Released, less amortization		$	1,365			$	1,371
Completed, not released			208				71
In production and in development			768				1,189
			2,341				2,631
Television Costs:
Released, less amortization			1,505				1,273
In production and in development			699				505
			2,204				1,778
Programming rights, less amortization			2,297				2,157
			6,842				6,566
Less: Current portion of programming rights			1,130				839
Film and television costs		$	5,712			$	5,727

Note 6: Investments

 

(in millions)		September 30, 2015				December 31, 2014
Fair Value Method		$	167			$	662
Equity Method:
The Weather Channel			81				335
Hulu			247				167
Other			473				517
			801				1,019
Cost Method:
AirTouch			1,579				1,568
Other			913				488
			2,492				2,056
Total investments			3,460				3,737
Less: Current investments			137				602
Noncurrent investments		$	3,323			$	3,135

Investment Income (Loss), Net

 

		Three Months Ended September 30								Nine Months Ended September 30
(in millions)		2015				2014				2015				2014
Gains on sales and exchanges of investments, net		$	3			$	3			$	7			$	176
Investment impairment losses			(15	)			(6	)			(46	)			(30	)
Unrealized gains (losses) on securities underlying prepaid forward sale agreements			—				15				42				(13	)
Mark to market adjustments on derivative component of prepaid forward sale agreements and indexed debt instruments			(5	)			(13	)			(42	)			19
Interest and dividend income			27				29				83				85
Other, net			(36	)			(7	)			(20	)			17
Investment income (loss), net		$	(26	)		$	21			$	24			$	254

 

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Fair Value Method

During the nine months ended September 30, 2015, we settled $517 million of our obligations under prepaid forward sale agreements by delivering equity securities. As of September 30, 2015, we have no remaining liabilities related to obligations under prepaid forward sale agreements.

Equity Method

During the nine months ended September 30, 2015, The Weather Channel Holding Corp. (“The Weather Channel”) recorded an impairment charge related to goodwill. We recorded an expense of $252 million representing NBCUniversal’s proportionate share of this impairment charge in equity in net income (losses) of investees, net in our condensed consolidated statement of income.

Cost Method

In September 2015, NBCUniversal made an additional investment in Vox Media, Inc. (“Vox Media”) and acquired an interest in BuzzFeed, Inc. (“BuzzFeed”) for $200 million each in cash. Vox Media is a digital media company comprised of eight distinct brands. BuzzFeed is a global media company that produces and distributes original news, entertainment and videos.

AirTouch

We hold two series of preferred stock of AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of September 30, 2015, the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.7 billion. The estimated fair values are based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Note 7: Long-Term Debt

As of September 30, 2015, our debt had a carrying value of $47.8 billion and an estimated fair value of $53.2 billion. The estimated fair value of our publicly traded debt is primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices is based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.

Debt Borrowings, Redemptions and Repayments

In May 2015, we issued $1.5 billion aggregate principal amount of 3.375% senior notes due 2025, $800 million aggregate principal amount of 4.400% senior notes due 2035 and $1.7 billion aggregate principal amount of 4.600% senior notes due 2045. The proceeds from this offering were used for working capital and general corporate purposes, including the redemption in June 2015 of our $750 million aggregate principal amount of 5.85% senior notes due November 2015 and our $1.0 billion aggregate principal amount of 5.90% senior notes due March 2016. The early redemption resulted in $47 million of additional interest expense during the nine months ended September 30, 2015 in our condensed consolidated statement of income.

In January 2015, we repaid at maturity $900 million aggregate principal amount of 6.50% senior notes due 2015. In April 2015, we repaid at maturity $1 billion aggregate principal amount of 3.65% senior notes due 2015. In August 2015, we repaid at maturity $673 million aggregate principal amount of 8.75% senior notes due 2015.

Revolving Credit Facilities

As of September 30, 2015, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $6.7 billion, which included $715 million available under NBCUniversal Enterprise Inc.’s (“NBCUniversal Enterprise”) revolving credit facility.

 

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Commercial Paper Programs

As of September 30, 2015, NBCUniversal Enterprise had $635 million face amount of commercial paper outstanding.

Note 8: 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 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 Measurements

 

		Fair Value as of
		September 30, 2015																December 31, 2014
(in millions)		Level 1				Level 2				Level 3				Total				Total
Assets
Trading securities		$	27			$	—			$	—			$	27			$	523
Available-for-sale securities			—				122				10				132				132
Interest rate swap agreements			—				80				—				80				84
Other			—				21				8				29				71
Total		$	27			$	223			$	18			$	268			$	810
Liabilities
Derivative component of prepaid forward sale agreements and indexed debt instruments		$	—			$	7			$	—			$	7			$	361
Contractual obligations			—				—				1,056				1,056				883
Contingent consideration			—				—				—				—				644
Other			—				41				—				41				8
Total		$	—			$	48			$	1,056			$	1,104			$	1,896

 

 

Contractual Obligations and Contingent Consideration

In June 2015, we settled a contingent consideration liability related to the acquisition of NBCUniversal, which was based upon future net tax benefits realized by us that would affect future payments to General Electric Company, for a payment of $450 million, which is included as a financing activity in our condensed consolidated statement of cash flows. The settlement resulted in a gain for the nine months ended September 30, 2015 of $240 million, which was recorded to other income (expense), net in our condensed consolidated statement of income.

The estimated fair values of the contractual obligations in the table below are primarily based on certain expected future discounted cash flows, the determination of which involves the use of significant unobservable inputs. The contractual obligations involve financial interests held by a third party in certain NBCUniversal businesses and are based on a percentage of future revenue of the specified businesses. The most significant unobservable inputs we use include our estimates of the future revenue we expect to generate from certain NBCUniversal businesses. The discount rates used in the measurements of fair value as of September 30, 2015 were between 12% and 13% and are based on the underlying risk associated with our estimate of future revenue and the terms of the respective

 

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contracts. The fair value adjustments to the contractual obligations are sensitive to the assumptions related to future revenue, as well as to current interest rates, and therefore the adjustments are recorded to other income (expense), net in our condensed consolidated statement of income.

Changes in Contractual Obligations

 

(in millions)		Contractual Obligations
Balance, December 31, 2014		$	883
Fair value adjustments			236
Payments			(63	)
Balance, September 30, 2015		$	1,056

Fair Value of Redeemable Subsidiary Preferred Stock

As of September 30, 2015, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $762 million. The estimated fair value is based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Note 9: Share-Based Compensation

Our share-based compensation primarily consists of awards of stock options and RSUs to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of Comcast Class A common stock at a discount through payroll deductions.

In March 2015, we granted 17.6 million stock options and 5.1 million RSUs related to our annual management awards. The weighted-average fair values associated with these grants were $11.79 per stock option and $59.50 per RSU.

Recognized Share-Based Compensation Expense

 

		Three Months Ended September 30								Nine Months Ended September 30
(in millions)		2015				2014				2015				2014
Stock options		$	40			$	38			$	118			$	121
Restricted share units			67				55				205				171
Employee stock purchase plans			6				5				20				18
Total		$	113			$	98			$	343			$	310

As of September 30, 2015, we had unrecognized pretax compensation expense of $385 million and $681 million related to nonvested stock options and nonvested RSUs, respectively.

Note 10: Supplemental Financial Information

Receivables

 

(in millions)		September 30, 2015				December 31, 2014
Receivables, gross		$	7,052			$	6,885
Less: Allowance for returns and customer incentives			289				359
Less: Allowance for doubtful accounts			236				205
Receivables, net		$	6,527			$	6,321

 

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Accumulated Other Comprehensive Income (Loss)

 

(in millions)		September 30, 2015				September 30, 2014
Unrealized gains (losses) on marketable securities		$	1			$	3
Deferred gains (losses) on cash flow hedges			(29	)			(29	)
Unrecognized gains (losses) on employee benefit obligations			(54	)			70
Cumulative translation adjustments			(113	)			(41	)
Accumulated other comprehensive income (loss), net of deferred taxes		$	(195	)		$	3

Net Cash Provided by Operating Activities

 

		Nine Months Ended September 30
(in millions)		2015				2014
Net income		$	6,357			$	6,596
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			6,410				5,929
Share-based compensation			430				386
Noncash interest expense (income), net			147				132
Equity in net (income) losses of investees, net			202				(87	)
Cash received from investees			139				71
Net (gain) loss on investment activity and other			(344	)			(24	)
Deferred income taxes			67				358
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net			(322	)			89
Film and television costs, net			(65	)			(471	)
Accounts payable and accrued expenses related to trade creditors			169				119
Other operating assets and liabilities			623				(796	)
Net cash provided by operating activities		$	13,813			$	12,302

Cash Payments for Interest and Income Taxes

 

		Three Months Ended September 30								Nine Months Ended September 30
(in millions)		2015				2014				2015				2014
Interest		$	673			$	656			$	1,914			$	1,820
Income taxes		$	1,146			$	974			$	3,145			$	2,878

Noncash Investing and Financing Activities

During the nine months ended September 30, 2015:

 

•

we acquired $1.2 billion of property and equipment and intangible assets that were accrued but unpaid

 

•

we recorded a liability of $617 million for a quarterly cash dividend of $0.25 per common share paid in October 2015

 

•

we used $517 million of equity securities to settle our obligations under prepaid forward sale agreements

 

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Note 11: Commitments and Contingencies

Contingencies

We are a defendant in several unrelated lawsuits claiming infringement of various patents relating to various aspects of our businesses. In certain of these cases other industry participants are also defendants, and also in certain of these cases we expect that any potential liability would be in part or in whole the responsibility of our equipment and technology vendors under applicable contractual indemnification provisions.

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

Note 12: Financial Data by Business Segment

We present our operations in five reportable business segments:

 

•

Cable Communications: Consists of the operations of Comcast Cable, which is one of the nation’s largest providers of video, high-speed Internet and voice services (“cable services”) to residential customers under the XFINITY brand; we also provide these and other services to businesses and sell advertising.

 

•

Cable Networks: Consists primarily of our national cable networks, our regional sports and news networks, our international cable networks and our cable television production operations.

 

•

Broadcast Television: Consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, and our broadcast television production operations.

 

•

Filmed Entertainment: Consists primarily of the studio operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide.

 

•

Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida and Hollywood, California.

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 tables below.

 

		Three Months Ended September 30, 2015
(in millions)		Revenue(d)				Operating Income (Loss) Before Depreciation and Amortization(e)				Depreciation and Amortization				Operating Income (Loss)				Capital Expenditures
Cable Communications(a)		$	11,740			$	4,748			$	1,777			$	2,971			$	1,851
NBCUniversal
Cable Networks			2,412				835				193				642				9
Broadcast Television			1,971				150				26				124				28
Filmed Entertainment			1,946				376				8				368				2
Theme Parks			896				458				72				386				156
Headquarters and Other(b)			5				(164	)			81				(245	)			94
Eliminations(c)			(79	)			2				—				2				—
NBCUniversal			7,151				1,657				380				1,277				289
Corporate and Other			180				(232	)			26				(258	)			25
Eliminations(c)			(402	)			11				—				11				—
Comcast Consolidated		$	18,669			$	6,184			$	2,183			$	4,001			$	2,165

 

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		Three Months Ended September 30, 2014
(in millions)		Revenue(d)				Operating Income (Loss) Before Depreciation and Amortization(e)				Depreciation and Amortization				Operating Income (Loss)				Capital Expenditures
Cable Communications(a)		$	11,041			$	4,464			$	1,561			$	2,903			$	1,644
NBCUniversal
Cable Networks			2,255				868				189				679				11
Broadcast Television			1,770				142				24				118				15
Filmed Entertainment			1,186				151				6				145				4
Theme Parks			786				402				68				334				184
Headquarters and Other(b)			4				(142	)			84				(226	)			81
Eliminations(c)			(80	)			(5	)			—				(5	)			—
NBCUniversal			5,921				1,416				371				1,045				295
Corporate and Other			174				(197	)			27				(224	)			11
Eliminations(c)			(345	)			21				—				21				—
Comcast Consolidated		$	16,791			$	5,704			$	1,959			$	3,745			$	1,950

 

		Nine Months Ended September 30, 2015
(in millions)		Revenue(d)				Operating Income (Loss) Before Depreciation and Amortization(e)				Depreciation and Amortization				Operating Income (Loss)				Capital Expenditures
Cable Communications(a)		$	34,899			$	14,220			$	5,178			$	9,042			$	4,972
NBCUniversal
Cable Networks			7,221				2,605				588				2,017				20
Broadcast Television			6,032				563				85				478				53
Filmed Entertainment			5,658				1,091				19				1,072				7
Theme Parks			2,320				1,075				214				861				484
Headquarters and Other(b)			12				(473	)			243				(716	)			265
Eliminations(c)			(258	)			2				—				2				—
NBCUniversal			20,985				4,863				1,149				3,714				829
Corporate and Other			560				(709	)			83				(792	)			61
Eliminations(c)			(1,179	)			32				—				32				—
Comcast Consolidated		$	55,265			$	18,406			$	6,410			$	11,996			$	5,862

 

		Nine Months Ended September 30, 2014
(in millions)		Revenue(d)				Operating Income (Loss) Before Depreciation and Amortization(e)				Depreciation and Amortization				Operating Income (Loss)				Capital Expenditures
Cable Communications(a)		$	32,827			$	13,428			$	4,749			$	8,679			$	4,282
NBCUniversal
Cable Networks			7,236				2,677				558				2,119				30
Broadcast Television			6,207				504				78				426				52
Filmed Entertainment			3,713				634				16				618				8
Theme Parks			1,888				816				210				606				486
Headquarters and Other(b)			10				(464	)			244				(708	)			308
Eliminations(c)			(241	)			(6	)			—				(6	)			—
NBCUniversal			18,813				4,161				1,106				3,055				884
Corporate and Other			520				(532	)			74				(606	)			30
Eliminations(c)			(1,117	)			(11	)			—				(11	)			—
Comcast Consolidated		$	51,043			$	17,046			$	5,929			$	11,117			$	5,196

 

 

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(a)	For the three and nine months ended September 30, 2015 and 2014, Cable Communications segment revenue was derived from the following sources:

 

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 nine months ended September 30, 2015 and 2014, 2.8% of Cable Communications segment revenue was derived from franchise and other regulatory fees.

 

(b)	NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.

 

(c)	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 generates revenue by selling advertising and by selling the use of satellite feeds to our NBCUniversal segments

 

•

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

 

•

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

 

(d)	No single customer accounted for a significant amount of revenue in any period.

 

(e)

We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of assets, if any, as the measure of profit or loss for 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. Additionally, it is unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and 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 that of 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 we have reported in accordance with GAAP.

 

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Note 13: Condensed Consolidating Financial Information

Comcast (“Comcast Parent”), Comcast Cable Communications, LLC (“CCCL Parent”), Comcast MO Group, Inc. (“Comcast MO Group”), Comcast Cable Holdings, LLC (“CCH”) and Comcast MO of Delaware, LLC (“Comcast MO of Delaware”) (collectively, the “cable guarantors”) and NBCUniversal (“NBCUniversal Media Parent”) have fully and unconditionally guaranteed each other’s debt securities. In addition, the Comcast and Comcast Cable Communications, LLC $6.25 billion revolving credit facility due June 2017 and the Comcast commercial paper program are also fully and unconditionally guaranteed by NBCUniversal Media Parent. The Comcast commercial paper program is supported by the Comcast and Comcast Cable Communications, LLC revolving credit facility. Comcast MO Group, CCH and Comcast MO of Delaware are collectively referred to as the “Combined CCHMO Parents.”

In October 2015, Comcast MO Group, CCH and Comcast MO of Delaware merged with and into CCCL Parent. As the merger occurred subsequent to the balance sheet date, it is not reflected in the following condensed consolidating financial statements, which reflect our guarantee structure as of September 30, 2015.

Comcast Parent and the cable guarantors also fully and unconditionally guarantee NBCUniversal Enterprise’s $4 billion senior notes, as well as its $1.35 billion revolving credit facility due March 2018 and the associated commercial paper program. NBCUniversal Media Parent does not guarantee the NBCUniversal Enterprise senior notes, credit facility or commercial paper program.

Comcast Parent provides an unconditional subordinated guarantee of the $185 million principal amount currently outstanding of Comcast Holdings’ ZONES due October 2029. Neither the cable guarantors nor NBCUniversal Media Parent guarantee the Comcast Holdings’ ZONES due October 2029. None of Comcast Parent, the cable guarantors nor NBCUniversal Media Parent guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029.

 

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Condensed Consolidating Balance Sheet

September 30, 2015

 

(in millions)		Comcast Parent				Comcast Holdings				CCCL Parent				Combined CCHMO Parents				NBCUniversal Media Parent				Non- Guarantor Subsidiaries				Elimination and Consolidation Adjustments				Consolidated Comcast Corporation
Assets
Cash and cash equivalents		$	—			$	—			$	—			$	—			$	209			$	1,684			$	—			$	1,893
Investments			—				—				—				—				—				137				—				137
Receivables, net			—				—				—				—				—				6,527				—				6,527
Programming rights			—				—				—				—				—				1,130				—				1,130
Other current assets			342				—				—				—				39				1,433				—				1,814
Total current assets			342				—				—				—				248				10,911				—				11,501
Film and television costs			—				—				—				—				—				5,712				—				5,712
Investments			30				—				—				—				508				2,785				—				3,323
Investments in and amounts due from subsidiaries eliminated upon consolidation			84,507				109,269				116,604				63,108				42,103				107,420				(523,011	)			—
Property and equipment, net			204				—				—				—				—				31,966				—				32,170
Franchise rights			—				—				—				—				—				59,364				—				59,364
Goodwill			—				—				—				—				—				27,492				—				27,492
Other intangible assets, net			11				—				—				—				—				16,885				—				16,896
Other noncurrent assets, net			1,248				149				—				—				87				2,137				(1,121	)			2,500
Total assets		$	86,342			$	109,418			$	116,604			$	63,108			$	42,946			$	264,672			$	(524,132	)		$	158,958
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors		$	8			$	—			$	—			$	—			$	—			$	5,988			$	—			$	5,996
Accrued participations and residuals			—				—				—				—				—				1,491				—				1,491
Accrued expenses and other current liabilities			1,634				335				384				11				431				3,925				—				6,720
Current portion of long-term debt			750				—				—				—				1,007				1,395				—				3,152
Total current liabilities			2,392				335				384				11				1,438				12,799				—				17,359
Long-term debt, less current portion			29,829				133				1,828				822				8,223				3,770				—				44,605
Deferred income taxes			—				642				—				—				59				33,405				(975	)			33,131
Other noncurrent liabilities			2,405				—				—				—				1,121				7,314				(146	)			10,694
Redeemable noncontrolling interests and redeemable subsidiary preferred stock			—				—				—				—				—				1,204				—				1,204
Equity:
Common stock			29				—				—				—				—				—				—				29
Other shareholders’ equity			51,687				108,308				114,392				62,275				32,105				205,931				(523,011	)			51,687
Total Comcast Corporation shareholders’ equity			51,716				108,308				114,392				62,275				32,105				205,931				(523,011	)			51,716
Noncontrolling interests			—				—				—				—				—				249				—				249
Total equity			51,716				108,308				114,392				62,275				32,105				206,180				(523,011	)			51,965
Total liabilities and equity		$	86,342			$	109,418			$	116,604			$	63,108			$	42,946			$	264,672			$	(524,132	)		$	158,958

 

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Condensed Consolidating Balance Sheet

December 31, 2014

 

(in millions)		Comcast Parent				Comcast Holdings				CCCL Parent				Combined CCHMO Parents				NBCUniversal Media Parent				Non- Guarantor Subsidiaries				Elimination and Consolidation Adjustments				Consolidated Comcast Corporation
Assets
Cash and cash equivalents		$	—			$	—			$	—			$	—			$	385			$	3,525			$	—			$	3,910
Investments			—				—				—				—				—				602				—				602
Receivables, net			—				—				—				—				—				6,321				—				6,321
Programming rights			—				—				—				—				—				839				—				839
Other current assets			267				—				—				—				41				1,551				—				1,859
Total current assets			267				—				—				—				426				12,838				—				13,531
Film and television costs			—				—				—				—				—				5,727				—				5,727
Investments			36				—				—				—				378				2,721				—				3,135
Investments in and amounts due from subsidiaries eliminated upon consolidation			84,142				103,420				110,323				58,677				41,239				98,152				(495,953	)			—
Property and equipment, net			199				—				—				—				—				30,754				—				30,953
Franchise rights			—				—				—				—				—				59,364				—				59,364
Goodwill			—				—				—				—				—				27,316				—				27,316
Other intangible assets, net			11				—				—				—				—				16,969				—				16,980
Other noncurrent assets, net			1,224				148				—				—				92				1,949				(1,080	)			2,333
Total assets		$	85,879			$	103,568			$	110,323			$	58,677			$	42,135			$	255,790			$	(497,033	)		$	159,339
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors		$	19			$	—			$	—			$	1			$	—			$	5,618			$	—			$	5,638
Accrued participations and residuals			—				—				—				—				—				1,347				—				1,347
Accrued expenses and other current liabilities			1,547				283				233				47				331				3,767				—				6,208
Current portion of long-term debt			1,650				—				—				677				1,006				884				—				4,217
Total current liabilities			3,216				283				233				725				1,337				11,616				—				17,410
Long-term debt, less current portion			27,616				126				1,827				822				9,218				4,408				—				44,017
Deferred income taxes			—				701				—				—				67				33,127				(936	)			32,959
Other noncurrent liabilities			2,336				—				—				—				1,143				7,484				(144	)			10,819
Redeemable noncontrolling interests and redeemable subsidiary preferred stock			—				—				—				—				—				1,066				—				1,066
Equity:
Common stock			30				—				—				—				—				—				—				30
Other shareholders’ equity			52,681				102,458				108,263				57,130				30,370				197,732				(495,953	)			52,681
Total Comcast Corporation shareholders’ equity			52,711				102,458				108,263				57,130				30,370				197,732				(495,953	)			52,711
Noncontrolling interests			—				—				—				—				—				357				—				357
Total equity			52,711				102,458				108,263				57,130				30,370				198,089				(495,953	)			53,068
Total liabilities and equity		$	85,879			$	103,568			$	110,323			$	58,677			$	42,135			$	255,790			$	(497,033	)		$	159,339

 

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Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended September 30, 2015

 

(in millions)		Comcast Parent				Comcast Holdings				CCCL Parent				Combined CCHMO Parents				NBCUniversal Media Parent				Non- Guarantor Subsidiaries				Elimination and Consolidation Adjustments				Consolidated Comcast Corporation
Revenue
Service revenue		$	—			$	—			$	—			$	—			$	—			$	18,669			$	—			$	18,669
Management fee revenue			251				—				244				151				—				—				(646	)			—
			251				—				244				151				—				18,669				(646	)			18,669
Costs and Expenses:
Programming and production			—				—				—				—				—				5,582				—				5,582
Other operating and administrative			146				—				244				151				235				5,264				(646	)			5,394
Advertising, marketing and promotion			—				—				—				—				—				1,509				—				1,509
Depreciation			8				—				—				—				—				1,689				—				1,697
Amortization			1				—				—				—				—				485				—				486
			155				—				244				151				235				14,529				(646	)			14,668
Operating income (loss)			96				—				—				—				(235	)			4,140				—				4,001
Other Income (Expense):
Interest expense			(428	)			(3	)			(44	)			(21	)			(111	)			(52	)			—				(659	)
Investment income (loss), net			3				(4	)			—				—				(3	)			(22	)			—				(26	)
Equity in net income (losses) of investees, net			2,210				2,123				1,963				1,701				1,289				928				(10,213	)			1
Other income (expense), net			—				—				—				—				(7	)			(46	)			—				(53	)
			1,785				2,116				1,919				1,680				1,168				808				(10,213	)			(737	)
Income (loss) before income taxes			1,881				2,116				1,919				1,680				933				4,948				(10,213	)			3,264
Income tax (expense) benefit			115				2				16				7				(6	)			(1,357	)			—				(1,223	)
Net income (loss)			1,996				2,118				1,935				1,687				927				3,591				(10,213	)			2,041
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock			—				—				—				—				—				(45	)			—				(45	)
Net income (loss) attributable to Comcast Corporation		$	1,996			$	2,118			$	1,935			$	1,687			$	927			$	3,546			$	(10,213	)		$	1,996
Comprehensive income (loss) attributable to Comcast Corporation		$	1,967			$	2,112			$	1,936			$	1,687			$	902			$	3,546			$	(10,183	)		$	1,967

 

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Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended September 30, 2014

 

(in millions)		Comcast Parent				Comcast Holdings				CCCL Parent				Combined CCHMO Parents				NBCUniversal Media Parent				Non- Guarantor Subsidiaries				Elimination and Consolidation Adjustments				Consolidated Comcast Corporation
Revenue
Service revenue		$	—			$	—			$	—			$	—			$	—			$	16,791			$	—			$	16,791
Management fee revenue			237				—				237				146				—				—				(620	)			—
			237				—				237				146				—				16,791				(620	)			16,791
Costs and Expenses:
Programming and production			—				—				—				—				—				4,772				—				4,772
Other operating and administrative			197				—				237				146				203				4,854				(620	)			5,017
Advertising, marketing and promotion			—				—				—				—				—				1,298				—				1,298
Depreciation			10				—				—				—				—				1,529				—				1,539
Amortization			1				—				—				—				—				419				—				420
			208				—				237				146				203				12,872				(620	)			13,046
Operating income (loss)			29				—				—				—				(203	)			3,919				—				3,745
Other Income (Expense):
Interest expense			(412	)			(2	)			(43	)			(29	)			(111	)			(66	)			—				(663	)
Investment income (loss), net			1				2				—				—				(14	)			32				—				21
Equity in net income (losses) of investees, net			2,840				2,556				2,362				1,801				1,144				835				(11,505	)			33
Other income (expense), net			—				—				—				—				(3	)			(93	)			—				(96	)
			2,429				2,556				2,319				1,772				1,016				708				(11,505	)			(705	)
Income (loss) before income taxes			2,458				2,556				2,319				1,772				813				4,627				(11,505	)			3,040
Income tax (expense) benefit			134				—				15				10				(11	)			(555	)			—				(407	)
Net income (loss)			2,592				2,556				2,334				1,782				802				4,072				(11,505	)			2,633
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock			—				—				—				—				—				(41	)			—				(41	)
Net income (loss) attributable to Comcast Corporation		$	2,592			$	2,556			$	2,334			$	1,782			$	802			$	4,031			$	(11,505	)		$	2,592
Comprehensive income (loss) attributable to Comcast Corporation		$	2,609			$	2,551			$	2,335			$	1,781			$	785			$	4,031			$	(11,483	)		$	2,609

 

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Comcast Corporation

Condensed Consolidating Statement of Income

For the Nine Months Ended September 30, 2015

 

(in millions)		Comcast Parent				Comcast Holdings				CCCL Parent				Combined CCHMO Parents				NBCUniversal Media Parent				Non- Guarantor Subsidiaries				Elimination and Consolidation Adjustments				Consolidated Comcast Corporation
Revenue:
Service revenue		$	—			$	—			$	—			$	—			$	—			$	55,265			$	—			$	55,265
Management fee revenue			747				—				727				457				—				—				(1,931	)			—
			747				—				727				457				—				55,265				(1,931	)			55,265
Costs and Expenses:
Programming and production			—				—				—				—				—				16,714				—				16,714
Other operating and administrative			597				—				727				457				727				15,176				(1,931	)			15,753
Advertising, marketing and promotion			—				—				—				—				—				4,392				—				4,392
Depreciation			23				—				—				—				—				4,982				—				5,005
Amortization			4				—				—				—				—				1,401				—				1,405
			624				—				727				457				727				42,665				(1,931	)			43,269
Operating income (loss)			123				—				—				—				(727	)			12,600				—				11,996
Other Income (Expense):
Interest expense			(1,310	)			(9	)			(131	)			(80	)			(347	)			(151	)			—				(2,028	)
Investment income (loss), net			4				(3	)			—				—				(17	)			40				—				24
Equity in net income (losses) of investees, net			6,963				6,511				5,937				5,060				3,801				2,489				(30,963	)			(202	)
Other income (expense), net			(3	)			—				—				—				(2	)			369				—				364
			5,654				6,499				5,806				4,980				3,435				2,747				(30,963	)			(1,842	)
Income (loss) before income taxes			5,777				6,499				5,806				4,980				2,708				15,347				(30,963	)			10,154
Income tax (expense) benefit			415				4				46				28				(17	)			(4,273	)			—				(3,797	)