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Form 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x

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

For the quarterly period ended March 31, 2014

OR

 

¨

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

For the Transition Period from                      to                     

 

 

 

LOGO

 

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

 
333-174175   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

As of March 31, 2014, there were 2,146,295,093 shares of Comcast Corporation Class A common stock, 444,064,771 shares of Comcast Corporation Class A Special common stock and 9,444,375 shares of Comcast Corporation Class B common stock outstanding.

Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practical date: Not applicable for NBCUniversal Media, LLC.

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

 

 

 


Table of Contents

TABLE OF CONTENTS

          Page
Number
 
PART I. FINANCIAL INFORMATION   

Item 1.

  Comcast Corporation Financial Statements     1   
  Condensed Consolidated Balance Sheet as of March 31, 2014 and December 31, 2013 (Unaudited)     1   
  Condensed Consolidated Statement of Income for the Three Months Ended March 31, 2014 and 2013 (Unaudited)     2   
  Condensed Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2014 and 2013 (Unaudited)     3   
  Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2014 and 2013 (Unaudited)     4   
  Condensed Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2014 and 2013 (Unaudited)     5   
  Notes to Condensed Consolidated Financial Statements (Unaudited)     6   

Item 2.

  Management’s Discussion and Analysis of Financial Condition and Results of Operations     23   

Item 3.

  Quantitative and Qualitative Disclosures About Market Risk     35   

Item 4.

  Controls and Procedures     35   
PART II. OTHER INFORMATION  

Item 1.

  Legal Proceedings     36   

Item 1A.

  Risk Factors     36   

Item 2.

  Unregistered Sales of Equity Securities and Use of Proceeds     36   

Item 6.

  Exhibits     37   
SIGNATURES       38   
NBCUniversal Media, LLC Financial Statements     39   

 

 

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 Corporation as “Comcast;” 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 months ended March 31, 2014. 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 technologies may adversely affect our businesses

 

 

   

our businesses depend on keeping pace with technological developments

 

 

   

programming expenses for our video services are increasing, which could adversely affect our businesses

 

 

   

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 businesses

 

 

   

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

 

 

   

NBCUniversal’s success depends on consumer acceptance of its content, which is difficult to predict, 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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 


Table of Contents

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Comcast Corporation

Condensed Consolidated Balance Sheet

(Unaudited)

 

(in millions, except share data)   March 31,
2014
    December 31,
2013
 

Assets

   

Current Assets:

   

Cash and cash equivalents

  $ 3,054     $ 1,718  

Investments

    2,389       3,573  

Receivables, net

    6,151       6,376  

Programming rights

    863       928  

Other current assets

    1,586       1,480  

Total current assets

    14,043       14,075  

Film and television costs

    5,058       4,994  

Investments

    3,090       3,770  

Property and equipment, net of accumulated depreciation of $43,381 and $42,574

    29,588       29,840  

Franchise rights

    59,364       59,364  

Goodwill

    27,103       27,098  

Other intangible assets, net of accumulated amortization of $9,141 and $8,874

    17,145       17,329  

Other noncurrent assets, net

    2,382       2,343  

Total assets

  $ 157,773     $ 158,813  

Liabilities and Equity

   

Current Liabilities:

   

Accounts payable and accrued expenses related to trade creditors

  $ 5,534     $ 5,528  

Accrued participations and residuals

    1,256       1,239  

Deferred revenue

    776       898  

Accrued expenses and other current liabilities

    7,418       7,967  

Current portion of long-term debt

    2,819       3,280  

Total current liabilities

    17,803       18,912  

Long-term debt, less current portion

    44,581       44,567  

Deferred income taxes

    31,595       31,935  

Other noncurrent liabilities

    11,109       11,384  

Commitments and contingencies (Note 10)

   

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

    1,053       957  

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, 2,511,755,843 and 2,503,535,883; outstanding, 2,146,295,093 and 2,138,075,133

    25       25  

Class A Special common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 514,999,535 and 529,964,944; outstanding, 444,064,771 and 459,030,180

    5       5  

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

           

Additional paid-in capital

    38,985       38,890  

Retained earnings

    19,737       19,235  

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)

    33       56  

Total Comcast Corporation shareholders’ equity

    51,268       50,694  

Noncontrolling interests

    364       364  

Total equity

    51,632       51,058  

Total liabilities and equity

  $ 157,773     $ 158,813  

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Income

(Unaudited)

 

    Three Months Ended
March 31
 
(in millions, except per share data)       2014             2013      

Revenue

  $ 17,408     $ 15,310  

Costs and Expenses:

   

Programming and production

    5,908       4,663  

Other operating and administrative

    4,752       4,466  

Advertising, marketing and promotion

    1,210       1,147  

Depreciation

    1,569       1,566  

Amortization

    401       401  
      13,840       12,243  

Operating income

    3,568       3,067  

Other Income (Expense):

   

Interest expense

    (642     (653

Investment income (loss), net

    113       72  

Equity in net income (losses) of investees, net

    32       11  

Other income (expense), net

    (15     73  
      (512     (497

Income before income taxes

    3,056       2,570  

Income tax expense

    (1,118     (925

Net income

    1,938       1,645  

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

    (67     (208

Net income attributable to Comcast Corporation

  $ 1,871     $ 1,437  

Basic earnings per common share attributable to Comcast Corporation shareholders

  $ 0.72     $ 0.55  

Diluted earnings per common share attributable to Comcast Corporation shareholders

  $ 0.71     $ 0.54  

Dividends declared per common share

  $ 0.225     $ 0.195  

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

 

    Three Months Ended
March 31
 
(in millions)       2014             2013      

Net income

  $ 1,938     $ 1,645  

Unrealized gains (losses) on marketable securities, net of deferred taxes of $(17) and $(12)

    30       20  

Deferred gains (losses) on cash flow hedges, net of deferred taxes of $1 and $21

    (2     (36

Amounts reclassified to net income:

   

Realized (gains) losses on marketable securities, net of deferred taxes of $30 and $12

    (50     (23

Realized (gains) losses on cash flow hedges, net of deferred taxes of $2 and $(27)

    (3     46  

Employee benefit obligations, net of deferred taxes of $— and $(1)

          1  

Currency translation adjustments, net of deferred taxes of $(1) and $5

    2       (17

Comprehensive income

    1,915       1,636  

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

    (67     (208

Other comprehensive (income) loss attributable to noncontrolling interests

          9  

Comprehensive income attributable to Comcast Corporation

  $ 1,848     $ 1,437  

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 

   

Three Months Ended

March 31

 
(in millions)       2014               2013        

Net cash provided by (used in) operating activities

  $ 4,486     $ 4,369  

Investing Activities

   

Capital expenditures

    (1,448     (1,361

Cash paid for intangible assets

    (217     (182

Acquisitions and construction of real estate properties

          (1,311

Proceeds from sales of businesses and investments

    300       74  

Purchases of investments

    (37     (88

Other

    (103     105  

Net cash provided by (used in) investing activities

    (1,505     (2,763

Financing Activities

   

Proceeds from (repayments of) short-term borrowings, net

    (364     491  

Proceeds from borrowings

    2,187       2,933  

Repurchases and repayments of debt

    (2,260     (1,811

Repurchases and retirements of common stock

    (750     (500

Dividends paid

    (508     (429

Issuances of common stock

    20       13  

Purchase of NBCUniversal noncontrolling common equity interest

          (10,747

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

    (66     (49

Settlement of Station Venture liability

          (602

Other

    96       (17

Net cash provided by (used in) financing activities

    (1,645     (10,718

Increase (decrease) in cash and cash equivalents

    1,336       (9,112

Cash and cash equivalents, beginning of period

    1,718       10,951  

Cash and cash equivalents, end of period

  $ 3,054     $ 1,839  

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, January 1, 2013

  $ 16,998           $ 25     $ 6     $  —      $ 40,547     $ 16,280     $ (7,517   $ 15     $ 440     $ 49,796  

Stock compensation plans

                  146       (125           21  

Repurchases and retirements of common stock

                  (152     (348           (500

Employee stock purchase
plans

                  22               22  

Dividends declared

                    (514           (514

Other comprehensive income
(loss)

    (9                        

Purchase of NBCUniversal noncontrolling common
equity interest

    (17,006                 (1,482         (26       (1,508

Redeemable subsidiary
preferred stock

    725                          

Contributions from
(distributions to) noncontrolling interests, net

    (9                         (31     (31

Other

    (4                 (124           3       (121

Net income (loss)

    159                                               1,437                       49       1,486  

Balance, March 31, 2013

  $ 854             $ 25     $ 6     $      $ 38,957     $ 16,730     $ (7,517   $ (11   $ 461     $ 48,651  

Balance, January 1, 2014

  $ 957           $ 25     $ 5     $      $ 38,890     $ 19,235     $ (7,517   $ 56     $ 364     $ 51,058  

Stock compensation plans

                  242       (206           36  

Repurchases and retirements of common stock

                  (172     (578           (750

Employee stock purchase
plans

                  26               26  

Dividends declared

                    (585           (585

Other comprehensive
income (loss)

                        (23       (23

Issuance of subsidiary shares
to noncontrolling interests

    82                          

Contributions from
(distributions to) noncontrolling interests, net

    (5                         (37     (37

Other

    (5                 (1           (6     (7

Net income (loss)

    24                                               1,871                       43       1,914  

Balance, March 31, 2014

  $ 1,053             $ 25     $ 5     $      $ 38,985     $ 19,737     $ (7,517   $ 33     $ 364     $ 51,632  

See accompanying notes to condensed consolidated financial statements.

 

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Table of Contents

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 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. 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 of America (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2013 Annual Report on Form 10-K.

Note 2: Earnings Per Share

Computation of Diluted EPS

 

    Three Months Ended March 31  
    2014      2013  
(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

  $ 1,871        2,603      $ 0.72      $ 1,437        2,634      $ 0.55    

Effect of dilutive securities:

                

Assumed exercise or issuance of shares relating to stock plans

             42                          41           

Diluted EPS attributable to Comcast Corporation shareholders

  $    1,871        2,645      $    0.71      $    1,437        2,675      $    0.54    

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 combination of the option exercise price and the associated unrecognized compensation expense 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 months ended March 31, 2014 and 2013 excludes 2 million 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.

Note 3: Significant Transactions

Time Warner Cable Transaction

On February 12, 2014, we entered into an agreement and plan of merger with Time Warner Cable Inc. (“Time Warner Cable”). As a result of this agreement, we will acquire 100% of Time Warner Cable’s outstanding shares of common stock in exchange for shares of our Class A common stock. Time Warner Cable stockholders will receive, in exchange for each share of Time Warner Cable common stock owned immediately prior to the

 

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Comcast Corporation

 

transaction, 2.875 shares of our Class A common stock. Time Warner Cable stockholders will then own approximately 23% of our common stock, estimated based on the number of shares outstanding as of the date of the agreement. Because the exchange ratio was fixed at the time of the merger agreement and the market value of our Class A common stock will continue to fluctuate, the number of shares of Class A common stock to be issued and the total value of the consideration exchanged will not be determinable until the closing date. Following the close of the transaction, Time Warner Cable will be our wholly owned subsidiary. The transaction remains subject to shareholder approval at both companies, regulatory review and other customary conditions and is expected to close by the end of 2014.

Note 4: Film and Television Costs

 

(in millions)   March 31,
2014
     December 31,
2013
 

Film Costs:

    

Released, less amortization

  $ 1,480      $ 1,630  

Completed, not released

    40        70  

In production and in development

    865        658  
    2,385        2,358  

Television Costs:

    

Released, less amortization

    1,169        1,155  

In production and in development

    363        370  
    1,532        1,525  

Programming rights, less amortization

    2,004        2,039  
    5,921        5,922  

Less: Current portion of programming rights

    863        928  

Film and television costs

  $ 5,058      $ 4,994  

Note 5: Investments

 

(in millions)   March 31,
2014
     December 31,
2013
 

Fair Value Method

  $ 2,448      $ 4,345  

Equity Method:

    

The Weather Channel

    331        333  

Hulu

    191        187  

Other

    496        469  
    1,018        989  

Cost Method:

    

AirTouch

    1,556        1,553  

Other

    457        456  
    2,013        2,009  

Total investments

    5,479        7,343  

Less: Current investments

    2,389        3,573  

Noncurrent investments

  $ 3,090      $ 3,770  

 

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Comcast Corporation

 

Investment Income (Loss), Net

 

    Three Months Ended
March 31
 
(in millions)       2014             2013      

Gains on sales and exchanges of investments, net

  $ 83     $ 35  

Investment impairment losses

    (5     (9

Unrealized gains (losses) on securities underlying prepaid forward sale agreements

    (113     605  

Mark to market adjustments on derivative component of prepaid forward sale agreements and indexed debt instruments

    117       (602

Interest and dividend income

    28       30  

Other, net

    3       13  

Investment income (loss), net

  $ 113     $ 72  

Fair Value Method

As of March 31, 2014, the majority of our fair value method investments were equity securities held as collateral that were related to our obligations under prepaid forward sale agreements.

Prepaid Forward Sale Agreements

 

(in millions)   March 31,
2014
     December 31,
2013
 

Assets:

    

Fair value equity securities held as collateral

  $ 2,164      $ 3,959  

Liabilities:

    

Obligations under prepaid forward sale agreements

  $ 463      $ 811  

Derivative component of prepaid forward sale agreements

    1,501        2,800  

Total liabilities

  $ 1,964      $ 3,611  

During the three months ended March 31, 2014, we settled $1.5 billion of obligations under certain of our prepaid forward sale agreements by delivering equity securities. As of March 31, 2014, our remaining prepaid forward sale obligations had an estimated fair value of $2 billion. The estimated fair values are based on Level 2 inputs using 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.

Cost Method

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 March 31, 2014, the estimated fair values of the AirTouch preferred stock and the associated liability related to the redeemable preferred shares issued by one of our consolidated subsidiaries were each $1.7 billion. The estimated fair values are based on Level 2 inputs using 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 6: Long-Term Debt

As of March 31, 2014, our debt had a carrying value of $47.4 billion and an estimated fair value of $52.5 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.

Debt Borrowings and Repayments

In February 2014, we issued $1.2 billion aggregate principal amount of 3.60% senior notes due 2024 and $1 billion aggregate principal amount of 4.75% senior notes due 2044. The proceeds from this offering were used for working capital and general corporate purposes, including the repayment of a portion of our outstanding commercial paper and our $900 million aggregate principal amount of 2.10% senior notes in April 2014 at maturity.

 

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In January 2014, we repaid at maturity $1 billion aggregate principal amount of 5.30% senior notes due 2014. In February 2014, we repaid $1.25 billion of borrowings outstanding under NBCUniversal Enterprise Inc.’s (“NBCUniversal Enterprise”) revolving credit facility with the proceeds from $990 million of borrowings under its new commercial paper program and cash on hand.

Revolving Credit Facilities

As of March 31, 2014, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper program and outstanding letters of credit, totaled $6.3 billion, which included $360 million available under NBCUniversal Enterprise’s credit facility.

Commercial Paper Program

In February 2014, NBCUniversal Enterprise entered into a commercial paper program. The maximum borrowing capacity under this commercial paper program is $1.35 billion, and it is supported by NBCUniversal Enterprise’s existing $1.35 billion revolving credit facility due March 2018. The commercial paper program is fully and unconditionally guaranteed by us and our 100% owned cable holding company subsidiaries, 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”). As of March 31, 2014, NBCUniversal Enterprise had $990 million face amount of commercial paper outstanding.

Note 7: 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 Measures

 

    Fair Value as of  
    March 31, 2014      December 31,
2013
 
(in millions)   Level 1      Level 2      Level 3      Total      Total  

Assets

             

Trading securities

  $ 2,168      $      $      $ 2,168      $ 3,956  

Available-for-sale securities

    151        117        11        279        389  

Interest rate swap agreements

           101               101        110  

Other

           74        1        75        81  

Total

  $ 2,319      $ 292      $ 12      $ 2,623      $ 4,536  

Liabilities

             

Derivative component of prepaid forward sale agreements and indexed debt instruments

  $      $ 1,515      $      $ 1,515      $ 2,816  

Contractual obligation

                  761        761        747  

Contingent consideration

                  677        677        684  

Other

           17               17        16  

Total

  $      $ 1,532      $ 1,438      $ 2,970      $ 4,263  

 

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Fair Value of Redeemable Subsidiary Preferred Stock Financial Instrument

As of March 31, 2014, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $750 million. The estimated fair value is based on Level 2 inputs using 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.

Contractual Obligation and Contingent Consideration

The fair values of the contractual obligation and contingent consideration in the table above are primarily based on certain expected future discounted cash flows, the determination of which involves the use of significant unobservable inputs. The most significant unobservable inputs we use are our estimates of the future revenue we expect to generate from certain NBCUniversal businesses, which are related to our contractual obligation, and future net tax benefits that will affect payments to GE, which are related to contingent consideration. The discount rates used in the measurements of fair value were between 5% and 13% and are based on the underlying risk associated with our estimate of future revenue and the terms of the respective contracts, and the uncertainty in the timing of our payments to GE. The fair value adjustments to contractual obligation and contingent consideration are sensitive to the assumptions related to future revenue and tax benefits, respectively, 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 Obligation and Contingent Consideration

 

(in millions)   Contractual
Obligation
    Contingent
Consideration
 

Balance, December 31, 2013

  $ 747     $ 684  

Fair value adjustments

    27       7  

Payments

    (13     (14

Balance, March 31, 2014

  $ 761     $ 677  

Note 8: 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 2014, we granted 16.4 million stock options and 5.4 million RSUs related to our annual management awards. The weighted-average fair values associated with these grants were $11.09 per stock option and $46.57 per RSU.

Recognized Share-Based Compensation Expense

 

    Three Months Ended
March 31
 
(in millions)       2014              2013      

Stock options

  $ 36      $ 32  

Restricted share units

    48        38  

Employee stock purchase plans

    6        6  

Total

  $ 90      $ 76  

As of March 31, 2014, we had unrecognized pretax compensation expense of $428 million and $575 million related to nonvested stock options and nonvested RSUs, respectively.

 

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Note 9: Supplemental Financial Information

Receivables

 

(in millions)   March 31,
2014
     December 31,
2013
 

Receivables, gross

  $ 6,645      $ 6,972  

Less: Allowance for returns and customer incentives

    285        375  

Less: Allowance for doubtful accounts

    209        221  

Receivables, net

  $ 6,151      $ 6,376  

Accumulated Other Comprehensive Income (Loss)

 

(in millions)   March 31,
2014
    March 31,
2013
 

Unrealized gains (losses) on marketable securities

  $ 47     $ 180  

Deferred gains (losses) on cash flow hedges

    (50     (57

Unrecognized gains (losses) on employee benefit obligations

    71       (109

Cumulative translation adjustments

    (35     (25

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

  $ 33     $ (11

Net Cash Provided by Operating Activities

 

    Three Months Ended
March 31
 
(in millions)       2014             2013      

Net income

  $ 1,938     $ 1,645  

Adjustments to reconcile net income to net cash provided by operating activities:

   

Depreciation and amortization

    1,970       1,967  

Amortization of film and television costs

    2,876       1,972  

Share-based compensation

    119       102  

Noncash interest expense (income), net

    42       42  

Equity in net (income) losses of investees, net

    (32     (11

Cash received from investees

    18       23  

Net (gain) loss on investment activity and other

    (59     (132

Deferred income taxes

    (226     (373

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:

   

Change in current and noncurrent receivables, net

    195       465  

Change in film and television costs

    (2,722     (1,577

Change in accounts payable and accrued expenses related to trade creditors

    82       (281

Change in other operating assets and liabilities

    285       527  

Net cash provided by operating activities

  $ 4,486     $ 4,369  

Cash Payments for Interest and Income Taxes

 

    Three Months Ended
March 31
 
(in millions)       2014              2013      

Interest

  $ 623      $ 617  

Income taxes

  $ 186      $ 461  

 

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Noncash Investing and Financing Activities

During the three months ended March 31, 2014:

 

   

we acquired $741 million of property and equipment and intangible assets that were accrued but unpaid

 

 

   

we recorded a liability of $585 million for a quarterly cash dividend of $0.225 per common share paid in April 2014

 

 

   

we used $1.5 billion of equity securities to settle our obligations under prepaid forward sale agreements

 

Note 10: Commitments and Contingencies

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 Chicago Cluster and Philadelphia Cluster customers were certified in October 2007 and January 2010, respectively. We appealed the class certification in the Philadelphia Cluster case to the Third Circuit Court of Appeals, which affirmed the class certification in August 2011. In June 2012, the U.S. Supreme Court granted our petition to review the Third Circuit Court of Appeals’ ruling and in March 2013, the Supreme Court ruled that the class had been improperly certified and reversed the judgment of the Third Circuit. The matter has been returned to the District Court for action consistent with the Supreme Court’s opinion. In August 2013, the plaintiffs in the Philadelphia Cluster case moved to certify a new, smaller class. The District Court denied our September 2013 motion to strike the plaintiffs’ motion on procedural grounds. In April 2014, the District Court granted our unopposed motion to de-certify the Chicago class and the plaintiffs’ unopposed motion to amend the Pennsylvania case so as to dismiss claims relating to the Chicago cluster.

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

 

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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 digital 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 June 2013, a comprehensive settlement agreement for all 23 cases was submitted to the District Court for preliminary approval. Regardless of whether this settlement agreement is approved, we do not expect these cases to have a material effect on our results of operations, cash flows or financial position.

We believe the claims in each of the pending actions described above in this item are without merit, except as otherwise set forth above, 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 financial position. In addition, as any action nears a trial, there is an increased possibility that the action may be settled by the parties. 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 results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time consuming, costly and injure our reputation.

Note 11: 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 the nation’s largest provider of video, high-speed Internet and voice services (“cable services”) to residential customers under the XFINITY brand, and we also provide similar services to businesses and sell advertising.

 

 

   

Cable Networks: Consists primarily of our national cable networks, our regional sports 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, 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 and Hollywood.

 

 

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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 March 31, 2014  
(in millions)   Revenue(e)    

Operating Income (Loss)

Before Depreciation  and
Amortization(f)

    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 10,757      $ 4,400      $ 1,584      $ 2,816     $ 1,145  

NBCUniversal

          

Cable Networks(b)

    2,505        895        189        706       11  

Broadcast Television

    2,621        122        27        95       11  

Filmed Entertainment(b)

    1,351        288        5        283       1  

Theme Parks

    487        170        69        101       144  

Headquarters and Other(c)

    2        (163     75        (238     124  

Eliminations(d)

    (90     (1            (1      

NBCUniversal

    6,876        1,311        365        946       291  

Corporate and Other

    174        (153     21        (174     12  

Eliminations(d)

    (399     (20            (20      

Comcast Consolidated

  $ 17,408      $ 5,538      $ 1,970      $ 3,568     $ 1,448  

 

    Three Months Ended March 31, 2013  
(in millions)   Revenue(e)     Operating Income (Loss)
Before Depreciation and
Amortization(f)
    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 10,217      $ 4,219      $ 1,608      $ 2,611     $ 1,094  

NBCUniversal

          

Cable Networks(b)

    2,225        859        184        675       24  

Broadcast Television

    1,517        (35     25        (60     8  

Filmed Entertainment(b)

    1,216        69        4        65       2  

Theme Parks

    462        173        72        101       138  

Headquarters and Other(c)

    9        (112     59        (171     91  

Eliminations(d)

    (89     (1            (1      

NBCUniversal

    5,340        953        344        609       263  

Corporate and Other

    162        (83     15        (98     4  

Eliminations(d)

    (409     (55            (55      

Comcast Consolidated

  $ 15,310      $ 5,034      $ 1,967      $ 3,067     $ 1,361  

 

(a)

For the three months ended March 31, 2014 and 2013, Cable Communications segment revenue was derived from the following sources:

 

    Three Months Ended
March 31
 
         2014             2013      

Residential:

   

Video

    48.1     50.0

High-speed Internet

    25.6     24.7

Voice

    8.5     8.8

Business services

    8.5     7.2

Advertising

    4.8     4.8

Other

    4.5     4.5

Total

    100     100

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 the three months ended March 31, 2014 and 2013, 2.8% and 2.9%, respectively, of Cable Communications revenue was derived from franchise and other regulatory fees.

 

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(b)

Beginning in 2014, Fandango, our movie ticketing and entertainment business that was previously presented in our Cable Networks segment, is now presented in the Filmed Entertainment segment to reflect the change in our management reporting presentation. Due to immateriality, prior period amounts have not been adjusted. The change in presentation resulted in the reclassification of $195 million of goodwill from our Cable Networks segment to our Filmed Entertainment segment.

 

(c)

NBCUniversal Headquarters and Other activities includes costs associated with overhead, allocations, personnel costs and headquarter initiatives.

 

(d)

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 Cable Networks segment

 

 

   

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

 

 

(e)

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

 

(f)

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 12: Condensed Consolidating Financial Information

Comcast Corporation (“Comcast Parent”), our cable guarantors and NBCUniversal Media, LLC (referred to as “NBCUniversal Media Parent” in the tables below) 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 Parent and the cable guarantors also fully and unconditionally guarantee NBCUniversal Enterprise’s $4 billion aggregate principal amount of senior notes, its $1.35 billion 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

March 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

  $  —     $  —     $  —     $  —     $ 506     $ 2,548     $  —     $ 3,054  

Investments

                                  2,389             2,389  

Receivables, net

                                  6,151             6,151  

Programming rights

                                  863             863  

Other current assets

    229                         29       1,328             1,586  

Total current assets

    229                         535       13,279             14,043  

Film and television costs

                                  5,058             5,058  

Investments

    21                         378       2,691             3,090  

Investments in and amounts due from subsidiaries eliminated upon consolidation

    80,474       99,606       105,083       55,737       41,042       87,497       (469,439      

Property and equipment, net

    213                               29,375             29,588  

Franchise rights

                                  59,364             59,364  

Goodwill

                                  27,103             27,103  

Other intangible assets, net

    10                               17,135             17,145  

Other noncurrent assets, net

    1,114       145                   101       1,937       (915     2,382  

Total assets

  $ 82,061     $ 99,751     $ 105,083     $ 55,737     $ 42,056     $ 243,439     $ (470,354   $ 157,773  

Liabilities and Equity

               

Accounts payable and accrued expenses related to trade creditors

  $ 7     $     $     $     $     $ 5,527     $     $ 5,534  

Accrued participations and residuals

                                  1,256             1,256  

Accrued expenses and other current liabilities

    1,430       266       318       21       398       5,761             8,194  

Current portion of long-term debt

    900                         902       1,017             2,819  

Total current liabilities

    2,337       266       318       21       1,300       13,561             17,803  

Long-term debt, less current portion

    26,455       130       1,827       1,504       10,232       4,433             44,581  

Deferred income taxes

          758                   58       31,553       (774     31,595  

Other noncurrent liabilities

    2,001                         937       8,312       (141     11,109  

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

                                  1,053             1,053  

Equity:

               

Common stock

    30                                           30  

Other shareholders’ equity

    51,238       98,597       102,938       54,212       29,529       184,163       (469,439     51,238  

Total Comcast Corporation shareholders’ equity

    51,268       98,597       102,938       54,212       29,529       184,163       (469,439     51,268  

Noncontrolling interests

                                  364             364  

Total equity

    51,268       98,597       102,938       54,212       29,529       184,527       (469,439     51,632  

Total liabilities and equity

  $ 82,061     $ 99,751     $ 105,083     $ 55,737     $ 42,056     $ 243,439     $ (470,354   $ 157,773  

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Balance Sheet

December 31, 2013

 

(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

  $  —     $  —     $  —     $  —     $ 336     $ 1,382     $  —     $ 1,718  

Investments

                                  3,573             3,573  

Receivables, net

                                  6,376             6,376  

Programming rights

                                  928             928  

Other current assets

    237                         35       1,208             1,480  

Total current assets

    237                         371       13,467             14,075  

Film and television costs

                                  4,994             4,994  

Investments

    11                         374       3,385             3,770  

Investments in and amounts due from subsidiaries eliminated upon consolidation

    79,956       97,429       102,673       54,724       40,644       85,164       (460,590      

Property and equipment, net

    220                               29,620             29,840  

Franchise rights

                                  59,364             59,364  

Goodwill

                                  27,098             27,098  

Other intangible assets, net

    11                               17,318             17,329  

Other noncurrent assets, net

    1,078       145                   103       1,899       (882     2,343  

Total assets

  $ 81,513     $ 97,574     $ 102,673     $ 54,724     $ 41,492     $ 242,309     $ (461,472   $ 158,813  

Liabilities and Equity

               

Accounts payable and accrued expenses related to trade creditors

  $ 8     $     $     $     $     $ 5,520     $     $ 5,528  

Accrued participations and residuals

                                  1,239             1,239  

Accrued expenses and other current liabilities

    1,371       266       180       47       323       6,678             8,865  

Current portion of long-term debt

    2,351                         903       26             3,280  

Total current liabilities

    3,730       266       180       47       1,226       13,463             18,912  

Long-term debt, less current portion

    25,170       132       1,827       1,505       10,236       5,697             44,567  

Deferred income taxes

          777                   59       31,840       (741     31,935  

Other noncurrent liabilities

    1,919                         931       8,675       (141     11,384  

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

                                  957             957  

Equity:

               

Common stock

    30                                           30  

Other shareholders’ equity

    50,664       96,399       100,666       53,172       29,040       181,313       (460,590     50,664  

Total Comcast Corporation shareholders’ equity

    50,694       96,399       100,666       53,172       29,040       181,313       (460,590     50,694  

Noncontrolling interests

                                  364             364  

Total equity

    50,694       96,399       100,666       53,172       29,040       181,677       (460,590     51,058  

Total liabilities and equity

  $ 81,513     $ 97,574     $ 102,673     $ 54,724     $ 41,492     $ 242,309     $ (461,472   $ 158,813  

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended March 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
 

Revenue:

               

Service revenue

  $     $     $     $     $     $ 17,408     $     $ 17,408  

Management fee revenue

    230             223       141                   (594      
      230             223       141             17,408       (594     17,408  

Costs and Expenses:

               

Programming and production

                                  5,908             5,908  

Other operating and administrative

    93             223       141       257       4,632       (594     4,752  

Advertising, marketing and promotion

                                  1,210             1,210  

Depreciation

    7                               1,562             1,569  

Amortization

    1                               400             401  
      101             223       141       257       13,712       (594     13,840  

Operating income (loss)

    129                         (257     3,696             3,568  

Other Income (Expense):

               

Interest expense

    (387     (3     (45     (29     (124     (54           (642

Investment income (loss), net

    1       3                   1       108             113  

Equity in net income (losses) of investees, net

    2,038       2,267       2,165       1,511       1,071       714       (9,734     32  

Other income (expense), net

                            (4     (11           (15
      1,652       2,267       2,120       1,482       944       757       (9,734     (512

Income (loss) before income taxes

    1,781       2,267       2,120       1,482       687       4,453       (9,734     3,056  

Income tax (expense) benefit

    90             16       10       (5     (1,229           (1,118

Net income (loss)

    1,871       2,267       2,136       1,492       682       3,224       (9,734     1,938  

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

                                  (67           (67

Net income (loss) attributable to Comcast Corporation

  $ 1,871     $ 2,267     $ 2,136     $ 1,492     $ 682     $ 3,157     $ (9,734   $ 1,871  

Comprehensive income (loss) attributable to Comcast Corporation

  $ 1,848     $ 2,269     $ 2,138     $ 1,493     $ 685     $ 3,134     $ (9,719   $ 1,848  

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended March 31, 2013

 

(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

  $     $     $     $     $     $ 15,310     $     $ 15,310  

Management fee revenue

    218             212       133                   (563      
      218             212       133             15,310       (563     15,310  

Costs and Expenses:

               

Programming and production

                                  4,663             4,663  

Other operating and administrative

    98             212       133       225       4,361       (563     4,466  

Advertising, marketing and promotion

                                  1,147             1,147  

Depreciation

    7                               1,559             1,566  

Amortization

    1                               400             401  
      106             212       133       225       12,130       (563     12,243  

Operating income (loss)

    112                         (225     3,180             3,067  

Other Income (Expense):

               

Interest expense

    (376     (3     (78     (33     (120     (43           (653

Investment income (loss), net

    1       (3                 (4     78             72  

Equity in net income

               

(losses) of investees, net

    1,608       1,742       1,763       1,262       709       366       (7,439     11  

Other income (expense), net

    (1                             74             73  
      1,232       1,736       1,685       1,229       585       475       (7,439     (497

Income (loss) before income taxes

    1,344       1,736       1,685       1,229       360       3,655       (7,439     2,570  

Income tax (expense) benefit

    93       2       27       11       (5     (1,053           (925

Net income (loss)

    1,437       1,738       1,712       1,240       355       2,602       (7,439     1,645  

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

                                  (208           (208

Net income (loss)attributable to Comcast Corporation

  $ 1,437     $ 1,738     $ 1,712     $ 1,240     $ 355     $ 2,394     $ (7,439   $ 1,437  

Comprehensive income (loss) attributable to Comcast Corporation

  $ 1,437     $ 1,738     $ 1,714     $ 1,240     $ 333     $ 2,407     $ (7,432   $ 1,437  

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 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

 

Net cash provided by (used in) operating activities

  $ (96   $ (2   $ 110     $ (47   $ (306   $ 4,827     $      $ 4,486  

Investing Activities

               

Net transactions with affiliates

    1,370       2       (110     47       483       (1,792            

Capital expenditures

                                  (1,448           (1,448

Cash paid for intangible assets

                                  (217           (217

Acquisitions and construction of real estate properties

                                               

Proceeds from sales of businesses and investments

                                  300             300  

Purchases of investments

    (10                       (6     (21           (37

Other

                                  (103           (103

Net cash provided by (used in) investing activities

    1,360       2       (110     47       477       (3,281           (1,505

Financing Activities

               

Proceeds from (repayments of) short-term borrowings, net

    (1,350                             986             (364

Proceeds from borrowings

    2,184                               3             2,187  

Repurchases and repayments of debt

    (1,000                       (1     (1,259           (2,260

Repurchases and retirements of common stock

    (750                                         (750

Dividends paid

    (508                                         (508

Issuances of common stock

    20                                           20  

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

                                  (66           (66

Other

    140                               (44           96  

Net cash provided by (used in) financing activities

    (1,264                       (1     (380           (1,645

Increase (decrease) in cash and cash equivalents

                            170       1,166             1,336  

Cash and cash equivalents, beginning of period

                            336       1,382             1,718  

Cash and cash equivalents, end of period

  $                         506       2,548             3,054  

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2013

 

(in millions)  

Comcast

Parent

   

Comcast

Holdings

   

CCCL

Parent

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
    Non-Guarantor
Subsidiaries
   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Net cash provided by (used in) operating activities

  $ (112   $ 3     $ 49     $ (53   $ (227   $ 4,709     $      $ 4,369  

Investing Activities

               

Net transactions with affiliates

    (2,480     (6     1,665       53       (1,251     2,019              

Capital expenditures

                                  (1,361           (1,361

Cash paid for intangible assets

                                  (182           (182

Acquisitions and construction of real estate properties

                                  (1,311           (1,311

Proceeds from sales of businesses and investments

                                  74             74  

Purchases of investments

                            (1     (87           (88

Other

          3                   (10     112             105  

Net cash provided by (used in) investing activities

    (2,480     (3     1,665       53       (1,262     (736           (2,763

Financing Activities

               

Proceeds from (repayments of) short-term borrowings, net

    500                               (9           491  

Proceeds from borrowings

    2,933                                           2,933  

Repurchases and repayments of debt

                (1,714           (87     (10           (1,811

Repurchases and retirements of common stock

    (500                                         (500

Dividends paid

    (429                                         (429

Issuances of common stock

    13                                           13  

Purchase of NBCUniversal noncontrolling common equity interest

                            (3,200     (7,547           (10,747

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

                                  (49           (49

Settlement of Station Venture liability

                                  (602           (602

Other

    75                         (40     (52           (17

Net cash provided by (used in) financing activities

    2,592             (1,714           (3,327     (8,269           (10,718

Increase (decrease) in cash and cash equivalents

                            (4,816     (4,296           (9,112

Cash and cash equivalents, beginning of period

                            5,129       5,822