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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 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                     

 

 

 

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

 
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.

 

 

 


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 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

 


Table of Contents

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.

 

1


Table of Contents

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.

 

2


Table of Contents

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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Table of Contents

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.

 

4


Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Changes in Equity

(Unaudited)

 

   

Redeemable
Noncontrolling
Interests and
Redeemable
Subsidiary
Preferred Stock

            

 

 

Common Stock

   

Additional
Paid-In
Capital

   

Retained
Earnings

   

Treasury
Stock at
Cost

   

Accumulated
Other
Comprehensive
Income (Loss)

   

Non-

controlling
Interests

   

Total
Equity

 
(in millions)              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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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 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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Table of Contents

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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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:

 

    Three Months Ended
September 30
    Nine Months Ended
September 30
 
         2015             2014             2015             2014      

Residential:

       

Video

    45.6     46.9     46.2     47.5

High-speed Internet

    26.7     25.7     26.6     25.6

Voice

    7.7     8.3     7.8     8.4

Business services

    10.3     9.2     10.0     8.8

Advertising

    5.1     5.4     4.8     5.1

Other

    4.6     4.5     4.6     4.6

Total

    100     100     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 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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Table of Contents

Comcast Corporation

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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Table of Contents

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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Table of Contents

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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Table of Contents

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