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x | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
c | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Commission File Number | Exact Name of Registrant; State of Incorporation; Address and Telephone Number of Principal Executive Offices | I.R.S. Employer Identification No. |
001-32871 | COMCAST CORPORATION | 27-0000798 |
PENNSYLVANIA One Comcast Center Philadelphia, PA 19103-2838 (215) 286-1700 | ||
001-36438 | NBCUNIVERSAL MEDIA, LLC | 14-1682529 |
DELAWARE 30 Rockefeller Plaza New York, NY 10112-0015 (212) 664-4444 |
Comcast Corporation | Yes | x | No | c | ||||
NBCUniversal Media, LLC | Yes | x | No | c | ||||
Comcast Corporation | Yes | x | No | c | ||||
NBCUniversal Media, LLC | Yes | x | No | c |
Comcast Corporation | Large accelerated filer | x | Accelerated filer | c | Non-accelerated filer | c | Smaller reporting company | c | Emerging growth company | c |
NBCUniversal Media, LLC | Large accelerated filer | c | Accelerated filer | c | Non-accelerated filer | x | Smaller reporting company | c | Emerging growth company | c |
Comcast Corporation | c |
NBCUniversal Media, LLC | c |
Comcast Corporation | Yes | c | No | x | ||||
NBCUniversal Media, LLC | Yes | c | No | x |
Page Number | ||
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Item 2. | ||
Item 3. | ||
Item 4. | ||
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Item 6. | ||
• | 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 and distribution platforms for viewing content may adversely affect our businesses and challenge existing business models |
• | a decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses |
• | our businesses depend on keeping pace with technological developments |
• | we are subject to regulation by federal, state, local and foreign authorities, which 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 video business |
• | 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 initiatives, including the launch of our wireless phone service, present many risks, and we may not realize the financial and strategic goals that we had contemplated |
• | 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 |
(in millions, except share data) | June 30, 2017 | December 31, 2016 | |||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 2,693 | $ | 3,301 | |||
Receivables, net | 7,849 | 7,955 | |||||
Programming rights | 1,633 | 1,250 | |||||
Other current assets | 2,657 | 3,855 | |||||
Total current assets | 14,832 | 16,361 | |||||
Film and television costs | 6,595 | 7,252 | |||||
Investments | 6,521 | 5,247 | |||||
Property and equipment, net of accumulated depreciation of $49,951 and $49,694 | 37,171 | 36,253 | |||||
Franchise rights | 59,364 | 59,364 | |||||
Goodwill | 36,742 | 35,980 | |||||
Other intangible assets, net of accumulated amortization of $11,900 and $11,013 | 18,907 | 17,274 | |||||
Other noncurrent assets, net | 2,899 | 2,769 | |||||
Total assets | $ | 183,031 | $ | 180,500 | |||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable and accrued expenses related to trade creditors | $ | 6,730 | $ | 6,915 | |||
Accrued participations and residuals | 1,882 | 1,726 | |||||
Deferred revenue | 1,448 | 1,132 | |||||
Accrued expenses and other current liabilities | 5,858 | 6,282 | |||||
Current portion of long-term debt | 6,358 | 5,480 | |||||
Total current liabilities | 22,276 | 21,535 | |||||
Long-term debt, less current portion | 57,210 | 55,566 | |||||
Deferred income taxes | 35,409 | 34,854 | |||||
Other noncurrent liabilities | 10,837 | 10,925 | |||||
Commitments and contingencies (Note 10) | |||||||
Redeemable noncontrolling interests and redeemable subsidiary preferred stock | 1,451 | 1,446 | |||||
Equity: | |||||||
Preferred stock—authorized, 20,000,000 shares; issued, zero | — | — | |||||
Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,576,719,038 and 5,614,950,039; outstanding, 4,703,928,010 and 4,742,159,011 | 56 | 56 | |||||
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375 | — | — | |||||
Additional paid-in capital | 37,478 | 38,230 | |||||
Retained earnings | 24,560 | 23,076 | |||||
Treasury stock, 872,791,028 Class A common shares | (7,517 | ) | (7,517 | ) | |||
Accumulated other comprehensive income (loss) | 428 | 98 | |||||
Total Comcast Corporation shareholders’ equity | 55,005 | 53,943 | |||||
Noncontrolling interests | 843 | 2,231 | |||||
Total equity | 55,848 | 56,174 | |||||
Total liabilities and equity | $ | 183,031 | $ | 180,500 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 21,165 | $ | 19,269 | $ | 41,628 | $ | 38,059 | |||||||
Costs and Expenses: | |||||||||||||||
Programming and production | 6,341 | 5,492 | 12,415 | 10,923 | |||||||||||
Other operating and administrative | 6,060 | 5,763 | 11,887 | 11,289 | |||||||||||
Advertising, marketing and promotion | 1,665 | 1,559 | 3,195 | 3,025 | |||||||||||
Depreciation | 1,970 | 1,868 | 3,885 | 3,653 | |||||||||||
Amortization | 571 | 521 | 1,158 | 1,014 | |||||||||||
16,607 | 15,203 | 32,540 | 29,904 | ||||||||||||
Operating income | 4,558 | 4,066 | 9,088 | 8,155 | |||||||||||
Other Income (Expense): | |||||||||||||||
Interest expense | (758 | ) | (732 | ) | (1,513 | ) | (1,435 | ) | |||||||
Investment income (loss), net | 64 | 58 | 123 | 88 | |||||||||||
Equity in net income (losses) of investees, net | 15 | (19 | ) | 51 | (30 | ) | |||||||||
Other income (expense), net | 20 | (15 | ) | 55 | 115 | ||||||||||
(659 | ) | (708 | ) | (1,284 | ) | (1,262 | ) | ||||||||
Income before income taxes | 3,899 | 3,358 | 7,804 | 6,893 | |||||||||||
Income tax expense | (1,364 | ) | (1,278 | ) | (2,622 | ) | (2,589 | ) | |||||||
Net income | 2,535 | 2,080 | 5,182 | 4,304 | |||||||||||
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock | (22 | ) | (52 | ) | (103 | ) | (142 | ) | |||||||
Net income attributable to Comcast Corporation | $ | 2,513 | $ | 2,028 | $ | 5,079 | $ | 4,162 | |||||||
Basic earnings per common share attributable to Comcast Corporation shareholders | $ | 0.53 | $ | 0.42 | $ | 1.07 | $ | 0.86 | |||||||
Diluted earnings per common share attributable to Comcast Corporation shareholders | $ | 0.52 | $ | 0.41 | $ | 1.05 | $ | 0.85 | |||||||
Dividends declared per common share | $ | 0.1575 | $ | 0.1375 | $ | 0.315 | $ | 0.275 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income | $ | 2,535 | $ | 2,080 | $ | 5,182 | $ | 4,304 | |||||||
Unrealized gains (losses) on marketable securities, net of deferred taxes of $52, $—, $(9) and $(1) | (87 | ) | 1 | 17 | 3 | ||||||||||
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(3), $35, $(7) and $53 | 5 | (60 | ) | 12 | (91 | ) | |||||||||
Amounts reclassified to net income: | |||||||||||||||
Realized (gains) losses on marketable securities, net of deferred taxes of $—, $—, $— and $1 | — | — | — | (1 | ) | ||||||||||
Realized (gains) losses on cash flow hedges, net of deferred taxes of $8, $(26), $8 and $(36) | (14 | ) | 45 | (14 | ) | 62 | |||||||||
Employee benefit obligations, net of deferred taxes of $4, $—, $(33) and $(2) | (6 | ) | — | 57 | 2 | ||||||||||
Currency translation adjustments, net of deferred taxes of $2, $(58), $(39) and $(116) | (11 | ) | 249 | 146 | 487 | ||||||||||
Comprehensive income | 2,422 | 2,315 | 5,400 | 4,766 | |||||||||||
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock | (22 | ) | (52 | ) | (103 | ) | (142 | ) | |||||||
Other comprehensive (income) loss attributable to noncontrolling interests | 5 | (150 | ) | (82 | ) | (287 | ) | ||||||||
Comprehensive income attributable to Comcast Corporation | $ | 2,405 | $ | 2,113 | $ | 5,215 | $ | 4,337 |
Six Months Ended June 30 | |||||||
(in millions) | 2017 | 2016 | |||||
Net cash provided by operating activities | $ | 10,814 | $ | 9,794 | |||
Investing Activities | |||||||
Capital expenditures | (4,405 | ) | (4,156 | ) | |||
Cash paid for intangible assets | (836 | ) | (737 | ) | |||
Acquisitions and construction of real estate properties | (250 | ) | (211 | ) | |||
Acquisitions, net of cash acquired | (398 | ) | (126 | ) | |||
Proceeds from sales of investments | 57 | 138 | |||||
Purchases of investments | (1,825 | ) | (580 | ) | |||
Other | 170 | (156 | ) | ||||
Net cash provided by (used in) investing activities | (7,487 | ) | (5,828 | ) | |||
Financing Activities | |||||||
Proceeds from (repayments of) short-term borrowings, net | (1,695 | ) | 205 | ||||
Proceeds from borrowings | 8,963 | 4,753 | |||||
Repurchases and repayments of debt | (4,967 | ) | (2,551 | ) | |||
Repurchases of common stock under repurchase program and employee plans | (2,476 | ) | (2,636 | ) | |||
Dividends paid | (1,404 | ) | (1,281 | ) | |||
Purchase of Universal Studios Japan noncontrolling interests | (2,299 | ) | — | ||||
Issuances of common stock | — | 19 | |||||
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock | (137 | ) | (125 | ) | |||
Other | 80 | 20 | |||||
Net cash provided by (used in) financing activities | (3,935 | ) | (1,596 | ) | |||
Increase (decrease) in cash and cash equivalents | (608 | ) | 2,370 | ||||
Cash and cash equivalents, beginning of period | 3,301 | 2,295 | |||||
Cash and cash equivalents, end of period | $ | 2,693 | $ | 4,665 |
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 | B | |||||||||||||||||||||||||
Balance, December 31, 2015 | $ | 1,221 | $ | 57 | $ | — | $ | 38,490 | $ | 21,413 | $ | (7,517 | ) | $ | (174 | ) | $ | 1,709 | $ | 53,978 | |||||||
Stock compensation plans | 422 | 422 | |||||||||||||||||||||||||
Repurchases of common stock under repurchase program and employee plans | (519 | ) | (2,121 | ) | (2,640 | ) | |||||||||||||||||||||
Employee stock purchase plans | 78 | 78 | |||||||||||||||||||||||||
Dividends declared | (1,337 | ) | (1,337 | ) | |||||||||||||||||||||||
Other comprehensive income (loss) | 175 | 287 | 462 | ||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests, net | 1 | (68 | ) | (68 | ) | ||||||||||||||||||||||
Other | (20 | ) | (31 | ) | 154 | 123 | |||||||||||||||||||||
Net income (loss) | 46 | 4,162 | 96 | 4,258 | |||||||||||||||||||||||
Balance, June 30, 2016 | $ | 1,248 | $ | 57 | $ | — | $ | 38,440 | $ | 22,117 | $ | (7,517 | ) | $ | 1 | $ | 2,178 | $ | 55,276 | ||||||||
Balance, December 31, 2016 | $ | 1,446 | $ | 56 | $ | — | $ | 38,230 | $ | 23,076 | $ | (7,517 | ) | $ | 98 | $ | 2,231 | $ | 56,174 | ||||||||
Stock compensation plans | 288 | 288 | |||||||||||||||||||||||||
Repurchases of common stock under repurchase program and employee plans | (379 | ) | (2,097 | ) | (2,476 | ) | |||||||||||||||||||||
Employee stock purchase plans | 94 | 94 | |||||||||||||||||||||||||
Dividends declared | (1,498 | ) | (1,498 | ) | |||||||||||||||||||||||
Other comprehensive income (loss) | 136 | 82 | 218 | ||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests, net | (27 | ) | (49 | ) | (49 | ) | |||||||||||||||||||||
Purchase of Universal Studios Japan noncontrolling interests | (696 | ) | 194 | (1,736 | ) | (2,238 | ) | ||||||||||||||||||||
Other | (9 | ) | (59 | ) | 253 | 194 | |||||||||||||||||||||
Net income (loss) | 41 | 5,079 | 62 | 5,141 | |||||||||||||||||||||||
Balance, June 30, 2017 | $ | 1,451 | $ | 56 | $ | — | $ | 37,478 | $ | 24,560 | $ | (7,517 | ) | $ | 428 | $ | 843 | $ | 55,848 |
Three Months Ended June 30 | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
(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 | $ | 2,513 | 4,728 | $ | 0.53 | $ | 2,028 | 4,839 | $ | 0.42 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Assumed exercise or issuance of shares relating to stock plans | 81 | 52 | |||||||||||||||||||
Diluted EPS attributable to Comcast Corporation shareholders | $ | 2,513 | 4,809 | $ | 0.52 | $ | 2,028 | 4,891 | $ | 0.41 |
Six Months Ended June 30 | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
(in millions, except per share amounts) | 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 | $ | 5,079 | 4,738 | $ | 1.07 | $ | 4,162 | 4,853 | $ | 0.86 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Assumed exercise or issuance of shares relating to stock plans | 82 | 55 | |||||||||||||||||||
Diluted EPS attributable to Comcast Corporation shareholders | $ | 5,079 | 4,820 | $ | 1.05 | $ | 4,162 | 4,908 | $ | 0.85 |
Allocation of Purchase Price | |||
(in millions) | |||
Film and television costs | $ | 854 | |
Intangible assets | 396 | ||
Working capital | 163 | ||
Debt | (381 | ) | |
Tax receivable agreement | (146 | ) | |
Deferred income taxes | 301 | ||
Other noncurrent assets and liabilities | 134 | ||
Identifiable net assets (liabilities) acquired | 1,321 | ||
Noncontrolling interests | (337 | ) | |
Goodwill | 2,789 | ||
Cash consideration transferred | $ | 3,773 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Film Costs: | |||||||
Released, less amortization | $ | 1,949 | $ | 1,750 | |||
Completed, not released | 93 | 50 | |||||
In production and in development | 813 | 1,310 | |||||
2,855 | 3,110 | ||||||
Television Costs: | |||||||
Released, less amortization | 1,888 | 1,953 | |||||
In production and in development | 751 | 853 | |||||
2,639 | 2,806 | ||||||
Programming rights, less amortization | 2,734 | 2,586 | |||||
8,228 | 8,502 | ||||||
Less: Current portion of programming rights | 1,633 | 1,250 | |||||
Film and television costs | $ | 6,595 | $ | 7,252 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Fair Value Method: | |||||||
Snap | $ | 522 | $ | — | |||
Other | 163 | 198 | |||||
685 | 198 | ||||||
Equity Method: | |||||||
Atairos | 2,233 | 1,601 | |||||
Hulu | 218 | 225 | |||||
Other | 653 | 550 | |||||
3,104 | 2,376 | ||||||
Cost Method: | |||||||
AirTouch | 1,606 | 1,599 | |||||
BuzzFeed | 400 | 400 | |||||
Other | 759 | 771 | |||||
2,765 | 2,770 | ||||||
Total investments | 6,554 | 5,344 | |||||
Less: Current investments | 33 | 97 | |||||
Noncurrent investments | $ | 6,521 | $ | 5,247 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Gains (losses) on sales and exchanges of investments, net | $ | — | $ | 13 | $ | (1 | ) | $ | 15 | ||||||
Investment impairment losses | (2 | ) | (1 | ) | (6 | ) | (21 | ) | |||||||
Interest and dividend income | 32 | 31 | 65 | 60 | |||||||||||
Other, net | 34 | 15 | 65 | 34 | |||||||||||
Investment income (loss), net | $ | 64 | $ | 58 | $ | 123 | $ | 88 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Restricted share units | $ | 111 | $ | 89 | $ | 185 | $ | 159 | |||||||
Stock options | 63 | 48 | 103 | 85 | |||||||||||
Employee stock purchase plans | 7 | 8 | 17 | 16 | |||||||||||
Total | $ | 181 | $ | 145 | $ | 305 | $ | 260 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Receivables, gross | $ | 8,459 | $ | 8,622 | |||
Less: Allowance for returns and customer incentives | 345 | 417 | |||||
Less: Allowance for doubtful accounts | 265 | 250 | |||||
Receivables, net | $ | 7,849 | $ | 7,955 |
(in millions) | June 30, 2017 | June 30, 2016 | |||||
Unrealized gains (losses) on marketable securities | $ | 17 | $ | 3 | |||
Deferred gains (losses) on cash flow hedges | (16 | ) | (75 | ) | |||
Unrecognized gains (losses) on employee benefit obligations | 276 | 8 | |||||
Cumulative translation adjustments | 151 | 65 | |||||
Accumulated other comprehensive income (loss), net of deferred taxes | $ | 428 | $ | 1 |
Six Months Ended June 30 | |||||||
(in millions) | 2017 | 2016 | |||||
Net income | $ | 5,182 | $ | 4,304 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,043 | 4,667 | |||||
Share-based compensation | 391 | 331 | |||||
Noncash interest expense (income), net | 122 | 113 | |||||
Equity in net (income) losses of investees, net | (51 | ) | 30 | ||||
Cash received from investees | 49 | 42 | |||||
Net (gain) loss on investment activity and other | (110 | ) | (126 | ) | |||
Deferred income taxes | 470 | 618 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||
Current and noncurrent receivables, net | 18 | 172 | |||||
Film and television costs, net | 277 | (171 | ) | ||||
Accounts payable and accrued expenses related to trade creditors | (144 | ) | (104 | ) | |||
Other operating assets and liabilities | (433 | ) | (82 | ) | |||
Net cash provided by operating activities | $ | 10,814 | $ | 9,794 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest | $ | 477 | $ | 512 | $ | 1,372 | $ | 1,235 | |||||||
Income taxes | $ | 2,077 | $ | 1,495 | $ | 2,209 | $ | 1,685 |
• | we acquired $1.3 billion of property and equipment and intangible assets that were accrued but unpaid |
• | we recorded a liability of $742 million for a quarterly cash dividend of $0.1575 per common share to be paid in July 2017 |
• | Cable Communications: Consists of the operations of Comcast Cable, which is one of the nation’s largest providers of video, high-speed Internet, voice, and security and automation services to residential customers under the XFINITY brand; we also provide these and other services to business customers 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 studio 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 studio production operations. |
• | Filmed Entertainment: Consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, Focus Features and DreamWorks Animation names. |
• | Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. |
Three Months Ended June 30, 2017 | ||||||||||||||||||
(in millions) | Revenue(e) | Adjusted EBITDA(f) | Depreciation and Amortization | Operating Income (Loss) | Capital Expenditures | Cash Paid for Intangible Assets | ||||||||||||
Cable Communications(a) | $ | 13,122 | $ | 5,320 | $ | 2,001 | $ | 3,319 | $ | 1,956 | $ | 327 | ||||||
NBCUniversal | ||||||||||||||||||
Cable Networks | 2,696 | 1,055 | 181 | 874 | 8 | 4 | ||||||||||||
Broadcast Television | 2,241 | 416 | 31 | 385 | 30 | 4 | ||||||||||||
Filmed Entertainment | 2,155 | 285 | 26 | 259 | 19 | 6 | ||||||||||||
Theme Parks | 1,314 | 551 | 186 | 365 | 243 | 26 | ||||||||||||
Headquarters and Other(b) | 9 | (235 | ) | 96 | (331 | ) | 38 | 33 | ||||||||||
Eliminations(c) | (84 | ) | (1 | ) | — | (1 | ) | — | — | |||||||||
NBCUniversal | 8,331 | 2,071 | 520 | 1,551 | 338 | 73 | ||||||||||||
Corporate and Other(d) | 205 | (302 | ) | 20 | (322 | ) | 33 | 20 | ||||||||||
Eliminations(c) | (493 | ) | 10 | — | 10 | — | — | |||||||||||
Comcast Consolidated | $ | 21,165 | $ | 7,099 | $ | 2,541 | $ | 4,558 | $ | 2,327 | $ | 420 |
Three Months Ended June 30, 2016 | ||||||||||||||||||
(in millions) | Revenue(e) | Adjusted EBITDA(f) | Depreciation and Amortization | Operating Income (Loss) | Capital Expenditures | Cash Paid for Intangible Assets | ||||||||||||
Cable Communications(a) | $ | 12,444 | $ | 5,048 | $ | 1,904 | $ | 3,144 | $ | 1,881 | $ | 289 | ||||||
NBCUniversal | ||||||||||||||||||
Cable Networks | 2,566 | 944 | 187 | 757 | 7 | 3 | ||||||||||||
Broadcast Television | 2,128 | 394 | 30 | 364 | 30 | 3 | ||||||||||||
Filmed Entertainment | 1,351 | 56 | 12 | 44 | 5 | 3 | ||||||||||||
Theme Parks | 1,136 | 469 | 145 | 324 | 240 | 20 | ||||||||||||
Headquarters and Other(b) | 6 | (175 | ) | 91 | (266 | ) | 78 | 33 | ||||||||||
Eliminations(c) | (84 | ) | 1 | — | 1 | — | — | |||||||||||
NBCUniversal | 7,103 | 1,689 | 465 | 1,224 | 360 | 62 | ||||||||||||
Corporate and Other(d) | 180 | (291 | ) | 20 | (311 | ) | 30 | 8 | ||||||||||
Eliminations(c) | (458 | ) | 9 | — | 9 | — | — | |||||||||||
Comcast Consolidated | $ | 19,269 | $ | 6,455 | $ | 2,389 | $ | 4,066 | $ | 2,271 | $ | 359 |
Six Months Ended June 30, 2017 | ||||||||||||||||||
(in millions) | Revenue(e) | Adjusted EBITDA(f) | Depreciation and Amortization | Operating Income (Loss) | Capital Expenditures | Cash Paid for Intangible Assets | ||||||||||||
Cable Communications(a) | $ | 26,034 | $ | 10,518 | $ | 3,981 | $ | 6,537 | $ | 3,737 | $ | 679 | ||||||
NBCUniversal | ||||||||||||||||||
Cable Networks | 5,337 | 2,171 | 395 | 1,776 | 10 | 7 | ||||||||||||
Broadcast Television | 4,449 | 738 | 63 | 675 | 59 | 7 | ||||||||||||
Filmed Entertainment | 4,136 | 653 | 47 | 606 | 29 | 11 | ||||||||||||
Theme Parks | 2,432 | 948 | 328 | 620 | 472 | 39 | ||||||||||||
Headquarters and Other(b) | 17 | (420 | ) | 195 | (615 | ) | 53 | 64 | ||||||||||
Eliminations(c) | (172 | ) | (2 | ) | — | (2 | ) | — | — | |||||||||
NBCUniversal | 16,199 | 4,088 | 1,028 | 3,060 | 623 | 128 | ||||||||||||
Corporate and Other(d) | 413 | (496 | ) | 34 | (530 | ) | 45 | 29 | ||||||||||
Eliminations(c) | (1,018 | ) | 21 | — | 21 | — | — | |||||||||||
Comcast Consolidated | $ | 41,628 | $ | 14,131 | $ | 5,043 | $ | 9,088 | $ | 4,405 | $ | 836 |
Six Months Ended June 30, 2016 | ||||||||||||||||||
(in millions) | Revenue(e) | Adjusted EBITDA(f) | Depreciation and Amortization | Operating Income (Loss) | Capital Expenditures | Cash Paid for Intangible Assets | ||||||||||||
Cable Communications(a) | $ | 24,648 | $ | 9,937 | $ | 3,747 | $ | 6,190 | $ | 3,457 | $ | 613 | ||||||
NBCUniversal | ||||||||||||||||||
Cable Networks | 5,019 | 1,900 | 377 | 1,523 | 8 | 4 | ||||||||||||
Broadcast Television | 4,212 | 678 | 62 | 616 | 49 | 6 | ||||||||||||
Filmed Entertainment | 2,734 | 223 | 20 | 203 | 8 | 6 | ||||||||||||
Theme Parks | 2,162 | 844 | 243 | 601 | 440 | 29 | ||||||||||||
Headquarters and Other(b) | 9 | (335 | ) | 177 | (512 | ) | 150 | 69 | ||||||||||
Eliminations(c) | (172 | ) | 1 | — | 1 | — | — | |||||||||||
NBCUniversal | 13,964 | 3,311 | 879 | 2,432 | 655 | 114 | ||||||||||||
Corporate and Other(d) | 379 | (445 | ) | 41 | (486 | ) | 44 | 10 | ||||||||||
Eliminations(c) | (932 | ) | 19 | — | 19 | — | — | |||||||||||
Comcast Consolidated | $ | 38,059 | $ | 12,822 | $ | 4,667 | $ | 8,155 | $ | 4,156 | $ | 737 |
(a) | For the three and six months ended June 30, 2017 and 2016, Cable Communications segment revenue was derived from the following sources: |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Residential: | |||||||||||
Video | 44.2 | % | 44.9 | % | 44.4 | % | 45.1 | % | |||
High-speed Internet | 28.0 | % | 27.1 | % | 28.0 | % | 27.0 | % | |||
Voice | 6.5 | % | 7.2 | % | 6.6 | % | 7.3 | % | |||
Business services | 11.7 | % | 10.9 | % | 11.6 | % | 10.8 | % | |||
Advertising | 4.4 | % | 4.7 | % | 4.2 | % | 4.6 | % | |||
Other | 5.2 | % | 5.2 | % | 5.2 | % | 5.2 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(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 segment generates revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount |
• | our Broadcast Television segment generates revenue from the fees received under retransmission consent agreements with our Cable Communications segment |
• | our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment |
• | our Filmed Entertainment and Broadcast Television segments generate revenue from the licensing of film and television content to our Cable Networks segment |
(d) | Corporate and Other activities include costs associated with overhead and personnel, the costs of other business initiatives, including our new wireless phone service, and the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses. |
(e) | No single customer accounted for a significant amount of revenue in any period. |
(f) | We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, other income (expense) items, net, and depreciation and amortization, and excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. Other income (expense) items, net include interest expense, investment income (loss), equity in net income (losses) of investees, and other income (expense), net (as stated in our condensed consolidated statement of income). 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 and tax structures and by our 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), 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. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below. |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Adjusted EBITDA | $ | 7,099 | $ | 6,455 | $ | 14,131 | $ | 12,822 | |||||||
Depreciation | (1,970 | ) | (1,868 | ) | (3,885 | ) | (3,653 | ) | |||||||
Amortization | (571 | ) | (521 | ) | (1,158 | ) | (1,014 | ) | |||||||
Other income (expense) items, net | (659 | ) | (708 | ) | (1,284 | ) | (1,262 | ) | |||||||
Income before income taxes | $ | 3,899 | $ | 3,358 | $ | 7,804 | $ | 6,893 |
(in millions) | Comcast Parent | Comcast Holdings | CCCL Parent | NBCUniversal Media Parent | Non- Guarantor Subsidiaries | Elimination and Consolidation Adjustments | Consolidated Comcast Corporation | ||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | 310 | $ | 2,383 | $ | — | $ | 2,693 | |||||||
Receivables, net | — | — | — | — | 7,849 | — | 7,849 | ||||||||||||||
Programming rights | — | — | — | — | 1,633 | — | 1,633 | ||||||||||||||
Other current assets | 67 | — | — | 21 | 2,569 | — | 2,657 | ||||||||||||||
Total current assets | 67 | — | — | 331 | 14,434 | — | 14,832 | ||||||||||||||
Film and television costs | — | — | — | — | 6,595 | — | 6,595 | ||||||||||||||
Investments | 96 | 1 | 15 | 690 | 5,719 | — | 6,521 | ||||||||||||||
Investments in and amounts due from subsidiaries eliminated upon consolidation | 101,430 | 126,187 | 124,549 | 49,038 | 110,545 | (511,749 | ) | — | |||||||||||||
Property and equipment, net | 434 | — | — | — | 36,737 | — | 37,171 | ||||||||||||||
Franchise rights | — | — | — | — | 59,364 | — | 59,364 | ||||||||||||||
Goodwill | — | — | — | — | 36,742 | — | 36,742 | ||||||||||||||
Other intangible assets, net | 11 | — | — | — | 18,896 | — | 18,907 | ||||||||||||||
Other noncurrent assets, net | 1,149 | 658 | — | 83 | 2,035 | (1,026 | ) | 2,899 | |||||||||||||
Total assets | $ | 103,187 | $ | 126,846 | $ | 124,564 | $ | 50,142 | $ | 291,067 | $ | (512,775 | ) | $ | 183,031 | ||||||
Liabilities and Equity | |||||||||||||||||||||
Accounts payable and accrued expenses related to trade creditors | $ | 12 | $ | — | $ | — | $ | — | $ | 6,718 | $ | — | $ | 6,730 | |||||||
Accrued participations and residuals | — | — | — | — | 1,882 | — | 1,882 | ||||||||||||||
Accrued expenses and other current liabilities | 1,887 | 92 | 295 | 286 | 4,746 | — | 7,306 | ||||||||||||||
Current portion of long-term debt | 4,032 | — | — | 4 | 2,322 | — | 6,358 | ||||||||||||||
Total current liabilities | 5,931 | 92 | 295 | 290 | 15,668 | — | 22,276 | ||||||||||||||
Long-term debt, less current portion | 39,725 | 142 | 2,100 | 8,204 | 7,039 | — | 57,210 | ||||||||||||||
Deferred income taxes | — | 508 | — | 70 | 35,886 | (1,055 | ) | 35,409 | |||||||||||||
Other noncurrent liabilities | 2,526 | — | — | 1,111 | 7,171 | 29 | 10,837 | ||||||||||||||
Redeemable noncontrolling interests and redeemable subsidiary preferred stock | — | — | — | — | 1,451 | — | 1,451 | ||||||||||||||
Equity: | |||||||||||||||||||||
Common stock | 56 | — | — | — | — | — | 56 | ||||||||||||||
Other shareholders’ equity | 54,949 | 126,104 | 122,169 | 40,467 | 223,009 | (511,749 | ) | 54,949 | |||||||||||||
Total Comcast Corporation shareholders’ equity | 55,005 | 126,104 | 122,169 | 40,467 | 223,009 | (511,749 | ) | 55,005 | |||||||||||||
Noncontrolling interests | — | — | — | — | 843 | — | 843 | ||||||||||||||
Total equity | 55,005 | 126,104 | 122,169 | 40,467 | 223,852 | (511,749 | ) | 55,848 | |||||||||||||
Total liabilities and equity | $ | 103,187 | $ | 126,846 | $ | 124,564 | $ | 50,142 | $ | 291,067 | $ | (512,775 | ) | $ | 183,031 |
(in millions) | Comcast Parent | Comcast Holdings | CCCL Parent | NBCUniversal Media Parent | Non- Guarantor Subsidiaries | Elimination and Consolidation Adjustments | Consolidated Comcast Corporation | ||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | 482 | $ | 2,819 | $ | — | $ | 3,301 | |||||||
Receivables, net | — | — | — | — | 7,955 | — | 7,955 | ||||||||||||||
Programming rights | — | — | — | — | 1,250 | — | 1,250 | ||||||||||||||
Other current assets | 151 | — | — | 36 | 3,668 | — | 3,855 | ||||||||||||||
Total current assets | 151 | — | — | 518 | 15,692 | — | 16,361 | ||||||||||||||
Film and television costs | — | — | — | — | 7,252 | — | 7,252 | ||||||||||||||
Investments | 75 | — | — | 651 | 4,521 | — | 5,247 | ||||||||||||||
Investments in and amounts due from subsidiaries eliminated upon consolidation | 98,350 | 120,071 | 117,696 | 47,393 | 97,704 | (481,214 | ) | — | |||||||||||||
Property and equipment, net | 298 | — | — | — | 35,955 | — | 36,253 | ||||||||||||||
Franchise rights | — | — | — | — | 59,364 | — | 59,364 | ||||||||||||||
Goodwill | — | — | — | — | 35,980 | — | 35,980 | ||||||||||||||
Other intangible assets, net | 13 | — | — | — | 17,261 | — | 17,274 | ||||||||||||||
Other noncurrent assets, net | 1,138 | 638 | — | 89 | 1,921 | (1,017 | ) | 2,769 | |||||||||||||
Total assets | $ | 100,025 | $ | 120,709 | $ | 117,696 | $ | 48,651 | $ | 275,650 | $ | (482,231 | ) | $ | 180,500 | ||||||
Liabilities and Equity | |||||||||||||||||||||
Accounts payable and accrued expenses related to trade creditors | $ | 23 | $ | — | $ | — | $ | — | $ | 6,892 | $ | — | $ | 6,915 | |||||||
Accrued participations and residuals | — | — | — | — | 1,726 | — | 1,726 | ||||||||||||||
Accrued expenses and other current liabilities | 1,726 | — | 341 | 302 | 5,045 | — | 7,414 | ||||||||||||||
Current portion of long-term debt | 3,739 | — | 550 | 4 | 1,187 | — | 5,480 | ||||||||||||||
Total current liabilities | 5,488 | — | 891 | 306 | 14,850 | — | 21,535 | ||||||||||||||
Long-term debt, less current portion | 38,123 | 141 | 2,100 | 8,208 | 6,994 | — | 55,566 | ||||||||||||||
Deferred income taxes | — | 542 | — | 70 | 35,259 | (1,017 | ) | 34,854 | |||||||||||||
Other noncurrent liabilities | 2,471 | — | — | 1,166 | 7,288 | — | 10,925 | ||||||||||||||
Redeemable noncontrolling interests and redeemable subsidiary preferred stock | — | — | — | — | 1,446 | — |