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 June 30, 2016
OR
| ¨ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the Transition Period from to
| Commission File Number | Registrant; State of Incorporation; Address and Telephone Number |
I.R.S. Employer Identification No. | ||
| 001-32871 | COMCAST CORPORATION | 27-0000798 | ||
| PENNSYLVANIA One Comcast Center Philadelphia, PA 19103-2838 (215) 286-1700 |
||||
| 001-36438 | NBCUNIVERSAL MEDIA, LLC | 14-1682529 | ||
| DELAWARE 30 Rockefeller Plaza New York, NY 10112-0015 (212) 664-4444 |
||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| Comcast Corporation |
Yes x |
No ¨ | ||
| NBCUniversal Media, LLC |
Yes x |
No ¨ |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such period that the registrant was required to submit and post such files).
| Comcast Corporation |
Yes x |
No ¨ | ||
| NBCUniversal Media, LLC |
Yes x |
No ¨ |
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
| Comcast Corporation |
Large accelerated filer | x | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ¨ | ||||||||
| NBCUniversal Media, LLC |
Large accelerated filer | ¨ | Accelerated filer | ¨ | Non-accelerated filer | x | Smaller reporting company | ¨ |
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
| Comcast Corporation |
Yes ¨ |
No x | ||
| NBCUniversal Media, LLC |
Yes ¨ |
No x |
Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practical date:
As of June 30, 2016, there were 2,402,381,311 shares of Comcast Corporation Class A 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
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 six months ended June 30, 2016. This Quarterly Report modifies and supersedes documents filed before it. 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,”
Table of Contents
“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 alternative methods 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 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 |
Table of Contents
PART I: FINANCIAL INFORMATION
Comcast Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
| (in millions, except share data) | June 30, 2016 |
December 31, 2015 |
||||||
| Assets |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 4,665 | $ | 2,295 | ||||
| Receivables, net |
6,708 | 6,896 | ||||||
| Programming rights |
1,435 | 1,213 | ||||||
| Other current assets |
1,969 | 1,899 | ||||||
| Total current assets |
14,777 | 12,303 | ||||||
| Film and television costs |
5,811 | 5,855 | ||||||
| Investments |
3,679 | 3,224 | ||||||
| Property and equipment, net of accumulated depreciation of $49,119 and $48,100 |
34,896 | 33,665 | ||||||
| Franchise rights |
59,364 | 59,364 | ||||||
| Goodwill |
33,792 | 32,945 | ||||||
| Other intangible assets, net of accumulated amortization of $10,299 and $9,868 |
17,204 | 16,946 | ||||||
| Other noncurrent assets, net |
2,462 | 2,272 | ||||||
| Total assets |
$ | 171,985 | $ | 166,574 | ||||
| Liabilities and Equity |
||||||||
| Current Liabilities: |
||||||||
| Accounts payable and accrued expenses related to trade creditors |
$ | 6,359 | $ | 6,215 | ||||
| Accrued participations and residuals |
1,542 | 1,572 | ||||||
| Deferred revenue |
1,611 | 1,302 | ||||||
| Accrued expenses and other current liabilities |
5,155 | 5,462 | ||||||
| Current portion of long-term debt |
2,934 | 3,627 | ||||||
| Total current liabilities |
17,601 | 18,178 | ||||||
| Long-term debt, less current portion |
52,629 | 48,994 | ||||||
| Deferred income taxes |
34,512 | 33,566 | ||||||
| Other noncurrent liabilities |
10,719 | 10,637 | ||||||
| Commitments and contingencies (Note 12) |
||||||||
| Redeemable noncontrolling interests and redeemable subsidiary preferred stock |
1,248 | 1,221 | ||||||
| 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, 2,838,776,825 and 2,869,349,502; outstanding, 2,402,381,311 and 2,432,953,988 |
28 | 29 | ||||||
| Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375 |
— | — | ||||||
| Additional paid-in capital |
38,469 | 38,518 | ||||||
| Retained earnings |
22,117 | 21,413 | ||||||
| Treasury stock, 436,395,514 Class A common shares |
(7,517 | ) | (7,517 | ) | ||||
| Accumulated other comprehensive income (loss) |
1 | (174 | ) | |||||
| Total Comcast Corporation shareholders’ equity |
53,098 | 52,269 | ||||||
| Noncontrolling interests |
2,178 | 1,709 | ||||||
| Total equity |
55,276 | 53,978 | ||||||
| Total liabilities and equity |
$ | 171,985 | $ | 166,574 | ||||
See accompanying notes to condensed consolidated financial statements.
1
Table of Contents
Comcast Corporation
Condensed Consolidated Statement of Income
(Unaudited)
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| (in millions, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenue |
$ | 19,269 | $ | 18,743 | $ | 38,059 | $ | 36,596 | ||||||||
| Costs and Expenses: |
||||||||||||||||
| Programming and production |
5,492 | 5,669 | 10,923 | 11,132 | ||||||||||||
| Other operating and administrative |
5,761 | 5,274 | 11,286 | 10,348 | ||||||||||||
| Advertising, marketing and promotion |
1,561 | 1,534 | 3,028 | 2,894 | ||||||||||||
| Depreciation |
1,868 | 1,674 | 3,653 | 3,308 | ||||||||||||
| Amortization |
521 | 487 | 1,014 | 919 | ||||||||||||
| 15,203 | 14,638 | 29,904 | 28,601 | |||||||||||||
| Operating income |
4,066 | 4,105 | 8,155 | 7,995 | ||||||||||||
| Other Income (Expense): |
||||||||||||||||
| Interest expense |
(732 | ) | (713 | ) | (1,435 | ) | (1,369 | ) | ||||||||
| Investment income (loss), net |
58 | 17 | 88 | 50 | ||||||||||||
| Equity in net income (losses) of investees, net |
(19 | ) | (236 | ) | (30 | ) | (203 | ) | ||||||||
| Other income (expense), net |
(15 | ) | 315 | 115 | 417 | |||||||||||
| (708 | ) | (617 | ) | (1,262 | ) | (1,105 | ) | |||||||||
| Income before income taxes |
3,358 | 3,488 | 6,893 | 6,890 | ||||||||||||
| Income tax expense |
(1,278 | ) | (1,313 | ) | (2,589 | ) | (2,574 | ) | ||||||||
| Net income |
2,080 | 2,175 | 4,304 | 4,316 | ||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock |
(52 | ) | (38 | ) | (142 | ) | (120 | ) | ||||||||
| Net income attributable to Comcast Corporation |
$ | 2,028 | $ | 2,137 | $ | 4,162 | $ | 4,196 | ||||||||
| Basic earnings per common share attributable to Comcast Corporation shareholders |
$ | 0.84 | $ | 0.85 | $ | 1.71 | $ | 1.67 | ||||||||
| Diluted earnings per common share attributable to Comcast Corporation shareholders |
$ | 0.83 | $ | 0.84 | $ | 1.70 | $ | 1.65 | ||||||||
| Dividends declared per common share |
$ | 0.275 | $ | 0.25 | $ | 0.55 | $ | 0.50 | ||||||||
See accompanying notes to condensed consolidated financial statements.
2
Table of Contents
Comcast Corporation
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| (in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net income |
$ | 2,080 | $ | 2,175 | $ | 4,304 | $ | 4,316 | ||||||||
| Unrealized gains (losses) on marketable securities, net of deferred taxes of $—, $—, $(1) and $— |
1 | — | 3 | — | ||||||||||||
| Deferred gains (losses) on cash flow hedges, net of deferred taxes of $35, $(13), $53 and $10 |
(60 | ) | 22 | (91 | ) | (17 | ) | |||||||||
| Amounts reclassified to net income: |
||||||||||||||||
| Realized (gains) losses on marketable securities, net of deferred taxes of $—, $—, $1 and $— |
— | — | (1 | ) | — | |||||||||||
| Realized (gains) losses on cash flow hedges, net of deferred taxes of $(26), $16, $(36) and $(6) |
45 | (27 | ) | 62 | 10 | |||||||||||
| Employee benefit obligations, net of deferred taxes of $—, $—, $(2) and $— |
— | — | 2 | — | ||||||||||||
| Currency translation adjustments, net of deferred taxes of $(58), $(15), $(116) and $8 |
249 | 32 | 487 | (23 | ) | |||||||||||
| Comprehensive income |
2,315 | 2,202 | 4,766 | 4,286 | ||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock |
(52 | ) | (38 | ) | (142 | ) | (120 | ) | ||||||||
| Other comprehensive (income) loss attributable to noncontrolling interests |
(150 | ) | (5 | ) | (287 | ) | 10 | |||||||||
| Comprehensive income attributable to Comcast Corporation |
$ | 2,113 | $ | 2,159 | $ | 4,337 | $ | 4,176 | ||||||||
See accompanying notes to condensed consolidated financial statements.
3
Table of Contents
Comcast Corporation
Condensed Consolidated Statement of Cash Flows
(Unaudited)
| Six Months Ended June 30 |
||||||||
| (in millions) | 2016 | 2015 | ||||||
| Net cash provided by operating activities |
$ | 9,383 | $ | 8,834 | ||||
| Investing Activities |
||||||||
| Capital expenditures |
(4,156 | ) | (3,697 | ) | ||||
| Cash paid for intangible assets |
(737 | ) | (600 | ) | ||||
| Acquisitions and construction of real estate properties |
(211 | ) | (65 | ) | ||||
| Acquisitions, net of cash acquired |
(126 | ) | (179 | ) | ||||
| Proceeds from sales of businesses and investments |
138 | 395 | ||||||
| Purchases of investments |
(580 | ) | (272 | ) | ||||
| Other |
(156 | ) | 182 | |||||
| Net cash provided by (used in) investing activities |
(5,828 | ) | (4,236 | ) | ||||
| Financing Activities |
||||||||
| Proceeds from (repayments of) short-term borrowings, net |
205 | (137 | ) | |||||
| Proceeds from borrowings |
4,753 | 3,996 | ||||||
| Repurchases and repayments of debt |
(2,551 | ) | (3,666 | ) | ||||
| Repurchases and retirements of common stock |
(2,385 | ) | (3,585 | ) | ||||
| Dividends paid |
(1,281 | ) | (1,200 | ) | ||||
| Issuances of common stock |
19 | 32 | ||||||
| Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock |
(125 | ) | (114 | ) | ||||
| Other |
180 | (348 | ) | |||||
| Net cash provided by (used in) financing activities |
(1,185 | ) | (5,022 | ) | ||||
| Increase (decrease) in cash and cash equivalents |
2,370 | (424 | ) | |||||
| Cash and cash equivalents, beginning of period |
2,295 | 3,910 | ||||||
| Cash and cash equivalents, end of period |
$ | 4,665 | $ | 3,486 | ||||
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, 2014 |
$ | 1,066 | $ | 25 | $ | 5 | $ | — | $ | 38,805 | $ | 21,539 | $ | (7,517 | ) | $ | (146 | ) | $ | 357 | $ | 53,068 | ||||||||||||||||||||||||||
| Stock compensation plans |
436 | (308 | ) | 128 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchases and retirements of common stock |
(1 | ) | (724 | ) | (2,860 | ) | (3,585 | ) | ||||||||||||||||||||||||||||||||||||||||
| Employee stock purchase plans |
71 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared |
(1,254 | ) | (1,254 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
(20 | ) | (10 | ) | (30 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Contributions from (distributions to) noncontrolling interests, net |
4 | (73 | ) | (73 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Other |
(2 | ) | 153 | (25 | ) | 128 | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) |
40 | 4,196 | 80 | 4,276 | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2015 |
$ | 1,108 | $ | 25 | $ | 4 | $ | — | $ | 38,741 | $ | 21,313 | $ | (7,517 | ) | $ | (166 | ) | $ | 329 | $ | 52,729 | ||||||||||||||||||||||||||
| Balance, December 31, 2015 |
$ | 1,221 | $ | 29 | $ | — | $ | — | $ | 38,518 | $ | 21,413 | $ | (7,517 | ) | $ | (174 | ) | $ | 1,709 | $ | 53,978 | ||||||||||||||||||||||||||
| Stock compensation plans |
377 | (212 | ) | 165 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchases and retirements of common stock |
(1 | ) | (475 | ) | (1,909 | ) | (2,385 | ) | ||||||||||||||||||||||||||||||||||||||||
| 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 | ) | (29 | ) | 154 | 125 | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) |
46 | 4,162 | 96 | 4,258 | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2016 |
$ | 1,248 | $ | 28 | $ | — | $ | — | $ | 38,469 | $ | 22,117 | $ | (7,517 | ) | $ | 1 | $ | 2,178 | $ | 55,276 | |||||||||||||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
5
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 2015 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 2016.
Note 2: Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (“FASB”) 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. The updated accounting guidance is effective for us as of January 1, 2018. 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, the 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. We have adopted this guidance as of January 1, 2016 and it did not have a material impact on our consolidated financial statements.
Financial Assets and Financial Liabilities
In January 2016, the FASB updated the accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The updated accounting guidance, among other things, requires that all nonconsolidated equity investments, except those accounted for under the equity method, be measured at fair value and that the changes in fair value be recognized in net income. The updated guidance is effective for us as of January 1, 2018. The updated accounting guidance requires a cumulative effect adjustment to beginning retained earnings when the guidance is adopted with certain exceptions. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.
Leases
In February 2016, the FASB updated the accounting guidance related to leases. The updated accounting guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the
6
Table of Contents
Comcast Corporation
exception of short-term leases. For a lessee, the recognition, measurement and presentation of expenses and cash flows arising from a lease do not significantly change from previous guidance. For a lessor, the accounting applied is also largely unchanged from previous guidance. The updated guidance is effective for us as of January 1, 2019 and early adoption is permitted. The updated accounting guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.
Share-Based Compensation
In March 2016, the FASB updated the accounting guidance that affects several aspects of the accounting for share-based compensation. The most significant change for us relates to the presentation of the income and withholding tax consequences of share-based compensation in our consolidated financial statements. Among the changes, the updated guidance requires that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statement of income be recognized as income tax benefit or expense in the statement of income rather than as additional paid-in capital in the balance sheet. The guidance also states that excess income tax benefits should not be presented separately from other income taxes in the statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. In addition, the updated guidance requires when an employer withholds shares upon exercise of options or the vesting of restricted stock for the purpose of meeting withholding tax requirements, that the cash paid for withholding taxes be classified as a financing activity. We currently record these amounts within operating activities.
The updated guidance is effective for us as of January 1, 2017 and early adoption is permitted. The updated guidance provides companies with alternative methods of adoption, with certain items that are allowed to be applied retrospectively and certain other items that are only to be applied prospectively in the period of adoption. We are currently in the process of determining our method of adoption of this updated accounting guidance.
If we had adopted the provisions of the updated guidance as of January 1, 2016, it would have increased net income attributable to Comcast Corporation by $48 million and $159 million for the three and six months ended June 30, 2016, respectively. In addition, the updated guidance would have increased net cash provided by operating activities and decreased net cash provided by (used in) financing activities by $411 million for the six months ended June 30, 2016. The most significant impact of implementing the new guidance is expected to occur in the first quarter of each year as a result of the vesting of restricted stock awards, which primarily occurs in March.
Note 3: Earnings Per Share
Computation of Diluted EPS
| Three Months Ended June 30 | ||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||
| (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 |
$ | 2,028 | 2,420 | $ | 0.84 | $ | 2,137 | 2,500 | $ | 0.85 | ||||||||||||||
| Effect of dilutive securities: |
||||||||||||||||||||||||
| Assumed exercise or issuance of shares relating to stock plans |
26 | 31 | ||||||||||||||||||||||
| Diluted EPS attributable to Comcast Corporation shareholders |
$ | 2,028 | 2,446 | $ | 0.83 | $ | 2,137 | 2,531 | $ | 0.84 | ||||||||||||||
7
Table of Contents
Comcast Corporation
| Six Months Ended June 30 | ||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||
| (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 |
$ | 4,162 | 2,427 | $ | 1.71 | $ | 4,196 | 2,510 | $ | 1.67 | ||||||||||||||
| Effect of dilutive securities: |
||||||||||||||||||||||||
| Assumed exercise or issuance of shares relating to stock plans |
27 | 34 | ||||||||||||||||||||||
| Diluted EPS attributable to Comcast Corporation shareholders |
$ | 4,162 | 2,454 | $ | 1.70 | $ | 4,196 | 2,544 | $ | 1.65 | ||||||||||||||
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 six months ended June 30, 2016 and 2015.
Note 4: Significant Transactions
DreamWorks
On April 28, 2016, we entered into an agreement to acquire all of the outstanding stock of DreamWorks Animation SKG, Inc. (“DreamWorks”) for approximately $3.8 billion. DreamWorks stockholders will receive $41 in cash for each share of DreamWorks common stock. DreamWorks creates animated feature films, television series and specials, live entertainment and related consumer products. The transaction is expected to close in 2016, subject to receipt of certain international regulatory approvals and the satisfaction of other customary closing conditions.
Universal Studios Japan
On November 13, 2015, NBCUniversal acquired a 51% economic interest in the Universal Studios theme park in Osaka, Japan (“Universal Studios Japan”) for $1.5 billion. The acquisition was funded through cash on hand and borrowings under our commercial paper program.
Universal Studios Japan is a VIE based on the governance structure and we consolidate Universal Studios Japan as we have the power to direct activities that most significantly impact its economic performance. There are no liquidity arrangements, guarantees, or other financial commitments between us and Universal Studios Japan, and therefore our maximum risk of financial loss is NBCUniversal’s 51% interest. Universal Studios Japan’s results of operations are reported in our Theme Parks segment following the acquisition date.
Preliminary Allocation of Purchase Price
The acquired assets and liabilities of Universal Studios Japan and the 49% noncontrolling interest were recorded at their estimated fair values. During the three months ended June 30, 2016, we updated the preliminary allocation of purchase price for Universal Studios Japan based on valuation analyses, which resulted in increases to property and equipment and intangible assets and a decrease in goodwill. The changes did not have a material impact on our consolidated financial statements. We may adjust these amounts further as valuations are finalized and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.
8
Table of Contents
Comcast Corporation
The table below presents the preliminary allocation of the purchase price to the assets and liabilities of Universal Studios Japan.
Preliminary Allocation of Purchase Price
| (in millions) | ||||
| Property and equipment |
$ | 793 | ||
| Intangible assets |
323 | |||
| Working capital |
(33) | |||
| Debt |
(3,271) | |||
| Other noncurrent assets and liabilities |
43 | |||
| Identifiable net assets (liabilities) acquired |
(2,145) | |||
| Noncontrolling interest |
(1,440) | |||
| Goodwill |
5,084 | |||
| Cash consideration transferred |
$ | 1,499 | ||
Actual and Unaudited Pro Forma Results
Our consolidated revenue for the three and six months ended June 30, 2016 included $283 million and $576 million, respectively, from the acquisition of Universal Studios Japan. Our consolidated net income attributable to Comcast Corporation for the three and six months ended June 30, 2016 included $10 million and $28 million, respectively, from the acquisition of Universal Studios Japan.
The following unaudited pro forma information has been presented as if the acquisition occurred on January 1, 2014. This information is primarily based on historical results of operations and is subject to change as valuations are finalized. In addition, the unaudited pro forma accounting adjustments are not necessarily indicative of what our results would have been had we operated Universal Studios Japan since January 1, 2014. No pro forma adjustments have been made for our transaction-related expenses.
| (in millions, except per share amounts) | Three Months Ended June 30, 2015 |
Six Months Ended June 30, 2015 |
||||||
| Revenue |
$ | 18,997 | $ | 37,134 | ||||
| Net income |
$ | 2,208 | $ | 4,385 | ||||
| Net income attributable to Comcast Corporation |
$ | 2,153 | $ | 4,230 | ||||
| Basic earnings per common share attributable to Comcast Corporation shareholders |
$ | 0.86 | $ | 1.69 | ||||
| Diluted earnings per common share attributable to Comcast Corporation shareholders |
$ | 0.85 | $ | 1.66 | ||||
Note 5: Film and Television Costs
| (in millions) | June 30, 2016 |
December 31, 2015 |
||||||
| Film Costs: |
||||||||
| Released, less amortization |
$ | 1,425 | $ | 1,275 | ||||
| Completed, not released |
101 | 226 | ||||||
| In production and in development |
1,005 | 907 | ||||||
| 2,531 | 2,408 | |||||||
| Television Costs: |
||||||||
| Released, less amortization |
1,577 | 1,573 | ||||||
| In production and in development |
635 | 737 | ||||||
| 2,212 | 2,310 | |||||||
| Programming rights, less amortization |
2,503 | 2,350 | ||||||
| 7,246 | 7,068 | |||||||
| Less: Current portion of programming rights |
1,435 | 1,213 | ||||||
| Film and television costs |
$ | 5,811 | $ | 5,855 | ||||
9
Table of Contents
Comcast Corporation
Note 6: Investments
| (in millions) | June 30, 2016 |
December 31, 2015 |
||||||
| Fair Value Method |
$ | 167 | $ | 167 | ||||
| Equity Method: |
||||||||
| Atairos |
402 | — | ||||||
| Hulu |
170 | 184 | ||||||
| Other |
527 | 494 | ||||||
| 1,099 | 678 | |||||||
| Cost Method: |
||||||||
| AirTouch |
1,591 | 1,583 | ||||||
| Other |
915 | 902 | ||||||
| 2,506 | 2,485 | |||||||
| Total investments |
3,772 | 3,330 | ||||||
| Less: Current investments |
93 | 106 | ||||||
| Noncurrent investments |
$ | 3,679 | $ | 3,224 | ||||
Investment Income (Loss), Net
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| (in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Gains on sales and exchanges of investments, net |
$ | 13 | $ | 4 | $ | 15 | $ | 4 | ||||||||
| Investment impairment losses |
(1 | ) | (16 | ) | (21 | ) | (31 | ) | ||||||||
| Unrealized gains (losses) on securities underlying prepaid forward sale agreements |
— | — | — | 42 | ||||||||||||
| Mark to market adjustments on derivative component of prepaid forward sale agreements and indexed debt instruments |
1 | 1 | 1 | (37 | ) | |||||||||||
| Interest and dividend income |
31 | 28 | 60 | 56 | ||||||||||||
| Other, net |
14 | — | 33 | 16 | ||||||||||||
| Investment income (loss), net |
$ | 58 | $ | 17 | $ | 88 | $ | 50 | ||||||||
Equity Method
The Weather Channel
On January 29, 2016, following a legal restructuring at The Weather Channel, we and the other investors sold the entity holding The Weather Channel’s product and technology businesses to IBM. Following the close of the transaction, we continue to hold an investment in The Weather Channel cable network through a new holding company. As a result of the sale of our investment, we recognized a pretax gain for the six months ended June 30, 2016 of $108 million in other income (expense), net.
During the three months ended June 30, 2015, The Weather Channel recorded an impairment charge related to goodwill. We recorded an expense of $252 million that represents NBCUniversal’s proportionate share of this impairment charge in equity in net income (losses) of investees, net in our condensed consolidated statement of income.
Atairos
In 2015, we entered into an agreement to establish Atairos Group, Inc. (“Atairos”), a strategic company focused on investing in and operating companies in a range of industries and business sectors, both domestically and internationally. The agreement became effective as of January 1, 2016. Atairos has a term of up to 12 years and is controlled by management companies led by our former CFO through interests that carry all of the voting rights. We are the only investor other than our former CFO and the other management company employees. We have
10
Table of Contents
Comcast Corporation
committed to fund up to $4 billion in the aggregate at any one time in Atairos, subject to certain offsets, and $40 million annually to fund a management fee, subject to certain adjustments, while the management company investors have committed to fund up to $100 million (with at least $40 million to be funded by our former CFO, subject to his continued role with Atairos). Our economic interests do not carry voting rights and obligate us to absorb approximately 99% of any losses and provide us the right to receive approximately 86.5% of any residual returns in Atairos, in either case on a cumulative basis.
We have concluded that Atairos is a VIE, that we do not have the power to direct the activities that most significantly impact the economic performance of Atairos as we have no voting rights and only certain consent rights, and that we are not a related party with our former CFO or the management companies. We therefore do not consolidate Atairos and account for this investment as an equity method investment. There are no other liquidity arrangements, guarantees, or other financial commitments between Comcast and Atairos, and therefore our maximum risk of financial loss is our investment balance and remaining unfunded capital commitment.
For the six months ended June 30, 2016, we made capital contributions totaling $429 million to Atairos.
Hulu
For the three and six months ended June 30, 2016, we recognized our proportionate share of losses of $40 million and $65 million, respectively, related to our investment in Hulu, LLC (“Hulu”). For the three and six months ended June 30, 2015, we recognized our proportionate share of losses of $13 million and $24 million, respectively, related to our investment in Hulu.
Cost Method
AirTouch
We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of June 30, 2016, 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: Goodwill
| NBCUniversal | ||||||||||||||||||||||||||||
| (in millions) | Cable Communications |
Cable Networks |
Broadcast Television |
Filmed Entertainment |
Theme Parks |
Corporate and Other |
Total | |||||||||||||||||||||
| Balance, December 31, 2015 |
$ | 12,389 | $ | 12,947 | $ | 806 | $ | 267 | $ | 6,344 | $ | 192 | $ | 32,945 | ||||||||||||||
| Acquisitions |
73 | — | — | 92 | — | — | 165 | |||||||||||||||||||||
| Adjustments |
176 | — | — | — | (289 | ) | (181 | ) | (294 | ) | ||||||||||||||||||
| Foreign currency translation |
— | 7 | — | 12 | 957 | — | 976 | |||||||||||||||||||||
| Balance, June 30, 2016 |
$ | 12,638 | $ | 12,954 | $ | 806 | $ | 371 | $ | 7,012 | $ | 11 | $ | 33,792 | ||||||||||||||
Adjustments to goodwill during the six months ended June 30, 2016 included the updated preliminary allocation of the purchase price for Universal Studios Japan in our Theme Parks segment and the reclassification of certain operations and businesses from Corporate and Other to our Cable Communications segment.
Note 8: Long-Term Debt
As of June 30, 2016, our debt had a carrying value of $55.6 billion and an estimated fair value of $64.4 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.
11
Table of Contents
Comcast Corporation
Debt Borrowings and Repayments
In July 2016, we issued $700 million aggregate principal amount of 1.625% senior notes due 2022, $1.4 billion aggregate principal amount of 2.35% senior notes due 2027, $1.0 billion aggregate principal amount of 3.20% senior notes due 2036 and $1.4 billion aggregate principal amount of 3.40% senior notes due 2046. We intend to use the proceeds from this offering to fund our acquisition of DreamWorks, and for working capital and general corporate purposes. In May 2016, we issued $1.43 billion aggregate principal amount of 4.05% senior notes due 2046. In February and March 2016, we issued $1.1 billion aggregate principal amount of 2.75% senior notes due 2023 and $2.2 billion aggregate principal amount of 3.15% senior notes due 2026.
In June 2016, we repaid at maturity $750 million aggregate principal amount of 4.95% senior notes due 2016. In April 2016, we repaid at maturity $1 billion aggregate principal amount of 2.875% senior notes due 2016 and $700 million aggregate principal amount of NBCUniversal Enterprise Inc.’s (“NBCUniversal Enterprise”) senior notes due 2016.
Revolving Credit Facilities
In May 2016, we entered into a new $7 billion revolving credit facility due 2021 with a syndicate of banks (“Comcast revolving credit facility”) that may be used for general corporate purposes. We may increase the commitment under the Comcast revolving credit facility up to a total of $10 billion, as well as extend the expiration date to a date no later than 2023, subject to approval of the lenders. In addition, NBCUniversal Enterprise entered into a new $1.5 billion revolving credit facility due 2021 with a syndicate of banks (“NBCUniversal Enterprise revolving credit facility”) that may be used for general corporate purposes. We may increase the commitment under the NBCUniversal Enterprise revolving credit facility up to a total of $2 billion, as well as extend the expiration date to a date no later than 2023, subject to approval of the lenders. The new revolving credit facilities replaced Comcast’s $6.25 billion and NBCUniversal Enterprise’s $1.35 billion revolving credit facilities, which were terminated in connection with the execution of the new revolving credit facilities. The interest rates on the new revolving credit facilities consist of a base rate plus a borrowing margin that is determined based on Comcast’s credit rating. As of June 30, 2016, the borrowing margin for borrowings based on the London Interbank Offered Rate was 1.00%. The terms of the new revolving credit facilities’ financial covenants and guarantees are substantially the same as those under the prior revolving credit facilities.
As of June 30, 2016, amounts available under the new consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $7.1 billion, which included $326 million available under NBCUniversal Enterprise’s revolving credit facility.
Commercial Paper Programs
As of June 30, 2016, NBCUniversal Enterprise had $1.2 billion face amount of commercial paper outstanding.
Note 9: 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.
12
Table of Contents
Comcast Corporation
Recurring Fair Value Measurements
| Fair Value as of | ||||||||||||||||||||
| June 30, 2016 |
December 31, 2015 |
|||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||
| Assets |
||||||||||||||||||||
| Trading securities |
$ | 9 | $ | — | $ | — | $ | 9 | $ | 22 | ||||||||||
| Available-for-sale securities |
— | 125 | 14 | 139 | 133 | |||||||||||||||
| Interest rate swap agreements |
— | 61 | — | 61 | 53 | |||||||||||||||
| Other |
— | 10 | 19 | 29 | 17 | |||||||||||||||
| Total |
$ | 9 | $ | 196 | $ | 33 | $ | 238 | $ | 225 | ||||||||||
| Liabilities |
||||||||||||||||||||
| Other |
$ | — | $ | 235 | $ | — | $ | 235 | $ | 91 | ||||||||||
| Total |
$ | — | $ | 235 | $ | — | $ | 235 | $ | 91 | ||||||||||
Fair Value of Redeemable Subsidiary Preferred Stock
As of June 30, 2016, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $761 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 10: Share-Based Compensation
Our share-based compensation plans primarily consist of awards of RSUs and stock options 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 2016, we granted 5.9 million RSUs and 20.7 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $59.50 per RSU and $11.45 per stock option.
Recognized Share-Based Compensation Expense
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| (in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Restricted share units |
$ | 89 | $ | 80 | $ | 159 | $ | 138 | ||||||||
| Stock options |
48 | 43 | 85 | 78 | ||||||||||||
| Employee stock purchase plans |
8 | 6 | 16 | 14 | ||||||||||||
| Total |
$ | 145 | $ | 129 | $ | 260 | $ | 230 | ||||||||
As of June 30, 2016, we had unrecognized pretax compensation expense of $831 million and $448 million related to nonvested RSUs and nonvested stock options, respectively.
13
Table of Contents
Comcast Corporation
Note 11: Supplemental Financial Information
Receivables
| (in millions) | June 30, 2016 |
December 31, 2015 |
||||||
| Receivables, gross |
$ | 7,255 | $ | 7,595 | ||||
| Less: Allowance for returns and customer incentives |
292 | 473 | ||||||
| Less: Allowance for doubtful accounts |
255 | 226 | ||||||
| Receivables, net |
$ | 6,708 | $ | 6,896 | ||||
Accumulated Other Comprehensive Income (Loss)
| (in millions) | June 30, 2016 |
June 30, 2015 |
||||||
| Unrealized gains (losses) on marketable securities |
$ | 3 | $ | 1 | ||||
| Deferred gains (losses) on cash flow hedges |
(75 | ) | (11 | ) | ||||
| Unrecognized gains (losses) on employee benefit obligations |
8 | (68 | ) | |||||
| Cumulative translation adjustments |
65 | (88 | ) | |||||
| Accumulated other comprehensive income (loss), net of deferred taxes |
$ | 1 | $ | (166 | ) | |||
Net Cash Provided by Operating Activities
| Six Months Ended June 30 |
||||||||
| (in millions) | 2016 | 2015 | ||||||
| Net income |
$ | 4,304 | $ | 4,316 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
4,667 | 4,227 | ||||||
| Share-based compensation |
331 | 294 | ||||||
| Noncash interest expense (income), net |
113 | 95 | ||||||
| Equity in net (income) losses of investees, net |
30 | 203 | ||||||
| Cash received from investees |
42 | 52 | ||||||
| Net (gain) loss on investment activity and other |
(126 | ) | (437 | ) | ||||
| Deferred income taxes |
618 | 111 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |
||||||||
| Current and noncurrent receivables, net |
172 | (707 | ) | |||||
| Film and television costs, net |
(171 | ) | 176 | |||||
| Accounts payable and accrued expenses related to trade creditors |
(104 | ) | 109 | |||||
| Other operating assets and liabilities |
(493 | ) | 395 | |||||
| Net cash provided by operating activities |
$ | 9,383 | $ | 8,834 | ||||
Cash Payments for Interest and Income Taxes
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| (in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Interest |
$ | 512 | $ | 550 | $ | 1,235 | $ | 1,241 | ||||||||
| Income taxes |
$ | 1,495 | $ | 1,881 | $ | 1,685 | $ | 1,999 | ||||||||
14
Table of Contents
Comcast Corporation
Noncash Investing and Financing Activities
During the six months ended June 30, 2016:
| • | we acquired $1.2 billion of property and equipment and intangible assets that were accrued but unpaid |
| • | we recorded a liability of $663 million for a quarterly cash dividend of $0.275 per common share to be paid in July 2016 |
Note 12: Commitments and Contingencies
Insurance Obligations
We recorded an operating expense of $116 million during the three months ended June 30, 2016 and eliminated substantially all of our liabilities related to certain insurance obligations, which are disclosed in Note 12 of our consolidated financial statements included in our 2015 Annual Report on Form 10-K.
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 13: 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 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. |
| • | Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. |
15
Table of Contents
Comcast Corporation
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 June 30, 2016 | ||||||||||||||||||||
| (in millions) | Revenue(g) | Operating Income (Loss) Amortization(h) |
Depreciation and Amortization |
Operating Income (Loss) |
Capital Expenditures |
|||||||||||||||
| Cable Communications(a)(b) |
$ | 12,444 | $ | 5,048 | $ | 1,904 | $ | 3,144 | $ | 1,881 | ||||||||||
| NBCUniversal |
||||||||||||||||||||
| Cable Networks |
2,566 | 944 | 187 | 757 | 7 | |||||||||||||||
| Broadcast Television |
2,128 | 394 | 30 | 364 | 30 | |||||||||||||||
| Filmed Entertainment |
1,351 | 56 | 12 | 44 | 5 | |||||||||||||||
| Theme Parks(d) |
1,136 | 469 | 145 | 324 | 240 | |||||||||||||||
| Headquarters and Other(e) |
6 | (175 | ) | 91 | (266 | ) | 78 | |||||||||||||
| Eliminations(f) |
(84 | ) | 1 | — | 1 | — | ||||||||||||||
| NBCUniversal |
7,103 | 1,689 | 465 | 1,224 | 360 | |||||||||||||||
| Corporate and Other(b) |
180 | (291 | ) | 20 | (311 | ) | 30 | |||||||||||||
| Eliminations(d)(f) |
(458 | ) | 9 | — | 9 | — | ||||||||||||||
| Comcast Consolidated |
$ | 19,269 | $ | 6,455 | $ | 2,389 | $ | 4,066 | $ | 2,271 | ||||||||||
| Three Months Ended June 30, 2015 | ||||||||||||||||||||
| (in millions) | Revenue(g) | Operating Income (Loss) Amortization(h) |
Depreciation and Amortization |
Operating Income (Loss) |
Capital Expenditures |
|||||||||||||||
| Cable Communications(a)(b) |
$ | 11,740 | $ | 4,777 | $ | 1,732 | $ | 3,045 | $ | 1,678 | ||||||||||
| NBCUniversal |
||||||||||||||||||||
| Cable Networks |
2,450 | 872 | 211 | 661 | 5 | |||||||||||||||
| Broadcast Television |
1,813 | 231 | 30 | 201 | 14 | |||||||||||||||
| Filmed Entertainment |
2,266 | 422 | 6 | 416 | 4 | |||||||||||||||
| Theme Parks(d) |
773 | 334 | 76 | 258 | 166 | |||||||||||||||
| Headquarters and Other(e) |
3 | (169 | ) | 82 | (251 | ) | 83 | |||||||||||||
| Eliminations(f) |
(75 | ) | 2 | — | 2 | — | ||||||||||||||
| NBCUniversal |
7,230 | 1,692 | 405 | 1,287 | 272 | |||||||||||||||
| Corporate and Other(b) |
164 | (231 | ) | 24 | (255 | ) | 21 | |||||||||||||
| Eliminations(d)(f) |
(391 | ) | 28 | — | 28 | — | ||||||||||||||
| Comcast Consolidated |
$ | 18,743 | $ | 6,266 | $ | 2,161 | $ | 4,105 | $ | 1,971 | ||||||||||
| Six Months Ended June 30, 2016 | ||||||||||||||||||||
| (in millions) | Revenue(g) | Operating Income (Loss) Amortization(h) |
Depreciation and Amortization |
Operating Income (Loss) |
Capital Expenditures |
|||||||||||||||
| Cable Communications(a)(b) |
$ | 24,648 | $ | 9,937 | $ | 3,747 | $ | 6,190 | $ | 3,457 | ||||||||||
| NBCUniversal |
||||||||||||||||||||
| Cable Networks |
5,019 | 1,900 | 377 | 1,523 | 8 | |||||||||||||||
| Broadcast Television |
4,212 | 678 | 62 | 616 | 49 | |||||||||||||||
| Filmed Entertainment |
2,734 | 223 | 20 | 203 | 8 | |||||||||||||||
| Theme Parks(d) |
2,162 | 844 | 243 | 601 | 440 | |||||||||||||||
| Headquarters and Other(e) |
9 | (335 | ) | 177 | (512 | ) | 150 | |||||||||||||
| Eliminations(f) |
(172 | ) | 1 | — | 1 | — | ||||||||||||||
| NBCUniversal |
13,964 | 3,311 | 879 | 2,432 | 655 | |||||||||||||||
| Corporate and Other(b) |
379 | (445 | ) | 41 | (486 | ) | 44 | |||||||||||||
| Eliminations(d)(f) |
(932 | ) | 19 | — | 19 | — | ||||||||||||||
| Comcast Consolidated |
$ | 38,059 | $ | 12,822 | $ | 4,667 | $ | 8,155 | $ | 4,156 | ||||||||||
16
Table of Contents
Comcast Corporation
| Six Months Ended June 30, 2015 | ||||||||||||||||||||
| (in millions) | Revenue(g) | Operating Income (Loss) Before Depreciation and |
Depreciation and Amortization |
Operating Income (Loss) |
Capital Expenditures |
|||||||||||||||
| Cable Communications(a)(b) |
$ | 23,181 | $ | 9,435 | $ | 3,412 | $ | 6,023 | $ | 3,124 | ||||||||||
| NBCUniversal |
||||||||||||||||||||
| Cable Networks |
4,809 | 1,770 | 395 | 1,375 | 11 | |||||||||||||||
| Broadcast Television(c) |
4,061 | 413 | 59 | 354 | 25 | |||||||||||||||
| Filmed Entertainment |
3,712 | 715 | 11 | 704 | 5 | |||||||||||||||
| Theme Parks(d) |
1,424 | 578 | 142 | 436 | 328 | |||||||||||||||
| Headquarters and Other(e) |
7 | (309 | ) | 162 | (471 | ) | 171 | |||||||||||||
| Eliminations(f) |
(179 | ) | — | — | — | — | ||||||||||||||
| NBCUniversal |
13,834 | 3,167 | 769 | 2,398 | 540 | |||||||||||||||
| Corporate and Other(b) |
357 | (440 | ) | 46 | (486 | ) | 33 | |||||||||||||
| Eliminations(d)(f) |
(776 | ) | 60 | — | 60 | — | ||||||||||||||
| Comcast Consolidated |
$ | 36,596 | $ | 12,222 | $ | 4,227 | $ | 7,995 | $ | 3,697 | ||||||||||
| (a) | For the three and six months ended June 30, 2016 and 2015, Cable Communications segment revenue was derived from the following sources: |
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Residential: |
||||||||||||||||
| Video |
44.9 | % | 46.3 | % | 45.1 | % | 46.4 | % | ||||||||
| High-speed Internet |
27.1 | % | 26.4 | % | 27.0 | % | 26.5 | % | ||||||||
| Voice |
7.2 | % | 7.7 | % | 7.3 | % | 7.8 | % | ||||||||
| Business services |
10.9 | % | 9.9 | % | 10.8 | % | 9.8 | % | ||||||||
| Advertising |
4.8 | % | 4.9 | % | 4.7 | % | 4.6 | % | ||||||||
| Other |
5.1 | % | 4.8 | % | 5.1 | % | 4.9 | % | ||||||||
| 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 six months ended June 30, 2016 and 2015, 2.8% of Cable Communications segment revenue was derived from franchise and other regulatory fees.
| (b) | Beginning in the first quarter of 2016, certain operations and businesses, including several strategic business initiatives, that were previously presented in Corporate and Other are now presented in our Cable Communications segment to reflect a change in our management reporting presentation. For segment reporting purposes, we have adjusted all periods presented to reflect this change. |
| (c) | The revenue and operating costs and expenses associated with our broadcast of the 2015 Super Bowl were reported in our Broadcast Television segment. |
| (d) | Beginning in the fourth quarter of 2015, we changed our method of accounting for a contractual obligation that involves an interest in the revenue of certain theme parks. As a result of the change, amounts payable based on current period revenue are presented in operating costs and expenses. Amounts paid through the third quarter of 2015 were included in other income (expense), net in our consolidated statement of income. For segment reporting purposes, we have adjusted periods prior to the fourth quarter of 2015 to reflect management reporting presentation for this expense on a consistent basis for all periods in the Theme Parks segment and total NBCUniversal, which resulted in a corresponding offsetting adjustment in Eliminations to reconcile to consolidated totals. |
| (e) | NBCUniversal Headquarters and Other activities include costs associated with overhead, personnel costs and headquarter initiatives. |
| (f) | 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 |
17
Table of Contents
Comcast Corporation
| • | our Filmed Entertainment and Broadcast Television segments generate revenue by licensing content to our Cable Networks segment |
| (g) | No single customer accounted for a significant amount of revenue in any period. |
| (h) | 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. |
Note 14: Condensed Consolidating Financial Information
Comcast (“Comcast Parent”), Comcast Cable Communications, LLC (“CCCL Parent”), and NBCUniversal (“NBCUniversal Media Parent”) have fully and unconditionally guaranteed each other’s debt securities. In addition, the Comcast revolving credit facility and the Comcast commercial paper program are also fully and unconditionally guaranteed by NBCUniversal. The Comcast commercial paper program is supported by the Comcast revolving credit facility.
Comcast Parent and CCCL Parent also fully and unconditionally guarantee NBCUniversal Enterprise’s $3.3 billion of senior notes, as well as the NBCUniversal Enterprise revolving credit facility 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 CCCL Parent nor NBCUniversal Media Parent guarantee the Comcast Holdings’ ZONES due October 2029. None of Comcast Parent, CCCL Parent nor NBCUniversal Media Parent guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029 or the $3.8 billion of Universal Studios Japan term loans.
18
Table of Contents
Comcast Corporation
Condensed Consolidating Balance Sheet
June 30, 2016
| (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 |
$ | — | $ | — | $ | — | $ | 270 | $ | 4,395 | $ | — | $ | 4,665 | ||||||||||||||
| Receivables, net |
— | — | — | — | 6,708 | — | 6,708 | |||||||||||||||||||||
| Programming rights |
— | — | — | — | 1,435 | — | 1,435 | |||||||||||||||||||||
| Other current assets |
138 | — | — | 49 | 1,782 | — | 1,969 | |||||||||||||||||||||
| Total current assets |
138 | — | — | 319 | 14,320 | — | 14,777 | |||||||||||||||||||||
| Film and television costs |
— | — | — | — | 5,811 | — | 5,811 | |||||||||||||||||||||
| Investments |
48 | — | — | 445 | 3,186 | — | 3,679 | |||||||||||||||||||||
| Investments in and amounts due from subsidiaries eliminated upon consolidation |
91,382 | 115,253 | 123,620 | 42,893 | 113,686 | (486,834 | ) | — | ||||||||||||||||||||
| Property and equipment, net |
218 | — | — | — | 34,678 | — | 34,896 | |||||||||||||||||||||
| Franchise rights |
— | — | — | — | 59,364 | — | 59,364 | |||||||||||||||||||||
| Goodwill |
— | — | — | — | 33,792 | — | 33,792 | |||||||||||||||||||||
| Other intangible assets, net |
10 | — | — | — | 17,194 | — | 17,204 | |||||||||||||||||||||
| Other noncurrent assets, net |
1,361 | 147 | — | 85 | 2,117 | (1,248 | ) | 2,462 | ||||||||||||||||||||
| Total assets |
$ | 93,157 | $ | 115,400 | $ | 123,620 | $ | 43,742 | $ | 284,148 | $ | (488,082 | ) | $ | 171,985 | |||||||||||||
| Liabilities and Equity |
||||||||||||||||||||||||||||
| Accounts payable and accrued expenses related to trade creditors |
$ | 31 | $ | — | $ | — | $ | — | $ | 6,328 | $ | — | $ | 6,359 | ||||||||||||||
| Accrued participations and residuals |
— | — | — | — | 1,542 | — | 1,542 | |||||||||||||||||||||
| Accrued expenses and other current liabilities |
1,672 | 335 | 282 | 282 | 4,195 | — | 6,766 | |||||||||||||||||||||
| Current portion of long-term debt |
1,000 | — | 550 | 4 | 1,380 | — | 2,934 | |||||||||||||||||||||
| Total current liabilities |
2,703 | 335 | 832 | 286 | 13,445 | — | 17,601 | |||||||||||||||||||||
| Long-term debt, less current portion |
34,757 | 133 | 2,100 | 8,228 | 7,411 | — | 52,629 | |||||||||||||||||||||
| Deferred income taxes |
— | 581 | — | 69 | 34,964 | (1,102 | ) | 34,512 | ||||||||||||||||||||
| Other noncurrent liabilities |
2,599 | — | — | 1,143 | 7,123 | (146 | ) | 10,719 | ||||||||||||||||||||
| Redeemable noncontrolling interests and redeemable subsidiary preferred stock |
— | — | — | — | 1,248 | — | 1,248 | |||||||||||||||||||||
| Equity: |
||||||||||||||||||||||||||||
| Common stock |
28 | — | — | — | — | — | 28 | |||||||||||||||||||||
| Other shareholders’ equity |
53,070 | 114,351 | 120,688 | 34,016 | 217,779 | (486,834 | ) | 53,070 | ||||||||||||||||||||
| Total Comcast Corporation shareholders’ equity |
53,098 | 114,351 | 120,688 | 34,016 | 217,779 | (486,834 | ) | 53,098 | ||||||||||||||||||||
| Noncontrolling interests |
— | — | — | — | 2,178 | — | 2,178 | |||||||||||||||||||||
| Total equity |
53,098 | 114,351 | 120,688 | 34,016 | 219,957 | (486,834 | ) | 55,276 | ||||||||||||||||||||
| Total liabilities and equity |
$ | 93,157 | $ | 115,400 | $ | 123,620 | $ | 43,742 | $ | 284,148 | $ | (488,082 | ) | $ | 171,985 | |||||||||||||
19
Table of Contents
Comcast Corporation
Condensed Consolidating Balance Sheet
December 31, 2015
| (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 |
$ | — | $ | — | $ | — | $ | 414 | $ | 1,881 | $ | — | $ | 2,295 | ||||||||||||||
| Receivables, net |
— | — | — | — | 6,896 | — | 6,896 | |||||||||||||||||||||
| Programming rights |
— | — | — | — | 1,213 | — | 1,213 | |||||||||||||||||||||
| Other current assets |
69 | — | — | 17 | 1,813 | — | 1,899 | |||||||||||||||||||||
| Total current assets |
69 | — | — | 431 | 11,803 | — | 12,303 | |||||||||||||||||||||
| Film and television costs |
— | — | — | — | 5,855 | — | 5,855 | |||||||||||||||||||||
| Investments |
33 | — | — | 430 | 2,761 | — | 3,224 | |||||||||||||||||||||
| Investments in and amounts due from subsidiaries eliminated upon consolidation |
87,142 | 111,241 | 119,354 | 42,441 | 109,598 | (469,776 | ) | — | ||||||||||||||||||||
| Property and equipment, net |
210 | — | — | — | 33,455 | — | 33,665 | |||||||||||||||||||||
| Franchise rights |
— | — | — | — | 59,364 | — | 59,364 | |||||||||||||||||||||
| Goodwill |
— | — | — | — | 32,945 | — | 32,945 | |||||||||||||||||||||
| Other intangible assets, net |
12 | — | — | — | 16,934 | — | 16,946 | |||||||||||||||||||||
| Other noncurrent assets, net |
1,301 | 147 | — | 78 | 2,114 | (1,368 | ) | 2,272 | ||||||||||||||||||||
| Total assets |
$ | 88,767 | $ | 111,388 | $ | 119,354 | $ | 43,380 | $ | 274,829 | $ | (471,144 | ) | $ | 166,574 | |||||||||||||
| Liabilities and Equity |
||||||||||||||||||||||||||||
| Accounts payable and accrued expenses related to trade creditors |
$ | 16 | $ | — | $ | — | $ | — | $ | 6,199 | $ | — | $ | 6,215 | ||||||||||||||
| Accrued participations and residuals |
— | — | — | — | 1,572 | — | 1,572 | |||||||||||||||||||||
| Accrued expenses and other current liabilities |
1,789 | 335 | 290 | 389 | 3,961 | — | 6,764 | |||||||||||||||||||||
| Current portion of long-term debt |
1,149 | — | — | 1,005 | 1,473 | — | 3,627 | |||||||||||||||||||||
| Total current liabilities |
2,954 | 335 | 290 | 1,394 | 13,205 | — | 18,178 | |||||||||||||||||||||
| Long-term debt, less current portion |
31,106 | 130 | 2,650 | 8,211 | 6,897 | — | 48,994 | |||||||||||||||||||||
| Deferred income taxes |
— | 624 | — | 66 | 34,098 | (1,222 | ) | 33,566 | ||||||||||||||||||||
| Other noncurrent liabilities |
2,438 | — | — | 1,087 | 7,258 | (146 | ) | 10,637 | ||||||||||||||||||||
| Redeemable noncontrolling interests and redeemable subsidiary preferred stock |
— | — | — | — | 1,221 | — | 1,221 | |||||||||||||||||||||
| Equity: |
||||||||||||||||||||||||||||
| Common stock |
29 | — | — | — | — | — | 29 | |||||||||||||||||||||
| Other shareholders’ equity |
52,240 | 110,299 | 116,414 | 32,622 | 210,441 | (469,776 | ) | 52,240 | ||||||||||||||||||||
| Total Comcast Corporation shareholders’ equity |
52,269 | 110,299 | 116,414 | 32,622 | 210,441 | (469,776 | ) | 52,269 | ||||||||||||||||||||
| Noncontrolling interests |
— | — | — | — | 1,709 | — | 1,709 | |||||||||||||||||||||
| Total equity |
52,269 | 110,299 | 116,414 | 32,622 | 212,150 | (469,776 | ) | 53,978 | ||||||||||||||||||||
| Total liabilities and equity |
$ | 88,767 | $ | 111,388 | $ | 119,354 | $ | 43,380 | $ | 274,829 | $ | (471,144 | ) | $ | 166,574 | |||||||||||||
20
Table of Contents
Comcast Corporation
Condensed Consolidating Statement of Income
For the Three Months Ended June 30, 2016
| (in millions) | Comcast Parent |
Comcast Holdings |
CCCL Parent |
NBCUniversal Media Parent |
Non- Guarantor Subsidiaries |
Elimination and Consolidation Adjustments |
Consolidated Comcast Corporation |
|||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||
| Service revenue |
$ | — | $ | — | $ | — | $ | — | $ | 19,269 | $ | — | $ | 19,269 | ||||||||||||||
| Management fee revenue |
266 | — | 261 | — | — | (527 | ) | — | ||||||||||||||||||||
| 266 | — | 261 | — | 19,269 | (527 | ) | 19,269 | |||||||||||||||||||||
| Costs and Expenses: |
||||||||||||||||||||||||||||
| Programming and production |
— | — | — | — | 5,492 | — | 5,492 | |||||||||||||||||||||
| Other operating and administrative |
285 | — | 261 | 222 | 5,520 | (527 | ) | 5,761 | ||||||||||||||||||||
| Advertising, marketing and promotion |
— | — | — | — | 1,561 | — | 1,561 | |||||||||||||||||||||
| Depreciation |
6 | — | — | — | 1,862 | — | 1,868 | |||||||||||||||||||||
| Amortization |
2 | — | — | — | 519 | — | 521 | |||||||||||||||||||||
| 293 | — | 261 | 222 | 14,954 | (527 | ) | 15,203 | |||||||||||||||||||||
| Operating income (loss) |
(27 | ) | — | — | (222 | ) | 4,315 | — | 4,066 | |||||||||||||||||||
| Other Income (Expense): |
||||||||||||||||||||||||||||
| Interest expense |
(478 | ) | (3 | ) | (61 | ) | (112 | ) | (78 | ) | — | (732 | ) | |||||||||||||||
| Investment income (loss), net |
3 | 1 | — | (6 | ) | 60 | — | 58 | ||||||||||||||||||||
| Equity in net income (losses) of investees, net |
2,354 | 2,275 | 2,127 | 1,288 | 914 | (8,977 | ) | (19 | ) | |||||||||||||||||||
| Other income (expense), net |
— | — | — | (7 | ) | (8 | ) | — | (15 | ) | ||||||||||||||||||
| 1,879 | 2,273 | 2,066 | 1,163 | 888 | (8,977 | ) | (708 | ) | ||||||||||||||||||||
| Income (loss) before income taxes |
1,852 | 2,273 | 2,066 | 941 | 5,203 | (8,977 | ) | 3,358 | ||||||||||||||||||||
| Income tax (expense) benefit |
176 | 1 | 21 | (8 | ) | (1,468 | ) | — | (1,278 | ) | ||||||||||||||||||
| Net income (loss) |
2,028 | 2,274 | 2,087 | 933 | 3,735 | (8,977 | ) | 2,080 | ||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock |
— | — | — | — | (52 | ) | — | (52 | ) | |||||||||||||||||||
| Net income (loss) attributable to Comcast Corporation |
$ | 2,028 | $ | 2,274 | $ | 2,087 | $ | 933 | $ | 3,683 | $ | (8,977 | ) | $ | 2,028 | |||||||||||||
| Comprehensive income (loss) attributable to Comcast Corporation |
$ | 2,113 | $ | 2,321 | $ | 2,087 | $ | 1,096 | $ | 4,194 | $ | (9,698 | ) | $ | 2,113 | |||||||||||||
21
Table of Contents
Comcast Corporation
Condensed Consolidating Statement of Income
For the Three Months Ended June 30, 2015
| (in millions) | Comcast Parent |
Comcast Holdings |
CCCL Parent |
NBCUniversal Media Parent |
Non- Guarantor Subsidiaries |
Elimination and Consolidation Adjustments |
Consolidated Comcast Corporation |
|||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||
| Service revenue |
$ | — | $ | — | $ | — | $ | — | $ | 18,743 | $ | — | $ | 18,743 | ||||||||||||||
| Management fee revenue |
252 | — | 246 | — | — | (498 | ) | — | ||||||||||||||||||||
| 252 | — | 246 | — | 18,743 | (498 | ) | 18,743 | |||||||||||||||||||||
| Costs and Expenses: |
||||||||||||||||||||||||||||
| Programming and production |
— | — | — | — | 5,669 | — | 5,669 | |||||||||||||||||||||
| Other operating and administrative |
225 | — | 246 | 255 | 5,046 | (498 | ) | 5,274 | ||||||||||||||||||||
| Advertising, marketing and promotion |
— | — | — | — | 1,534 | — | 1,534 | |||||||||||||||||||||
| Depreciation |
7 | — | — | — | 1,667 | — | 1,674 | |||||||||||||||||||||
| Amortization |
2 | — | — | — | 485 | — | 487 | |||||||||||||||||||||
| 234 | — | 246 | 255 | 14,401 | (498 | ) | 14,638 | |||||||||||||||||||||
| Operating income (loss) |
18 | — | — | (255 | ) | 4,342 | — | 4,105 | ||||||||||||||||||||
| Other Income (Expense): |
||||||||||||||||||||||||||||
| Interest expense |
(472 | ) | (3 | ) | (73 | ) | (116 | ) | (49 | ) | — | (713 | ) | |||||||||||||||
| Investment income (loss), net |
— | (1 | ) | — | (8 | ) | 26 | — | 17 | |||||||||||||||||||
| Equity in net income (losses) of investees, net |
2,431 | 2,162 | 2,020 | 1,281 | 676 | (8,806 | ) | (236 | ) | |||||||||||||||||||
| Other income (expense), net |
2 | — | — | 16 | 297 | — | 315 | |||||||||||||||||||||
| 1,961 | 2,158 | 1,947 | 1,173 | 950 | (8,806 | ) | (617 | ) | ||||||||||||||||||||
| Income (loss) before income taxes |
1,979 | 2,158 | 1,947 | 918 | 5,292 | (8,806 | ) | 3,488 | ||||||||||||||||||||
| Income tax (expense) benefit |
158 | 2 | 26 | (6 | ) | (1,493 | ) | — | (1,313 | ) | ||||||||||||||||||
| Net income (loss) |
2,137 | 2,160 | 1,973 | 912 | 3,799 | (8,806 | ) | 2,175 | ||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock |
— | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||||||
| Net income (loss) attributable to Comcast Corporation |
$ | 2,137 | $ | 2,160 | $ | 1,973 | $ | 912 | $ | 3,761 | $ | (8,806 | ) | $ | 2,137 | |||||||||||||
| Comprehensive income (loss) attributable to Comcast Corporation |
$ | 2,159 | $ | 2,168 | $ | 1,973 | $ | 936 | $ | 3,761 | $ | (8,838 | ) | $ | 2,159 | |||||||||||||
22
Table of Contents
Comcast Corporation
Condensed Consolidating Statement of Income
For the Six Months Ended June 30, 2016
| (in millions) | Comcast Parent |
Comcast Holdings |
CCCL Parent |
NBCUniversal Media Parent |
Non- Guarantor Subsidiaries |
Elimination and Consolidation Adjustments |
Consolidated Comcast Corporation |
|||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||
| Service revenue |
$ | — | $ | — | $ | — | $ | — | $ | 38,059 | $ | — | $ | 38,059 | ||||||||||||||
| Management fee revenue |
525 | — | 515 | — | — | (1,040 | ) | — | ||||||||||||||||||||
| 525 | — | 515 | — | 38,059 | (1,040 | ) | 38,059 | |||||||||||||||||||||
| Costs and Expenses: |
||||||||||||||||||||||||||||
| Programming and production |
— | — | — | — | 10,923 | — | 10,923 | |||||||||||||||||||||
| Other operating and administrative |
441 | — | 515 | 517 | 10,853 | (1,040 | ) | 11,286 | ||||||||||||||||||||
| Advertising, marketing and promotion |
— | — | — | — | 3,028 | — | 3,028 | |||||||||||||||||||||
| Depreciation |
14 | — | — | — | 3,639 | — | 3,653 | |||||||||||||||||||||
| Amortization |
3 | — | — | — | 1,011 | — | 1,014 | |||||||||||||||||||||
| 458 | — | 515 | 517 | 29,454 | (1,040 | ) | 29,904 | |||||||||||||||||||||
| Operating income (loss) |
67 | — | — | (517 | ) | 8,605 | — | 8,155 | ||||||||||||||||||||
| Other Income (Expense): |
||||||||||||||||||||||||||||
| Interest expense |
(929 | ) | (6 | ) | (120 | ) | (229 | ) | (151 | ) | — | (1,435 | ) | |||||||||||||||
| Investment income (loss), net |
3 | 1 | — | (8 | ) | 92 | — | 88 | ||||||||||||||||||||
| Equity in net income (losses) of investees, net |
4,720 | 4,539 | 4,241 | 2,585 | 1,905 | (18,020 | ) | (30 | ) | |||||||||||||||||||
| Other income (expense), net |
— | — | — | 117 | (2 | ) | — | 115 | ||||||||||||||||||||
| 3,794 | 4,534 | 4,121 | 2,465 | 1,844 | (18,020 | ) | (1,262 | ) | ||||||||||||||||||||
| Income (loss) before income taxes |
3,861 | 4,534 | 4,121 | 1,948 | 10,449 | (18,020 | ) | 6,893 | ||||||||||||||||||||
| Income tax (expense) benefit |
301 | 2 | 42 | (13 | ) | (2,921 | ) | — | (2,589 | ) | ||||||||||||||||||
| Net income (loss) |
4,162 | 4,536 | 4,163 | 1,935 | 7,528 | (18,020 | ) | 4,304 | ||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock |
— | — | — | — | (142 | ) | — | (142 | ) | |||||||||||||||||||
| Net income (loss) attributable to Comcast Corporation |
$ | 4,162 | $ | 4,536 | $ | 4,163 | $ | 1,935 | $ | 7,386 | $ | (18,020 | ) | $ | 4,162 | |||||||||||||
| Comprehensive income (loss) attributable to Comcast Corporation |
$ | 4,337 | $ | 4,627 | $ | 4,165 | $ | 2,242 | $ | 7,899 | $ | (18,933 | ) | $ | 4,337 | |||||||||||||
23
Table of Contents
Comcast Corporation
Condensed Consolidating Statement of Income
For the Six Months Ended June 30, 2015
| (in millions) | Comcast Parent |
Comcast Holdings |
CCCL Parent |
NBCUniversal Media Parent |
Non- Guarantor Subsidiaries |
Elimination and Consolidation Adjustments |
||||||||||||||||||||||