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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, 2015

OR

 

¨

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

For the Transition Period from                      to                     

 

 

 

LOGO

 

Commission File Number  

Registrant; State of

Incorporation; Address and Telephone

Number

  I.R.S. Employer Identification No.
001-32871   COMCAST CORPORATION   27-0000798
 

PENNSYLVANIA

One Comcast Center

Philadelphia, PA 19103-2838

(215) 286-1700

 
001-36438   NBCUNIVERSAL MEDIA, LLC   14-1682529
 

DELAWARE

30 Rockefeller Plaza

New York, NY 10112-0015

(212) 664-4444

 

 

 

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

 

Comcast Corporation

 

Yes x

 

No ¨

NBCUniversal Media, LLC

 

Yes x

 

No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such period that the registrant was required to submit and post such files).

 

Comcast Corporation

 

Yes x

 

No ¨

NBCUniversal Media, LLC

 

Yes x

 

No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Comcast Corporation

  Large accelerated filer   x   Accelerated filer   ¨   Non-accelerated filer   ¨   Smaller reporting company   ¨

NBCUniversal Media, LLC

  Large accelerated filer   ¨   Accelerated filer   ¨   Non-accelerated filer   x   Smaller reporting company   ¨

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

 

Comcast Corporation

 

Yes ¨

 

No x

NBCUniversal Media, LLC

 

Yes ¨

 

No x

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

As of June 30, 2015, there were 2,114,785,430 shares of Comcast Corporation Class A common stock, 368,198,461 shares of Comcast Corporation Class A Special common stock and 9,444,375 shares of Comcast Corporation Class B common stock outstanding.

Not applicable for NBCUniversal Media, LLC.

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

 

 

 


Table of Contents

TABLE OF CONTENTS

           Page
Number
 
PART I. FINANCIAL INFORMATION   

Item 1.

  Comcast Corporation Financial Statements      1   
  Condensed Consolidated Balance Sheet as of June 30, 2015 and December 31, 2014 (Unaudited)      1   
  Condensed Consolidated Statement of Income for the Three and Six Months Ended June 30, 2015 and 2014 (Unaudited)      2   
  Condensed Consolidated Statement of Comprehensive Income for the Three and Six Months Ended June 30, 2015 and 2014 (Unaudited)      3   
  Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2015 and 2014 (Unaudited)      4   
  Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2015 and 2014 (Unaudited)      5   
  Notes to Condensed Consolidated Financial Statements (Unaudited)      6   

Item 2.

  Management’s Discussion and Analysis of Financial Condition and Results of Operations      25   

Item 3.

  Quantitative and Qualitative Disclosures About Market Risk      40   

Item 4.

  Controls and Procedures      41   
PART II. OTHER INFORMATION   

Item 1.

  Legal Proceedings      41   

Item 1A.

  Risk Factors      41   

Item 2.

  Unregistered Sales of Equity Securities and Use of Proceeds      42   

Item 6.

  Exhibits      43   
SIGNATURES        44   
NBCUniversal Media, LLC Financial Statements      45   

 

 

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, 2015. This Quarterly Report modifies and supersedes documents filed prior to this Quarterly Report. The Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report.

You should carefully review the information contained in this Quarterly Report and particularly consider any risk factors set forth in this Quarterly Report and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called “forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “believes,” “estimates,” “potential,” or “continue,” or the negative of those words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should specifically consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results may differ materially from any of our forward-looking statements. We undertake no obligation to update any forward-looking statements.

Our businesses may be affected by, among other things, the following:

   

our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively

 

 

   

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

 

 

   

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

 

 

   

our businesses depend on keeping pace with technological developments

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

weak economic conditions may have a negative impact on our businesses

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 


Table of Contents

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Comcast Corporation

Condensed Consolidated Balance Sheet

(Unaudited)

 

(in millions, except share data)   June 30,
2015
    December 31,
2014
 

Assets

   

Current Assets:

   

Cash and cash equivalents

  $ 3,486      $ 3,910   

Investments

    144        602   

Receivables, net

    7,016        6,321   

Programming rights

    847        839   

Other current assets

    1,826        1,859   

Total current assets

    13,319        13,531   

Film and television costs

    5,751        5,727   

Investments

    2,999        3,135   

Property and equipment, net of accumulated depreciation of $46,738 and $45,410

    31,572        30,953   

Franchise rights

    59,364        59,364   

Goodwill

    27,422        27,316   

Other intangible assets, net of accumulated amortization of $10,855 and $10,170

    16,802        16,980   

Other noncurrent assets, net

    2,445        2,333   

Total assets

  $ 159,674      $ 159,339   

Liabilities and Equity

   

Current Liabilities:

   

Accounts payable and accrued expenses related to trade creditors

  $ 5,880      $ 5,638   

Accrued participations and residuals

    1,583        1,347   

Deferred revenue

    1,122        915   

Accrued expenses and other current liabilities

    5,093        5,293   

Current portion of long-term debt

    3,887        4,217   

Total current liabilities

    17,565        17,410   

Long-term debt, less current portion

    44,636        44,017   

Deferred income taxes

    33,198        32,959   

Other noncurrent liabilities

    10,438        10,819   

Commitments and contingencies (Note 11)

   

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

    1,108        1,066   

Equity:

   

Preferred stock—authorized, 20,000,000 shares; issued, zero

             

Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 2,480,246,180 and 2,496,598,612; outstanding, 2,114,785,430 and 2,131,137,862

    25        25   

Class A Special common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 439,133,225 and 471,419,601; outstanding, 368,198,461 and 400,484,837

    4        5   

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

             

Additional paid-in capital

    38,741        38,805   

Retained earnings

    21,313        21,539   

Treasury stock, 365,460,750 Class A common shares and 70,934,764 Class A Special common shares

    (7,517     (7,517

Accumulated other comprehensive income (loss)

    (166     (146

Total Comcast Corporation shareholders’ equity

    52,400        52,711   

Noncontrolling interests

    329        357   

Total equity

    52,729        53,068   

Total liabilities and equity

  $ 159,674      $ 159,339   

See accompanying notes to condensed consolidated financial statements.

 

1


Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Income

(Unaudited)

 

    Three Months Ended
June 30
    Six Months Ended
June 30
 
(in millions, except per share data)       2015             2014             2015             2014      

Revenue

  $ 18,743      $ 16,844      $ 36,596      $ 34,252   

Costs and Expenses:

       

Programming and production

    5,669        4,874        11,132        10,782   

Other operating and administrative

    5,280        4,922        10,359        9,671   

Advertising, marketing and promotion

    1,528        1,244        2,883        2,457   

Depreciation

    1,674        1,599        3,308        3,168   

Amortization

    487        401        919        802   
      14,638        13,040        28,601        26,880   

Operating income

    4,105        3,804        7,995        7,372   

Other Income (Expense):

       

Interest expense

    (713     (648     (1,369     (1,290

Investment income (loss), net

    17        120        50        233   

Equity in net income (losses) of investees, net

    (236     22        (203     54   

Other income (expense), net

    315        (39     417        (54
      (617     (545     (1,105     (1,057

Income before income taxes

    3,488        3,259        6,890        6,315   

Income tax expense

    (1,313     (1,234     (2,574     (2,352

Net income

    2,175        2,025        4,316        3,963   

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

    (38     (33     (120     (100

Net income attributable to Comcast Corporation

  $ 2,137      $ 1,992      $ 4,196      $ 3,863   

Basic earnings per common share attributable to Comcast Corporation shareholders

  $ 0.85      $ 0.77      $ 1.67      $ 1.49   

Diluted earnings per common share attributable to Comcast Corporation shareholders

  $ 0.84      $ 0.76      $ 1.65      $ 1.47   

Dividends declared per common share

  $ 0.25      $ 0.225      $ 0.50      $ 0.45   

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)       2015             2014             2015             2014      

Net income

  $ 2,175      $ 2,025      $ 4,316      $ 3,963   

Unrealized gains (losses) on marketable securities, net of deferred taxes of $—, $(2), $— and $(19)

           4               34   

Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(13), $(2), $10 and $(1)

    22        4        (17     2   

Amounts reclassified to net income:

       

Realized (gains) losses on marketable securities, net of deferred taxes of $—, $28, $— and $58

           (47            (97

Realized (gains) losses on cash flow hedges, net of deferred taxes of $16, $10, $(6) and $12

    (27     (17     10        (20

Employee benefit obligations, net of deferred taxes of $—, $—, $— and $—

           (1            (1

Currency translation adjustments, net of deferred taxes of $(15), $(6), $8 and $(7)

    27        10        (13     12   

Comprehensive income

    2,197        1,978        4,296        3,893   

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

    (38     (33     (120     (100

Comprehensive income attributable to Comcast Corporation

  $ 2,159      $ 1,945      $ 4,176      $ 3,793   

See accompanying notes to condensed consolidated financial statements.

 

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Comcast Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 

   

Six Months Ended

June 30

 
(in millions)       2015             2014      

Net cash provided by operating activities

  $ 8,834      $ 7,547   

Investing Activities

   

Capital expenditures

    (3,697     (3,246

Cash paid for intangible assets

    (600     (477

Acquisitions and construction of real estate properties

    (65     (10

Acquisitions, net of cash acquired

    (179     (406

Proceeds from sales of businesses and investments

    395        481   

Purchases of investments

    (272     (77

Other

    182        (153

Net cash provided by (used in) investing activities

    (4,236     (3,888

Financing Activities

   

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

    (137     (343

Proceeds from borrowings

    3,996        2,187   

Repurchases and repayments of debt

    (3,666     (3,163

Repurchases and retirements of common stock

    (3,585     (1,500

Dividends paid

    (1,200     (1,092

Issuances of common stock

    32        29   

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

    (114     (117

Other

    (348     151   

Net cash provided by (used in) financing activities

    (5,022     (3,848

Increase (decrease) in cash and cash equivalents

    (424     (189

Cash and cash equivalents, beginning of period

    3,910        1,718   

Cash and cash equivalents, end of period

  $ 3,486      $ 1,529   

See accompanying notes to condensed consolidated financial statements.

 

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Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Changes in Equity

(Unaudited)

 

   

Redeemable
Noncontrolling
Interests and
Redeemable
Subsidiary
Preferred Stock

            

 

 

Common Stock

    Additional
Paid-In
Capital
    Retained
Earnings
    Treasury
Stock at
Cost
    Accumulated
Other
Comprehensive
Income (Loss)
   

Non-

controlling
Interests

    Total
Equity
 
(in millions)              A     A Special     B              

Balance, December 31, 2013

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

Stock compensation plans

                  442        (343           99   

Repurchases and retirements of common stock

                  (345     (1,155           (1,500

Employee stock purchase plans

                  60                60   

Dividends declared

                    (1,168           (1,168

Other comprehensive income (loss)

                        (70       (70

Issuance of subsidiary shares to noncontrolling interests

    85                            13        13   

Contributions from
(distributions to) noncontrolling interests, net

    (8                         (74     (74

Other

    (14                 (7           (7     (14

Net income (loss)

    35                                                3,863                        65        3,928   

Balance, June 30, 2014

  $ 1,055              $ 25      $ 5      $      $ 39,040      $ 20,432      $ (7,517   $ (14   $ 361      $ 52,332   

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       (20

Contributions from (distributions to) noncontrolling interests, net

    4                            (73     (73

Other

    (2                 153              (35     118   

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   

See accompanying notes to condensed consolidated financial statements.

 

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Table of Contents

Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Basis of Presentation

We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.

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

Reclassifications

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

Note 2: Recent Accounting Pronouncements

Revenue Recognition

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

Debt Issuance Costs

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

 

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Comcast Corporation

 

Note 3: Earnings Per Share

Computation of Diluted EPS

 

    Three Months Ended June 30  
    2015      2014  
(in millions, except per share data)   Net Income
Attributable to
Comcast
Corporation
     Shares      Per Share
Amount
     Net Income
Attributable to
Comcast
Corporation
     Shares      Per Share
Amount
 

Basic EPS attributable to Comcast Corporation shareholders

  $ 2,137         2,500       $ 0.85       $ 1,992         2,594       $ 0.77   

Effect of dilutive securities:

                

Assumed exercise or issuance of shares relating to stock plans

             31                           34            

Diluted EPS attributable to Comcast Corporation shareholders

  $ 2,137         2,531       $ 0.84       $ 1,992         2,628       $ 0.76   

 

    Six Months Ended June 30  
    2015      2014  
(in millions, except per share data)   Net Income
Attributable to
Comcast
Corporation
     Shares      Per Share
Amount
     Net Income
Attributable to
Comcast
Corporation
     Shares      Per Share
Amount
 

Basic EPS attributable to Comcast Corporation shareholders

  $ 4,196         2,510       $ 1.67       $ 3,863         2,598       $ 1.49   

Effect of dilutive securities:

                

Assumed exercise or issuance of shares relating to stock plans

             34                           38            

Diluted EPS attributable to Comcast Corporation shareholders

  $ 4,196         2,544       $ 1.65       $ 3,863         2,636       $ 1.47   

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, 2015 and 2014.

Note 4: Significant Transactions

Time Warner Cable Merger and Related Divestiture Transactions

On April 24, 2015, we and Time Warner Cable Inc. terminated our planned merger, and we terminated our related agreement with Charter Communications, Inc. to spin-off, exchange and sell certain cable systems. In connection with these proposed transactions, we incurred incremental transaction-related expenses of $99 million and $198 million for the three and six months ended June 30, 2015, respectively, and $44 million and $61 million for the three and six months ended June 30, 2014, respectively. The transaction-related expenses are reflected primarily in other operating and administrative expenses, with $20 million recorded in depreciation and amortization expenses associated with the write-off of certain capitalized costs in the three and six months ended June 30, 2015.

 

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Comcast Corporation

 

Note 5: Film and Television Costs

 

(in millions)   June 30,
2015
     December 31,
2014
 

Film Costs:

    

Released, less amortization

  $ 1,499       $ 1,371   

Completed, not released

    138         71   

In production and in development

    856         1,189   
    2,493         2,631   

Television Costs:

    

Released, less amortization

    1,407         1,273   

In production and in development

    624         505   
    2,031         1,778   

Programming rights, less amortization

    2,074         2,157   
    6,598         6,566   

Less: Current portion of programming rights

    847         839   

Film and television costs

  $ 5,751       $ 5,727   

Note 6: Investments

 

(in millions)   June 30,
2015
     December 31,
2014
 

Fair Value Method

  $ 181       $ 662   

Equity Method:

    

The Weather Channel

    86         335   

Hulu

    267         167   

Other

    491         517   
    844         1,019   

Cost Method:

    

AirTouch

    1,575         1,568   

Other

    543         488   
      2,118         2,056   

Total investments

    3,143         3,737   

Less: Current investments

    144         602   

Noncurrent investments

  $ 2,999       $ 3,135   

Investment Income (Loss), Net

 

    Three Months Ended
June 30
    Six Months Ended
June 30
 
(in millions)       2015             2014             2015             2014      

Gains on sales and exchanges of investments, net

  $ 4      $ 90      $ 4      $ 173   

Investment impairment losses

    (16     (19     (31     (24

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

           85        42        (28

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

    1        (85     (37     32   

Interest and dividend income

    28        28        56        56   

Other, net

           21        16        24   

Investment income (loss), net

  $ 17      $ 120      $ 50      $ 233   

 

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Fair Value Method

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

Equity Method

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 representing NBCUniversal’s proportionate share of this impairment charge in equity in net income (losses) of investees, net in our condensed consolidated statement of income.

Cost Method

AirTouch

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

Note 7: Long-Term Debt

As of June 30, 2015, our debt had a carrying value of $48.5 billion and an estimated fair value of $53.2 billion. The estimated fair value of our publicly traded debt is primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices is based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.

Debt Borrowings, Redemptions and Repayments

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

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

Revolving Credit Facilities

As of June 30, 2015, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $6.7 billion, which included $645 million available under NBCUniversal Enterprise Inc.’s (“NBCUniversal Enterprise”) revolving credit facility.

Commercial Paper Programs

As of June 30, 2015, NBCUniversal Enterprise had $705 million face amount of commercial paper outstanding.

 

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Note 8: Fair Value Measurements

The accounting guidance related to financial assets and financial liabilities (“financial instruments”) establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). Level 1 consists of financial instruments whose values are based on quoted market prices for identical financial instruments in an active market. Level 2 consists of financial instruments that are valued using models or other valuation methodologies. These models use inputs that are observable either directly or indirectly. Level 3 consists of financial instruments whose values are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Our financial instruments that are accounted for at fair value on a recurring basis are presented in the table below.

Recurring Fair Value Measures

 

    Fair Value as of  
   

June 30,

2015

     December 31,
2014
 
(in millions)   Level 1      Level 2      Level 3      Total      Total  

Assets

             

Trading securities

  $ 37       $       $       $ 37       $ 523   

Available-for-sale securities

    2         122         10         134         132   

Interest rate swap agreements

            71                 71         84   

Other

            60         10         70         71   

Total

  $ 39       $ 253       $ 20       $ 312       $ 810   

Liabilities

             

Derivative component of prepaid forward sale agreements and indexed debt instruments

  $  —       $ 4       $       $ 4       $ 361   

Contractual obligations

                    980         980         883   

Contingent consideration

                                    644   

Other

            10                 10         8   

Total

  $       $ 14       $ 980       $ 994       $ 1,896   

Contractual Obligations and Contingent Consideration

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

The estimated fair values of the contractual obligations in the table below are primarily based on certain expected future discounted cash flows, the determination of which involves the use of significant unobservable inputs. The most significant unobservable inputs we use include our estimates of the future revenue we expect to generate from certain NBCUniversal businesses. The discount rates used in the measurements of fair value as of June 30, 2015 were between 12% and 13% and are based on the underlying risk associated with our estimate of future revenue and the terms of the respective contracts. The fair value adjustments to the contractual obligations are sensitive to the assumptions related to future revenue, as well as to current interest rates, and therefore the adjustments are recorded to other income (expense), net in our condensed consolidated statement of income.

 

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Changes in Contractual Obligations

 

(in millions)   Contractual
Obligations
 

Balance, December 31, 2014

  $ 883   

Fair value adjustments

    136   

Payments

    (39

Balance, June 30, 2015

  $ 980   

Fair Value of Redeemable Subsidiary Preferred Stock

As of June 30, 2015, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $748 million. The estimated fair value is based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Note 9: Share-Based Compensation

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

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

Recognized Share-Based Compensation Expense

 

    Three Months Ended
June 30
     Six Months Ended
June 30
 
(in millions)       2015              2014              2015              2014      

Stock options

  $ 43       $ 47       $ 78       $ 83   

Restricted share units

    80         68         138         116   

Employee stock purchase plans

    6         7         14         13   

Total

  $ 129       $ 122       $ 230       $ 212   

As of June 30, 2015, we had unrecognized pretax compensation expense of $424 million and $647 million related to nonvested stock options and nonvested RSUs, respectively.

Note 10: Supplemental Financial Information

Receivables

 

(in millions)   June 30,
2015
     December 31,
2014
 

Receivables, gross

  $ 7,529       $ 6,885   

Less: Allowance for returns and customer incentives

    288         359   

Less: Allowance for doubtful accounts

    225         205   

Receivables, net

  $ 7,016       $ 6,321   

 

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Accumulated Other Comprehensive Income (Loss)

 

(in millions)   June 30,
2015
    June 30,
2014
 

Unrealized gains (losses) on marketable securities

  $ 1      $ 4   

Deferred gains (losses) on cash flow hedges

    (11     (63

Unrecognized gains (losses) on employee benefit obligations

    (68     70   

Cumulative translation adjustments

    (88     (25

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

  $ (166   $ (14

Net Cash Provided by Operating Activities

 

    Six Months Ended
June 30
 
(in millions)       2015             2014      

Net income

  $ 4,316      $ 3,963   

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

   

Depreciation and amortization

    4,227        3,970   

Share-based compensation

    294        266   

Noncash interest expense (income), net

    95        87   

Equity in net (income) losses of investees, net

    203        (54

Cash received from investees

    52        50   

Net (gain) loss on investment activity and other

    (437     (113

Deferred income taxes

    111        (22

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

   

Current and noncurrent receivables, net

    (707     60   

Film and television costs, net

    176        (28

Accounts payable and accrued expenses related to trade creditors

    109        (168

Other operating assets and liabilities

    395        (464

Net cash provided by operating activities

  $ 8,834      $ 7,547   

Cash Payments for Interest and Income Taxes

 

    Three Months Ended
June 30
     Six Months Ended
June 30
 
(in millions)       2015              2014              2015              2014      

Interest

  $ 550       $ 541       $ 1,241       $ 1,164   

Income taxes

  $ 1,881       $ 1,718       $ 1,999       $ 1,904   

Noncash Investing and Financing Activities

During the six months ended June 30, 2015:

 

   

we acquired $964 million of property and equipment and intangible assets that were accrued but unpaid

 

 

   

we recorded a liability of $624 million for a quarterly cash dividend of $0.25 per common share paid in July 2015

 

 

   

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

 

 

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Note 11: Commitments and Contingencies

Contingencies

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

We are also subject to other legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.

Note 12: Financial Data by Business Segment

We present our operations in five reportable business segments:

 

   

Cable Communications: Consists of the operations of Comcast Cable, which is a leading provider of video, high-speed Internet and voice services (“cable services”) to residential customers under the XFINITY brand; we also provide similar and other services to small and medium-sized businesses and sell advertising.

 

 

   

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

 

 

   

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

 

 

   

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

 

 

   

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

 

In evaluating the profitability of our operating segments, the components of net income (loss) below operating income (loss) before depreciation and amortization are not separately evaluated by our management. Our financial data by business segment is presented in the tables below.

 

    Three Months Ended June 30, 2015  
(in millions)   Revenue(d)     Operating Income (Loss)
Before Depreciation and
Amortization(e)
    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 11,729      $ 4,798      $ 1,726       $ 3,072      $ 1,676   

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

    773        354        76         278        166   

Headquarters and Other(b)

    3        (169     82         (251     83   

Eliminations(c)

    (75     2                2          

NBCUniversal

    7,230        1,712        405         1,307        272   

Corporate and Other

    176        (252     30         (282     23   

Eliminations(c)

    (392     8                8          

Comcast Consolidated

  $ 18,743      $ 6,266      $ 2,161       $ 4,105      $ 1,971   

 

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    Three Months Ended June 30, 2014  
(in millions)   Revenue(d)     Operating Income (Loss)
Before Depreciation and
Amortization(e)
    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 11,029      $ 4,564      $ 1,604       $ 2,960      $ 1,493   

NBCUniversal

          

Cable Networks

    2,476        914        180         734        8   

Broadcast Television

    1,816        240        27         213        26   

Filmed Entertainment

    1,176        195        5         190        3   

Theme Parks

    615        244        73         171        158   

Headquarters and Other(b)

    4        (159     85         (244     103   

Eliminations(c)

    (71                             

NBCUniversal

    6,016        1,434        370         1,064        298   

Corporate and Other

    172        (182     26         (208     7   

Eliminations(c)

    (373     (12             (12       

Comcast Consolidated

  $ 16,844      $ 5,804      $ 2,000       $ 3,804      $ 1,798   

 

    Six Months Ended June 30, 2015  
(in millions)   Revenue(d)     Operating Income (Loss)
Before Depreciation and
Amortization(e)
    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 23,159      $ 9,472      $ 3,401       $ 6,071      $ 3,121   

NBCUniversal

          

Cable Networks

    4,809        1,770        395         1,375        11   

Broadcast Television

    4,061        413        59         354        25   

Filmed Entertainment

    3,712        715        11         704        5   

Theme Parks

    1,424        617        142         475        328   

Headquarters and Other(b)

    7        (309     162         (471     171   

Eliminations(c)

    (179                             

NBCUniversal

    13,834        3,206        769         2,437        540   

Corporate and Other

    380        (477     57         (534     36   

Eliminations(c)

    (777     21                21          

Comcast Consolidated

  $ 36,596      $ 12,222      $ 4,227       $ 7,995      $ 3,697   

 

    Six Months Ended June 30, 2014  
(in millions)   Revenue(d)     Operating Income (Loss)
Before Depreciation and
Amortization(e)
    Depreciation
and
Amortization
     Operating
Income
(Loss)
    Capital
Expenditures
 

Cable Communications(a)

  $ 21,786      $ 8,964      $ 3,188       $ 5,776      $ 2,638   

NBCUniversal

          

Cable Networks

    4,981        1,809        369         1,440        19   

Broadcast Television

    4,437        362        54         308        37   

Filmed Entertainment

    2,527        483        10         473        4   

Theme Parks

    1,102        414        142         272        302   

Headquarters and Other(b)

    6        (322     160         (482     227   

Eliminations(c)

    (161     (1             (1       

NBCUniversal

    12,892        2,745        735         2,010        589   

Corporate and Other

    346        (335     47         (382     19   

Eliminations(c)

    (772     (32             (32       

Comcast Consolidated

  $ 34,252      $ 11,342      $ 3,970       $ 7,372      $ 3,246   

 

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(a)

For the three and six months ended June 30, 2015 and 2014, Cable Communications segment revenue was derived from the following sources:

 

    Three Months Ended
June 30
    Six Months Ended
June 30
 
         2015             2014             2015             2014      

Residential:

       

Video

    46.3     47.5     46.5     47.8

High-speed Internet

    26.4     25.6     26.5     25.6

Voice

    7.7     8.4     7.8     8.5

Business services

    9.9     8.7     9.8     8.6

Advertising

    5.0     5.3     4.7     5.0

Other

    4.7     4.5     4.7     4.5

Total

    100     100     100     100.0

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, 2015 and 2014, 2.8% of Cable Communications segment revenue was derived from franchise and other regulatory fees.

 

(b)

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

 

(c)

Included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the following:

 

   

our Cable Networks and Broadcast Television segments generate revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount

 

 

   

our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment

 

 

   

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

 

 

   

our Cable Communications segment receives incentives offered by our Cable Networks segment in connection with its distribution of the Cable Networks’ content that are recorded as a reduction to programming expenses

 

 

(d)

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

 

(e)

We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of assets, if any, as the measure of profit or loss for our operating segments. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income (loss) attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP.

 

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Note 13: Condensed Consolidating Financial Information

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

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

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

 

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Condensed Consolidating Balance Sheet

June 30, 2015

 

(in millions)  

Comcast

Parent

   

Comcast

Holdings

   

CCCL

Parent

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
   

Non-

Guarantor

Subsidiaries

   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Assets

               

Cash and cash equivalents

  $  —      $  —      $  —      $  —      $ 299      $ 3,187      $  —      $ 3,486   

Investments

                                       144               144   

Receivables, net

                                       7,016               7,016   

Programming rights

                                       847               847   

Other current assets

    363                             41        1,422               1,826   

Total current assets

    363                             340        12,616               13,319   

Film and television costs

                                       5,751               5,751   

Investments

    29                             110        2,860               2,999   

Investments in and amounts due from subsidiaries eliminated upon consolidation

    85,330        107,732        114,403        62,010        41,566        103,682        (514,723       

Property and equipment, net

    203                                    31,369               31,572   

Franchise rights

                                       59,364               59,364   

Goodwill

                                       27,422               27,422   

Other intangible assets, net

    10                                    16,792               16,802   

Other noncurrent assets, net

    1,223        148                      91        2,048        (1,065     2,445   

Total assets

  $ 87,158      $ 107,880      $ 114,403      $ 62,010      $ 42,107      $ 261,904      $ (515,788   $ 159,674   

Liabilities and Equity

               

Accounts payable and accrued expenses related to trade creditors

  $ 18      $      $      $      $      $ 5,862      $      $ 5,880   

Accrued participations and residuals

                                       1,583               1,583   

Accrued expenses and other current liabilities

    1,838        283        219        49        341        3,485               6,215   

Current portion of long-term debt

    750                      674        1,004        1,459               3,887   

Total current liabilities

    2,606        283        219        723        1,345        12,389               17,565   

Long-term debt, less current portion

    29,857        128        1,828        822        8,214        3,787               44,636   

Deferred income taxes

           662                      59        33,398        (921     33,198   

Other noncurrent liabilities

    2,295                             1,122        7,165        (144     10,438   

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

                                       1,108               1,108   

Equity:

               

Common stock

    29                                                  29   

Other shareholders’ equity

    52,371        106,807        112,356        60,465        31,367        203,728        (514,723     52,371   

Total Comcast Corporation shareholders’ equity

    52,400        106,807        112,356        60,465        31,367        203,728        (514,723     52,400   

Noncontrolling interests

                                       329               329   

Total equity

    52,400        106,807        112,356        60,465        31,367        204,057        (514,723     52,729   

Total liabilities and equity

  $ 87,158      $ 107,880      $ 114,403      $ 62,010      $ 42,107      $ 261,904      $ (515,788   $ 159,674   

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Balance Sheet

December 31, 2014

 

(in millions)  

Comcast

Parent

   

Comcast

Holdings

   

CCCL

Parent

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
   

Non-

Guarantor

Subsidiaries

   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Assets

               

Cash and cash equivalents

  $  —      $  —      $  —      $  —      $ 385      $ 3,525      $  —      $ 3,910   

Investments

                                       602               602   

Receivables, net

                                       6,321               6,321   

Programming rights

                                       839               839   

Other current assets

    267                             41        1,551               1,859   

Total current assets

    267                             426        12,838               13,531   

Film and television costs

                                       5,727               5,727   

Investments

    36                             378        2,721               3,135   

Investments in and amounts due from subsidiaries eliminated upon consolidation

    84,142        103,420        110,323        58,677        41,239        98,152        (495,953       

Property and equipment, net

    199                                    30,754               30,953   

Franchise rights

                                       59,364               59,364   

Goodwill

                                       27,316               27,316   

Other intangible assets, net

    11                                    16,969               16,980   

Other noncurrent assets, net

    1,224        148                      92        1,949        (1,080     2,333   

Total assets

  $ 85,879      $ 103,568      $ 110,323      $ 58,677      $ 42,135      $ 255,790      $ (497,033   $ 159,339   

Liabilities and Equity

               

Accounts payable and accrued expenses related to trade creditors

  $ 19      $      $      $ 1      $      $ 5,618      $      $ 5,638   

Accrued participations and residuals

                                       1,347               1,347   

Accrued expenses and other current liabilities

    1,547        283        233        47        331        3,767               6,208   

Current portion of long-term debt

    1,650                      677        1,006        884               4,217   

Total current liabilities

    3,216        283        233        725        1,337        11,616               17,410   

Long-term debt, less current portion

    27,616        126        1,827        822        9,218        4,408               44,017   

Deferred income taxes

           701                      67        33,127        (936     32,959   

Other noncurrent liabilities

    2,336                             1,143        7,484        (144     10,819   

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

                                       1,066               1,066   

Equity:

               

Common stock

    30                                                  30   

Other shareholders’ equity

    52,681        102,458        108,263        57,130        30,370        197,732        (495,953     52,681   

Total Comcast Corporation shareholders’ equity

    52,711        102,458        108,263        57,130        30,370        197,732        (495,953     52,711   

Noncontrolling interests

                                       357               357   

Total equity

    52,711        102,458        108,263        57,130        30,370        198,089        (495,953     53,068   

Total liabilities and equity

  $ 85,879      $ 103,568      $ 110,323      $ 58,677      $ 42,135      $ 255,790      $ (497,033   $ 159,339   

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended June 30, 2015

 

(in millions)  

Comcast

Parent

   

Comcast

Holdings

   

CCCL

Parent

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
   

Non-

Guarantor

Subsidiaries

   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Revenue

               

Service revenue

  $  —      $  —      $  —      $  —      $  —      $ 18,743      $  —      $ 18,743   

Management fee revenue

    252               246        156                      (654       
      252               246        156               18,743        (654     18,743   

Costs and Expenses:

               

Programming and production

                                       5,669               5,669   

Other operating and administrative

    225               246        156        255        5,052        (654     5,280   

Advertising, marketing and promotion

                                       1,528               1,528   

Depreciation

    7                                    1,667               1,674   

Amortization

    2                                    485               487   
      234               246        156        255        14,401        (654     14,638   

Operating income (loss)

    18                             (255     4,342               4,105   

Other Income (Expense):

               

Interest expense

    (472     (3     (43     (30     (116     (49            (713

Investment income (loss), net

           (1                   (8     26               17   

Equity in net income (losses) of investees, net

    2,431        2,162        2,001        1,713        1,281        676        (10,500     (236

Other income (expense), net

    2                             16        297               315   
      1,961        2,158        1,958        1,683        1,173        950        (10,500     (617

Income (loss) before income taxes

    1,979        2,158        1,958        1,683        918        5,292        (10,500     3,488   

Income tax (expense) benefit

    158        2        15        11        (6     (1,493            (1,313

Net income (loss)

    2,137        2,160        1,973        1,694        912        3,799        (10,500     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      $ 1,694      $ 912      $ 3,761      $ (10,500   $ 2,137   

Comprehensive income (loss) attributable to Comcast Corporation

  $ 2,159      $ 2,168      $ 1,973      $ 1,694      $ 936      $ 3,761      $ (10,532   $ 2,159   

 

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Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended June 30, 2014

 

(in millions)  

Comcast

Parent

   

Comcast

Holdings

   

CCCL

Parent

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
   

Non-

Guarantor

Subsidiaries

   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Revenue

               

Service revenue

  $  —      $  —      $  —      $  —      $  —      $ 16,844      $  —      $ 16,844   

Management fee revenue

    237               231        145                      (613       
      237               231        145               16,844        (613     16,844   

Costs and Expenses:

               

Programming and production

                                       4,874               4,874   

Other operating and administrative

    181               231        145        237        4,741        (613     4,922   

Advertising, marketing and promotion

                                       1,244               1,244   

Depreciation

    8                                    1,591               1,599   

Amortization

    2                                    399               401   
      191               231        145        237        12,849        (613     13,040   

Operating income (loss)

    46                             (237     3,995               3,804   

Other Income (Expense):

               

Interest expense

    (400     (3     (44     (30     (125     (46            (648

Investment income (loss), net

    1                             4        115               120   

Equity in net income (losses) of investees, net

    2,222        1,908        1,774        1,554        1,171        836        (9,443     22   

Other income (expense), net

                                7        (46            (39
      1,823        1,905        1,730        1,524        1,057        859        (9,443     (545

Income (loss) before income taxes

    1,869        1,905        1,730        1,524        820        4,854        (9,443     3,259   

Income tax (expense) benefit

    123        1        15        11        (6     (1,378            (1,234

Net income (loss)

    1,992        1,906        1,745        1,535        814        3,476        (9,443     2,025   

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

                                       (33            (33

Net income (loss) attributable to Comcast Corporation

  $ 1,992      $ 1,906      $ 1,745      $ 1,535      $ 814      $ 3,443      $ (9,443   $ 1,992   

Comprehensive income (loss) attributable to Comcast Corporation

  $ 1,945      $ 1,912      $ 1,744      $ 1,535      $ 832      $ 3,401      $ (9,424   $ 1,945   

 

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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

   

Combined

CCHMO

Parents

    NBCUniversal
Media Parent
   

Non-

Guarantor

Subsidiaries

   

Elimination

and

Consolidation

Adjustments

   

Consolidated

Comcast

Corporation

 

Revenue:

               

Service revenue

  $  —      $  —      $  —      $  —      $  —      $ 36,596      $  —      $ 36,596   

Management fee revenue

    496               483        306                      (1,285       
      496               483        306               36,596        (1,285     36,596   

Costs and Expenses:

               

Programming and production

                                       11,132               11,132   

Other operating and administrative

    451               483        306        492        9,912        (1,285     10,359   

Advertising, marketing and promotion

                                       2,883               2,883   

Depreciation

    15                                    3,293               3,308   

Amortization

    3                                    916               919   
      469               483        306        492        28,136        (1,285     28,601   

Operating income (loss)

    27